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2021-12-31-accounts

Charity Registration No. 1173851 / SC047797

ECHOES INTERNATIONAL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

ECHOES INTERNATIONAL

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees’ Report 2 – 12
Statement of Trustees’ Responsibilities 13
Independent Auditor’s Report 14 – 17
Statement of Financial Activities 18
Balance Sheet 19
Statement of Cash Flows 20
Notes to the Financial Statements 21 – 34

ECHOES INTERNATIONAL

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

Current trustees: David Brown
Sharon Durrant
John Gamble
Hugh Burns Mitchell
Fiona McPhail
Simon Prince (Vice-chair)
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 Jim Armstrong, General Director
Rupert Abbott, Missions Director
John Aitken, Partnership Executive
Auditor: Burton Sweet Limited
The Clock Tower
5 Farleigh Court
Old Weston Road
Flax Bourton
Bristol
BS48 1UR
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

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and audited financial statements for the period ended 31 December 2021. Echoes International is a charitable incorporated organisation (CIO) registered with the Charity Commission with charity number 1173851 on 18 July 2017. Echoes International is also registered with the Scottish Charity Regulator (OSCR) with charity number SC047797.

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.

Charitable objects

Echoes International has the following legal objects, under which the charity is established:

Echoes International, as a mission support group, seeks to encourage (a) churches and individuals into crosscultural mission; (b) interest in and prayer for mission within the UK. To achieve this we publish news and information about mission activity across the world. We also distribute financial gifts and provide support to mission partners and indigenous believers. The Trustee report details the activities and strategy in place to support our aims.

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 and Senior Leadership Meeting.

Strategies for achieving objectives

In addition to our regular Trustees’ meetings, we review our strategy at our annual planning discussion and the main objectives for the charity set out in our vision statement assessing how well we have managed to achieve them.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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.

Echoes International’s vision is:

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

At the end of 2020 a review of the charity’s operating strategy was undertaken by the Trustees and this was updated to reflect the journey Echoes International has been on since the merger at the beginning of 2018. We did not embark on a new strategy but there was an agreement to continue on the journey we began with the merger. In line with our vision and the great commission in Matthew 28 we are embarking on a “Mission Driven Model” as we consider the need of the Gospel across the unreached world for Christ.

As we look forward the Trustees fully recognise that the work of Echoes International is a work of faith. We have seen God’s faithfulness over the past 150 years and we depend on Him for every aspect of our operation. Since the merger the Trustees have sought to “invest” in mission recognising the reserves that were previously held. The “Mission Driven” strategy is seeking to bring the charity into a situation where the annual spending and expenses are equalised in the medium to longer term. We have just completed the first year of this strategy.

Activities for achieving objectives

Covid19 impacted 2021 significantly, just as it did in 2020. Whilst we were limited in travel and in face-to-face meetings we built on the approach developed in 2020 with online meetings. Despite the physical barriers our faithful God was still calling individuals to serve in cross-cultural mission.

Much of 2021 the staff worked from their homes, just as they did in 2020, until October 2021. Over the summer, in anticipation of going back to the office, the Executive team agreed a flexible working arrangement which has resulted in a blended model of home-based and office-based work.

We continued to have an active year which can been seen from the following details:

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

was on a work placement year with EI and whose research contributed significantly to our projects that included creating a coffee table book, Footsteps Worth Following; a children’s resource pack, Mission Expedition, and the 150[th] anniversary film. The whole team did a fantastic job of collating, filming and editing all the material and our publications were all ready by the end of the year.

Partnerships

In 2020, following a strategic assessment of global mission priorities for the period 2021- 2026, the trustees of Echoes International determined that essential to the progress of cross-cultural mission and the ministry of the organisation was the development of partnerships and therefore appointed a Partnership Executive. This role was structured towards the development of partnerships in the mobilising of people for mission, in finance, links with local churches and enhancing the existing partnership with mission partners.

Given that 42% of the world’s population have never heard the Gospel we wish to see the good news of salvation in Jesus Christ go to the unreached areas of the world. Echoes International have been working to develop partnerships with sister organisations to enable new pathways for service into such areas for future mission partners.

During the last 150 years of Echoes of Service, we have developed significant mission expertise, a trusted reputation and global contacts for mission. We are aware of mission opportunities and projects in every continent and have systems in place to process finance and provide good accountability for any gift given. With the necessary regulatory compliance in place in safeguarding, and in fraud and money laundering prevention Echoes is well placed to enable trusts and individuals wishing to invest in mission to do so through the organisation. Echoes can ensure that finance will go to where it is intended and ensure that it is used for the purpose it has been given. There is therefore an opportunity for those led by God to invest in mission, to partner with us as we support over 100 strategic projects and many other indigenous people in the mission task. Echoes continues to be an organisation which operates the Living by Faith principle and looks to God alone to supply our needs.

The model of mission which Echoes adopts is dependent on every mission partner being sent by a local church. Echoes International does not send mission partners. It is vital, however, that there is good communication between the commending / sending church and Echoes International. We therefore regularly meet with elders of local churches to assist them in any way we can in their sending. We aim to develop links with assemblies in the UK we don’t know so well and the directors have a visitation programme for this. We facilitate linking with local church leaders through an invitation to attend the Echoes International Annual Seminar, a 24-hour event, which brings teaching on a mission related subject over 6 sessions.

