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2021-12-31-accounts

The Church of Jesus Christ of Latter day Saints (Great Britain) (An unlimited company and registered charity)

Annual report and consolidated financial statements

for the year ended 31 December 2021

Company number: 00699764 Charity number: 242451 Charity number (OSCR): SC045978

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Index to Annual report and financial statements

Page
Report of the trustees 2
23
Independent auditor�s report 24
27
Consolidated statement of financial activities 28
Charity statement of financial activities 29
Consolidated balance sheet 30
Consolidated statement of cash flows 31
Notes to the financial statement 32
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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

The trustees are pleased to present their report together with the audited financial statements of The Church of Jesus Christ of Latter day Saints (Great Britain) (�Charity�) for the year ended 31 December 2021.

Legal and administrative details

Charity numbers: Charity Commission: 242451 OSCR: SC045978 00699764

Company number:

Principal office and registered office: 187 Penns Lane, Sutton Coldfield, B76 1JU

Auditors:

Kreston Reeves LLP Chartered Accountants and Statutory Auditor 37 St Margaret�s Street, Canterbury, CT1 2TU

Bankers:

HSBC

34 Poplar Road, Solihull, West Midlands, B91 3AF

Citibank

CitiGroup Centre, 33 Canada Square, London, E14 5LB

Zions Bank PO Box 30709, Salt Lake City, Utah 84130 0709, USA

Solicitors:

Devonshires 30 Finsbury Circus, London, EC2M 7DT

Daniel Clifford Law LLP 76 Caledonian Road, London, N1 9DN

Directors, trustees and senior management:

The directors of the Charity are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees serving during the year were as follows:

Brian Cordray Christian Ottiker J. Roberto Hernandez resigned 30[th] June 2022 Paul Hansen appointed 1[st] July 2022

None of the trustees have qualifying third party indemnity insurance.

Area Controller:

Europe North Area Controller

Richard Smith

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Structure, governance and management

Governing document

The Church of Jesus Christ of Latter day Saints (Great Britain) is an unlimited company and a registered charity. The Charity is governed by its Memorandum and Articles of Association which were last amended on 22 June 2015.

Appointment of trustees

As set out in the Articles of Association, new or additional directors (trustees) are to be appointed by the shareholder The Church of Jesus Christ of Latter day Saints (�CHC�), providing such persons are willing so to act, either to fill a vacancy or as an additional trustee.

The shareholder will also determine the rotation and time in which trustees are to retire. Currently no term is fixed. Trustees shall not be less than two or more than seven in number. The shareholder may, from time to time, vary the minimum or maximum number of directors (trustees).

Trustee induction and training

New trustees undergo orientation training to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the Charity. During the year updates are sent to the trustees on topical issues of which they need to be aware. Further briefings and training are provided at the Annual board meeting at the end of the year.

Trustees are updated and advised on legal issues by Daniel Clifford Law LLP solicitors.

Organisation

The parent organisation of the Charity, The Church of Jesus Christ of Latter day Saints (�Church�), is directed by the First Presidency supported by the Quorum of the Twelve Apostles and various quorums of the Seventy. Members of these quorums are called General or Area Authorities, three of whom are assigned to serve as an Area Presidency within each specific geographic area.

Throughout the world a number of Area Presidencies are assigned to administer the day to day affairs of the Church on behalf of the First Presidency. One of these Area Presidencies is based in Frankfurt, Germany and until 7[th] April 2022 had the responsibility for the administration and operation of the Church in Europe. From 7th April 2022 the United Kingdom became part of the newly created Europe North Area and from this date the Europe North Area Presidency has provided ecclesiastical direction and oversees the Church�s lay ministry in the area.

Ecclesiastical direction is given to the Charity via the shareholder and is reflected in the various department and budget requests which are reviewed by the trustees and their delegates annually prior to them being submitted to Church headquarters for approval.

The Charity also administers operations in France through an officially registered branch.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Structure, governance and management (continued)

Within this framework, the board of trustees administers the affairs of the Charity. The board meets at least once a year. In the fourth quarter of each year, the Finance department reports to the trustees on the prior year�s financial performance and achievements as outlined in annual reports submitted by department heads. Trustees participate in the setting of budgets for the following year, the monitoring of which is delegated to the Area Controller.

In addition, the trustees are made aware of progress and achievements throughout the year and other trustee meetings are held as necessary.

Employees

The Charity has the policy of ensuring that its employees are able to meet the necessary requirements of their position and are up to date on any developments required for their position. This is achieved in a variety of ways:

The Charity conducts its application and interview processes so that there will be an equal opportunity for employment consideration of all individuals with a disability who meet the skill, experience, education, and other requirements for the desired position. The Charity will make reasonable adjustments to allow qualified applicants with a disability to participate in the application process. A qualified individual with a disability will be given the opportunity to explain or demonstrate his or her ability to perform the essential functions of the desired position. Where any employees become incapacitated during their employment, they are entitled to receive long term disability benefits from the Charity.

On training and career development issues, there is no distinction made between disabled and non disabled employees. The same opportunities are available to all staff, irrespective of disability. The key emphasis is on the technical ability of each employee.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Structure, governance and management (continued)

Related parties

The Charity is owned solely by CHC, a company incorporated in the state of Utah, United States of America.

The Charity owns 100% of the £1 ordinary share capital of Oliver House Limited (�OHL�), (company number 09795165), a private company limited by shares. The principal activity of OHL is construction of real estate. The trustees deemed it proper to acquire said company for the furtherance of one of its statutory objectives, namely the provision of buildings and facilities for religious worship. The results of OHL have been presented as part of the consolidated financial statements and related disclosure notes.

Objectives and activities

Area Plan and Aims

The Area Presidency plan for 2021 consisted of the following priorities:

Local church leaders are guided to develop specific steps they will take to accomplish the area priorities and are encouraged to consider specific individuals who would benefit from their attention. Individuals and families are encouraged to set specific measurable goals to help them focus their efforts on the three priorities of the area plan in their personal lives.

Goals within these 3 priorities include seeking ministering opportunities, sharing online Church messages with family and friends, being fully engaged in the 'Come Follow Me' scripture study programme, extending great care to new and returning members and being continually mindful of the rising generation.

The Charity has the overall aim of assisting the Church to fulfil these priorities, which grow its membership, and to provide facilities for them. It also reaches out, works with, and provides services to the wider community. The Charity assists members of the Church and others in need of religious assistance or in conditions of need, hardship, sickness or distress.

The object of the Charity is:

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Objectives and activities (continued)

The Charity achieves its objective and supports the Europe Area Plan in the following ways:

Provision of facilities for religious worship

One of the primary objectives of the Charity is to provide temples and meetinghouses to enable religious worship to be undertaken by members of the Church and others. Worship services are held each Sunday in meetinghouses. The Charity has the responsibility for construction of new meetinghouses, additions to existing buildings and replacement and improvement of existing facility elements. Internal processes ensure that needs and costs are carefully assessed and prioritised. The Charity benefits from a Meetinghouse Facilities Department and also engages external contractors, architects and other consultants directly to achieve this goal.

Religious education

Worship services are held each Sunday in meetinghouses where members and non members are invited to attend and learn about Jesus Christ and how adopting his teachings benefits all. These services are open to the public. Various other meetings are held throughout the rest of the week.

The smallest congregation in the Church is a Branch. Larger congregations are called Wards. All members of the Church belong to a designated Branch or Ward. Groups of Branches and Wards are called Districts and Stakes respectively. These are created to facilitate the administration of the Church.

The Church has no paid ministry and thus local members fill leadership positions. Men and women volunteer their time to serve in whatever position they are called. Ecclesiastical functions in the various congregations are carried out on a volunteer basis.

Religious materials

The Charity supplies religious materials to members of the Church and others to help them in their Church work and to improve their learning. Many materials are provided free of charge.

The Church�s United Kingdom and worldwide website www.churchofjesuschrist.org provides access to a large range of religious materials including the �Come Follow Me�scripture study programme, magazines and other religious training materials.

