27 .27 ANNUAL REPORT 2024 Free Church Federal Council (Incorporated) Email.. fc freechurches.or .uk 27 Tavistock Square, London, WC1H 9HH Tel: 0203 6518338 Website: hlt s:l/www.freechurches.or .ukl
CONTENTS PAGE Company Information Directors, Report Member Denominations 13 Report of the Independent Examiner 14 Statemenl of Financial Activilies (Including Income and Expenditure Account) 15 Balance Sheet 16 Noles to Ihe Financial Statements 17
COMPANY INFORMATION Company number 00364987 Charity number 236878 Directors l Trustees (as al dale of report) Revd Helen Cameron (Moderator until 13 April 2025) Revd Dr Tessa Henry-Robinson (Moderator from 13 April 2025, appointed 01 June 2024) Revd James Breslin (Chairman of the Board) Mr Eric Soulhwick (Treasurer) Mrs Yvonne Campbell Revd Deseta Davis Lieutenant Colonel Jonathan Roberts (Resigned 30 April 2024) Revd Trevor Howard Revd Dr Hugh Osgood (Resigned 31 March 2024) Revd Daniel Yarnell (vi-ChaIrman of the Board) Revd Paul Rochester General Secretary Registered Offi 27 Tavislock Square, London, WC1 H 9HH. Bankers CAF Bank Limited 25 Kings Hill Avenue, Kings Hill, Wesl M811ing. Kent, ME19 4JQ. Solicitors Ashtons Legal Waterfront House. Wherry Quay. Ipswich. Suffolk, IP4 1AS. Independent Examiner Mark Heaton FCCA DChA FCIE 1st Floor, Block C. The Wharf, Manchester Road. Burnley, Lancashire, BB111JG. Fund Managers CCLA Investment Management Ltd COIF Charity Funds 85 Queen Victoria Street. London. EC4V 4ET.
DIRECTORS, REPORT The Trustees present their annual report with the accounts for the year ended 31 December 2024. The accounts comply wilh the requiremenls of the Companies Act 2006. the Charities Act 2011. the Memorandum and Articles ofAssociation, Financial Reporting Standard 102 and follow the recommendations in Accounling and Reporting by Charities- Slatement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). PROMOTING WITNESS IN THE PUBLIC SQUARE Chaplalncy: A Core Focus Chaplaincy remained the primary area of work for the Free Churches Group (FCG}. Two large denominations, the Redeemed Christian Church of God and Vineyard UK and Ireland, joined Ihe FCG, bringing additional value to its mission. Both denominations are eager to contribute to chaplaincy work, aligning well with the FCG'S core focus. The FCG continued lo implement its 2023-2026 Strategy. which prioritises the following aims: 1. Support Free Church Chaplains in core sectors. 2. Advocate forjust1 and equality through a Free Church voice in the public square. 3. Expand engagemenl wilh Free Church denominations and local churches. 4. Engage confidently in the ecumenical efforts to support the full range of its membership. To optimise opportunities, the FCG remained commilled lo enabling ordainedlaccredited ministers and laypeople from Free Churches, lo access available posts in the core chaplaincy sectors. The development of the Chaplaincy Hub has proven beneficial for chaplains, churches and other stakeholders. The ongoing Chaplaincy Podcasts are increasing understanding of the role and value chaplaincy. Armed Forces Chaplalncy The FCG completed the work with the Ministry of Defence and is now a member of the United Board. There was limited promotion of Armed Forces chaplaincy across Ihose denominations who registered under the expanded arrangements with the Ministry of Defence. In 2025, the FCG will seek lo work closely with Ihose Free Church denominationslgroups who have served in military chaplaincy for many years, to strengthen this area of work. The Armed Forces continue to face vacancies and are actively seeking suilable candidates. As a member of the United Board, the FCG now has the opportunity to encourage its members to identify and support ministers called to this minislry. Eight Group members have already registered, with more expected to join. The FCG will launch a campaign in 2025 to promote Armed Forces chaplaincy, aiming to engage a new generation of chaplains. other buslness The FCG supported the work of the Council of Christian and Jews (CCJ), with the Moderator serving as CCJ President and the General Secielary supporting various events. This work was particularly significant amid the conflict in Gaza. CCJ seeks to foster meaningful engagement between communilies, challenging prejudice and promoling underslanding. Many of the Free Church denominations also advocated for urgenl action to address the humanitarian crisis in Gaza. The UK elected a new Government in 2024. The FCG collaborated with other groups to ensure thal the Free Church voice was heard in response to new government policies, particularly in its core sectors of business. The FCG membership of the Churches, Legislation Advisory Service has been helpful in supporting this work.
