Interserve International Fellowship Trustees Annual Report and Unaudited Financial Statements Year ended 31 December 2022 Charity registation - 1187558 Company number - 11599413 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Contents |Trustees annual report|4| |---|---| |Our nature, charitable purpose & approach|4| |Strategic Report|5| |Financial review|5| |Principal Risks and Uncertainties|6| |Governance and management structures|6| |Reference and administrative details|7| |Statement of Board of Trustees’ responsibilities|8| |Independent examiner’s report|10| |Statement of fnancial activities|12| |Balance sheet|13| |Statement of cash fows|14| |Notes to the fnancial statements|15| Charity number 1187558 Company number 11599413 3 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Trustees annual report The Board of Trustees, who are also directors of the Charity for the purposes of the Companies Act, and trustees for charity law purposes, submit their annual report and the financial statements of Interserve International Fellowship for the year ended 31 December 2022. The Board of Trustees confirms that the annual report and financial statements of the Charity comply with current statutory requirements, including the Charity Act 2011, as well as the requirements of the Charity’s governing document and the provisions of 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) second edition (effective 1 January 2019)’, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006. ## Our nature, charitable purpose & approach The Interserve International Fellowship charity joins with independently registered “Interserve” organisations in thirteen countries and a number of partnering agencies in other countries to form an alliance (broadly referred to as ‘the fellowship’) seeking to positively affect quality of life wherever we serve. Members of the fellowship serve among the peoples of Asia and the Arab World in the geography of Asia and the Arab World as well as peoples of Asia and the Arab world who live in diaspora elsewhere. We are united in our diverse contexts, and our diverse service efforts, by our vision, purpose, and values which are articulated on our foundation documents. ## Our Vision: To see lives and communities transformed through encounter with Jesus Christ. ## Our Purpose: To make Jesus Christ known among the peoples of Asia and the Arab World. ## How We Work: The Interserve International Fellowship charity oversees the work of Interserve around the world. The International Leadership Team provides overall leadership to the entities and ministry teams members of the fellowship are assigned and associated. Regional Directors serve in distinct regions assisting local teams to craft relevant ministry plans, ensure members are healthy and cared for, and provide essential input from those local ministry dynamics to the international leadership body. Functional Directors serve across Interserve to provide resources and tools generally, including leadership development, HR best practices and guidance, focus on emerging trends and ministry development, communication internally across the fellowship as well as coordinating communications externally through member organisations. Supporting these roles, the Charity provides: - Central information systems, - Assists in managing financial resource development and distribution, - Advises in personal security and operational security for our ministry groupings, and - Coordinates regional and international meetings, forums, conferences, consultations and other gatherings. The International Leadership Team is led by the International Director who is accountable to the Interserve International Council which includes the Charity’s Board of Trustees. The global fellowship of Interserve is ‘evangelical’ in its understanding and practice of the Bible’s teaching. It works for, with and through the local church in roughly 50 countries. Interserve works ‘wholistically’, or in an integrated way, serving the whole person in the whole context of life – i.e. body, mind and spirit, within a social context and culture – the whole of life being subject to the whole nature of God and His goodness. Charity number 1187558 Company number 11599413 4 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 We do this through: - Listening and responding to God; - Building communities of disciples; - Ministering wholistically with those from other cultures and faiths in appropriate and respectful ways; and, - Facilitating missional engagement. The Trustees have reviewed the guidance issued by the Charity Commission with regard to the public benefit arising from the activities undertaken by the Charity. The Trustees are satisfied that the services provided by the Charity fully meet the principles of public benefit as set out in the Charity Commission Guidance. ## Strategic Report The activities of the IIF anticipated a return to more normal operations and activities as the COVID-19 pandemic was ending in 2022. Work projects in most countries were able to recover, resume or restart if they had survived the previous 2.5 years. Beginning in mid 2022, the International Leadership Team was able to hold in-person meetings. In the early Q-4 of 