**REGISTERED CHARITY NUMBER: 222407**
## **REPORT OF THE TRUSTEES AND**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **FOR**
## **EVANGELICAL MOVEMENT OF WALES**
MHA Elfed House Oak Tree Court Cardiff Gate Business Park Cardiff CF23 8RS
**EVANGELICAL MOVEMENT OF WALES**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 5|
|**Report of the Independent Auditor**|6 to 7|
|**Statement of Financial Activities**|8|
|**Balance Sheet**|9|
|**Cash Flow Statement**|10|
|**Notes to the Cash Flow Statement**|11|
|**Notes to the Financial Statements**|12 to 21|
**EVANGELICAL MOVEMENT OF WALES**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022**
The trustees present their report with the financial statements of the charity for the year ended 30 September 2022. 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**
These are as follows:
- a) The promotion of a true and faithful witness to the fundamental truths of the Christian faith (as outlined in the Doctrinal Belief in Clause 3) and to the essential spiritual unity of those who subscribe to it.
- b) To bring others to a personal knowledge of the Lord Jesus Christ, and to encourage such to live a godly life. c) To foster evangelism, experiential religion and a concern for revival.
- d) To provide means for uniting and co-ordinating the witness and fellowship of evangelical churches, fellowships and individual Christians.
- e) The formation and supervision of evangelical fellowships.
- f) The publication, distribution and sale of English and Welsh literature consistent with the Doctrinal Belief of the Movement and to facilitate the same to open such shops and other outlets as may be necessary for these purposes. Provided that the Movement shall not undertake any permanent trading which is not ancillary to the objects described above.
- g) To provide Christian workers who subscribe to the Movement's Doctrinal Belief with advice and support.
- h) To provide theological education and training for persons aspiring to Christian service within the evangelical constituency.
- i) To co-operate with other bodies, at home and abroad, which subscribe to the Movement's Doctrinal Beliefs in the furtherance of the foregoing Aims and Objectives.
- j) To help Christians think and act biblically regarding the world in which we live.
- k) Subject to any consents required by law, to borrow and raise money in any manner whether with or without security or any public appeal to facilitate the achievement of the objects.
- l) To invest surplus monies from time to time in such manner as is allowed by law.
- m) To do all such other lawful things as are necessary for the achievement of the objects.
## **Significant activities**
**The Movement serves churches. We continue to serve the church by:**
- supporting, training, encouraging and developing church leaders;
- resourcing and training churches and Christians with Bible-based, gospel-centred resources;
- organising conferences and events that teach the Bible and promote Christian unity by bringing together people from a variety of different churches;
- running camps and other ministries for young people;
- supporting churches in mission and evangelism;
- encouraging prayer, particularly for Wales.
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, Neath and Wrexham 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.
Page 1
**EVANGELICAL MOVEMENT OF WALES**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities**
Following the COVID-19 pandemic, 2021/'22 has seen a return to "normal" activities. We are grateful to God that we have been able to do this, and have discerned a hunger among Christians for face-to-face fellowship.
## **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 with roughly 1,000 attending the English conference in person, and 300 attending the Welsh conference. In addition to this, many more watched online. The South Wales Ladies Conference was attended by around 100 ladies.
## **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. 19 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 continues its hybrid delivery with some students and lecturers joining from off-site locations. Our Pastors' Wives Annual Conference restarted in Bala with around 25 women attending. Our Welsh and English Residential Ministers' Conferences resumed with roughly 70 and 20 men attending, respectively.
## **3 Serving the Church through running camps and other ministries for young people**
Over the course of the year we ran 14 residential camps, attended by over 500 young people. It was particularly heartening to see the hunger in the young people for the camps after COVID.
## **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 Cylchgrawn 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 continue, but sales are still below prepandemic levels.
## **5 Serving the Church through supporting churches in Mission and Evangelism**
We produced and distributed 50,000 of our evangelistic magazines, a reduction on the previous year, for use by churches, and at national events such as the National Eisteddfod, the Royal Welsh Show and the Hay Festival.
## **6 Serving the Church through encouraging prayer for Wales**
We continue to encourage prayer by means of monthly prayer letters and bulletins. In addition, we have continued to produce daily devotions, but with a reduced frequency, and have started sharing information about local church needs.
