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2021-03-31-accounts

Church Army (The) Reports and Financial Statements Year Ended 31 March 2021

Charity registration numbers: England & Wales: 226226 Scotland: SC040457 Republic of Ireland: 20152604

Company registration number: 37169

Church Army (The) Year Ended 31 March 2021

Page
Charity Reference and Administrative Details 1
Welcome from the Chief Executive 3
4
27
Group Statement of Financial Activities 31
Society Statement of Financial Activities 32
Balance Sheets 33
Group Statement of Cash Flows 34
Society Statement of Cash Flows 35
Notes to the Financial Statements 36

Church Army (The) Year Ended 31 March 2021

Patron HM The Queen President The Rt Rev & Rt Hon Lord Williams of Oystermouth Vice Presidents The Rt Rev Bruce Cameron The Most Rev Dr Richard Clarke The Most Revd John Davies The Rt Rev Lord Eames of Armagh The Rt Rev Dr Alan Harper OBE The Most Rev Dr Michael Jackson Dr Bill Lattimer The Most Rev Barry Morgan Pam Rhodes The Most Rev & Rt Hon John Sentamu June Simpson The Most Revd Mark Strange Roy Totten The Rt Rev Michael Turnbull The Most Rev & Rt Hon Justin Welby Trustees and Board Chair: The Most Rev & Rt Hon Stephen Cottrell Vice Chair: The Rt Rev Guli Francis-Dehqani (appointed 7 Sept 2020) Honorary Treasurer: John Whitfield The Rt Rev Alan Abernethy The Ven Dr John Applegate Christine Corteen (resigned 7 September 2020) The Rev Jude Davis (resigned 7 May 2020) Stephen Eccleston The Rt Rev Dr Robert Gillies Sister Kathy Green CA Revd Canon Lusa Nsenga-Ngoy The Rt Revd Joanna Penberthy The Ven Dr Peter Rouch (appointed 1 May 2021) Des Scott (appointed 07/05/2020 resigned 12 March 2021) Sister Karen Webb CA Captain Andrew Payne CA (appointed 11 November 2020) Karen West (appointed 19 March 2021) Chief Executive Des Scott (resigned 12 March 2021) The Ven Dr Peter Rouch (appointed 1 May 2021) Company Secretary Robin Webb (appointed 26 June 2020) Senior Leadership Team Des Scott Chief Executive (appointed 7 May 2020, resigned 12 March 2021) The Ven Dr Peter Rouch (appointed 1 May 2021) Robin Webb Chief Operating Officer (appointed 1 June 2020) The Rev Jude Davis Director of Ministry and Community Leader (appointed 1 June 2020) Captain Andrew Chadwick CA Dean of Community (resigned 31 March 2021) Captain Neville Willerton CA Director of Operations Dr Timothy Ling Director of Learning and Development Sister Sheelagh Easby CA Associate Member

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Church Army (The) Year Ended 31 March 2021

Registered office Wilson Carlile Centre
50 Cavendish Street
Sheffield
S3 7RZ
Telephone 0300 123 2113
Email: info@churcharmy.org
Auditor BHP LLP
Sheffield
Solicitors Cooper Burnett LLP
Anthony Collins Solicitors LLP
Bankers Barclays Bank PLC
Unity Trust Bank PLC
Actuaries First Actuarial PLC
Investment Managers Ruffer LLP
CCLA Investment Managers Limited
Charity registration numbers England & Wales: 226226
Scotland: SC040457
Republic of Ireland: 20152604
Company registration number 37169

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Church Army (The) Year Ended 31 March 2021

Welcome

For most people, the 2020/21 year has been a period like no other. For many, the impact of the pandemic has been experienced as a negative and challenges have abounded in every area of life. Nevertheless, it is my privilege to be able to introduce this Report and Accounts with celebration.

Church Army is an organisation and a body of particularly committed people, that exists to serve others who are in need, to do so in the name of the God of love, and to share the good news of that love as we do so. good news, most toughest challenges!

Many things have been knocked off course by the pandemic, but I am delighted to be able to say that amidst many common challenges, the work of Church Army has not been diverted; indeed, our work has grown and in places is notably stronger. We have continued to pursue our DARE strategy Doing, Advocating, Resourcing

Our centres of mission have responded this past year by focusing the support they offer on the growing and changing needs of their communities as they have lived through the reality of the pandemic. Indeed, we have not only sustained and developed in a responsive way, but we have also proactively launched new centres of mission in the height of the pandemic restrictions. More centres of mission exist than did a year ago. Our research team tracks our work and from this, we know that over this last year, 44% of those who have volunteered to help our work have not been from established church backgrounds. This attests to the widespread appreciation of what our centres of mission offer. Our forward momentum continues with plans for three more centres of mission now very advanced.

At our Marylebone Project for homeless women in London, the fantastic partnership that was developing last year between Church Army, Evening Standard, the Independent and Barclays Bank has matured. The 24 hour a day, seven days a week drop-in centre that it was aiming to create is now a reality. It is called The Sanctuary and we are planning its formal launch as I write this. Others, such as Selfridges, have also contributed to this and a broader range of funders are continuing to support our existing services. This is an extraordinary and highly effective collaboration that serves women in extreme need. We rejoice in it.

In Cardiff, our residential services for young people continue to enjoy an excellent reputation for the support they provide. The work of our Amber Project with young people wrestling with challenges in mental health and especially self-harm continued throughout the year, creatively using the potential of online support to achieve its goals.

These are high points in a highly effective year of work for Church Army and reflect areas in which we are deliberately investing. I am conscious also that the training and formation that Church Army offers is frequently taken elsewhere beyond our centres of mission and key projects. Church Army folk are a distinctive bunch. They are generous, risk-taking, accountable, collaborative, expectant, unconditional in what they offer, prayerful. These things are our values as an organisation, and those who have once been Church Army people continue to exhibit them. Whether or not directly employed by us, or making a contribution through other agencies and other spheres of life, they offer something distinctive. I celebrate this wider community that is Church Army.

I also celebrate the body of those who support what we are able to achieve. This includes trusts and foundations, statutory agencies and individual supporters and donors. The great achievements in this past year have only been possible because of that support. On behalf of the thousands of people whose lives have been impacted by our work, I offer to all our supporters our sincerest gratitude.

Peter Rouch, Chief Executive Officer

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Church Army (The) Year Ended 31 March 2021

The Trustees (who are also Directors of the charity for the purposes of the Companies Act) present their report and the audited financial statements of the charity for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement

Annual Report and Financial Statements of the charity.

The Financial Statements have been prepared in accordance with the accounting policies set out in notes 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 the Republic of Ireland published in October 2019.

Who is Church Army?

Church Army is a mission-focused community of people who are transforming lives and neighbourhoods through the work of evangelists, staff and supporters. We are committed to sharing the Christian faith through words and action in a variety of contexts across the British Isles and Ireland. Our evangelists and staff work beyond church buildings among some of the most broken, rejected and hurting people in society. We are also committed to building new forms of Christian community to reach people who have little or no experience of church. Much of our frontline work is carried out through our centres of mission. A centre of mission is a community of evangelists working together to enable evangelism and mission across a host diocese. They have four key strands to them:

We also carry out other frontline activities like Xplore, the Marylebone Project, Cardiff Residential Services and the Amber Project , all in fulfilment of our charitable objectives.

Our work includes:

Other key work includes:

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Church Army (The) Year Ended 31 March 2021

Our mission:

To enable people to come to a living faith in Jesus Christ and relieving poverty and distress.

Our vision:

through faith shared in words and action.

Our values:

Objectives and activities including achievements and performance Our DARE strategy: doing, advocating, resourcing and enabling evangelism

The following sections of this Annual Report will look at each of the four DARE objectives and how we are fulfilling them.

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Objective 1:

Doing Evangelism

Centres of Mission

At 31 March 2021 we had reached a total of 29 Centres of Mission, we aim to have 50 by 2027.

A year of COVID-19

During the 20/21 financial year, our projects and our Centres of Mission had to react and respond to multiple challenges that faced them with COVID-19 and lockdown. The nature of the changes was varied dependent on context and the needs of local communities but the restriction of social gathering, increasing isolation of the vulnerable and the financial crunch to communities meant that our work had to go through a significant transition and respond quickly to the needs. Despite the challenge of this, there have been moments of celebration. The increase of projects that are food provision related demonstrates the way our work has responded quickly to the need of local communities.

The development of an online presence for many of our projects and Centres of Mission has been another successful transition. New communities have been launched and new individuals reached through projects and Centres of Mission being creative in how they relate to others during lockdown.

Headlines from recent research among 26 of our Centres of Mission by the Church Army Research Unit (CARU) gave an insight into the work undertaken by our CoMs over the last year which included:

Social Impact

Faith Impact

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ready to become a Christian which was amazing. It shows how important it is to invest in those relationships and how often it takes more than 2/3 years for people to really feel our presence

For more details and insight into the breadth and impact of our work please visit www.churcharmy.org where you can also access our Impact Report.

New Centres of Mission

Notwithstanding the impact of COVIDMission and in the 2020/2021 financial year we launched 5 new centres of mission, 2 in England, 2 in Wales and one in Northern Ireland in the following areas:

The Langley Centre of Mission was launched in September 2020 as a strategic partnership between the Diocese of Birmingham and Church Army. This Centre of Mission is led by Val Legg and with Simeon Jarvis as the Pioneer Evangelist.

The Rochdale Centre of Mission was launched in March 2020 in a partnership with the Diocese of Manchester. The Centre of Mission is led by Lead Evangelist Bing Liu. We are waiting to make an appointment of a Pioneer Evangelist.

The Llanelli Centre of Mission , launched in early 2021 as part of Impact 242, an exciting strategy of St cese to create new worshipping communities for the unchurched. Led by Rob Lowe working with Michelle Lloyd, the pioneer evangelist, this Centre of Mission works in the Morfa estate in Llanelli.

The Cross Hands Centre of Mission , This is another Centre of Mission opened as part of the Impact 242 strategy. It is led by Esther Lockley and with Ruach Mitchell as pioneer evangelist. Both Llanelli CoM and Cross Hands CoM join the already launched Haverfordwest Centre of Mission as part of Impact 242.

