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2020-12-31-accounts

Charity Registration No. 1173851 / SC047797

ECHOES INTERNATIONAL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

ECHOES INTERNATIONAL

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees’ Report 2 – 11
Statement of Trustees’ Responsibilities 12
Independent Auditor’s Report 13 – 16
Statement of Financial Activities 17
Balance Sheet 18
Statement of Cash Flows 19
Notes to the Financial Statements 20 – 38

ECHOES INTERNATIONAL

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS

Current trustees: David Brown
Sharon Durrant (appointed 23 March 2021)
John Gamble (Vice-chair to 26 January 2021)
Hugh Burns Mitchell
James Pirie McGregor
Fiona McPhail (appointed 23 March 2021)
Simon Prince (Vice-chair from 26 January 2021)
Alan Hay Smith
Stephen Shaw
Paul John Young (Chair)
Charity registered number: 1173851 (Charity Commission for England and Wales)
SC047797 (Office of the Scottish Charity Regulator)
Principal office: 124 Wells Road
BATH
BA2 3AH
Executive Directors John Aitken, General Director
Rupert Abbott, Missions Director
Jim Armstrong, Operations Director
Auditor: Johnston Carmichael LLP
227 West George Street
GLASGOW
G2 2ND
Bankers: National Westminster Bank plc
24-25 Stall Street
BATH
BA1 1QF
Solicitors: Loosemores
Alliance House
18/19 High Street
CARDIFF
CF1 2BP
Investment Managers: Rathbone Investment Management Limited
Port of Liverpool Building
Pier Head
LIVERPOOL
L3 1NW

Page 1

ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report and audited financial statements for the period ended 31 December 2020. This annual report represents the third report for Echoes International, a charitable incorporated organisation (CIO) registered with the Charity Commission with charity number 1173851 on 18th July 2017. Echoes International is also registered with the Scottish Charity Regulator (OSCR) with charity number SC047797.

Echoes International started operating from 1 January 2018 through the merger of Echoes of Service (charity number 234556) and Interlink (Scottish charity number SC008063). The merging charities prepared their previous financial statements to 31 December 2017. On 1 January 2018, all the assets and undertakings of Echoes of Service and Interlink were transferred into Echoes International.

The Trustees confirm that the annual report and the financial statements of the charity comply with the current statutory requirements, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements.

Public benefit

The Trustees are aware of the Charity Commission’s requirement that each charity carries out its activities with a view to Public Benefit. We believe that this can be clearly demonstrated, not only by the advancement of the Christian Gospel around the world, but also in our regular support of many social, educational, medical, relief and development projects overseas. The three objectives listed in our review of activities are all carried out for the benefit of the public we serve.

Objectives and activities

Policies and objectives

Policy decisions are taken at our regular Trustees’ meetings. These include decisions regarding the compilation of the Daily Prayer Guide, which involves the addition and deletion of mission partners, the allocation of funds for personal support and specific purposes, the administration and maintenance of the office, and contact with mission partners and local churches. In accordance with regulator’s guidance, safeguarding is considered and discussed at every Trustee Meeting.

Strategies for achieving objectives

In addition to our regular Trustees’ meetings, we have planning days when we review the main objectives for the charity set out in our vision statement and assess how well we have managed to achieve them. These three targets are:

  1. To be an informed, efficient and sensitive mission service group;

  2. To be an influence in the promotion of mission in local churches; and

  3. To develop partnerships with similar groups throughout the world.

As part of the merger the Trustees agreed a 3-year strategy which was designed to bring our new vision to life. 2020 was the third year of our strategy. Echoes International’s vision is:

“To see Churches who are enthusiastic about mission sending new generations of workers into diverse models of Gospel ministry”.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

The strategy was developed to initiate the delivery of this vision.

Whilst we were able to evaluate the existing 3-year strategy and revise our position for the years ahead there is no doubt, with the Covid19 pandemic, our other activities were impacted considerably.

Prior to the beginning of 2018, the Trustees took the important step to evaluate the levels of investments retained in comparison to the levels of reserves required as part of the 3-year strategy. As a result of this review which demonstrated there was a noticeable surplus over the reserves in place, the Trustees took steps to deliberately increase the levels of funds used in the furtherance of the Charity’s Objectives. The Trustees believed that it was more important to invest in the vision set for the charity, than simply retain these as surplus to the required Reserves.

Activities for achieving objectives

As you read through the activity for 2020, Covid19 severely impacted those serving in cross-cultural mission and the whole operation of Echoes International. As a result of investment in IT at the beginning of 2018 which enabled all our data to be stored digitally, we were able to adapt to the conditions imposed by the restrictions. Much of the activity was done via video conference and from the middle of March 2020 all our staff were working from their homes. Trips to the office etc were to allow mail to be picked up and distributed electronically, donations banked or for specific purposes.

Although the medium of our activity changed from physical meetings to a digital medium, Covid19 has not impacted the level of our activity nor the number called by God into full-time and short-term cross-cultural mission.

Page 3

ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Page 4

ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Canada (MSC). The ethos of the programme is to better service the needs of Mission Partners associated with Echoes International. Better care for Mission Partners will help support them during their time of service for the Lord and hopefully minimise negative impacts on their ministry. 2 Mission Partners on the Daily Prayer Guide are assisting us with this programme, and it will be evaluated by the Trustees in September 2021.

Safeguarding –

Our safeguarding policy was established in 2018. The Directors have worked hard at implementing this policy to clearly demonstrate the seriousness with which the Trustees are taking this important issue. Echoes International is a member of Disclosure Scotland and Thirtyone Eight.

Our activity in 2020 was twofold – a) We carried out a self-audit to identify improvements we could make, and b) We also completed an external review of our policy and framework. These 2 activities highlighted a number of changes and improvements. The revised policy was completed at the beginning of 2021.

Plans for 2021 –

We plan to carry out another self-audit of our safeguarding progress and identify further actions from this. Safeguarding is an on-going exercise for Echoes International. It is not something we complete and then put on a shelf.

