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2020-09-30-accounts

ELIM FOURSQUARE GOSPEL ALLIANCE

CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

PAGE
INDEX
Legal and administrative details 2 - 4
Report of the trustees 5 - 17
Report of the independent auditors 18 - 20
Accounting policies 21 - 24
Consolidated statement of financial activities 25
Statement of financial activities – Charity only 26
Consolidated balance sheet 27
Charity balance sheet 28
Consolidated cash flow statement 29
Notes to the financial statements 30 - 42

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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LEGAL AND ADMINISTRATIVE DETAILS

Charity registration

England and Wales 251549 Scotland SCO37754

Registered Office

De Walden Rd West Malvern Worcestershire WR14 4DF

Property Trustee

The Elim Trust Corporation

Directors of the Elim Trust Corporation

Rev S Blount Rev C P Cartwright (Chairman) Rev D De Souza Rev J J Glass Rev E Michael Rev K M Peat

Rev D Campbell Rev D Clark Rev C W Dye Rev A P Hudson Rev R Millar Rev S Ball

National Leadership Team and Trustees

Rev S Blount Rev C P Cartwright (Chairman) Rev D De Souza Rev J J Glass Rev E Michael Rev S Ball

Rev D Campbell Rev D Clark Rev C W Dye Rev A P Hudson Rev K M Peat - resigned 30 September 2020

Principal Officers

General Superintendent Rev Chris Cartwright Director of Ministry Rev Stuart Blount International Missions Director Rev Iain Hesketh Irish Superintendent Rev Edwin Michael Director of Training Rev David Newton Evangelism Director Rev Gary Gibbs National Director of Youth Ministries Rev Tim Alford Executive Director Rev Olivia Amartey National Administrator Rev Sarah Bale Finance Director Rev Robert Millar

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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LEGAL AND ADMINISTRATIVE DETAILS

Bankers

Lloyds Bank Plc 130 High Street CHELTENHAM Gloucestershire GL50 1EW

RBS / National Westminster Bank Plc 31 Promenade CHELTENHAM Gloucestershire GL50 1LH

Solicitors

Anthony Collins Solicitors LLP 134 Edmund St Birmingham B3 2ES

Bates Wells & Braithwaite 2-6 Cannon Street London EC4M 6YH

Auditors

Moore Kingston Smith LLP Chartered Accountants and Business Advisors Devonshire House 60 Goswell Rd London EC1M 7AD

Other advisers

Pension Fund Solicitors Pension Fund Administrators Pension Fund Actuary Maria C. Riccio Spence & Partners Limited Richard Smith Setfords Solicitors Linen Loft Spence & Partners Limited Jenner House 27-37 Adelaide Street 46 New Broad Street 1a Jenner Road Belfast London Guildford BT2 8FE EC2M 1JH GU1 3PH

Solicitors in Scotland Solicitors in Northern Ireland Beveridge Philip & Ross Cunningham and Dickey 22 Bernard St 18 May Street Leith BELFAST EDINBURGH County Antrim EH6 6PS BT1 4NL

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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TRUSTEES REPORT

Constitution and legal status

The constitution of the Elim Foursquare Gospel Alliance (“the Alliance”) was established by a Deed Poll registered on 10 April 1934, as amended by Deeds of Variation dated 14 January 1942, 12 September 2007, 25 May 2016 and a Deed disclosing the Irish Constitution in 1942. The Alliance is a registered charity in England and Wales (charity registration number 251549) and in Scotland (SCO37754).

Objectives and policies

The overall objective of the Alliance is the “Propagation of the Gospel of Jesus Christ”. Each and every activity included in these financial statements represents our present endeavours to that end. Some of the means set out for the achievement of these objects are the training and sending out of Ministers and Evangelists, the establishment of Churches, the issue of Christian publications and the operation of community and social programs.

As a movement, our four main strategic priorities at the core of our DNA are:

MAKING DISCIPLES

To plant the gospel of Jesus Christ in a relevant way in individual lives. To establish one family of authentic people embedded in their communities to gather, recruit and equip a network of positive disciples with a shared confession that Jesus Christ is Lord and a personal commitment to advance the Kingdom and make more lifelong disciples.

PLANTING AND GROWING CHURCHES

To facilitate the Movement’s ever-increasing and effective planting of Elim churches worldwide, with fully trained church planters inspiring more people to plant churches, and increasing our positive impact in the communities we serve. Our mission is to resource ONE movement to be the best it can be at evangelism and church planting at a time when the church is more marginalised in our society that ever before

REACHING NATIONS

To be an international, disciple-making Movement with strategies for church-planting and leadership development in every nation. There is a stirring for Elim to deliver a global message of hope through our shared confession that Jesus Christ is Lord, and our personal commitment to nurture and grow His universal family where we are in our unique communities, towns and cities, in the UK and overseas. We work together to break down every barrier to minister to all people from all nations at local, national and international level

.

TRAINING AND DEVELOPING LEADERS

To train, develop and support leaders across the Elim Movement and beyond, seeking to develop servant leaders who are committed to working on behalf of others and have a positive contribution to make in wider community life . We aim to discover, develop and deploy generations of transformational leaders across Elim, who are willing to work collaboratively and united in the purpose of one movement and one mission

For more extensive details on our vision and performance relative to these we would encourage you to access the Elim website using the following link. https://www.elim.org.uk

Public Benefit

The Trustees have considered the Charity Commission’s guidelines on public benefit and have reviewed the charity’s activities to ensure that they provide benefit to the public. In shaping and planning our activities the trustees always ensure that the programmes we undertake are in line with our main objective. We share with other Christian denominations a core belief in the gospel of Jesus Christ and in the personal transformation that results from believing in and following Him. Our churches and members are committed not just to speaking about Him but to demonstrating Christ’s love in practical action and service within their neighbourhoods and communities.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Values

Consistently MISSIONAL - intentional, adaptable, focused on Elim’s four main strategic priorities Courageous INTEGRITY - honest, trustworthy, consistent, discreet “Doing the right thing, even when nobody is watching.” C. S. Lewis Courteous SERVICE - politely passionate, humble, generous

Clear ACCOUNTABILITY - transparent stewardship, clear communication, excellent work ethic Creative TEAMWORK - innovative, ‘can do,’ collaborative

Branches, connected trusts and subsidiary companies

The following entities are connected with Elim Foursquare Gospel Alliance:

Name Country of Relationship Address Activity
Incorporation
Elim Church England & Common Elim Acts as an
Incorporated Wales Directors International association of
Centre churches to
De Walden Rd promote the
West Malvern Christian religion
WR14 4DF
Elim Trust England & Common Elim Elim Trust
Corporation Wales Directors / International Corporation acts as
Trustee Centre a Property Trustee
De Walden Rd for Elim
West Malvern Foursquare Gospel
WR14 4DF Alliance.
Elim Pentecostal Northern Common Elim Corporate Trustee for certain
Alliance Council Ireland Directors / Office properties in
Trustee 14 Charleston Northern Ireland
Ave
Portadown
N Ireland
BT63 5ZF
EPC Services England & Wholly owned Elim Carries out any
Limited Wales subsidiary International trading aspect of
Centre the Alliance with
De Walden Rd the major activity
West Malvern being the Elim
WR14 4DF Leadership Summit

A list of addresses and contacts for local churches is available from the Registered Office of the Alliance, or from the Charity website at www.elim.org.uk. This list includes details of churches associated through the Elim Church Incorporated (see above table).

Local churches are branches set up to conduct the business of the main charity in fulfilling its objectives.

Investments / management of resources

As the major demand for the Alliance is for property the majority of resources are applied toward the acquisition and capital renovation programs on church buildings and manses for our ministers. Surplus funds across the charity will be invested internally via Elim Loans Administration towards these capital projects.

Agreement has been reached with the main bankers to the effect that an allowance is made on the credit balances held in current accounts which is then applied towards subsidising bank charges levied on church accounts.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Reserves Policy

The Reserves as at the 30 September 2020 are detailed on the Balance Sheet on page 26.