The Newry Centre of Mission was launched in August 2020. The Centre of Mission is led by Lead Evangelist Scott McDonald working with Pioneer Evangelist Laurence Bellew. This Centre of Mission is in partnership with Down and Dromore diocese.

In launching new centres of mission, we appoint a Lead Evangelist, later appointing a Pioneer Evangelist with unique skills to work with the Lead Evangelist to identify and break into the needs of the area.

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Where are we doing evangelism? Activities in England, Ireland, Scotland and Wales

Marylebone Project

The main focus throughout this financial year has been maintaining the safety of our women and providing support to them in dealing with the COVID-19 lockdown restrictions. This meant that for a period of time, all group activities needed to stop and these were replaced with us providing as many in-house individual activities that we could arrange and providing resources to help maintain good mental health and ways in which the women could pass the time. We provided goodie bags containing reading books, puzzle books, art and craft ideas and materials, baking bags of ingredients and recipes, healthy eating tips and a weekly newsletter with quizzes, crosswords and health and wellbeing tips.

Safety measures were implemented throughout the Project with an improved cleaning regime, hand sanitiser being available in all areas, personal protective equipment (PPE) being available to all, redesigning of office/meeting spaces, protective screens being installed, onsite testing twice weekly for all staff and women and an onsite vaccination session.

These measures proved to be effective in managing the impact of COVID-19 in that none of our women died and very few experienced suspected or confirmed symptoms. We worked in partnership with the local authority and health service and women with suspected and confirmed symptoms were treated at a local COVID-19 centre for the isolation period and then returned to the Project. Women who were contacts of the suspected/confirmed cases were placed in isolation within the Project for the designated period of time and we provided all meals to them in the flatlets whilst also continuing to provide them with daily contact via telephone call or video call.

The drop-in centre:

The drop-in centre remained closed as a physical space for the women to visit for the majority of the reporting period, but we maintained a drop in and collect service. Although the local authority supported many rough sleepers into staying in locally sourced hotels, this service was not something that all rough sleepers felt comfortable in accessing and not all hotels provided the provisions that were needed. As such, some women continued to visit the drop in to collect basic provisions of food, clothing, toiletries etc.

We used the period of the drop-in centre being closed to refurbish it and make it a fully fit for purpose centre for women who are rough sleeping. Significant improvements have been made to the space such as creating a brighter and more inviting reception area, installing a brand-new shower room and a toilet, installing a new kitchen, refurbishing the training and IT room, and converting the previous laundry room to a new advice office, overall, providing a therapeutic and relaxing space for our service users. The newly refurbished centre was re-opened on 1st March 2021.

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een coming to the Centre for a very long time, I saw how it was before and I am

leave my temporary accommodation. I love the way the Centre looks; it is a very calming

We are working towards the Centre being open 24 hours a day, 7 days a week from September 2021. We are truly thankful for the financial support to make this resource for vulnerable women possible, including the generous support agreed at the year end from the London Evening Standard and Barclays who are providing a grant of £473,000 to enable the move to 24-7 operation.

Due to the plans for opening the centre 24 hours, 7 days a week from September 2021 it was decided that a day to day onsite General Manager was needed for the Project and the existing Operations Manager was appointed to this new post and a new Operations Manager recruited

Every year the Marylebone Project sets a challenge to support as many women as possible into moving into independent living and last year we increased our number from 37 in 2018-2019 to 55 in 2019-2020. This current year has seen another significant rise with 95 women being resettled into independent living. This is partly due to the local authority making a greater number of properties available so that our vacant bed spaces could then be made available to those women who were supported from moving from rough sleeping. This is a testament to our willingness to work in partnership for the benefit of our women and also what can be achieved when we all work together. Overall, the project provided nearly 39,000 bed nights this year offering shelter, hope, safety and support to women who would otherwise have to remain on the streets or in situations detrimental to their well-being.

For the fifth consecutive year, 100% of the women who have been resettled into independent living have maintained their tenancy and accommodation and this is even more of a testament of the staff team and their commitment, compassion and support for the women during a year of pandemic.

Despite the additional challenges that we have experienced this year, the staff team continue to be committed in offering their skills and specialist support to address the variety of challenges and demands

Salem (not her real name) says -

be given the opportunity to better myself, I am now doing a Business Skills course and I will run

Church Army Ty Bronna

During the year key achievements at Church Army Ty Bronna included:

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After young people are granted move-on accommodation at Ty Bronna they are then referred into Church Army Visiting Support (CAVS). This service provides outreach and tenancy related support to young people living independently in the community. Young people are granted either visiting support accommodation or floating support accommodation when transitioning from Ty Bronna. Visiting support accommodation consists of six self-contained flats that serve as a training accommodation for young people, before they are referred onto permanent accommodation. These six visiting support flats offer more intense support to young people, who although have the necessary skills to live alone, may not be able to sustain a tenancy. At the start of our new partnership, we took on six young people into the six flats, all of whom have now made a positive move-on into long-term council/housing association accommodation successfully. CAVS are also responsible for providing support to young people who move into the six flats from other supported housing accommodation within the partnership. Alongside this CAVS provides floating support to young people who are deemed ready to hold their own tenancy and be referred straight into long-term council/housing association accommodation. CAVS offers young people up to two years tenancy related and outreach support. During which time it is expected that the supporting relationship between young people and CAVS naturally comes to an end and where young people feel ready to live completely independently.

Ty Bronna and CAVS are only one entity who provide support to homeless young people in Cardiff. As well as Church Army, The Salvation Army and Taff Housing Association together comprise Cardiff Young Persons Supported Housing Accommodation Partnership. This partnership typically supports 106 young people in four supported housing projects. All four projects are then responsible in securing young people independent living accommodation within the community and transition to an outreach support service. This new partnership working with Cardiff County Council started on 13th May 2019 and between the start date and 9th May 2021 the partnership supported a total of 346 young people.

Within this time, 19 young people moved out of Ty Bronna and into a variety of independent living environments, 13 of these were housed within our CAVS accommodation, and 6 housed straight into a training tenancy flat provided by Cardiff Council. 8 young people have succeeded in maintaining their own council/housing association tenancies for over 2 years.

The Amber Project

Throughout the pandemic The Amber Project has continued to support young people who have experience of self-harm. Prior to the first lock down we contacted every young person that we worked with, explaining the changes but stressing that as a project we were still there for them, we then entered a steep learning curve during which we adapted the way in which we worked to engage with young people remotely.

At the start of the pandemic we contacted 73 young people who were actively engaging with the project and despite closing referrals during the first lockdown the project took 121 new referrals during the financial year.

Demand in the early days was very much for contact with our support workers and for emotional support from our counselling team. Some of our young people were shielding and we were able to organise food parcels and delivery of medication. Other were experiencing considerable feelings of isolation and loneliness and the risk of self-harm and suicide escalated in vulnerable young people whose routine and usual coping techniques had been removed.

We quickly recognised the need to maintain the sense of community which is an integral element of the project. We were fortunate enough to obtain a grant from the Voluntary Services Emergency Fund which allowed us to form a singing group, to offer online guitar sessions. and to increase our counselling provision.

experience of Amber: name changed to protect anonymity

I started the singing workshop back just before Christmas when I was really unwell and struggling with my mental health severely. I was referred upon leaving hospital after being sectioned, and since starting the workshops with the Amber Project, I have gained so much confidence in myself and an overall improvement in my wellbeing.

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The workshops have given me structure and something to look forward to each week. I have made friends and have received so much support from everybody running and attending the workshops. I now get up on a day I have a workshop and greet it with enthusiasm, and I look forward to all our projects. The Amber project has given me

Our theatre group met on-line and enabled young people to explore a number of issues that impacted upon them during lock-down. (The group is currently meeting out of doors, working on our 2021 pantomime Robin Hood: The Legend of Sherwood.).

While our Friday evening group continues to provide safe space on Friday evenings for young people to meet (all be it remotely) and to participate in various activities.

on the 7th June 2021. One of the first young people who accessed Belong has now become a volunteer with Constellation; he writes.

When I joined the Belong group, I was very isolated from the trans community. Coming to group with other trans young people was transformative for me; it gave me confidence and helped me to find my place amongst other trans people. It inspired me to start my own informal meetups with the people I met in Belong and as we all added friends of our own, and they added their friends, it grew into a strong and supportive community. Belong introduced me to my best friends and made me fall in love with the trans community - and now it's given me the opportunity to give back and mentor the next generation of trans youth. It's an absolute joy to work with the Church Army team and I count myself very lucky to be a Belong and team member. (R)

Sadly, we are seeing a marked increase in the complexity of need in young people who are referred to the project and we work most days with young people whose feeling of hopelessness and helplessness are in danger of overwhelming them, Undoubtedly, the pandemic will have long term consequences for the mental health of many young people, and we feel blessed that we are able to walk with them during these challenging times.

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Objective 2: Advocating Evangelism

In a year when many in-person church activities have been curtailed there have been fewer opportunities to get in front of audiences and advocate evangelism. Our online media activity has been all the more important as we have engaged with individuals, churches, and other organisations through the internet.

The work of our communications team constitutes a huge part of how we advocate evangelism. This is through not just printed material but online videos, websites, social media and other electronic communications. We continued with all of our existing channels of telling the stories of changed lives, of people being helped, of the enormous variety of work Church Army deliver, and we added new opportunities for people to directly engage with us through comment and online discussion.

Cuppa with a Key Worker, which started as the pandemic began to take hold grew and the monthly online by 5,500 unique viewers.

The podcast Everyone Everywhere, launched in December 2019 has continued to grow and had 1743 downloads in the year - 90.6% of which were from the UK and Ireland.