2022, leaders from across the wider Fellowship were able to meet in Albania for a week of interaction as the Fellowships Leaders Consultation. Some significant elements of our work in 2022 included: ## People Migration, globally displaced peoples and refugees Interserve’s ministry among refugees and other globally displaced peoples continues to grow as the number of displaced peoples increases all across the world of the Interserve International Fellowship. Interserve personnel are involved in the lives of refugees in a number of ways, from assistance with basic personal needs such as food and accommodation through to counselling and other emotional support, while some Interserve personnel work closely with the UNHCR and other global agencies to assist them with refugee resettlement programmes. This area of our work is a natural part of our ministry to support the peoples of Asia and the Arab World in practical ways. ## International Leaders Consultation Leaders from across the Fellowship, representing the 14 registered entities, 28 non-registered ministry implementing teams, and non-Interserve partnering agencies gathered for a week of interaction, discussion, and discernment for the state of our Fellowship. Highlights included: **•** Significant challenges in improving how well our local operations integrate with community partners and colleagues. How these parties understand and experience a sense of belonging, or feel a buy-in as recognised members, is a cultural development issue we are being called to embrace. **•** The growth in the number and capacity of local communities and churches which sense a call to the values and purposes that Interserve identifies is creating new opportunities for partnering in a way that is new to our historic mode of ministry and service. **•** Interaction and feedback from the delegates to the International Leadership regarding faithfulness in our posture and priorities as we move into this post-pandemic season and the changing contexts where we work. ## Operations Capacity In the midst of a challenging 2 years for the central operations services, which included a migration of accounting data and process to a new software, the capacity of financial services was increased by the addition of a full-time staff member, and a part time accountant. The result has been a successful resolution to the accounting migration, and consolidation of accounting data now held in a single software set of books. ## Financial review During the current financial year, the Charity incurred a deficit of $250,313 (2021: surplus of $99,081) through ongoing activities, resulting in total year end reserves of $1,174,596 (2021: $1,424,909). A major contributing factor Charity number 1187558 Company number 11599413 5 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 was the Arab World Conference which incurred expenditure of $108,878, with the majority of the related income recognised in prior periods. At the point of registration, at the start of the 2020 financial year, the Charity received an initial transfer from the previous unincorporated body which was shown as an extraordinary item on the Statement of Financial Activities in the first financial year - an additional $281,837 was transferred in last year. The Trustees are satisfied with the financial performance of the Charity throughout the year. Of the total reserves held at year end $881,991 (2021: $1,047,351) were unrestricted as to use, although only $279,506 (2021: $448,499) was available as general funds as a result of designations made to support various projects as outlined in note 9 of the financial statements. ## Reserves policy The Trustees have set a reserves policy that the Charity should hold a minimum unrestricted general reserve equivalent to three months expenditure - approximately $95,000. The current level of $279,506 (2021: $448,499) is significantly above this level, but is not deemed excessive at this time especially given the financial risks noted below. ## Principal Risks and Uncertainties ## Internal Alignment in Leadership and Governance The IIF charity fills a central role for the international fellowship towards clarity of purpose and the nature of our approach to ministry. Each independent organization within the fellowship has their own governing board in the national jurisdiction where they are incorporated. We have become increasingly sensitive to the challenge of helping those governing boards understand and develop a sense of ownership to the culture, ethos and operational approach of the wider fellowship. Failure to build core alignment in these elements risks fragmenting our efforts and undermining key priorities. As a result, priority focus will be given to directly engaging governing boards wherever an Interserve organization is registered so that the broader challenges of the fellowship are understood, our principle values are embraced and our sense of unity is strengthened. ## Access and Residency Permits Interserve personnel’s ability to physically reside in the contexts where ministry, projects and commercial activities are being implemented remains a threat to our effectiveness in ministry. This includes our ability to provide relational support