HOPE LEBEDYN TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD 17 JANUARY TO 30 SEPTEMBER 2023 Charity Number. 1201618 HOPE LEBEDYN TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD 17 JANUARY TO 30 SEPTEMBER 2023 Contonts Page Reference and administrative irsfomiat Trustees, report Independent examinerfs iewrt Stalemenl of financial activities Balance Sheel Noles to the financial statements 10 11-14 HOPE LEBEDYN Reference and Administrative Inforniation Trustees P Martin (chaimian} W Gnsham J Lyle JBel S Taylor A Charter {appointed 7 Seplember 20221 {appointed 7 September 20221 (appoinled 7 September 20221 (appointed 7 September 20221 {appointed 7 September 2022) (appointed 28 November 20231 Charity regi•tered number 1201618 Reg18tered ¢)ffice 14 Horsted Square Bellbrwk Industrial Estate Uckfield TN22 1QG Indopondent examlD•rn Jacob C8¥enagh & Skeet 5 Robin Hood Lane Sutton Surrey SM12SW Bankarn Lloyds Bank PLC Westminster Hou88 Swansea Osc Ep)na House Phoenix Way Swansea SA7 9HG WISE Pawnents Ltd. Floor The Tea Buikling 56 Shoredltch High Street London E16JJ Page 1 HOPE LEBEDYN Trustees, Report for the perlod ended 30 September 2023 The Trustees present their Trustees, Annual Report for the period ended 30 September 2023. This report has been prepaTed in a£cordance with the CharIt￿S Act 2011. the Charities Slatement of Recommended Practice {Charitie6 SORP IFRS 102)) and Financral Reporting Standard 102 IFRS 1021. STRUCTUR& GOVERNANCE AND AIANAGEMEKr History Lebedyn 1$ a small rural town wlthin the region of Sumy, Ukraine. The word 'Leted' Iranslates as Swan. Local history says that Tchaikovsky wrote Swan Lake inspired by Ihe beauty ofthe local region al that lime Sadty. much has changed and the town has now been left forgotten. Wrth a pr&war population of around 28,500, unemployment was a staggenng 85%. Light came in the fom of Sergey Ovcharenko {a k¢al paslor} and small congregation who, with very lfftle resources. wanted to stsrt church bringing pract￿al care and the b)ve of Jesus to a town that so desperately needed G￿￿. Hope Lebetyn was bom in 1999 at a meeling with ICC Missions founder Peter Martin and Pastor Sergey OvCha￿nk0, at which great needs of the people were re¥eabJ Around Christmas 1999 aid trucks set off to bnng IMM￿l81e ￿1*f and funds were sent lo purchase an old kindergarten sch￿1 as a mission centre - and so ICC MisS￿nS was bom to bring support to the mission centre that is owned and wn as a charity by the indep8ndent team in Lebedyn, Sumy. In 2009, when ICC merged with Spring Hap4est to become Essenlial Christian. the name charvjed to EC mission$. In 2021 the Essential Christian Board began to consKl8r the best strudure to maintain the work into the future and the following year work began on Setting up a new Trust wth tts (Y•vn trustees. This inGorporated a name change to'Hope Lebedyn". Durlno recenl years the vth had grtr•m S￿nif￿an1￿ with 2 building8 In operation and the le8m reaching people throughout the Sumy region. In February 2022 the fijlkscale invasion of Ru8si8 into Ukraine happened bringing devasth.on to the area. What was al￿adY the r*)orest region In Ukraine had to cope wf(h deeper poverty and the impact and uncertainty of war. The team was enlarged to help reach people and to share the gospe5 message even WKler. In January 2023, Hope Lebedyn became an independenl Charty. with a focus 8018ly on the Wofk in Ukfaine. The work supporting the mtssion centre carried on under the umbrella of Essenttal Christian while everything was pul into place to run efficK8ntty including opening bank accounts. Essential Chnstian also wanted to ensure th8t it gave good strong guidance for the set up for ex￿lIent ehanty govemance. It started to be fully independenlly operational from September V 2023, towards Ihe end of the financial year. Today the Mission Diredor 18 Pastor Bohdan Timchishyn and he ha$ a leam of 8 other8 plus many volunteérs to execule t￿e minislry. The war has pbjnged local families into extreme poverty, increased crime rates and put fvrther strain on the locd infrastructure. There is unprecedented demand for aid and support in Lebedyn and the Sumy reg￿n. The mission of Hope Lebetyn is to provide SLSPPOrt to the local church in delivering not onty essenth91 aid. but the life changing Gospel of Jesus. The church and mission centre with all tts aCtiv￿e8 have beco￿￿ a beacon of IKJht and hope for those who INe in the area. Many INes have been Iransfomied through the aKI and the lif&saving power of the Gospel. The light of Christ shineg in the darkest of platss. Governing Do¢um•nt Hope Lebedyn is a Charttable Inccwrated Organi5ation (CIO) whth was registered on 17 January 2023 (charity regIStratK￿ number. 