Olher business (continued) The FCG has also conlinued its involvement in the Churches Ministerial Counselling Service, which offers crucial support for ministers and their families. New initiatives include supporting Free Church denominationslgroups that have congregations worshipping in listed historic buildings. who currently do not engage with Historic England. As the larger Free Church denominations, who are part of the Places of Worship Forum, reorganise and sell buildings, more denominations may be affected. The FCG seeks to ensure that Ihose eligible for the Government Grant Scheme re1ve information and guidance, and listed buildings of special architectural or historic interest are mainlained and their historic nature understood and celebrated. Additionally, we are planning a seminar. in collaboration with Eurodiaconia. to explore Artificial Intelligence (Al) and ethics, within the context of denominations and local congregations. The provisional date for this workshop is set and it is hoped it will lead to ongoing conversation across the Free Churches as the technology evolves. Free Churches need to consider the implications of Al on minislry, social action and broader church activities. Education During 2024, Ihe work continued to be shaped by the Free Church Education Committee (FCEC), with representalives from a range of Free Church denominalions. The committee welcomed two new members with experien in Further Education management and school chaplaincy, respectively. The Free Church Education Committee developed a new strategy. identifying its key impact areas, as follows.. 1. Resourcing and facilitating members of the Free Churches Group to engage with and support education in schools. colleges and universities, both locally and nationally 2. Campaigning and advocating for Free Church values in education 3. Acting to secure change in education policy and practi in specific areas, informed by our Free Church values. 4. Building partnerships wilh individual denominationslgroups and organisations 5. Developing a fit-for-purpose. skilled and sustainable committee and working groups. Alongside the strategy. the group has written a workplan, prioiitising areas of work that help the FCG to achieve maximum impact in each of the areas. In the course of the year. the FCEC responded to the call for evidence launched by the independeni panel of the Curriculum and Assessment Review. which will make recommendations about the future shape of the National Curriculum. The FCEC published a series of resources to help members of Free Churches to think through the education issues that mighl be discussed in the campaigns surrounding the General Election. These resources explored issues connected with schools, furlher and higher education and were made available on the FCG website. The FCG continues to support the work of Slanding Advisory Councils on Religious Education, by nominating Free Church members to seNe on these groups. SACRE members are also welcome to seek advice from the FCEC or the Education Officer. The Higher Education Working Group continued to provide specialist input and work on specific projects connecled with HE. Following its earlier work on Freedom of Speech in Higher Education, the committee began a project aimed at resourcing HE chaplains to work within the freedom of speech policy environment in their universities, in partnership with academics from Soulhlands College at Roehampton University, and the University of Coventry. The focal point of this work was a day in November, where a group of around 20 chaplains from a range of universities met to explore the issues around freedom of speech. to
Educallon (continued) share experiences and to idenlify ways in which FCG could support chaplains to navigate this lerritory. Over the next year, the team will develop reSoUrS and explore the possibility of holding regional events for chaplains. In addilion to the work supporting Free Church chaplains. the Education Officer has worked with the Churches Higher Education Liaison Group. Ihe ecumenical body for HE chaplains. She is a member of the CHELG committee and helped organise the annual conference. The Education Officer has supported other member churches and groups. This includes contributing to an ecumenical resource to help churches organise visits from school groups, and membership of Ihe Melhodist Flourish Schools team, which aims to help churches build relationships with their local schools. She also co-ordinated Ihe developmenl of resources for the annual celebration of Education Sunday. The Education Officer has continued to attend the termly meetings of the Department for Education's Failh Providers, Group, ensuring that the Free Churches have a voice in Ihis forum. The FCEC continues as a member of the Religious Education Council, and the Education Officer was re-elected as its Chair at the AGM in 2024. serving for a further 3 years from September, 2024. Culham St Gabriel's continues to provide funding to release her from her FCG work for half a day a week in order to allow her to carry out duties for the REC. Prison chaplaincy There were many changes in both the overall Prison Service and in the specific area of Prison Chaplaincy in 2024. The FCG has been delighted this year to share responsibility for the Failh and Belief advice for Free Churches chaplaincy with HM Prison and Probation Service {HMPPS). The FCG look foNard to developing this partnership as Ihe roles of HMPPS Faith and Belief Advisor, and Free Churches Secrelary for Prison Chaplaincy become more eslablished in the Faith Endorsemenl, and the support and training of prison chaplains from the Free Churches. It has been encouraging to welcome a new Justice Secretary and Prisons