Risk and Security –

Mission partners are spread across the world and we recognise that some of the countries in which they serve represent a higher risk compared to others. We have developed services which will better equip sending churches and mission partners to mitigate the risks they face. These services include running HEFAT courses (Hostile Environment and First Aid Training) – 2 in 2020. Quarterly risk reports on the main risks in each country, are sent to mission partners and commending Churches. The provision of Health and Travel Insurance which takes into consideration the challenge of cross-cultural mission. We also have established access to a professional risk consultant who is able to advise the Trustees and Directors in times of difficulty.

In the main, our activity over the year can be summarised in the four undernoted priorities: Pray prayer remains the foundation of the work of Echoes International. Our communication plan is primarily in place to help churches and supporters associated with the charity to pray. This covers print, digital and face to face activity.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Over 42% in this world don’t know who Jesus Christ is. We have the opportunity to communicate this need across all our mediums.

2020 has been a difficult year for a number of reasons – mostly caused by the pandemic. At the same time, we have been able to support mission partners on the Daily Prayer Guide, other individuals and organisations involved in cross-cultural mission world-wide. We know our heavenly Father was not surprised by this virus and we also know His ways and thoughts are much higher than ours. We continue to depend on Him and look to Him for the days ahead.

Grant making policies

Any funds received which are designated for mission partners, full time evangelists/preachers or specific ministries are transmitted directly (with no deductions) on a monthly basis. The Trustees allocate gifts at their discretion each month from their undesignated funds to all mission partners listed on the Daily Prayer Guide. Funds are also transmitted to short term partners as well. The amount of the gift is determined by the marital status of the mission partner, the size of their family & the UN cost of living index in the country in which they are based.

Gifts are also made in the following circumstances:

Financial review –

Total funds held on the balance sheet at 31[st] December 2020 were £7.6m (2019: £8.6m), of which £1.3m (2019: £1.5m) relates to Restricted Funds and Endowment Funds. The remainder of the reserves relate to the charity’s long-term expenditure requirements. The reduction in funds is in line with the strategy referred to earlier.

Gift income was £5.0m (2019: £4.5m). There was a 23% decrease in gift income from Assemblies. Income from Legacies increased by 181% while gifts from Individuals and Trusts were in line with 2019. The level of Restricted gifts decreased to 64% (2019: 77%) of total gift income. One of the biggest impacts on the charity from a Covid19 perspective is the reduction in giving from Assemblies. The postponement of services and moving on-line for many has resulted in a reduction in giving to cross-cultural mission through Echoes International.

Page 6

ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Total charitable distributions, in the form of grants made to institutions and individuals amounted to £5.2m (2019: £5.6m), as shown in note 5 to the financial statements. Overall, total charitable expenditure decreased by £0.5m from £6.8m in 2019 to £6.3m in 2020 mainly because of the fall in Restricted gifts.

As part of the charity’s pastoral responsibilities and networking with global mission groups, and sending churches, travel by Trustees and Executive Directors amounted to £0.01m during the year (2019: £0.04m). The significant decrease is due to Covid-19 restrictions.

The number of mission partners on the Daily Prayer Guide at the end of 2020 was 185 (2019: 181). These partners serve in 34 countries. There are also links with other Institutions and individuals in a number of other countries.

Investment policy and performance –

The Trustees have the power to invest all amounts not needed for immediate working capital. During 2020, Rathbones continued to manage the investment portfolio. In line with the investment policy approved by the Board during the year, these funds are invested, with Medium Risk profile, in a range of companies and funds designed to achieve a balance of capital growth and income.

The main portfolio had investments with a cost of £6.1m (2019: £7.0m) at the year-end. This portfolio was valued at £6.8m (2019: £7.5m) at 31st December 2020. A further £0.02m was held in cash on investment at the year end. During the year, £0.9m (2019: £1.9m) was withdrawn from investments to help fund the charities activities.

The A H Boulton Fund portfolio had investments with a cost of £0.1m (2019: 0.1m) at the year-end. This portfolio was valued at £0.1m (2019: £0.1m) at 31st December 2020. In 2019, this Fund was adjusted back to its Permanent Endowment of £0.1m and the remainder of the investments realised and distributed to General Funds.

The Mrs H Maclean Fund and the Ramsden Trust portfolios had investments with a cost of £0.03m and £0.05m respectively at the end of 2020 and a cost of £0.03m and £0.06m respectively at the 2019 year-end. These portfolios were valued at £0.04m and £0.05m respectively at 31st December 2020 and £0.03m and £0.06m respectively in 2019. The investments in these Funds, together with the Boulton Fund, are held in a general investment trust managed by Rathbones.

Reserves policy -

The two regulators for Scotland and England and Wales expect Trustees to decide, publish, implement and monitor their charity’s reserves policy so that they can comply with their legal duties to:

In practice, this means that Trustees should develop a reserves policy that:

Page 7

ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

should explain to funders, beneficiaries, the public and the Commission exactly what reserves are kept (or not kept) for and when they are to be used.

In addition to setting the reserves policy for Echoes International, it also details actions which will be taken to ensure the approach is re- assessed annually, taking into consideration associated risks, potential funding changes and financial climates.

For 2020 the Trustees decided to keep the following specific levels of reserve across six operational areas:

----- Start of picture text -----
Minimum
Operational area Reserve level to be held
reserve level
Office and Operating
1 1 year’s equivalent expenses will be retained £1.11m
Expenses
Discretionary Allocation -
2 2 years equivalent expenses £2.43m
Mission Workers
3 Other Mission Support 1 year’s normal allocation £0.17m
4 Disaster and poverty relief £250,000 to be held £0.25m
5 Strategic projects 2 years allocation to be retained £1.03m
6 Capital requirements £200,000 to be held £0.2m
Total £5.19m
----- End of picture text -----

During the year, the reserve level was above the stated minimum at all times.

The rationale for each fund is detailed in the charity reserves policy which is held on our website - www.echoesinternational.org.uk/reserves-policy. Accessing the charity’s reserves will only be approved once discussed and agreed at the relevant Trustee Meeting – where this need is highlighted.

