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2021-09-30-accounts

REGISTERED CHARITY NUMBER: 222407

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 FOR EVANGELICAL MOVEMENT OF WALES

Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

EVANGELICAL MOVEMENT OF WALES

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

Page
Report ofthe Trustees 1 to 5
Report ofthe IndependentAuditors 6 to 7
Statement of Financial Activities 8
Balance Sheet 9
Cash FlowStatement 10
Notes to the Cash Flow Statement 11
NotestotheFinancialStatements 12 to 22

EVANGELICAL MOVEMENT OF WALES

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their report with the financial statements of the charity for the year ended 30 September 2021. The trustees have adopted the provisions of 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

Objectives and aims

The objectives and aims of Evangelical Movement of Wales (the Movement) are as follows:

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Significant activities

In this context, volunteers contribute significantly to almost all areas of the Movement's work. This provides a strong basis of skills and enables our ministries to be more affordable. Our camps and our bookshops in Bangor, Bala and Neath are totally staffed by volunteers.

Public benefit of the services provided by the Movement

The organisation's trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to . have due regard to public benefit guidance published by the Commission, as demonstrated by the above objectives and activities.

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EVANGELICAL MOVEMENT OF WALES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

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ACHIEVEMENT AND PERFORMANCE

Charitable activities The COVID-19 pandemic continued to have a significant impact on our activities during the year. in the face of this, we are grateful to God that we were able to organise a number of other ways of supporting churches and Christians during the period.

1 Serving the Church through organising conferences and events that teach the Bible and promote Christian unity by bringing together people from different churches

The summer residential conferences in English and Welsh took place in a different format to previous years. Both Conferences were hybrid with many thousands joining either online or in person. It was particularly good to be able to take the English Conference on the road to Newport, Aberystwyth and Mold, therefore providing a strong link with the people we wish to serve. The South Wales Ladies Conference continued online for the second year in succession and was again accessed by ladies from a wider geographical area then had previously been able to attend face-to-face.

2 Serving the Church through Supporting, Training and Developing Church Leaders

The training and support of church leaders is of major significance for the health of the church in Wales. 17 men are currently on our Theological Training Course (TTC), designed for men called into Christian ministry - a slight increase over the previous year. The course delivery is now hybrid with some students and lecturers joining from off-site locations. A number of online meetings were again held for Pastors’ Wives, in place of our usual annual Conference. We continued with online discussion, support and prayer ministries, TeamTalk in English and Brawd in Welsh to support Church leaders. We also started a new Podcast that has currently over 2000 downloads. Our collection of online videos and resources continue to grow.

3 Serving the Church through running camps and other ministries for young people

In place of our usual residential camps, we ran 8-day outdoor camps. These were accessed by over 200 children, mostly from Wales. We also ran some online Zoom events for young people during the year.

4 Serving the Church through resourcing and training churches and Christians with Bible based, Gospel centred

resources Our English and Welsh language magazines, The Evangelical Magazine and Y Cyichgrawn Efengylaidd continued to be produced and appreciated, as did English and Welsh language books published under the Bryntirion Press and Gwasg Bryntirion imprints respectively, and our bi-lingual website. Our bookshops reopened during the year, but we have found that sales have not recovered to pre-pandemic levels.

5 Serving the Church through supporting churches in Mission and Evangelism

Despite the restrictions, we were able to help many churches with the production and distribution of over 60,000 of our evangelistic magazines. Also, we were able to start on the process of supporting churches in their evangelism via the Passion for Life initiative, providing training courses and opportunities for corporate prayer.

6 Serving the Church through encouraging prayer for Wales

We have continued to encourage prayer by means of the regular provision of information and monthly prayer letters. In addition, we have continued to produce daily devotions, made available on the website and via email.

FINANCIAL REVIEW

The attached financial statements set out the income and expenditure of the charity for the year to 30 September 2021 and the postilion at the year end.

" The Movement reported a surplus for the year of £77,264, compared to a deficit of £44,779 in the previous year.

In the past, in order to maintain a cash balance, assets have been sold. This is not our preferred method of providing cash resources, despite the fact that the value of properties owned by Evangelical Movement of Wales is in excess of the figure shown in these accounts. Only if absolutely necessary would the value held in property be used to secure short-term overdraft facilities.