The Alliance continues to hold general reserves, of which a significant proportion relates to funds applied in the provision of fixed assets, as an essential resource to the accommodation of local church activities.

The general free reserves are maintained in order to secure the future operations of the charity, in recognition of the fact that its income mainly comes from voluntary sources, but also that 29% of income is generated by Ancillary programs. Historically voluntary income has been very stable due to the commitment of support from church members and friends. However, the trustees seek to provide for a potential impact of the cashless society and the ongoing development of alternative methods of receiving donations, including digital resources.

To maintain the basic level on current activities for a period between 3 and 6 months, and fulfil annual obligations on liabilities our immediate target for free reserves will be a range of £12m to £20m. As at the financial year end reserves increased by £8.55m (2019: deficit £6.3m).

To release free reserves a charge over Alliance properties has been granted to the Elim Ministers Pension Fund. This means that our free reserves as at the end of the financial year stand at £10.5m. It has been agreed that this contingent asset charge on will be increased to £23m (currently limited to £10m) as part of a revised Recovery Plan, and thereby relieve pressure on free reserves by a further £13m.

The impact of the Covid-19 pandemic and the statutory restrictions is apparent in the results presented in these statements. We have maintained our strategy to make available alternative options, mainly digital, so that our supporters can continue to make donations. Church ministry and activities have successfully transferred to virtual media and increased levels of direct, albeit remote communication which has actually seen an increase in community engagement. Our primary core income by way of gifts and offerings has been sustained at a level where cash reserves have increased over the lockdown period introduced in March 2020. Income from childcare programs and secondary income from hire of halls and events has been most seriously affected but offset by reductions in related costs and the very welcome support of the government’s Furlough Grant scheme.

Payment Policy

Payment to suppliers is generally made within the terms agreed on confirmation of order for goods or services.

Funding

The Trustees are satisfied that the charity’s assets attributable to each of its individual funds are available and adequate to fulfil its obligations in relation to those funds. While individual activities are generally constructed so as to be self-funding the Trustees reserve the right to allocate finance from general unrestricted funds where this is felt to be essential or beneficial towards the fulfilment of our objectives.

Communication and Involvement of Members

The Alliance has continued its practice of maintaining communication to churches and their ministers and officers on matters affecting them in fulfilment of their roles, and financial and statutory factors impacting the Movement as a charity. This has escalated considerably since the commencement of lockdown, including many online events, workshops and seminars to provide encouragement and practical guidance.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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The publication of Direction Magazine has been suspended due to Covid-19 restrictions imposed on the publishers.

The Conference Agenda includes annual reports from Alliance officers and departments together with the Financial Statements and copies are supplied to all ministers and church lay representatives. Members of Conference, individually or on behalf of their church, are able to add items to the agenda or raise comment on others, for discussion during the Conference sessions.

Our central website www.elim.org.uk is continually updated.

All the central departments publish their own site, as do most of our churches throughout the UK.

An online advice service ElimNET, is maintained which focuses on administrative information and guidance for church leaders and officers, covering a wide range of topics including taxation, Health and Safety, and Gift Aid procedures. Much of the information is available for download in PDF format. The national ministry departments also use the site to disseminate resources and communicate policy.

The General Superintendent maintains regular communications on major issues to ministers, church elders, and members.

Annual reviews on administrative matters are issued to finance officers and church administrators.

The Alliance has 10 Regions across the UK. Each is supervised by a Regional Leader / Superintendent, and has a co-ordinating committee made up of ministers and individuals from churches in that region. These regions have established their own local communications programs.

The activities of the Alliance would be impossible without the willing and generous participation of its members and friends. It would be impossible to number those involved, but research has shown that at least 60% of members will be directly involved in regularly sharing responsibilities in the activities of the Church. We would place on record our wholehearted appreciation for this ongoing support and look forward with our members to enjoying the fruit of their labours.

GOVERNANCE

Conference: The legislative body is the Conference, which meets at least annually and is comprised of a Representative and a Ministerial Session. The Representative Session consists of all ministers, and lay representatives appointed by the Churches. The Ministerial Session, which consists of ministers only, deals with all ministerial and pastoral subjects. All other matters, including the making of General Rules and Working Arrangements, are exclusively within the province of the Representative Session.

National Leadership Team : The members of the National Leadership Team listed on page 2 are the Trustees of the Alliance and served throughout the year unless a termination of office or appointment date has been reported.

The National Leadership Team (NLT) is appointed from among members of the Conference. The General Superintendent is nominated by the NLT of the day and submitted to Conference for a confirmatory vote. The individual so appointed serves for four years but is eligible for re-election. The General Superintendent nominates the members of the NLT on a rotational basis and these nominees are again subject to a confirmatory vote of the Conference, and successful candidates serve for four years. All the Ministers, and Lay Representatives from each Church, have votes in the election, which is conducted by postal ballot. The NLT meet at least five times per annum and are responsible for ensuring that procedures and working arrangements of the Constitution are applied in the activities of the Alliance and in the course of administration of the affairs of the Alliance. On appointment any new trustee is required to undergo an induction program to ensure awareness of responsibilities and current issues and circumstances, including sessions with charity executives and officers. Each year trustees are provided with ongoing training including input on statutory and regulatory developments from professional advisors.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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During the early stages of the Covid-19 lockdown the NLT met weekly, but are now meeting on a monthly basis.

The Elim Trust Corporation , a company limited by guarantee, was legally constituted to serve as a trustee for the Alliance in matters of property and business. A few properties are still held in trust for the Alliance by local trustees under the terms of a Model Trust Deed, and a further few properties are held under the auspices of the Elim Pentecostal Alliance Council. Most of these properties have been transferred under the auspices of the Elim Trust Corporation, and the process will continue for the remainder. The members of the National Leadership Team listed on page 2 and the Finance Director are the directors and served throughout the year unless a termination of office or appointment date has been reported. The Executive Director serves as Company Secretary

Officers and Committees, accountable to the NLT, are also appointed to ensure and assist with the smooth running of the charity.

Management Board: This body is constituted by Conference and consists of the three members of the National Leadership Team, the Executive Director, the Administrator, the Finance Director and a minimum of three Lay appointments approved by the National Leadership Team. The Board is responsible for supervision and monitoring the management and application of the charity’s assets. Currently the role of this board is under review with proposals being considered to introduce separate Finance Board and Property Board. This will provide opportunity to engage more of the skills and expertise from the lay-persons of the Alliance and bring further focus and clarity to various aspects of management and strategy of the Charity’s finance and assets.

Audit & Governance Committee: This committee operates under guidelines established by the Financial Reporting Council (FRC). Members are appointed by the National Leadership Team, to whom they will seek to provide guidance and assurance on processes relative to management of corporate risk and governance.

Regions: These are comprised of groups of churches. A Regional Leader supervises two regions, with the support in each of a Regional Co-ordinator and Regional Committee. The Committee consists of the Regional Co-ordinator, four co-optees and four members appointed from within the region.

Church Leadership Teams: Responsible for the administration and management of the local Churches, general purposes, finances and personnel. Capital projects and expenditure require the approval of the NLT / Management Board. Appointments to the Church Session and appointments of church officers are governed by the local Church Constitution.

Salary Committee : Salaries for the General Superintendent and Regional Leaders are reviewed and set by the Salary Committee, which currently consists of the lay-men serving on the Management Board. The NLT are responsible managing the salary payments for executive officers and heads of national departments. The Salary Committee also participate in reviews and recommendations on remuneration level for those serving as ministers in Elim churches and the relevant pensionable salary scales.