Actual total funds as at 31 December 2020 were £7.6m (2019: £8.6m), of which £1.3m (2019: £1.5m) was held in restricted and endowment funds which are not available for the general purposes of the charity. In setting the reserve levels the Trustees have designated funds to ensure these are available should the need arise. Unrestricted funds in our reserve sit at a total of £6.3m.

The unrestricted funds of the charity at 31 December 2020 of £6.3m (2019: £7.1m) represented an excess of £1.1m (2019: £1.7m) over the total level of reserves identified in the reserves policy. These funds are available for the general purposes of the charity and are over and above the designated reserves identified above.

These movements in balances are consistent with the 3-year strategy of the charity.

Going concern -

In accordance with our 3-year strategy for 2018-2020 and the revised strategy for 2021-2023, the Trustees consider the resources available to the charity as well as the forecast income and expenditure for the forthcoming periods. Based on this analysis, and through the setting and holding of reserves in line with the policy set out above, the Trustees have a reasonable expectation that the charity will continue in operation for at least twelve months from the date of the approval of the financial statements. The Trustees have therefore adopted the going concern basis of accounting in the preparation of the financial statements, as set out in the Accounting Policies.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Risk management -

During 2020 the Trustees have managed the main risks facing the charity and they have delegated the task of managing these risks to the Audit and Risk Committee. The committee comprised of 3 Trustees with the Operations Director attending these meetings which are held every 3 months. The Risk Control Framework is discussed at each Trustee Meeting to ensure all risks are managed and the Trustees are kept up to date with any issues facing the charity.

The main risks facing the charity have been identified and categorised as:

A number of specific risks have been identified within each of these classifications and the controls and actions to mitigate our risks are overviewed by the Audit and Risk Committee and mainly delivered and managed by the Executive Team.

The changing trend of giving from churches, individuals, legacies and trusts is also something which is monitored across the charity from an on-going risk perspective. The reserves policy, our strategic plan and annual financial plan takes these trends into consideration. These items are discussed at Trustee Meetings and actions taken accordingly where necessary.

We remain a faith-based charity reliant on God who is faithful. Whilst we take steps (detailed above) to ensure we are transparent and accountable to the regulators and charity law requirements; we are always conscious that the resources we have are His. We are stewards of what He has provided.

Plans for the future -

The Trustees of Echoes International remain committed to the strategic aims of the charity established in 2017 as part of the merger. The end of 2020 was used to agree our revised strategic journey for the next 3 years DV. The Trustees and all associated with Echoes International seek the Lord’s guidance in all we do.

Structure, governance and management

Constitution

The constitution of the charity was approved in 2017 by the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator (OSCR). This provides the charity with a framework and guidelines for the Trustees to administer the charity. We continue to be a mission Service Group who work for the worldwide furtherance of the Christian Gospel.

Method of appointment or recruitment of Trustees

The Trustees of Echoes International recognise the importance of a diversified Board with a good spread of capabilities and experience in relation to the Mission Service Group. We have identified the skills and capabilities required and will use the established process to appoint new Trustees as the opportunity arises. When new Trustees are needed the Chair and Vice Chair will approach individuals identified through various sources. They will be interviewed and asked to attend Board Meetings to establish their qualifications, their fit with the Board and their comfort with the workings of the Trust. After this process and if both parties feel it is appropriate to proceed, the formal appointment will be made following the Board’s endorsement.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Policies adopted for the induction and training of Trustees

New Trustees will be provided with the various documents which detail the Trust’s Vision, Values, Strategy and Constitution. Information with regard to Trustee responsibilities as expected by the Charity Commission will also be reviewed. We will provide training with regard to Safeguarding and they will be subject to an enhanced police check. Police checks and personal references are taken up for the Trustees during the recruitment process.

Key management personnel remuneration

The Board of Trustees are responsible for the running of the charity and meet regularly (normally every 2 months) to ensure the Strategic, Financial, Risk and Operational decisions are made timeously. The Chairman and Trustees are volunteers and give of their time freely. The operational day to day running of the charity is delegated by the Board to the General Director and his Executive Team – this team were the Missions Director and the Operations Director during 2020.

Details of remuneration are disclosed in notes 10 and 11. The Board of Trustees is responsible for reviewing and approving levels of remuneration for the Executive Directors.

Organisational structure and decision making

Details of the Trustees currently in office, together with other reference information, are shown on page 1. The Trustees who served during the period from 1 January 2020 to the date the financial statements were approved were as follows:

Mr Paul Young Chair Mr John Gamble Vice Chair to 26 January 2021 Mr David Brown Dr John Henry Burness (retired 19 May 2020) Mr James McGregor Mr Hugh Mitchell Mr Simon Prince Vice Chair from 26 January 2021 Mr Alan Smith Mr Stephen Shaw Miss Sharon Durrant (appointed 23 March 2021) Miss Fiona McPhail (appointed 23 March 2021)

The Executive Directors in 2020 were –

Mr John Aitken General Director Mr Rupert Abbott Mission Director Mr Jim Armstrong Operations Director

At the end of 2020 John Aitken stepped down from the role of General Director. After a recruitment process Jim Armstrong was appointed by the Trustees to the role of General Director. John has kept working with the charity as the Partnership Executive. Rupert Abbott continues as Mission Director.

The revised strategy required a change of operating model for Echoes International and this was completed for the beginning of 2021.

The Trustees, Executive Directors and other non-voting members attend Trustee meetings approximately every 2 months and annually for a strategic planning meeting.

Accountability is maintained through robust Board reporting by the Executive team including financial, risk, operational and reputational reporting. Bi-annual meetings take place with our Advisory Council who are able to give us an external view of the operations for Echoes International.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Delegated authorities have been put in place to allow the day to day running of the charity and a financial plan is established for Income, Giving and operational expenses. These positions are monitored at Board Meetings and all aspects of control and performance are transparent to the Trustees during these meetings.