and encouragement to those serving in our Countries of Service (largely expatriates serving out of their passport countries). In the wake of the global pandemic and as a result of a longer trend for governments to take a guarded and protective posture toward expatriate residencies, immigration regulations are increasingly restrictive. In some countries citizens are restricted from travelling outside of national borders. In many more, there are restrictions on visa residency and work permits that provide longer term residency. Our short-term response has been to utilize technology to communicate and collaborate across national boundaries. While these technologies are powerful and enable a significant degree of productivity, longer term solutions will need to get beyond these tools and develop trusted external networks where our ability to be physically present remains restricted. ## Financial Resource Models A continuing threat to our wider fellowship at all levels is that the financing models we have been using for most of our history are increasingly challenged. This is amplified as our mobilizing contexts (personnel and financial resources) are expanding to include parts of the world where this model is foreign. As a result, our ability to fund our ministries is threatened in the future. To address this risk, we have formed a number of working groups to explore, experiment and pilot alternative principles of raising needed resources, financial resources in particular. These efforts are considering the ability to practice a greater degree of international generosity, and community-based resource sharing, as well as developing an outcomes-based appeal to support our work that can be published across our varied contexts. ## Governance and management structures Interserve International Fellowship was incorporated as a company limited by guarantee (England & Wales) on 6 Charity number 1187558 Company number 11599413 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 October 2nd 2018 (registration number 11599413) and is governed by its Articles of Association. This company is registered with the Charity Commission in England and Wales under reference 1187558, with the registration completed on 24 January 2020. The International Council, which includes the Trustees (who are appointed by trustees), are responsible for appointing the International Director (the senior role of the management team), approving the Annual Report and financial statements, appointing the auditors, and ensuring that the charitable company is managed by the International Director in accordance with the policies established by the International Council from time to time. All new members are provided with an induction from current members and support staff. The International Council Finance Committee (ICFC) is a sub-committee of the Council. This committee monitors the work of the Chief Finance Officer and the Finance Manager and is tasked by Council with overseeing the preparation of the Financial Statements; the budgeting process; and the audit process. The International Director, through a International Leadership Team, is responsible for taking all actions necessary to achieve the aims of the charity. Registered Interserve organisations in their local jurisdiction have signed a “Covenant of Fellowship” with the other entities that form the International Fellowship. The covenant commits each signatory organisation to uphold the statement of faith, purpose statement, vision and values of the International Fellowship, to work within the accountability structures by which the fellowship functions, to observe agreed financial principles and procedures and maintain consistent communications. At the same time, each registered organisation retains its legal autonomy within the International Fellowship and duly operates within the charity laws and regulations within its registered jurisdictions. The Charity currently does not employ any staff directly and instead utilises staff employed by other Interserve entities and reimburses those entities for expenses incurred in their services. ## Reference and administrative details Registered offce 652 Alum Rock Road Birmingham B8 3NS ## Trustees The Trustees who served during the year, and since commencement, were as follows: Peter Michael Oyugi (Chair) Vijay Alexander (appointed 20 May 2023) Adrienne Ingrid Rosina Ester (appointed 1 April 2023) Elizabeth Jane Fucella (resigned 20 May 2023) Janet Anne Kennedy (appointed 20 May 2023) Min Dong Paul Lee (appointed 20 May 2023) Dr Jamie Matenga Wood (appointed 20 May 2023) Arend Sylvester Zwanepol These, the trustees of the IIF, are members of the International Council of Interserve as mentioned above in “Our nature, charitable purpose & approach”. ## Independent examiners Andy Nash Accounting & Consultancy Units 24 & 25 Goodsheds Container Village Hood Road Barry CF62 5QU Charity number 1187558 Company number 11599413 7 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 Solicitor Russell Cooke 2 Putney Hill London SW15 6AB ## Statement of Board of Trustees’ responsibilities The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of expenditure over income for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures - disclosed and explained in the financial statements; and, - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the - charitable company will continue its activities. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In addition, the Trustees confirm that they are happy that the content of the annual review on pages 3 to 9 of this document, meet the requirements of both the Trustees’ Annual Report under charity law and the Directors’ Report under company law. They also confirm that the financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011, 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) second edition (effective 1 January 2019)’, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## The Trustees confirm that: - so far as each Trustee is aware, there is no relevant information of which the Charity’s independent examiner - is unaware; and, **•** each Trustee has taken all the steps that they should have taken as a Trustee/Director in order to make themselves aware of any relevant independent examination information and to establish that the Charity’s independent examiner is aware of that information. Charity number 1187558 Company number 11599413 8 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Preparation of the report This report has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act 2006, and the exemptions available for smaller charities under the Statement of Recommended Practice. This report was approved and authorised for issue by the Board of Trustees on 22 September 2023 and signed on its behalf by: PETER OYUGI (Sep 22, 2023 14:03 GMT+1) ## PETER OYUGI CHAIR Bijoy Nainan Koshy (Sep 22, 2023 20:10 GMT+7) ## BIJOY KOSHY INTERNATIONAL DIRECTOR Charity number 1187558 Company number 11599413 9 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Independent examiner’s report I report to the Trustees on my examination of the accounts of Interserve International Fellowship (charity number 1187558, company number 11599413) for the year ended 31 December 2022 which are set out on pages 12 to 24. ## Respective responsibilities of trustees and examiner The Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (‘the 2011 Act’) nor under Part 16 of the 2006 Act, and that an independent examination is needed. Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, it is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the general directions given by the Charity Commission under section - 145(5)(b) of the Charities Act; and, - to state whether particular matters have come to my attention. This report, including my statement, has been prepared for and only for the Charity’s Trustees as a body. My work has been undertaken so that I might state to the Charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body for my examination work, for this report, or for the statements I have made. ## Basis of independent examiner’s statement My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. ## Independent examiner’s statement Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or, - the accounts do not accord with those records; or, **•** the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or, **•** the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Charity number 1187558 Company number 11599413 10 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## ANDREW PHILIP NASH ACA MEMBER OF THE INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES – 2461833 DATED: 22 SEPTEMBER 2022 Andy Nash Accounting & Consultancy Ltd Units 24 & 25 Goodsheds Container Village Hood Road Barry CF62 5QU Charity number 1187558 Company number 11599413 11 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Statement of financial activities Incorporating the Income and Expenditure Account & Statement of Realised Gains and Losses For the year ended 31 December 2022 |Notes
Income from:
Donations & legacies
3
Charitable activities
4
Investments
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net income/(expenditure)
Initial transfer of capital
6
Net movement in funds
Reconciliation of funds
Funds brought forward
9 & 10
Funds carried forward
9 & 10|Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2022
2022
2022
2021
$ $ $ $ 59,833
-
59,833
1,950
450,607
68,397
519,004
482,276
415
-
415
374| |---|---| ||510,855
68,397
579,252
484,600| ||676,215
153,350
829,565
385,519| ||676,215
153,350
829,565
385,519| ||| ||(165,360)
(84,953)
(250,313)
99,081
-
-
-
281,837| ||(165,360)
(84,953)
(250,313)
380,918
1,047,351
377,558
1,424,909
1,043,991| ||881,991
292,605
1,174,596
1,424,909| The notes on pages 15 to 24 form part of the financial statements. Charity number 1187558 Company number 11599413 12 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Balance sheet As at 31 December 2022 |Balance sheet
As at 31 December 2022||||| |---|---|---|---|---| |Notes
Current assets:
Debtors & prepayments
7
Cash at bank and in hand
Current assets
Liabilities:
Creditors: amounts falling
due within one year
8
Net current assets/(liabilities)
Net assets/(liabilities)
The funds of the charity:
Restricted funds
9 & 10
Unrestricted funds
General funds
9 & 10
Designated funds
9 & 10
Unrestricted funds
Total charity funds|$ 217,864
1,241,937|Total
Funds
2022
$