Missionary work

A key objective is missionary work. Members of the Church are encouraged to share the gospel message and help prepare family members, friends, and other acquaintances who are not Latter day Saints to be taught by the full time missionaries. Many able young men in the Church prepare spiritually, physically, and emotionally to serve as full time missionaries. Single women and mature couples also have the opportunity to serve full time missions. In addition to proselyting, missionaries undertake service projects in the local community. The Charity assists in the funding of missionary activities in the United Kingdom.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Objectives and activities (continued)

Family history

Family history or genealogical research is a major interest and leading hobby for many people in Great Britain. Online resources, including searchable databases and images of original records, continue to grow, through records preservation and filming, volunteer indexing and family history research. The Church provides FamilySearch (at www.familysearch.org) free of charge to everyone, regardless of tradition, culture, or religious affiliation. Originally intended for Church members, FamilySearch resources help millions of people around the world discover their heritage and connect with family members. For members of the Church, family history research is a tenet of their faith.

There are no paid employees in Family History Centres. They are staffed by volunteers, with 95% of these being members of the Church.

One of the aims of the Family History Department is to deliver more records to more people and faster by providing timely access to the broadest set of family history records possible.

Work in the community

The Charity encourages members of the Church to become actively involved in their local community and provides training materials to assist with this. Community service activities are held throughout the Church�s congregations in the United Kingdom.

Public Affairs

The Charity undertakes certain public affairs projects during the year to ensure that the general public has a clear understanding of what the Church teachings stand for.

Promotion of self reliance and welfare principles

Self reliance is the ability, commitment, and effort to provide the spiritual and temporal necessities of life for self and family. As Church members become self reliant, they are also better able to serve and care for others. To promote this objective the Welfare and Self Reliance operations within the UK provide training to local church leaders and specialists, establish and train regional self reliance committees and facilitate the formation of self reliance workgroups. These groups combine practical skills with gospel principles to help people strengthen their faith in Jesus Christ and overcome temporal challenges. Groups are focused on one of four topics: employment, education, personal finances, or starting and growing a small business.

Public benefit

The trustees receive training on the guidance on public benefit published by the Charity Commission in exercising their powers and duties, including the supplementary public benefit guidance for charities whose aims include advancing religion. The next training will take place at the Annual General Meeting.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report Achievements and performance

Membership

Church membership in the United Kingdom stood at 186,803 at 31 December 2021 (2020: 186,734). In Scotland alone, total membership amounted to 15,711 at 31 December 2021 (2020: 15,781).

Provision of facilities for religious worship

At the year end, in the United Kingdom, there were 45 Stakes comprising 279 Wards and 40 Branches (2020: 45 Stakes, 279 Wards, 40 Branches). In Scotland alone, there were 5 Stakes comprising 25 Wards and 11 Branches (2020: 5 Stakes, 25 Wards, 11 Branches). At the year end, the Charity owned 271 (2020: 271) meetinghouses accommodating the Wards and Branches.

During 2021, the Charity leased or rented 22 premises (2020: 23) including 3 in Scotland (2020: 4) to house Wards and Branches that do not yet qualify for their own meetinghouse.

In 2021 the following building related costs were incurred:

o Worship facilities addition projects including remodels for space improvements, car park remodels for space improvements, car park remodels for space improvements, car park
additions and boiler replacements
Completed in 2021 �Gorleston, Manchester,
Norwich, Lisburn and Preston £880,000
Construction continued in 2021 �Huntingdon and
Stanley £331,000
Construction started in 2021 �Romford, Paisley,
Whitechapel and Preston £882,000
o Real Estate Projects
Sale of surplus meetinghouse facilities in 2021 2 £891,000
Acquisitions completed in 2021
0		 £0
o Meetinghouse Replacement and Improvement (R&I) Projects
Meetinghouse R&I projects completed in 2021 �96 £4,242,000
o Meetinghouse Operational and Maintenance Costs
31 December 2021 31 December 2020
Annual costs £9,569,000 £10,297,000
Total operational square feet 2,260,000 2,260,000

Operational costs include rent, cleaning, minor maintenance, grounds care, phone, utilities and administration costs.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report Achievements and performance (continued)

Missionary work

During 2021 there were 655 convert baptisms in the United Kingdom of which 52 were recorded in Scotland. The Charity continues to assist with the funding of missionary programmes and operates 5 missions in the United Kingdom of which one is in Scotland (covering Scotland, Northern Ireland and Ireland).

Each mission has a financial secretary to administer the financial matters of that mission. Administrative support is also provided from the administrative office located in Frankfurt, Germany and from the Charity�s office at 187 Penns Lane, Sutton Coldfield.

Overall, the missionary programme for 2021 finished within budget. Costs directly associated with the programme amounted to £7,790,000 in 2021 (2020: £7,129,000). The increase is mainly attributable to increased travel expenditure arising from the easing of Covid 19 restrictions in 2021.

Family History

The charity operates 126 Family History Centres. These research facilities are used extensively by members of the public as well as Church members.

Achievements during 2021 included:

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report Achievements and performance (continued)

Welfare/Self Reliance Services

The three main areas of activity of Welfare and Self Reliance Services (WSR) are �Humanitarian Projects �Addiction Recovery Program (ARP) and �Building Self Reliance

Despite the challenges of limited face to face interactions, the use of technology allowed the continued support of ecclesiastical leaders as they care for those in need.

Four senior missionary couples served in WSR. Three of the couples served specifically in assisting the small group of permanent employees in training, consulting and supporting Church congregations in their stewardship to care for those in need. Their primary effort has been related to helping deliver Self Reliance courses to Church members.

The fourth senior missionary couple served as Latter day Saint Charities missionaries (latterdaysaintcharities.org) in the UK and Ireland. They have been instrumental in supporting Church leaders, members and charity partners in securing funding as they, in turn, strive to support the needy in our communities.

o Humanitarian Projects

Church missionaries are assigned to help manage two Friendship Centres in the London area. The centres were originally focused on supporting refugees; however, the emphasis has changed so that they offer support to immigrant communities in general.

The London Friendship Centre in Peckham offers English Connect classes through a virtual platform and the Wembley Friendship Centre directly supports the immigrant community by offering courses including English Connect and other advanced English courses focusing on professionals who need to pass the �Secure English Language Test�(SELT).

46 new humanitarian projects received funding support in 2021 including projects to help the homeless of Bedford, advancing self sufficiency in Hull and issuing family support kits in Cardiff.

o Addiction Recovery Program (ARP)

o Building Self Reliance (SR)

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report Achievements and performance (continued)

Communication, public affairs, and community initiatives continued during 2021. Some highlights were:

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report �Financial Review

Summary

Each year the trustees carry out a review of the departmental performance of the Charity. They review the year�s achievements and suggest additional performance measures as necessary to achieve the next year�s desired results within the approved budgets.

Excluding the one off donation of £6,757,000 to the Charity's parent company and the exceptional item, expenditure showed only a slight increase from £44,264,000 in 2020 to £44,979,000 in 2021. This was primarily due to an increase in facility expenses as use of buildings and repair programmes have increased with the removal of Covid 19 restrictions. Costs were maintained within budget.

The Charity's donation from its restricted funds of £6,757,000 was made to CHC in its capacity as a charitable corporation. The donation will be used solely for charitable purposes and will facilitate the provision of funds for countries with the greatest need. Information on how the global Church uses donations can be found at latterdaysaintcharities.org.

The provision for impairment in the value of the Oliver House property was reduced resulting in a credit of £470,000 compared to a charge in 2020 of £1,840,000. The property valuation is based on the trustees' estimate of anticipated realisable value.

Incoming resources increased from £37,797,000 in 2020 to £49,489,000 in 2021. Member donations increased to £37,699,000 (2020: £32,242,000). There was a general increase due to the relative easing of uncertainty around Covid 19 ramifications. In addition, 5 individuals made large donations (greater than £50,000) in 2021 compared to 1 large donation in 2020.

Donations from related parties increased to £11,501,000 (2020: £4,801,000). CHC donated £9,201,000 (2019: £4,801,000) for general working capital needs. Additionally, a donation of £2,300,000 was received from Covent Garden IP Limited ("CGIP"), a sister company which invests in UK commercial property and donates its profits to the Church's charitable entities. CGIP has a stated aim to establish a pattern of periodic donations and in most cases the Charity will be the beneficiary.

