**REGISTERED CHARITY NUMBER: 1184325** ## **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** |||**Page**|| |---|---|---|---| |**Report of the Trustees**|1|to|5| |**Report of the Independent Auditors**|6|to|7| |**Statement of Financial Activities**||8|| |**Statement of Financial Position**||9|| |**Statement of Cash Flows**||10|| |**Notes to the Statement of Cash Flows**||11|| |**Notes to the Financial Statements**|12|to|16| **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** The trustees present their report with the financial statements of the charity for the period 8 July 2019 to 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). The financial statements are for the period from 08 July 2019 to 31 December 2020. As a result, the information contained within the financial statements relate to a period longer than 12 months. A longer period of the financial statements has been used as a result of the change in the charitable status of the organisation from an unincorporated charity to a Charitable Incorporated Organistion (CIO) on 08 July 2019. In order to ensure that consistency of year-end dates were applied the Trustees adapted 31 December as the year-end date for the CIO. ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The objectives of the Iglesia Ni Cristo (Church Of Christ) embody its purposes as a Charitable Incorporated Organisation (CIO). The missions include: the advancement of religion, as well as the dissemination and propagation of the Christian faith and teachings as written in the Bible, the Holy Scriptures; establishment of local congregations, group worship services, and extensions within the United Kingdom that the dissemination and propagation of this religious faith may reach, subject to existing laws of England and Wales. Associated with these objectives, the CIO aims to establish places for official use of its members in different congregations such as for regular worship services, in-house training seminars, counselling, and other charitable services for both members and non-members. As proof of this, during 2019, two new extensions to congregations were established in the following locations and dates of establishment: |Taunton|8 July 2019| |---|---| |Heathrow East|16 August 2019| The CIO is determined to continue establishing additional places and local congregations for official use of its members in the United Kingdom. The CIO also holds various activities in the United Kingdom in order to enhance and strengthen the spiritual life of the Church members in general. These activities include: holding religious worship through worship services; prayer meetings, pastoral visitation of brethren; and propagation of the gospel through bible studies, evangelical missions and distribution of religious publications. Additionally, the CIO recognises social and humanitarian concerns and demonstrates this through continuing activities in local communities within the United Kingdom and worldwide. The CIO is determined to engage more in charitable works, while expanding its mission to grow in number for the organisation. The CIO has developed and adopted policies in the advancement of these objectives and has made no changes to these policies during the period. In the furtherance of the actions that have been carried out by the original Charity in converting to a Charitable Incorporated Organisation (CIO) and registering its operations and activities in England and Wales, the CIO Trustees have plans to continue work on completing the process in Scotland and Northern Ireland. Grants are made customarily to other Iglesia Ni Cristo (Church Of Christ) congregations worldwide after the Trustees' have assessed that the project benefitting from the grants complies with the objectives of the CIO in accordance with its Constitution. Page 1 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **ACHIEVEMENT AND PERFORMANCE Achievements and Performance** The Charity has successfully and significantly met its goals and objectives in expansion through propagation, acquisition of properties, and strengthening of morals and spiritual values of its members. Despite the COVID-19 pandemic, the Iglesia Ni Cristo (Church Of Christ) members continued to conduct twice-weekly worship services online through video conferencing, and had the option to give their voluntary offerings through online banking during the lockdown. Therefore, the CIO also changed the manner in which the financial