1201618). Rocrullment and appointment of Trusto08 IDife¢torsl The are CU￿entlY 6 truslees of Hope Lebedyn. The 5 original trustees were selected upon past involvement, fulure needs and their experience of both Irusl govemance and the location of operation. Since then, a further tmstee, Alan Charter has been appointed. Alan had been known to some of the board and his wide knowledge of children and youth chartttes working wf(hin Ukr8ine. as well as his professional qualrfication in business aminrstration would add skills to the board to better and further its work Alan was invrted to attend meth'ngs, had detailed conversations viilh the Chair of the trust Page 2 HOPE LEBEDYN Trustees. Report for the period ended 30 September 2023 and then was fomalty asked at a toard meeting to be w1 of the board. AJI twslees receive regular updates for information and training purposes and since the end of the financial year som8 of the trustees have attended a cOu￿e run by MacLellan Trust for good govemance of charities. Forthe future all new trustees wlll go through a process of interview, read the CIO goveming document and any financial reports and accounts as Y￿1 as ￿ng direAed to the (wrrent charity commission publications for new trustees. They wll abo attend up to 3 trustee meetings to be in attendance with no voting nghts so as to establish surtabilty. Other meetings will be wovided if ￿ueSted to estsblish suitabilty. Organlsational 8tructuro The Trustees carry the begal and financial reSp￿s￿li1￿ for the chanty and establish the vision and mission while Mon[tc￿ng ils adivities and wltaes. The Board meets 4 times overthe year. In addition, there is a Finance Committee which also meets 4 times a year prior lo any board meeling. 11 has 4 members wh￿h includes the Executive Director. Treasurer. a board member and an independènt person trained in financ8 to help bn.ng detailed scnrtiny to the accounts. The trustees give delegated aUth￿ty for the day-today running of the trust to the Executive Director under contract. The Executive Director is wponsible for all operational matters including furKlraising, day-lo-day finaneA, communication$ both with donors, partners and wrthin the Ukraine. The Charity seeks to give grants lo projects that take p*e wthin the work of Sumy Revival Mission Centre and through this reg￿n of Ukraine as required. Grant maklng pollcy All grants over $2,000 need to be approved by 2 or more trustees and any over $10,000 need full board approval. All payments require dual S￿nature from either the treasurer and one other trustee. Réceipt and reports of grants gNen are kept C￿ file. Rl•k m•nagoment The Truslees believe they are aware of the major risks to which the charity 1$ exposed and that controls ar8 in place to mitigate them. A Risk Register is being created and the Trustees aim for robust management overslght. The Trustees consKler the principal risks and uncertainties facing the charity, and the plans and str8tegie8 for managing Ihese risks, to be.. The war bèhveen Ukraine and Russia and Ihat th8 Surny RevNal Mission Centre can continue its a¢tivthes. Work has done to look at how the ministry can witinue in times of conflict getting closer. This is monitored every month by the Executive Director. The trust can gNe granls to olhers operating wilh the same mission and ministry principles enabling the trust to continue its support of the church in this needy area. The Sumy Revival Mission Centre is compliant to any national18ws surrounding activities with child￿n and vulnerable adults. Training is gNen annualty to 811 volunteers and te8m by the Mi$$ion Di￿or in Sumy. OBJECTIVE ANO ACTIVITIES The focus of Ihe charity