Charity registration number 1190375
WORD OF LIFE MINISTRIES EUROPE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
WORD OF LIFE MINISTRIES EUROPE
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Charity number
Independent examiner
Mr G M Cabral Mr L Jourdel Mr S J L Potter Mrs M D Macieira Mr A R Bandeira Mr A De Melo Matos
1190375
Baldwin Scofield Accountancy LLP 3 Newhouse Business Centre Old Crawley Road Faygate Horsham West Sussex UK RH12 4RU
(Appointed 13 July 2020) (Appointed 13 July 2020) (Appointed 13 July 2020) (Appointed 13 July 2020) (Appointed 13 July 2020) (Appointed 13 July 2020)
WORD OF LIFE MINISTRIES EUROPE
CONTENTS
| Page | |
|---|---|
| Trusstees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 11 |
WORD OF LIFE MINISTRIES EUROPE
TRUSSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities Act 2011 and "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).
Objectives and activities
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To advance the Christian faith in accordance with the Statement by, but not exclusively by, proclaiming the truths contained in the Holy Bible, gathering in public or at other times for teaching the Word of God through the Holy Bible, worship and praise, evangelism, study, prayer, child and youth work and community service;
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To relieve poverty both in the UK and overseas by any means such as gifts, donations, contributions, loans and advances with or without interest;
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To fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected to the charitable work of the Charity as the Trustees from time to time may think fit.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
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WORD OF LIFE MINISTRIES EUROPE
TRUSSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance
2020 and 2021 has been an unusual period for everyone across the world with the effects of the Covid-19 Pandemic creating challenges to every area of Word of Life Ministries Europe’s life and mission. Many "normal" activities were not possible but new ways of working were found as Word of Life Ministries Europe has always sought to be innovative and adaptable. We constantly strive for excellence, learning new methods to present and demonstrate eternal truths. This is a continual and exciting challenge to learn to present the life of Christ in a relevant way in our communities around the world. It is part of the adventure that is Christianity, working from relationship rather than religion.
We have seen Word of Life Ministries Europe developing a clear identity and pushing into new areas as we continue to work together, supporting and cheering each other on. Following the subsequent lockdowns, plans were developed for accelerating our online presence.
Word of Life Ministries Europe vision is to reach the United Kingdom, Europe and the nations with the Word of faith and with values such as Life of faith, Unity and Love, Integrity, Joy and Peace, Sound Doctrine, Fervor of Spirit, Serving Heart, Building People, Excellence and Abundant Life which are worked out in each church with a unique local expression.
Word of Life Ministries Europe is now present in more than fifteen locations reaching out many countries such as England, Scotland, Spain, France, Portugal and Switzerland. Our new online campus, Verbo Connect, reaches out more than 11 other nations.
Word of Life Church London moved exclusively onto an online only basis due to the lockdown. In 2020 Pastor Jourdel was instated as the church pastor whilst Pastor Gleison and Marina Cabral moved to Portugal to expand Word of Life Ministries Europe across the region.
Pastor Gleison and Marina Cabral continue to oversee the activities in the United Kingdom as well as in Europe.
In 2020 twenty students graduated from Word of Life Bible School London. In 2021 the former in-person campus moved to an online format reaching beyond London. As a result, ninety students from fourteen different nations graduated from the now called Word of Life Bible School Europe.
The global pandemic affected every country making travel between countries impossible and often restricting travel within countries. We have continued to support missionaries and works abroad during this difficult time, ensuring the ministries can continue performing excellent work.
The Trustees and Pastors continue to be very thankful for the ongoing support of the partners and team members of Word of Life Ministries Europe as they have remained faithful to the ministry in their sacrificial support, both financially and in volunteering time and skills. Without this help, Word of Life Ministries Europe would not be able to fulfil its mandate.
Our plans for 2021 continue to be affected by the Covid-19 pandemic but new ideas are emerging as we all seek to respond, adapt, and learn. Hybrid church is becoming the new normal, reaching out physically and digitally to the communities around us, meaning more connections and greater reach.
2021 will be a year of expansion and outreach as societies begin to return to more normal activities but with a strong focus on raising new pastors as new leaders are required for the church plants, both online and in-person. Exciting times ahead!