Resources expended exceeded incoming resources for the year by £1,777,000 and after accounting for an actuarial gain the increase in funds was £7,570,000 for the year.

The Charity�s wholly owned trading subsidiary, OHL, continues to consider their ongoing plans for the property which could include a future sale on the open market.

Investment powers and policy

Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the trustees deem to be in the best interests of the Charity. The Charity�s objective is to maintain high liquidity while ensuring maximum security and achieving the highest possible return.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report �Financial Review (continued)

Reserves policy

Total charity funds held at 31 December 2021 were £255,221,000. These funds could only be realised by disposal of tangible fixed assets which have a balance sheet value of £258,012,000. The trustees are satisfied free reserves are within an acceptable range. Furthermore, if ever there was a need for more funds, grants will be provided by CHC.

The target level of free reserves, established by the trustees, is a maximum of £2,000,000 being the equivalent of 12 months average net charitable expenditure. The reserves policy is reviewed on an annual basis.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report �Plans for the Future

Provision of facilities for religious worship

The Charity will continue to review the criteria for deciding when to build new buildings and whether innovative building techniques can achieve cost reductions in contract procurement and construction.

Plans for 2022 include the following:

o New Meetinghouse Projects
Planned in 2022 �0 £0
o Meetinghouse Addition Projects including building expansion to increase capacity
Planned in 2022:
Stanley and Welling £1,648,000
o Real Estate Projects
Planned sale of surplus meetinghouse facilities in 2022 3 £500,000
Planned acquisitions in 2022 £0
o Meetinghouse Replacement and Improvement (R&I) Projects
Planned in 2022 �99 £4,271,000
o Meetinghouse Operational and Maintenance Costs
Planned annual costs in 2022 £11,077,000
Planned total operational square feet 2,260,000

Operational costs include rent, cleaning, minor maintenance, grounds care, phone, utilities and administration costs.

Religious materials

The Charity will continue to supply religious materials to members and others in a simple and affordable way.

Missionary work

Sufficient budgeted funds will be allocated to support the growth of the Church and the number of annual convert baptisms.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Strategic Report �Plans for the Future (continued)

Family History

Work will continue on the following projects:

Welfare/Self Reliance Services (WSR)

WSR Services will continue to establish local resource centres and self reliance workgroups to facilitate placements in employment and pursuits of self employment and education opportunities. There will also be a continued emphasis on setting up online groups allowing people who cannot join a group at a physical location to access these same resources remotely. Furthermore, efforts will be focussed on identifying resources and providing instructions to help in the development of Preparedness and Emergency Response Plans for families and congregational groups.

Work in the community

Working through the Church Communication Department, the Charity will continue its efforts in 2022 as follows:

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Trustees�duty to promote the success of the Charity �s172 statement

The trustees have a duty to promote the success of the Charity and, in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to specific factors, including:

The Charity�s operations are directed by the Europe North Area Presidency (described under the heading, �Organisation�on page 3) and by the Director of Temporal Affairs (�DTA�) for Europe North, David Robertson. The Area Presidency provides ecclesiastical direction for the Church in Europe North Area and oversees the Church�s lay ministry. The DTA, with his council of senior managers, manage the temporal operations of the Church in Europe North.

Day to day management and decision making is delegated to the council of senior managers, who are required to act in furtherance of the Charity�s purpose and to ensure that the Charity�s activities are carried out in compliance with policies approved by CHC. In this way the success of the Charity is promoted with due regard to the factors set out in section 172.

The Charity has a clear purpose which is to promote and further the religious and other charitable work of The Church of Jesus Christ of Latter day Saints in the United Kingdom and elsewhere. This shapes all of its long term decisions and helps to shape the consequences thereof. During 2021 and 2022, the Charity�s purpose is being accomplished through the Area Plan with its initiatives of �Follow the Prophet, �Invite a Friend to Sacrament Meeting and �Take an Ancestor to the Temple. Additionally, teams of senior management have held strategy workshops to discuss and plan for the following four areas of focus �Talent attraction and retention, �Enhancing leader and member administration through improved collaboration �Becoming more environmentally friendly and socially responsible and �Leveraging technology to facilitate decision making and add value.

As the Charity operates in the framework described in the preceding paragraph both its ecclesiastical and temporal activities promote the Charity�s purpose. Also, in this way the trustees, senior management and other employees maintain an attitude to strategic, financial and operational decision making that is values based and sustainable in approach, and therefore aligned to the requirements and expectations of section 172.

The Area Controls Committee keeps under review the Charity�s principal risks and its risk appetite, considering emerging risks and reviewing changes in the Charity�s risk profile and responses thereto. This is further described on page 20.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Trustees�duty to promote the success of the Charity �s172 statement (continued)

The interests of employees

The Charity's success is dependent on excellent people and leadership at all levels and there is regular engagement with staff to gather their views and expertise. The needs and opinions of staff are listened to through various processes. A confidential Voice of the Workforce survey (described on page 4) is conducted every two years and the results are carefully analysed and recommendations are actioned. Each staff member has an individual Accountability and Talent Improvement (�ATI�) plan which is assessed at regular one on one meetings during the year. In addition, each employee has a weekly check in meeting with their supervisor. These have been particularly important as the workforce has been dispersed whilst working from home during the Covid 19 pandemic. Further information about our employee policies is provided on page 4.

The organisation has also introduced new guidelines, People Management Principles, directed at how it effectively manages its workforce. This focusses on the four categories of 1) Recruitment and Selection, 2) Performance, 3) Development and 4) Compensation, Benefits and Recognition. Through this framework, staff will be proactively nurtured in their career development and treated in a fair and equitable manner.

The impact of the Charity�s operations on the community and the environment

The Charity interacts with the community in many ways as described in the Strategic Report under the sections on Missionary work, Family History, Welfare/Self Reliance Services and Work in the Community.

The impact of the Charity�s operations on the environment are reported in the Streamlined Energy and Carbon Reporting (SECR) statement on page 19.

The desirability of the Charity maintaining a reputation for high standards of business conduct

The Charity places paramount importance on how it conducts business. This is intrinsically linked with its religious values of being honest in its dealings and �doing good to all men�.

The Charity has in place a wide range of policies and processes that promote corporate responsibility and ethical behaviour. Every area of operation has documented standards with which staff, volunteers and missionaries are familiar and which guides their conduct. The Charity benefits from an internal audit function which monitors adherence to internal standards.

All employees and missionaries undertake annual training in subjects including of Security Awareness for Church Workforce, Following Our Standards of Conduct, Preventing Discrimination and Sexual Harassment, Surviving an Active Shooter Incident and Working Together Safely �Safety Orientation.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Trustees�duty to promote the success of the Charity �s172 statement (continued)

The need to foster the Charity�s relationships

The Charity maintains an understanding of the needs of key parties through regular engagement with them. The information obtained then informs how organisational objectives, policies and strategy are defined. Ecclesiastical and temporal decision making processes consider the impact of potential decisions on relevant stakeholders. The Charity�s key relationships are with UK Church members, missionaries, employees, suppliers and the community. The Charity�s interaction with its employees and with the community have been reported above.

Church members (and anyone else who so desires) are invited to participate in Church meetings on Sundays and additional meetings during the week. As described on page 6 these meetings invite people of all ages to learn about Jesus Christ and how adopting his teachings benefits all. The General Handbook: Serving in The Church of Jesus Christ of Latter day Saints provides guidance for general and local Church leaders. It is divided into four sections: Doctrinal Foundation, Church Organization, Work of Salvation and Exaltation and Church Administration. Additionally, members are encouraged to learn of and attend to others�needs through ministering.

The interests of the suppliers are considered by senior management when making decisions by defining and implementing policies that ensure the integrity of procurement processes. In accordance with policy, all repeat spend or transactions above £1,500 follow a documented and monitored procurement process with effective communication between all stakeholders including external suppliers. Frequent audits are conducted to ensure process is being followed. In 2021 and prior years the focus has been on generating managed supplier pools for frequently purchased goods and services.