Principal funding sources

Income from ministries has been significantly reduced over the period, but we are grateful for the generous giving of our supporters, and the government grants that have been made available.

Investment policy and objectives

There are no restrictions on the Movement's power to invest. The trustees have invested cash not immediately required in Money Market accounts as this has been found to give the best return and to ensure access to the funds is available when necessary. Stock market investments are not considered to be in accordance with the ethical standpoint of the Movement.

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EVANGELICAL MOVEMENT OF WALES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

FINANCIAL REVIEW

Reserves policy

The total funds of £1,977,830 include £45,641 which are held for restricted purposes as shown in the notes to the accounts. A further £1,512,341 has been designated for specific purposes, set out in the same note. These designated funds comprise of fixed assets, stock and cash. The remaining £419,848 are the free reserves.

The charity's policy is to have sufficient free reserves to cover working capital requirements, day to day running costs and planned deficits without the need for bank borrowing. The trustees review the policy annually in the light of changing circumstances.

Risk management

The principal risks facing the Movement are financial risk and the risks associated with the safeguarding of children and the vulnerable.

In coming out of the COVID-19 pandemic, we have seen a reduction of volume in our activities. In summer 2021, we introduced some camps and day conferences with small numbers. We continued to benefit from the government furlough scheme which helpfully offset some of our losses. At the time of writing shop turnover has not as yet increased to prepandemic levels and numbers pre-booked onto our summer 2022 activities are lower than at the comparable time in prepandemic years. Financial models and cash-flow forecasts have been prepared, and while the Movement's dependence on gifts continues, the trustees are of the opinion that the Movement will be able to continue into the future.

Due to the continued significant downturn in activity, some staff have been made redundant.

We remain committed to continue the development of our information systems, as well as to the strengthening of good working practices by means of our Employee Handbook and staff training. In addition to this, we have developed a Health and Safety Policy and rolling programme of Health and Safety reviews affecting all aspects of our work and ensure appropriate insurance cover by means of an annual review of needs.

Safeguarding risks principally arise from the work we undertake with children and the vulnerable. These risks are managed by a deeply engrained system of assessment, approval, monitoring and reporting for our staff, volunteers and activities.

We believe that alongside our practical diligence in all these areas, prayerfulness is vital.

FUTURE PLANS

During the year, our Management Board was reorganised to focus on the following areas which are considered to be our priorities in the coming years:

  1. Supporting Leaders 2. Evangelism 3. Supporting Christians and Churches 4. — Children and Youth Work

Specific actions are being developed in each of these areas, which at present include:

  1. In the short-term:

  2. a. Reintroduction of face-to-face conference and camp activities for the Easter and Summer periods: b. Reintroduction of face-to-face Ministers’ Conference in Bala in June 2022;

  3. : c. Appointing a staff member to develop resources for young people, including developing an app providing push-based content;

  4. d. Reviewing and encouraging local Church witness in shows and fairs around Wales.

  5. In the longer-term: a. Developing a Youth Leaders network; b. Assessing the needs to elders and deacons and how they can best be supported; c. Assessing the best ways to support ministers and churches facing conflict and pastoral difficulties.

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EVANGELICAL MOVEMENT OF WALES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

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STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Evangelical Movement of Wales/Mudiad Efengylaidd Cymru was registered as a charity on 19 November 1963.

The governing document is the Movement's Constitution, which was adopted 9 April 1962, amended 24 April 1980, 15 November 2000 and 20 February 2008. The charity is an unincorporated association.

Recruitment and appointment of new trustees

New trustees are appointed to the Management Board in accordance with the Movement's constitution. Appointment to the board shall be made by a resolution of two-thirds of the members of the board who are present and voting. The chairman and vice-chairs shall be elected by the members of the board and require the support of two-thirds of the members of the board who are present and voting. No person shall be eligible to be a member of the Management Board unless he shall give assent to (and sign annually) the doctrinal basis of the Movement and live a life worthy of the gospel. The Management Board shall serve for a period of three years. At the end of the three-year period, all members of the board shall retire, but members who meet the eligibility criteria above will be eligible for re-appointment.