Financial Software provides our management accounts which are viewed by the Trustees at their meetings. All our IT and software requirements are maintained by an external 3[rd] party and this gives us full resilience in the event of a major incident. They routinely visit to address operational issues and the Operations Director meets with the Senior Management of the IT company to ensure all service levels and risks are managed according to the contract in place. In addition, in 2018 we established a CRM and SharePoint filing system to provide further resilience and making sure all records and files are held in a paperless system. The IT system used is cloud based and backed up daily.

Our websites are all maintained along with our Social Media platforms – we have policies in place for our communication strategy to ensure nothing is communicated which would impact the reputation of the charity.

All e-transactions are made securely. Our access to IT and Internet Banking is fully encrypted and accessed via 2-factor authentication.

We continue to make no charges for the transmitting of funds. Nothing is deducted from gifts towards the running of the charity. It would be our hope and prayer that Operating expenses are normally met from specific gifts made towards our expenses, investment income and a % of all unrestricted legacies received in the year. We do not engage in any fundraising activity. Our sustainability is dependent on a faithful God.

In addition to the above sources of funds for operational expenses, the Trustees agreed to use a further £0.4m of discretionary reserves for the operational expenses of the charity in 2020. This was to allow them to support their 3-year strategy and see a renewed enthusiasm for mission from UK churches.

Relationships with other organisations

Trustees are required to disclose relevant interests, and these are noted on a register and kept by the Board. In accordance with the Charity’s policy, Trustees withdraw from decisions where a conflict of interest exists.

The Trustees’ Report was considered and approved by the Trustees at their meeting on 21 June 2021 and subsequently signed on their behalf by:

……………………………………………………………….

Paul John Young, Chairman

22 / 06 / 2021 Date: …………………….

Page 11

ECHOES INTERNATIONAL

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020

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

The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of its constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of Echoes International (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other 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.

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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-foraudit.aspx. This description forms part of our auditor’s report.

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Extent to which an audit is considered capable of detecting irregularities, including fraud

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:

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

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.

Use of our report

The report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulation 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

……………………………………………… Johnston Carmichael LLP

Chartered Accountants 227 West George Street Statutory Auditor GLASGOW G2 2ND 22 / 06 / 2021 Date: …………………………………….

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

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ECHOES INTERNATIONAL

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Income from endowments from:
Donations and legacies
2
Charitable activities
3
Investment income
4
Other income
Total income and endowments
Expenditure on:
Charitable activities
5
Total expenditure
Net (expenditure) before investment gains/(losses)
Net gains / (losses) on investments
Net (expenditure)/income
9
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
2020
£
1,793,723
53,506
173,551
5,642		 Restricted
Funds
2020
£
3,224,788
-
1,226
-		 Endowment
Funds
2020
£
-
-
-
-		 Total
Funds
2020
£
5,018,511
53,506
174,777
5,642		 Total Funds
2019
£
4,456,482
26,957
271,163
28,320
2,026,422 3,226,014 - 5,252,436 4,782,922
2,870,583 3,408,635 - 6,279,218 6,812,563
2,870,583 3,408,635 - 6,279,218 6,812,563
(844,161)
36,835		 (182,621)
1,992		 -
7,530		 (1,026,782)
46,357		 (2,029,641)
939,011
(807,326)
(39,431)		 (180,629)
39,431		 7,530
-		 (980,425)
-		 (1,090,630)
-
(846,757) (141,198) 7,530 (980,425) (1,090,630)
7,148,518
6,301,761		 1,311,461
1,170,263		 145,329
152,859		 8,605,308
7,624,883		 9,695,938
8,605,308

Page 17

ECHOES INTERNATIONAL

BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
12
Investment property
Total tangible assets
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors:amounts falling due within one
year
16
Net current assets/(liabilities)
Net assets
Charity funds
Endowment funds
18
Restricted funds
18
Unrestricted funds
18
-
General funds
-
Designated funds
Total unrestricted funds
Total funds
£
652,527
41,000		 2020

£


693,527
7,065,175
£
584,879
41,000		 2019

£


625,879
7,752,175
96,572
464,351		 127,331
670,671
806,032
5,495,729
7,624,883
152,859
1,170,263


6,301,761
7,624,883

The financial statements were approved by the Trustees on 21 June 2021 and signed on their behalf by:

22 / 06 / 2021

……………………………………………………………….

Paul John Young, Chairman

The notes on pages 20 to 38 form part of these financial statements

English Charity No: 1173851 Scottish Charity No: SC047797

Page 18

ECHOES INTERNATIONAL

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities:
Net cash provided by operating activities
20
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Sale of investments
Purchase of investments
Proceeds from sale of tangible fixed assets
Movement in cash held as investment
Net cash provided by investing activities
Change in cash and cash equivalents in year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
21
Relating to:
Bank balances and short-term deposits		 2020
£
(1,031,976)
174,777
(107,894)
1,907,719
(1,158,831)
-
9,885
825,656

(206,320)
670,671
464,351
464,351		 2019
£
(1,941,345)
271,163
(43,445)
3,513,116
(1,761,541)
482
364,189
2,343,964
402,619
268,052
670,671
670,671

Page 19

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

1 Accounting policies

1.1 General information

Echoes International is a charitable incorporated organisation, registered with the Charity Commission in England and Wales (charity number 1173851) and in Scotland with OSCR (charity number SC047797). The registered office is 124 Wells Road, Bath, BA2 3AH. The nature of the charity’s operations and principal activities are set out in the Trustees’ Report.

1.2 Basis of preparation of financial statements

Echoes International constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Charities (Accounts and Reports) Regulations 2008.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“the Charities SORP”), rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments and investment property and fair value. The principal accounting policies adopted are set out below.

The financial statements are prepared in £ sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.3 Going concern

At the time of approval of these financial statements, the Trustees have considered the resources available to the charity as well as the forecast income and expenditure for at least 12 months from the date of approval. Based on this analysis the Trustees have a reasonable expectation that the charity will continue in operation for at least twelve months from the date of the approval of the financial statements and have not identified a material uncertainty in relation to the going concern position of the charity. The Trustees have therefore adopted the going concern basis of accounting in the preparation of the financial statements.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the 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 costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

Page 20

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

1 Accounting policies (continued)

The charity holds two endowment funds, which are those resources received by the charity which represent capital. One of the funds is a permanent endowment, while the other fund is expendable. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund. Investment income, gains and losses (other than endowment fund income) are allocated to the appropriate fund.