is to fvrther such charitable pur￿￿e$ for the publlc benefft in Lebedyn and elsewhere in Ukraine that comprise: the advancement ofthe Christian faith by supporting the outreach and mission of Sumy Spiritual Revival miss￿n,. the relief of thos6 in need by reason of youth. agè. ill-health. disabilty financial hardship or other social or economic disadvantage. Hope Lebedyn is a grant making charity to support Christian ministy in mainly the Sumy region of Ukraine. The executive director meets weekly on secure vtdeo cOnn￿tIon to discuss and assess the Page 3 HOPE LEBEDYN Trustees, Report for the perlod ended 30 September 2023 needs that aré known and to have reports on how actiVits￿ have been achieved. Photographs are sent so that a weekly prayer UFthte sheet can t* sent to loyal prayer supporters of the work $0 all donors and prayer partners wi see how funds are being used and to mob'vate them lo pray. Publlc benefrt The Trustees believe they have complied with the duty in S￿lI0n 17 of the Charities ALt 2011 to have due regard to the public benefft guKlan￿ published by the Charity Commission. All the activrti8s of the Charity were urKlertaken to further its charitable PUTFM)8es for public benefrt. Prfn¢lpal Fundlng Sour¢e8 The main source of income for the chaTty is from tnjst grants and indivhjual donors. ACHIEVEMENTS AND PERFORMANCÉ Previously Hop6 Let*tyn existed as a mtssion actNty 8$ part of the charity Essentl81 Christian (Charity Number 1126997). Dunng the Fyev￿8 years Peter Martin, the Group CEO. gave oversight to this ministy. Following his departure from Essenli81 ChristHn due to seMi•rets'￿ment, ttwas decided by the trustees thal Hope Lebedyn shouhj b￿￿& 8 charty due lo rts s￿n￿cant grty•th owing to the conflict ttheen Ru$8ia and Ukraine. The Charity was set up on January 1P 2023. The EC board were kept apFxalsed of all deasions in the creation ofihe new chanty. EC helped lo manage gifts and grants and supported the work wrth other managemenl fvncts'ons until bank accounts were active and the Essentlal Christian board was satisfied that all appfopnate govemance wa5 in place. Ouring thi8 period day-to4ay decisions were made by the Hope Lebedyn board and then ratified and supported by the chair of Essenlial Christian. The grants sent were also agreed by both Chairs. This was In place unlil Seplember 9° 2023 when all funds were then tran8feffed to the new cherty. Essential Christian would continue to manage under contrxl some ￿1¥11￿ to support the in the fLrtur8. During the pericMI October 1 until the lime of handovér the grants r￿eNed to Hope Lebetyn totsl8d £151,041 and the amount of granl g5ven £91.601. The Sumy Revival Centre through thty past year has achieved much work especially with the poor, elderty, vulnerable, children, youth and needy because of the war. Every activty is done with thé Christian message being expla￿ed or a Bible or Christian lrter8ture being given. Everything is freely given to ensure that all publt¢ are benefftted. They have supported other churche8 and small ministries. orphanages and schcols throughout the region. Other highlights are: Weekty church services held in diTrult Circumstsnces. English classes every Saturday. A children's dub every Saturday which is open to all, wcK1ucing fun games and uafts and with interaction *￿nd Ihe Bible. The bakery has been a portKular highlyht distributlng over 10,000 baves, with a hope lo bake around 20.ow h)aves thi8 next year- war pennrtling. Many have come to faith through this ministry. 26 people in the puppet theatre ministy, with 3 teams prcMlu¢ing 50 sh(r•￿ last year In camp8. schools and orphan4es. Weekly Youth work and clubs- numbers vary due to sirens or whether families have fied. 20- 50 young people attend every week provmling one of the only yOLrth clubs in the county. Page 4 HOPE LEBEDYN Trustees, Report for the period ended 30 September 2023 Purchase of 14 new laptops to give computerworkshops for pensioneTS and teen$. These will also be used for the Bible college when rt can open. Estsbli$hment of a Bible college prc*Jramme but ￿aitIng its start due to the ongoing war. Christian teen groups llounshed with 2 home groups of young people seeking