Remuneration of Trustees and related Parties

No salary is paid for holding position as a member of the NLT and therefore ex officio as a trustee of the Alliance. Since qualification for appointment requires that candidates must be credentialed ministers and serving in full time roles all the individuals will be in receipt of payment of remuneration solely related to that function and not as trustees. In line with SORP requirements we have included details of those payments in the schedule below.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I		 Summary of Salaried roles held by Trustees
2020
2020
2020
2019
2019
2019
Name
Salary
Employers
Pension
Salary
Employers
Pension
N.I
N.I
2020 2020
Name Salary Employers Position salaried
N.I
Chris Cartwright 83,567 10,331 5,564 86,023 10,673 5,382 Chris serves as General
Superintendent, the most senior full
time position in Elim, and global
leader of the charity
Stuart Blount 64,076 7,641 5,184 64,115 10,673 5,382 Stuart is serving as national
Director of Ministry
David Campbell 64,076 7,475 5,184 62,819 7,327 6,384 Serves as Regional Leader for the
Metropolitan East and West Regions
Duncan Clark 58,500 - 5,184 53,172 - 5,184 Serves as Senior Minister of our
church at Coventry
Colin Dye 98,216 - - 98,216 - - Serves as Senior Minister of our
largest church, Kensington Temple in
London and also as Regional Leader
of the London City Region
James Glass 39,766 - 5,184 39,766 - 5,184 Serves as Senior Minister of our
church in Glasgow
Kevin Peat 64,076 7,641 5,184 62,819 7,492 5,184 Serves as Regional Leader for
Scotland and North West Regions
Edwin Michael 48,388 - 5,184 53,996 - 5,184 Serves as Superintendent of Elim
Ireland.
Paul Hudson 65,293 7,809 5,184 64,013 7,327 5,184 Serves as Regional Leader for
Midlands and North East Regions
Dominic De Souza 49,085 - 5,184 49,085 - 5,184 Serves as Senior minister at City
church Cardiff
Steve Ball 64,074 7,641 5,013 52,348 6,241 4,168 Serves as Regional Leader for the
Wales and Southern and South West
Regions
699,115 48,538 52,049 686,372 49,733 52,420
Totalper note 8 to the accounts 799,702 788,525

Summary of Salaried roles held by Trustees

Name 2019
Salary		 2019
Employers
N.I		 2019

Pension		 2018 2018 2018 2018
Salary Employers Pension
N.I
Chris Cartwright 86,023 10,673 5,382 85,283 10,625 5,184 Chris serves as General
Superintendent, the most senior full
time position in Elim, and global
leader of the charity

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Stuart Blount 64,115 10,673 5,382 62,404 7,468 5,184 Stuart is serving as national Director
of Ministry
David Campbell 62,819 7,327 6,384 61,705 7,302 5,884 Serves as Regional Leader for the
Metropolitan East and West Regions
Duncan Clark 53,172 - 5,184 51,564 5,184 Serves as Senior Minister of our
church at Coventry
Colin Dye 98,216 - 98,216 Serves as Senior Minister of our
largest church, Kensington Temple in
London and also as Regional Leader
of the London CityRegion
Simon Foster - -
-		 66,639 7,640 5,184 Srves as a minister at Kensington
Temple since October 2018
James Glass 39,766 - 5,184 39,766 5,184 Serves as Senior Minister of our
church in Glasgow
Gordon Neale - -
-		 25,465 2,757 18,000 Served as Regional Leader for the
Midlands and North East Regions.
Ceased to be a trustee in May 2018
Kevin Peat 62,819 7,492 5,184 62,405 7,468 5,184 Serves as Regional Leader for
Scotland and North West Regions
Edwin Michael 53,996 - 5,184 53,996 5,184 Serves as Superintendent of Elim
Ireland. Appointed as trustee I May
2018
Paul Hudson 64,013 7,327 5,184 21,338 2,557 1,296 Served as International Missions
Director until May 2018. Now serves
as Regional leader. Appointed as
trustee in May2018
Dominic De Souza 49,085 - 5,184 14,700 Serves as Senior minister at Cardiff
Cty Temple church. Appointed as
Trustee May 2018
Steve Ball 52,348 6,241 4,168
Mark Pugh - - - 40,664 3,456 Serves as Senior Minister of or
church in Exeter. Ceased to be a
Trustee in May 2018
686,372 49,733 52,420 684,144 45,816 64,924
Total per note 8 to the
accounts		 788,525 794,884

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Similarly, the following table provides details for parties related to trustees.

Trustee - related Parties 2020 2019
Name Salary Salary Position salaried
Amanda Dye 50,000 50,000 Full time senior administration and ministry
role in the church at Kensington Temple,
London
Amanda Campbell 10,980 11,040 Part-time role as leader of Lifelink w ithin
the Elim International Missions department.
Beryl Glass 6,206 6,206 Part-time administrative role in the church
in Glasgow since 2011, prior to her
husband becoming a trustee. Ordained
as a minister in November 2020.
Margaret Michael 5,529 5,485 Part-time administration in Elim Ireland
office
Catherine De Souza 26,178 26,178 Minister at CityChurch,Cardiff
Margaret Peat 7,800 7,800 Part-time administrative and support role
for Scotland and North West Regions
Totalper note 8 to the accounts 106,694 106,710

Disabled employees

Applications for employment by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with the charity may continue. It is the policy of the charity that training, career development and promotion opportunities should be available to all employees.

Risk Management

The trustees recognise that the scope of our ministry and activity brings considerable responsibility and take seriously the need to ensure that the testimony of the Alliance is maintained at a high level. The executive officers together with the Audit and Governance Committee are commissioned to a perennial review of risk elements to ensure that the major risks have been identified and the relevant processes are in place to manage those risks as far as humanly possible.

Safeguarding:

Safeguarding the employees, volunteers and the vulnerable in our churches, activities and within the communities in which we work, both here and overseas is of paramount importance and reflects the nature of Jesus Christ.

To ensure that safeguarding is fully supported and maintained policies and procedures have been developed and presented so as to be accessible and understood by all those that have a legitimate interest in the welfare of our children, young people and vulnerable adults. Our formal activities will be operated in line with this policy and support at a regional and national level will always be available to ensure effective, sensitive and robust implementation. The policy and guidelines are published on ElimNET with the latest review conducted in April 2020.

Financial Management:

We are mindful of the trust assigned to us when church members and friends commit to support us financially. It is important that we do not jeopardise our main source of income through voluntary donations and maintain a solid case for support. Financial protocols and disciplines have been well established, and performance at all levels is a specific matter of verification during annual audit process. Discipline in process is critical in maintaining the high integrity levels which are foundational to encouraging the trust of our supporters.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Elim is registered to the anti-fraud campaign with CFG. Fraud prevention videos have been obtained from our bankers and made available on ElimNET to all church leaders.

Our biggest challenge is the development of the digital banking facilities and the threat to the “Cheque” which is still the major means of donation. For the last few years we have been developing alternative resources including direct debit arrangements, text donation and mobile banking apps.

The management of the Central Funds is based on a comprehensive budget reviewed annual by the NLT and churches are encouraged to operate on similar principles.

Expenditure on major capital projects across the Alliance is previewed for approval by the Management Board. Applications are submitted as a formal business plan containing full details of the context, concept and costs of the proposed project.

During the year in league with the Audit and Governance Committee we have continued our assessment of governance structures and management processes. This has included a review of the role and responsibilities of the Management Board which provides excellent service in operational matters relative to Elim’s property assets and capital projects. However, it has become clearer that we have a need for a forum with a more specific focus on top level financial management and strategy. Consequently, a transition team has been established to develop proposals on a formal structure for a Finance Board to serve the Alliance and the NLT as trustees in such matters. It is anticipated that such proposals will be presented to the 2021 Conference.

Property Ownership

As Elim is a single entity charity it has exposure and responsibility across a wide spectrum of compliance requirements related to property ownership. Detailed policies with relevant operational guidance are provided on ElimNET and reviewed by the Management Board. During this year the Board reviewed and published an updated version of the Property Handbook, including guidance on application for approval on major projects. Major property projects require approval from this Board, who consider implications on condition, structure, planning as well as finances. Health and Safety risk assessment policies and guidance is provided to all the churches and monitored and updated by the Elim Administrator. Elim has negotiated insurance cover which addresses all areas of liability and protection for its assets.

Data Protection

Elim has a Data Management Department to more specifically address and review the processes for handling information across the wide spectrum of charity activity. Established practices and protocols are reviewed to strengthen compliance with improved understanding of the evolving legislation. The Privacy Policy is published on our main central website.