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, an organisation supporting charities and churches with safeguarding matters.

Changes in our approach during 2021 originated from two areas: (a) we carried out our annual self-audit to identify improvements we could make, including reports published by various bodies reviewing previous safeguarding issues with religious bodies; (b) we implemented the various changes recommended by the

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

external review at the end of 2020. This was completed and the changes sent to all our serving mission partners and their sending churches. Safeguarding now touches most areas of the charity covering recruitment, training, reporting, giving and meetings with beneficiaries and Mission Partners.

We plan to carry out another self-audit of our safeguarding approach and we will also run our on-line training programme for our mission partners and relevant staff which is run every three years in accordance with our policy.

Risk and Security

We continue to raise awareness of risks encountered in all countries that mission partners are actively serving. The rating of these countries is reviewed annually. Quarterly security updates are sent to commending churches as well as the active mission partners. During 2021, Echoes International’s Risk and Security Policy was revised to further reflect the approach we take. Operational Frameworks for Risk and Security and a Crisis Management Team were also documented. We ran another two Hostile Environment & First Aid Training Courses (HEFAT) with 18 participants. As new mission partners mobilise, risk and security workshops have been held for those going to countries we perceive as a higher risk in mission along with representatives from the commending church. Completion of Echoes International’s risk documents (particularly Key Information) have now been completed by most mission partners serving in countries with a recognised higher risk. SALT insurance continues to be offered as an optional service to mission partners and the assistance of a professional advisor is proving to be invaluable.

In the main, our activity over the year can be summarised in the four undernoted priorities:

2021 has been a very difficult year mainly caused by the pandemic. Despite the impacts particularly on income we have focussed on our agreed strategy throughout the year. Key relationships were developed and building blocks were put in place to help the Trustees deliver the agreed strategy.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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:

Strategic projects – Key ministry areas of indigenous workers are supported by Echoes international for a stated period (normally between 3-5 years) to help equip them in establishing their work. Overall, we are supporting around 100 different projects in 35 countries, amounting to around £550,000. Opportunities for new projects were limited in 2021 by the pandemic. However, at least nine commenced during the year, including several partnerships with other organisations. New projects broadly fell into the categories of either training or church-planting/evangelism. Accredited training programmes were initiated in Ethiopia, Kenya, Uganda and Zambia in conjunction with IBCM and the Australian College of Christian Studies. ACCS helped to deliver the training and EI supported through the provision of equipment and other practical aspects. In Latin America, new training work for church leaders began in Panama and support for cross-cultural mission training in Argentina was renewed. In Thailand, support was provided for training church planters among the Karen people through Chrestos. New outreach projects have included media ministry in Bolivia, support for national evangelists in the Brazilian Amazon and microbusiness initiatives in Uzbekistan with People International. Support for Argentinean evangelists in Patagonia was also renewed.

Financial review

Total funds held on the balance sheet at 31 December 2021 were £6.6m (2020: £7.6m), of which £0.8m (2020: £1.3m) related to Restricted Funds and Endowment Funds. The remainder of the reserves related to the charity’s long-term expenditure requirements. The reduction in funds is in line with the strategy referred to earlier.

Gift income was £3.9m (2020: £5.0m). The main reason for the reduction in gift income was income from legacies which was £0.8m lower in 2021 compared to 2020. The level of restricted gifts increased to 78% (2020: 64%) of total gift income, mainly driven by a reduction in legacy income (which are normally unrestricted).

Total charitable distributions, in the form of grants made to institutions and individuals amounted to £4.6m (2020: £5.2m), as shown in note 6 to the financial statements. Overall, total charitable expenditure decreased by £0.5m from £6.3m in 2020 to £5.7m in 2021 mainly because of the fall in gift income.

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 £0.04m during the year (2020: £0.01m).

Investment policy and performance

The Trustees have the power to invest all amounts not needed for immediate working capital. During 2021, 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.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

The main portfolio had investments with a cost of £4.9m (2020: £6.1m) at the year-end. This portfolio was valued at £5.9m (2020: £7.1m) at 31 December 2021. During the year, £1.9m (2020: £0.9m) was withdrawn from investments to fund the charities activities.

The A H Boulton Fund portfolio had investments with a cost of £0.1m (2020: £0.1m) at the year-end. This portfolio was valued at £0.1m (2020: £0.1m) at 31 December 2021. In 2020, 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 £0.03m respectively at the end of 2021 and a cost of £0.03m and £0.05m respectively at the 2020 year-end. These portfolios were valued at £0.04m and £0.05m respectively at 31 December 2021 and 2020. 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:

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.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

For 2021 the Trustees decided to keep the following specific levels of reserve across six operational areas:

Operational area Reserve level to be held Minimum
reserve level
1 Office and Operating
Expenses		 1 year’s equivalent expenses will be retained £1.09m
2 Discretionary Allocation -
Mission Workers		 2 years equivalent expenses £2.26m
3 Other Mission Support 1 year’s normal allocation £0.16m
4 Disaster and poverty relief £250,000 to be held £0.25m
5 Strategic projects 2 years allocation to be retained £1.10m
6 Capital requirements £200,000 to be held £0.2m
Total £5.06m

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 at 31 December 2021 were £6.6m (2020: £7.6m), of which £0.8m (2020: £1.3m) 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 were £5.8m at 31 December 2021.