Minister into governmenl, both of whom have pointed to reducing prison numbers through encouraging desistance from crime through evidence based rehabilitation. The FCG Secretary for Prison Chaplaincy continues to respond professionally to the needs of Free Church prison chaplains working across England and Wales, as the demands of serving prisoners and prison staff have escalated. Increases in the prisoner population, high staff turnover and increasingly complex issues fad by chaplains mean that the daily work of a prison chaplain is ever-more valuable and valued, as they meet Ihe needs of those who live and work in prison. The three priority areas of focus this year have been.. training, recruitment and the faith endorsement of chaplains. In doing this we have ensured that prisons, and in particular prison chaplains. are supported and prepared for the changes that will continue throughout 2025. The FCG continues to support chaplains in the development of priorities and in helping Ihose working in these complex environmenls to do so professionally. Chaplains have often seen their role becoming focused on filling gaps where Servi provision has been struggling to cope, for example, in the areas of resettlemenl and care of those who are self-harming. As always, chaplains have adapted well to these challenges, coping with the significant impact on themselves, and effectively taking on the role of wounded healers. The Free Churches Secretary for Prison Chaplaincy continued to support HMPPS Chaplaincy HQ with in-service training for new Managing Chaplains, offering faith specific support in terms of Faith Awareness Training. In 2024. he hosted a National Training evenl for Free Church prison chaplains, volunteer and paid. focussing on the need lo live and serve with gentleness
Prison chaplaincy (contlnued) and respect. Alongside Regents Theological College, he delivered Masters Level training io enable chaplains to best engage with the institutions they serve. This training and development have been apprecialed and feedback has been particularly encouraging. Chaplains from the Free Churches in England and Wales are still particularly effective at supporting one another, recognising the need to engage effectively through the gate in order to reduce Ihe cycle of re- offending. Heallhcare Chaplalncy In 2024, with well documented pressures on health and social care provision. the support that the FCG provides to chaplains remained as imporlant as ever. Reflective practice is recognised as one of the four domains of healthcare chaplaincy competence within the UK Board of Healthcare Chaplaincy (UKBHC) documentation. Through reflecting on practice chaplains not only develop and inform their professional practice but are also able to process the empathetic effect of care. Recognising its role in both offering safe space to explore the emotional effects as well as developing high quality, safe. effective pastoral, spirilual and religious care. the FCG played a leading role in the development of monthly 'Pop-Up Refleclive Practice, sessions that are offered across the profession. Alongside reflective practice, through 2024 Ihe year the FCG continued to offer a range of CPD opportunities for chaplains. The three NounshingRoolssessions held across the year provided space for chaplains lo reflect and deepen their spiritual motivation and resourcing for the roles they carry out. Chaplaincy is sometimes described in terms of liminality and marginality. The 2024 Study day made creative use of art, story and research to explore Ihe joys, frustrations, opportunities and challenges that being 'on the edge, can bring. Further opportunities for study and learning were provided through the monthly Research First online journal club sessions that the FCG is the driving for behind. The Secretary for Healthcare Chaplaincy mainlained the provision of supervision, mentoring, and pastoral support lo a number of individual chaplains Ihrough the year. Successful support in relation to selection processes, in particular interview practice, was provided to those looking to move into the profession as well as those applying for leadership roles. The FCG continues to contribute to healthcare chaplaincy at a national level. Alongside other faith and belief groups, in early 2024 we wrote to Sue Ryder to express our concern at their decision to no longer provide specialist chaplaincy care as part of the services your hospices provide. FCG chaplains. including members of the Healthcare Chaplaincy Steering Committee (HCSC), serve in key roles within the College of Health Care Chaplains, the UKBHC and the Networkfor Pastoral, Spiritual and Religious Care in Health (the Network). Strengthen ourvoice and contribution nationally, Ihe FCG was delighted that through 2024 HCSC members Janelle Kingham and Sarah Crane were elected as vice chair of the Network and chair of the UKBHC respectively. While not its primary function. their appointments underline the value of the committee as a nurluring ground for chaplains interested in developing a national leadership profile. Through 2024 the FCG maintained its support of the development of Clinical Pastoral Education (CPE) as a training route for heallhcare chaplaincy. The Secretary for Healthcare Chaplaincy successfully applied for a temporary post at Sheffield Teaching Hospital and was released for one day a week for the second half of the year lo be their Professional Lead for CPE accelerating ihe work of developing an Association for Ihe Advancemenl of CPE within the UK. The Secretaryfor Healthcare Chaplaincy was a co-author on a published peer reviewed paper presenting the findings of research cairied out in relation to the first pilot unit of CPE run in 2023.
