Ligonier Ministries UK
Unaudited Financial Statements for the year ended 31 December 2021
Charity Registration Number – 1185736
Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW
Ligonier Ministries UK
Financial Statements for the year ended 31 December 2021
| Contents | Page |
|---|---|
| Charity information | 1 |
| Trustees’ report | 2-5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the financial statements | 8-12 |
Ligonier Ministries UK
REFERENCE AND ADMINISTRATIVE INFORMATION
Trustees
Rev M G Johnston Dr J Morris C E Larson
Registered office
Union School of Theology Bryntirion House Bryntirion BRIDGEND CF31 4DX
Charity number 1185736
Bankers
CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Solicitors
Bates Wells 10 Queen Street Place London, EC4R 1BE
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LIGONIER MINISTRIES UK
TRUSTEES’ REPORT
The Trustees of the Charitable Incorporated Organisation (“the CIO”) present their Annual Report and Financial Statements for the year ended 31 December 2021. The accounts are prepared in accordance with the Charities Act 2011, and with the Charities Statement of Recommended Practice applicable to charities preparing accounts in accordance with FRS102.
Structure, Governance and Management
The CIO was registered on 10 October 2019. The CIO is governed by its Constitution.
Appointment and induction of Trustees
Every Trustee must be appointed for a term of four years by a resolution of the charity trustees. A trustee whose term of office has expired shall be eligible for reappointment for a further term and there is no maximum on the number of terms of office which a trustee may serve. Any appointment or reappointment of trustees is subject to review by Ligonier US. Appointments will be made in accordance with the Charity’s Constitution.
In selecting individuals for appointment as trustees the trustees have regard to the skills, knowledge and experience needed for the effective administration of the CIO. Ligonier has longstanding relationships with pastors and theologians in the UK. Board members are identified based on their Reformed teaching background, their alignment with Ligonier’s mission and vision, and organisational business skills. Once a potential trustee is identified, then the nomination is reviewed and approved by Ligonier US and Ligonier UK Board of Trustees. New trustees undergo an induction to brief them on their legal obligations under charity law, the content of the Constitution, the Board and the decision-making processes and the recent performance of the charity. They meet the key officers and the other trustees. Changes in legislation, for example the Charities Act 2011, and its application to the Charity, especially the public benefit requirements, have been explained to Board members and discussed at Board meetings, and the Board has given due regard to the guidance issued by the Charity Commission in respect of public benefit.
Description of the organisational structure
The Charity is run by a Board of Trustees and presided over by the Chairman. The Board is responsible for the financial management and long-term operational decisions of the Charity. The Chairman is responsible for the day-to-day operations, and it outsources all bookkeeping tasks to JCS, a third-party accounting firm.
Related party
Ligonier US is Ligonier Ministries Inc, established in 1975 and registered as a non-profit organisation under the US Internal Revenue code. Ligonier US provides the teaching and theological framework which informs all educational and discipleship outreaches. Ligonier US also provides strategic and operational assistance to the UK entity, including donor acquisition strategy, communications strategy, and event preparation and execution. The Ligonier US Board of Directors provides the Ligonier UK Board of Trustees with guidance supporting and developing brand continuity. Ligonier US and Ligonier UK have entered into an affiliation agreement that includes provisions for using the Ligonier name and associated marks to leverage the expansion of the Ligonier mission throughout the UK. Both entities have entered into a service agreement by which Ligonier US provides financial and administrative support for all ministry activities until the UK Charity has the viability to perform its operations organically.
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LIGONIER MINISTRIES UK
TRUSTEES’ REPORT (continued)
Risk assessment
The trustees have identified the immediate risks to which the Charity is exposed and, as far as is possible, taken actions or begun to assess strategies and systems to mitigate these risks.
The Trustees consider the potential risks and uncertainties facing the charity and their plans and strategies for managing these risks to be:
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New and changing Charity legislation – Ligonier UK sees opportunities to further assist and encourage the church as increased marginalization of churches and faith-based charitable organizations continues to prevail. To mitigate this risk, the Charity plans to remain alert to specific public policy and government actions that could adversely impact churches and charitable organizations. Bates-Wells and other legal and public policy experts, the charity will assist in guiding the Charity and ensuring that it remains nimble in its reaction to new regulations and adequately responds to pressures to reduce or eliminate church and faith-based charitable work.