reports are prepared. The CIO will continue to renovate the property in Glasgow, Scotland, that was acquired on 25 April 2019, to be used by the respective congregation as a place of worship in the near future. In addition to this, the CIO has also helped a local congregations in mainland Europe with the renovation of the property of the Iglesia Ni Cristo (Church Of Christ) in Dordrecht, The Netherlands. The Iglesia Ni Cristo (Church Of Christ), with all modesty, contributes greatly to the moral and spiritual enrichment of its members to benefit their families and the local communities in which the members reside. This is due to the principles upheld in the Church, which promote a quality of life guiding people to be honest, law-abiding and God-fearing. The leadership members in the Church continue to guide members of the Church to be considerate to the welfare of others in the spirit of love and compassion. This has been the hallmark of the Iglesia Ni Cristo (Church Of Christ) for more than a century of its existence in the Philippines, and almost half a century in the United Kingdom. One of the ways that the Church continues to contribute to the community is through various charitable activities called "INC Giving" activities. These types of activities are open to everyone in the local communities, whether or not they are members of the Iglesia Ni Cristo (Church Of Christ). The Iglesia Ni Cristo (Church of Christ) engaged in more charitable activities, such as community service through clean-up drives to promote the importance of the environment and giving donations of food and clothes to local charities. This year's events include the following: |clean-up drives to promote the importance of the environment and giving donations of
This year's events include the following:|food and clothes to local charities| |---|---| |**Event**|**Date**| |INC Giving Clean Up Drive (Bournemouth)|14 July 2019| |INC Giving Clean Up Drive (Glasgow)|25 August 2019| |INC Giving Food Donation (Battersea)|29 September 2019| |INC Giving Winter Coat Donation (Flintshire)|11 October 2019| |INC Giving Blood Donation (Manchester)|3 November 2019| |INC Giving Singing For A Cause (Heathrow North)|24 November 2019| |INC Giving Toys and Book Donation (Stratford)|29 December 2019| |INC Giving Clean Up Drive (Leeds)|04 January 2020| |INC Giving Winter Clothes and Shoes Donation (Portsmouth)|15 February 2020| |INC Giving Frontliners Appreciation Day (Heathrow)|23 May 2020| |INC Giving Clean Up Drive (Bournemouth)|28 June 2020| |INC Giving Firemens Appreciation Day (Glasgow and Edinburgh)|5 July 2020| |INC Giving Medical Profession Appreciation Day (Birmingham)|5 September 2020| |INC Giving Food Donation (Romford)|20 October 2020| |INC Giving Parent Appreciation Day (Camberwell)|20 December 2020| The Charity also continued to hold a series of activities in order to edify members and to share the Christian faith and teachings upheld in the Iglesia Ni Cristo (Church of Christ). This year's activities included: |**Event**|**Date**| |---|---| |Musical Production (INCenter Stage)|3 August 2019| |Unity Games (Sports Competition)|26 August 2016| |Children's Cooking Challenge|20 October 2019| |Musical Competition|29 December 2019| |Children's Worship Service (CWS) Art Competition|26 January 2020| |GCSE Help - Tutoring and Mentoring|16 February 2020| |Christian Family Organization (CFO) Arts Competition|17 May 2020| |Meet and Greet Online|13 June 2020| |Photo Editing Online Seminar|3 August 2020| |Video Editing Online Seminar|17 August 2020| |Children's Worship Service (CWS) Spelling Bee|27 September 2020| |Mr & Mrs Chef (Cooking Competition)|8 November 2020| |INCinema Film Showing - Online|24 December 2020| Page 2 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** The CIO holds the above-mentioned activities to promote the enhancement of social and cultural values, by guiding its members to wholesome and enriching activities in sports, music and the arts. As well as the activities listed above, the Church also promoted leadership and skills enhancement activities through planning conferences and seminars, which were held in various locations in the United Kingdom, such as Battersea and Newport, Wales when the possibility existed and through different seminars, which were held online through video conferencing, at other times. These activities are held by the Iglesia Ni Cristo (Church of Christ) to strengthen the faith of the members