Being Salt and Light ran again as our Lenten reflection and challenge to people to get out and engage with their communities. This year it went audio and had a total of 1153 recorded downloads over Lent. This year

Films continue to be a significant way of storytelling which can engage with people and capture their imaginations. All the films we produce are used across a variety of channels including YouTube, Vimeo, our website, projects Facebooks pages etc. On Facebook alone our films had a total of 3,848 views (up from d

Our social media following continues to grow and we are mainly engaging with people through Facebook, Twitter and Instagram. Our current stats to date are:

----- Start of picture text -----
Platform Content Reach / Reactions Shares Click- New
Impressions (Likes & Throughs Followers
Comments)
Facebook Church Army (Organic - 208,192 7,125 1,378 2,278 210
self generated)
Facebook Church Army (Paid) 66,845 1,292 64 998
Twitter Church Army (Organic) 1,541,992 8,143 1,366 2,304 457
Instagram Church Army (Organic) 25,426 5,525 489 545
Facebook Centres of mission 270,334 1,912
Facebook Key Projects 5,991 23
Twitter Key Projects 85,644 344 144 188
Totals 2,204,424 22,429 2,952 6,257 3,147
----- End of picture text -----

Alongside all the visible output we have worked on a new website which launched in April 2021 and promises to provide a more streamlined and tailored experience to website users.

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Inspiring church leaders

Advocating evangelism to church leaders is a crucial part of our DARE strategy. In previous years our Senior Leadership, Research and Training teams have been involved in speaking at numerous events in the United Kingdom and Ireland, including engagements at conferences, theological colleges and diocesan events. Most of these events were cancelled during the year due to COVID-19 but Church Army staff presented at several online events as these emerged during the year.

Encouraging the wider church: Church Army speaking engagements

Encouraging churches in evangelism and inspiring them about our work is achieved through regular speaking engagements by our evangelists nationwide. These are both on Sunday morning services and events held during the week. In a typical year we will average approximately 100 speaking engagements. Last year was very different due to the closure of church buildings during the COVID-19 pandemic. Some churches migrated to online services and a small number welcomed our evangelists to speak about our work via Zoom.

Objective 3: Resourcing Evangelism

Resources and Leadership Development

Over the course of the year we developed the suite of resources we offer so that we now have resources focusing on:

This has involved refining existing resources and developing new ones under the following names:

Faith Pictures

Faith Pictures is a free resource designed to help Christians talk naturally about faith with their friends and neighbours. The previous version of FP was very successful, and so the name, session titles, and aims of the sessions have been retained while new ways of engaging have been added in. A brief explanation of the new structure of the course, along with other helpful information can be found at - https://churcharmy.org/resources/faith pictures/

Faith Shared

Faith Shared is a new resource, based on and developed from the Stepping Into Evangelism booklet. We found there was a need for a resource focused on local churches, and so we developed Faith Shared for use in churches, benefices, and ecumenical groups. It is designed to help those groups reflect on and plan for how to put mission and evangelism at the centre of what they do in a sustainable way. https://churcharmy.org/resources/faith-shared/

Faith Empowered

Faith Empowered had been developed from the pilot SHARE course run in partnership with the Diocese of St Edmundsbury and Ipswich. It is designed to train local lay leaders in evangelism over the course of a year, with a view to them developing the ministry of evangelism in their home congregation. We are aiming in the year 21/22 to have FE running in multiple dioceses with a presence in England, Scotland, and Wales.

The resources above were released as a suite with promotional activity around the free-to-access Faith Pictures and Faith Shared. This included webinars, social media promotion, focus in Catalyst, and focus in our supported communications. After reflecting on these, we will schedule regular webinars to support the continued promotion of the resources.

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Death, Grief, and Hope

during the pandemic. Based on the work of Rev. Captain Dave Booker, the initial version focused on young people, with versions focusing on adults and prisoners following. These later versions were developed in partnership with Rev. Captain Michael Reader CA, Hospice Chaplain, and Rev. Helen Dearnley, Lead CofE Chaplain for Prisons. These contacts have led to further collaboration in developing and adapting resources.

Leadership Development

this last year. Work has included:

The Research Unit

The Research Unit continues to resource evangelism, working to show how God is active in mission and increase understanding in why churches' participation may falter or flourish. This is done by conducting churches and diocese across the British Isles and Ireland.

For more information, please visit www.churcharmy.org/research

During the year, the Research Unit completed the following projects:

During the year, the team have also continued to work on Recording the Journey, which helps us to compile quantitative and qualitative data about Centres of Mission.

The Wilson Carlile Centre (WCC)

The Wilson Carlile Centre in Sheffield has been the home of Church Army for the past ten years. Located in the heart of the city, the building is a modern looking, multi-purpose centre offering: a café; a theological library; 30 en-suite bedrooms; a spacious three-bedroom apartment; day and residential conference facilities; a chapel; garden and city centre parking.

For most of the year the centre was closed due to COVID-19 lockdown restrictions, with the accommodation opening only briefly in Sept / Oct as restrictions eased before closing again when the second lockdown was imposed.

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Our Café, Accommodation and Conferencing team were placed on Furlough in March 2020 as the first lockdown hit, returning briefly in the late summer as we started to reopen before being placed on Furlough once again. Church Army chose to pay 100% of their salaries throughout their Furlough, topping up the grant received form the government.

Our National support staff based in the WCC offices all moved to working from home in March 2020 and we made the offices available on a limited basis from July 2020 for staff who needed to access specific equipment or resources. Staff have continued to work from home, developing their use of technology and different software for remote work and meetings during this exceptional year. As we write this report we are planning a phased return to office-based working from September 2021, but plan to retain some flexibility and continue to use the digital tools we have found invaluable during COVID-19, while recognising the significant benefits of in person working for collaboration and an expression of our community and values as the home of Church Army.

We have planned for use of our Café, Conferencing and Accommodation facilities to increase as we head into the Autumn of 2021.

To find out more, visit www.wilsoncarlilecentre.org.uk

Objective 4: Enabling Evangelism

Training Programme

Training is a key part of our DARE strategy, enabling more people to be resourced and equipped as evangelists. At the start of 2020, we had 28 evangelists in training to be commissioned; six of these completed their training and five were admitted and commissioned. The remaining 22 continued in their training and were joined by 11 new evangelists-in-training in the autumn. In the next year 10 will be complete their training and seven will join the training community.

Xplore and Reunion

Envoy is the new name for both the Xplore and Reunion communities. This has enabled us to bring everything under one umbrella name while still retaining an 18-30 and over 30s option. Envoy now includes not just communities in the UK and Ireland but also Germany and God willing new communities in the coming year with Church Army USA and Threshold Ministries in Canada. Envoy remains committed to coaching participants in the context of community for evangelism they can use in their daily lives.

Our numbers for the last academic year were higher than projected with 58 participating in a Reunion Community and 13 in an Xplore Community. Our mini version of Envoy during Lent had a further 14 people join us. A participant described the impact of Reunion as, "A way to see, hear and value people. All people. Reunion is empowering and supportive, challenging, yet not pushy. Thought provoking. It removes fear around sharing life and sharing Jesus."

Due to the impact of COVID-19 on all levels of Church life in the UK and Ireland it has been more difficult to connect locally with churches and while we have doubled our efforts to promote Envoy, we are projecting reduced numbers for 2021/22. The quality of what we do will remain high for those who take part, in past years of reduced numbers we have had a higher uptake on life in Church Army including training and appointment to Church Army posts in Centres of Mission so we hope that is our silver lining again.

For more information on Envoy in the UK and Ireland go to envoy.churcharmy.org For Envoy in Germany, Canada or the USA go to envoy.website

Mission Community

The Church Army Mission Community was established nine years ago and continues to develop and understand its identity. In June 2020 Jude Davis was appointed as Director of Ministry, this new role was instituted in part to review Church Army Mission Community, and in particular the work of the Community Team. To properly resource the mission community for healthy and sustainable growth in the future a

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restructuring of the team was begun in March 2021 with a view to completing the restructure over a period of 12 months.

During the year 20 people joined the Mission Community and nine ceased being members (either because they left Church Army or have died during the year). The total number of Mission Community members is 487 (330 Commissioned evangelists, 51 Companions, 88 Covenanted and 18 Co-Workers).

Public benefit statement

The Trustees have considered the Charity Commission guidance on public benefit and are satisfied that both the aims of the Society and what it delivers meet the public benefit test.

Church Army meets the criteria through:

Church Army does not discriminate between those who profess a Christian faith and those of no faith. Our work is open to those of all faiths and no faith. Examples of how we do this can be found on pages 4 to 16.

Objectives for the coming year

Many of these objectives build on the success of the last year. We have already started working on reaching these objectives in the year ahead.

Doing evangelism

Measures

Advocating evangelism

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Measures

Resourcing evangelism

Measures

Enabling evangelism

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Measures

Financial review

The review below covers the financial position for the year from 1 April 2020 to 31 March 2021. The COVID19 pandemic hit in the middle of March 2020 just 2 weeks before the start of this financial year and continued throughout the whole of the period under review and has impacted every aspect of our lives.

We started the year anticipating and planning for a potential drop in income / additional costs of up to £80k per month, but as we continued our work in many of the most deprived communities across the UK our supporters were immensely generous, and income grew in response to our appeals and additional grants were obtained from Trusts. We also saw unexpected growth in our investment portfolio all of which has contributed to an unexpectedly positive financial result for the year, in comparison with last year and our pre-pandemic budget.

Income. During the year total income increased by 5.8% to £6.348m (2020: £5.998m). A reduction in some trading activities which were forced to close was more than offset by increased donations.

Donations increased by 39% to £2.057m (2020: £1.475m). In addition to giving from our regular supporters, we were delighted with exceptional responses to our initial emergency appeal as the COVID-19 pandemic hit. We also obtained additional funding from a number of trusts and statutory sources (totalling £208k) specifically to enable our work to carry on during COVID-19 with the extra precautions required.

Legacies - we saw a slight drop in legacy income to £728k (2020: £774k) - this income stream continues to reflect .

Income from our partners for Charitable Activities reduced slightly to £2.680m (2020: £2.747m) this includes contributions from dioceses towards Centres of Mission, Housing income and income generated by the Research team. The Supporting People Grant towards our Marylebone hostel was reduced by £72k and other housing income reduced by £94k as a result of higher vacancies during the year with fewer referrals following successful move-ons due to the temporary housing provided for rough sleepers in hotels during COVID-19.