1,459,801
(285,205)|$ 295,892
1,615,987|Total
Funds
2021
$

1,911,879
(486,970)| ||279,506
602,485||



448,499
598,852|| |||1,174,596||1,424,909| |||1,174,596||1,424,909| |||292,605


881,991||377,558


1,047,351| ||||
|| |||1,174,596||1,424,909| The notes on pages 15 to 24 form part of the financial statements. The financial statements have been prepared in accordance with section 415A of the Companies Act 2006 relating to small companies and FRS 102 Section 1A. The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31 December 2022, and the members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 December 2022 under section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. They were approved and authorised for issue by the Board of Trustees on 22 September 2023 and signed on their behalf by: PETER OYUGI (Sep 22, 2023 14:03 GMT+1) ## PETER OYUGI CHAIR Charity number 1187558 Company number 11599413 13 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Statement of cash flows For year ended 31 December 2022 |
nnual report and fnancial statements
Statement of cash fows
For year ended 31 December 2022||||| |---|---|---|---|---| |Cash fows from operating activities:
Net income/(expenditure) for period (as per SOFA)
Adjustments for:
Investment income
(Increase)/decrease in advances
(Increase)/decrease in prepayments
(Increase)/decrease in other debtors
Increase/(decrease) in national offce accounts
Increase/(decrease) in accruals
Increase/(decrease) in deferred income
Net cash used in operating activities
Cash fows from investing activities
Investment income
Net cash used in investing activities
Cash fows from fnancing activities
Initial transfer of capital
Net cash used in fnancing activities
Change in cash and cash equivalents in period
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period|$ (415)
17,780
3,674
(971)
(175,093)
610
30,263|Total
Funds
2022
$ (250,313)




(124,152)|$ (374)
(13,269)
(3,801)
(13,440)
35,539
(13,122)
(13,051)|Total
Funds
2021
$ 99,081

(21,518)| ||415||374|| |||(374,465)