Missionaries of The Church of Jesus Christ of Latter day Saints refer regularly to the handbook, �Missionary Standards for Disciples of Jesus Christ,�for guidance on dealing with a variety of situations and to help them act appropriately. The principles of the handbook are designed to help missionaries develop habits and behaviours that will strengthen their character and give them joy not only on their missions, but also after they return home. The handbook includes an enhanced section on missionary safety and also provides guidelines to help missionaries become more culturally aware and sensitive. Proselyting missionaries are under the care and direction of a mission president of which there are 5 in the United Kingdom, including 1 in Scotland.

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Streamlined Energy and Carbon Reporting (SECR) statement

2021 2020
Energy consumption (kWh) Grid electricity 5,508,472 5,617,632
Gas 23,516,371 13,141,166
Transport Fuel 2,985,835 2,200,741
Total 32,007,678 20,959,539
Emissions (tCO2e) Grid electricity 1,170 1,310
Gas 4,307 2,416
Transport Fuel 696 517
Total 6,173 4,243

Intensity ratio

Our calculated intensity ratio is 0.0488 tCO2e per head (being the sum of employee, missionaries and Church membership numbers).

Methodology

Energy Management

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THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Fundraising

Members of The Church of Jesus Christ of Latter day Saints pay voluntary tithing donations of one tenth of their income. They may also choose to make donations to the Charity�s other funds. All donations are unsolicited, and no fundraising is done for the Charity�s own funds.

Principal risks and uncertainties

Risk management is embedded in the day to day processes of the Charity. The annual risk assessment process documents the risks perceived by senior personnel representing each of the major functions in the Charity�s organisation. Those risks are collated into an Area Risk Plan which is regularly reviewed by the Area Controls Committee whose members include one of the trustees, the Area Controller, in house legal counsel and a representative from CHC. Risk management strategies are identified and implemented to mitigate key risks.

Risks of the Charity which are currently being worked on are:

The main risk the Charity faces is that it relies on donations to finance its charitable activities. However, the parent company has guaranteed its future financial support, where necessary, to ensure that the Charity has sufficient reserves to meet the costs of its charitable activities. There are no material uncertainties about the Charity�s ability to continue as a going concern.

Financial and risk management

The following statements summarise the Charity�s identified forms of financial and risk management policies:

The trustees have a risk management strategy which encompasses:

20

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Going Concern

A review of cash flow forecasts to December 2022 which consider the impact of Covid 19 on membership and donation levels and the potential consequences if funding was not available from the parent company, indicate that the Charity will continue to have sufficient funds to enable it to continue its charitable activities.

CHC, located in the USA has confirmed its ongoing financial support if required. On this basis, the trustees are satisfied that the Charity is a going concern.

21

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

Trustees�responsibilities statement

The trustees (who are also directors of The Church of Jesus Christ of Latter day Saints (Great Britain) for the purposes of company law) are responsible for preparing the trustees�Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

o select suitable accounting policies and then apply them consistently; o observe the methods and principles in the Charities SORP (FRS102);

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

The trustees confirm that:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company�s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

22

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Report of the trustees (incorporating the strategic report) for the year ended 31 December 2021

The report of the trustees (incorporating the strategic report) was approved on behalf of the trustees by:

Christian Ottiker

Trustee Date: 26 September 2022 Company number: 00699764

23

Independent auditor's report to the members and trustees of The Church of Jesus Christ of Latter day Saints (Great Britain)

Opinion

We have audited the financial statements of The Church of Jesus Christ of Latter day Saints (the �parent charitable company�) and its subsidiaries (the �group�) for the year ended 31 December 2021 which comprise Group and Parent Charitable Company Statements of Financial Activities (including income and expenditure), the Group and Parent Charitable Company Balance Sheets, the Group and Parent Charitable Company Statements of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

In our opinion, the financial statements:

�give a true and fair view of the state of the group�s and parent charitable company's affairs as at 31 December 2021 and of the group�s and parent charitable company's incoming resources and application of resources, including the group�s and parent income and expenditure for the year then ended;

�have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

�have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 group�s and parent charitable company�s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor�s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with

24

Independent auditor's report to the members and trustees of The Church of Jesus Christ of Latter day Saints (Great Britain) (continued)

the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

�the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements. �the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

�the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

�the parent charitable company financial statements are not in agreement with the accounting records and returns; or

�certain disclosures of trustees' remuneration specified by law are not made; or

�we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Group's and the parent charitable company'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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

25

Independent auditor's report to the members and trustees of The Church of Jesus Christ of Latter day Saints (Great Britain) (continued)

Auditor�s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non compliance with laws and regulations related to health and safety, anti bribery and employment law. We considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non compliance throughout the audit.

We evaluated management�s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

�Discussions with management and assessment of known or suspected instances of non compliance with laws and regulations (including health and safety) and fraud,

�Assessment of identified fraud risk factors; and

�Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and

�Conducting interviews with appropriate personnel to gain further insight into the control systems implemented, and the risk of irregularity; and

�Challenging assumptions and judgements made by management in its significant accounting estimates; and

�Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and �Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and

�Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and

�Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

�Reading minutes of meetings of those charged with governance.

26

Independent auditor's report to the members and trustees of The Church of Jesus Christ of Latter day Saints (Great Britain) (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

�Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

�Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity�s internal control.

�Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

�Conclude on the appropriateness of the trustees�use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity�s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor�s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor�s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

�Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view).

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company�s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity�s members those matters we are required to state to them in an auditor�s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity�s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP

Chartered Accountants Statutory Auditors Canterbury Date:

27

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Consolidated Statement of Financial Activities (including consolidated income & expenditure account) for the year ended 31 December 2021

----- Start of picture text -----
(Note 9)
Unrestricted Restricted Total Total
Note funds funds funds funds
2021 2021 2021 2020
£'000 £'000 £'000 £'000
Income
Donations 3 37,699 37,699 32,242
Donation from parent charity 20 9,201 9,201 4,801
Donation from sister charity 20 2,300 2,300
Income from charitable activities:
Temple income generating activities 312 312 280
Other:
Other operating income 17 17 527
Loss on disposal of fixed assets (40) (40) (53)
Total income 49,489 49,489 37,797
Expenditure
Charitable activities 4a 44,523 44,523 43,937
Charitable donation 20 6,757 6,757
Other trading activities 206 206 163
Other finance expense 250 250 164
Exceptional item impairment 10 (470) (470) 1,840
Total expenditure 44,509 6,757 51,266 46,104
Net income/(expenditure) 5 4,980 (6,757) (1,777) (8,307)
Transfers between funds 868 (868)
Other recognised gains/(losses)
Actuarial gain/(loss) on defined benefit scheme 22 9,347 9,347 (2,277)
Net movement in funds 15,195 (7,625) 7,570 (10,584)
Reconciliation of funds
Total funds brought forward 230,026 7,625 237,651 248,235
Total funds carried forward 245,221 245,221 237,651
----- End of picture text -----

None of the Charity's activities were discontinued during the above two financial years.

The notes on pages 32 to 48 form part of these financial statements.

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

28

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Charity Statement of Financial Activities (including income & expenditure account) for the year ended 31 December 2021

----- Start of picture text -----
(Note 9)
Unrestricted Restricted Total Total
Note funds funds funds funds
2021 2021 2021 2020
£'000 £'000 £'000 £'000
Income
Donations 3 37,699 37,699 32,242
Donation from parent charity 20 9,201 9,201 4,801
Donation from sister charity 20 2,300 2,300
Income from charitable activities:
Temple income generating activities 312 312 280
Investments:
Interest income OHL loan notes 268 268 351
Other:
Other operating income 17 17 527
Loss on disposal of fixed assets (40) (40) (53)
Total income 49,757 49,757 38,148
Expenditure
Charitable activities 4a 44,523 44,523 43,937
Charitable donation 20 6,757 6,757
Other finance expense 250 250 164
Exceptional item impairment of loan notes 12 180 180 4,640
Total expenditure 44,953 6,757 51,710 48,741
Net income/(expenditure) 5 4,804 (6,757) (1,953) (10,593)
Transfers between funds 868 (868)
Other recognised gains/(losses)
Actuarial gain/(loss) on defined benefit scheme 22 9,347 9,347 (2,277)
Net movement in funds 15,019 (7,625) 7,394 (12,870)
Reconciliation of funds
Total funds brought forward 230,083 7,625 237,708 250,578
Total funds carried forward 245,102 245,102 237,708
----- End of picture text -----

None of the Charity's activities were discontinued during the above two financial years.