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Compliance with new GDPR legislation – Ligonier UK recognizes internet fraud and misuse of personal identifiable information is a threat that impacts all modern organizations. To ensure compliance and minimize probabilities associated with such malicious activity, the Charity is working earnestly to adapt to new UK data privacy challenges, particularly as data is shared between the US and UK charities. The Charity is also working to minimize risk for data breaches through coordination with data privacy attorneys in the UK and working with GDPR compliant donor management platforms and service providers.
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Developing a Strong Donor Base – Ligonier UK has a small baseline of UK-based constituents who financially support the US ministry and will transition, in time, to support the UK ministry. There exists uncertainty as to predicting the timeline for the Charity to become self-funded, however, it is currently developing a comprehensive donor outreach strategy to develop relationships that will hopefully lead to generous gifts of resources from the public and will help donors understand and support the mission and vision of the Charity. The Charity is also makes maxmum use of Ligonier US content, conferences, and outreach and available to undergird the UK churches.
Objectives and Activities
The principal objective of the charity is the advancement of the Christian faith, specifically the Reformed faith, in accordance with the purpose of the Charity which is to proclaim, teach, and defend the holiness of God in all its fullness to as many people as possible.
To help achieve its objectives the charity focuses in three areas: publishing, broadcasting and events. The Charity provides trustworthy discipleship resources such as books, study Bibles, magazines, and many other online articles so that Christians can grow in their understanding of God and of themselves. Additionally, the Charity airs podcasts, video teaching series and radio programs via several digital mediums. Lastly, the Charity gathers Christians at events all over the world and online in an effort to bless the local church and strengthen its members for greater service.
Achievements and Performance
No significant activity was directed by the Charity during the reporting period due to operational challenges amid a global pandemic.
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LIGONIER MINISTRIES UK
TRUSTEES’ REPORT (continued)
Financial Review
During the year the charity received no donations. The administration costs of the charity were funded by a loan from Ligonier US.
Reserves policy
The ministry seeks to achieve a minimum three-month reserve based on annual ministry budget projections. While reserves remain below this target, Ligonier US will continue to provide funding.
Investment policy
Surplus funds will be directed to additional outreach and mission support. General investment of surpluses will remain in the local bank account or perhaps be invested in easily liquifiable and lowrisk investment platforms. Long term-endowment type gifts may be held in 5–10-year alternative fiat investment options and/or digital currency holdings, upon Trustee approval.
Plans for the future and Public Benefit
Ligonier UK will seek to engage with the local church and like-minded Christians through events, conferences, and pastoral seminars throughout the UK. Continued leverage of resources both digital and traditional will occur through third party sales and distribution.
In making these plans the trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission.
Statement of Trustee’s Responsibilities
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales 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 of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 that disclose with reasonable accuracy at any time the financial position of the charity and 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.
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LIGONIER MINISTRIES UK
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
Statement of financial activities
For the year ended 31 December 2021
| Total Funds | |||
|---|---|---|---|
| Note | Total Funds | 15 Months | |
| Year Ended | Ended | ||
| 31.12.2021 | 31.12.2020 | ||
| £ | £ | ||
| Income from: | |||
| Donations: | |||
| Donations & Legacies | - | 1,000 | |
| Investments: | |||
| Interest receivable | - | - | |
| Charitable activities: | |||
| Conference income | - | - | |
| Total income | - | 1,000 | |
| Expenditure on: | |||
| Charitable activities | 2 | 6,987 | 7,630 |
| Total expenditure | 6,987 | 7,630 | |
| Net income/(expenditure) & movement in funds | (6,987) | (6,630) | |
| Fund balances brought forward at | |||
| 1 January 2021 | (6,630) | - | |
| Fund balances carried forward at | |||
| 31 December 2021 | (13,617) | (6,630) |
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| FINAI{CIALSTATEMENTSFORTH BalanceSheet |
EYEAREN | DED 31DECEMBERzoe | r |
|---|---|---|---|
| As at31Decemberzozt | |||
| Note | 2021 | 2()2() | |
| E | E | ||
| FixedAssets | |||
| Tangibleassets | 3 | ||
| Currentassets | |||
| Debtors | 4 | 37 | lrl23 |
| Cash atbankandin hand | Lr'..:r'46 | ||
| Liabilities | 4,583 | I,t23 | |
| Creditors:amountsfallingdue | |||
| withinoneyear | 5 | (e-ogJ | G,$o) |
| Net cur:rentassets/(IiabiHties) | t2,5O2 | 0oz) | |
| Creditors: Amountsfallingdue | |||
| aftermorethanoneyear | 6 | (z6'tre) | G-99) |
| Netassets/(liabiHties) | ($Jrz) | (6$0) | |
| Funds | |||
| Generalfund | (rg612) | GJ:q) |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
LIGONIER MINISTRIES UK
1 ACCOUNTING POLICIES
The name of the CIO is LIGONIER MINISTRIES UK. It is registered with the Charity Commission (number 1185736). The CIO’s registered office is Union School of Theology, Bryntirion House, Bryntirion, BRIDGEND CF31 4DX.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of preparation
The financial statements have been prepared under the Charities Act 2011 and in accordance with the Constitution, the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments.