The unrestricted funds of the charity at 31 December 2021 of £5.8m (2020: £6.3m) represented an excess of £0.6m (2020: £1.1m) 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.

At the beginning of 2021 the Trustees agreed a strategy which would seek to address the present gap between our income and expenditure levels. Much of 2021 was about putting key activities in place which will seek to reverse the trend we have pursued since the merger in 2018. There are already encouraging signs in early 2022 but this was always planned to be a medium to longer term strategy.

Going concern

In accordance with our agreed strategy 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.

Risk management

During 2021 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 three Trustees with the General Director attending. The meetings are held every three months. The Risk Control Framework is

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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 are very aware that we operate in an increasingly secular culture. Consequently, we are faced with changing laws and attitudes which will impact the charity’s core activities. We review media and changes in legislation on an ongoing basis in order to identify changing as early as possible and, if need be, discuss potential mitigations to ensure the delivery of our objectives. In addition, we are seeking to see the Christian gospel spread to areas of the world which are hostile to the message. We are praying to the Lord of the harvest for labourers into unreached areas.

Our risk and security policy and procedures are in place to help mitigate risks, equip those serving and identify issues as early as possible. This is discussed in every trustee meeting and operational meetings with the senior leaders’ team.

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 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.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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.

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 Partnership Executive in 2021.

Details of remuneration are disclosed in note 10. 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 2021 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 Mr James McGregor Resigned 26 August 2021 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 2021 were:

Mr Jim Armstrong General Director Mr Rupert Abbott Mission Director Mr John Aitken Partnership Executive

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.

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.

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ECHOES INTERNATIONAL

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

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 General 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 we also operate 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 remitting 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 £465k of discretionary reserves for the operational expenses of the charity in 2021. This was to allow them to support their agreed 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.

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ECHOES IKfERNATIONAL STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees are ￿￿nSible for preparing the Trustees, Rep)rt and the finanaal ststements in accordan with applicable law and United Kingdcffi Accountirtg Standards (United Kingdom Generally Accepted Accounting Practice). The law appllcable to charities in Scotland requlres the trustees to prepare flnanclal statements for each flnanclal year which gwe a true and fair view of the state of affairs of the charity and of the incoming resour and application of resour￿ of the charlty for that period. In weparing these financial statements, the trustees are required to: Selert suitable accounting Folicies and then apply them conslstendy,, Observe the methods and principles in the Charlties SORP (FRS 102); Make judgements and e5Umates that are reasonable and prudent; Ststs whether appllcable accounting stsndarés have teen followed subj'ect to any material departures disclosed and explained in the financial statements,, and p￿pare the flnancial statements on the golng concern basis unless it is inappropriate to presume that the charltable group w511 continue In operatlon. The Trustees a￿ responslble for keeping proFer accounting records that disclose with reasonable accuracy at any tlme the flnanclal posStion of the charity and enable them to ensure that the fina￿la1 ststements comp with the Charities ALt 2011, the Charities {Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the char￿e5 Accounts (Scotland) Regulations 2006 and the prow5ions of its constitut￿n. They a￿ also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and detection of fraud aTrd other irregularities. The Tnjstees are responsible for the MaIntenan￿ and intsgrity of the flftancial infC¢ma￿on Included on the tharity s wet6ite. Legislatw)n In the UnSted Kingdom govemiThJ the preparation and dissemination of financial statements may differ from legislation in other Jurfsdlctlons. The Trustee5' Report was consldered and approved by the Trustees at their meeting c4) 17 May 2022 and Jbsequently slgned on their behalf by.. Paul John 17.05.2022 ngft Chaimwn Page 13

ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of Echoes International (the “Charity”) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of the Act. 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’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion, the financial statements:

Basis of 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.

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2021

Other information

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

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

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 Act 2011 or Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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 the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 with it exists. Misstatements can arise

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ECHOES INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2021

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 16

ECHOES IMfERNATIONAL INDEPENDENT AUDrn)R'S REPORT TO THE TRUSTEES OF ECHOES INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2021 A further description of our rwonsibllities for the audit of the flnandal statements is ILKated on the Finandal Rewrting Council's website at This des(rlptlon forms part of our audltorfs report. Bu weet Llmlted s& utory Auditor The Clcck Tower 5 Farfelgh Court Old Weston Road Flax Bourton Brlstol 8548 IUR Date.. 17 May 2022 Page 17

