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2022-03-31-accounts

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

Charity number: 220466

EVANGELICAL LUTHERAN CHURCH OF ENGLAND

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND CONTENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Charity Information 1
Trustees' Report 2-6
Independent auditor's report 7-9
Statement of financial activities 10
Balance sheet 11
Cash flow statement 12
Notes to the financial statements 13-25

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND CHARITY INFORMATION

Trustees Reverend G Samiec Chairman
Reverend J Ehlers Vice Chairman
Mrs D Rosser Secretary
Dr C Lumley Treasurer
Reverend J Kriger
Mrs M Cowie
Mr R Thoelke
Key management personnel
Reverend G Samiec Chairman
Reverend J Ehlers Vice Chairman
Mrs D Rosser Secretary
Dr C Lumley ELCE Treasurer and Principal,
Westfield House
Dr J Humann Preceptor, Westfield House
Charity number 220466
Registered office 28 Huntingdon Road
Cambridge
CB3 0HH
Congregations Luther Tyndale, Kentish Town Resurrection, Cambridge
St Andrew's, Ruislip Redeemer, Harlow
Christ Church, Petts Wood St Columba, East Kilbride
St Paul's, Borehamwood Good Shepherd, Coventry
St Peter's, Plymouth Our Saviour, Fareham
St David, Cardiff Ascension, Brandon, Suffolk
Auditors Chater Allan LLP
7 Quy Court
Colliers Lane
Stow-cum-Quy
CB25 9AU
Bankers CAF Bank HSBC Bank plc
25 Kings Hill Avenue 63-64 St Andrews Street
Kings Hill Cambridge
West Malling CB2 3BZ
ME19 4JQ
Cater Allen Private Bank Cambridge & Counties Bank
9 Nelson Street Charnwood Court
Bradford 5b New Walk
BD1 5AN Leicester
LE1 6TE
Solicitors Streeter Marshall Anthony Collins
12 Purley Parade 134 Edmund St
High Street Birmingham
Purley B3 2ES
Surrey
CR8 2AB

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and the audited financial statements for the period ended 31 March 2022.

Legal status

The Evangelical Lutheran Church of England is an unincorporated association and a registered charity. The governing document is a written constitution.

In September 2019, the following resolution was passed by the General Synod of the Church meeting in conference:

“Be it resolved that the ELCE become a Charitable Incorporated Organisation of member CIOs from the following:

individual congregations of the ELCE; and other CIOs which operate as auxiliaries of the Church (for example and not limited to education and social care).

Be it further resolved that all the Governing Documents pertaining to the Church, and to the charities, and to the relationships within the ELCE CIO be presented at the next Synod for adoption.”

Work is ongoing to prepare new governing documents so that applications for CIO status can be made by ELCE, its member congregations and other auxiliary bodies.

Objectives and structure

The Church exists to spread the gospel of Christ. At the beginning of the financial year there were 12 congregations throughout the United Kingdom, undertaking to spread the gospel. We acknowledge that Holy Trinity, Tottenham, although it has a separate charity registration (1179023) and therefore submits separate accounts, remains a member of the ELCE Church Body. Nine congregations have their own pastors (full-time or part-time) and three congregations have the support of locum pastors from adjacent congregations. Seven congregations support missions. The Church continues to provide theological training through Westfield House and runs an internet radio station, Lutheran Radio UK (LRUK).

Each congregation has local independence with regard to the running of the Church and each congregation is represented at General Synod where policy decisions and protocols of the whole Church are discussed and agreed which each congregation then follows.

Trustees

The trustees are members of the Executive Council, which is elected by the General Synod of the Church. The members of the Executive Council during the year were:

Reverend G Samiec Chairman Reverend J Ehlers Vice Chairman Mrs D Rosser Secretary Dr C Lumley Treasurer Mrs M Cowie Mr R Thoelke Reverend J Kriger

Trustees' responsibilities

As trustees of the charity, the Executive Council is responsible for the preparation of financial statements which give a true and fair view of the state of affairs of the charity and its incoming resources and application of resources for the year. In preparing these financial statements, the trustees are required to:

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Risk management

The trustees examine on a regular basis the major risks that the charity faces and have developed systems to monitor and control these risks and to mitigate their impact in the future.

Three major risks which have a probability of occurring with serious consequences, in spite of mitigating factors, are highlighted in the risk register:

1. Governance Structure and Control Methodology

The Trustees recognise the need for ELCE to ensure that the governing body has knowledge and skills that align with future strategic challenges and that, more broadly, a new strategic plan is required. This is an issue that will need to be addressed and resolved as the new organisational design emerges. The Trustees have therefore agreed to instigate strategic planning work. There will be similar challenges for all new CIOs as they are created.