Research income was maintained from a range of projects despite COVID-19 restrictions. This reflects and its ability to measure the impacts (both quantitative and qualitative) of church projects.

Income from other trading activities, particularly accommodation and conferencing at Wilson Carlile Centre, reduced by over 92% to just £30k (2020: £376k), it being required to close. We look forward to seeing these activities return later in the year, providing valuable resources to the national team in Sheffield and income to support our wider work.

18

Church Army (The) Year Ended 31 March 2021

Non-charitable trading SPACE & MUNCH. Due to COVID-19 our Social Enterprise project at Marylebone was closed for most of the year. Munch provided some recipe boxes for the women living at Marylebone. We look forward to restarting this work in Autumn 2021, providing opportunities to women for work experience and practical support to increase their chances of gaining employment.

Expenditure

Costs of Raising funds reduced by £260k - £207k of this related to direct trading costs due to the closure of the trading operations during COVID-19.

Spend on Charitable activities increased to £6,419k (2020: £6,087k) mainly due to our continued growth across Centres of Mission. Our work continued across the UK throughout COVID-19, with our teams adapting their work to respond to and meet the needs that emerged during the pandemic and operate in different ways.

Church Army continued to maintain tight control of expenditure, through its management structure, cemented by a budget and monthly monitoring process to ensure an effective and efficient use of financial resources. Delivery of the DARE strategy always underpins the decision-making process.

Re-measurement loss on the defined benefit pension plan. The triennial actuarial valuation of the Church as at 31 March 2020 showed a deficit of 9%, a deterioration from the position in 2017. This had arisen from lower than expected investment returns and a contribution holiday by the employer (Church Army). The Pension Scheme Trustees have implemented a changed investment strategy and we have made a lump sum contribution of £250k into the plan from the 2021 surplus to help stabilise the fund. The triennial valuation, and the provision calculated for these accounts are technical calculations based on actuarial standards. The Pensions Regulator is satisfied that the remediation is appropriate; the circumstances).

Major capital works

We took the opportunity provided by COVID-19 to undertake a major refurbishment of the Marylebone Day Centre in readiness for it move towards 24-7 operation by September 2021

Investment policy and performance

which are rented out for income and funds invested with investment managers with the primary goal of capital growth.

The total return on investments, (dividends, rental income and capital growth) was £2,701k (2020: £725k), being income of £575k (2020: £586k) and exceptional capital gains of £2,126k (2020: £139k). This of 4%, but we recognise this performance is unlikely to be repeated.

Following the sale of several investment properties in early 2021 the Investment Sub-Committee will again review the allocation of investments between investment managers and property.

Investment properties

s accommodation by employed and retired evangelists. Rental income from the properties increased to £518k (2020: £495k). Costs of managing the property amounted to £255k (2020: £245k). At each year end the investment property portfolio is revalued - the revaluation at 31 March 2021 resulted in the value increasing by £706k (2020: increase £83k), reflecting the increases seen in the housing market nationally.

Funds with specialist charity investment managers

The Church Army general investment portfolio is split between two high performing funds, one run by Ruffer LLP and the other by CCLA, both specialists in charity fund management. The Investment Sub-Committee receive quarterly updates and meet the managers each year to review results, investment strategies and prospects. They also make use of charity investment comparators, including the quarterly Multi-Asset

19

Church Army (The) Year Ended 31 March 2021

Charity Fund Review published by Arc Research Ltd. The Investment Sub-committee then provide guidance to the board when they consider that change is required.

Our funds with CCLA are invested in the CBF Church of England Investment Fund. When stock markets are rising the fund has been a leader in the ARC tables. In March 2020 the fund did lose some value but did not suffer the significant losses of the stock market in general. In the year to March 2021 the CCLA funds grew by 20.7%

The approach of Ruffer LLP is by nature fairly cautious, aiming to preserve capital and deliver consistent positive returns, regardless of how financial markets perform. In more detail they have two investment aims: not to lose money in any rolling twelve-month period, and to generate returns meaningfully ahead of -f the market turmoil in March 2020 brought on primarily by the impact of COVID-19, Ruffer were the best performing charity fund manager in the ARC comparison. In the 12m to 31 March 2021 Ruffer produced returns of 24.1%.

In prior years the investments with Ruffer were managed individually on our behalf in line with the detailed Ruffer overall strategy. During the year we moved the monies in the managed portfolio into the Ruffer Charity Assets Trust Accumulation units. This fund follows the same Ruffer guidance, produces very similar returns and enjoys lower charges.

An active ethical investment policy

In 2019/20 the Board adopted the investment policies set by EIAG the Ethical Investment Advisory Group of the Church of England. That policy not only sets out areas where there should be no direct investment (e.g. tobacco, gambling, non-military firearms, or high interest rate lending) but also expects the investee employment practices, conscientiousness with regard to human rights, sensitivity towards the communities in which they operate and b leader in this area, requires investors to be active, engaging with investee companies to seek improvement in ethical standards in these areas.

The CCLA CBF Church of England fund is compliant with EIAG. The Ruffer Charity Assets Trust fund's responsible investment policy has been shaped by the concerns of many charities. It imposes strict restrictions on investment in alcohol, armaments, gambling, pornography, tobacco, oil sands and thermal coal. It also follows a proactive voting and engagement approach with companies held within the fund. The

Reserves (Funds) policy

£29,516k

(2020: £29,153k).

Restricted Reserves

£6,962k (2020: £6,305K) are classed as restricted funds - those, which by their nature, can only be used in compliance with the specific wishes of the donor(s), including those specifically for frontline activities. Where the cost of frontline activities is greater than the specific donations, the shortfall is met by a transfer of funds from Unrestricted Reserves.

Unrestricted Reserves

£23,294k (2020: £23,286k) are classed as unrestricted funds. Included in this amount is £8,858k (2020: £8,620k) of designated accommodation for commissioned officers, offices, fixtures and equipment of a capital nature commensurate within a service sector working environment needed to maintain the current level of activity and therefore unavailable for other uses.

Reserves designated for the DARE strategy

The Board has earmarked £6,670k (2020: £7,173k) of the unrestricted funds to sustain the development of the DARE strategy. This is referred to as a designated fund for:

20

Church Army (The) Year Ended 31 March 2021

Reserves are reduced by possible long-term pension liabilities of £740k (2020: £438k). This amount is calculated at the year end and fluctuates yearly. It is of the nature of a memorandum item; it would only be called upon should all employment cease suddenly. The board makes contributions each year to address the remaining shortfall, if any, over time.

Target Reserves

Church Army has reviewed the reserves policy set in December 2015. It sets out target reserves to enable Church Army to operate. The figure set for free reserves is £6.5m, which includes a base reserve of £4m that it is estimated would be needed for a managed reduction in service if there was a total collapse of funding . This equates to anticipated costs including employment and other statutory payments which would need to be made in the event of a total loss of income from all sources.

Target reserves should also include the operational assets currently in use (c.£9m) and the restricted reserves (£7m). This sets a target for reserves of £22.5m. This provides headroom of £7m, much of which is earmarked to support the continued implementation of the DARE strategy.

Church Army considers that it is still on track to reduce the level of reserves towards the target over the longer term. Budgets are set in line with that reduction. Where in any year the results are better than budget, the surplus is kept to act as a buffer against unexpected changes in investment returns beyond our control.

Fundraising activities

Church Army has fully embraced the protocols established by the Fundraising Regulator and laws which came out under General Data Protection Regulations in 25 May 2018.

Church Army has always maintained a highly competent and professional approach to what is now a strictly regulated sector, balancing the need to generate funds while at the same time, fully respecting the position of both our existing and potential donors. Church Army has adopted a very robust approach to ensure full compliance with the requirements of the Fundraising Regulator and the 2018 GDPR legislation. This is particularly so in the area of donors in vulnerable circumstance, where working practices have been established to respect and protect their position.

Church Army first published a clear policy on donor relationships over four years ago. This has been strengthened to reflect more clearly our relationship with the Fundraising Regulator to state:

We believe that the way we raise money should model our Christian values, with integrity, accountability and honesty, born out of a genuine two-way relationship; you expect anything less. why we are not only committed to upholding the Code of Fundraising Practice, we are committed to setting the very highest standards in fundraising. We are registered with the Fundraising Regulator whose Fundraising Promise states:

The complete text can be found on the Church Army website: https://churcharmy.org/ways-ofgiving/fundraise-for-us/our-pledge

We received 7 complaints from new or existing donors. 4 of these related to a data breach by a third-party provider which we reported to the ICO and the Charity Commission who each confirmed no further action was required. The other 3 related to the wording of an appeal sent to those on our database who had not given for over a year or who had never given.

21

Church Army (The) Year Ended 31 March 2021

Big Lottery Funding, to support our educational work and encourage client involvement at the Marylebone Project, continued this year and Church Army are grateful for the continued support from this valued source.

We continue to work hard with individuals, parishes, trusts and corporates (still largely untapped) ideally to increase and, as importantly, maintain income levels. The individual donors remain our most loyal and long-standing contributors and we are always working on creative and innovative ways to maintain this critical support group. We adapted our approach to both individuals and trusts in response to our changing work on the ground during the COVID-19 pandemic and this proved to be fruitful. However, it has been more difficult to engage churches due to the closure of church buildings following the COVID-19 pandemic and their own loss of income from weddings and funerals and loss of giving from people who would have put money in a collection plate during a service.

Church Army does use professional external fundraising for the Marylebone Project and the business involved is signed up to the same working practices that we adopt ourselves.

For further information about The Fundraising Regulator visit www.fundraisingregulator.org.uk

Church Army is working very hard to ensure all current donor income goes directly to fund frontline activity. It is doing this by prudent use of the historic investments, which are managed to generate an income, which covers the non-frontline costs, which we cannot avoid under our statutory obligations as an employer and a limited company.

Partnerships

Our Centres of Mission are delivered in partnership with dioceses across the UK and Ireland and we rely on the support of a number of significant funders to continue our work.