of the Church and to strengthen the bond between them in a fun and friendly environment. Non-Church members are also invited to these events, so that they can have more exposure to the Christian faith and teachings upheld in the Iglesia Ni Cristo (Church Of Christ) through the love of the brotherhood. The CIO also carries out outreach programs to assist people, regardless of their religious beliefs, who are suffering as a result of poverty, natural disasters and catastrophes. The Iglesia Ni Cristo (Church Of Christ) embraces the teaching of the Bible to love our neighbours, countrymen and brethren. Therefore, the Charity has also been helping the Iglesia Ni Cristo (Church Of Christ) Central Administration's program on International Aid to Humanity, which benefits many impoverished people in various parts of the world. ## **FINANCIAL REVIEW** ## **Financial position** The Statement of Financial Activities show net income for the period of £1,517,852. The total reserves at the period end amounts to £20,477,084 ## **Financial Review** After reviewing the CIO's financial position at the end of the reporting period, the Trustees are satisfied with the financial position at the Balance Sheet date. The policy of the CIO remains that unrestricted funds not designated for a specific use should be maintained at a level equivalent to between three and six months expenditure. The Trustees foresee that this level of reserved amounts will ensure that the CIO will be able to continue the current activities should there be a significant drop in funding. During this allotted time, the Trustees will then promote ways in which additional funds may be raised. The CIO has successfully maintained this goal of reserves throughout the year. There are no uncertainties about the CIO's ability to continue. The Trustees also maintain that there are no funds that are materially in deficit. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Structure, Governance and Management** The CIO was established as a Charitable Incorporated Organisation (CIO) on 8 July 2019, emanating from the transfer of its activities, assets and liabilities from Iglesia Ni Cristo (Church of Christ), an unincorporated Charity, previously operating under Charity Number 265828. The Chairman of the Board of Trustees appoints the Trustees when a vacancy arises. The newly appointed Trustees' induction includes the following: meeting the office staff; being briefed on procedures; updates being issued by concerned government agencies affecting their roles; and addressing any training needs they may have. The Trustees manage the CIO together and ensure that the expenditure of all funds received are in accordance with the trust deed. This CIO is part of a wider network, also called Iglesia Ni Cristo (Church Of Christ), an international Christian denomination religion originating in the Philippines and is currently located around the world. The Trustees are responsible for the management of risks that the CIO would face. The Trustees have undertaken a full risk assessment of the organisation and have introduced various key controls. The Trustees also review these controls regularly. The Trustees have assessed the major risks to which the CIO is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. One of the key risks of the CIO is the risk of an event having a negative impact on its reputation. The Trustees are satisfied that a policy and a satisfactory action plan is in place to ensure that this risk is adequately mitigated. ## **Risk management** The CIO acknowledge that the Trustees have a duty to identify and review the risks to which it is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud, error and other irregularities. Page 3 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1184325 ## **Principal address** 79 Staines Road West Sunbury on Thames Surrey TW16 7AH ## **Trustees** |**Trustees**||| |---|---|---| |Name|Position|Date Appointed| |Mr Eduardo V Manalo|Executive Minister|21 February 2018| |Mr Angelo Erano Ventura Manalo|CFO Coordinator|01 September 2021| |Mr Glicerio P Santos IV|General Auditor|13 May 2021| |Mr Ernesto V Suratos|General Treasurer|21 February 2018| |Mr Bienvenido C Santiago Sr|General Evangelist|21 February 2018| |Mrs Dorothy Kristine M Orosa|Corporate Secretary|21 February 2018| |Mr Voltaire Arsenio Arceta Tamisin|Trustee|01 September 2021| |Mr Glenn Romero Gomez|Trustee|07 February 2018| |Mr Philip Norman Velasquez|Trustee|07 