General

Alongside these major areas of sensitivity, which have potential subsequential financial risk Elim continues to monitor all operation protocols and processes. Seeking to ensure best practice across the many aspects of national and international ministry, we maintain a framework to receive and provide support including the following:

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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Grant Policy

No donations were made to political organisations. Grants to external bodies are only made to those organisations and activities which are compatible with our charitable objectives. Grants to individuals are in keeping with the parameters of the relevant fund and restricted to those participating in ministry within the Alliance activities, or to alleviate poverty or hardship circumstances. Other national or central funds have been established from which grants are made to Elim churches towards the furtherance or maintenance of their activities.

Policy on funding of overseas activities

The Alliance maintains support for ministry and community projects overseas, both through its central Elim International Missions department and from local church resources. Many of the mission fields have now been developed and established with local indigenous government, operating under the statutory requirements of their national laws and regulations. The administration and application of the funds has therefore been placed in the hands of national leaders. Funding made available to other charities in respect of relief work etc is donated as restricted funds to the receiving charity. Such receiving charities are vetted by the International Missions Department and subject to approval by the National Leadership Team.

Payments can only be made to subsequently approved organisations and individuals, with all funds to third parties overseas being processed through the offices of the International Missions and subject to internal audit procedures.

Subsidiaries

EPC Services Ltd exists to provide for the administration of those central commercial activities which have been classified as trading and therefore subject to tax and VAT. Elim Leadership Summit is the major operation under its governance.

Fundraising Policy

The majority of our funds arise from voluntary donations received in the form of freewill church offerings including Gift aid donations. In recent years we have been very conscious of the growth of the “cashless society” and the “disappearing chequebook”. We seek to provide viable alternative opportunities for members and supporters to continue with their contributions. These are mainly in the form of online digital options which enable direct donations via church websites, Paythru mobile text giving and the new app-based donor resource from GIVT. While we seek to facilitate our donors with these options we do not promote them via any direct marketing activity. As a result of Covid-19 lockdown restrictions we have seen a substantial increase in the use of these digital options and anticipate that many donors will continue to access these facilities following a return to a more normal lifestyle

Elim is a member of the Institute of Fundraising and registered with the Fundraising Regulator, receiving monthly reports relative to any complaints – no complaints were reported last year nor received at our central denominational offices in Malvern.

Legacy Elim is a low cost will writing scheme promoted via local churches and administered by as a confidential independent advice service to members by Frodsham solicitors.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

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FINANCE DIRECTOR’S REPORT - REVIEW OF THE YEAR

At the time of writing we have reached the first anniversary of the initial Covd-19 lockdown. We recognise that 2020 2018 the biggest impact of the pandemic has been at a very personal and human level across the globe. It is as a result of that primary experience that many activities including church life also had to adapt their operations to Admin function in a very unprecedented environment.

It has been so encouraging to see how Elim at every level responded and reacted. We have our own “heroes” Personnel and epic stories reflecting initiative and creativity in all areas of ministry, outreach, support and care in Premises p 47p communities across the nation. Under the direction of the National Leadership Team, a process was quickly established to disseminate advice and practical resources to enable churches to respond to a very new and Ministry & challenging environment. No Minister or National officers were furloughed. Together with their churches, and Community departments Elim responded magnificently. 21p

General church activity was “virtualised” using online media to maintain programs for ministry, prayer, group meetings and youth and children’s work. Foodbank ministry expanded to meet a rapid increase in demand.

We have seen, and continue to see, online national events for evangelism, youth, prayer, administration and even our annual Conference!

In common with the rest of the economy we expected considerable impact on general operational finance particularly on gifts and offerings.

However, we are grateful that so many of our supporters responded so quickly to our promotion of alternative methods for making their donations. For many churches, income has been maintained by an increased use of digital donation options, namely Paythru Text giving and GIVT, a new app based facility. A number have also benefited from a rise in members registering Standing Orders to the church.

Since adopting digital donation facilities some churches have even reported an increase in gift income.

Overall charity income for the year of £65.9m (2019: £70.9m) reflected a reduction of 7% on the previous year.

Note 1 from the Financial Statements (reproduced below) confirms a reduction of only 1.3% in Voluntary Income including grants.

The main areas of struggle were for those activities which did rely on access to premises. Due to lockdown restrictions most community programs such as nurseries, other childcare, luncheon clubs etc were unable to function. The same applied to many external community projects which hired church premises. Centrally at

14

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

Malvern, our major losses are reflected In the loss of a full summer season income for the Conference Centre and the cancellation of ELS2020 and Limitless Festival

This reduction in Ancillary Income is defined in Note 2 from the Financial statements. The loss of income for these activities was almost 20%. the only activities able to maintain income levels were the Nursing Homes in Ireland, which remained fully functional throughout the period, and the support for the Foodbank ministries. Please remember these losses mainly arose during the second half of the year.

Total Total
2020 2019
2. Income from ancillary programs
Hire of premises+ 2,413,782 3,192,782
Church Seminars etc 1,283,435 2,149,518
Ministry and Skills training 1,841,480 2,316,667
Coffee shops 296,338 606,760
Bookrooms 93,296 139,971
Charity shops 470,433 487,544
Foodbanks 400,697
Community Programs 1,385,173 2,032,323
Childcare programs 5,213,464 6,744,914
Nursing Homes 3,419,202 3,196,403
Other ancillary activities 81,324 187,782
16,898,623 21,054,662

Overall expenditure at £61.7m (2019: £67.7m) - a 9% reduction on the previous year

This still reflects a commitment level at 94% of total income is applied towards our charitable objective to spread the Good News of Jesus in word and deed.

6a Summary by Costs

Personnel costs 33,662,600.00 UK Events and ministry programs 5,150,876.86 UK ancillary and community programs 2,687,972.62 Overseas ministry 1,544,876.00 Training and development 246,248.20 Literature and material 178,593.78 Premises costs 7,815,442.04 Utilities costs 1,766,652.85 Equipment costs 1,735,322.81 Office and administration costs 1,404,751.54 Grants Made 2,293,789.79 Governance costs 1,387,085.00 Interest Costs 2,396,066.00

15

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

Summary by Activity
Church Activity 45,048,805
evangelism 839,298
youth 1,342,967
Missions 2,049,901
training 2,239,245
Ancillary 10,732,062
62,252,278

At the end of the year Elim had 1545 (2019: 1859) people on the payroll. We also confirm our deep gratitude to the thousands of individuals throughout the movement who volunteer and help deliver a wide range of service, particularly during the present difficulties. Please see note 8 in the Statements

Staff roles Number Number
2020 2019
Church and ministry staff 600 617
Youth Ministry 106 113
Administration 297 298
Care-Nursing and childcare 252 429
Community Programs 153 238
Property Services 137 164
1,545 1,859

CONSOLIDATED BALANCE SHEET

The balance sheet continues to affirm the strength of the Alliance resides in its property assets. During the past year capital projects have been at a minimum, with only two major projects, but a number of churches have taken the opportunity to refurbish their buildings and update heating systems. We have also noted an increase in investment in new media equipment, no doubt required to help respond to the need to deliver online streaming of church services and programs.

The FRS valuation for Pension Fund liabilities has improved to £31m from the 2019 level of £35m. As we regularly comment, this value is calculated on parameters dictated by government statute. Our triennial actuarial valuation still proclaims a shortfall though at much lower level of £11.8m. Reports will be released later this year confirming the outcome of the review of the Recovery Plan, and impact on contributions, benefit levels and additional security comfort from the Alliance and associated employers.

16

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

The following balance sheet confirms the ongoing solidity of the Alliance but also the fact that we still have considerable liabilities on property loans and the pension fund which must continue to address.

Due to a positive performance on our annual operations and the improvement on the pension liability the overall Reserves have again improved.

The other major improvement on the balance sheet is clear from the increase in the balances held in Alliance bank accounts. Amazingly this increase has materialised since the beginning of the Covd-19 lockdown. the following graph confirms the growth in funds since that date which has continued into the new financial year. How good is our God and how faithful are His people.