ECHOES INTERNATIONAL

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Investments
4
Other
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net gains / (losses) on investments
Gain on sale of investment property
Net income/(expenditure)
9
Transfers between funds
19
Net movement between funds
Total funds at start of year
19
Total funds at end of year
19
Net income/(expenditure) before
investment gains / (losses)		 Unrestricted
Funds
£
873,959
60,863
159,932
1,296
1,096,050
2,667,583
2,667,583
(1,571,533)
547,372
31,500
(992,661)
523,951
(468,710)
6,301,761
5,833,051		 Restricted
Funds
£
3,046,130
72
992
972
3,048,166
3,079,307
3,079,307
(31,141)
1,348
-
(29,793)
(523,951)
(553,744)
1,170,263
616,519		 Endowment
Funds
£
-
-
-
-
-
-
-
-
18,482
-
18,482
-
18,482
152,859
171,341		 Total Funds
2021
£
3,920,089
60,935
160,924
2,268
4,144,216
5,746,890
5,746,890
(1,602,674)
567,202
31,500
(1,003,972)
-
(1,003,972)
7,624,883
6,620,911		 Total Funds
2020
£
5,018,511
53,506
174,777
5,642
5,252,436
6,279,218
6,279,218
(1,026,782)
46,357
-
(980,425)
-
(980,425)
8,605,308
7,624,883

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 21 to 34 form part of these financial statements See note 12 for fund-accounting comparative figures

18

ECHOES INTERNATIONAL BALANCE SHEEr AS AT 31 MARCH 2021 2021 2020 Not• Flx•d as￿¢$ Tangible asset8 Investment prc)8rty Inve8tM•nts 13 654.775 652,527 41,000 7.065,175 14 5,855,143 Total Trxed assets 8.509,918 7.756,702 Curr•nt au•ts D8btors Cash at bank Bnd in hand 16 324,516 178.881 06,572 484.351 Total current assets 503,377 580,923 Creditors '. amounts lallln9 due ¥￿thIn one y8ar 1392,3841 1094,7421 N•t ¢urr•nt 14••ts I Ill•blllll••l 110,993 1133,8191 Total i••ts l••• ¢urr•nt Ilibllltl•# 6,820,911 7,624,883 N•t 1g4•ts 8,820.911 7,824,883 Fund• Unr••lrfct•d fund• Gengral fun¢$ Deslgnot8<1 fvnd$ 1.948,294 3.884,757 eCQ.032 5,495,729 5,833.051 816,519 171,341 8,301,781 1.170.283 1S2,859 R••lrlct•d lund• Endowm•ntfund• 20 Tot•1 fund• 6.820,911 7,624,883 The88 fin8n¢lg19totsm•nts •pprov8d by th• Twsts•¥ on 17 May 2022 and are glgned on thelr t4hglf by.. Paul John g, Ch•lrni•n 17.05.2022 Englloh Charfty numb•r.' 1173881 Seottl8h Charlty numb•r.' SC047797 coM￿nY numb•r. CE011337 Th• not•s on pag•$ 21 to 34 fonn of th￿+ finaneial ststsffl•nts 19

ECHOES INTERNATIONAL

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2021

Note
Net cash inflow from operating activities
17
Non-operational cash flows:
Investing activities
Payments for tangible fixed assets
Movement in cash held as investments
Purchase of investments
Proceeds from sales of investments
Investment income
Proceeds from sale of investment property
Net cash inflow/(outflow) for the year
18
Cashflow Restrictions		 2021
£
(2,224,780)
(71,368)
(77,460)
(454,941)
2,309,635
160,924
72,500
1,939,290
(285,490)		 2020
£
(1,031,976)
(107,894)
9,885
(1,158,831)
1,907,719
174,777
-
825,656
(206,320)

Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice, this restriction has not had any effect on cash flows for the year.

The notes on pages 21 to 34 form part of these financial statements

20

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Accounting convention

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and 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 UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (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 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity is a public benefit entity as defined under FRS102. The Trustees consider that there are no material uncertainties affecting the ability of the charity to continue as a going concern.

Income

Income from donations is included in income when these are receivable, except as follows:

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;

II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Legacies are included on a receivable basis where charity is entitled to the income, it can be measured reliably and receipt is probable. 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 not included in income but is treated as a contingent asset and disclosed if material.

Investment income is included on a receivable basis.

Donations in kind comprise donated services where the costs are measurable and the services would otherwise have to be paid for to maintain operational effectiveness.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Charitable Activities

Grants awarded are allocated to charitable activities.

Grants awarded are treated as expenditure and a liability in the accounts as soon as they become legal or constructive obligations. In the case of multi-year grant awards, the funding for all years is immediately recognised unless there are conditions which need to be met by the recipient to enable the release of subsequent years’ funding.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

21

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

Allocation and apportionment costs

Certain expenditure is directly attributable to specific activities and this has been included in those cost categories. Other costs, which are attributable to more than one category, are apportioned across cost categories on the basis of an assessment of workload carried out from time to time.

Overhead support costs have been allocated between charitable activities. The apportionment has been allocated on the basis of staff time.

Pension costs and other post-retirement benefits

The charity contributes to defined contribution pension schemes. Contributions payable to the charity's pension schemes are charged to the Statement of Financial Activities in the period to which they relate.