1.5 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

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 recognition 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that the estate has been finalised and notification has been made by the executor(s) that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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

1.6 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs comprise staff and other costs incurred directly as a result of the charity making grants and allocations, the publication of the magazine and the support of missionaries and projects. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. These costs include costs related to the statutory audit and Trustees’ meetings.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

Page 21

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

1 Accounting policies (continued)

1.7 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual values, over their expected useful lives on the following basis:

Freehold property 2% straight line Fixtures and fittings 15 – 33% reducing balance + 25% straight line Computer equipment 33.33% straight line Freehold property improvements 10% straight line

1.8 Investment properties

1.9 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 it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading `gains/(losses) on investments’ in the Statement of Financial Activities.

1.10 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.11 Debtors

Other debtors are recognised at the settlement amount after any trade discount offered.

1.12 Cash at Bank and in hand

1.13 Liabilities and provisions

Page 22

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

1 Accounting policies (continued)

1.14 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the balance sheet when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price and are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.15 Employee benefits

The cost of employee benefits, including any unused holiday entitlement, is recognised in the period in which the employee’s services are received.

1.16 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.17 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 of the Finance Act 2010 and therefore it meets the definition of a charity for UK corporation tax purposes. The charity is registered with HMRC as a charity.

Page 23

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Key sources of estimation uncertainty

Depreciation

The depreciation of tangible fixed assets is a key area of estimation. The useful life and residual value of fixed assets is considered, and a depreciation rate applied accordingly. Details of the depreciation policies applied can be found in the accounting policies section of the notes to the financial statements. The depreciation charge for the year amounts to £40,246 (2019: £32,025). The carrying value of tangible fixed assets at the year-end to which depreciation applies amounts to £652,527 (2019: £584,879).

2 Income from donations and legacies

Assembly gifts
Other collective gifts
Individual gifts
Trusts
Legacies
Total donations and legacies
Total 2019
Income from charitable activities
Publishing
Total 2019		 Unrestricted
Funds
2020
£
59,764
13,107
212,345
158,432
1,350,075
1,793,723
966,597
Unrestricted
Funds
2020

£
53,506
53,506
26,957		 Unrestricted
Funds
2020
£
59,764
13,107
212,345
158,432
1,350,075
1,793,723
966,597		 Unrestricted
Funds
2020
£
59,764
13,107
212,345
158,432
1,350,075
1,793,723
966,597		 Restricted
Funds
2020

£
682,906
451,122
1,184,941
756,364
149,455
3,224,788
3,489,885		 Total
Funds
2020
£
742,670
464,229
1,397,286
914,796
1,499,530
5,018,511
4,456,482
Total
Funds
2020
£
53,506
53,506

26,957		 Total
Funds
2019

£
965,072
648,946
1,412,157
896,587
533,720
4,456,482
Total
Funds
2019

£
26,957

Restricted
Funds
2020
£
-
-
-
26,957

3 Income from charitable activities

Page 24

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

4 Investment income

Rental income
Dividend income
Bank interest
Total 2019
5
Charitable expenditure
Grants to organisations (note 6)
Grants and allocations to individuals
Publishing, mobilisation & equipping
Support costs (note 7)
Governance costs (note 8)
Total
Total 2019		 Unrestricted
Funds
2020
Restricted
Funds
2020
Total
Funds
2020
£
£
£
1,948
-
1,948
171,069
1,160
172,229
534
66
600
173,551
1,226
174,777
269,520
1,643
271,163
Unrestricted
funds
2020
Restricted
funds
2020
Total
2020
£
£
£
780,401
1,262,234
2,042,635
1,084,878
2,106,602
3,191,480

201,574
5,550
207,124
781,897
34,249
816,146
21,833
-
21,833
2,870,583
3,408,635
6,279,218
3,106,976
3,705,587
6,812,563		 Unrestricted
Funds
2020
Restricted
Funds
2020
Total
Funds
2020
£
£
£
1,948
-
1,948
171,069
1,160
172,229
534
66
600
173,551
1,226
174,777
269,520
1,643
271,163
Unrestricted
funds
2020
Restricted
funds
2020
Total
2020
£
£
£
780,401
1,262,234
2,042,635
1,084,878
2,106,602
3,191,480

201,574
5,550
207,124
781,897
34,249
816,146
21,833
-
21,833
2,870,583
3,408,635
6,279,218
3,106,976
3,705,587
6,812,563		 Total
Funds
2019

£
2,006
267,836
1,321
271,163
Restated
Total
2019
£
1,900,711
3,724,584
221,482
925,293
40,493
6,812,563

During 2020 the Trustees have reviewed the classification of costs and identified £95,293 of costs that were previously included in support costs and then allocated to charitable expenditure which should have been directly allocated to publishing, mobilisation & equipping. The 2019 comparatives for publishing, mobilisation & equipping and support costs have been restated to provide consistency in presentation following this reclassification.

Page 25

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

6 Material grants to organisations (> £50,000 in current or prior year)

Chitokoloki Hospital
Christian Mission Charitable Trust (CMCT)
Gospel Literature Outreach (GLO)
*SRG
Gospel Fellowship Trust of India
Total of smaller grants paid to other organisations		 2020
£
78,563
65,385
59,593
15,000
54,549
1,769,545
2,042,635		 2019
£
83,781
24,661
80,348
77,264
52,618
1,582,039
1,900,711

* Grants awarded to this organisation were specifically for the purpose of disaster and poverty relief. Grants to other organisations are made in line with the policy described in the Trustees’ Report.