to study to get to kn¢)w more about Gcwj. An estimated 50,1XK) meals arKI 20 tons of aid have been distributed. A sewing ministry that makes bedding to give to refugees or the k)cal hospilal. Regular visits to care homes and pla￿ for the disabled to give help, taking aid, bedding. incontinence pads and fresh bread from the bakery. Regular visits to the hospital to be wtth the children warting for opefalions or who have been abandoned, and donating bedding for th¢)se that cannot take their own into hosprtal. The team ￿n0Vated an underground bomb shelter which is compliant for use when holdlng gatherings and can tske around 100 people comfortabty. Distributed around 10,000 nappies for chiklren. Part-built a new playground creating a safe space fcrf families when sirens not 80unding. Grants to purchase a 7-8eater vehicle and a mlnlbus whlch ar8 better Suited at this time for the needs in the area. A grant to help purchase an aparknent to h￿se team members as many of the team have come to i￿n from dlfferent r8gN)n8 of Ukraine. 7 weeks of camps and many other wial events reochlng hundreds of familiès and 600 children at Christmas. Support for a Pastor of a churd) in Samotoivka who li￿ and woths in extreme condttion8 near lo the Russian border. 1,000's of Bibles and Christian Itterature distributed, especially the Jesus Story book Bible which Ihe children realty enjoy. Grant to supported 9 team memt¢rs doing the work there. Much ofth8 work that has bèen done has been lrfe changlng and creatèd a Itfeline for many. The work the team at the Sumy Revival MisS￿n Centre and those tlw partner with is exceptional given the challenging Situat￿ they are operating and INing under. Weekly updates of all activities are available to viewwith pl￿u￿ on the Hope Lebedyn website News Ho e Lebed Related parti88 There is a link with Essential Christian through Joe Bellett. who is a trustee of Hope Lebedyn and Chief Operalions Officer of Essential Christian. A¢cordingly, he does not take part in decisions about the seNice agreement wrth Essenlial Christkin Page 5 HOPE LEBEDYN Trustees, Report for the ￿riod ended 30 September 2023 FINANCIAL REVIEW Th8 charivs onty source of income is from donatK)ns. The Board are grateful to every trust and individual donor. be thffy one off gifts, or regular monthly donations. who gave to us directly in the financial year. along wrth our start off grant of £355,730 from Essential Christian. DonatM)ns for Ihe year came to £359,331, making a SwJnifi￿nt contribution to maintaining Hope Lebedyn for the future. Expendrture was £30,969. However. this covers onty payments made over pert of Septembe4 after the fund balance was transferr&J from Essential Christian The result forthe year was fund$ cO￿￿d foN4ard of £328,362. The Board regularty considers the d￿rty's activities in line with rts income and explores new avenues for large grant furKls each year to bdstsr up its reguLgr dOnat￿n base. Ro8oni The charity's prackn is to hohl in resep•e at least suftient to cover three month8 of usual outgoing8 and future planned expenditure. AI 30 September 2023. the charity had resep488 of £328,362, of wh￿h £22,998 was restricted, £85,000 is currentty held back for post war repairn to the rwf of the Sumy Revival Centre d8m8ged the beginning of the c(￿flict, £10.000 fcK ts Bibb8 College to start and £210,364 left unrestrlcted or unallocated. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are reswnsible for preparing the Trustees, Rewrt and the financial slatements In accordance with applicable law and Unrted Kingdom Accounting Sl8ndard8. including Financial Reporting Standard 102. The Financial Reporting St8nd8rd 8ppliGabl8 in the UK and Republic of Ir&18nd {United Klngdom Generally Accepted Ac￿UntIng Prthe). Company law requires the Irustees to p￿pare financ￿1 slalements for each financial period which give a true and fair vifftv of the state of affairs of the charitable company and of the income and expenditure, of the charltable company for that In preparing these fina￿la1 statements, the trustees are required to.. select suFtabb accounting policies and Ihen appty them consistenty", observe the methods and winciples in th8 Charilies SORP. make