Organisational structure , Members of the Management Board the Management Board Management Board Board are the Movement's the Movement's Movement's trustees. They have have full and and final responsibility for the formulation for the formulation the formulation formulation and implementation of the the Movement's Aims, Objects and Doctrinal Belief. The board consists of the chairman; two vice-chairs (one representing Welsh-language work, the other English-language work); core members, each leading one named main area of ministry; and additional members, to support the chairmen, vice-chairs or core members. Wherever possible trustees are appointed to constitute a mix of English-speaking and Welshspeaking members, in order to reflect the nature of the Movement's work in the two languages. .

Members of the Management Board the Management Board Management Board Board are the Movement's the Movement's Movement's trustees. They have have full and and final responsibility for the formulation for the formulation the formulation formulation and implementation of the the Movement's Aims, Objects and Doctrinal Belief.

Our General Secretary is seconded to the Movement by his church, which is paid for his services at a mutually agreed rate.

Induction and training of new trustees

The trustees take formal responsibility for the effective induction of all new trustees as well as ensuring that all potential trustees are fully informed of their legal responsibilities.

The induction of trustees includes the provision of an "Induction Pack" and information concerning:

Related parties

The title to all freehold and leasehold property owned by the Evangelical Movement of Wales is held on its behalf by the Evangelical Movement of Wales Trust Limited. The appointment of all directors of the Evangelical Movement of Wales Trust Limited is subject to the approval of the Management Board of the Evangelical Movement of Wales.

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REFERENCE AND ADMINISTRATIVE DETAILS . Registered Charity number 222407

Principal address

Waterton Cross Business Park South Road Bridgend Mid Glamorgan CF31 3UL

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EVANGELICAL MOVEMENT OF WALES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021

Trustees Dr D Norbury Chair re-appointed July 2024 Rev J Bailey re-appointed July 2021 Dr OE Davies re-appointed July 2021 Rev M Francis re-appointed July 2021 Parch E James re-appointed July 2024 Parch S Jones resigned July 2021 Parch R Murphy resigned April 2021 Rev A Pitt re-appointed July 2021 Rev P Swann re-appointed July 2021 Rev M Thomas re-appointed July 2021 Dr M Munday re-appointed July 2021

Senior staff

Rev Mark Thomas

‘General Secretary - appointed 1 January 2018

Auditors

Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Bankers

HSBC Bank Pic ' 43 Dunraven Place : : BRIDGEND CF31 1JQ

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STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to chanties in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

' The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the Board of Trustees on @Slay deez. and signed on its behalf by:

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EVANGELICAL MOVEMENT OF WALES

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Opinion

We have audited the financial statements of Evangelical Movement of Wales (the 'charity’) forthe year ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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

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

in auditing the financial statements, we have concluded that the trustees’ use of the going concer 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 charity's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charity's ability to continue as a going concern in exceptional or unforeseen circumstances.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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. We have nothing to report in this regard.

Matters on which we are required to report by exception

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 concem 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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF EVANGELICAL MOVEMENT OF WALES

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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.

Based on our understanding of both the charity and environment, we identified the principal risks of non-compliance with laws and regulations and considered the extent to which any non-compliance might have on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and ensured that all those involved in the audit undergo regular update training, including on how to identify or recognise fraud and non-compliance with laws and regulations.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inaccurate journals and management bias in accounting estimates. We addressed these risks by carrying out specifically targeted procedures, which included:

As outlined above, reasonable assurance is a high level of assurance, but is not a guarantee that a material misstatement may always be detected. The extent to which our procedures are capable of detecting material misstatements or irregularities, including fraud, is therefore subject to the inherent limitations of an audit. There is therefore, an unavoidable risk that a material misstatement may not come to light, in particular, where non-compliance with laws and regulations are remote from events and transactions reflected in the financial statements or where fraud or errors arise due to intentional misrepresentation, forgery, concealment, management override and/or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our 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) Regulations 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 auditors’ 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.