The notes on pages 32 to 48 form part of these financial statements.

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

29

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Consolidated and Charity Balance Sheet for the year ended 31 December 2021

----- Start of picture text -----
Group Group Charity Charity
Note 2021 2020 2021 2020
£'000 £'000 £'000 £'000
Fixed assets
Tangible assets 10 258,012 264,190 249,442 256,090
Total fixed assets 258,012 264,190 249,442 256,090
Current assets
Stocks 11 139 160 139 160
Debtors 12 2,070 2,073 10,640 10,260
Investments 13 1 1 1 1
Cash at bank and in hand 7,304 4,403 7,157 4,361
Total current assets 9,514 6,637 17,937 14,782
Creditors: Amounts falling due within one year 14 (2,979) (3,452) (2,951) (3,440)
Net current assets 6,535 3,185 14,986 11,342
Net assets excluding pension liability 264,547 267,375 264,428 267,432
Defined benefit pension scheme liability 22 (9,326) (19,724) (9,326) (19,724)
Total net assets 255,221 247,651 255,102 247,708
The funds of the Charity
Called up share capital 16 10,000 10,000 10,000 10,000
Restricted income funds 7,625 7,625
10,000 17,625 10,000 17,625
Unrestricted income funds 254,547 249,750 254,428 249,807
Pension reserve 22 (9,326) (19,724) (9,326) (19,724)
Total unrestricted funds 245,221 230,026 245,102 230,083
Total charity funds 17 255,221 247,651 255,102 247,708
----- End of picture text -----

The notes on pages 32 to 48 form part of these financial statements.

The financial statements were approved by the board of trustees on 26 September 2022 and were signed on its behalf by:

Christian Ottiker trustee

Company number: 00699764

30

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Consolidated and Charity Statement of Cash Flows for the year ended 31 December 2021

----- Start of picture text -----
Group Group Charity Charity
Note 2021 2020 2021 2020
£'000 £'000 £'000 £'000
Cash flows from operating activities 18 4,387 2,468 4,014 2,136
Cash flows from investing activities
Interest received 268 351
Payments to acquire tangible fixed assets (2,947) (3,568) (2,947) (3,568)
Receipts from sales of tangible fixed assets 1,461 1,530 1,461 1,530
Cash flows from investing activities (1,486) (2,038) (1,218) (1,687)
Cash flows from financing activities
Decrease in cash and cash equivalents in the year 2,901 430 2,796 449
Cash and cash equivalents at 1 January 4,403 3,973 4,361 3,912
Total cash and cash equivalents at 31 December 7,304 4,403 7,157 4,361
----- End of picture text -----

The movement in net debt for the current year and prior year is identical to the movements in cash flow set out above.

The accounting policies and notes on pages 32 to 34 form part of these accounts.

31

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements

for the year ended 31 December 2021

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The Charity is incorporated in the United Kingdom. The charity meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

A summary of the significant accounting policies which have been applied consistently are:

Accounting convention

The accounts are prepared under the historical cost convention and on a going concern basis. The parent company has guaranteed its future financial support, where necessary, to ensure that the Charity has sufficient reserves to meet the costs of its charitable activities, therefore the trustees are of the view that the Charity is a going concern and the accounts have been prepared on this basis.

Going Concern

Management has concluded that the impact of Covid 19 will not affect the charity�s ability to continue as a going concern. Management have considered the impact of Covid 19 on membership and donation levels and if funding was not available from the parent company, the Charity would be able to reduce its costs in order to continue as a going concern without parental support.

In addition, should the need arise, the Charity has received a guarantee from the ultimate parent undertaking, The Church of Jesus Christ of Latter day Saints, located in the USA, confirming its intention to continue to make available to the company sufficient funds for a period of at least 12 months from the date of approval of these financial statements, in order to enable the Charity to meet its financial obligations as they fall due. On this basis, the trustees are of the opinion that it is appropriate to adopt the going concern basis in the preparation of the financial statements.

Group financial statements

The financial statements consolidate the results of the Charity and its wholly owned subsidiary Oliver House Limited ("OHL") on a line by line basis.

Incoming resources

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Donations represent amounts collected from United Kingdom members on a receipts basis, together with income tax recoverable for amounts paid under Gift Aid.

Temple income relates to funds received by patrons for services rendered by the Charity such as lodging, cafeteria sales and rental of ceremonial clothing. Amounts are collected on a receipt basis.

Income is designated as restricted or unrestricted by members. Restricted income is used for the purpose specified by the member at the time that the donation is made.

Deferred income relates to advance payments for certain regional activities held by the Charity.

Investment income (arising from the Charity's loan to its subsidiary OHL) is recognised on an accruals basis.

Periodically, further donations are received from the Charity's parent company, The Church of Jesus Christ of Latter day Saints to provide funds for the company's charitable activities and to ensure that the company has adequate reserves. These donations may be received by way of full or partial cancellation of amounts due to the parent company. These donations are separately disclosed in the statement of financial activities and income and expenditure account.

32

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

Charitable expenditure and irrecoverable VAT

Charitable expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Charitable expenditure comprises expenditure directly relating to the objects of the Charity and expenditure on the management and administration of the Charity. An analysis of these costs is provided in note 4. Expenditure is recognised on an accruals basis.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include staff, travel, general administration, materials and supplies, cost of sales, governance costs which support the Charity programme and activities. The bases on which support costs have been allocated are set out in note 5c.

Stock

Stock is valued at the lower of cost (determined under a weighted average method) and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred. Donated items of stock are recognised at fair value which is the amount the Charity would have been willing to pay for the items on the open market.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at historic cost less accumulated depreciation. Cost includes the original purchase of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Individual fixed assets costing £5,000 or more are capitalised at cost. Building improvements must satisfy at least one additional criteria from the following: i) complete roof replacement; ii) mechanical systems (e.g. boilers); iii) seismic structural upgrades; iv) structural improvements; and/or v) demolition and reconstruction of interior space if any wall is removed. Depreciation is provided on all tangible fixed assets, other than freehold land and assets in the course of construction, at rates calculated to write down each asset to its estimate residual value over its expected useful life as follows:

Freehold buildings straight
line, over 50 years
Fixtures and fittings* straight line, over 10 years
Land improvements straight
line, over 50 years
Plant and equipment straight line, over 5 years
Motor vehicles straight line, over 4 years
Freehold land not depreciated
Assets in the course of construction not depreciated

Debtors

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

Investments

Investments in subsidiaries are valued at cost less provision for impairment.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

33

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

Operating leases

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the lease term.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the income and expenditure account.

Pension costs

The Charity operates a defined benefit pension scheme, which had been contracted out of the state second pension scheme until this was abolished on 5 April 2016.

Pension costs are accounted for under Financial Reporting Standard (FRS) 102. The disclosures required by Financial Reporting Standard (FRS) 102 are included in the notes to the financial statements (see note 23). The net liability under the defined benefit pension scheme is included in the balance sheet. Current and past service costs together with the administrative costs and the total net interest costs of the scheme are included in expenditure in the statement of financial activities. Actuarial gains and losses are included on the face of the statement of financial activities. In addition, Brigham Young University Limited and Agreserves Limited are current contributors to the scheme.

For the defined contribution scheme the amount charged in respect of pension costs and other postretirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Accounting estimates and judgements

In preparing the financial statements, the trustees are required to make estimates and judgements. The most significant areas in which judgements have been made that could impact the amounts reported in the financial statements are outlined below.

Actuarial assumptions The defined benefit pension scheme has been valued by a qualified independent actuary in accordance with FRS 102. Significant judgement is required in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.

Cost Allocation Support costs are allocated to charitable activities and judgement is required to determine the appropriate allocation.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in accordance with the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the Charity.

Further explanation of the nature and purpose of each restricted fund is included in the notes to the accounts (see note 9).

Legal status of the Charity

The Church of Jesus Christ of Latter day Saints (Great Britain) is a private unlimited company with share capital and a registered charity in England, Wales and Scotland.