judgments and accounting estimales thal are reasonable and prudent.. Stale whether applicable UK Accounting Standards have been followed. subject to any materlal departures disclosed and explained in the financial statements. and prepare the financial statements on the going concem l>asis unths rt is inappropriate to presume that the charitable c￿￿panY will contwiue in business. The trustees are resp)nsible for maintaining proper accounting records which disclose with reasonable accur8CY at any time the financial position of the charitable company and enable them to en$ure that the finan¢i81 statements compty with the Charrti&s Acl 2011. They are also responsible for safeguarding the assets of the charIlab￿ company and he￿ for taking reasonab￿ steps for the prevention and deteCt￿n of fraud and other 1rrtyuk8rit￿s. Page 6 HOPE LEBEDYN Trustees, Report for the period ended 30 September 2023 The Trustees report was approved and was sigra on behaw ofthe Trustees by". Peter Martin Chair of Trustees Dale.. io" 201 Page 7 Independent examinerfs report to the trustees of Hope Lebedyn I report to the charity Iruslees on my examination of the accounts of Hope Lebedyn (the Charity) for the period endgj 30 September 2023. Responslbllltlos and basis of report As the charity's trustees you are responsib￿ for the preparath)n of the ac£ounts in accordance with the requirements of the charl1￿ Act 2011 {Ihe A¢V). l in ￿SpeCt of my examination of the Charity's xcounts as carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Oirections given by the Charity Comfflission under SectiC￿ 145(5)(b) of the Act. Independent •xamIne￿9 Statsmont Since the Trust'$ gross incorne exceeded £250.OLh) your examiner must be a member ofa body listed in section 145 of the 2011 Act. I confinn that l am qualified to undertake the examination because I am a member of the Instrtute of Chartered Accountants in England and Wales. which is one of the listed Lh)die8. I have completed my examination. I confinn that no mateTi81 matters have come to my attentr'on in connection with the examination giwng me cause lo believe that in any material respect.. accounting records were not kept in respect of the Trust as required by section 130 of the the account$ do not accord wrth those re¢cYd$', or the accounts do not compty wrth the applicabl8 wuirements conceming the forni and content of accounts sel oul in the Charities IAccounls and Report) Regulations 2008 other than any requirement that the accounts give a Irue and f8ir vl8w' which is not 8 matter considered as part of an independent examination. I have no concems and have come across no other matters in connection with the examination lo which attenlion should be drawn in this rewt in order to enable a proper understanding of the accounts to ￿ reached. Paul Newton FCA Jacob Cavenagh & Ske8t 5 Robin Hood Lane Sutton Surrey SM12SW Date.. 12 June 2024 Page 8 HOPE LEBEDYN Balance Sheet as at 30 September 2023 2023 Notss Curront assets Cash at bank and in hand 340,607 Creditorn.. Amounts falling due within oné year 112.2451 Net current assets 328,362 Not as$•ts 328,362 Fund8 Restricted Funds Unrestricted Funds 22,998 305,364 Total funds 328,382 The notes on pages 11 to 14 fom part of these financial statements. These financial slatements were approved by the board of trustees and authorised for issue on 10 June 2024 and are &gned on behaff of the board by.. Peter Martin Chair of Tru8tee8 Page 10 HOPE LEBEDYN Notes to the Flnancial Statements for the period ended 30 September 2023 Accounting policios Hope Lebedyn is a charitable incorporat8d organiSat￿n. The &Jdres$ of the registered office is.. 14 Horsted Square, Bellbrook Industrial EsLite. Uckf*kl TN22 1QG. Ba81$ of preparall¢)n The financial statements have been prepared under the Charities Act 2011, and in accordance with the Charities Statement of Recommended PraCt￿e {charit￿S SORP IFRS 10211, and Financial Reporttng Stsndard 102 IFRS 102). The financial statements are prepared in sterling, rounded tothe nearest pound. The thatity 18 a Public Benefit Entity as defined by FRS 102. Assets and liabilitEs a￿ initially recogni88d al historical cost or transactin value unless