Financial review
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The charity is a charitable incorporated organisation (CIO).
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WORD OF LIFE MINISTRIES EUROPE
TRUSSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees who served during the year and up to the date of signature of the financial statements were: Mr G M Cabral (Appointed 13 July 2020) Mr L Jourdel (Appointed 13 July 2020) Mr S J L Potter (Appointed 13 July 2020) Mrs M D Macieira (Appointed 13 July 2020) Mr A R Bandeira (Appointed 13 July 2020) Mr A De Melo Matos (Appointed 13 July 2020)
The trusstees' report was approved by the Board of Trustees.
Mr G M Cabral Trustee
31 October 2022
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WORD OF LIFE MINISTRIES EUROPE
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF WORD OF LIFE MINISTRIES EUROPE
I report to the trustees on my examination of the financial statements of WORD OF LIFE MINISTRIES EUROPE (the charity) for the year ended 31 December 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
Baldwin Scofield Accountancy LLP
3 Newhouse Business Centre Old Crawley Road Faygate Horsham West Sussex RH12 4RU UK
Dated: 31 January 2022
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WORD OF LIFE MINISTRIES EUROPE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | ||
|---|---|---|
| funds | ||
| 2021 | ||
| Notes | £ | |
| Income from: | ||
| Donations and legacies | 3 | 68,905 |
| Expenditure on: | ||
| Charitable activities | 4 | 52,185 |
| Net income for the year/ | ||
| Net movement in funds | 16,720 | |
| Fund balances at 13 July 2020 | - | |
| Fund balances at 31 December 2021 | 16,720 | |
| The statement of financial activities includes all gains and losses recognised in the year. | ||
| All income and expenditure derive from continuing activities. |
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WORD OF LIFE MINISTRIES EUROPE
BALANCE SHEET
AS AT 31 DECEMBER 2021
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 9 Net current assets Income funds Unrestricted funds The financial statements were approved by the Trustees on 31 October 2022 Mr G M Cabral Trustee |
2021 £ 17,800 (1,080) |
£ 16,720 |
|---|---|---|
| 16,720 | ||
| 16,720 | ||
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WORD OF LIFE MINISTRIES EUROPE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
Charity information
WORD OF LIFE MINISTRIES EUROPE is a INSERT CONSTITUTIONAL DETAIL.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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WORD OF LIFE MINISTRIES EUROPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.7 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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WORD OF LIFE MINISTRIES EUROPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | |
|---|---|
| funds | |
| 2021 | |
| £ | |
| Donations and gifts | 68,905 |
4 Charitable activities
| Grants paid | |
|---|---|
| 2021 | |
| £ | |
| Ministry expenses | 15,588 |
| Web, hosting & Domains | 1,234 |
| Marketing & Advertising | 24 |
| Bank charges | 400 |
| 17,246 | |
| Grant funding of activities (see note 5) | 33,695 |
| Share of support costs (see note 6) | 164 |
| Share of governance costs (see note 6) | 1,080 |
| 52,185 |
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WORD OF LIFE MINISTRIES EUROPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
5 Grants payable
| Grants paid | |
|---|---|
| 2021 | |
| £ | |
| Grants to institutions: | |
| Other | 17,611 |
| Grants to individuals | 16,084 |
| 33,695 |
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6 Support costs
| Support costs | |
|---|---|
| Support costs Governance costs £ £ Exchange Losses 164 - independent examination fees - 1,080 164 1,080 Analysed between Charitable activities 164 1,080 |
2021 £ 164 1,080 |
| 1,244 | |
| 1,244 |
Governance costs includes payments to the independent examiners of £1,080 for the independent examination fee.
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. One of the Trustees was reimbursed expenses totaling £7,863 during the year, that were all incurred on behalf of the charity.
8 Employees
The average monthly number of employees during the year was:
| 2021 | |
|---|---|
| Number | |
| Total | - |
There were no employees whose annual remuneration was more than £60,000.
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WORD OF LIFE MINISTRIES EUROPE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 9 Creditors: amounts falling due within one year Accruals and deferred income 10 Related party transactions |
2021 £ 1,080 |
|---|---|
There were no disclosable related party transactions during the year.
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