Watts Gregory LLP

Chartered Accountants & Statutory Auditors Watts Gregory LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Date: 6 July 2022

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EVANGELICAL MOVEMENT OF WALES

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2021

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|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |Notes|£|£|£|£| |INCOME|AND|ENDOWMENTS|FROM| |Donations and|legacies|3|140,527|191,263|331,790|238,991| |Charitable|activities|5| |Bookshops|71,409|-|71,409|139,080| |Press|and|magazines|20,173|-|20,173|16,375| |Conference|centre|40,076|-|40,076|34,327| |Conferences|9,312|-|9,312|6,204| |Camps|13,922|-|13,922|285| |Other|ministries|18,554|-|18,554|8,554| |Investment|income|4|40|-|40|419| |Total|314,013|191 263|505,276|444,235| |EXPENDITURE|ON| |Charitable|activities|6| |Bookshops|49,249|104,023|153,272|230,126| |Press|and|magazines|49,610|785|50,395|48,454| |Conference|centre|36,254|63,523|99,777|92,536| |Conferences|33,458|2,023|35,481|39,410| |Camps|28,121|4,613|32,734|44,176| |Other|ministries|55,684|10,496|66,180|34,312| |Loss|on|disposal|of freehold|property|1,066|-|1,066|-| |Total|253,442|185,463|438,905|489,014| |Net|gains|on|investments|10,893|-|10,893|-| |NET INCOME/(EXPENDITURE)|71,464|5,800|77,264|(44,779)| |RECONCILIATION|OF|FUNDS| |Total|funds|brought|forward|1,860,725|39,841|1,900,566|1,945,345| |TOTAL FUNDS|CARRIED FORWARD|1,932,189|45,641|1,977,830|1,900,566|

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The notes form part of these financial statements

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EVANGELICAL MOVEMENT OF WALES

BALANCE SHEET

30 SEPTEMBER 2021

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|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |Notes|£|£|£|£| |FIXED|ASSETS| |Tangible|assets|11|4,320,299|-|1,320,299|1,480,672| |Investment|property|12|10,893|:|10,893|-| |1,331,192|-|1,331,192|1,480,672| |CURRENT ASSETS| |Stocks|13|117,260|-|117,260|139,848| |Debtors|14|50,392|-|50,392|66,829| |Cash|at bank|499,509|45,641|545,150|312,937| |667,161|45,641|712,802|519,614| |CREDITORS| |Amounts|falling due|within|one year|15|(66,164)|-|(66,164)|(99,720)| |NET CURRENT ASSETS|600,997|45,641|646,638|419,894| |TOTAL ASSETS|LESS CURRENT|LIABILITIES|1,932,189|45,641|1,977,830|1,900,566| |NET ASSETS|1,932,189|45,641|1,977,830|1,900,566| |FUNDS|17| |Unrestricted|funds|1,932,189|1,860,725| |Restricted funds|45,641|39,841| |TOTAL FUNDS FUNDS|1,977,830|1,900,566|

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TOTAL FUNDS FUNDS

Theand financialwere signed statementson its behaif were by: approved and authorised for issue by the Board of Trustees on RS May RERR

The notes form part of these financial statements : Page 9

EVANGELICAL MOVEMENT OF WALES

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021

2021 2020
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 79,514 (83,060)
Netcash provided by/(used in) operating activities 79,514 (83,060)
Cash flows from investing activities
Purchase oftangible fixed assets 3,725 (13,735)
Sale oftangible fixed assets
Interest received		 148,934
40		 -
419
Netcash provided by/(used in) investing activities 152,699 (13,316)
Change in cashand cash equivalents in
the reporting period 232,213 (96,376)
Cash and cash equivalents atthe
beginning ofthe reporting period 312,937 409,313
Cash and cash equivalents atthe end of
thereportingperiod 545,150 312,937

The notes form part of these financial statements

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

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|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Net|income/(expenditure)|for the|reporting|period|(as|per the| |Statement of Financial|Activities)|77,264|(44,779)| |Adjustments|for:| |Depreciation|charges|6,648|7,016| |Gain|on|investments|(10,893)|-| |Loss|on|disposal|of fixed|assets|1,066|-| |Interest|received|(40)|(419)| |Decrease|in|stocks|22,588|10,448| |Decrease|in|debtors|16,437|19,017| |Decrease|in|creditors|(33,556)|(74,343)| |Net cash|provided|by/(used|in)|operations|79,514|(83,060)|