Tangible fixed assets

Fixed assets are held at cost less accumulated depreciation. Assets costing less than £300 are not capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated ultimate residual value, over the useful life of that asset as follows:

Freehold Property - over 50 years; straight line Fixtures & Fittings - 15 - 33% reducing balance and 25% straight line

Computer equipment - over 3 years; straight line

Freehold property improvements - over 10 years; straight line

Fixed asset investments

Investments are included at market value at 31 December. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

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.

Liabilities and provisions

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds form part of unrestricted funds and have been identified as being for particular purposes by the Trustees. They are not restricted and can be transferred to general funds at any time at the discretion of the Trustees.

Further explanation of the nature and purpose of each fund is included in note 19 of the financial statements.

22

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

2 Income from: Donations and legacies

Assembly Gifts
Individual gifts
Other collective gifts
Trusts
Legacies
Prior year
Assembly Gifts
Individual gifts
Other collective gifts
Trusts
Legacies		 Unrestricted
Funds
£
86,388
188,059
25,643
34,387
539,482
873,959
Unrestricted
Funds
£
59,764
212,345
13,107
158,432
1,350,075
1,793,723		 Restricted
Funds
£
575,015
1,228,761
499,157
583,865
159,332
3,046,130
Restricted
Funds
£
682,906
1,184,941
451,122
756,364
149,455
3,224,788		 Total Funds
2021
£
661,403
1,416,820
524,800
618,252
698,814
3,920,089
Total Funds
2020
£
742,670
1,397,286
464,229
914,796
1,499,530
5,018,511

As at the year-end the charity had been notified of legacies with an estimated value of £674,160, which have not been included in income at 31 December 2021 as no confirmation of impending distribution or notification of estate accounts being finalised has been received. The charity has been made aware of additional legacies; however even an approximation of the value of these legacies is not possible at the date of signing the accounts.

3 Income from: Charitable activities

Publishing Unrestricted
Funds
£
60,863
60,863		 Restricted
Funds
£
72
72		 Total Funds
2021
£
60,935
60,935		 Total Funds
2020
£
53,506
53,506

All charitable activity income received in 2020 was unrestricted.

4 Income from: Investments

Dividends
Interest received
Rent from investment property		 Unrestricted
Funds
£
159,842
90
-
159,932		 Restricted
Funds
£
988
4
-
992		 Total Funds
2021
£
160,830
94
-
160,924

23

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

4 Income from: Investments (continued)

Prior year
Dividends
Interest received
Rent from investment property
Expenditure on: Charitable activities
Gifts to organisations
Gifts and allocations to individuals
Publishing, mobilisation & equipping
Member care
Gifts to organisations
Gifts and allocations to individuals
Publishing, mobilisation & equipping
Member care		 Direct
Costs
£
-
-
201,212
-
201,212
Direct
Costs
Restated
£
-
-
207,124
-
207,124		 Unrestricted
Funds
£
171,069
534
1,948
173,551
Grant funding
of activities
(Note 6)
£
1,534,176
3,113,337
-
-
4,647,513
Grant funding
of activities
(Note 6)
Restated
£
2,042,635
3,191,480
-
-
5,234,115		 Restricted
Funds
£
1,160
66
-
1,226
Support
Costs
(Note 7)
£
152,466
152,466
454,627
138,606
898,165
Support
Costs
(Note 7)
Restated
£
142,250
142,250
424,161
129,318
837,979		 Total Funds
2020
£
172,229
600
1,948
174,777
Total Funds
2021
£
1,686,642
3,265,803
655,839
138,606
5,746,890
Total Funds
2020
Restated
£
2,184,885
3,333,730
631,285
129,318
6,279,218

In the 2021 year, the disclosure of expenditure by charitable activity was improved by the Trustees, splitting support costs between activities based on staff time. A prior-year restatement of this allocation was carried out. Total charitable activity expenditure in the prior-period did not change.

24

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

6 Analysis of grants

The total grants awarded to institutions during the year was as follows:
Chitokoloki Hospital
Christian Mission Charitable Trust (CMCT)
Gospel Fellowship Trust of India
Gospel Literature Outreach (GLO)
Harvest Ministries International
Project Angola
Total of grants to other organisations (< £50,000 in current or prior year)
Total grant commitments to individuals
Total grants commitments made in the year
Reconciliation of grants payable
Commitments brought forward
Net commitments made in the year
Payments during the year
Commitments carried forward and payable within one year
Note 16
Support costs
Staff costs
(Note 10)
Rates, light, heat and insurance
Cleaning, decorating and repairs
Travel - Trustees
Travel - Other
Office costs
Governance costs
(Note 8)
Equipment renewals and maintenance
Professional Fees
Bank charges
Sundry office expenses
Depreciation		 2021
£
23,826
29,558
59,330
11,372
69,313
155,683
1,185,094
3,113,337
4,647,513
2021
£
390,240
4,647,513
(4,881,644)
156,109		 Total
2021
£
530,793
37,622
13,632
1,537
36,810
18,173
20,790
78,148
67,672
10,597
13,271
69,120
898,165		 2020
£
78,563
65,385
54,549
59,593
48,962
6,000
1,729,583
3,191,480
5,234,115
2020
£
267,959
5,234,115
(5,111,834)
390,240
Total
2020
£
505,960
25,008
24,329
966
8,566
16,937
21,833
52,407
84,417
12,157
45,153
40,246
837,979