February 2018| |Mr Allistair Cagnayo|Trustee|07 February 2018| |Mr Vernon Jesus Cunanan|Trustee|07 February 2018| |Mr Gerry Sison|Trustee|07 February 2018| Long standing General Auditor and Trustee, Mr Glicerio B Santos Jr passed away on 03 April 2021. Iglesia Ni Cristo (Church Of Christ) acknowledges the unique role that he has played in the CIO and worldwide organisation and his dedication to the furtherance of the objectives of the Charity. ## **Auditors** Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX ## **Bankers** National Westminster Bank 67 High Street Twickenham Staines-upon-Thames Staines TW18 4PU Barclays Bank 7-11 St John's Hill London SW11 1TR ## **EVENTS SINCE THE END OF THE PERIOD** Information relating to events since the end of the period is given in the notes to the financial statements. ## **TRUSTEES' RESPONSIBILITY STATEMENT** The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Page 4 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **TRUSTEES' RESPONSIBILITY STATEMENT - continued** The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the board of trustees on 29 October 2021 and signed on its behalf by: Mr Gerry Sison - Trustee Page 5 **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **Opinion** We have audited the financial statements of Iglesia Ni Cristo (Church of Christ) (the 'charity') for the period ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). - In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 6 **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **Our responsibilities for the audit of the financial statements** We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX 29 October 2021 Kiran Patel BA FCA - Senior Statutory Auditor Page 7 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Management and Administration
Investment income
3
Other income
**Total**
**EXPENDITURE ON**
Raising funds
5
**Charitable activities**
6
Property Rentals and Hire
Management and Administration
Building Services and Utilities
Donations to related charities
Depreciation
Other
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
**7,356,880**
**74,414**
**1,048**
**1,869,552**
**9,301,894**
**23,560**
**329,198**
**2,711,694**
**231,866**
**4,377,883**
**113,095**
**334,515**
**8,121,811**
**1,180,083**
**1,916,413**
**3,096,496**|Restricted
funds
£
**2,573,789**
**-**
**533**
**611,548**
**3,185,870**
**-**
**308,969**
**249,815**
**142,732**
**-**
**-**
**2,146,585**
**2,848,101**
**337,769**
**17,042,819**
**17,380,588**|Total
funds
£
**9,930,669**
**74,414**
**1,581**
**2,481,100**| |---|---|---|---| ||||**12,487,764**
**23,560**
**638,167**
**2,961,509**
**374,598**
**4,377,883**
**113,095**
**2,481,100**| ||||**10,969,912**| ||||**1,517,852**
**18,959,232**| ||||**20,477,084**| The notes form part of these financial statements Page 8 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2020** |Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Debtors
12
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
13
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
14
Unrestricted funds:
Central Fund
Restricted funds:
Local fund
District Fund
Properties
**TOTAL FUNDS**|Unrestricted
fund
£
**1,395,460**
**40,981**
**1,694,256**
**1,735,237**
**(34,200)**
**1,701,037**
**3,096,497**
**3,096,497**|Restricted
funds
£
**17,222,289**
**-**
**158,298**
**158,298**
**-**
**158,298**
**17,380,587**
**17,380,587**|Total
funds
£
**18,617,749**
**40,981**
**1,852,554**
**1,893,535**
**(34,200)**
**1,859,335**
**20,477,084**
**20,477,084**
**3,096,497**
**105,686**
**78,280**
**17,196,621**
**17,380,587**
**20,477,084**| |---|---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 29 October 2021 and were signed on its behalf by: Mr Gerry Sison - Trustee Mr Vernon Cunanan - Trustee The notes form part of these financial statements Page 9 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **STATEMENT OF CASH FLOWS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
**Cash flows from financing activities**
Cash at bank and in hand transferred
Debtors transferred
Creditors transferred
Net cash provided by financing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|**£**
**1,894,136**
**1,894,136**
**(991,416)**
**1,581**
**(989,835)**
**971,333**
**47,422**
**(70,502)**
**948,253**
**1,852,554**
**-**
**1,852,554**| |---|---| The notes form part of these financial statements Page 10 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** |**1.**