Having to confront the unforeseen challenges presented by the Covid-19 impact has generated a humble gratitude and an inspired confidence in God’s enabling and the awesome army that has arisen within the Elim

17

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

fellowships. This is where the true strength and resources of Elim resides and from which so much will be accomplished in the days to come.

Trustees' responsibilities for the financial statements

Trustees’ Responsibilities Statement

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005, and the regulations made thereunder, requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of the resources, including the income and expenditure, of the charity and group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Trust Deed. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the 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.

Auditors

Moore Kingston Smith LLP, having indicated willingness to continue as auditors, will be retained serve as such for the new financial year.

Signed by order of the National Leadership Team

18

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

AUDITORS REPORT

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ELIM FOURSQUARE GOSPEL ALLIANCE

Opinion

We have audited the financial statements of Elim Foursquare Gospel Alliance for the year ended 30 September 2020 which comprise the Consolidated Statement of Financial Activities, the Charity only Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Cash Flow Statement, the Accounting Policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other

information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out above, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report to you in accordance with regulations made under those Acts.

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

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

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

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 charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees those matters which we are required to state to them in an auditor's report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and the charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Moore Kingston Smith LLP Statutory auditor

[Date] 17 May 2021

Devonshire House 60 Goswell Road London EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

21

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

ACCOUNTING POLICIES

BASIS OF PREPARATION

These financial statements have been prepared in accordance with the Constitution of the Alliance, applicable accounting standards, and recommendations in the Charities Act 2011 and the Statement of Recommended Practice: Accounting by Charities FRS102 (the SORP), the Financial Reporting Standard applicable in the UK and Republic of Ireland except as noted below.

They have been prepared under the historical cost convention as modified by the revaluation of investments to fair value, and on a going concern basis.

Elim Foursquare Gospel Alliance constitutes a public benefit entity as defined by FRS102.

BASIS OF CONSOLIDATION

The group financial statements consolidate those of the charity and its subsidiary undertakings drawn up to 30 September 2020. All intra-Alliance transactions and profits are eliminated on consolidation, unless indicative of an underlying impairment.

The results of the charity’s charitable trading income have been incorporated on the basis of the summary income and summary expenditure.

GOING CONCERN

The financial statements are prepared on a going concern basis, which assumes that the charity will continue as a going concern for the foreseeable future. As explained more fully in the Report of the Trustees, Church ministry and activities have successfully transferred to virtual media and increased levels of direct, albeit remote communication which has actually seen an increase in community engagement. By making available alternative options, mainly digital, income by way of gifts and offerings has been sustained at a level where cash reserves have increased over the lockdown period introduced in March 2020 and other income sources have been offset by reductions in related costs and by utilising the government’s Furlough Grant scheme. Based on this, together with the significant cash reserves held, the Trustees have concluded there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

BRANCHES

The financial statements of the charity incorporate those of all funds and branches which are governed by the terms of the Constitution of the Alliance.

INCOMING RESOURCES

Donations and gifts

All monetary donations and gifts are included in full in the statement of financial activities when receivable and there are no donor-imposed restrictions as to the timing of the related expenditure.

Legacies are included when probable and the value can be measured with sufficient reliability.

Gifts-in-kind are accounted for at the trustees’ estimate of value to the charity or sale value as follows:

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

Voluntary help is not included as income.

Cash collected to which the charity is legally entitled but which has not been received at the year-end is included as income.

Donations under Gift Aid are credited as income when the donations are received together with the associated income tax recoveries.

All income on trading activities is the total amount receivable by the Alliance in the ordinary course of business for goods supplied and for services provided, excluding VAT. All income is recognised when the services are performed.

Contributions re Capital projects

Donations and gifts to major building renovation and refurbishment programs are included on receipt and treated as restricted funds until applied for their specific purpose.

Grants receivable

Revenue grants are credited as incoming resources when they are receivable provided conditions for receipts have been complied with, unless they relate to a specified future period, in which case they are deferred.

Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable. Depreciation on the fixed assets purchased with such grants is charged against the restricted fund.

Investment income

Investment income is recognised when receivable.

RESOURCES EXPENDED

Expenditure which is charged on an accruals basis is allocated between:

FUND ACCOUNTING

Restricted funds are applied for specified purposes laid down by the donor. The restriction on these funds is fulfilled on application to their specific purpose, and the expenditure for those purposes is charged to the fund.

23

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

For Elim Relief Association 10% of income is allocated to the International Missions Fund in respect of overheads and support costs.

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity.

Designated funds are unrestricted funds which have been designated for specific purposes by the Trustees.

TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are stated at cost or valuation, net of depreciation. No depreciation is charged during the year of acquisition, or period of construction. Under the transitional arrangements of Financial Reporting Standard 102: Tangible Fixed Assets, the Alliance treated the revalued amount as the base cost and will not update the book value with subsequent valuations.

Website development costs are written off as incurred to the Statement of Financial Activities and not capitalised due to there being insufficient evidence on which to base reasonable estimates of the economic benefits that will be generated in the period or into the future.

Depreciation is calculated to write down the cost or valuation, less estimated residual value, of all tangible fixed assets held for charity use other than freehold land, by equal annual instalments over their expected useful lives.

The periods generally applicable are: Freehold properties 0.35% - 0.79% reducing balance from June 1999 on valuation, or on cost incurred from that date Leasehold properties Period of lease Fixtures, fittings and equipment 10 years

In accordance with FRS 102 assets in the course of construction are not depreciated. Depreciation will occur when assets in the course of construction are ready for use, being when the physical construction is complete.

INVESTMENT POLICY

Investments comprise those properties that are held solely for either their rental income and /or capital appreciation. They are carried at fair value. Any movement in fair value is recognised in the Statement of Financial Activities.

STOCKS

Stocks are stated at the lower of cost and net realisable value.

FOREIGN CURRENCIES

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Exchange differences are dealt with in the statement of financial activities.

BORROWINGS

Bank borrowings are stated net of issue costs. All attributable issue costs are amortised over the term of the loan.

Bank borrowings are secured by charges on certain properties of the Alliance as disclosed in note 15. The borrowings are included within long term loans except for the element that is due within 12 months which is separately disclosed on the face of the Balance Sheet.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2020

_______________

CONTRIBUTIONS TO PENSION FUNDS

Defined Benefit Scheme

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the charity, in separate trustee administered funds. Under FRS102 valuation Pension scheme assets are measured at fair values and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. This is a proscriptive valuation process determined by the Pensions Regulator purely for Employer Balance Sheet purposes. The FRS102 valuation for 2020 is £31.1m (2019: £35.4m).The main actuarial valuations for Trustee management are obtained at least triennially. These results however are not reported via the Balance Sheet for the Alliance. The latest triennial report for 3 years ended 31 December 2018 indicates a resulting pension shortfall of £11.8m, with a recovery plan targeted at 2035.

FINANCIAL INSTRUMENTS

The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from banks and other third parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

JUDGEMENTS AND ESTIMATES

The key judgements and estimates made by the charity management relate to the following:

  1. Depreciation on property assets

  2. Assumptions for the Defined Benefit Pension scheme

  3. The recoverability of Debtors

  4. Revaluation on Investment assets

25

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

Consolidated�Statement�of�Financial�Activities

incorporating�Income�and�Expenditure�Account

note
INCOMINGRESOURCES
Activitiesforgeneratingincome
VoluntaryIncome
1
Incomegeneratedbyancillaryprograms
2
Incomefromcharitableactivities
3
Investmentincome
4
OtherIncomeresources
5
Totalincomingresources
RESOURCESEXPENDED
Costsofraisingfunds
6
CharitableActivities
6a
SurplusofincomeoverExpenditure
Netincomingresourcesfortheyear
ActuarialGain(loss)onDefinedBenefitScheme
22
Fundbalancesat1October2019
Fundbalancesat30September2020		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2020
2020
2020
£
£
£
45,654,890
2,030,852
47,685,742
16,898,624
16,898,624
739,699
739,699
605,891
605,891
10,000
10,000
63,909,104
2,030,852
65,939,956
678,543
678,543
60,277,181
1,993,098
62,270,279
60,955,724
1,993,098
62,948,822
2,953,380
37,754
2,991,134
2,953,380
37,754
2,991,134
5,559,000
5,559,000
137,883,283
655,824
138,539,107
146,395,663
693,578
147,089,241		 Total
Funds
2019
£
48,268,737
21,054,664
700,908
605,891
239,450
70,869,650
731,441
66,970,944
67,702,385
3,167,265
3,167,265
(15,956,000)
151,327,842
138,539,107