2. Operational Issues: Health & Safety

The lack of a fully integrated H&S management capability risks exposure to breach of statute or risks harm to individuals in the organisation or members of the public visiting ELCE sites. At its Synodical meeting in October 2022, ELCE will appoint a H&S Compliance Officer who, together with members of a new Health & Safety Committee, will conduct a full audit of existing policies to identify any critical gaps and ensure that safety plans are in place across ELCE and affiliated groups by March 2023.

3. Workforce Issues

There is a risk that ‘tyranny of the urgent’ will result in burn-out, loss of morale, failure to achieve the charity’s potential and poor service delivery. The Executive Council plans to go out to tender for HR support so that appropriate and compliant HR programmes, policies and documentation is put in place.

Fundraising

The Evangelical Lutheran Church of England engaged in fundraising primarily in the form of receiving free-will offerings/donations, some of which were gift-aided, from those attending our worship services. On occasion we have publicly invited ELCE members to consider the option of making a bequest to the ELCE in their wills. We did not contract the service of any professional fundraisers as defined by section 58 of the Charities Act 1992. While we publicly invite an offering at every service and Lutheran Radio UK and Westfield House invite donations, we do not engage in persistent fundraising or intrusive fundraising practices with any of our donors, including vulnerable people. We do not use the Means of Grace to fundraise. Our fundraising practices are ethical and in the spirit of the Biblical principles of stewardship. No complaints were received about our fundraising practices during the year under consideration.

Public benefit

The trustees have considered and referred to the Charity Commission's guidance on public benefit, when reviewing the charity's aims and objectives and in planning future activities. The spiritual goals of the Church are beyond empirical assessment but the Church continues to undertake the mission of the Church and support the congregations in the same goal. Nevertheless when asked to comment

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

on the achievements and performance of the Church according to the Charity Commission’s criterion of public benefit, specifically with regard to the advancement of religion, the ELCE notes the following:

Governance

The trustees meet as the Executive Council at least 6 times per year to review the objectives, structure and management of the Church. Trustees monitor the performance of funds, Church operating cost centres, and congregations much of which is managed not by the trustees but by designated persons or committees who are operating under congregational constitutions and by-laws or church policies.

Trustees are inducted and trained through receipt of historical material and discussions with the Chairman and Secretary.

The key management personnel of the charity as listed on page 1 are in charge of directing, controlling, running and operating the charity on a day to day basis. All members of the Executive Council give of their time freely and no trustee received any remuneration in the year for their work as trustees. Details of trustees’ expenses and related party transactions are disclosed in Note 21 to the financial statements.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. Salary scales are aligned to the Annual Survey of Hours and Earnings (Table 1.1a) for ordained clergy and to local salaries for non-ordained staff.

Voluntary Help and Donations in Kind

All the congregations rely on the voluntary help of many people, including their treasurers, without whose generosity the congregations could not function.

Land and Buildings

The Church, including the congregations and the theological college, operates from buildings that are held in trust for the Church by the Evangelical Lutheran Church of England Trust Limited ('the Trust'). The Trustees have been advised that the Trust is the custodian of these properties and ELCE (Church) is the beneficial owner. Accordingly, the property and associated income and expenditure are recorded in the ELCE (Church) financial statements, with the exception of two properties in Sunderland for which the beneficial ownership was transferred to the Trust, as of 1 November 2020.

ELCE from time to time benefits from funds provided by the Trust to the Church for central running costs and special projects (for example, the legal costs of the restructure work). The terminology of 'loan' has been used for these transactions between ELCE and the Trust as, historically, the intention was that the money would be put back into the Trust. The Trustees of the Trust have now confirmed they are not seeking repayment of these amounts, and therefore the amounts previously recorded as loans were in fact grants to ELCE, which has the same objects as the Trust.

The Trust also, from time to time, provides concessional loans to member congregations of the ELCE. The majority of these loans bear interest and are repayable by instalments. No new loans were received in the period under review.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Market value of land and buildings

The Council considers that the market value of land and buildings, all of which are in use for charitable purposes, is considerably higher than book value. It is estimated, without carrying out a professional valuation, that the market value could be in the region of between £15 to £25 million. However, the Council does not consider it of value to obtain a professional valuation. As a guide, the buildings alone are insured for more than £20 million.

Financial Review

The Church had net surplus of £288,194 in the year (2021: net deficit of £68,264). At the end of the period net assets totalled £7,633,660 (2021: net assets £7,345,466).