## **FINANCIAL REVIEW**
## **Financial position**
The attached financial statements set out the income and expenditure of the charity for the year to 30 September 2022 and the postilion at the year end.
The Movement reported a surplus for the year of £47,505, compared to £69,022 in the previous year.
## **Principal funding sources**
While income from ministries has recovered, it has not yet reached pre-pandemic levels. We continue to be grateful for the generous giving of our supporters, and recognise that all these resources ultimately are provided by our God.
## **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.
## **Reserves policy**
The total funds of £1,931,382 include £75,344 which are held for restricted purposes as shown in the notes to the accounts. A further £1,377,193 has been designated for specific purposes, set out in the same note. These designated funds comprise of fixed assets, stock and cash. The remaining £478,845 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.
Page 2
**EVANGELICAL MOVEMENT OF WALES**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **FINANCIAL REVIEW**
## **Risk management**
The principal risks facing the Movement are financial risk and the risks associated with the safeguarding of children and the vulnerable.
In summer 2022, our volume of activity was significantly increased post-pandemic. We are grateful for good numbers of suitable volunteers. While the overall activity level, and the Movement's dependence on gifts continues, the trustees are of the opinion that the Movement will be able to continue into the future.
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.
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 have performed a thorough periodic review of our safeguarding policy and procedures with the input and advice of Christian Safeguarding Services and have updated our safeguarding training.
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:
- a Considering the best way to provide pastoral support for ministers and advise to Churches
- .
- b Appointing a Youth Resources Development Worker to develop materials for young people and to provide . support and networking for Church youth leaders.
2. In the longer-term:
- a Developing a Youth Leaders network;
- .
- b Assessing the needs of elders and deacons and how they can best be supported;
- .
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The Evangelical Movement of Wales/Mudiad Efengylaidd Cymru (hereinafter referred to as the Movement) 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.
Page 3
**EVANGELICAL MOVEMENT OF WALES**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure**
Members of the Management Board are the Movement's trustees. They have full and final responsibility for the formulation and implementation of 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 Welsh-speaking members, in order to reflect the nature of the Movement's work in the two languages.
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:
- Charity Commission booklet CC3 and the related "Jigsaw".
- The Charity Governance Code prepared by the Charity Governance Code Steering Group.
- The charity's Constitution and Standing Orders.
- The charity's key policies: Safeguarding, Personnel, and Health and Safety.
- Reports on the charity's financial position and an explanation of its most recent audited accounts.
- The charity's Statement of Doctrinal Belief.
- The current and future plans of the charity.
## **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.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 222407
## **Principal address**
Waterton Cross Business Park South Road Bridgend Bridgend CF31 3UL
## **Trustees**
Dr D Norbury re-appointed July 2021 Rev J Bailey re-appointed July 2021 Dr D E Davies re-appointed July 2021 Rev M Francis re-appointed July 2021 Parch E James re-appointed July 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 M Thomas General Secretary - appointed 1 January 2018
Page 4
EVANGELICAL MOyEMEKf OF WALES
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 30 SEPTEMBER 2022
REFERENCE AND ADMINISTrATIVE DETAILS
Auditors
MHA
Elfed HoLtse
Oak Tree Court
Cardiff Gate Business Park
Cardiff
CF23 8RS
Banke
HSBC Bank PIC
13 Dunraven Place
BRIDGEND
SF31 1JQ
STATEMENT OF TRUSTEES. RESPONSIBILMES
The trustees are 5nsible preparing the Report of the Tfttst8as and Ihè finanoal ststèmants in accordance with
applicable law 8nd United KIngdn Accounting stalars (unt Gen•ralty AClwt Acts)unting Practi1.
Thè law 8N)licAbltr to tharities in Engknd and Wath. thè Chaiiliès Ad 11. Ch*ity {Aewunts aThJ Reports)
R8gulations 2008 and the provisicfis of the trust daèd r8quire$ tt* Injsttss to prepare finaw81 slatèm8nts for eath
financial year whith give a true and fair view ol thè state of 8ffaI of th8 charrty and of the in(%Mning rtsourc*s and
pplrcab.on of res(xJrces. in(*MJing the inojrne aThJ eX[*ThJra. of Ihè tharity fi* th8t In preparing those finana81
ststements. the trust8•s arè r¢quired to
select suitable accntiftg and Ihen appty thern ¢))nsity.
observe the meihods and prip1&S in Ih• Charity SORP:
makè judgements and estimates thal are reasonable aThJ
state whether atvtitsbl8 8w)untirwJ standards have been Ic4kh¥ed. suL¥ect to any malerial dèpartures disdoséd 8nd
explainéd in the finan(>al ststements-
prepare Ihe finan(ial 51atanents r)n ts wing ¢xrKem bas urtths it is inwropriate to presume that thè charity will
ct¢ntinue in business.