7 Support costs

Staff costs
Rates, light, heat and insurance
Cleaning, decorating and repairs
Travelling – Trustees
Travelling – Other
Printing, telephone, stationery and advertising
Equipment renewals and maintenance
Professional fees
Bank charges
Sundry expenses
Depreciation		 2020
£
505,960
25,008
24,329
966
8,566
16,937
52,407
84,417
12,157
45,153
40,246
**816,146 **		 Restated
2019
£
485,432
18,122
23,572
4,225
31,924
21,349
83,030
117,747
13,510
94,357
32,025
925,293

8 Governance costs

Auditor’s remuneration
Auditor’s non-audit services
Trustee meetings
Advisory group
Legal fees
Board of reference
Strategic planning		 2020
£
16,680
377
3,005
1,378
-
-
393
**21,833 **		 2019
£
20,100
3,875
10,224
4,141
1,451
702
-
40,493

Page 26

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

9 Net (expenditure)/income

Net (expenditure)/income is stated after charging:

Net (expenditure)/income is stated after charging:
2020 2019
£ £
Depreciation of tangible fixed assets:
Owned by the charity 40,246 32,025
Auditor’s remuneration – audit 16,680 20,100
Auditor’s remuneration – other services 21,414 33,072
Operating lease rentals 19,502 12,432

Other services provided by the auditor in the current year include taxation compliance services totalling £nil (2019: £5,490) and other financial services of £21,414 (2019: £27,582).

10 Staff costs

Staff costs were as follows:
Wages and salaries
Social security costs
Pension contributions		 2020
£
422,883
38,480
44,597
505,960		 2019
£
408,912
35,356
41,164
485,432

The average number of persons employed by the charity during the year was as follows:

2020 2019
No No
Administration 21 18

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

Key management personnel include the Trustees and Executive Directors. The total employee benefits of the key management personnel of the charity were £141,209 (2019: £137,477). Trustees are not remunerated (see note 11).

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £44,597 (2019: £41,164).

Page 27

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

11 Trustee remuneration and expenses

No trustees were remunerated during the current or prior years and no pension contributions were made by the charity to its defined contribution scheme in respect of any trustees.

The following expenses were incurred on behalf of, or reimbursed to, eight trustees (2019: 9 trustees):

Meals/hotels
Travel (including overseas)
Sundry		 2020
£
899
3,850
69
4,818		 2019
£
2,218
13,727
25
15,970

12 Tangible fixed assets

Cost
At 1 January 2020
Additions
Disposals
At 31 December
2020
Depreciation
At 1 January 2020
Depreciation charge
Disposals
At 31 December
2020
Net book value
At 31 December
2020
At 31 December 2019		 Freehold
Property
£
766,118
-
-
766,118
245,152
15,322
-
260,474
505,644

520,966		 Fixtures
& Fittings
£
30,106
-
-
30,106
19,768
2,513
-
22,281
7,825
10,338		 Computer
Equipment
£
110,159
107,894
(3,245)
214,808
77,709
19,951
(3,245)
94,415
120,393
32,450		 Freehold
Property
Improvements
£
24,659
-
-
24,659
3,534
2,460
-
5,994
18,665
21,125		 Total
£
931,042
107,894
(3,245)
1,035,691
346,163
40,246
(3,245)
383,164
652,527
584,879

Page 28

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

13 Investment property
Freehold
Investment
Property
£
Valuation
At 31 December 2020 and 31 December 2019 41,000
The valuation was initially based on an independent professional valuation of fair value. The Trustees
are satisfied that there has been no material change in this fair value in the current and prior year.
14 Investments
Market value
At 1 January 2020
Purchase of investments
Gift in specie
Sale of investments
Realised and unrealised gains/(losses)
Movement in cash held
At 31 December 2020
Historical cost
Investments at market value comprise:
Listed investments
Cash held as part of investment portfolio		 2020
£
7,042,015
23,160
7,065,175		 Total
£
7,752,175
1,158,831
25,416
(1,907,719)
46,357
(9,885)
7,065,175
6,311,864
2019
£
7,728,494
23,681
7,752,175

Material investments

At the year end, the charity had the following spread of listed investments by nature.

Fixed interest
UK equities
Overseas equities
Alternative holdings		 2020
£
1,524,048
1,923,283
2,088,589
1,506,095
7,042,015		 2019
£
2,185,381
2,456,222
2,217,630
869,261
7,728,494

Page 29

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

15
Debtors
Other debtors
Prepayments and accrued income
Tax recoverable
16
Creditors
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
17
Financial instruments
Financial assets
Measured at fair value through profit or loss		 2020
£
32,970
22,712
40,890
96,572
2020
£
137,279
10,074
450,091
97,298
694,742
2020
£
7,042,015		 2019
£
46,032
67,803
13,496
127,331
2019
£
171,595
21,477
267,959
109,717
570,748
2019
£
7,728,494

Financial assets measured at fair value through profit or loss comprise fixed asset listed investments, whose fair value is determined using quoted market prices in an active market.

Page 30

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18
Statement of funds
(a) Statement of funds – current year
Reserve
category
Unrestricted funds*
General funds (merger of funds)
1
Echoes of Service – legacy charity fund
1
Interlink – legacy charity fund
1
Investment property
1
Publishing department
1
Realised gains/(losses)
1
Unrealised revaluation gains/(losses)
1
A H Boulton fund
1
Mrs H Maclean Trust
1
Missionary work
2
MW transition fund
2
Legacy equalisation
2
Medical
3
Special projects
3
Ministry support
3
Training
3
National worker
3
Poverty and relief fund
4
Strategic initiative fund
5
Equipment and maintenance
6		 Balance at
1 January
2020
£
2,225,123
1,743
10,661
41,000
4,691
147,057
385,222
2,020
1,325
496,115
53,000
2,000,000
50,000
90,561
10,000
20,000
40,000
250,000
1,120,000
200,000
7,148,518		 Income
£
226,135
172,136
5,100
-
57,385
-
-
2,275
699
1,495,064
-
-
1,780
-
30
-
150
65,668
-
-
2,026,422		 Expenditure
£
(752,329)
(1,632)
(302)
-
(149,864)
-
-
(630)
-
(1,087,328)
(155,600)
-
(111,759)
-
(66,684)
(109,528)
(100,439)
(101,253)
(158,761)
(74,474)
(2,870,583)		 Transfers
In/(Out)
£
(892,897)
(172,200)
(5,000)
-
140,431
(57,460)
193,741
(2,995)
(921)
-
102,600
-
109,979
-
66,654
109,528
100,289
35,585
158,761
74,474
(39,431)		 Gains/
(Losses)
£
-
-
-
-
-
(89,597)
126,432
-
-
-
-
-
-
-
-
-
-
-
-
-
36,835		 Balance at
31 December
2020
£
806,032
47
10,459
41,000
52,643
-
705,395
670
1,103
903,851
-
2,000,000
50,000
90,561
10,000
20,000
40,000
250,000
1,120,000
200,000
6,301,761