At the January 2020 meeting, the Trustees agreed that funds should be set aside to cover the legal costs of the restructure. In the first instance a total of £40,000 has been allocated to this fund, comprising £15,000 designated from ELCE Church and Restricted donations of £25,000 from ELCE Trust Ltd.

Congregations

The Executive Council has been advised that the member congregations are not subsidiaries of the Evangelical Lutheran Church of England, but are autonomous bodies. Work is ongoing to prepare new governing documents so that applications for CIO status can be made by ELCE, its member congregations and other auxiliary bodies. Until then the activities and assets and liabilities of the member congregations and other auxiliary bodies are included in these financial statements, with the exception of Holy Trinity which prepares and submits its own accounts to the Charity Commission for England and Wales.

The non property and non bank assets of the congregations are not included in the balance sheet as they are inalienable and the cost of attempting a valuation would be burdensome. All assets are held for the charitable purposes of the Church.

The congregations had an overall surplus of £4,323 in the period (2021: surplus £5,858).

Reserves

The Trustees intend to hold sufficient free reserves to cover 6 months of net operating costs, estimated at £25,000 per month.

The unrestricted general fund stands at £476,961, designated funds at £6,784,963 and restricted funds at £371,736. Total funds at the year end are £7,633,660. Tangible fixed assets now total £6,482,121.

Connected Charity

The Evangelical Lutheran Church of England Trust Limited is connected to the Evangelical Lutheran Church of England due to the fact that both charities have as their object the spread of the gospel and the Executive Council members are Trustees of the Evangelical Lutheran Church of England and Directors of the Trust. The charitable company has agreed to meet the liabilities of the Evangelical Lutheran Church of England in the event that the Church is unable to meet them itself.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Plans for Future Periods

The Trustees are committed to ensuring that the new structure is finalised and implemented so that the charity can continue to focus on its objective of spreading the Gospel, whilst complying with all UK legal and charity requirements.

Pension Arrangements for Pastors

As part of the restructure activities, the Trustees conducted a review of the current Employer’s Pension arrangements – a ‘defined contribution’ scheme with The Pensions Trust – for pastors, which showed that the provisions, fees etc are suitable compared to other employers’ pension schemes. However, the review of individual pastor’s pension arrangements by an independent financial advisor established that for most of the current pastors there will be a shortfall between the projected income from their pensions and their income requirements. The main reason for this is that, as Ministers of Religion, ELCE pastors have been required to live in tied housing and their salaries have been adjusted downwards to take this into account (similar to other Christian denominations in the UK). The Trustees are therefore considering ways to assist pastors to move from tied housing in retirement and have reviewed the provisions made by other denominations for their ministers. Three provisions are made by other denominations: increased employer contributions to pension funds; provision of retirement housing at affordable rents; equity sharing schemes to assist with house purchase. At the ELCE Extraordinary Synod held in May 2021 it was agreed that the terms of the Retirement Reserve Fund should be amended and additional payments be made into this fund. It was further agreed that the net rental income from one of the ELCE properties, Okemore Gardens, would be paid into the Retirement Reserve Fund beginning with the net rental income for 2020-21. In addition to increasing the Retirement Reserve Fund, the Trustees are considering the possibility of providing affordable rental housing for retired ELCE Pastors via ELCE Trust Ltd, in line with its objects.

At the ELCE Extraordinary Synod held in May 2021 it was also agreed that the Retirement Reserve Fund will be closed to new employees, and alternative arrangements will be put in place.

Site Re-developments

Two congregations are investigating the possibility of redeveloping their sites.

Auditors Chater Allan LLP have expressed their willingness to be reappointed as auditors.

Approved by the Trustees on 21[st] January 2023 and signed on their behalf by:

Trustee Cynthia Lumley

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EVANGELICAL LUTHERAN CHURCH OF ENGLAND FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of Evangelical Lutheran Church of England for the year ended 31 March 2022 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees' annual report , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EVANGELICAL LUTHERAN CHURCH OF ENGLAND FOR THE YEAR ENDED 31 MARCH 2022

Other information (continued)

We have nothing to report in this regard.