Going concern

The trustees have agreed a budget for 2021-22 and a 3-year financial model that forecasts income and expenditure, taking into account strategic plans for the following 2 years. The budget for 2021-22 expected that COVID-19 would continue through 2021 and planned for a further delay before any return to noncharitable trading activities, with an expectation that income would start to return in the autumn.

Donation income in the first 4 months of 2021 has been lower than last year but the organisation has an appropriate level of reserves in accessible investments to manage any potential reduction in income in the next 3 years. The better than expected result for 2020it to continue its expansion plans and providing further resilience in the event of income shortfalls in the next 12 months.

After making these appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

22

Church Army (The) Year Ended 31 March 2021

Structure, governance and management

Constitution

The Society is both a registered charity and a company limited by guarantee governed by its Articles of

The Society is registered with the Office of the Scottish Charity Regulator and the Republic of Ireland and is applying for registration in Northern Ireland.

Appointment, induction and training of Trustees

The Board of Trustees comprises people with appropriate expertise including Church Army evangelists, members of General Synod of the Church of England and members of other provinces. Trustees are co-opted by the Board, following a search based on filling identified gaps in skills and experience and must be elected by the membership at the next Annual General Meeting. Good governance is vital to the effectiveness of the organisation and so training and induction programmes for new Trustees are tailored for each individual.

3 new trustees were recruited during the year filling skills gaps identified in an audit undertaken in 2020.

Organisational structure and decision-making

The Board carries overall responsibility for every decision made within the Society and has delegated certain powers to the following committees:

The Finance Committee:

The Investment Committee managers and property portfolio

The Senior Leadership Team is responsible for implementing Board decisions throughout the Society and the executive management of its operations and resources through its Management Team

The Marylebone Project Board formulates and implements strategy and oversees all operational matters relating to the Marylebone Project for homeless women on behalf of the Portman House Trust and Church Army as sole Trustee.

The Society also has a President and Vice-Presidents, who have no formal powers but act in an advocacy role within the wider church. They are listed on page 1.

Church Army International

Church Army continues to support a collective group of societies in Australia, Barbados, Canada, Denmark, Jamaica, New Zealand, the Unites States of America, various countries across Africa and Vanuatu. Each of

23

Church Army (The) Year Ended 31 March 2021

these is separately constituted and independent of the others. There is mutual support and regular contact between the leaders as part of the International Leaders, chaired by the UK CEO.

Pay policy for senior staff

No formal remuneration policy currently exists, for any group of employees, beyond the commitment to pay at least the living wage under The Living Wage Foundation criteria.

The Board, through the Treasurer, have undertaken a benchmarking exercise for senior staff and set a remuneration level, based on that review, to reflect the market forces within the sector. The resulting level is adjusted to recognise both the need to recruit and retain staff with the appropriate skills and experience. Senior staff are subject to the same annual cost of living review as the rest of the staff and similarly, any justified reward for increased responsibility can be applied at any time outside the annual review date, at the beginning of April each year, with the appropriate level of approval .

Risk management and internal controls

The Board has overall responsibility and regularly reviews all aspects of risk management to ensure that the Society has appropriate systems of internal control, whether strategic, operational, financial, or with regard to legal compliance. Systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

key strategic risks and mitigations are:

Risk
 Response
Structural budget deficit continues Ongoing review of budgets and costs in the light of
income and available reserves.
Developing plans to increase fundraised income.
Rolling 3-year financial model in place to manage
reduction of any operating deficit in line with reserve
policy targets
Safeguarding risks through failure to
protect the vulnerable and
marginalised		 Culture of Safeguarding embedded across whole of CA
Policies and procedures exist in all CA projects to
establish good practice
Safe recruitment of all CA staff and volunteers working
with vulnerable adults or children
Safeguarding training mandatory for all staff and
volunteers with specialist training for specific frontline
roles and those with Safeguarding leadership
responsibility

24

Church Army (The) Year Ended 31 March 2021

Inability to recruit & retain the right
people especially for Centres of Mission
Loss of key staff / institutional memory		 We are running leadership development training
programmes and identifying potential leaders and
evangelists among members of key programmes at an
early stage in their journey with Church Army
Planned handover for outgoing CEO with new CEO
Significant investment loss impacts
reserves		 Use of professional investment advisers
Investments spread across several portfolios and
property assets

In addition to the Board review, each year there is a formal review of the risks to which Church Army is exposed and systems established by our Senior Leadership Team to mitigate them are updated or added as appropriate.

Plans for future periods

Church Army continues working to a rolling five-year forward plan. Detailed budgets are prepared for one year in advance and extended into the following 2 years to create a 3 year financial model. Church Army is consciously budgeting an operating loss for the next 4 years using historic reserves to support current activity at as high a level as practical. The shift towards developing partnerships, pioneered over the last three years around our Centres of Mission, continues apace with an ambitious, but achievable, list of potential partners. This programme is covered in more detail within this report.

The Trustees (who are also Directors of Church Army for the purposes of company law) are responsible for preparing the Trustee Annual Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

25

Church Army (The) Year Ended 31 March 2021

Disclosure of information to the auditor

In so far as the trustees are aware:

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

On behalf of the board on

John Whitfield Trustee

The Most Rev & Rt Hon Stephen Cottrell Trustee

26

Opinion

31 March 2021 which comprise the Group and Parent Charitable Company Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group and Parent Charitable Company 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our ulfilled 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 group s or parent charitable 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.

27

Other information

The other information comprises the information included in the trustees annual report, other than the information contained within the annual report. 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. 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

28

Responsibilities of trustees

t on page 25, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk. We focused on laws and regulations relevant to the charitable company which could give rise to a material misstatement in the financial statements. Our testing included discussions with management, trustees, and those staff with direct responsibility for the compliance of laws and regulations. We also reviewed legal expenses. We addressed the risk of management override of internal controls, including the testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud.

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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-

29

Use of our report

of Part 16 of the Companies Act 2006, and to the with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been e by law, we do not accept or assume responsibility to anyone other than the charitable company, the work, for this report, or for the opinions we have formed.

Jane Marshall (Senior Statutory Auditor) for and on behalf of BHP LLP Chartered Accountants Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date:

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

30

Church Army (The) Year Ended 31 March 2021

Group Statement of Financial Activities (Including an Income and Expenditure Account)

Unrestricted Restricted 2021 2020
Funds Funds Total Total
Note £000 £000 £000 £000
Income and endowments from:
Donations and legacies 2 1,575 1,210 2,785 2,249
Charitable activities 3 314 2,366 2,680 2,747
Other trading activities 4 28 2 30 376
Investments 5 543 32 575 586
Other 6 206 72 278 40
Total income and endowments 2,666 3,682 6,348 5,998
Expenditure on:
Raising funds 7 943 229 1,172 1,432
Charitable activities 8 2,217 4,202 6,419 6,087
CoE pension scheme movement 24 - 6 6 (372)
Other 10 30 - 30 30
Total expenditure 3,190 4,437 7,627 7,177
Net (expenditure) for the year
before investment gains (524) (755) (1,279) (1,179)
Net gains on investments 1,435 691 2,126 139
Net income/(expenditure) for the year
911		 (64) 847 (1,040)
Transfers between funds 20 (1,008) 1,008 - -
Other recognised gains/(losses):
Gain/(loss) on revaluation of
fixed assets 105 - 105 4
Re-measurement (loss)/gain on
defined benefit pension plan 24 - (589) (589) 609
Net movement in funds 8 355 363 (427)
Reconciliation of funds:
Total funds brought forward 20 23,286 5,867 29,153 29,580
Total funds carried forward 20 23,294 6,222 29,516 29,153

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised during the year.

31

Church Army (The) Year Ended 31 March 2021

Society Statement of Financial Activities (Including an Income and Expenditure Account)

Unrestricted Restricted 2021 2020
Funds Funds Total Total
Note £000 £000 £000 £000
Income and endowments from:
Donations and legacies 2 1,575 569 2,144 1,967
Charitable activities 3 314 796 1,110 1,020
Other trading activities 4 28 - 28 308
Investments 5 543 32 575 586
Other 6 206 (3) 203 38
Total income and endowments 2,666 1,394 4,060 3,919
Expenditure on:
Raising funds 7 943 123 1,066 1,278
Charitable activities 8 2,217 2,063 4,280 3,973
CoE pension scheme movement 24 - 6 6 (372)
Other 10 30 - 30 27
Total expenditure 3,190 2,192 5,382 4,906
Net (expenditure) for the year
before investment gains (524) (798) (1,322) (987)
Net gains on investments 1,435 691 2,126 139
Net income/(expenditure) for the year
911		 (107) 804 (848)
Transfers between funds 20 (1,008) 1,008 - -
Other recognised gains/(losses):
Gain/(loss) on revaluation of
fixed assets 105 - 105 4
Re-measurement (loss)/gain on
defined benefit pension plan 24 - (589) (589) 609
Net movement in funds 8 312 320 (235)
Reconciliation of funds:
Total funds brought forward 20 23,286 3,872 27,158 27,393
Total funds carried forward 20 23,294 4,184 27,478 27,158

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised during the year.

32

Church Army (The) Year Ended 31 March 2021

Balance Sheets

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due
within one year
18
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets excluding pension
liability
Defined benefit pension liability
24
Net assets
22
Charity funds
General funds
Designated funds
Restricted funds
Total funds excluding pension reserves
Pension liabilities
Total charity funds
20		 Group
2021
£000
8,858
21,355
30,213
658
407
1,065
(1,047)
18
30,231
(79)
30,152
(636)
29,516
7,766
15,528
23,294
6,962
30,256
(740)
29,516		 Group
2020
£000
8,751
20,743
29,494
767
324
1,091
(1,019)
72
29,566
(154)
29,412
(259)
29,153
7,493
15,793
23,286
6,305
29,591
(438)
29,153		 Society
2021
£000
7,327
21,355
28,682
575
407
982
(1,471)
(489)
28,193
(79)
28,114
(636)
27,478
7,766
15,528
23,294
4,924
28,218
(740)
27,478		 Society
2020
£000
7,453
20,743
28,196
706
324
1,030
(1,655)
(625)
27,571
(154)
27,417
(259)
27,158
7,493
15,793
23,286
4,310
27,596
(438)
27,158

Signed on behalf of the Board of Trustees on

John Whitfield The Most Rev & Rt Hon Stephen Cottrell Trustee Trustee

The notes on pages 36 to 61 form part of these financial statements.