Heallhcare Chaplaincy (conlinued) Individually, throughout 2024, FCG chaplains have contributed lo the development of the profession, presented on a variety of topics or led workshops al a broad range of conferences and educational programmes. These have included sessions at the College of Health Care Chaplains Annual Conference, courses wn by the Nelwork and Regents Theological College as well as presentations at the European Network of Healthcare Chaplains Consullation in Prague. Looklng Ahead "Deve/oping Chaplaincy Ministry which is a core competen of the Free Churches" The Revd Dr. Tessa Henry-Robinson assumed the role of the FCG Moderator on April 13th 2025. in an induction service in London. The FCG extends its gratitude to Revd Helen Cameron for her dedicated seNice duiing a historic period. which included representing the Free Churches at national ceremonies marking His Majesty King Charles111 accession lo Ihe throne. Helen Cameron was fully engaged forthe first quarter of2025 as she has several engagements and commitments to meet. including representing the Free Churches at the Churches Together Forum along with the other CTE Presidents. In 2025, the FCG will focus on building on ourchaplaincy work across the core seclors: Prisons, Healthcare, Education and Ihe Aimed Forces. The Chaplaincy Hub will continue to be a vital resource for current and aspiring chaplains. The FCG will engage with government and other organisations lo advocate on issues relaled to its core area of work and wider issues such as justice, equality, and support for the poor and marginalised. We will encourage FCG Group members to contribute their knowledge and gifts to support the wider group in fostering Christian unity and oneness. structure, Governance and Management The Free Church Federal Council (Incorporated) is a company limited by guarantee (company number 00364987) and a registered charity (charity number 236878)- The governing instrument of the charitable company is the Memorandum and Articles of Association. The charity is the incorporated body of, and uses the working name of, the Free Churches, an unincorporated association. whose members are representatives of its constituent denominalions who subscribe to the Doctrinal Statement of the Free Churches. The members of the company are representalives of Ihe constituent denominations who are members of the Free Churches Group, together with the officers of the Free Churches. They meet as "The Group Meeting" lo identify the particular beliefs and values which are held in common and agree the company's objectives. The directors {who are also trusteesforthe purposes of charity law) are elected by the company members, seeking the necessary financial and legal skills for the task from within the constiluent denominations. They are responsible for financial policy.
Slruclure, Governance and Management (continued) The directors I trustees who served during the year were= Revd James Breslin {Chairman of the Board) Revd Helen Cameron (Moderator until 13 April 2025) Revd Dr Tessa Henry-Robinson Moderalor from 13 April 2025, appointed 01 June 2024) Mrs Yvonne Campbell Revd Deseta Davis Lieutenant Colonel Jonathan Roberts (Resigned 30 April 2024) Revd Trevor Howard Revd Dr Hugh Osgood (Resigned 31 March 2024) Mr Eric Soulhwick (Treasurer) Revd Daniel Yarnell (VI-chairMan of the Board) Directors meetings are chaired by the Chairman of the Board. Those new to the work of the company meet with the General Secretary to receive an orienlation on the work of the Free Churches. The day-to-day work of the company was delegated to Ihe General Secretary, Revd Paul Rochester, who reported directly to the Board of Directors. The officers responsible for the healthcare and prison chaplaincy. and education programmes of the Free Churches are supported by specialisl committees to shape Ihese areas of work. Objectives and Activities The principal object of The Free Church Federal Council (incorporated) (FCFC) is °the advancement of the Christian religion.. The furtherance of Ihe objects takes place through the work of the Free Churches by means such as evangelislic, educational, training and business activities or other meetings as deemed neSSary from time to time. Free Churches promotes faithful witness in the public square with a focus, bul not solely. on chaplaincy work in Prisons and Healthcare and faith in Education. Free Churches express the unity in Christ Ihat is shared by Free Churches in England and Wales by promoting fellowship. shared counsel and working togelher to extend Christ's kingdom in every sphere of society. This is done whilsl recognising that each Group Member remains at liberty to fulfil ils own distinctive witness and mission. There are currently 26 denominations and Church groups that are members of Free Churches. Public Benefit The Free Churches purpose is in the support of its member church denominations in their mission across England and Wales. In as much as this mission is founded in and seeks to express the unconditional love of God, the benefits of all that the Free Churches seeks to do are understood to be 'public' and for the benefil of the wider society. Member churches and their congregations express this through public worship and in service to the communities in which they are set. The Free Churches upholds a right to the freedom of expression of religious faith. This has come out of a particular historical context but finds expression afresh in the current time and is understood to have application wider than the Free Churches own membership. The Free Churches particular engagement with education, heallh care, prisons and the legislalive governan of the nation. amongst other Ihinos, is evidential of a commitmenl to wider society and a concern for public wellbeing.