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

25

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

Statement�of�Financial�Activities��-��CHARITY�ONLY incorporating�Income�and�Expenditure�Account

note
INCOMINGRESOURCES
Activitiesforgeneratingincome
VoluntaryIncome
1
Incomegeneratedbyancillaryprograms
2
Incomefromcharitableactivities
3
Investmentincome
4
OtherIncomeresources
5
Totalincomingresources
RESOURCESEXPENDED
Costsofraisingfunds
6
CharitableActivities
6a
SurplusofincomeoverExpenditure
InvestmentAssetrevaluation
Netincomingresourcesfortheyear
ActuarialLossonDefinedBenefitScheme
22
Fundbalancesat1October2019
Fundbalancesat30September2020		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2020
2020
2020
£
£
£
45,654,890
2,030,852
47,685,742
16,776,626
16,776,626
739,699
739,699
605,891
605,891
10,000
10,000
63,787,107
2,030,852
65,817,959
678,543
678,543
60,117,047
1,993,098
62,110,145
60,795,590
1,993,098
62,788,688
2,991,517
37,754
3,029,271
2,991,517
37,754
3,029,271
5,559,000
5,559,000
137,819,892
655,824
138,475,716
146,370,409
693,578
147,063,987		 Total
Funds
2019
£
48,268,737
21,054,664
700,908
605,891
239,450
70,869,650
731,441
66,692,292
67,423,733
3,169,909
3,169,909
(15,956,000)
151,261,807
138,475,716

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

26

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

CONSOLIDATED�BALANCE�SHEET�AS�AT�30�SEPTEMBER�2020

Unrestricted
Restricted
Total
Note
Funds
Funds
Funds
2020
2020
2020
FixedAssets
£
£
£
Tangiblefixedassets
9
191,014,315
191,014,315
Investments
9a
8,626,410
8,626,410
Longtermloansadvanced
12
2,126,152
2,126,152
201,766,877
201,766,877
CurrentAssets
Stocks
10
30,886
30,886
Debtors
11
2,668,432
2,668,432
Cashatbankandinhand
13
19,699,863
693,578
20,393,441
22,399,181
693,578
23,092,759
CurrentLiabilities
Creditors
14
1,530,690
1,530,690
Currentportiononlongtermloans
15
2,312,328
2,312,328
3,843,018
3,843,018
Netcurrentassets
18,556,163
693,578
19,249,741
Totalassetslesscurrentliabilities
220,323,040
693,578
221,016,618
Longtermloansreceivedandotherliabilities
15
42,866,377
42,866,377
Pensionobligations
31,061,000
31,061,000
146,395,663
693,578
147,089,241
Reserves
Generalreserves
31,621,053
31,621,053
Pensionreserve
(31,061,000)
(31,061,000)
Generalpropertyreserves
17
145,835,610
145,835,610
Restrictedfunds
16
693,578
693,578
146,395,663
693,578
147,089,241		 Total
Funds
2019
£
189,977,493
8,626,410
2,177,181
200,781,084
27,754
2,795,812
17,376,521
20,200,087
1,281,758
2,740,000
4,021,758
16,178,329
216,959,413
43,064,306
35,356,000
138,539,107
29,066,096
(35,356,000)
144,173,187
655,824
138,539,107

These�financial�statements�were�approved�by�the�National�Leadership�Team�on������������������������ 05/05/2021 and�signed�on�its�behalf�by�

The�accounting�policies�on�pages 11�to�14 and�the�notes�on�pages�18�to�24 form�part�of�these�financial�statements.

27

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

CHARITY�BALANCE�SHEET�AS�AT�30�SEPTEMBER�2020

Unrestricted
Restricted
Total
Note
Funds
Funds
Funds
2020
2020
2020
FixedAssets
£
£
£
Tangiblefixedassets
9
191,014,315
191,014,315
Investments
9a
8,626,410
8,626,410
Longtermloansadvanced
12
2,126,152
2,126,152
201,766,877
201,766,877
CurrentAssets
Stocks
10
14,264
14,264
Debtors
11
2,701,120
2,701,120
Cashatbankandinhand
13
19,651,188
693,578
20,344,766
22,366,572
693,578
23,060,150
CurrentLiabilities
Creditors
14
1,523,335
1,523,335
Currentportiononlongtermloans
15
2,312,328
2,312,328
3,835,663
3,835,663
Netcurrentassets
18,530,909
693,578
19,224,487
Totalassetslesscurrentliabilities
220,297,786
693,578
220,991,364
Longtermloansreceivedandotherliabilities
15
42,866,377
42,866,377
Pensionobligations
31,061,000
31,061,000
146,370,409
693,578
147,063,987
Reserves
Generalreserves
31,595,799
31,595,799
lessPensionreserve
(31,061,000)
(31,061,000)
Generalpropertyreserves
17
145,835,610
145,835,610
Restrictedfunds
16
693,578
693,578
146,370,409
693,578
147,063,987		 Total
Funds
2019
£
189,977,493
8,626,410
2,177,181
200,781,083
15,853
2,770,052
17,344,656
20,130,561
1,275,623
2,740,000
4,015,623
16,114,938
216,896,022
43,064,306
35,356,000
138,475,716
29,002,705
(35,356,000)
144,173,187
655,824
138,475,716

These�financial�statements�were�approved�by�the�National�Leadership�Team�on������������������������ 05/05/2021 and�signed�on�its�behalf�by�

The�accounting�policies�on�pages 11�to�14 and�the�notes�on�pages�18�to�24 form�part�of�these�financial�statements.

28

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

CONSOLIDATED�CASH�FLOW�STATEMENT�

Netcashinflowfromoperatingactivities
Adjustmentsfor:
Depreciation
Interestreceived
Interestpaid
Movementinstock
Movementindebtors
Movementincreditors
NoncashmovementreDefinedBenefitPensionScheme
Profitondisposaloffixedassets
Netcashfromoperatingactivities
CashFlowsfrominvestingactivities:
PurchaseofProperty,plantandequipment
SaleofProperty,plantandequipment
Interestreceived
(LoansAdvanced)Repaymentofloansadvanced
Cashflowsfromfinancingactivities
Movementinloans
Interestpaid
Changeincashandcashequivalentsinthereportingperiod
Cashandcashequivalentsatthebeginningofthereportingperiod
Cashandcashequivalentsattheendofthereportingperiod		 2020
2,991,134
1,523,709
(479,035)
2,396,067
(3,133)
127,380
248,932
1,264,000
(10,000)
8,059,054
(2,645,166)
94,635
479,035
51,029
(2,020,467)
(625,601)
(2,396,066)
(3,021,667)
3,016,920
17,376,521
20,393,441		 2019
3,167,265
1,483,869
(457,034)
2,470,867
15,677
(938,227)
(64,193)
711,000
(239,450)
6,149,774
(2,233,593)
934,197
457,034
(1,383,653)
(2,226,015)
(5,546,161)
(2,470,867)
(8,017,028)
(4,093,269)
21,469,790
17,376,521

29

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

1.Activitiesforgeneratingincome
1.VoluntaryIncome
GeneralGiftsandOfferings
GiftAiddonationsandtaxrebate
Designatedgiftsandofferings
Legacies
Grantsreceived
1a
Otherdonations		 Total
2020
£
18,500,897
22,471,171
2,636,318
344,206
3,328,596
404,554
47,685,742		 Total
2019
£
19,251,487
22,373,756
2,496,694
420,403
1,798,792
1,927,605
48,268,737

Included�with�Voluntary�income�is�£2,030,852�which�relates�to�resticted�funds�(2019:�£�£2,208,434�).�

1a.��Grants�received

Grants�received�from�external�sources�during�the�year�to�30�September�2020�and�for�the��year�to�30�September�2019,�are� included�under�income.�We�welcome�and�appreciate�the�support�from�the�various�grant�makers�and�while�the�individual� amounts�are�of�considerable�import�to�the�relevant�individual�activity,��the�number�involved�renders�it�impracticable�to�list� donors�in�detail.��Branch�reports�contain�more�detail.���An�amount�of�£397,717�was�received�by�way�of�grants�under�the� government�furlough�schem

2.Incomefromancillaryprograms
Hireofpremises+
ChurchSeminarsetc
MinistryandSkillstraining
Coffeeshops
Bookrooms
Charityshops
Foodbanks
CommunityPrograms
Childcareprograms
NursingHomes
Otherancillaryactivities		 Total
2020
2,413,782
1,283,435
1,841,480
296,338
93,296
470,433
400,697
1,385,173
5,213,464
3,419,202
81,324
16,898,624		 Total
2019
3,192,782
2,149,518
2,316,667
606,760
139,971
487,544
2,032,323
6,744,914
3,196,403
187,782
21,054,664

A�proportion�of�the�income�for�childcare�and�community�programs�is�derived�from�Local�Authority�support�for�payment� of�fees�on�behalf�of�beneficiaries.�Included�within�the�above�is�£121,998�which�relates�to�the�group's�subsidiary�company� (2019:�£276,008).

30

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

3.Incomefromcharitableactivities
SundryActivities
InterestReceived
4.Investmentincome
Incomegeneratedfrominvestmentassets
5.OtherIncomingresources
Profitonsaleofassets
Totalincomingresources
6Costsofraisingfunds
Promotionandpublicity
BankCharges		 Total
2020
260,664
479,035
739,699
Total
2020
605,891
605,891
Total
2020
10,000
10,000
65,939,956
Total
2020
257,408
421,135
678,543		 Total
2019
243,874
457,034
700,908
Total
2019
605,891
605,891
Total
2019
239,450
239,450
70,869,650
Total
2019
284,662
446,779
731,441

31

Total 2020 33,662,600 5,150,877 2,687,973 1,544,876 246,248 178,594 7,815,442 1,766,653 1,735,323 1,404,752 2,293,790 1,387,085 2,396,066 62,270,279
Ancillary 2020 6,596,807 705,423 2,322,742 22,385 36 475,540 157,472 117,050 93,330 70,706 125,683 44,888 10,732,062
Training 2020 1,260,458 213,285 12,393 384,940 5,913 162,389 15,675 5,489 178,703 2,239,245
Missions 2020 258,325 175,104 5,203 915 2,880 2,593 1,585,372 12,000 7,509 2,049,901
Youth 2020 869,184 427,896 8,259 8,886 4,474 24,268 1,342,967
ChurchActivity
Evangelism		 2020
2020		 6aSummarybyCosts Personnelcosts
8
24,393,911
283,915		 UKEventsandministryprograms
3,309,606
494,667		 UKancillaryandcommunityprograms
6c
365,231		 Overseasministry
1,369,772		 Traininganddevelopment
223,863		 Literatureandmaterial
157,903
3,059		 Premisescosts
6,942,145
3,643		 Utilitiescosts
1,603,268		 Equipmentcosts
1,440,996
3,122		 Officeandadministrationcosts
1,286,627
2,053		 GrantsMade
6d
559,116
48,839		 Governancecosts
7b
1,070,699		 InterestCosts
2,343,669		 45,066,806
839,298		 Supportcostsamountto£1,964,810(2019:£2,147,309)andaresplitoutbycosttypeinNote7abelow. Thesecosthaveallocatedto"ChurchActivity",asthisisconsideredappropriateasthisisthemainactivityofthecharity. Includedintheabove£16,136(2019:£270,229)whichrelatestothegroup'ssubsidiarycompany.Includedintheaboveis£2,053,534 (2019:£2,260,549)whichrelatetorestrictedfunds.
Total 2019 33,827,843 8,612,152 2,891,813 1,769,647 338,626 270,748 8,782,185 1,878,141 1,825,346 1,550,283 1,480,176 1,273,118 2,470,867 66,970,944
Ancillary 2019 7,120,378 532,041 2,704,886 832,720 150,043 137,261 204,190 154,593 14,964 11,851,076
Training 2019 1,400,731 505,247 8,989 532,168 152,012 20,333 4,326 124,549 2,748,355
Missions 2019 248,802 418,842 7,719 3,824 1,652 4,470 1,383,230 13,156 7,124 2,088,819
ChurchActivity
Evangelism
Youth		 2019
2019
2019		 6aSummarybyCosts Personnelcosts
8
23,851,835
234,208
971,889		 UKEventsandministryprograms
5,986,720
569,158
1,018,986		 UKancillaryandcommunityprograms
6c
182,927		 Overseasministry
1,350,805		 Traininganddevelopment
338,626		 Literatureandmaterial
253,407
457
176		 Premisescosts
7,373,322
773
39,378		 Utilitiescosts
1,878,141		 Equipmentcosts
1,504,125
2,161
15,353		 Officeandadministrationcosts
1,382,242
1,796
4,181		 GrantsMade
6d
(196,898)
41,701
43,627		 Governancecosts
7b
945,667
35,153		 InterestCosts
2,448,778		 47,299,697
850,254
2,128,743		 Supportcostsamountto£2,497,032(2019:£1,964,810)andaresplitoutbycosttypeinNote7abelow. Includedintheabove£278,652(2019:£278,652)whichrelatestothegroup'ssubsidiarycompany.Includedintheaboveis£1993098 (2019:£2053,534)whichrelatetorestrictedfunds.

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

6cExpenditurereAncillaryPrograms
6a
ChurchSeminarsetc
MinistryandSkillstraining
Coffeeshops
Bookrooms
Foodbanks
Charityshops
Childcareprograms
CommunityPrograms
NursingHomes
6d.GrantsMade
6a
Individuals
Otherministriesandinstitutions
Othercharities		 Total
2020
149,544
89,954
507,018
46,325
182,502
273,445
4,582,605
1,560,897
3,339,772
10,732,062
Total
2020
715,253
1,014,700
563,837
2,293,790		 Total
2019
143,945
119,041
611,893
98,310
272,569
5,597,401
1,757,724
3,250,193
11,851,076
Total
2019
616,611
347,108
516,457
1,480,176

Grants�to�other�ministries�and�charities�were�mainly�made�by�Churches.���While�specific�details�of�each�grant�have�not� been�collated�it�is�known�that�over�100�churches�made�such�payments.�����The�trustees�are�satisfied�that�churches�are� adequately�advised�as�to�the�parameters�relative�to�the�making�of�grants�and�that�any�misapplication�would�not�have� created�any�material�misrepresentation�in�the�financial�statements.

7a.Supportcosts
CentralandRegionalSalaries
Centralofficepremises
CentralEquipment
Centraladministrationcosts
7b.GovernanceCosts
Principalauditorfee
Consultancyfees
Legalandadvisoryfees
Trusteeandmanagementcommittees		 Total
2020
1,649,272
109,692
168,682
569,386
2,497,032
144,089
-
1,223,481
19,515
3,884,117		 Total
2019
1,633,312
12,436
100,584
218,478
1,964,810
126,029
721
1,098,278
48,090
3,237,928

34

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

8.EMPLOYEES
STAFFCOSTSDURINGTHEYEARWEREASFOLLOWS:
Wagesandsalaries-ministry
Wagesandsalaries-administration
AgencyCosts
Socialsecuritycosts
Otherpensioncosts
Privatehealthinsurance
Staffroles
Churchandministrystaff
YouthMinistry
Administration
Care-Nursingandchildcare
CommunityPrograms
PropertyServices
£90,001-£100,000
£80,001-£90,000
£70,001-£80,000
£60,001-£70,000
£50,001-£60,000
£40,001-£50,000
£30,001-£40,000
£20,001-£30,000
£10,001-£20,000
£1-£10000
Total
TrusteesandOfficers
Remunerationreofficesheld
Disburementofexpensesinfulfilmentofduties		 Total
2020
26,598,778
3,169,254
19,968
702,712
3,087,502
84,386
33,662,600
Number
2020
600
106
297
252
153
137
1,545
Number
2020
2
2
2
7
11
34
140
240
501
606
1,545
2020
1,018,879
32,545		 Total
2019
27,294,183
2,959,339
18,310
938,170
1,816,773
90,069
33,116,844
Number
2019
617
113
298
429
238
164
1,859
Number
2019
2
2
6
3
12
68
154
274
618
720
1,859
2019
1,022,145
58,429