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ANALYSIS OF CHANGES IN NET FUNDS

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||||||| |---|---|---|---|---|---| |At|1/10/20|Cash|flow|At|30/9/21| |£|£|£| |Net|cash| |Cash|at|bank|312,937|232,213|545,150| |312,937|232,213|545,150| |Total|312,937|232,213|545,150|

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The notes form part of these financial statements

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EVANGELICAL MOVEMENT OF WALES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

  1. STATUTORY INFORMATION

Evangelical Movement of Wales is a registered charity, registered in England and Wales. The governing document is its constitution, and it is an unincorporated association. The principal address is Waterton Cross Business Park, South Road, Bridgend, Wales, CF31 3UL. The nature of the charity's operations and principal activities is disclosed within the Report of the Trustees.

The financial statements are presented in Sterling (£), the charity's functional currency, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

  1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of freland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

There have been no material departures from Financial Reporting Standard 102.

The financial statements have been prepared to give a 'true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent to provide a ‘true and fair view. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Evangelical Movement of Wales meets the definition of a public benefit entity as demonstrated within the Report of the Trustees.

Going concern

The Coronavirus pandemic has continued to have a significant effect on the Movements finances. Financial models and cash-flow forecasts have been prepared to 30 September 2022, and much consideration is being given as to any changes required in the future structure and running of the Movement. While the Movement's dependence on gifts continues, the trustees are of the opinion that the Movement will be able to continue into the future.

The trustees are satisfied that despite the Coronavirus pandemic, it is appropriate for the charity's financial statements to be prepared on a going concern basis. {n the circumstances they have concluded that no further disclosures are required in the financial statements at this time.

Income

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All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, itis probable that the income will be received, and the amount can be measured reliably.

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This includes capital grants.

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

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EVANGELICAL MOVEMENT OF WALES NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

2. ACCOUNTING POLICIES - continued

Income

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

investment income is recognised on a receivable basis.

It is not the policy of the charity to show income net of expenditure unless the sums involved are immaterial.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis. Irrecoverable VAT is allocated on the same basis.

Grants payable

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. The grants are recognised where the trustees have agreed to pay the grant and the recipient has a reasonable expectation that they will receive a grant, provided they comply with the terms of the agreement. Grants offered subject to terms and conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities incorporating the income and expenditure account.

Fixed assets and depreciation Fixed assets are initially recorded

at cost. Only assets which cost £500 or more are capitalised by the charity.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Equipment

20% straight line

The freehold property is fully maintained to prevent its deterioration and consequently any depreciation would be immaterial; accordingly, no depreciation is provided. in the opinion of the trustees the residual value is not less than cost. The trustees perform annual impairment reviews to ensure that the recoverable amount is not lower than the carrying value.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

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EVANGELICAL MOVEMENT OF WALES NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

:

2. ACCOUNTING POLICIES - continued

Stocks

Stock is included at the lower of cost or net realisable value calculated on an alternative stock valuation method based on the current sales price less the products gross profit mark-up which is dependent on the nature of the stock item.

Operating leasing agreements

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.

Taxation

The charity is exempt from tax on its charitable activities.

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.

Debtors

Trade debtors and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Funds structure

Unrestricted funds represent resources available to be applied by the trustees for the general purposes of the charity.

Designated funds are amounts set aside from the general unrestricted funds to be used for particular purposes. They remain part of unrestricted funds.

Restricted funds are resources to which the donor has stipulated may only be applied for particular purposes within the charity's objects.