Ligonier Ministries UK meets the definition of a public entity under FRS 102.
The financial statements are prepared in Sterling, which is the functional currency of the CIO. Monetary amounts in these financial statements are rounded to the nearest pound.
The comparative figures are for the fifteen months from formation to 31 December 2020.
Going concern
There are no material uncertainties about the charity’s ability to continue as a going concern.
Tangible fixed assets
Tangible fixed assets costing more than £100 are capitalised and included at cost including any incidental expenses of acquisition.
Depreciation
Depreciation of fixed assets is calculated to write off fixed assets over their estimated useful economic lives, as follows:
Computer equipment - 33% reducing balance
Debtors
Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.
Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
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LIGONIER MINISTRIES UK
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021
1 ACCOUNTING POLICIES (continued)
Financial instruments
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Income recognition
Donations and other incoming resources (including legacies) are included in the Statement of Financial Activities (SOFA) when the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured.
Deferred income recognition
All deferred income relates to Conference income received during the period which relates to future events.
Expenditure recognition
All expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities and has been classified under headings that aggregate all costs related to the category.
Support costs
This comprises all expenditure incurred in supporting the work related to the objects of the charity.
Governance costs
Governance costs are those costs associated with meeting the constitutional and statutory requirements of the charity and include professional fees and costs linked to the strategic management of the charity. These have been allocated directly to charitable expenditure.
Fund accounting
General funds are unrestricted funds which are available for use, at the discretion of the Trustees, in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are those subject to specific trusts, which may be declared by the donor or with their authority. The charity has no restricted funds at this time
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LIGONIER MINISTRIES UK
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021
2 CHARITABLE ACTIVITIES EXPENDITURE
| Total Funds | ||
|---|---|---|
| Total Funds | 15 Months | |
| Year Ended | Ended |
|
| 31.12.2021 | 31.12.2020 | |
| £ | £ | |
| Raising funds: | ||
| Publicity | - | - |
| - | - | |
| Direct charitable expenditure: | ||
| Newsletter | - | - |
| Conference expenses | - | - |
| Grants | - | - |
| - | - | |
| Support costs: | ||
| Administration | - | 300 |
| Bank Fees | 62 | - |
| Insurance | 282 | 62 |
| Depreciation | - | - |
| Governance costs | ||
| Board meeting costs | - | - |
| Legal Fees | 3,635 | 4,463 |
| Accountancy fees | 3,008 | 2,805 |
| Charitable expenditure | 6,987 | 7,630 |
| Total expenditure | 6,987 | 7,630 |
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LIGONIER MINISTRIES UK
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021
3 FIXED ASSETS
| Tangible fixed assets Cost At 1 January 2021 Disposals At 31 December 2021 Depreciation At 1 January 2021 Charge for year Released At 31 December 2021 Net book value At 31 December 2021 At 1 January 2021 4DEBTORS Accrued Income Debtors Prepayments 5 CREDITORS FALLING DUE WITHIN ONE YEAR Deferred Income Other creditors Accruals 6CREDITORS FALLING DUE IN MORE THAN ONE YEAR Deferred Income Other creditors Accruals |
Computer Equipment £ - - - - - - - - - 2021 2020 £ £ - - - 1,123 37 1,123 37 1,123 2021 2020 £ £ - - - - 2,081 1,830 2,081 1,830 - - 26,119 5,923 - - 26,119 5,923 |
|---|---|
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LIGONIER MINISTRIES UK
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021
7 RELATED PARTY TRANSACTIONS
None of the Trustees or key management personnel received any remuneration or benefits in respect of services provided during this year. There were no expenses reimbursed to trustees.
During the year Ligonier US loaned the charity a further £20,196 (2020: £5,923) to cover set up expenses. This was outstanding at the year end.
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