Matters on which we are to required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and charity specific experience, through discussion with the Council of Members (as required by auditing standards), and from inspection of the charity's regulatory correspondence, and we discussed with the Council of Members the policies and procedures regarding compliance with laws and regulations.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF EVANGELICAL LUTHERAN CHURCH OF ENGLAND FOR THE YEAR ENDED 31 MARCH 2022

Auditor’s responsibilities for the audit of the financial statements (continued)

We communicated identified laws and regulations throughout our team and remained alert to any indication to noncompliance throughout the audit; the audit team are deemed both competent and capable of identifying noncompliance with rules and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the charity is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the charity is subject to other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the charity. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid19 on the risk of fraud. We did not identify any instances of fraud during the course of our audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the charities (Accounts and reports) regualtions 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Chater Allan LLP Chartered Accountants & Statutory Auditors 7 Quy Court Colliers Lane Stow-cum-Quy CB25 9AU

31 January 2023

Date: ….................................

Chater Allan LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other Income
4
Investments
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net (expenditure)/Income before transfers
Transfers between funds
16
Net movement in funds
Reconciliation of movement in funds:
Total funds brought forward
Total funds carried forward
Net Income/(expenditure) before investment
gains/losses
Net realised and unrealised gains/(losses)
on investments		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
291,095
10,783
301,878
279,023
375,823
21,479
397,302
345,329
656,734
-
656,734
270,019
235
20
255
75
1,323,887
32,282
1,356,169
894,446
992,006
75,969
1,067,975
1,244,866
992,006
75,969
1,067,975
1,244,866
331,881
(43,687)
288,194
(350,420)
-
-
-
282,156
331,881
(43,687)
288,194
(68,264)
(68,966)
68,966
-
-
262,915
25,279
288,194
(68,264)
6,999,009
346,457
7,345,466
7,413,730
7,261,924
371,736
7,633,660
7,345,466

All activities relate to continuing operations.

The notes on pages 13 to 26 form part of these financial statements.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
14
within one year
Net current assets
Creditors: amounts falling due
15
after more than one year
Net assets
Charity funds
Restricted funds
16
Unrestricted funds
Designated funds
16
General Fund
16		 Total
Total
2022
2021
£
£
6,482,121
6,502,629
6,482,121
6,502,629
544,459
189,737
956,346
985,351
1,500,805
1,175,088
195,966
175,209
1,304,839
999,879
153,300
157,042
7,633,660
7,345,466
371,736
346,457
6,784,963
6,604,854
476,961
394,155
7,633,660
7,345,466

The financial statements were approved by the Trustees on 21st January 2023 and signed on their behalf by:

…………………………………………………… Dr C Lumley Trustee

The notes on pages 13 to 26 form part of these financial statements.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Total
2022
£
Cash flows from operating activities:
Net cash provided by operating activities
(23,123)
Cash flows from investing activities:
Interest from investments
255
Purchase of property, plant and equipment
(5,196)
Net cash provided by investing activities
(4,941)
Cash flows from financing activities
Interest paid
(941)
(29,005)
985,351
956,346
Cash at bank and in hand
956,346
956,346
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net (expenditure)/income for the reporting period
288,194
Adjustments for:
Depreciation charges
1,752
Gift of operating asset
23,952
(Gains)/losses on investments
-
Interest from investments
(255)
Interest paid shown in financing activities
941
(Increase)/decrease in debtors
(354,722)
Incease/(decrease) in creditors
17,015
Net cash provided by operating activities
(23,123)
Summary of the cash and cash equivalents at the end
of the reporting period
Cash and cash equivalents at the end of the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Change in cash and cash equivalents in the reporting
period		 Total
2021
£
76,854
75
-
75
(1,199)
75,730
909,621
985,351
985,351
985,351
(68,264)
1,358
420,000
(282,156)
(75)
1,199
(7,771)
12,563
76,854

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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) (2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and UK Generally Accepted Accounting Practice.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Evangelical Lutheran Church of England meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the entity.

1.2 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 company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.3 Income

Donations and legacies are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the charity for its use, these are capitalised at the estimated fair value at the date of the gift and included under income. Assets given for distribution by the charity are received as income when distributed and stated in the accounts at the trustees’ estimated market value at the time of receipt.

The various congregations hold fundraising events throughout the year and costs associated with these events are netted off. Consequently, the figure in the accounts is shown net of these costs. In the opinion of the Trustees, the gross income and expenditure are not materially understated.

13

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1.3 Income (continued)

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

The charity benefits from many voluntary hours and unclaimed out-of-pocket expenses. It would be impossible to place a value on all these gifts in kind for which the charity is extremely grateful.

All the congregations rely on the voluntary help of many people, including their treasurers, without whose generosity the congregations could not function. To place a monetary value on the time donated by volunteers would be an onerous task for the Trustees and therefore has not been attempted.

1.4 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.

The majority of costs are directly attributable to specific activities. Staff costs are allocated on the basis of time spent by staff on each activity. Other costs, including support costs are charged directly to the activity when incurred.