415

-||77,563

374

281,837| ||-||
281,837|| ||||

|| |||(374,050)
1,615,987||359,774
1,256,213| |||1,241,937||1,615,987| The notes on pages 15 to 24 form part of the financial statements. Charity number 1187558 Company number 11599413 14 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## Notes to the financial statements ## 1. Accounting policies Basis of preparation of the financial statements The financial statements have been prepared in accordance with ‘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) second edition (effective 1 January 2019)’, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), including Update Bulletin 1, and the Companies Act 2006. The effect of any event relating to the year ended 31 December 2022, which occurred before the date of approval of the financial statements by the Board of Trustees has been included in the financial statements to the extent required to show a true and fair view of the state of affairs at 31 December 2022 and the results for the year ended on that date. The functional currency of the Charity is USD and amounts in the financial statements are rounded to the nearest dollar. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## Going concern The financial statements have been prepared on the going concern basis as the Board of Trustees is confident that future reserves and future income is more than sufficient to meet current commitments. There are no material uncertainties that impact this assessment, and the current economic environment has had no material impact on this assessment. ## Legal status Interserve International Fellowship is a charitable company registered in England & Wales and meets the definition of a public benefit entity. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member. The registered address is 652 Alum Rock Road, Birmingham, B8 3NS. ## 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. Designated funds are unrestricted funds which have been designated for a specific purpose by the Trustees. The aim and use of each designated fund is set out in note 9 of the financial statements. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors or that have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note 9 of the financial statements. ## Income Income is recognised when the Charity has entitlement to the funds, any performance indicators attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Donations are recognised in full in the Statement of Financial Activities when entitled, receipt is probable and when the amount can be quantified with reasonable accuracy. Gift aid receivable is included when claimable. Charity number 1187558 Company number 11599413 15 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 1. Accounting policies (continued from previous page) Income (continued from previous page) Grant income is credited to the Statement of Financial Activities when received or receivable whichever is earlier, unless the grant relates to a future period, in which case it is deferred. Income from charitable activities, including national office and On Track contributions, is credited to the Statement of Financial Activities when received or receivable whichever is earlier, unless it relates to a specific future period or event, in which case it is deferred. Interest is recorded when it is receivable. Expenditure and irrecoverable VAT All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Indirect costs, including governance costs, which cannot be directly attributed to activities, are allocated proportionate to total direct costs allocated to each project area, as outlined in note 5 of the financial statements. Irrecoverable VAT is charged against the category of expenditure for which it was incurred. Tangible fixed assets and depreciation All assets costing more than $1,000 are capitalised. There are currently no assets held by the Charity over this amount. ## Cash at bank and in hand Cash at bank and in hand includes cash in hand, deposits with banks and funds that are readily convertible into cash at, or close to, their carrying values but are not held for investment purposes. ## Debtors and prepayments Trade and other debtors are recognised at the settlement amount after any trade discount is applied. Prepayments are valued at the amount prepaid net of any trade discounts due. ## Creditors and accruals Creditors are recognised where the Charity has a present obligation resulting 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. ## Critical estimates and judgements In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The annual depreciation charge for tangible fixed assets is sensitive to changes in useful economic lives and residual values of assets. In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. ## Financial instruments Basic financial instruments are measured at amortised cost other than investments which are measured at fair value. Charity number 1187558 Company number 11599413 16 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 1. Accounting policies (continued from previous page) ## Foreign currencies Foreign currency balances have been translated at the exchange rate ruling at the Balance Sheet date. Income and expenditure transactions have been translated at the prevailing rate at the time of the transaction. ## 2. Comparative statement of fnancial activities |Notes