10 Public Benefil (continued) Particular examples include= Engagement in the training of hospilal chaplains and Iheir on-going professional development contributes to the quality of a service offered to all patients and hospital staff and to ensure patienl Irust and safety. The support of SACRE represeniatives in local authorities serves to ensure the appropriate balance in religious education curricula. The developed Faith Endorsement criteria of Prison Chaplains ensures that both Public and Private Sector prisons are well served by a diverse range of professional ministers to work as Chaplains in prisons. Financlal Review Income derives mainly from inveslment returns on both lisled investments and properly. This is supplemented by subscriptions from member churches and other activities. In addition, specific grants have been received, for restricted purposes. lo supporl Ihe work in Healthcare and Prisons. Income remained comparable to previous years apart from grant income which has increased. Grants are made al the directors, discretion. Tolal expenditure has been in line with that incurred in the previous year. This has resulted in a nel deficit of £99,230 {2023'. £77,010) in the general fund which, together wilh a gain of £38,354 (2023.. £118,747) on investments, has been Iransferred from reserves. Rlsk Review The directors undertake each year a wide-ranging appraisal in order to identify the major risks to which Ihe charity is exposed. Steps are taken with a view to mitigating these risks as far as is reasonably possible. The directors are aware that the continued financial stability of the chariiy relies on the continued performance and gr0h of the charily's investments. They believe their regular review of quoted investments. aided by infomiation from the fund managers. largely mitigates this risk as far as possible. Investment Powers and Policy The investment powers of the charity are contained in the Articles of Association and include the poweilo appoint investment managers. The directors may invest anyfunds not immediately required by the charily into such securilies, property and other investments as they consider greatest overall benefit to the charity, in line with the charity's objectives. The directors, currenl policy is to invest in gilt edged securities or investment units with managers of common investment funds.. Epworth Inveslment Management Limited and freehold commercial properties. Surplus funds held for the shorter term are placed in CCLA Investment Managemenl Limited's COIF Charity Fund Deposit Account, which has consistently provided a rate of return higher than that available from a bank. Reserves Policy It is the policy of the directors to ensure Ihat the charity has adequate reseNes to enable it to meel both ils ongoing commitments in respect of general charitable activities and its future funding requirements. The directors have assessed this wilh the aim of achieving reserves equivalent to three to six month's on-going expenses plus any known existing and future liabilities. This would require general resetves of between £75,000 and £150,000. General reserves as al 31 December 2024 stood at £124,366 (2023.. £173,596) including tangible fixed assets of £55,202 (2023: £63,090). The charitable activities are largely financed from the yield on invested reseNes. It is the long- term policy of the board to maintain the real value of invested reserves and apply their annual yield (interest, dividends. rents and a proportion of any growth in value) lo funding the work of
Reserves Policy (continued) the Free Churches. The directors consider Ihe level of reserves at Ihe year-end to be suff icient for the current requirements of Ihe charity but will continue to review the overall position and policy al regular intervals. Independent Examiner Mark Heaton FCCA DChA FCIE of KM, Chartered Accountants. has been appointed as Ihe charitable company's Independent Examiner. A resolution proposing the reappointment of Mark Heaton will be put to the Annual General Meeting. stalement of Dlrectors, Responsibilitles The directors, who also act as trustees, are responsible for preparing the Directors, Report and Ihe financial statements in accordance with applicable law and regulations. Company law requires the directors (who are also trustees for the purposes of charity law) to prepare financial slatements for each financial year. Under that law Ihe direclors have elected to prepare the financial statements in accordance with Uniled Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law Ihe directors must not approve the financial statements unless they are satisfied that they give a Irue and fair view of Ihe state of affairs of the company and of the incoming resources and application of reSoUrs, including income and expenditure, of the company for that period. In preparing those financial statements. the directors are required to= select suitable accounting policies and then apply them consistently., make judgements and estimates that are reasonable and prudent., obseNe the methods and principles in the Charities SORP- stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on Ihe going conrn basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient lo show and explain the company's transaclions and disclose with reasonable accuracy at any time the financial position of the chaiilable company and enable them to ensure that the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approval This report has been prepared in accordance with the special provisions of Part 15 of Ihe Companies Act 2006 relaling to small companies. By order of the Board General seCtary.. Revd Paul Rochesler Chair of the Board: Revd James Breslin Date: 181h June 2025