1.5 Going concern

The Trustees have carefully considered the cashflow forecasts for future periods using all available information. They have taken steps to ensure that the funding available from the Evangelical Lutheran Church of England Trust Limited to the charity is adequate to meet the estimated cashflow requirements. The Trustees have a reasonable expectation that the charity has adequate arrangements in place to continue in operation for the foreseeable future. For this reason they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6 Tangible fixed assets and depreciation

All fixed assets acquired for the Charity's own use are capitalised at purchase price or cost of production, or at estimated value at the time of gift where received by way of gift. No depreciation is provided on freehold land. Where the charity adopts a policy of maintaining properties to a standard that prolongs their lives and enhances their residual value, the trustees consider any depreciation arising to be insignificant and the properties are not depreciated. Where impairments occur, these are provided for. Otherwise depreciation is provided at rates to write off the excess of cost over residual value amount, over estimated useful lives as follows:

Fixtures & fittings 10 years Office equipment 4 years

14

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.7 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.10 Pensions

The charity makes contributions to defined contribution schemes, which are accounted for as they are paid.

1 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

15

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. INCOME FROM DONATIONS AND LEGACIES

General Donations
Rental income receivable
Offerings
Grants		 Unrestricted Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
38,125
-
38,125
6,963
21,125
10,783
31,908
32,877
231,845
-
231,845
208,530
-
-
-
30,653
291,095
10,783
301,878
279,023

3. INCOME FROM CHARITABLE ACTIVITIES

Westfield House income
Congregation Led Group income -Seedlings
Car Loan Fund
Sabbatical Leave Fund
Student Aid Fund
Youth Fund
Pearce/Home Missions
Overseas Mission
Lutheran Radio UK
Publications
Retirement
Restructure Fund
Westfield House Endowment
Glen Zweck Scholarship Fund
HR/HS
Westfield House income:
Donations
Westfield House projects
Tuition fees
Other income
Rental income
Lutheran Radio UK:
Donations		 Unrestricted Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
300,533
-
300,533
246,998
67,278
-
67,278
63,387
-
-
-
-
495
-
495
468
600
-
600
400
1,179
-
1,179
429
223
-
223
2,231
832
-
832
1,277
-
8,340
8,340
22,735
933
-
933
1,241
-
4,690
4,690
-
-
5,000
5,000
-
-
2,701
2,701
3,039
-
748
748
914
3,750
-
3,750
2,210
375,823
21,479
397,302
345,329
25,092
-
25,092
20,919
-
-
-
46,654
115,362
-
115,362
73,445
9,985
-
9,985
3,015
150,094
-
150,094
102,965
300,533
-
300,533
246,998
8,340
-
8,340
22,735
8,340
-
8,340
22,735

16

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. OTHER INCOME
Congregational income
Other charity income
Holy Trinity Debt due to the Chuch
5. INVESTMENT INCOME
Investment income
6. COST OF CHARITABLE ACTIVITIES
Central Administration
Advisory and consultancy fees
Light and heat
Maintenance and cleaning
Legal Fees
Westfield 2022/2021 corrections
Telephone
Postage
Stationery, printing, duplicating and IT
Rates
Insurance
Bank charges
Audit fee - current year
Audit fee - prior year
Accountancy and bookkeeping fees
Subscriptions
Property expenses
Sundries
Donations
Donation to ELCE Trust
Congregational expenditure
Pastors' salaries and costs
Establishment costs
Insurance and repairs
Other costs
Church Led Group costs - Seedlings		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
344,866
-
344,866
269,695
256,420
-
256,420
324
55,448
-
55,448
-
656,734
-
656,734
270,019
235
20
255
75
235
20
255
75
-
-
-
9,297
428
-
428
415
235
-
235
360
1,265
-
1,265
2,356
-
-
-
(114)
804
-
804
586
82
-
82
80
2,128
-
2,128
2,995
456
-
456
456
532
-
532
260
375
-
375
(9,515)
7,200
-
7,200
6,000
-
-
-
2,340
19,400
-
19,400
-
-
-
-
614
3,001
-
3,001
8,714
2,052
-
2,052
134
767
-
767
-
-
-
-
332,946
38,725
-
38,725
357,924
280,506
-
280,506
251,807
183,942
-
183,942
135,836
86,486
-
86,486
86,509
5,776
-
5,776
3,568
66,564
66,564
58,035
623,274
-
623,274
535,755