*Category of reserve relates to the six operational areas for reserves described in the charity’s reserves policy, as described in the Trustees’ Report. Transfers are to/from the General Funds and relate to designations, or release of designation, by the Trustees or where funds are transferred to a restricted fund to cover a deficit in fund balance. £1.11m of the general funds are designated as a minimum reserve balance for category 1 per the reserves policy. Other designated funds consist of categories 2 through 6.

Page 31

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18 Statement of funds (continued)

(a) Statement of funds – current year (cont.)
Endowment funds
Balance at
1 January
2020
£
Mrs H Maclean Trust
34,161
A H Boulton fund
111,168
145,329
Balance at
1 January
2020
Income
Restricted funds
£
£
Missionary
3,860
1,611,511
Property
524,266
-
Personal needs
2,452
1,502,084
Beneficiary holding
470,390
41,785
Suspense
15,658
43,978
Missionaries’ Children fund
84,713
13,109
First Serve
2,707
12,257
Relief
117,475
-
Ramsden Fund
55,245
1,160
Missionary Furlough Fund
34,695
130
1,311,461
3,226,014
Total of funds – 31 December 2020
8,605,308
5,252,436		 Income
Expenditure
£
£
-
-
-
-
-
-
Expenditure
£
(1,611,509)
(15,922)
(1,503,214)
(102,811)
-
(38,798)
(22,842)
(112,039)
(1,500)
-
(3,408,635)
(6,279,218)		 Income
Expenditure
£
£
-
-
-
-
-
-
Expenditure
£
(1,611,509)
(15,922)
(1,503,214)
(102,811)
-
(38,798)
(22,842)
(112,039)
(1,500)
-
(3,408,635)
(6,279,218)		 Transfers
In/(Out)
£
-
-
-
Transfers
In/(Out)
£
-
15,965
-
13,624
-
(1,250)
15,000
-
(3,908)
-
39,431
-		 Gains/
(Losses)
£
1,770
5,760
7,530
Gains/
(Losses)
£
-
-
-
-
-
-
-
-
1,992
-		 Balance at
31 December
2020
£
35,931
116,928
152,859
Balance at
31 December
2020
£
3,862
524,309
1,322
422,988
59,636
57,774
7,122
5,436
52,989
34,825
1,992 1,170,263
46,357 7,624,883

Page 32

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18 Statement of funds (continued)

Unrestricted and designated funds General Monies designated to enable the trustees to administer the ongoing objectives of the charity. Investment Properties bequeathed under terms of donor’s will but subject to property “reversionary interest”. Missionary work Monies received for general disbursement for “The Lord’s Work Overseas”. Medical Monies to purchase medical supplies and equipment in hospitals and clinics. Legacy Monies designated by the Trustees to act as a “reserve” to supplement equalisation giving under the above category, missionary work unrestricted, should that important category of gift income decline. Special projects A fund set up to provide funding for all activities associated with the merger between Echoes of Service and Interlink from 1 January 2018. MW transition Monies received from third parties to augment the amounts held by fund insurers, on behalf of mission workers, to await their return from overseas. Strategic Monies set aside for the strategic funding of mission projects globally, Initiatives normally over a 3-year period. The fund is used for projects outside of the course of regular gifts and finance provided by Echoes International and is limited to those within the Brethren movement or those with substantial links to the movement. Equipment and Monies designated by the Trustees for the upkeep of the office property maintenance and capital expenditure on equipment. Publishing Monies designated by the Trustees as a “reserve” used for the publishing department of books/fact files and production of the Daily Prayer Guide and Echoes magazine. Realised gains / Details the cumulative gains/losses of the investment portfolio administered revaluations by Hargreaves Lansdown. Ministry support Monies designated by the Trustees for a variety of Christian ministries including literature work, production and distribution of vernacular Bibles and Bible study aids, radio broadcasting and other associated activities. Poverty and relief Monies designated by the Trustees to provide financial help in situations of property relief and hardship. Training Monies designated by the Trustees to enable Bible colleges training establishments to provide national workers with training in preparation for and continuance in Christian service. National worker Monies designated by the Trustees to enable National Service Agencies to distribute monies amongst their own indigenous Christian workers.

Page 33

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18 Statement of funds (continued)

Unrestricted and designated funds (cont.)

Mrs H Maclean Trust The Trust having been set up for the benefit of Echoes of Services – see also endowment fund element below. A H Boulton Fund The Fund having been set up for the benefit of Echoes of Services – see also endowment fund element below. Endowment funds Mrs H Maclean Trust The Trust having been set up for the benefit of Echoes of Services – the endowment fund is an expendable endowment. A H Boulton Fund The Fund having been set up for the benefit of Echoes of Services – the endowment fund element below is a permanent endowment. Restricted funds Missionary Monies donated for mission workers “ministry / work”. Property Established for the purchase and refurbishment of offices at 124 Wells Road, Bath. Personal needs Monies donated for mission worker’s “personal needs”. Beneficiary holding Monies awaiting distribution instructions from named beneficiary. Suspense Monies awaiting donor’s disbursement instructions. Missionaries’ The aim of this fund is to support the children of mission workers Children’s fund commended from UK assemblies to help with the educational expenses incurred, until further education, while their parents are serving on the mission field. First serve Monies received for the First Serve gap year programme. Relief Monies donated to assist in relief operations following natural disasters: earthquake, famine, fire and flood. Ramsden Fund For the provision of accommodation where appropriate and other needs of missionaries while on leave or residing in the UK. Missionary Furlough The provision of gifts to missionaries on furlough in the UK. Fund