34

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
2a Prior Year Consolidated SOFA Unrestricted Restricted Total
funds funds funds
2020 2020 2020
£'000 £'000 £'000
Income
Donations 29,221 3,021 32,242
Donation from parent charity 4,801 4,801
Income from charitable activities:
Temple income generating activities 280 280
Other:
Other operating income 527 527
Loss on disposal of fixed assets (53) (53)
Total income 34,776 3,021 37,797
Expenditure
Charitable activities 35,224 8,713 43,937
Other trading activities 163 163
Other finance expense 164 164
Exceptional item impairment 1,840 1,840
Total expenditure 37,391 8,713 46,104
Net expenditure (2,615) (5,692) (8,307)
Transfers between funds (6,283) 6,283
Other recognised (losses)/gains
Actuarial loss on defined benefit scheme (2,277) (2,277)
Net movement in funds (11,175) 591 (10,584)
Reconciliation of funds
Total funds brought forward 241,201 7,034 248,235
Total funds carried forward 230,026 7,625 237,651
----- End of picture text -----

35

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
2b Prior Year Charity SOFA Unrestricted Restricted Total
funds funds funds
2020 2020 2020
£'000 £'000 £'000
Income
Donations 29,221 3,021 32,242
Donation from parent charity 4,801 4,801
Income from charitable activities:
Temple income generating activities 280 280
Investments:
Interest income OHL loan notes 351 351
Other:
Other operating income 527 527
(Loss)/surplus on disposal of fixed assets (53) (53)
Total income 35,127 3,021 38,148
Expenditure
Charitable activities 35,224 8,713 43,937
Other finance expense 164 164
Exceptional item impairment of loan notes 4,640 4,640
Total expenditure 40,028 8,713 48,741
Net expenditure (4,901) (5,692) (10,593)
Transfers between funds (6,283) 6,283
Other recognised (losses)/gains
Actuarial loss on defined benefit scheme (2,277) (2,277)
Net movement in funds (13,461) 591 (12,870)
Reconciliation of funds
Total funds brought forward 243,544 7,034 250,578
Total funds carried forward 230,083 7,625 237,708
----- End of picture text -----

36

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
3 Donations 2021 2020
£'000 £'000
Unrestricted funds:
Tithing income 34,408 29,221
Fast offering 1,649
Missionary support 773
Humanitarian aid 667
Temple construction 90
Perpetual education 80
Book of Mormon 32
37,699 29,221
Restricted funds:
Fast offering fund 1,459
Missionary support fund 886
Humanitarian aid fund 506
Temple construction fund 76
Perpetual education fund 67
Book of Mormon fund 27
3,021
----- End of picture text -----

The Charity benefits greatly from the involvement and crucial support of its many members, missionaries and volunteers. Details of events and humanitarian efforts are given in the trustees' report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

Fast offering donations

These funds are contributed by members of The Church to be used in the relief of the poor and needy. During the year £1,160,000 (2020: £1,358,000) was spent for the relief of the poor and needy in the United Kingdom.

Missionary support donations

The missionary support donations are made by members in the United Kingdom towards the costs of The Church's worldwide missionary fund programme which is co ordinated and administered by the parent company, The Church of Jesus Christ of Latter day Saints. Funds authorised for specified missionaries are released evenly over their mission term of either 18 months or two years.

Book of Mormon fund

These funds are donated by the members towards the production and distribution costs of 'The Book of Mormon Another Testament of Jesus Christ'. This book is printed by The Church of Jesus Christ of Latter day Saints.

Temple construction fund

These funds are donated by the members towards the cost of constructing temples by The Church of Jesus Christ of Latter day Saints in any country throughout the world.

Humanitarian aid fund

These funds are donated by the members to help fund the programme of humanitarian aid approved by The Church of Jesus Christ of Latter day Saints.

Perpetual education fund

These funds are donated by the members to help fund the programme of perpetual education approved by The Church of Jesus Christ of Latter day Saints.

From June 2022, the donation categories Book of Mormon, Temple Construction and Perpetual Education are being combined into a category called General Offerings. This change will allow members to contribute to a general donation category that will be used under prophetic direction to meet a variety of ever changing needs as they emerge. These changes are intended to simplify the donation process for members as well as streamline the recording of donations.

37

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
4a Analysis of expenditure on charitable activities Total Total
funds funds
2021 2020
£'000 £'000
Activity
Provision of worship facilities 25,950 25,018
Religious education 3,311 3,673
Missionary work 8,572 7,998
Temple and Family History Work 5,189 5,475
Community projects 1,501 1,773
44,523 43,937
4b Charitable activities allocation Activities
undertaken Support
directly costs Total
2021 2021 2021
£'000 £'000 £'000
Activity
Provision of worship facilities 16,033 9,917 25,950
Religious education 3,311 3,311
Missionary work 7,790 782 8,572
Temple and Family History Work 5,189 5,189
Community projects 1,323 178 1,501
25,146 19,377 44,523
Activities
undertaken Support
directly costs Total
2020 2020 2020
£'000 £'000 £'000
Activity
Provision of worship facilities 14,392 10,626 25,018
Religious education 3,673 3,673
Missionary work 7,169 829 7,998
Temple and Family History Work 5,475 5,475
Community projects 1,544 229 1,773
23,105 20,832 43,937
4c Support costs allocation Provision of Religious Missionary Family Community
worship facilities Education work History work projects Total
2021 2021 2021 2021 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
Support cost
Staff costs 2,314 2,956 698 4,631 159 10,758
Travel 78 100 24 156 5 363
General administration 109 139 33 219 8 508
Materials and supplies 32 41 10 65 2 150
Depreciation 7,325 7,325
Governance 11 13 3 22 1 50
Cost of sales 48 62 14 96 3 223
9,917 3,311 782 5,189 178 19,377
----- End of picture text -----

38

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |4c|Support costs allocation|(continued)| |Provision of|Religious|Missionary|Family|Community| |worship facilities|Education|work|History work|projects|Total| |2020|2020|2020|2020|2020|2020| |£'000|£'000|£'000|£'000|£'000|£'000| |Support cost| |Staff costs|2,533|3,195|721|4,764|199|11,412| |Travel|62|78|18|116|5|279| |General administration|215|272|61|405|17|970| |Materials and supplies|63|79|18|118|5|283| |Depreciation|7,714|7,714| |Governance|12|15|3|22|1|53| |Cost of sales|27|34|8|50|2|121| |10,626|3,673|829|5,475|229|20,832|

----- End of picture text -----

The staff costs are allocated on the basis of the department in which the particular employees work. Travel, general administration, materials and supplies, cost of sales, governance are allocated on a pro rata basis with the wages costs as these support costs relate to all charitable activities. Depreciation only relates to the charitable activity of providing worship facilities.

----- Start of picture text -----
|||||| |---|---|---|---|---| |5|Net income/(expenditure) for the year|2021|2020| |£'000|£'000| |Net income/(expenditure) is stated after (crediting)/charging:| |Operating leases (land and buildings)|4,365|4,691| |Depreciation|7,325|7,714| |Impairment of land|(470)|1,840| |Auditor's remuneration|Audit|50|53| |Auditor's remuneration|Non|audit services|5|6| |Loss/(surplus) on disposal of fixed assets|40|53|

----- End of picture text -----

39

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

6 Employees' and trustees' remuneration

The trustees and the Area Controller, who served during the year ended 31 December 2021, received no remuneration from the Charity (2020: none). The total remuneration of the 7 key management positions including employer pension contributions was £696,000 (2020: £641,000). No reimbursement for expenses incurred during the year was made to the trustees, Area Controller or key management (2020: none).

Average monthly number of persons (including directors) employed by the company during the year:
Teaching function
Office administration
Building cleaners		 2021
2020
Number
Number
45
45
126
146
28
27
199
218
Staff costs for the above persons:
Wages and salaries
Social security costs
Other pension costs		 2021
2020
£'000
£'000
8,155
8,220
1,268
1,231
1,335
1,961
10,758
11,412

Included in staff costs were termination payments of £181,867 (2020: £408,893) paid to 6 (2020: 8) individuals.

The number of employees whose emoluments fell within the following bands during the year were as follows:

2021 2020
Number Number
£110,001 £120,000 2
£100,001 £110,000 1
£90,001 £100,000 1 2
£80,001 £90,000 5 7
£70,001 £80,000 11 8
£60,001 £70,000 20 20

Contributions of £736,000 (2020:£561,000) were made to the defined benefit pension scheme for 33 (2020:34) higher paid employees.