17

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. COST OF CHARITABLE ACTIVITIES (continued)
Westfield House
Direct costs
Westfield House projects
Salaries and wages
Property expenses
Accountancy and bookkeeping fees
Legal Fees
Other costs
Fund Expenditure
Furlough fund
Youth fund
Pearce/Home Missions
Barnes conference
Board for overseas mission
ELCE Retreat Launde Abbey
Training and recruitment
LRUK
Publications
Retirement
Student Aid payments
Westfield House Endowment
Westfield House Special projects
Restructure fund
Glen Zweck Scholarship Fund
Lutheran Radio UK:
Salaries
Other costs
ELCE expenditure
ELCE committees and Chairman expenses
Miscellaneous expenses
Depreciation
Interest payable
Loss on disposal of assets
Total Expenditure		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
46,072
-
46,072
30,261
-
-
-
55,603
147,230
-
147,230
137,091
66,204
-
66,204
76,308
5,700
-
5,700
6,758
4,606
-
4,606
4,721
4,484
-
4,484
1,161
274,297
-
274,297
311,902
3,341
-
3,341
-
318
-
318
270
10,000
-
10,000
-
3,822
-
3,822
-
1,271
-
1,271
1,199
-
380
380
190
-
-
-
-
-
19,031
19,031
19,191
643
-
643
1,438
-
37,000
37,000
-
100
-
100
-
-
12
12
12
-
-
-
1,568
-
19,538
19,538
10,281
-
8
8
8
19,495
75,969
95,464
34,157
16,677
-
16,677
12,587
2,354
-
2,354
6,604
19,031
-
19,031
19,191
9,570
-
9,570
2,571
9,570
-
9,570
2,571
1,752
-
1,752
1,358
941
-
941
1,199
23,952
-
23,952
-
26,645
-
26,645
2,557
992,006
75,969
1,067,975
1,244,866

18

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. ANALYSIS OF TOTAL EXPENDITURE

Staff costs
Other
Depreciation
2022
2022
2022
£
£
£
Charitable Activities
502,379
563,844
1,752
502,379
563,844
1,752
8. NET INCOME/ EXPENDITURE
The excess of income over expenditure is stated after charging:
Depreciation of tangible fixed assets: owned by the company
Auditors remuneration: audit
Auditors remuneration: non-audit
Auditors remuneration: audit in relation to the prior year
9. STAFF COSTS
Wages and salaries
National insurance
Pension costs
The average monthly number of employees during the year was as follows:
Work with congregations
Theological training		 Staff costs
Other
Depreciation
2022
2022
2022
£
£
£
502,379
563,844
1,752		 2022
£
1,067,975
1,067,975
2022
£
1,752
7,200
800
-
2022
£
415,317
40,837
46,225
502,379
2022
No.
14
4
18		 2021
£
1,244,866
502,379
563,844
1,752		 1,244,866
2021
£
1,358
6,000
4,000
2,340
2021
£
388,085
37,729
22,581
448,395
2021
No.
13
4
17

No employee received remuneration amounting to more than £60,000 in either year.

Key Management Personnel

The total wages & salaries, social security costs and pension costs of the key management personnel of the charity as listed on page 1 were £178,296 (2021: £144,440).

10. PENSION COSTS

The charity contributes to defined contribution pension schemes. The assets of the schemes are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the charity to these funds and amounted to £46,225 (2021: £22,581).

19

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. TRUSTEES' REMUNERATION

During the period, expenses amounting to £4,175 were reimbursed to 4 trustees (2021: £9,530 to 7 trustees). No remuneration was paid to any trustees during the year in their capacity as trustees. Note 13 sets out details of car loans made to trustees. During the year, donations amounting to £36,737 were received from trustees.

Remuneration is paid to the following trustees who are employees of the charity in their positions as ordained ministers of member congregations and as Principal of Westfield House.

Rev G Samiec
Rev J Ehlers
Dr C E Lumley
Rev J Kriger		 Wages and
salaries
£
32,180
32,180
36,956
29,164
130,480		 Social
security
£
3,220
3,220
3,880
2,804
13,124		 Pension
costs
£
2,256
2,395
-
1,637
6,288

During the period Rev G Samiec, Rev J Ehlers and Rev J Kriger were provided with accommodation. The key management personnel of the charity are considered to be related parties and their total employee benefits are set out in note 9.