Page 34

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18 Statement of funds (continued)

(b) Statement of funds – prior year
Reserve
category
Unrestricted funds*
General funds (merger of funds)
1
Echoes of Service – legacy charity fund
1
Interlink – legacy charity fund
1
Investment property
1
Publishing department
1
Realised gains
1
Unrealised revaluation gains/(losses)
1
A H Boulton fund
1
Mrs H Maclean Trust
1
Missionary work
2
MW transition fund
2
Legacy equalisation
2
Medical
3
Special projects
3
Ministry support
3
Training
3
National worker
3
Poverty fund
4
Strategic initiative fund
5
Equipment and maintenance
6		 Balance at
1 January
2019
£
3,699,531
3,752
10,510
41,000
1,151
-
(391,122)
197,962
1,839
746,608
53,000
2,000,000
65,000
94,307
9,480
19,328
11,885
250,615
1,074,742
200,000
8,089,588		 Income
£
165,572
275,328
37,717
-
29,878
-
-
4,394
858
720,081
-
-
1,209
-
11,100
60
15,909
6,777
3,000
-
1,271,883		 Expenditure
£
(654,077)
(277,337)
(37,566)
-
(146,338)
-
-
(953)
-
(970,574)
(285,600)
-
(117,120)
(3,746)
(72,250)
(109,887)
(141,709)
(12,500)
(180,844)
(96,475)
(3,106,976)		 Transfers
In/(Out)
£
(985,903)
-
-
-
120,000
-
-
(199,383)
(1,372)
-
285,600
-
100,911
-
61,670
110,499
153,915
5,108
223,102
96,475
(29,378)		 Gains/
(Losses)
£
-
-
-
-
-
147,057
776,344
-
-
-
-
-
-
-
-
-
-
-
-
923,401		 Balance at
31 December
2019
£
2,225,123
1,743
10,661
41,000
4,691
147,057
385,222
2,020
1,325
496,115
53,000
2,000,000
50,000
90,561
10,000
20,000
40,000
250,000
1,120,000
200,000
7,148,518

Page 35

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

18 Statement of funds (continued)

(b) Statement of funds – prior year (cont.)
Endowment funds
Mrs H Maclean Trust
A H Boulton fund
Restricted funds
Missionary
Property
Personal needs
Beneficiary holding
Suspense
Missionaries’ Children fund
First Serve
Relief
Ramsden Fund
Missionary Furlough Fund
Total of funds – 31 December 2019		 Balance at
1 January
2019
£
30,191
105,000
135,191
Balance at
1 January
2019
£
293
540,188
2,828
455,039
42,332
87,005
17,990
237,245
53,702
34,537
1,471,159
9,695,938		 Income
£
-
-
-
Income
£
1,801,535
-
1,496,666
75,266
-
42,076
23,627
69,992
1,719
158
3,511,039
**4,736,629 **		 Expenditure
£
-
-
-
Expenditure
£
(1,839,642)
(15,922)
(1,512,042)
(59,915)
-
(44,368)
(38,910)
(189,762)
(5,026)
-
(3,705,587)
(6,766,270)		 Transfers
In/(Out)
£
-
(622)
(622)
Transfers
In/(Out)
£
41,674
-
15,000
-
(26,674)
-
-
-
-
-
30,000
-		 Gains/
(Losses)
£
3,970
6,790
10,760
Gains/
(Losses)
£
-
-
-
-
-
-
-
-
4,850
-
4,850
**939,011 **		 Balance at
31 December
2019
£
34,161
111,168
145,329
Balance at
31 December
2019
£
3,860
524,266
2,452
470,390
15,658
84,713
2,707
117,475
55,245
34,695
1,311,461
8,605,308

Page 36

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

19 Analysis of net assets between funds

Analysis of net assets between funds – current year

Unrestricted
Funds
2020
Restricted
Funds
2020
£
£
Tangible fixed assets
128,218
524,309
Investments
5,874,045
1,038,271
Investment property
41,000
-
Current assets
503,149
57,774
Creditors due within one year
(244,651)
(450,091)
6,301,761
1,170,263
Analysis of net assets between funds – prior year
Unrestricted
Funds
2019
Restricted
Funds
2019
£
£
Tangible fixed assets
60,613
524,266
Investments
6,880,675
726,171
Investment property
41,000
-
Current assets
713,289
84,713
Creditors due within one year
(547,059)
(23,689)
7,148,518
1,311,461		 Endowment
Funds
2020
£
-
152,859
-
-
-
152,859
Endowment
Funds
2019
£
-
145,329
-
-
-
145,329		 Total
Funds
2020
£
652,527
7,065,175
41,000
560,923
(694,742)
7,624,883
Total
Funds
2019
£
584,879
7,752,175
41,000
798,002
(570,748)
8,605,308

20 Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustment for:
Depreciation charges
Losses/(gains) on investments
Dividends, interest and rents from investments
Gift of investments in specie
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash used in operating activities		 2020
£
(980,425)
40,246
(46,357)
(174,777)
(25,416)
30,759
123,994
(1,031,976)		 2019
£
(1,090,630)
32,025
(939,011)
(271,163)
-
(15,900)
343,334
(1,941,345)

Page 37

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

21 Analysis of cash and cash equivalents

Cash in hand
Total		 2020
£
464,351
464,351		 2019
£
670,671
670,671

22 Operating lease commitments

At 31 December 2020, the total of the charity’s future minimum lease payments under non-cancellable operating leases was:

Amounts payable:
Within one year
Between one and five years		 2020
£
19,502
19,502
39,004		 2019
£
20,444
40,888
61,332

23 Post balance sheet events

The Trustees have not identified any post balance sheet events requiring either adjustment or disclosure within the financial statements.

Page 38