OHL does not have employees and the key management personnel, the Director, received no remuneration from the company.

Accounting and administrative services are provided to the Charity and to OHL, free of charge, by employees of The Church of Jesus Christ of Latter day Saints in Germany.

40

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

7 Taxation

The company is a registered charity and as such is entitled to certain tax exemptions on income and profits carried on in furtherance of the Charity's primary objectives, if the profits and surpluses are applied solely to its charitable purposes.

8 Analysis of group net assets between funds

Share capital
Share capital
& unrestricted
Restricted
& unrestricted
Restricted
funds
funds
Total
funds
funds
Total
2021
2021
2021
2020
2020
2020
£'000
£'000
£'000
£'000
£'000
£'000
Tangible fixed assets
258,012
258,012
264,190
988
265,178
Net current (liabilities)/assets
6,535
6,535
(4,440)
6,637
2,197
Defined benefit scheme pension liability
(9,326)
(9,326)
(19,724)
(19,724)
255,221
255,221
240,026
7,625
247,651

9 Restricted funds

The capital and income funds of the Charity included restricted funds comprising the following unexpended balances of donations held on trust to be applied for specific purposes.

Fast Offering fund
Missionary support fund
Book of Mormon fund
Temple construction fund
Humanitarian aid fund		 Balance
Donation
Balance
1 Jan 2021
to CHC
Transfer
31 Dec 2021
£'000
£'000
£'000
£'000
868
(868)
372
(372)
815
(815)
4,572
(4,572)
998
(998)
7,625
(6,757)
(868)

On 31 December 2021, the Charity made a donation from its restricted funds of £6,757,000 to CHC in its capacity as a charitable corporation. The donation will be used solely for charitable purposes and will facilitate the provision of funds for countries with the greatest need. Information on how the global Church uses donations can be found at the website latterdaysaintcharities.org.

From 1 January 2021, all donations were treated as unrestricted. Though reasonable efforts are made to use donations as designated, all donations are used at the Church�s sole discretion to further the Church�s overall mission.

41

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
10 Tangible fixed assets Group Assets in the Restated
course of Land and Plant and Motor
construction Buildings Equipment Vehicles Total
£'000 £'000 £'000 £'000 £'000
Cost:
At 1 January 2021 2,012 403,626 480 3,099 409,217
Transfers (1,133) 966 167
Additions 1,448 818 681 2,947
Disposals (769) (2,010) (407) (3,186)
Impairment partial reversal 470 470
At 31 December 2021 1,558 403,870 647 3,373 409,448
Depreciation:
At 1 January 2021 142,641 303 2,083 145,027
Charge for Year 7,103 82 140 7,325
Disposals (581) (335) (916)
At 31 December 2021 149,163 385 1,888 151,436
Net book value:
At 31 December 2021 1,558 254,707 262 1,485 258,012
At 31 December 2020 2,012 260,985 177 1,016 264,190
Included in Land and Buildings is land with a value of £40.3m (2020: £39.9m), which is not depreciated.
Tangible fixed assets Charity Assets in the Restated
course of Land and Plant and Motor
construction Buildings Equipment Vehicles Total
£'000 £'000 £'000 £'000 £'000
Cost:
At 1 January 2021 2,012 395,526 480 3,099 401,117
Transfers (1,133) 966 167
Additions 1,448 818 681 2,947
Disposals (769) (2,010) (407) (3,186)
At 31 December 2021 1,558 395,300 647 3,373 400,878
Depreciation:
At 1 January 2021 142,641 303 2,083 145,027
Charge for Year 7,103 82 140 7,325
Disposals (581) (335) (916)
At 31 December 2021 149,163 385 1,888 151,436
Net book value:
At 31 December 2021 1,558 246,137 262 1,485 249,442
At 31 December 2020 2,012 252,885 177 1,016 256,090
----- End of picture text -----

Included in Land and Buildings is land with a value of £31.7m (2020: £31.8m), which is not depreciated.

Fixtures and fittings (included in land and buildings) were adjusted to correct an error brought forward from prior years which duplicated a write off of old, fully depreciated assets.

42

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

11 Stocks
Finished goods and goods for resale
12 Debtors
Due within one year
Deposits and advances
Unsecured loan notes
Less provision for impairment of loan notes
Other debtors
Prepayments and accrued income		 Group
Group
Charity
Charity
2021
2020
2021
2020
£'000
£'000
£'000
£'000
139
160
139
160
Group
Group
Charity
Charity
2021
2020
2021
2020
£'000
£'000
£'000
£'000
427
399
427
399
13,390
12,740
(4,820)
(4,640)
28
36
28
123
1,615
1,638
1,615
1,638
2,070
2,073
10,640
10,260

Unsecured loan notes were received from the Charity by its wholly owned subsidiary OHL. These are interest bearing at 12 month LIBOR plus 2% rounded down to the nearest quarter percent (2021: 2.00%) and are redeemable on the earlier of (i) completion of the sale of freehold property, owned by OHL, to the Charity or a third party and (ii) 31 December 2022.

A provision for impairment of the OHL loan notes was made to reduce the receivable to equal the value of OHL's asset, being the amount expected to be available for settlement of the loans as at 31 December 2021.

13 Investments
Group and Charity
Deseret U.K.Trustco Unlimited		 2021
2020
£'000
£'000
1
1
1
1

The trustees consider the value of the investments to be supported by the company's underlying assets.

The Charity also holds one £1 ordinary share in its wholly owned trading subsidiary OHL (company number 09795165) which was incorporated in the United Kingdom on 25 September 2015. This is the only share allotted, called up and fully paid.

OHL recorded a loss of £4,000 for the year ended 31 December 2021 (2020: £2,354,000).

14 Creditors: Amounts falling due within one year
Other taxation and social security costs
Other creditors
Deferred income
Other creditors is further analysed as follows
Amounts owed to Parent Company (CHC)
Trade and other accrued liabilities		 Group
Group
Charity
Charity
2021
2020
2021
2020
£'000
£'000
£'000
£'000
123
189
135
198
2,472
2,868
2,432
2,847
384
395
384
395
2,979
3,452
2,951
3,440
Group
Group
Charity
Charity
2021
2020
2021
2020
£'000
£'000
£'000
£'000
2,472
2,867
2,432
2,846
2,472
2,867
2,432
2,846

43

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
15 Creditors: Amounts falling due within one year 2021 2020
£'000 £'000
Deferred income for group and Charity is further analysed as follows:
At 1 January 395 380
Utilised in year (395) (380)
Accrued during the year 384 395
At 31 December 384 395
Deferred income comprises amounts received in advance in respect of events which had not taken place by the balance
sheet date.
16 Called up share capital 2021 2020
£'000 £'000
Group and Charity
Authorised:
25 million ordinary shares of £1 each 25,000 25,000
Allotted, issued and fully paid:
10 million ordinary shares of £1 each 10,000 10,000
Each ordinary share carries equal voting rights.
17 Reconciliation of movements in total group funds 2021 2020
£'000 £'000
Net (deficit) in funds for the year (1,777) (8,307)
Actuarial (loss)/gain on pension scheme (note 23) 9,347 (2,277)
Net change in total group's funds 7,570 (10,584)
Opening group's funds 247,651 258,235
Closing group's funds 255,221 247,651
18 Reconciliation of net movement in funds to net cash flow Group Group
from operating activities 2021 2020
£'000 £'000
Net group expenditure (1,777) (8,307)
Exceptional item impairment (470) 1,840
Depreciation charge 7,325 7,714
Write off work in progress not meeting capitalisation criteria 769
(Surplus)/deficit on disposal of fixed assets 40 53
Pension costs charged against operating profit 2,009 2,041
Cash contributions to pension scheme (3,286) (3,328)
Net interest on pension liabilities 226 327
Decrease/(increase) in debtors 3 2,322
Increase /(decrease) in creditors (473) (88)
Non operating costs creditors (49)
(Increase)/decrease in stock 21 (57)
Net cash used from operating activities 4,387 2,468
----- End of picture text -----

44

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |19|Capital commitments|Group|Group|Charity|Charity| |2021|2020|2021|2020| |£'000|£'000|£'000|£'000| |Capital expenditure authorised by the Charity's trustees| |and OHL's director and contracted for|873|385|855|385|

----- End of picture text -----

20 Related party transactions and ultimate parent company

The Charity is owned solely by The Church of Jesus Christ of Latter day Saints (the parent company and controlling party), a company incorporated in the state of Utah, United States of America. Assurances of continued financial support have been received from The Church of Jesus Christ of Latter day Saints.