12. TANGIBLE FIXED ASSETS

Cost
As at 1 April 2021
Additions
Revaluation
Disposals
As at 31 March 2022
Depreciation
As at 1 April 2021
Charge for the year
As at 31 March 2022
Net book value
As at 31 March 2022
As at 31 March 2021
DEBTORS
Due < 1 year
Trade debtors
Car loans - concessionary loans
ELCE Trust Limited
Other debtors
Prepayments and Accrued Income		 Freehold
property
£
6,476,369
-
(23,952)
6,452,417
-
-
-
6,452,417
6,476,369		 Library
books
£
192,932
-
-
-
192,932
170,084
-
170,084
22,848
22,848		 Fixtures
and fittings
£
42,998
5,196
-
-
48,194
41,125
1,145
42,270
5,924
1,873		 Computer
equipment
£
15,838
-
-
-
15,838
14,298
607
14,905
933
1,540
2022
£
71,734
27,049
316,718
86,046
25,912
527,459		 Total
£
6,728,136
5,196
-
(23,952)
6,709,380
225,507
1,752
227,259
6,482,121
6,502,629
2021
£
31,505
28,903
88,789
20,763
19,777
189,737

13. DEBTORS

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. DEBTORS

Included in car loans are amounts totalling £6,800 owed by one trustee in office at the period end (2021 - one trustee owed £9,200). All of the loans detailed are repayable by instalments within the next four years and no interest is charged with the exception of one car loan.

Due > 1 year 2022 2021
£ £
Loans 17,000 -
17,000 -
Total debtors 544,459 189,737
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021
£ £
Trade creditors 43,955 14,426
Other creditors 5,297 920
Other taxation and social security 223 -
Accruals and deferred income 69,070 79,936
118,545 95,282
Deferred income:
As at 1 April 2021 7,510 17,500
Deferred income recognised in the year (7,510) (17,500)
Resources deferred during the year 11,640 7,510
As at 31 March 2022 11,640 7,510
Deferred income represents tuition income and rents received in advance
Congregation amounts owed to Evangelical Lutheran Church of England Trust Limited
2022 2021
£ £
Holy Trinity, Tottenham 138,060 137,410
St Peters 36,490 38,220
Redeemer building project 56,171 56,545
Our Saviour - 4,793
230,721 236,968
Less: due after one year (153,300) (157,042)
77,421 79,926
Total creditors falling due within one year 195,966 175,209
The majority of the loans bear interest and are repayable by instalment.
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Monies owed to Evangelical Lutheran Church of England Trust Limited 2022 2021
£ £
Holy Trinity, Tottenham 62,400 62,400
Our Saviour - 1,633
Redeemer building project 55,671 56,046
St Peters 35,229 36,963
153,300 157,042

21

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. STATEMENT OF FUNDS
Note
Designated Funds:
Car fund
i
Furlough fund
ii
Sabbatical leave fund
iii
Student aid fund
iv
Youth fund
v
Rev Dr E Geo Pearce memorial fund
vi
Board for overseas mission
vii
Pastoral support fund
viii
Worship committee fund
ix
Barnes conference
x
Westfield House General Fund
xi
Property fund
xii
Restructure Fund
xiii
Publishing Fund
xiv
HR/H&S Fund - Designated
xv
Good Shepherd Property Fund
xvi
General Funds:
General Funds:
Total Unrestricted Funds
Restricted Funds:
Retirement reserve fund
xvii
LRUK
xviii
Westfield House Endowment
xiv
Glen Zweck Scholarship Fund
xxi
xxii
ELCE Retreat
xxiii
Publishing Fund Restricted
xxiv
xxv
Westfield House Operating Fund
Total Funds
Restructure Fund
Lutheran Women's League of Great
Britain		 Brought
Transfers
Carried
forward
Income
Expenditure
in/(out)
forward
£
£
£
£
£
11,097
-
(6,735)
8,589
12,951
5,031
-
(3,341)
-
1,690
8,731
495
-
-
9,226
5,337
600
(100)
-
5,837
5,172
1,179
(318)
-
6,033
24,525
223
(10,000)
-
14,748
2,341
832
(1,271)
-
1,902
373
-
-
-
373
158
-
-
-
158
13,874
-
(3,822)
-
10,052
37,910
300,533
(274,297)
(64,147)
0
6,476,369
-
-
(23,952)
6,452,417
10,000
-
-
(4,819)
5,181
1,725
933
(643)
-
2,015
2,210
3,750
-
-
5,960
256,420
-
-
256,420
6,604,854
564,965
(300,527)
(84,329)
6,784,963
394,155
758,922
(691,479)
15,363
476,961
6,999,009
1,323,887
(992,006)
(68,966)
7,261,924
89,084
21,910
(43,437)
-
67,557
63,545
8,340
(19,031)
-
52,854
107,706
2,721
(12)
-
110,415
74,140
748
(8)
-
74,880
9,719
5,000
(19,538)
4,819
-
2,185
-
(380)
-
1,805
78
-
-
-
78
-
-
-
200
200
-
-
-
63,947
63,947
346,457
38,719
(82,406)
68,966
371,736
7,345,466
1,362,606
(1,074,412)
-
7,633,660

22

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. STATEMENT OF FUNDS (CONTINUED)

Designated Funds:

xiv

This fund is designated to support ELCE publications, in particular a quarterly newsletter ( The British Lutheran ). An initial sum of £2000 was allocated to the fund, in order to underwrite initial costs. Income received from any ELCE publication is allocated to this fund. Expenditure exceed the allocated amount so a transfer has been made from the General Fund to cover the deficit.