Termination payments The charity recognises termination payments as an expense and a liability only when the entity is demonstrably committed either to terminate the employment of an employee or a group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Employee benefits

:

When employees have rendered service to the charity, short-term employee benefits to which employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

DONATIONS AND LEGACIES

----- Start of picture text -----
2021 2020
£ £
Donations 144,054 115,427
Legacies 63,597 2,000
Grants 124,139 121,564
331,790 238,991
----- End of picture text -----

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

;

3. DONATIONS AND LEGACIES- continued

Grants received, included in the above, are as follows:

2021 2020
£ £
Swansea City Council 14,000 10,000
Neath PortTalbot Council 10,000 10,000
Wrexham County Borough Council
Gwynedd Council		 410,000
29,000		 10,000
45,000
Job Retention Scheme 61,139 46,564
124,139 121,564
INVESTMENT INCOME
2021 2020
£ £
Deposit account interest 40 419
INCOME FROM CHARITABLE ACTIVITIES
2021 2020
£ £
Bookshop sales 71,409 139,080
Press & magazine sales 20,173 16,375
Conference centre fees 40,076 34,327
Conferences income 9,312 6,204
Camps income
Other ministries		 13,922
18,554		 285
8,554
173,446 204,825
CHARITABLE ACTIVITIES COSTS
Support
Direct
Costs		 costs (see
note 7)		 Totals
£ £ £
Bookshops 135,083 18,189 153,272
Press and magazines 19,316 31,079 50,395
Conference centre 95,572 4,205 99,777
Conferences 7,065 28,416 35,481
Camps 5,538 27,196 32,734
Other ministries 14,129 52,051 66,180
- - 276,703 161,136 - 437,839

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

  1. SUPPORT COSTS
SUPPORT COSTS
Governance
Salaries Other costs Totals
£ £ £ £
Bookshops 10,717 6,907 565 18,189
Press and magazines 18,317 11,798 964 31,079
Conference centre 2,479 1,596 130 4,205
Conferences 16,747 10,787 882 28,416
Camps
Other ministries		 16,028
30,677		 10,324
19,759		 844
1,615		 27,196
52,051
94,965 61,174 5,000 161,136

Included within support costs is an amount of £5,000 in respect of statutory audit fees and £4,400 in respect of other services paid to the auditor.

  1. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 30 September 2021 or for the period ended 30 September 2020.

Trustees' expenses

There were payments made of £269 (2020 - £106) to 1 (2020 - 2) trustees in respect of the reimbursement of travelling expenses incurred by trustees attending meetings on behalf of the Movement.

All other payments made to trustees are disclosed as related party transactions in note 20.

STAFF COSTS

2021 2020
£ £
Wages and salaries 194,320 196,291
Social security costs 8,387 5,804
Pension costs 2,947 3,395
205,653 205,490

Total remuneration paid to key management personnel in the year amounted to £42,728 (2020: £37,333). Redundancy payments of £9,090 (2020: £Nil) were paid during the year.

The average number of staff employed by the charity during the year was 14 (2020: 17).

No employee received remuneration in excess of £60,000 during the year.

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

10. 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
funds funds funds
£ £ £
INCOMEAND ENDOWMENTS FROM
Donations and legacies 74,682 164,309 238,991
Charitable activities
Bookshops 439,080 - 139,080
Press and magazines 16,375 - 16,375
Conference centre
Conferences
Camps		 34,327
6,204
285		 -
-
-		 34,327
6,204
285
Other ministries 8,554 - 8,554
Investment income 419 - 419
Total 279,926 164,309 444 235
EXPENDITURE ON
Charitable activities
Bookshops 121,636 108,490 230,126
Press and magazines 44,784 3,670 48,454
Conference centre 55,167 37,369 92,536
Conferences 39,410 - 39,410
Camps 44,176 - 44,176
Other ministries 34,312 - 34,312
Total 339,485 149,529 489,014
NETINCOME/(EXPENDITURE) (59,559) 14,780 (44,779)
Transfers betweenfunds 12,070 (12,070) -
Netmovement in funds (47,489) 2,710 (44,779)
RECONCILIATION OF FUNDS
Total funds broughtforward 1,908,214 37,131 1,945,345
TOTALFUNDSCARRIEDFORWARD 1,860,725 39,841 1,900,566

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

.

11. TANGIBLE FIXED ASSETS

.