The Injstees are resp¢Ible for kwng proper acoyjnting rec(Kts lch di£L*ts& with reas0rA# arxyJrHry at any time
the financial position of the charity arKI to en8e them to ensure ihat the financial slalements compty vAih thè Charitiès
Act 2011, tho Charity IAttx)unts and Rèwmts) R0gylaliS 2008 thtr PTh1sks of the trust d*J. They are also
responsiblè for safeguardino thè assats of th8 dwity aThJ ho& for lakry roasuwbl8 $teps for Ihe prevention and
delec¢iw of Irdud and othor irrogu181itiès.
A4)proved by cffder ofthe Board of Tn on 28 Juty 223 and swJned cffi its behalf by.
Rev M Thomas- Trustee
Pap5
**REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF EVANGELICAL MOVEMENT OF WALES**
## **Opinion**
We have audited the financial statements of Evangelical Movement of Wales (the 'charity') for the year ended 30 September 2022 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 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:
- give a true and fair view of the state of the charity's affairs as at 30 September 2022 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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**
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 charity'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 other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. The trustees are responsible for the other information.
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**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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 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.
Page 6
**REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF EVANGELICAL MOVEMENT OF WALES**
## **Auditor 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 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 Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
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. We addressed these risks by carrying out specifically targeted procedures, which included:
- Enquiries of management, those charged with governance around actual and potential litigation and claims;
- - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.;
- Reviewing minutes of meetings of those charged with governance;
- Evaluating the reasons for any large or unusual transactions;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.to underlying supporting documentation.
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 non-compliance with regulation. The 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 misrepresentations.
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.
MHA Statutory Auditor
MHA is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. CARDIFF, United Kingdom CF23 8RS
Date: ... 28 July 2023 ..........................................
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 7
**EVANGELICAL MOVEMENT OF WALES**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
5
Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries
Investment income
4
Other income
**Total**
**EXPENDITURE ON**
**Charitable activities**
6
Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries
Other
**Total**
Net gains on investments
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
As previously reported
Prior year adjustment
11
**As restated**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
77,647
127,957
15,286
88,477
180,057
122,443
40,050
378
19,514
671,809
150,318
36,212
79,313
207,004
100,010
81,150
-
654,007
-
17,802
1,932,189
(93,953)
1,838,236
1,856,038|Restricted
funds
£
85,229
-
-
-
-
-
-
-
-
85,229
21,125
575
8,560
1,060
12,413
11,793
-
55,526
-
29,703
45,641
-
45,641
75,344|2022
Total
funds
£
162,876
127,957
15,286
88,477
180,057
122,443
40,050
378
19,514
757,038
171,443
36,787
87,873
208,064
112,423
92,943
-
709,533
-
47,505
1,977,830
(93,953)
1,883,877
1,931,382|As restated
2021
Total
funds
£
331,790
71,409
20,173
40,076
9,312
13,922
18,554
40
-
505,276
155,474
51,032
99,994
37,012
34,746
67,823
1,066
447,147
10,893
69,022
1,814,855
-
1,814,855
1,883,877|
|---|---|---|---|---|
The notes form part of these financial statements
Page 8
EVANGELICAL hlOVEMENT OF WALES
BALANCE SHE
30 SEPTEMBER 2022
A6 reslal
2021
Total
funds
2022
Total
funds
funds
Nolas
FIXED A&SETS
Tangible assets
Inveslmgnt prop8rty
12
13
1,213,382
1.213.382
10.893
1.226.346
10,893
1224275
1.224,275
1,237.239
CURRENT ASSETS
Stocks
Debiors
Cash at bk
14
15
89.029
74.998
89.029
74,998
117.260
50.392
545.150
75,344
814.511
75.344
712.802
CREDITORS
Arnounts tslling dve wthin cTh year
16
{1&2.748)
(182.7481
(66.1641
NET CURRETr K8SETS
631.763
75.344
707.107
646.638
TOTAL ASSETS LESS CURRE1 LIABILtnES
1.856.038
75.344
1.931.382
1.883.877
1.931.382
1.883.877
FUNOS
UnstrICted fvnd5
Restricted lunds
18
1.856,038
1.836,236
45,641
TOTAL FUNDS
1.883.87T
Thè finanaal statements were aKVO¥gd ty Boanl d Tnth and auttwsed for issue on 28 Juty 2023 aThJ wero
gned ts behalf ty.