12 MEMBER DENOMINATIONS Assemblies of God Baptist Union of Great Britain Bapiist Union of Wales Christ Apostolic Church Church of God of Prophecy Church of the Nazarene Churches in Communities International Congregational Federalion Council of African and Caribbean Churches UK Countess of Huntingdon's Connexion Elim Pentecostal Church Fellowship of Churches of Christ Free Church of England Free Methodist Church Independent Methodist Churches Joint Council of Churches for All Nalions Methodist Church Moravian Church New Teslament Assembly New Testament Church of God Old Baptist Union Order of St Leonard Presbyterian Church of Wales Redeemed Christian Church of God The Salvation Army Undeb yr Annibynwyr Cymraeg (Union of Welsh Independents) United Reformed Church Vineyard UK and Ireland Wesleyan Reform Union
13 INDEPENDENT EXAMINER'S REPORT I report to the charity trustees on my examinalion of the accounts of the company for the year ended 31sl December 2024 which are set out on pages 14 to 22. Responsibilities and basis of report As the charily trustees of the company (and also its directors for the purposes of company law> you are responsible for the preparation of the accounts in accordance with the requiremenls of the Companies Act 2006 ('the 2006 Acl,). Having salisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 {'the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent examiner's stalement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act., or the accounls do not accord with those records" or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requiremenl that Ihe accounts give a'true and fairview, which is nol a matter considered as part of an independent examination. or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounling and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounls to be reached. Mark Heaton FCCA FCIE DChA KM Chartered Accountants 1st Floor, Block C. The Wharf. Manchester Road, Burnley Lancashire BB11 1JG Date: 18th June 2025
14 STATEMENT OF FINANCIAL ACTIVITIES (including income and expendllure account) For the year ended 3151 December 2024 Unrestricted Restricted Notes Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Income and endowments from: Donations and legacies: Member church subscriptions Charitable activities: Grants Other trading activities: Sales Renlal income Investments: UK listed investments Rental properties Other Other Conference Fees Other 25.405 25.405 23,062 21,938 21.938 19.250 6.268 74,072 6.268 74.072 70,553 46,038 92,560 957 46,038 92.560 957 47,059 92,500 1,180 777 16,716 1.074 1,851 16,716 575 4,190 285,805 258,369 Total 262,793 23,012 Expenditure on: Investment management costs: Property management costs Charitable activities Grants payable Other 10,676 10.676 3,777 1.800 349.547 1.800 1,294 372,559 330,308 23,012 Total 362,023 23,012 385,035 335,379 Net income l (expenditure) Gains l (losses) on investment assets Net income l (expenditure) Net Movement in Funds (99,230) 38.354 99,230 77,010 38.354 118.747 41.737 (60.876) (60,876) (60,876) 60,876) 41,737 Reconciliation of funds Total funds broughl forward Total funds carried forward 2,817.897 2,817,897 2,776,160 2.757,021 2,817,897 2,757,021 Company Number: 00364987
15 BALANCE SHEET As at 31 $1 December 2024 Notes 2024 2023 Fixed Assets Tangible assets Investments 55.202 2.632.655 63,090 2,644,301 2,687.857 2.707.391 Current Assets Debtors Cash at bank and in hand 90,215 8,013 98.228 109,458 51,956 161,414 Current Liabilities Amounts falling due within one year 29.064 50,908 Net Current Assets 69,164 110,506 Net Assets 2,757.021 2,817,897 Funds Unreslricted: General unrestrÉcted funds Restricted funds 10 10 2,757.021 2.817,897 Total Funds 2.757.021 2.817,897 For the year ending 31st December 2024 the company was entitled to exempiion from audit under section 476 and section 477 of the Companies Act 2006 relating to small companies. The members have not required Ihe charilable company to obtain an audit of its financial statemenls for Ihe year ended 31 December 2023 in accordance with Section 476 of the Companies Acl 2006. Directors, responsibilities.. The members have not required the company to obtain an audil of its accounts for the year in question in accordance with seclion 476., The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparalion of accounts. These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. On behalf of the Board of Directors: Revd Dr Tessa Moderator nry-Robinson 181h June 2025