25

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

8
Governance costs
Auditor's fees - for audit services
- for other services
Trustee meetings
Advisory group
Strategic planning and projects
9
Net income/(expenditure) for the year
This is stated after charging:
Auditor's remuneration
- for audit services
- for other services
Trustees' travel, hotel, meals, meeting and training expenses
Depreciation		 Total Funds
2021
£
16,440
300
2,416
-
1,634
20,790
2021
£
16,440
300
1,438
69,120		 Total Funds
2020
£
16,680
377
3,005
1,378
393
21,833
2020
£
16,680
21,414
4,435
40,246

4 Trustees have been reimbursed for their out of pocket expenses as described above (2020: 3). No Trustee received any remuneration during the year or prior year.

Aggregate donations from Trustees, key management personnel, and other related parties was £10,654 (2020: £4,410).

10 Staff costs and numbers

The aggregate payroll costs were:

Wages & salaries
Social security costs
Pension contributions		 2021
£
447,100
33,901
49,792
530,793		 2020
£
422,883
38,480
44,597
505,960

No employee received emoluments of more than £60,000.

The average weekly number of employees during the year was 22 (2020: 21), calculated on the basis of average headcount. Key management personnel include the Trustees and Executive Directors. The total employment benefits received by key management personnel including employer national insurance and employer pension were £125,516 (2020: £141,209).

11 Taxation

The charity is exempt from corporation tax on its charitable activities.

26

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
12 Statement of Financial Activities comparative figures
Unrestricted Restricted Endowment Total Funds
For the year ended 31 December 2020 Funds Funds Funds 2020
£ £ £ £
Income from:
-
Donations and legacies 1,793,723 3,224,788 5,018,511
Charitable activities 53,506 - - 53,506
Investment income 173,551 1,226 - 174,777
Other income 5,642 - - 5,642
Total income 2,026,422 3,226,014 - 5,252,436
Expenditure on:
Charitable activities 2,870,583 3,408,635 - 6,279,218
-
Total expenditure 2,870,583 3,408,635 6,279,218
Net gains / (losses) on investments 36,835 1,992 7,530 46,357
Net income/(expenditure) for the year (807,326) (180,629) 7,530 (980,425)
Transfers between funds (39,431) 39,431 - -
Net movement in funds (846,757) (141,198) 7,530 (980,425)
Total funds at start of year 7,148,518 1,311,461 145,329 8,605,308
Total funds at end of year 6,301,761 1,170,263 152,859 7,624,883
13 Tangible fixed assets
Freehold
Freehold Fixtures & Computer property
Property Fittings equipment improvements Total
£ £ £ £ £
Cost
At 1 January 2021 766,118 30,106 214,808 24,659 1,035,691
Additions 44,994 9 26,375 - 71,378
- - -
Disposals (44,743) (44,743)
At 31 December 2021 811,112 30,115 196,440 24,659 1,062,326
Depreciation
At 1 January 2021 260,474 22,281 94,415 5,994 383,164
Charge for the year 15,547 1,819 49,294 2,460 69,120
- - -
Disposals (44,733) (44,733)
At 31 December 2021 276,021 24,100 98,976 8,454 407,551
Net book value
At 31 December 2021 535,091 6,015 97,464 16,205 654,775
At 31 December 2020 505,644 7,825 120,393 18,665 652,527
----- End of picture text -----

27

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
14 Investments
Total
£
Market value
At 1 January 2021 7,065,175
Purchase of investments 454,941
Sale of investments (2,309,635)
Realised and Unrealised gains/losses 567,202
Movement in cash held 77,460
At 31 December 2021 5,855,143
Historical cost 4,916,639
At the year end the charity had the following spread of investments by nature:
2021 2020
£ £
Listed investments
Fixed interest 1,019,421 1,524,048
UK equities 1,670,059 1,923,283
Overseas equities 1,803,172 2,088,589
Alternative holdings 1,327,519 1,506,095
Cash held as part of the investment portfolio 34,972 23,160
5,855,143 7,065,175
15 Debtors
2021 2020
£ £
Due in less than one year:
Prepayments and accrued income 36,084 22,712
Tax reclaimable under Gift Aid 14,115 40,890
-
Legacies receivable 240,155
Other debtors 34,162 32,970
324,516 96,572
16 Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 78,025 137,279
Grants payable (Note 6) 156,109 390,240
Other taxation and social security 32,759 10,074
Accruals and deferred income 89,531 97,298
Other creditors 35,960 59,851
392,384 694,742
----- End of picture text -----