Company registration number: 37169

33

Church Army (The) Year Ended 31 March 2021

Group Statement of Cash Flows

Note
Cash flow from operating activities:
Net cash flow from operating activities
23

Cash flow from investing activities:
Payments to acquire tangible fixed assets
Payments to acquire investments
Receipts from sales of investments
Interest received
Dividends received
Rents received from investment properties

Net cash flow from investing activities

Cash flow from financing activities:
Repayment of long-term loans
Net cash flow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Cash within investment portfolio		 2021
£000
(1,579)
(291)
(6,112)
7,224
5
52
518
1,396
(131)
(131)
(314)
721
407
407
-
407		 2020
£000
(1,848)
(100)
(3,772)
4,965
3
88
495
1,679
(172)
(172)
(341)
1,062
721
324
397
721

34

Church Army (The) Year Ended 31 March 2021

Society Statement of Cash Flows

Note
Cash flow from operating activities:
Net cash flow from operating activities
23

Cash flow from investing activities:
Payments to acquire investments
Receipts from sales of investments
Interest received
Dividends received
Rents received from investment properties
Net cash flow from investing activities


Cash flow from financing activities:
Repayment of long-term loans
Net cash flow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Cash within investment portfolio		 2021
£000
(1,870)
(6,112)
7,224
5
52
518
1,687
(131)
(131)
(314)
721
407
407
-
407		 2020
£000
(1,948)
(3,772)
4,965
3
88
495
1,779
(172)
(172)
(341)
1,062
721
324
397
721

35

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

1 Accounting policies

(a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Accounting Practice.

Church Army meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are prepared in sterling, which is the functional currency of the charity and rounded to the nearest £000.

The Statement of Financial Activities (SoFA) and Balance Sheet consolidate the financial statements of the company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The company (referred to as the Society) includes the results of Church Army, its linked charities and special trusts.

(b) Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

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

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

(c) Income recognition

All incoming resources are included in the SoFA when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Similarly, no value is attached to gifts in kind that although graciously acknowledged, are not material for separate calculation or inclusion.

36

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

For Legacies, entitlement is the earlier of the charity being notified of an impending distribution or the Legacy being received. At this point income is recognised. On occasion, Legacies will be notified to the charity, however it is not possible to measure the amount expected to be distributed. On these occasions, the Legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants under Supporting People funding operating within our homeless projects in London and Cardiff and No Recourse to Public Funds grants to support people in our homeless project in London. Income from government and other grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the

Other income includes gains on disposals of tangible fixed assets and CJRS income which has been recognised in the period for which the claim was made.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

(e) Support costs allocation

Support costs are those costs that assist the work of the charity but do not directly represent charitable activities include office costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out centrally. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises overheads have been allocated on a headcount basis and other overheads have been allocated similarly.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

37

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

(f) Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Assets with a cost of less than £5,000 are not capitalised.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold and leasehold land Nil Freehold buildings 75 years Leasehold buildings 75 years or lease term if shorter Freehold improvements 10 to 20 years Other fixed assets 3 to 7 years

(g) Investment properties

Investment properties are measured at fair value at each reporting date with changes in fair value

(h) Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless fair value cannot be measured reliably in which case they are measured at cost less impairment. Investment gains and losses, whether realised

at cost less impairment.

Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

(i) Debtors

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

(j) Cash at bank and in hand

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

(k) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

(l) Creditors and provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

38

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

(m) Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

(n) Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

(o) Employee benefits

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

(p) Pensions

The charity operates two defined contribution plans for the benefit of some of its employees. Contributions are expensed as they become payable.

The charity operates a defined benefit plan (CAPS) for the benefit of some of its employees. A liability for the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

The charity also contributes to a defined benefit plan (CEFPS) for the benefit of some of its employees. in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period.

(q) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(r) Going concern

The trustees have reviewed the operating budgets for the charity and its financial performance during the COVID pandemic, with particular regard to its income streams. While COVID has had an impact on ion has an appropriate level of reserves to manage any potential reduction in income in the next 3 years.

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

39

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

(s) Derivatives

Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss.

We employ derivatives for the purposes of reducing risk in the portfolios. More specifically, exchange traded forward currency contracts are held for hedging all or part of the overseas currency exposure in the portfolio. Other derivatives are held within the Ruffer Protection Strategies Fund with the aim to protect the value of the (US and UK) index-linked bonds against a sudden rise in global interest rate markets.

(t) Financial instruments

The Society holds a variety of basic financial instruments as part of its day-to-day activities, principally investments, bank deposits and accounts, and trade creditors and debtors. The investment managers at times use hedges as part of a cautious investment strategy to reduce the underlying risks in the portfolio, but do not actively seek to invest in hedge funds. The Society has no significant exposure to credit risk, liquidity risk or cash flow risk, and its price risk exposure largely relates to the value of investments. Investments are monitored by an investment committee and cash flow is monitored as

(u) Judgements and estimations policy

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The present value of the pension schemes both depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost/income for pensions include the discount rate. Any changes in these assumptions will impact the carrying value of the pension liabilities.

Other key estimates are property values and depreciation. The useful life and residual value of an asset is subject to judgement. Property values are also subject to judgement on their state of repair, future rental yield and estimated cost to sell.

2 Income from donations and legacies

Donations
Legacies		 Group
2021
£000
2,057
728
2,785		 Group
2020
£000
1,475
774
2,249		 Society
2021
£000
1,416
728
2,144		 Society
2020
£000
1,193
774
1,967

In 2021, of the total Group income from donation and legacies, £1,575k (2020: £1,445k) was to unrestricted funds and £1,210k (2020: £804k) was to restricted funds. Of the total Society income from donation and legacies, £1,575k (2020: £1,445k) was to unrestricted funds and £569k (2020: £522k) was to restricted funds.

40

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

3 Income from charitable activities

Group
2021
£000
Fees for services (Housing Benefit)
1,482
Contractual payments
650
Performance related grants (Supporting People)
443
Other statutory grants
6
Research and Training
99
2,680		 Group
2020
£000
1,576
552
515
8
96
2,747		 Society
2021
£000
168
650
193
-
99
1,110		 Society
2020
£000
177
552
195
-
96
1,020

In 2021, of the total Group income from charitable activities, £314k (2020: £193k) was to unrestricted funds and £2,366k (2020: £2,554k) was to restricted funds. Of the total Society income from charitable activities, £314k (2020: £193k) was to unrestricted funds and £796k (2020: £827k) was to restricted funds.

4 Income from other trading activities

Accommodation
Room hire
Catering
Other trading		 Group
2021
£000
25
1
4
-
30		 Group
2020
£000
211
87
74
4
376		 Society
2021
£000
25
1
2
-
28		 Society
2020
£000
211
35
58
4
308

In 2021, of the Group income from other trading activities, £28k (2020: £308k) was attributable to unrestricted funds and £2k (2020: £68k) to restricted funds. All of the Society income from other trading activities, £28k (2020: £308k) was to unrestricted funds.

5 Income from investments Group and Society

Listed investments
Bank interest
Rental income		 Total
2021
£000
52
5
518
575		 Total
2020
£000
88
3
495
586

In 2021, of the total Group and Society income from investments, £543k (2020: £530k) was to unrestricted funds and £32k (2020: £56k) was to restricted funds.

41

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

6 Other income

COVID grants
Other		 Group
2021
£000
208
70
278		 Group
2020
£000
-
40
40		 Society
2021
£000
180
23
203		 Society
2020
£000
-
38
38

In 2021, of other Group income, £206k (2020: £9k) was attributable to unrestricted income and £72k (2020: £31k) restricted. Society income, £206k (2020: £9k) was attributable to unrestricted funds and -£3k (2020: £29k) to restricted funds.

7 Expenditure on raising funds

Costs of generating voluntary income
Costs of generating trading income
Investment and investment properties
management costs		 Group
2021
£000
252
655
265
1,172		 Group
2020
£000
289
862
281
1,432		 Society
2021
£000
209
592
265
1,066		 Society
2020
£000
236
761
281
1,278

In 2021, of Group expenditure on raising funds, £943k (2020: £1,177k) was unrestricted and £229k (2020: £255k) restricted. Society expenditure on raising funds, £943k (2020: £1,177k) was unrestricted and £123k (2020: £101k) to restricted funds.

8 Expenditure on charitable activities

Activities
Group
Undertaken
directly
£000
Centres of Mission
1,538
Fresh expressions
183
Other field evangelism
231
Homeless projects
2,226
Training
314
Dean of Community
183
National Operations
183
4,858
2020
4,721		 Support
costs
£000
763
36
154
222
195
100
91
1,561
1,366		 Total
2021
£000
2,301
219
385
2,448
509
283
274
6,419
6,087		 Total
2020
£000
2,014
218
378
2,352
517
347
261
6,087

Of the above costs £2,217k (2020: £1,820k) of the above costs were attributable to unrestricted funds and £4,202k (2020: £4,267k) were attributable to restricted funds.

42

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

8 Expenditure on charitable activities (continued)

Activities
Society
Undertaken
directly
£000
Centres of Mission
1,538
Fresh expressions
183
Other field evangelism
231
Homeless projects
87
Training
314
Dean of Community
183
National Operations
183
2,719
2020
2,607		 Support
costs
£000
763
36
154
222
195
100
91
1,561
1,366		 Total
2021
£000
2,301
219
385
309
509
283
274
4,280
3,973		 Total
2020
£000
2,014
218
378
238
517
347
261
3,973

Of the above costs, and £2,217k (2020: £1,820k) of the above costs were attributable to unrestricted funds and £2,063k (2020: £2,153k) were attributable to restricted funds.