11. TANGIBLE FIXED ASSETS
Freehold
property Equipment Totals
£ £ £
COST
At 1 October2020 1,459,896 51,002 1,510,898
Additions
Disposals		 (3,725)
(150,000)		 -
-		 (3,725)
(150,000)
At 30 September 2021 1,306,171 51,002 1,357,173
DEPRECIATION
At 1 October2020 - 30,226 30,226
Charge foryear - 6,648 6,648
At 30 September 2021 - 36,874 36,874
NET BOOKVALUE
At 30 September2021 1,306,171 14,128 1,320,299
At 30 September 2020 1,459,896 20,776 1,480,672
12. INVESTMENT PROPERTY
£
FAIR VALUE
Revaluation 10,893
At 30 September2021 10,893
NET BOOK VALUE
At 30 September 2021 10,893
At 30 September2020 -
Fair value at30 September2021 is represented by:
£
Valuation in 2021 10,893
The valuation has been carried out by the trustees, based on the value ofagricultural land in the area.
13. STOCKS
2021 2020
£ £
Stocks
.		 . ; 117,260. 139,848
14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Trade debtors 90 1,253
Otherdebtors 1,142 5,139
Prepayments and accrued income 49,160 60,437
50,392 66,829

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

.

.

  1. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Trade|creditors|1,151|7,652| |Social|security|and|other taxes|:|3,593|2,396| |VAT|29,647|30,298| |Other|creditors|12,706|2,653| |Accruals|and|deferred|income|19,067|56,721| |66,164|99,720|

----- End of picture text -----

Included within accruals and deferred income above is the following deferred income:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Camps|3,330|20,103|

----- End of picture text -----

The deferred income relates to income received in advance of service delivery.

  1. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£| |Within|one|year|19,706|24,112| |Between|one|and|five|years|1,469|8,886| |21,175|32,998|

----- End of picture text -----

Operating lease payments recognised as an expense in the year amounted to £19,372 (2020: £24,366).

17. MOVEMENT IN FUNDS

:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Net|Transfers| |At|movement|between|At| |1/10/20|in|funds|funds|30/9/21| |£|£|£|£| |Unrestricted|funds| |General|fund|174,263|62,623|182,962|419,848| |Stock fund|139,848|-|(22,588)|117,260| |Capital|asset fund|1,480,673|10,893|(160,374)|1,331,192| |BYG|Designated|Development fund|65,941|(2,052)|-|63,889| |-|.|1,860,725|71,464|-|~-|4,932,189| |Restricted|funds| |Auntie|Bessie|Camp|Support|fund|16,930|4,000|-|20,930| |JE|Davies|flowers|fund|14,534|4,800|-|16,334| |Liwybrau|fund|3,498|-|-|3,498| |Shows|and|Fairs|Evangelism|4,879|-|-|4,879| |39,841|5,800|-|45,641| |TOTAL FUNDS|1,900,566|77,264|-|1,977,830|

----- End of picture text -----

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

  1. MOVEMENT IN FUNDS- continued

Net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Incoming|Resources|Gains|and|Movement| |resources|expended|losses|in|funds| |£|£|£|£| |Unrestricted|funds| |General|fund|314,013|(251,390)|-|62,623| |Capital|asset|fund|-|-|10,893|10,893| |BYG|Designated|Development|fund|-|(2,052)|-|(2,052)| |Restricted|funds|314,013|(253,442)|10,893|71,464| |Specific donations|183,818|(183,818)|-|-| |BYG|Development|fund|1,645|(1,645)|-|-| |Auntie|Bessie|Camp|Support fund|4,000|-|-|4,000| |JE|Davies|flowers|fund|1,800|-|~|1,800| |491,263|(185,463)|-|5,800| |TOTAL FUNDS|505,276|(438,905)|10,893|77,264| |Comparatives|for movement|in|funds| |Net|Transfers| |At|movement|between|At| |1/10/19|in|funds|funds|30/9/20| |£|£|£|£| |Unrestricted|funds| |General|fund|204,340|(56,154)|26,077|174,263| |Stock fund|150,296|-|(10,448)|139,848| |Capital|asset|fund|1,473,953|-|6,720|1,480,673| |BYG|Designated|Development|fund|79,625|(3,405)|(10,279)|65,941| |1,908,214|(59,559)|12,070|1,860,725| |Restricted|funds| |BYG|Development|fund|-|12,070|(12,070)|-| |Auntie|Bessie Camp|Support|fund|12,350|4,580|-|16,930| |JE|Davies flowers|fund|12,734|1,800|-|14,534| |Liwybrau|fund|7,168|(3,670)|-|3,498| |Shows|and|Fairs|Evangelism|4,879|-|-|4,879| |37,131|14,780|(12,070)|39,841| |TOTAL FUNDS|1,945,345|(44,779)|-|1,900,566|