28

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

17 Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Investment income
Depreciation
Losses / (gains) on investments
Gift of investments in specie
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Gain from sale of investment property
Net cash (outflow)/inflow from operating activities
18 Analysis of changes in cash during the year
Cash at bank and in hand
Cash at bank and in hand		 2021
£
(1,003,972)
(160,924)
69,120
(567,202)
-
(227,944)
(302,358)
(31,500)
(2,224,780)
2021
£
178,861
2020
£
464,351		 2020
£
464,351
2019
£
670,671		 2020
£
(980,425)
(174,777)
40,246
(46,357)
(25,416)
30,759
123,994
-
(1,031,976)
Change
£
(285,490)
Change
£
(206,320)

29

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

19 Movement in funds

For the year ended 31 December 2021

At 1 Jan
2021
£
Restricted funds
Missionary
3,862
Property
524,309
Personal needs
1,322
Beneficiary holding
422,988
Suspense
59,636
Missionaries' Children's Fund
57,774
First Serve
7,122
Relief
5,436
Ramsden fund
52,989
Missionary Furlough fund
34,825
Ruth Hadley Memorial fund
-
1,170,263
Unrestricted funds
General funds (merger of funds)
806,032
Echoes of Service - legacy charity fund
47
Interlink - legacy charity fund
10,459
First Serve
-
Suspense
-
Investment property
41,000
Publishing department
52,643
Unrealised revaluation gains/(losses)
705,395
A H Boulton fund
670
Mrs H Maclean Trust
1,103
Missionary work
903,851
Legacy equalisation
2,000,000
Medical
50,000
Special projects
90,561
Ministry support
10,000
Training
20,000
National worker
40,000
Poverty and relief fund
250,000
Strategic initiative fund
1,120,000
Equipment and maintenance
200,000
6,301,761
Endowment funds
Mrs H Maclean Trust
35,931
A H Boulton Fund
116,928
152,859
Total funds
7,624,883		 Income
£
1,440,715
-
1,533,425
17,465
(45,519)
9,073
-
-
987
-
92,020
3,048,166
550,845
-
5,229
10,360
-
-
67,722
-
2,554
788
351,529
-
4,905
-
(1,450)
-
450
103,118
-
-
1,096,050
-
-
-
4,144,216		 Expenditure
£
(1,454,065)
(20,641)
(1,546,120)
(16,990)
(838)
(1,295)
(7,122)
(5,436)
-
(1,500)
(25,300)
(3,079,307)
(789,207)
-
(274)
(22,982)
-
-
(165,971)
-
848
-
(1,065,116)
-
(78,881)
(4,400)
(54,593)
(44,587)
(121,000)
(94,829)
(153,568)
(73,023)
(2,667,583)
-
-
-
(5,746,890)		 Transfers
£
14,490
(503,668)
16,373
-
(13,279)
(37,867)
-
-
-
-
-
(523,951)
990,276
(47)
(4,900)
20,000
5,719
(41,000)
85,606
(893,919)
(4,072)
(1,891)
-
-
73,976
-
56,043
44,587
120,550
-
-
73,023
523,951
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
1,348
-
-
1,348
390,348
-
-
-
-
-
-
188,524
-
-
-
-
-
-
-
-
-
-
-
-
578,872
4,495
13,987
18,482
598,702		 At 31 Dec
2021
£
5,002
-
5,000
423,463
-
27,685
-
-
55,324
33,325
66,720
616,519
1,948,294
-
10,514
7,378
5,719
-
40,000
-
-
-
190,264
2,000,000
50,000
86,161
10,000
20,000
40,000
258,289
966,432
200,000
5,833,051
40,426
130,915
171,341
6,620,911

30

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

19 Movement in funds (continued)

Restricted funds

Missionary - Monies donated for mission workers "ministry / work".

Property - established for the purchase and refurbishment of offices at 124 Wells Road, Bath. Now the property has been purchased the restriction is released on the original gifts and the funds have been transferred to unrestricted designated funds.

Personal needs - monies donated for mission worker's "personal needs".

Beneficiary Holding - monies await distribution instructions from named beneficiary.

Suspense - monies awaiting donor's disbursement instructions. The negative income and the transfers out are reallocations of these funds to other restricted funds or unrestricted funds once the donors intentions are known. The fund is being reclassified to a designated fund at the year-end for administration from there in future years.

Missionaries' Children's fund - the aim of this fund is to support the children of mission workers commended from UK assemblies to help with the educational expenses incurred, until further education, while their parents are serving on the mission field. The transfer out of this restricted fund is due to the costs being expended out of general funds.

First serve - restricted funds 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 Fund - the provision of gifts to missionaries on furlough in the UK.

Ruth Hadley Memorial fund - funds received in memory of late Ruth Hadley who served as a missionary in Angola. Funds are distributed for suitable mission work in Angola.

Unrestricted and designated funds

General - Funds available to the Trustees to administer the ongoing objectives of the Charity.

Echoes of Service legacy charity fund - Monies relating to and held in the predecessor charity, created in 2018 when Interlink and Echoes of Service merged, forming Echoes International.

Interlink legacy charity fund - Monies relating to and held in the predecessor charity, created in 2018 when Interlink and Echoes of Service merged, forming Echoes International.

First Serve - funds designated for the First Serve gap year programme.

Suspense - funds designated, awaiting donors instructions.