**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Increase in debtors
Increase in creditors
**Net cash provided by operations**|**£**
**1,517,852**
**384,646**
**(1,581)**
**(40,981)**
**34,200**| |---|---| ||**1,894,136**| |2.
**ANALYSIS OF CHANGES IN NET FUNDS**
**Net cash**
Cash at bank and in hand
**Total**|At 8/7/19
£
**-**
**-**
**-**|Cash flow
£
**1,852,554**
**1,852,554**
**1,852,554**|**At 31/12/20**
**£**
**1,852,554**
**1,852,554**
**1,852,554**| |---|---|---|---| The notes form part of these financial statements Page 11 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |Freehold property|- no depreciation provided| |---|---| |Fixtures and fittings|- Straight line over 10 years| |Motor vehicles|- Straight line over 5 years| Depreciation is not provided in respect of freehold properties as the Trustees believe that the present market value is not less than the cost stated in the accounts. The Charity also follows a regular programme of maintaining the properties in a good state by way of incurring expenditure on repairs and maintenance. ## **Taxation** The charity is exempt from tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Hire purchase and leasing commitments** Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. ## **Pension costs and other post-retirement benefits** The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Restricted funds** Building renovation and purchases These restricted funds are received from other related charities. The funds are restricted to the purchase and renovation of properties, mainly to be used for worship services, training and seminars, counselling and other charitable services for both members and non-members. Page 12 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES - continued** ## **Restricted funds** ## Local funds These restricted funds are received in the form of cash and direct banking donations from the local congregations. The funds are created for local expenditure only. A Local is defined as an individual congregation. ## District funds These restricted funds are received in the form of cash and direct banking donations from the local congregations. The funds are created for district and local expenditure only. The district is defined as the United Kingdom. ## **2. DONATIONS AND LEGACIES** ## **3.** ## **4.** |**DONATIONS AND LEGACIES**|||| |---|---|---|---| |Donations
**INVESTMENT INCOME**
Deposit account interest
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Job Retention Government
Grant Scheme
Management and Administration
Grants received, included in the above, are as follows:
Job Retention Government Grant|**£**
**9,930,669**||| |||**£**
**1,581**
**£**
**74,414**|**£**
**1,581**| |||**£**
**74,414**|| ## **5. RAISING FUNDS** |**Investment management costs**|| |---|---| ||**£**| |Support costs|**23,560**| ## **6. CHARITABLE ACTIVITIES COSTS** |Property Rentals and Hire
Management and Administration
Building Services and Utilities
Donations to related charities
Depreciation|Direct
Costs
£
**638,167**
**2,436,921**
**374,598**
**573,666**
**-**
**4,023,352**|Grant
funding of
activities
(see note
7)
£
**-**
**-**
**-**
**3,804,217**
**-**
**3,804,217**|Support
costs (see
note 8)
£
**-**
**524,588**
**-**
**-**
**113,095**
**637,683**|Totals
£
**638,167**
**2,961,509**
**374,598**
**4,377,883**
**113,095**| |---|---|---|---|---| |||||**8,465,252**| Page 13 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **7. GRANTS PAYABLE** |**GRANTS PAYABLE**|| |---|---| |Donations to related charities
The total grants paid to institutions during the period was as follows:
Donations to related charities|**£**
**3,804,217**| ||**£**
**3,804,217**| Grants amounting to £3,804,217 were paid to other Iglesia Ni Cristo (Church of Christ) churches during the period ended 31 December 2020 ## **8. SUPPORT COSTS** |**SUPPORT COSTS**||| |---|---|---| |Management
£
Investment management costs
**-**
Management and Administration
**271,551**
Depreciation
**113,095**
**384,646**|Governance
Finance
costs
£
£
**-**
**23,560**
**49,267**
**203,770**
**-**
**-**
**49,267**
**227,330**|Totals
£
**23,560**
**524,588**
**113,095**| |||**661,243**| ## **9. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the period ended 31 December 2020. ## **Trustees' expenses** There were no trustees' expenses paid for the period ended 31 December 2020. ## **10. STAFF COSTS** |**STAFF COSTS**|| |---|---| |Wages and salaries
Social security costs