R•v M Thomas. Trustse
The notes part ofthew fmandd Staterrthts
Page 9
**EVANGELICAL MOVEMENT OF WALES**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|2022
£
182,063
182,063
(1,763)
-
378
(1,385)
180,678
545,150
725,828|2021
£
79,514
79,514
3,725
148,934
40
152,699
232,213
312,937
545,150|
|---|---|---|
The notes form part of these financial statements
Page 10
**EVANGELICAL MOVEMENT OF WALES**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Depreciation charges
Revaluation of investments
Loss on disposal of fixed assets
Interest received
Decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operations**
**2.**
**ANALYSIS OF CHANGES IN NET FUNDS**|As restated
2022
2021
£
£
47,505
69,022
14,727
14,890
-
(10,893)
-
1,066
(378)
(40)
28,231
22,588
(24,606)
16,437
116,584
(33,556)
182,063
79,514|
|---|---|
||At 1/10/21|Cash flow|At 30/9/22|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|545,150|180,678|725,828|
||545,150|180,678|725,828|
|**Total**|545,150|180,678|725,828|
The notes form part of these financial statements
Page 11
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **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.
## **2. 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 Ireland' 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.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
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.
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.
Page 12
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **2. ACCOUNTING POLICIES - continued**
## **Expenditure**
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 Freehold property 2% straight line
The freehold property is depreciated over is expected useful life of 50 years, unless the trustees consider the residual value is not less than the cost.
## **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.
## **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 dependant 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.
Page 13
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **2. ACCOUNTING POLICIES - continued**
## **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.
## **3. DONATIONS AND LEGACIES**
|Donations
Legacies
Grants
Grants received, included in the above, are as follows:
Swansea City Council
Neath Port Talbot Council
Wrexham County Borough Council
Gwynedd Council
Job Retention Scheme|2022
£
137,373
21,503
4,000
162,876
2022
£
2,000
2,000
-
-
-
4,000|2021
£
144,054
63,597
124,139
331,790
2021
£
14,000
10,000
10,000
29,000
61,139
124,139|
|---|---|---|
Page 14
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **4. INVESTMENT INCOME**
|**INVESTMENT INCOME**|||
|---|---|---|
|Deposit account interest
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Bookshop sales
Bookshops
Press & magazine sales
Press and magazines
Conference centre fees
Conference centre
Conferences income
Conferences
Camps income
Camps
Other ministries
Other ministries|2022
£
378
2022
£
127,957
15,286
88,477
180,057
122,443
40,050
574,270|2021
£
40
2021
£
71,409
20,173
40,076
9,312
13,922
18,554|
|||173,446|
## **5. INCOME FROM CHARITABLE ACTIVITIES**
## **6. CHARITABLE ACTIVITIES COSTS**
|Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries|Direct
Costs
£
159,469
18,663
83,370
166,931
55,822
45,525
529,780|Support
costs (see
note 7)
£
11,974
18,124
4,503
41,133
56,601
47,418
179,753|Totals
£
171,443
36,787
87,873
208,064
112,423
92,943|
|---|---|---|---|
||||709,533|
## **7. SUPPORT COSTS**
|Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries|Salaries
£
4,840
8,662
2,123
19,616
27,004
22,674
84,919|Governance
Other
costs
£
£
6,849
285
8,952
510
2,255
125
20,362
1,155
27,935
1,662
23,409
1,335
89,762
5,072|Totals
£
11,974
18,124
4,503
41,133
56,601
47,418|
|---|---|---|---|
||||179,753|
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.
Page 15
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **8. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 30 September 2022 or for the period ended 30 September 2021.
## **Trustees' expenses**
There were payments made of £3,721 (2021 - £269) to 4 (2021 - 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.