Total grant income received from the parent company in 2021 was £9,201,000 (2020: £4,801,000). On 31 December 2021, the Charity made a donation from its restricted funds of £6,757,000 to CHC in its capacity as a charitable corporation and a member of the Company. The donation will be used solely for charitable purposes and will facilitate the provision of funds for countries with the greatest need.

During the year the Charity received a donation of £2,300,000 from Covent Garden IP Limited ("CGIP"). CGIP is owned by Property Reserve Inc, a Utah non profit corporation ("PRI"). One of the trustees and officers of PRI is also an authorised agent of CHC consequently CGIP is treated as a related party in this report and financial statements.

The Charity has the use of 2,033 square meters of space on the site of the Paris Temple in Le Chesnay, France which is owned by The French Association of The Church of Jesus Christ of Latter day Saints. The facilities are provided free of charge. The estimated market value of this arrangement is £400,000 per annum.

During the year a further £650,000 was advanced to OHL to increase the unsecured loan facility to £13.39m (2020: £12.74m) granted by the Charity to OHL to fund OHL's operations. The loan facility and drawdowns thereof are deemed to occur at arm's length. A provision for impairment of the OHL loan notes was made to reduce the receivable to equal the value of OHL's asset, being the amount expected to be available for settlement of the loans as at 31 December 2021.

21 Commitments under non cancellable operating leases

At 31 December 2021, the Charity had future minimum rentals payable under non cancellable operating leases for the lease of buildings used for worship purposes and also as housing for missionaries.

----- Start of picture text -----
|||| |---|---|---| |These are set out below:|Reclassified| |2021|2020| |£'000|£'000| |Less than one year|1,478|1,438| |Two to five years|1,527|1,518| |More than five years|4,494|4,663|

----- End of picture text -----

OHL has not entered into non cancellable operating lease arrangements.

45

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

22 Pension and other post employment commitments

The Church of Jesus Christ of Latter day Saints is the sponsoring employer of a funded defined benefit pension scheme in the UK, which provides retirement benefits based on members' salary when leaving employment. The scheme was closed to new entrants on 31 December 2012.

The assets of the Plan are held in a separately administered fund and the Plan is administered by a trustee body (independent of The Church of Jesus Christ of Latter day Saints) who are responsible for ensuring that the Plan is sufficiently funded to meet current and future obligations. The liabilities set out in this note have been calculated based on the results of the full Scheme Funding Assessment as at 31 December 2019, updated to 31 December 2021, allowing for additional benefit accrual and benefits paid. The present value of the defined benefit obligation is measured using the projected unit credit method.

The Church of Jesus Christ of Latter day Saints has agreed a funding plan with the trustee body, whereby ordinary contributions are made into the Plan based on a percentage of active employees' salary. Additional contributions have been agreed with the trustee to reduce any funding deficit where necessary. The projected pension expense for the year ending 31 December 2021 is expected to be approximately £1,929,000.

The disclosures set out below are based on calculations carried out as at 31 December 2021 by an independent qualified actuary.

Principal assumptions At 31 December 2021 At 31 December 2020
per annum per annum
Discount rate 1.85% 1.25%
Aggregate long
term expected rate of return on assets (net of expenses)		 1.85% 1.25%
Retail Prices Index (RPI) Inflation 3.40% 3.05%
Consumer Prices Index (CPI) Inflation 2.70% 2.30%
Future increases in deferred pensions 2.70% 2.30%
Rate of increase in salaries 2.70% 2.30%
Rate of increase to pensions in payment:
LPI (max 2.5%) based on RPI 2.25% 2.15%
LPI (max 3%) based on RPI 2.60% 2.45%
LPI (max 5%) based on RPI 3.30% 3.00%
Mortality assumptions (before and after retirement) 100% of S3PA 95% of S3PxA
CMI 2020 with a long term CMI 2019 with a long term
improvement rate of 1.25% pa improvement rate of 1.25% pa
and initial addition of 0.5% pa and initial addition of 0.5% pa
Cash commutation 80% HMRC maximum on current terms
Future life expectancy:
Male aged 65 at balance sheet date 22.1 22.7
Male achieving age 65, 20 years after balance sheet date 23.3 24.0
Female aged 65 at balance sheet date 24.5 24.9
Female achieving age 65, 20 years after balance sheet date 25.9 26.4

The financial assumptions shown are illustrative single equivalent rates that lead to the same value being placed on the liabilities as that obtained when using whole curves. The single equivalent CPI assumption shown is based on an average CPI wedge of 0.70% pa as at 31 December 2021 across all durations (i.e. both before and after 2030).

46

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

22 Pension and other post employment commitments (continued)

Asset breakdown

Asset breakdown
The major categories of scheme assets as a percentage of total scheme assets are
At 31 December 2021
Diversified growth funds
65.6%
Liability driven investment
33.5%
Insured pensions
0.1%
Net current assets
0.8%		 At 31 December 2020
63.0%
36.0%
0.1%
0.9%
100.0% 100.0%

The pension scheme has not invested in any of The Church of Jesus Christ of Latter day Saints' own financial instruments, nor in properties or other assets used by The Church of Jesus Christ of Latter day Saints. The assets are all quoted in an active market with the exception of the insured pensions.

Net defined benefit liability
Fair value of Scheme assets
Present value of defined benefit obligation		 At 31 December 2021
At 31 December 2020
£000
£000
78,309
75,202
87,635
94,926
Defined benefit liability recognised in balance sheet 9,326
19,724
Total expense recognised in SOFA
Current service cost
Administration expenses
Past service costs including curtailments
Effect of settlements		 At 31 December 2021
At 31 December 2020
£000
£000
1,759
1,795
250
164
82
Recognised in arriving at operating profit
Net interest on the net defined benefit liability		 2,009
2,041
226
327
Total recognised in SOFA 2,235
2,368
Total amounts taken to other recognised gains/(losses)
Actual return on scheme assets
gains
Less amounts included in net interest on the net defined benefit liability		 At 31 December 2021
At 31 December 2020
£000
£000
2,594
5,875
(942)
(1,341)
Remeasurement
gains
return on scheme assets
excluding interest income
Remeasurement gains/losses
actuarial gains/(losses)		 1,652
4,534
7,695
(6,811)
Remeasurement gain/(loss) recognised in other recognised gains/(losses) 9,347
(2,277)

47

THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS (GREAT BRITAIN)

Notes to the financial statements (continued) for the year ended 31 December 2021

22 Pension and other post employment commitments (continued)

Changes in the present value of the defined benefit obligation

Changes in the present value of the defined benefit obligation
Present value of defined benefit obligation at beginning of period
Benefits paid including expenses
Current service cost
Administration costs
Interest cost
Remeasurement gains/losses
actuarial gains/(losses)
Employee contributions
Past service costs including curtailments		 At 31 December 2021
At 31 December 2020
£000
£000
94,926
86,636
(2,977)
(2,460)
1,759
1,795
250
164
1,168
1,668
(7,695)
6,811
204
230
82
Present value of defined benefit obligation at end of period 87,635
94,926
Changes in the fair value of assets
Fair value of Scheme assets at beginning of period
Interest income
Remeasurement gains and (losses)/
return on scheme assets excluding interest income
Contributions by employer
Employee contributions
Benefits paid including expenses		 At 31 December 2021
At 31 December 2020
£000
£000
75,202
68,229
942
1,341
1,652
4,534
3,286
3,328
204
230
(2,977)
(2,460)
Fair value of Scheme assets at end of period 78,309
75,202

23 Controlling party

The Charity is owned solely by The Church of Jesus Christ of Latter day Saints (the parent company and controlling party), a company incorporated in the state of Utah, United States of America.

48