Other pension costs|**£**
**1,350,086**
**113,943**
**25,929**| ||**1,489,958**| The average monthly number of employees during the period was as follows: |Ministers
Administrative|**34**
**22**| |---|---| ||**56**| No employees received emoluments in excess of £60,000. Page 14 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **11. TANGIBLE FIXED ASSETS** |**11.**
**TANGIBLE FIXED ASSETS**||||| |---|---|---|---|---| |Freehold
property
£
**COST**
At 8 July 2019
1**7,196,621**
Additions
**-**
At 31 December 2020
1**7,196,621**
**DEPRECIATION**
At 8 July 2019
**-**
Charge for year
**-**
At 31 December 2020
**-**
**NET BOOK VALUE**
At 31 December 2020
1**7,196,621**
**12.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
Prepayments and accrued income
**13.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors
**14.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
Central Fund
**Restricted funds**
Local fund
District Fund
Properties
**TOTAL FUNDS**|Fixtures
and
fittings
£
**1,620,320**
**981,682**
**2,602,002**
**861,272**
**356,400**
**1,217,672**
**1,384,330**

At 8/7/19
£
**1,916,413**
**88,518**
**139,160**
**16,815,141**
**17,042,819**
**18,959,232**|Motor
vehicles
£
**281,388**
**9,734**
**291,122**
**226,079**
**28,245**
**254,324**
**36,798**
Net
movement
in funds
£
**1,180,084**
**17,168**
**(60,880)**
**381,480**
**337,768**
**1,517,852**|Totals
£
**19,098,329**
**991,416**|| ||||**20,089,745**|| ||||**1,087,351**
**384,645**|| ||||**1,471,996**|| ||||**18,617,749**|| ||||**£**
**25,513**
**15,468**
**40,981**
**£**
**34,200**
At
31/12/20
£
**3,096,497**
**105,686**
**78,280**
**17,196,621**|**£**
**25,513**
**15,468**| |||||**40,981**| |||||**£**
**34,200**| ||||**17,380,587**|| ||||**20,477,084**|| Page 15 **IGLESIA NI CRISTO (CHURCH OF CHRIST)** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020** ## **14. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: |**Unrestricted funds**
Central Fund
**Restricted funds**
Local fund
District Fund
Properties
**TOTAL FUNDS**|Incoming
resources
£
**9,301,894**
**1,981,333**
**823,057**
**381,480**
**3,185,870**
**12,487,764**|Resources
expended
£
**(8,121,810)**
**(1,964,165)**
**(883,937)**
**-**
**(2,848,102)**
**(10,969,912)**|Movement
in funds
£
**1,180,084**
**17,168**
**(60,880)**
**381,480**
**337,768**
**1,517,852**| |---|---|---|---| ## **15. RELATED PARTY DISCLOSURES** During the period, grants amounting to £3,804,217 were made to other Iglesia Ni Cristo churches. ## **16. POST BALANCE SHEET EVENTS** No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the CIO, the results of those operations, or the state of affairs of the CIO in future financial years. The Trustees have managed to ensure that the CIO adapted its activities sufficiently in the period to survive the recent pandemic and its effect in the wider community. Specific actions taken and events organised by the Trustees and Senior Management: **-** The reintroduction of face-to-face meetings and congregations; **-** The reintroduction of face-to-face classes, combined with online classes for individuals not able to attend in person; **-** Improve the facility for the continued use of technology for educational classes and congregations. This has resulted in at least 10 percent of all classes and congregations continuing on a remote access basis. **-** The organisation of major events such as Thanksgiving, both online and on a face to face basis. **-** Servicing the wider community through the extension of the Aid to Humanity Programs being organised by individual Congregations resulting in local distribution of food and other essential provisions; **-** Starting the major works for the renovation of the Chapel in Scotland. **-** The organisation of a worldwide Aid to Humanity Project to be held on 31 October 2021. Given the strong position of liquidity at the period end date, the Trustees are confident that the CIO has sufficient resources and support to enable it to continue to fulfil its objectives, therefore the financial statements have been prepared on the basis that the CIO will continue in existence for the foreseeable future. As a result, no adjustments have been made to the Financial Statements. Page 16