## **9. STAFF COSTS**
|Wages and salaries
Social security costs
Pension costs|2022
£
164,472
10,862
2,874
178,208|2021
£
194,320
8,387
2,947
205,654|
|---|---|---|
Total remuneration paid to key management personnel in the year amounted to £40,616,(2021: £42,728). Redundancy payments of £Nil (2021: £9,090) were paid during the year.
The average number of staff employed by the charity during the year was 11 (2021: 14).
No employee received remuneration in excess of £60,000 during the year.
## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries
Investment income
**Total**
**EXPENDITURE ON**
**Charitable activities**
Bookshops
Press and magazines
Conference centre
Conferences
Camps
Other ministries
Other
**Total**|Unrestricted
funds
£
140,527
71,409
20,173
40,076
9,312
13,922
18,554
40
314,013
51,451
50,247
36,471
34,989
30,133
57,327
1,066
261,684|Restricted
funds
£
191,263
-
-
-
-
-
-
-
191,263
104,023
785
63,523
2,023
4,613
10,496
-
185,463|Total
funds
£
331,790
71,409
20,173
40,076
9,312
13,922
18,554
40
505,276
155,474
51,032
99,994
37,012
34,746
67,823
1,066
447,147|
|---|---|---|---|
Page 16
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
|Net gains on investments
**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
10,893
63,222
1,775,014
1,838,236|Restricted
funds
£
-
5,800
39,841
45,641|Total
funds
£
10,893
69,022
1,814,855
1,883,877|
|---|---|---|---|
## **11. PRIOR YEAR ADJUSTMENT**
A prior year adjustment has been made to account for depreciation on the freehold property over the expected useful life of 50 years. The impact of this adjustment on the Balance Sheet at 30 September 2021 is to reduce the net book value of the freehold property by £93,953 and the impact on the Statement of Financial Activities is to increase the depreciation charged by £8,242.
## **12. TANGIBLE FIXED ASSETS**
## **13.**
|**COST**
At 1 October 2021
Additions
At 30 September 2022
**DEPRECIATION**
At 1 October 2021 (as restated)
Charge for year
At 30 September 2022
**NET BOOK VALUE**
At 30 September 2022
At 30 September 2021 (as restated)
**INVESTMENT PROPERTY**
**FAIR VALUE**
At 1 October 2021
and 30 September 2022
**NET BOOK VALUE**
At 30 September 2022
At 30 September 2021
Fair value at 30 September 2022 is represented by:
Valuation in 2022|Freehold
property
£
1,306,171
-
1,306,171
93,953
8,242
102,195
1,203,976
1,212,218|Equipment
£
51,002
1,763
52,765
36,874
6,485
43,359
9,406
14,128|Totals
£
1,357,173
1,763
1,358,936
130,827
14,727
145,554
1,213,382
1,226,346
£
10,893
10,893
10,893
£
10,893|
|---|---|---|---|
|||||
Page 17
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**14.**
**STOCKS**
2022
£
Stocks
89,029
**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2022
£
Trade debtors
4,767
Other debtors
21,693
Prepayments and accrued income
48,538
74,998
**16.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2022
£
Trade creditors
5,484
Social security and other taxes
-
VAT
36,024
Other creditors
9,456
Accruals and deferred income
131,784
182,748
Included within accruals and deferred income above is the following deferred income:
2022
£
Camps
-
The deferred income relates to income received in advance of service delivery.
**17.**
**LEASING AGREEMENTS**||2021
£
117,260
2021
£
90
1,142
49,160
50,392
2021
£
1,151
3,593
29,647
12,706
19,067
66,164
2021
£
3,330|
|---|---|---|
||||
||||
||||
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
Between one and five years|2022
£
16,654
-
16,654|2021
£
19,706
1,469|
|---|---|---|
|||21,175|
Operating lease payments recognised as an expense in the year amounted to £21,771 (2021: £19,372)
Page 18
continued...