9 Allocation of support costs Group and Society

Senior management

Communications
Administration
(finance/personnel/volunteering/IT)
Strategic development
General unrestricted costs
Welfare
Housing
Total
Other expenditure
Trustee expenses		 Group
2021
£000
-
30
30		 Group
2020
£000
8
22
30		 Total
2021
£000
244
216
802
182
54
21
42
1,561
Society
2021
£000
-
30
30		 Total
2020
£000
182
180
761
130
57
30
26

1,366
Society
2020
£000
8
19
27

10 Other expenditure

In both years all the total Group and Society other expenditure was on unrestricted funds.

43

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

11 Net income/(expenditure) for the year

Net income/(expenditure) is stated after charging/(crediting):
2021 2020
£000 £000
Depreciation of tangible fixed assets 289 252
audit 23 22
non-audit 7 4

12 Trustees' and key management personnel remuneration and expenses

All 13 (2020: 12) members of the Board who are not Church Army employees (including the Chair) provide their services free of charge, but incurred expenses totalling £nil (2020: £8,489). As permitted 2 (2020: 3) members of the Board who are, or were, Church Army employees received emoluments (including benefits in kind but excluding pension contributions) of £115,592 in total (2020: £64,376). One director benefited from contributions of £9,883 (2020: £12,601 for 3 members) to a defined contribution scheme.

The total amount of employee benefits received by key management personnel is £252k (2020: £287k). The Trustees consider its key management personnel compromises of the Senior Leadership Team made up of the CEO, Chief Operating Officer, National Operations Manager, Dean of Community, and the Director of Learning and Development who are salaried employees, and Sister Sheila Easby, a non-stipendiary associate member.

Mark Russell, a former director, left Church Army during the 2019/2020 year. He received a loan from the Society of £9,750 in 2017 to other employees. The loan bears interest at 4.75% per annum, and the interest charged during the year was £117 (2020: £261). The balance outstanding at 31 March 2021 was £nil (2020: £4,162).

44

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

13 Staff costs and employee benefits

----- Start of picture text -----
The total staff costs and employees benefits were as follows: 2021 2020
£000 £000
Wages and salaries 3,877 3,658
341 323
337 358
4,555 4,339
----- End of picture text -----

The number of employees who received total employee benefits (excluding employer pension costs of more than £60,000 is as follows:

2021 2020
Number Number
£60,001 - £70,000 1 1
£80,001 - £90,000 1 -

Total redundancy and termination payments amount to £nil (2020: £30k).

The average monthly number of employees and full time equivalent (FTE) during the year was as follows:

Raising funds
Charitable activities
Support		 2021
Number
31
129
18
178		 2021
FTE
31
105
18
154		 2020
Number
28
119
13
160		 2020
FTE
25
112
12
149

The above FTE numbers include 3.1 commissioned officers who are employed by the diocese in which they work but are partly or wholly funded by the Society. Part-time or part-funded staff are counted as appropriate fractions of a full-time or fully-funded post.

45

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

14
Tangible fixed assets
Group
Cost or valuation:
At 1 April 2020
Additions
Revaluation
At 31 March 2021
Depreciation:
At 1 April 2020
Charge for the year
Revaluation
At 31 March 2021
Net book value:
At 31 March 2021
At 31 March 2020		 Land and
Freehold
Other fixed
buildings improvements
assets
Total
£000
£000
£000
£000
8,084
2,392
1,133
11,609
-
285
6
291
94
-
-
94
8,178
2,677
1,139
11,994
777
988
1,093
2,858
108
150
31
289
(11)
-
-
(11)
874
1,138
1,124
3,136
7,304
1,539
15
8,858
7,307
1,404
40
8,751

46

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

14
Tangible fixed assets (continued)
Land and
Freehold
Society
buildings improvements
£000
£000
Cost or valuation:
At 1 April 2020
6,742
2,292
Additions
-
-
Revaluation
94
-
At 31 March 2021
6,836
2,292
Depreciation:
At 1 April 2020
632
988
Charge for the year
90
111
Revaluation
(11)
-
At 31 March 2021
711
1,099
Net book value:
At 31 March 2021
6,125
1,193
At 31 March 2020
6,110
1,304
The net book value of land and buildings comprised:
Group
2021
2020
£000
£000
Operational properties (included above)
Freehold
6,664
6,371
Long leasehold
640
936
7,304
7,307
Investment properties (included in investments)
Freehold14,300
13,739
Short leasehold-
-
14,300
13,739		 Land and
Freehold
buildings improvements
£000
£000
6,742
2,292
-
-
94
-		 Other fixed
assets
Total
£000
£000
460
9,494
-
-
-
94
460
9,588
421
2,041
30
231
-
(11)
451
2,261
9
7,327
39
7,453
Society
2021
2020
£000
£000
5,485
5,174
640
936
6,125
6,110
14,300
13,739
-
-
14,300
13,739
6,836
2,292
632
988
90
111
(11)
-
711
1,099
6,125
1,193
6,110
1,304

47

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

14 Tangible fixed assets (continued)

The historic cost equivalent of land and buildings (including investment properties) included at valuation are as follows:

Cost
Depreciation
Net book value		 Group
2021
2020
£000
£000
8,288
8,327
(1,893)
(1,799)
6,395
6,528		 Society
2021
2020
£000
£000
8,288
8,327
(1,893)
(1,799)
6,395
6,528

Society land and buildings are revalued every year at the balance sheet date to reflect market value. They data and expertise through our property consultants Bruton Knowles. A provision has then been made The Directors have adopted this basis of valuation.

15 Fixed asset investments

Cost or valuation:
At 1 April 2020
Additions
Transfers
Disposals
Revaluation
At 31 March 2021		 Group
Society
2021
2020
2021
2020
£000
£000
£000
£000
20,743
21,715
20,743
21,715
6,112
3,766
6,112
3,766
-
427
-
427
(7,650)
(5,299)
(7,650)
(5,299)
2,150
134
2,150
134
21,355
20,743
21,355
20,743

Investments at fair value comprise:

Listed investments
Investment properties
Cash within investment portfolio
Material (over 5%) investments comprise:
Group and Society
£000
Ruffer Charity Assets Trust Acc
5,528
CCLA CBF CofE investment fund
1,357		 Group
2021
2020
£000
£000
7,055
6,607
14,300
13,739
-
397
21,355
20,743

 Society
2021
2020
£000
£000
7,055
6,607
14,300
13,739
-
397
21,355
20,743

48

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

15 Fixed asset investments (continued)

The cost of fixed asset investments is £11,895,709 (2020: £12,918,000).

The Society has two subsidiary companies which have been dormant since incorporation and which have no paid-up share capital.

Portman House Trust operates the Marylebone Project and Church Army is the sole Trustee. The Trust is a Registered Provider of Social Housing registered with the Tenant Services Authority and registered with the Charity Commission through Church Army (registered number 226226, subsidiary 67).

16 Debtors

Trade debtors
Other debtors
Prepayments and accrued income
Amounts falling due after one year
17
Non-current assets held for sale
Investment properties		 Group
2021
2020
£000
£000
182
134
90
29
386
599
658
762
-
5
658
767
Group
2021
2020
£000
£000
-
-		 Society
2021
2020
£000
£000
101
75
88
27
386
599
575
701
-
5

575
706
Society
2021
2020
£000
£000
-
-

There are no current assets being held for imminent sale.

49

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

18 Creditors: amounts falling due within one year

Group
2021
2020
£000
£000
Bank loan
-
131
Trade creditors
119
151
Other tax and social security
96
96
Amounts owed to subsidiary undertakings
-
-
Amount due to Church Army Pension Scheme
221
38
Other creditors
87
160
Accruals and deferred income
499
418
C of E pension scheme (note 24)
25
25
1,047
1,019
Deferred income
Opening deferred income
Resources deferred during year
Amounts released from previous years
Closing deferred income
Deferred income relates to grant income received in advance.
Creditors: amounts falling due after more than one year
Group
2021
2020
£000
£000
C of E pension scheme (note 24)
79
154
79
154		 Society
2021
2020
£000
£000
-
131
98
134
96
96
445
653
221
38
87
160
499
418
25
25

1,471
1,655
Group
Society
2021
2021
£000
£000
194
194
218
218
(194)
(194)
218
218
Society
2021
2020
£000
£000
79
154
79
154

19 Creditors: amounts falling due after more than one year

50

omo ￿LL (LWba1J¥￿o=cÉl￿LLo

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

20 Charity Funds (continued)

Reserves
Income and expenditure account
Revaluation reserve
Pension reserve
 Group
2021
2020
£000
£000
20,345
20,187
9,911
9,404
(740)
(438)
29,516
29,153		 Society
2021
2020
£000
£000
18,307
18,192
9,911
9,404
(740)
(438)
27,478
27,158

The designated funds comprise the amounts tied up in fixed assets (net of any related borrowing) plus an amount set aside for commitment to the DARE strategy.

Portman House Trust, a subsidiary, operates the project for homeless women at Marylebone.

The Discretionary Grants Fund is an amalgamation of various restricted funds for the welfare of current and retired officers and staff.

The Gurney Trust is for the benefit of women in need, and the income from its investments provide additional income for the Marylebone Project.

Ketterson Trust is historically linked with work in Northern Ireland.

Tebbs trust is an historic f

The retirement fund is to support retired officers and widows of commissioned officers, the fund is made up of properties bequeathed to Church Army or subsequent properties purchased with the proceeds, and a small cash holding.

Greenwich Centre of Mission, and Frontline activities (money given specifically for frontline activities) and other restricted funds are used to fund specific projects in accordance with the instructions of the donors, settlors or Trustees.

Transfers have been made between funds for the following:

21 Special trusts and linked charities

Over many years, Church Army has been appointed to, and continues to administer a number of special trusts, many of which have now expired, but some still exist and are managed in furtherance of the purpose under which they were established.

Within these trusts are two that are linked charities per The Charity Commission website. The Hearn Fund (included within the retirement fund) and The Patterson Holiday Fund (included within the discretionary grant fund). These linked charities and special trusts are combined within the Church maintained but are recorded so they can be isolated for monitoring and reporting purposes.