Restricted Funds:

xviii This fund was set up for donations given specifically towards the costs of the Lutheran Radio UK.

23

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. STATEMENT OF FUNDS (CONTINUED)

xxii The Restructure fund contains restricted donations to be used to fund the reorganisation work.

xxiii Funds paid to attend the 2020 ELCE Retreat which was cancelled, held against attendance in 2021

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due after more than one year		 Unrestricted
Restricted
Total
funds
funds
funds
2022
2022
2022
£
£
£
29,705
6,452,417
6,482,122
7,581,486
(6,080,681)
1,500,805
(195,966)
-
(195,966)
(153,300)
-
(153,300)
7,261,925
371,736
7,633,660		 Total
funds
2021
£
6,502,629
1,175,088
(175,209)
(157,042)
7,345,466

18. OPERATING LEASE COMMITMENTS

At 31 March 2022 the total of the charity's future minimum lease payments under non-cancellable operating leases was:

Equipment
Less than one year
Between one and five years
Operating lease charges for the period:
Hire of plant & machinery		 Total
2022
£
1,257
4,228
5,485
609
609		 Total
2021
£
1,257
4,838
6,095
1,257
1,257

19. CONTINGENT LIABILTY

The Church has agreed to meet the liabilities of the Evangelical Lutheran Church of England Trust Limited in the event that the company is unable to meet them itself.

24

DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. TRANSACTIONS WITH CONNECTED CHARITY

The Charity is connected to the Evangelical Lutheran Church of England Trust Limited, which acts as custodian for properties owned by the Church, which is the beneficial owner. Both the Church and the Trust have as their objectives the spread of the Gospel. The Executive Council of the Church are the Trustees of the Church and also the Directors of the charitable company, acting on behalf of the member congregations of the charitable company who are represented by the pastoral and lay delegates who attend the annual meeting of the charitable company held in conjunction with the annual synod of the Evangelical Lutheran Church of England Trust Limited. As at 31 March 2022 member congregations of the Church owed the charitable company 230,721 (2021: £424,836).

During the year the Trust donated £nil to ELCE Church (2021: £nil) for the restricted fund established to cover costs related to the restructure of ELCE. At 31st March 2022, the Evangelical Lutheran Church of England Trust owed ELCE Church £316,718 (2021: £88,789).

21. CONTROLLING PARTY

The Charity is controlled by its members, who make up the Synod of the Evangelical Lutheran Church of England.

22. STATUS OF CONGEGATIONS

Following further advice from the Charity Commission, the Executive Council have been advised that member congregations are not subsidiaries of the Evangelical Lutheran Church of England, but are autonomous bodies in membership of the Evangelical Lutheran Church of England. A Church wide consultation in response to this advice is underway and in the interim, as in previous years, these accounts have been prepared on a line by line consolidation basis, as if the congregations and Westfield House are subsidiaries of the Church.

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DocuSign Envelope ID: 8EDE55E5-5BB8-4893-A1B5-9EAFC94C50CF

EVANGELICAL LUTHERAN CHURCH OF ENGLAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

23. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income from:
Donations and legacies
Charitable activities
Other activities
Investments
Total income
Expenditure on:
Charitable activities
Total expenditure
Net expenditure before investment gains/losses
Net (expenditure)/Income before transfers
Transfers between funds
Net movement in funds
Fund balances brought forward
Total funds carried forward
All activities relate to continuing operations.
Net realised and unrealised gains/(losses)
on investments		 Unrestricted
Restricted
Total
funds
funds
funds
2021
2021
2021
£
£
£
264,957
14,066
279,023
317,413
27,916
345,329
270,019
-
270,019
75
75
852,464
41,982
894,446
1,214,034
30,832
1,244,866
1,214,034
30,832
1,244,866
(361,570)
11,150
(350,420)
282,156
282,156
(79,414)
11,150
(68,264)
-
-
-
(79,414)
11,150
(68,264)
7,078,422
335,308
7,413,730
6,999,008
346,458
7,345,466

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