**EVANGELICAL MOVEMENT OF WALES**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **18. MOVEMENT IN FUNDS**
|At
1/10/21
£
**Unrestricted funds**
General fund
419,848
Stock fund
117,260
Capital asset fund
1,331,192
BYG Designated
Development fund
63,889
1,932,189
**Restricted funds**
BYG Development fund
-
Auntie Bessie Camp
Support fund
20,930
JE Davies flowers fund
16,334
Llwybrau fund
3,498
Shows and Fairs
Evangelism
4,879
Wrexham bookshop
-
45,641
**TOTAL FUNDS**
1,977,830
Net movement in funds, included in the above ar
**Unrestricted funds**
General fund
**Restricted funds**
Specific donations
BYG Development fund
Auntie Bessie Camp Support fund
JE Davies flowers fund
Llwybrau fund
Wrexham bookshop
**TOTAL FUNDS**|Prior
year
adjustment
£
(93,953)
-
-
-
(93,953)
-
-
-
-
-
-
-
(93,953)
e as follows:||Net
movement
in funds
£
17,802
-
-
-
17,802
330
(302)
2,675
14,000
-
13,000
29,703
47,505
Incoming
resources
£
671,809
50,824
330
4,400
2,675
14,000
13,000
85,229
757,038||Transfers
between
funds
£
135,148
(28,231)
(106,917)
-
-
-
-
-
-
-
-
-
-
Resources
expended
£
(654,007)
(50,824)
-
(4,702)
-
-
-
(55,526)
(709,533)|At
30/9/22
£
478,845
89,029
1,224,275
63,889
1,856,038
330
20,628
19,009
17,498
4,879
13,000
75,344
1,931,382
Movement
in funds
£
17,802
-
330
(302)
2,675
14,000
13,000
29,703
47,505|
|---|---|---|---|---|---|---|
||||||||
||||||||
||||||||
||||||||
Page 19
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **18. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Stock fund
Capital asset fund
BYG Designated Development fund
**Restricted funds**
Auntie Bessie Camp Support fund
JE Davies flowers fund
Llwybrau fund
Shows and Fairs Evangelism
**TOTAL FUNDS**|At
1/10/20
£
88,552
139,848
1,480,673
65,941
1,775,014
16,930
14,534
3,498
4,879
39,841
1,814,855|As restated
Net
movement
in funds
£
54,381
-
10,893
(2,052)
63,222
4,000
1,800
-
-
5,800
69,022|
Transfers
between
funds
£
276,915
(22,588)
(254,327)
-
-
-
-
-
-
-
-|As restated
At
30/9/21
£
419,848
117,260
1,237,239
63,889
1,838,236
20,930
16,334
3,498
4,879
45,641
1,883,877|
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Capital asset fund
BYG Designated Development fund
**Restricted funds**
Specific donations
BYG Development fund
Auntie Bessie Camp Support fund
JE Davies flowers fund
**TOTAL FUNDS**|As restated
Incoming
Resources
resources
expended
£
£
314,013
(259,632)
-
-
-
(2,052)
314,013
(261,684)
183,818
(183,818)
1,645
(1,645)
4,000
-
1,800
-
191,263
(185,463)
505,276
(447,147)|As restated
Gains and
Movement
losses
in funds
£
£
-
54,381
10,893
10,893
-
(2,052)
10,893
63,222
-
-
-
-
-
4,000
-
1,800
-
5,800
10,893
69,022|
|---|---|---|
## **DESIGNATED FUNDS:**
## **Capital asset fund**
The capital asset fund represents the fixed assets of the charity.
## **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.
Page 20
continued...
**EVANGELICAL MOVEMENT OF WALES**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **18. MOVEMENT IN FUNDS - continued**
## **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.
## **19.**
## **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 £2,874 (2021: £2,947). As at 30 September 2021 there were contributions outstanding of £Nil (2021: £510).
## **20.**
## **RELATED PARTY DISCLOSURES**
The following payments were made to trustees during the year, in addition to any reimbursement of expenses disclosed in note 8:
|||2022|2021|
|---|---|---|---|
|||£|£|
|P Swann|Speaker fees|145|380|
|M Thomas|Speaker fees|75|120|
Aggregate donations from trustees in the year amounted to £2,300 (2021: £1,490).
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 £3,060 (2021: £3,658). The amount outstanding at the year end was £162 (2021: 51).
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 £400 (2021: £781). Donations receivable from the Heath Evangelical Church amounted to £1,245 (2021: £3,316). Donations receivable from the Borras Park Evangelical Church amounted to £2,030 (2021: £2,295).
During the year, professional fees of £15,944 (2021: £15,432) were paid to Borras Park Evangelical Church as a contribution towards the salary of M Thomas.
Page 21