otheThvise stated in the relevant accounting polw. 1.2 Golng concorn At the tlme ofapproving the finanaal statements. the Truslees have a reasonable eXF￿atIon that Ihe charty has adequate rewurces lo continue in operational existen￿ for Ihe foreseeable future. Thus the Trustees continue to adopt the g￿n9 concem basis of accounting in preparing the financial ststements. In¢om• All income Is Tecognlsed once the Charity has entitlement to the income. tt 15 probable thal the income will be receN6d and th8 amount of income receivable can be measured rdiably. expendltu All expenditure is accrued as soon as a liabllty Is considered probable, and has been classlfled under headings that aggregate all costs related lo the category. Expendlture on Charitab￿ activities incuTred on directty undertaking the actsvitJe$ which further the Charity's objectives, as well as any aSs￿lated support costs. Cash at bank and In hand Cash at bank and in hand includes cash and short4•￿ highty liquid investments with a short matuiity of three months or less from the date of acquisrlion or oKening of the deposit or simik8r account. Croditors and provlslon• Creditors and provisions are recognised where the charity has a present obligation arising from 8 P88t event that will probably result in the transfer of fvnds lo a third party and the amount due to settle the obligation can be me8sured or eslimated ￿1iabty. Credttors are recognised al their Sett￿ment amount. Flnanclal Instruments The Charity only has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic finanaal instruments are initially recognwl al transaction value and subsequenlty measured at their settlement value. Page11 HOPE LEBEDYN Notes to the Financial Ststements for the p8riod ended 30 September 2023 Accountlng policies {continued) Fund accountlng General fijnds are unrestricted fvnds which are available for use at the discretion of the Truslees in furtherance of the general Obl￿NeS of the Chanty and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance wrth Specffic reStr￿tionS imposed by donors or which have been raised by the Chanty for part￿ulaT purposes. Thè costs of raising and administering such funds are charged against the specific fund. The aim and use of rest[￿ted fund is set oul in Ihe notes to th8 financial statements. Accounllng 08t6mats8 and judgemonts There were no slgnificant e81imates and judgements made by the chanty. Expendlturg on cl￿rItabl0 actlv5t595 2023 Totsl Unro•lrfctsd R08tr1cted Grants Management charge Consutsn Independent Examlnatlon Accountan Bank charges Foreign exchange loss 17,860 8,103 17,860 8,103 2,000 1,200 960 43 803 2,000 1,200 43 803 28,969 2,000 30,969 The grant$ were all made to Sumy Spiritu81 Revfval Centre, Ukraine. The Independent Examiner was paid £1,200 for the independent examinatK)n and £960 for accounts preparation. Page 12 HOPE LEBEDYN Notss to the Financial Statements for the perfod ended 30 Septembor 2023 Creditors". Amounts falling due wlthln on• year 2023 Trade creditors Accruals 10,085 2,160 12,245 Funds Incomo Expondlturo Balance at 30 8oPtember 2023 Unro•trlcted fiFnd• General funds 334,333 128,969) 305,364 Rutrlcted funds Consultancy appeal Christm88 8ppeal 24.8￿) {2,000) 22,800 198 24,998 12,0001 22,998 Total fvnd• 359,331 {30,969) 328.362 Consultancy.. The chaimi8n h88 raised Fersonal SUPFMJrt for his consultancy charye lo the Chanty. Chr18trna8 appeal.. An appeal wa8 made to cover costs of visrting orph8n4es. schools and hospitals with gifts for chiklren. Page 13 HOPE LEBEDYN Notes to the Flnanclal Statements for the period ended 30 September 2023 Analysis of not assets between funds Unrostri¢tod Rostricted Total Fund balances at 30 Septemter 2023 a￿ rewesented by: Cu￿ent assets Creditors due within one year 317,609 {12.245) 22,998 340,607 {12,2451 Total net assets at 30 September 2023 305,364 22,998 328,362 Related party tran8actlons During thè period. P Martin. the chairman. was paid £2,000 for his consu￿ncY Ser¥￿e8. This is pennittéd by the con8trtution. No other trustees r￿e1Ved any remuneratK)n or other beneffts. No I￿￿tee9 were reimbursed expenses In the p8rK)d. There were no other related paty transactions during the per￿d. Page 14