Investment property - Properties bequeathed under terms of donor’s will but subject to “reversionary interest”.

Publishing department - Monies designated by the Trustees as a “reserve” used for the publishing of books/fact files and production of the Daily Prayer Guide and Echoes magazine.

Unrealised gains / revaluations - Details the cumulative unrealised gains/losses of the investment portfolio. This was transferred to general funds in the year.

A H Boulton Trust - The Fund having been set up for the benefit of Echoes of Services – see also endowment fund element below. This was transferred to general funds in the year.

Mrs H Maclean Trust - The Trust having been set up for the benefit of Echoes of Services – see also endowment fund element below. This was transferred to general funds in the year.

31

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

19 Movement in funds (continued)

Unrestricted and designated funds

Missionary work - Monies received for general disbursement for “The Lord’s Work Overseas”.

Legacy equalisation - Monies designated by the Trustees to act as a “reserve” to supplement giving under the above category, missionary work unrestricted, should that important category of gift income decline.

Medical - Monies to purchase medical supplies and equipment in hospitals and clinics.

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.

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.

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.

Poverty and relief - Monies designated by the Trustees to provide financial help in situations of property relief and hardship.

Strategic initiatives - Monies set aside for the strategic funding of mission projects globally, 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 maintenance - Monies designated by the Trustees for the upkeep of the office property and capital expenditure on equipment.

MW transition fund - Monies received from third parties to augment the amounts held by insurers, on behalf of mission workers, to await their return from overseas.

Endowment funds

A H Boulton Trust - The Fund having been set up for the benefit of Echoes of Services – the endowment fund element below is a permanent endowment.

Mrs H Maclean Trust - The Trust having been set up for the benefit of Echoes of Services – the endowment fund is an expendable endowment.

32

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

19 Movement in funds (continued)

For the year ended 31 December 2020

At 1 Jan
2020
£
Restricted Funds
Missionary
3,860
Property
524,266
Personal needs
2,452
Beneficiary holding
470,390
Suspense
15,658
Missionaries' Children's Fund
84,713
First Serve
2,707
Relief
117,475
Ramsden fund
55,245
Missionary Furlough fund
34,695
1,311,461
Unrestricted Funds
General funds (merger of funds)
2,225,123
Echoes of Service - legacy charity fund
1,743
Interlink - legacy charity fund
10,661
Investment property
41,000
Publishing department
4,691
Realised gains
147,057
Unrealised revaluation gains/(losses)
385,222
A H Boulton fund
2,020
Mrs H Maclean Trust
1,325
Missionary work
496,115
MW transition fund
53,000
Legacy equalisation
2,000,000
Medical
50,000
Special projects
90,561
Ministry support
10,000
Training
20,000
National worker
40,000
Poverty and relief fund
250,000
Strategic initiative fund
1,120,000
Equipment and maintenance
200,000
7,148,518
Endowment Funds
Mrs H Maclean Trust
34,161
A H Boulton Fund
111,168
145,329
Total funds
8,605,308		 Income
£
1,611,511
-
1,502,084
41,785
43,978
13,109
12,257
-
1,160
130
3,226,014
226,135
172,136
5,100
-
57,385
-
-
2,275
699
1,495,064
-
-
1,780
-
30
-
150
65,668
-
-
2,026,422
-
-
-
5,252,436		 Expenditure
£
(1,611,509)
(15,922)
(1,503,214)
(102,811)
-
(38,798)
(22,842)
(112,039)
(1,500)
-
(3,408,635)
(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)
-
-
-
(6,279,218)		 Transfers
£
-
15,965
-
13,624
-
(1,250)
15,000
-
(3,908)
-
39,431
(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)
£
-
-
-
-
-
-
-
-
1,992
-
1,992
-
-
-
-
-
(89,597)
126,432
-
-
-
-
-
-
-
-
-
-
-
-
-
36,835
1,770
5,760
7,530
46,357		 At 31 Dec
2020
£
3,862
524,309
1,322
422,988
59,636
57,774
7,122
5,436
52,989
34,825
1,170,263
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
35,931
116,928
152,859
7,624,883

33

ECHOES INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

20 Analysis of net assets between funds

As at 31 December 2021
Tangible fixed assets
Investments
Other net assets
As at 31 December 2020
Tangible fixed assets
Investments
Investment property
Other net assets		 Restricted
Funds
£
524,309
1,038,271
-
(392,317)
1,170,263		 Restricted
Unrestricted
Endowment
Total
Funds
Funds
Funds
£
£
£
£
-
654,775
-
654,775
629,616
5,054,186
171,341
5,855,143
(13,097)
124,090
-
110,993
616,519
5,833,051
171,341
6,620,911
Unrestricted Unrestricted
Designated
General
Endowment
Total
Funds
Funds
Funds
£
£
£
£
128,218
-
-
652,527
5,326,511
547,534
152,859
7,065,175
41,000
-
-
41,000
-
258,498
-
(133,819)
5,495,729
806,032
152,859
7,624,883

21 Related party transactions

There are no transactions with trustees or other related parties other than those disclosed as required by the SORP elsewhere in the financial statements.

34