Income from:
Donations & legacies
3
Charitable activities
4
Investments
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net income/(expenditure)
Initial transfer of capital
6
Net movement in funds
Reconciliation of funds
Funds brought forward
9 & 10
Funds carried forward
9 & 10|Unrestricted
Restricted
Total
Funds
Funds
Funds
2021
2021
2021
$ $ $ 1,950
-
1,950
414,742
67,534
482,276
374
-
374| |---|---| ||417,066
67,534
484,600| ||333,739
51,780
385,519| ||333,739
51,780
385,519| ||| ||83,327
15,754
99,081
229,498
52,339
281,837| ||312,825
68,093
380,918
734,526
309,465
1,043,991| ||1,047,351
377,558
1,424,909| Charity number 1187558 Company number 11599413 17 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 3. Income from donations and legacies |4. Income from charitable activities
Donations
Donations
National offce contributions
On Track contributions
Other contributions
National offce contributions
On Track contributions
Other contributions|Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
$ $ $ 59,833
-
59,833| |---|---| ||59,833
-
59,833| ||Unrestricted
Restricted
Total
Funds
Funds
Funds
2021
2021
2021
$ $ $ 1,950
-
1,950| ||1,950
-
1,950| ||Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
$ $ $ 440,432
-
440,432
10,175
-
10,175
-
68,397
68,397| ||450,607
68,397
519,004| ||Unrestricted
Restricted
Total
Funds
Funds
Funds
2021
2021
2021
$ $ $ 404,149
-
404,149
6,200
-
6,200
4,393
67,534
71,927| ||414,742
67,534
482,276| Charity number 1187558 Company number 11599413 18 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 5. Total expenditure |Fellowship development
Regional development
International offce
Arab World Conference
Country teams
Other projects
Link Coordination service fees
Administration
Governance
Leadership
Operational development
People development
Regional development
Other support
Administration
Governance|Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
$ $ $ 288,733
26,495
315,228
33,057
-
33,057
87,786
-
87,786
-
92,499
92,499
-
15,986
15,986
-
17,972
17,972
205,905
-
205,905
55,929
398
56,327
4,805
-
4,805| |---|---| ||676,215
153,350
829,565| ||Unrestricted
Restricted
Total
Funds
Funds
Funds
2021
2021
2021
$ $ $ 11,503
-
11,503
5,727
-
5,727
2,276
-
2,276
6,726
-
6,726
87,787
51,780
139,567
214,809
-
214,809
4,911
-
4,911| ||333,739
51,780
385,519| Governance costs includes: |Independent examination
Trustee indemnity insurance|Total
Total
Funds
Funds
2022
2021
$ $ 3,643
3,643
1,162
1,268| |---|---| ||4,805
4,911| ## 6. Initial transfer of capital Previously, the operations of Interserve International Fellowship had been managed through an unincorporated entity. An initial transfer of net assets totalling $798,583 were transferred to the newly registered charity in January 2020 and a further $281,837 were transferred in prior period. This transfer was treated as an extraordinary item below income and expenditure as permitted under clauses 4.16 to 4.18 of the SORP. Charity number 1187558 Company number 11599413 19 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 7. Debtors and prepayments |National offce accounts
Advances
Prepayments
Other|Total
Total
Funds
Funds
2022
2021
$ $ 175,702
233,247
26,024
43,804
1,510
5,184
14,628
13,657| |---|---| ||217,864
295,892| ## 8. Creditors: amounts falling due within one year |National offce accounts
Accruals
Other|Total
Total
Funds
Funds
2022
2021
$ $ 246,824
479,462
5,125
4,515
33,256
2,993| |---|---| ||285,205
486,970| Charity number 1187558 Company number 11599413 20 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 9. Analysis of charity funds |Restricted
Asian Mission Fund
Arab World Conference
E2S Development Fund
Europe Development
Medical Fund
Total restricted
Unrestricted
Designated
Leadership
Development
Latin America
Ministry Development
International
Meeting
Fund
Global South
Leadership
Financial
Support
ILT
Director
Support
Fund
Philippines
Africa Development
Emergency Fund
Total designated
General
Total unrestricted
Total funds|Balance
Income
Transfer
Transfers
Balance
brought
in
in
of
between
carried
forward
year
year
capital
funds
forward
2022
2022
2022
2022
2022
2022
$ $ $ $ $ $ -
-
-
-
-
-
131,932
38,505
(108,878)
-
-
61,559
65,178
2,340
(26,495)
-
-
41,023
52,339
-
-
-
-
52,339
128,109
27,552
(17,977)
-
-
137,684| |---|---| ||377,558
68,397
(153,350)
-
-
292,605| ||57,820
-
(3,057)
-
59,000
113,763
44,744
-
(3,241)
-
-
41,503
39,231
-
(1,330)
-
-
37,901