53

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

The activity and funds held by each linked charity are as follows:

The Patterson
The Hearn Fund Holiday Fund
£000
£000
Funds at 1 April 2020 151
136
Income -
-
Expenditure -
-
Gains/(losses) 38
34
Funds at 31 March 2021 189
170

22 Analysis of net assets between funds

Unrestricted Restricted
Current year Funds Funds Total
£000 £000 £000
Fixed assets 7,327 1,531 8,858
Investments 16,896 4,459 21,355
Current assets 72 993 1,065
Creditors due within one year (1,001) (46) (1,047)
Creditors due after more than one year - (79) (79)
Defined benefit pension liability - (636) (636)
Total 23,294 6,222 29,516
Unrestricted Restricted
Prior year Funds Funds Total
£000 £000 £000
Fixed assets 7,453 1,298 8,751
Investments 16,928 3,815 20,743
Current assets (118) 1,209 1,091
Creditors due within one year (977) (42) (1,019)
Creditors due after more than one year - (154) (154)
Defined benefit pension liability - (259) (259)
Total 23,286 5,867 29,153

54

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

23 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Group
Net income/(expenditure) for the year
Rents received from investment properties
Income from investments
Depreciation of tangible fixed assets
(Gains)/losses on investments
(Profit)/loss on disposal of tangible fixed assets
Gain on revaluation of fixed assets
Movement in defined benefit scheme funding
Movement in CoE pension scheme
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash flow from operating activities
Society
Net income/(expenditure) for the year
Rents received from investment properties
Income from investments
Depreciation of tangible fixed assets
(Gains)/losses on investments
(Profit)/loss on disposal of tangible fixed assets
Gain on revaluation of fixed assets
Movement in defined benefit scheme funding
Movement in CofE pension scheme
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash flow from operating activities		 2021
£000
847
(518)
(57)
289
(2,126)
5
-
(212)
(75)
109
159
(1,579)
2021
£000
804
(518)
(57)
231
(2,126)
5
-
(212)
(75)
131
(53)
(1,870)		 2020
£000
(1,040)
(495)
(91)
252
(139)
(4)
4
13
(450)
35
67
(1,848)
2020
£000
(848)
(495)
(91)
234
(139)
(3)
4
13
(450)
(216)
43
(1,948)

Analysis of changes in net debt Group and Society

At 1 April Cash At 31 March
2020 Flows 2021
£000 £000 £000
Short term borrowings 131 (131) -
Total liabilities 131 (131) -
Cash at bank (721) 314 (407)
Total net debt (590) 183 (407)

55

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

24 Pensions and other post-retirement benefits

Church Army Pension Scheme (CAPS)

The Society operates a final salary defined benefit scheme. Pension benefits are linked to the members' final pensionable salaries and service at retirement (or date of leaving if earlier). The triennial actuarial valuation of the CAPS scheme as at 31 March 2020 showed a deficit of 9%, a deterioration from the position in 2017. This had arisen from lower than expected investment returns and a contribution holiday by the employer (Church Army). The Pension Scheme Trustees have implemented a changed investment strategy and Church Army made a lump sum contribution of £250k into the plan from the 2021 surplus to help stabilise the fund taking the total employer contribution to this scheme during the year to £350k (2020: £100k). The Pensions Regulator is satisfied that the (subject to unforeseen external circumstances).

The most recent comprehensive actuarial valuation of pension plan assets and the present value of the defined benefit obligation were carried out at 31 March 2021.

Church of England Funded Pensions Scheme (CEFPS)

Commissioned staff are members of the Church of England Funded Pensions Scheme administered by the Church of England Pensions Board which holds the assets of the schemes separately from those of the Responsible Bodies. The total contribution to this scheme during the year was £227k (2020: £242k).

Stakeholder Scheme provided by Clerical Medical

The stakeholder scheme was established to meet statutory legislation ruling at the time and provide pension provisions for new and existing employees who were not eligible to join the CEFPS or CAPS schemes. The total contribution to this scheme during the year was £19k (2020: £23k).

Auto-

The auto-enrolment scheme was established to conform to current legislation regarding the provision of pension opportunities to all qualifying employees. The total contribution to this scheme during the year was £51k (2020: £46k).

The defined contribution expenses are allocated to activities per staff allocation and all expenses and liabilities are allocated to restricted funds.

56

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

24 Pensions and other post-retirement benefits continued

Church Army Pension Scheme (CAPS)

The total cost recognised in the period was as follows:

2021
£000
Current service cost
40
Admin costs, past introductions, changes, curtailments and settlements
94
Net interest (income)/expense
4
Recognised in net income/expenditure
138
Recognised in other gains/losses

589
Total cost recognised
727
Amounts recognised in the balance sheet were as follows:
2021
£000
Fair value of plan assets
9,584
Present value of funded obligations
(10,220)
(636)
Changes in the fair value of the pension plan assets were as follows:
2021
£000
Opening plan assets
8,814
Interest income
200
Actual return on plan assets (excluding interest income)
771
Administration expenses
(94)
Contributions by charity
350
Contributions by scheme participants
8
Benefits paid
(465)
Closing plan assets
9,584
Changes in the present value of the defined benefit obligations were as follows:
2021
£000
Opening defined benefit obligation
9,073
Current & past service cost
40
Interest expense
204
Contributions by scheme participants
8
Benefits paid
(465)
Actuarial (gains)/losses
1,360
Closing defined benefit obligation
10,220		 2020
£000
47
47
19
113
(609)
(496)
2020
£000
8,814
(9,073)
(259)
2020
£000
8,955
201
130
(47)
100
9
(534)
8,814
2020
£000
9,810
47
220
9
(534)
(479)
9,073

57

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

24 Pensions and other post-retirement benefits continued

Church Army Pension Scheme (CAPS) - continued

The amount that each major class of pension plan assets constitutes of the fair value of the total plan assets was as follows:

Equity instruments
Bonds
Cash
Other assets
Pooled investment vehicle
Liability driven investments
Diversified credit funds
The return on plan assets was as follows:
Interest income
Actual return on plan assets (excluding interest income)
Total return on plan assets		 2021
£000
-
813
176
-
4,680
1,724
2,191
9,584
2021
£000
200
771
971		 2020
£000
1,577
5,998
915
324
-
-
-
8,814
2020
£000
201
130
331

The principal actuarial assumptions used were as follows:

2021 2020
Discount rate 1.9% 2.3%
RPI inflation 3.3% 2.6%
CPI inflation 2.8% 2.1%
Expected rates of salary increases 2.6% 1.9%
Expected rates of pension increases RPI linked 3.2% 2.6%
Expected rates of pension increases CPI linked 2.8% 2.1%
Expected rates of pension increases (5% or RPI if less) 3.3% 2.6%
Expected rates of pension increases (5% or CPI if less) 2.8% 2.1%

Mortality after retirement 100% S3PMA_H/100% S3PFA_M 100% S3PMA/100%S3PFA CMI_2020_M/F [1.25%] (yob) CMI_2019_M/F 1.25% (yob)

Mortality before retirement

As per post retirement As per post retirement

Life expectancy for a current individual aged 65: Males 19.7 (2020: 19.8) Females 23.7 (2020: 23.7)

Life expectancy at age 65 for a current individual aged 45: Males 21.1 (2020: 21.2) Females 25.2 (2020: 25.2)

58

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

24 Pensions and other post-retirement benefits continued

Church of England Funded Pension Scheme (CEFPS)

The total movements recognised in the period were as follows:
Net interest income/expense
Deficit contribution paid
Re-measurement of the balance sheet liability
Total		 2021
£000
2
(83)
6
(75)		 2020
£000
12
(90)
(372)
(450)

Church Army participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in the year and were £310k (2020: £332k), of which £83k (2020: £90k) were towards the scheme deficit.

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumption

59

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

Church of England Funded Pension Scheme (CEFPS) continued

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.

% of pensionable January 2018 to
January 2021 to
stipends December 2020 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2018 and 31 December 2018 the deficit recovery contributions under the recovery plan in force at that time were 11.9% of pensionable stipends until December 2025.

As at 31 December 2019 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2019 and over 2020 is set out in the table below.

Opening balance sheet liability
Deficit contribution paid
Interest cost (recognised in SOFA)
Remaining change to the balance sheet liability* (recognised in SOFA)
Closing balance sheet liability
Split of liability:
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year		 2021
£000
179
(83)
2
6		 2020
£000
629
(90)
12
(372)
179
2020
£000
(25)
(154)
(179)
104
2021
£000
(25)
(79)
(104)

*Comprises change in agreed deficit recovery plan and change in discount rate and assumptions between year-ends.

60

Church Army (The) Year Ended 31 March 2021

Notes to the financial statements

Church of England Funded Pension Scheme (CEFPS) continued

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

December December December
2020 2019 2018
Discount rate 0.2% pa 1.1% pa 2.1% pa
Price inflation 3.1% pa 2.8% pa 3.1% pa
Increase
to		 total pensionable
1.6% pa		 1.3% pa 1.6% pa
payroll

The legal structure of the scheme is such that if another Responsible Body fails, Church Army could

25 Operating lease commitments

At 31 March 2021 the group had lease agreements in respect of various properties, for which the payments extend over a number of years. The total future minimum lease payments are as follows:

Not later than one year
Later than one and not later than five years
Later than five years		 2021
£000
18
13
-
31		 2020
£000
43
31
-
74

26 Capital commitments

There is a capital commitment of £73k for refurbishment of the drop-in centre at the Marylebone project and Sheffield premises (2020: £125k for a lift at the Marylebone project).

27 Related party transactions

Trustee and key management personnel transactions are disclosed in note 12.

Transactions with the Church Army Pension Scheme (CAPS) are disclosed in note 24. At the year end a balance is due to the scheme of £221k (2020: £38k).

Church Army acts as sole trustee to Portman House Trust and also landlord for two of the three basis using third party professional valuations and on a five yearly review cycle, in the year 2020/21 rent amounted to £234k (2019/20: £234k). Church Army also apportions some of its own administrative and management costs to the Portman House Trust covering services such as building management, health and safety, accounting and payroll which are calculated on a time basis as is senior management. Group incurred insurance is apportioned based on employee costs. The total of these recharges for the year was £160k (2020: £170k).

61