16 NOTES TO THE FINANCIAL STATEMENTS For Ihe year ended 3151 December 2024 1. Accounting Policies Basis of preparation The financial statemenls have been prepared in accordance with Accounting and Reporting by Charities.. Stalement 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) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Donations and incoming grants Donations and grants are accounted for when received or receivable where entillemenl is demonstrable. Investment income Incoming resources from investments are accounted for when re1Vable. Grants payable Grants are made on behalf of the Department of Health to members of the Healthcare Chaplaincy Faith and Belief Group. Grants are also paid to support various work carried oul by organisalions on behalf of the churches on an ecumenical basis nalionally. Grants are accounted for when paid or when there is an obligation lo pay. Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannol be fully recovered and is reported as part of the expenditure to which it relales. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities for its beneficiaries. It includes both costs thal can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associaled wilh meeting the constitutional and stalutory requirements of the charity and include Ihe Independent Examiner's fees and costs relevant lo strategic management. Tangible fixed assets and depCiatIon Depreciation is provided at rates calculated lo wrile off the cost less the estimated residual value of each tarlgible fixed assel over its expected useful life as follows: Leasehold property improvements slraight line over the period to 31 Dernber 2031 Furniture and equipment 10 % 120.kn 133Vo Straight line Investment properties Investment properties are staled at market value. Realised and unrealised gains are included in Ihe Statement of Financial Activities. No depreciation is provided on investment properlies. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. The direclors consider thal to depreciate the properties would not give a true and fair view. Depreciation is only one of the many factors reflected in the valuation and the amounl which might olhetwise have been shown. The investment properties
17 1. Accounting Policies (continued) are maintained lo a high standard and as such their residual value is expected to be not less than their cost and therefore the depreciation is immaterial to the accounts. Impairment reviews are carried out on an annual basis by ihe Board. The direclors consider that this accounting trealment results in the financial statements giving a true and fair view. Listed Investments Listed investments are shown at market value. Realised and unrealised gains are disclosed in the Statement of Financial Activities. Funds Unrestricted funds are incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general fund. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of costs. 2. Income and endowments from Charitable Activities: Grants 2024 2023 Restricted Funds Miscellaneous- Heamh Care Chaplaincy Methodist Church- Prison Chaplaincy Culham ST Gabriels's - Education Project Westhill Endowment- Education Project Total 5.313 10.000 4.000 2,625 21,938 5,250 10,000 4,000 19,250 3. Expenditure on- Charitable Activities Unrestricted Restricted Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Grants payable: Ministerial counselling setvi Direct expenditure: General Health Care Chaplaincy (HCC) Education officers Prison Chaplaincy 1.300 1,300 1,294 239.445 28.842 58,909 22,351 349,547 350.847 239.445 181,039 34.640 37,498 65,534 63.513 32,940 48,258 372,559 330,308 373.859 331,602 5.798 6,625 10,589 23,012 23,012 Total
18 4. Directors, Emoluments and Staff Costs Total compensation paid to key management personnel in the year amounled to £50,746 (2023.. £46,045). Staff cosls during the yearwere: 2024 2023 Wages and salaries Social security costs Pension contributions Total 191,685 202,634 13,883 14,535 17,674 18.915 223,242 236,084 No employees received remuneration greater than £60.000. The average number of employees during the year was.. 2024 2023 Number Number Direct charitable acliwties Managemenl and administration Total Directors, emoluments. including pension benefits, amounted to £nil (2023.. £nil). Expenses reimbursed lo six (2023= five) directors for travel, subsistence and conference expenses were £3,485 {2023'. £4,311). 5. Net Income l (Expenditure) Net incoming resources is slated afler charging- 2024 2023 Independent Examinerfs Fee Depreciation 2,220 7.888 2,160 7,888 6. Tangible Fixed Assets Furniture Leasehold and Property Equipm't Improvem't Total Cost At 1 January 2024 At 31 December 2024 Depreciation At 1 January2024 Charge for the year At 31 December 2024 24.726 24,726 234,444 259,170 234,444 259,170 24,726 171,354 196,080 7,888 7,888 179,242 203,968 24,726 Net Book Value At 31 December 2024 55,202 63,090 55,202 63,090 At 31 December 2023 Leasehold property improvements were effected during preceding years to the London headquarters of the company which il occupies under the terms of a lease due to expire in 2032.