----- End of picture text -----

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

;

17. MOVEMENT IN FUNDS- continued

Comparative net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|279,926|(336,080)|(56,154)| |BYG|Designated|Development fund|-|(3,405)|(3,405)| |279,926|(339,485)|(59,559)| |Restricted|funds| |Specific|donations|145,859|(145,859)|-| |BYG|Development fund|12,070|-|12,070| |Auntie|Bessie Camp|Support fund|4,580|-|4,580| |JE|Davies|flowers|fund|1,800|-|71,800| |Llwybrau|fund|-|(3,670)|(3,670)| |164,309|(149,529)|14,780| |TOTAL FUNDS|444,235|(489,014)|(44,779)| ||||| |DESIGNATED|FUNDS:| |Capital|asset fund| |The|capital|asset|fund|represents|the|fixed|assets|of the|charity.|

----- End of picture text -----

Stock fund

The stock fund is to ensure the charity has the working capital available to meet the stock requirements of its shops and the press.

BYG Designated Development fund

The BYG Designated Development fund is to support the extension to the Bryn-y-groes conference centre.

RESTRICTED FUNDS:

Specific donations

This fund represents donations received for use by the bookshop, press, conference centre or camps to which it was given.

BYG Development fund

This fund consists of donations and gifts received to provide an extension to the Bryn-y-groes conference centre.

Auntie Bessie Camp Support fund

This fund is used to subsidise camping trips for children in need.

J E Davies flowers fund ; . . This fund consists of donations and gifts received in lieu of flowers on the death of J E Davies, a prior chairman of the Movement. The donations are to be used as specified by the family of J E Davies.

.

Llwybrau fund

This fund consists of donations and gifts received to assist the ministry of Llwybrau - a Welsh language youth magazine for communicating the Christian faith.

Shows and Fairs Evangelism fund

The Aberystwyth Trailer Committee transferred the funds to be used for work in shows and fairs.

Transfers between funds

At the year end a transfer has been made to bring the closing fund balance in line with the balance sheet value on both the stock and capital asset funds.

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EVANGELICAL MOVEMENT OF WALES

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30 SEPTEMBER 2021

  1. EMPLOYEE BENEFIT OBLIGATIONS

The charity contributes to individual stakeholder pensions. The assets of the schemes are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable on behalf of the employees of the charity and amounted to £2,947 (2020: £3,395). As at 30 September 2020 there were contributions outstanding of £510 (2020: £1,090).

  1. CONTINGENT ASSET

At 30 September 2021 the charity had received notification of entitlement to a share of a legacy estate. The monetary vaiue of the legacy cannot be measured reliably and therefore no income has been recognised in these financial statements. The legacy will be recognised as income when the criteria for income recognition is met.

  1. RELATED PARTY DISCLOSURES

The following payments were made to trustees during the year, in addition to any reimbursement of expenses disclosed in note 8:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2021|2020| |£|£| |P|Swann|Speaker fees|380|-| |M|Thomas|Speaker fees|120|-|

----- End of picture text -----

Aggregate donations from trustees in the year amounted to £1,490 (2020: £4,150).

The Movement controls the Evangelical Movement of Wales Trust Limited due to its ability to approve the appointment of the Evangelical Movement of Wales Trust Limited's directors. Transactions between the two parties during the year were as follows:

Donations receivable from Evangelical Movement of Wales Trust Limited amounted to £3,658 (2020: £3,300). The amount outstanding at the year end was £51 (2020: £1,500).

The Movement shares trustees in common with the Emmanuel Evangelical Church, the Heath Evangelical Church and the Borras Park Evangelical Church. Transactions between the parties during the year were as follows:

Donations receivable from the Emmanuel Evangelical Church amounted to £781 (2020: £1,037). Donations receivable from the Heath Evangelical Church amounted to £3,316 (2020: £1,160). Donations receivable from the Borras Park Evangelical Church amounted to £2,295 (2020: £Nil).

Page 22