181,756
-
(155,009)
-
40,000
66,747
50,343
-
(39,730)
-
85,000
95,613

18,319
-
-
-
2,000
20,319

-
-
-
-
20,000
20,000
23,042
-
-
-
-
23,042
21,533
-
-
-
-
21,533
162,064
-
-
-
-
162,064| ||598,852
-
(202,367)
-
206,000
602,485
448,499
510,855
(473,848)
-
(206,000)
279,506| ||1,047,351
510,855
(676,215)
-
-
881,991| ||1,424,909
579,252
(829,565)
-
-
1,174,596| ## Asian Mission Fund This fund is to provide financial support to needy partners and training local ministries and member care ministries. ## Arab World Conference The Arab World Conference fund is to cover the costs of the joint Arab World Conference, held every three years. Each partner in the Arab World is assessed a monthly charge, paid by the partner’s respective national office. These funds are accumulated in order to cover the costs of the conference. ## E2S Development Fund This fund is designed to pay the costs of E2S Conference and contributions are made from Conference participants. ## Medical fund This fund is to provide funds for medical care when the partner is in the field. This fund is refreshed each month with a medical levy on each participant in the plan. Charity number 1187558 Company number 11599413 21 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 9. Analysis of charity funds (continued from previous page) ## Leadership development This fund is to encourage existing and emerging leaders across the Fellowship to engage in continuous personal development including study, reading and training. Less Affluent Contexts (LAC) & Global South Generally these funds are setup to support global south national offices and also to assist other national offices in times of financial difficulties. ## Ministry development This fund is for the development of core ministry within Interserve. International Meeting Fund The fund is to cover some of the costs of international meetings (Leaders Consultation, Regional Forums, Functional Leaders Conferences). Leadership Financial Support The fund is designed to assist and encourage members of the ILT in continuous personal development, training and study. It can also be used to assist in meeting financial obligations such as visa expenses while performing their leadership role. ILT Director Support Fund The fund is designed to support the ILT Director. ## Philippines This fund is for the development of Philippines partnership. Africa Development This fund is for partnership development with Africa missions and churches. ## Emergency Fund The Emergency Fund is for the purpose of evacuating partners and their families out of an emergency situation while serving in their country of service where a National Office does not exist in that country. Charity number 1187558 Company number 11599413 22 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 9. Analysis of charity funds (continued from previous page) |Restricted
Asian Mission Fund
Arab World Conference
E2S Development Fund
Europe Development
Medical Fund
Total restricted
Unrestricted
Designated
Leadership
Development
Latin America
Ministry Development
International
Meeting
Fund
Global South
Leadership
Financial
Support
Philippines
Africa Development
Emergency Fund
Total designated
General
Total unrestricted
Total funds|Balance
Income
Expenditure
Transfer
Transfers
Balance
brought
in
in
of
between
carried
forward
year
year
capital
funds
forward
2021
2021
2021
2021
2021
2021
$ $ $ $ $ $ 8,400
-
(8,400)
-
-
-
100,607
31,325
-
-
-
131,932
59,689
5,489
-
-
-
65,178
-
-
-
52,339
-
52,339
140,769
30,720
(43,380)
-
-
128,109| |---|---| ||309,465
67,534
(51,780)
52,339
-
377,558| ||60,557
-
(2,737)
-
-
57,820
44,744
-
-
-
-
44,744
39,231
-
-
-
-
39,231

181,756
-
-
-
-
181,756
78,159
-
(27,816)
-
-
50,343

25,819
-
(7,500)
-
-
18,319
23,042
-
-
-
-
23,042
21,533
-
-
-
-
21,533
162,064
-
-
-
-
162,064| ||636,905
-
(38,053)
-
-
598,852
97,621
417,066
(295,686)
229,498
-
448,499| ||734,526
417,066
(333,739)
229,498
-
1,047,351| ||1,043,991
484,600
(385,519)
281,837
-
1,424,909| ## 10. Analysis of net assets |Current assets
Current liabilities
Current assets
Current liabilities|Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
$ $ $ 1,167,196
292,605
1,459,801
(285,205)
-
(285,205)| |---|---| ||881,991
292,605
1,174,596| ||Unrestricted
Restricted
Total
Funds
Funds
Funds
2021
2021
2021
$ $ $ 1,534,321
377,558
1,911,879
(486,970)
-
(486,970)| ||1,047,351
377,558
1,424,909| Charity number 1187558 Company number 11599413 23 Interserve International Fellowship Annual report and financial statements Year ended 31 December 2022 ## 11. Analysis of net debt |Cash and cash equivalents
Cash at bank
Cash and cash equivalents
Cash at bank|As at
Cash
Other
As at
1 Jan ‘22
fows
31 Dec ‘22
$ $ $ $ 1,615,987
(374,050)
-
1,241,937| |---|---| ||1,615,987
(374,050)
-
1,241,937| ||As at
Cash
Other
As at
1 Jan '21
fows
movements
31 Dec '21
$ $ $ $ 1,256,213
359,774
-
1,615,987| ||1,256,213
359,774
-
1,615,987| ## 12. Trustee remuneration During the year, no trustee received any remuneration (2021: NIL). No members of the Board of Trustees received reimbursement of expenses (2021: NIL). ## 13. Related party transactions During the year there were no related party transactions (2021: NIL). Charity number 1187558 Company number 11599413 24