19 7. Investments UK Listed Investment Investments Properties General General Funds Funds Tot81 Market Value At 1 January2024 Increase on revaluation in year Redeemed in year Al 31 December 2024 1.494.301 1,150,000 2,644,301 38.354 38,354 (50,000) (50,000) 1,482,655 1150,000 2.632,655 Historic Cost At 1 January 2024 Redemption in year At 31 December 2024 1.249,254 (39.499) 1,209,755 667,881 1.917,135 (39,499) 667,881 1,877,636 The UK lisled investments portfolio is made up of UK fixed interest slocks and equilies, all quotedllisted within the UK. Investmenls which made up over 5 % of the value of the portfolio are as follows: 2024 2023 COIF ethical income units COIF propertyfund uniis 92.34 7.66 92.44 7.56 The investment properties were revalued at estimated open market value by the Directors in 2013, the directors do not believe that the markel value has changed significantly since then. 8. Debtors 2024 2023 Trade debtors Prepayments and accrued income Tolal 7,296 20,337 82,919 89,121 90,215 109.458 9. Current Liabilities: Amounts Falling Due Within One Year 2024 2023 Accruals Deferred rental income Other Creditors 2.500 10,625 15,939 29,064 2,500 10,625 37,783 50,908 Total
20 10. Funds Transfers 01-Jan-24 between funds Expend iture Income Gains I {Losses) 31-Dec-24 Unrestricted Funds: General reseNe I nveslmenl reserve I nvestmenl rewaluation reserve Property reserve Property revalualion Total unrestricted Restricted Funds Healthcare Chaplaincy Prison Chaplaincy Education Total restricted Total Funds 173.596 50.000 262,793 (362,023) 1,249,254 (39.499) 245.047 (10.501) 667,881 482.119 2,817,897 124,366 1,209,755 38,354 272,900 667,881 482,119 38,354 2,757,021 262,793 362,023 5,798 15,798) 10.589 {10,589) 6.625 (6,625) 23.012 23,012 285,805 385,035 2,817,897 38,354 2,757,021 Unrestricted funds are incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as a general fund. Investments and Property assets are represented as separate funds distinguishing between cost and revaluations as these funds are not available for day-to-day expenditure. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of cosls. During the year a grant from the Methodist Church was restricled to the costs of prison chaplaincy. 11. Analysis of Net Assets Between Funds Tangible Fixed Assets Net Investments Current Assets Total Unrestricted Funds General unrestricted funds Restricted Funds Total Funds 55,202 2,632,655 69,164 2,757,021 55,202 2,632,655 69,164 2,757,021 12. Comparative Statement of Financial Aclivities by fund type
21 Unrestricted Reslricted Funds Funds 2023 2023 Total Funds 2023 Income and endowments from: Donations and legacies: Member church subscriptions Cha ritable activities: Granls Other trading activities: Sales Rental income Investments: UK listed investments Rental properties Other Other Conference Fees Other 23.062 23,062 19,250 19.250 70.553 70,553 47,059 92,500 1,180 47,059 92,500 1,180 326 3,340 238,020 249 850 575 4,190 258,369 Total 20,349 Expenditure on: Investment management costs: Property management costs Charitable activities Grants payable Other 3,777 3,777 1,294 309.959 1,294 330,308 20.349 Total 315.030 20,349 335,379 Net income l (expenditure) Gains l (losses) on investment assets Net income l (expenditure) Net Movement in Funds (77.010) 118,747 77.010 118,747 41.737 41,737 41.737 41,737 13. Related Parties and Control The General Secrelary had day to day control of the charity. The trustees have overall control of the charity. Previously Eric Southwick Chartered Accountanl was apinted to provide the services of Finance Officer to the charily. Eric Southwick Chartered Accountant is controlled by E Soulhwick, a director I trustee of The Free Church Federal Council (Incorporated). Soulhwick declared his interest in Eric Southwick Chartered Accountant and was absent from discussions and took no part in the decision to appoint Eric Southwick Chartered Accountant. The remaining direclors were satisfied that il was in the best interests of The Free Church Federal Council (Incorporated) to appoint Eric Soulhwick Chartered Accountant and did so under the authority provided within the company's Articles of Associalion. The cost of these services in the year was £13.505.