As�required�by�the�Constitution�of�the�Alliance�all�members�of�the�National�Leadership�Team�(the�Trustees)�are�serving� ministers�of�the�Alliance.���During�the�year�all�members�received�remuneration�commensurate�with�thier�ministerial�or� executive�role.���The�total�amount�including�pension�contributions�was�£779,702��(2019�:�£788,525).��A�breakdown�of�this� amount�is�included�within�the�Trustees�Report.�����Loans�provided�to�trustees,�primarily�as�vehicle�loans,�are�listed�in�note� 12(a2)����Please�read�these�in�conjunction�with�this�report.��

Included�in�the�disbursement�of�Expenses�above�are�payments�to�11��trustees�of�£15,150�(2019�:�£24,874 reimbursed to 13 trustees)

No�other�payment�was�made�during�the�year�to�persons�related�to�a�trustee�other�than�those�due�under�contract�of� employment.�In�the�period�to�September�2020�the�number�employed�was�6��(2019:�6)�with�a��total�salary�of�£106,694�(2019:� £106,710)�.����A�breakdown�of�this�amount�is�included�within�the�Trustees�Report.���Please�read�this�in�conjunction�with�this� report

35

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

9.���Tangible�Fixed�Assets

Group
Costasat30September2019
Additions
TransfertoInvestments
Disposals
Costasat30September2020
Accumulateddepreciationasat30September2019
Chargeintheyear
Depreciationondisposals
Accumulateddepreciationasat30September2020
Netbookvalueat30September2020
Netbookvalueat30September2019		 Freehold
Assetsinthe
course
Fixtures,
property&
of
fittings&
leasehold
Construction
equipment
improvements
207,424,782
4,746,376
1,845,788
799,378
(84,635)
209,185,935
5,545,754
18,002,114
4,191,551
1,395,860
127,849
19,397,974
4,319,400
189,787,961
1,226,354
189,422,668
554,825		 Total
2020
212,171,158
2,645,166
(84,635)
214,731,689
22,193,665
1,523,709
23,717,374
191,014,315
189,977,493

9.���Tangible�Fixed�Assets

9.TangibleFixedAssets
Charity
Costasat30September2019
Additions
TransfertoInvestments
Disposals
Costasat30September2020
Accumulateddepreciationasat30September2019
Chargeintheyear
Depreciationondisposals
Accumulateddepreciationasat30September2020
Netbookvalueat30September2020
Netbookvalueat30September2019		 Freehold
Assetsinthe
course
Fixtures,
property&
of
fittings&
leasehold
Construction
equipment
improvements
207,424,782
4,733,614
1,845,788
799,378
(84,635)
209,185,935
5,532,992
18,002,114
4,178,789
1,395,860
127,849		 Total
2,020
212,158,396
2,645,166
(84,635)
214,718,927
22,180,903
1,523,709
19,397,974
4,306,638		 23,704,612
189,787,961
1,226,354		 191,014,315
189,422,668
554,825		 189,977,493

On�31�October�1998,�the�freehold�property�in�England,�Scotland,�Wales�and�the�Channel�Islands�was�revalued�by�Messrs� GVA�Grimley�(RICS).�The�basis�of�the�valuation�used�was�depreciated�replacement�cost�for�the�specialised�properties,� existing�use�value�assuming�vacant�possession�for�non-specialised�properties�and�open�market�value�assuming�vacant� possession�for�properties,�which�are�surplus�to�requirements.�This�valuation�was�included�in�the�1998�financial�statements� and�the�surplus�arising��transferred�to�the�general�reserve.���Subsequently�the�1998�valuation�has�been�treated�as�the� deemed�cost�for�the�relevant�properties.

9a�Investments

Valueat30September2019
Revaluationinyear
Valueasat30September2020		 Investment
property
8,626,410
8,626,410

5�properties�were�identified�as�being�held�solely�for�income�generation�and�capital�appreciation�so�were�transferred�from� Tangible�Fixed�Assets�in�the�previous�year.�The�valuation�is�reviewed�annually�to�establish�fair�value�at�the�balance�sheet�

36

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

10.STOCKS
Group
Goodsforresale
Officestock
Goodsforresaleareheldbylocalchurchbookrooms
Charity
Goodsforresale
Officestock
Goodsforresaleareheldbylocalchurchbookrooms
11.DEBTORS
Group
TradeDebtors
Prepayments
Otherdebtors
Charity
TradeDebtors
Intercompany
Otherdebtors
12.LONGTERMLOANSADVANCED
GroupandCharity
Advancestoindividuals
a
Sundryadvanceslessprovisions		 Total
2020
12,134
18,752
30,886
12,132
2,132
14,264
Total
2020
862,878
1,805,554		 Total
2019
13,684
14,070
27,754
13,683
2,170
15,853
Total
2019
948,718
1,847,094
2,668,432 2,795,812
862,878
90,875
1,747,367		 948,718
1,821,334
2,701,120 2,770,052
Total
2020
1,729,303
396,849		 Total
2019
1,656,008
521,173
2,126,152 2,177,181

a1.��Includes�advances�to�3�officers�of�the�Alliance�secured�against�assets�and�repayable�by�date�of�sale�£29,920�(2019:� £37,128)�No�individual�loan�exceeds�£30,000.��

a2.�Also�includes�the�following�advances�to�trustees�:��

Colin�Dye�in�the�sum�of�£21,260�(2019:�£30,085) Edwin�Michael��£5,000�(2019:�£6,733)

Other�advances�are�repayable�over�a�maximum�period�of�15�years�and�bear�interest�at�1%�over�prevailing�cost�of�funds.

13.CASHATBANKANDINHAND
Netbalanceheldinlocalchurchaccounts
CentralFunds		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2020
2020
2020
15,953,462
15,953,462
3,746,401
693,578
4,439,979
19,699,863
693,578
20,393,441		 Total
Funds
2019
13,513,853
3,862,668
17,376,521

37

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

14.CREDITORS
Group
Tradecreditors
Socialsecurityandothertaxes
Othercreditors
Charity
Tradecreditors
Socialsecurityandothertaxes
Othercreditors
15.LONGTERMLOANSRECEIVED
Unsecuredliabilities:-
Amountsduetoothertrusts
Amountsduetoindividuals
Amountsrepayablewithinoneyear
Securedliabilities:-
Bankloans(b)
Bankloanportionpayablewithinoneyear
Individualloanportionpayablewithinoneyear
TotalLongTermLoans
Bankloanprojectedrepayments
Withinoneyear
Afteroneandwithintwoyears
Aftertwoandwithinfiveyears
Afterfiveyears		 Total
2020
941,627
50,750
538,313
1,530,690
Total
2020
936,772
50,750
535,813
1,523,335
Total
2020
139,643
952,328
(812,328)
279,643
44,086,734
(1,500,000)
42,866,377
1,500,000
1,500,000
4,500,000
36,586,734
44,086,734		 Total
2019
854,434
52,625
374,699
1,281,758
Total
2019
851,795
50,129
373,699
1,275,623
Total
2019
181,212
1,034,970
(890,000)
326,182
44,588,124
(1,850,000)
43,064,306
1,850,000
3,000,000
7,000,000
32,738,124
44,588,124

Bank�loans�are�secured�by�charges�on�certain�properties�of�the�Alliance.��

£27.25m�is�provided�by�Lloyds�as�a�Fixed�Rate�loan The�balance�of�the�bank�facilities�is�provided�at�LIBOR�related�rates�by�Lloyds�and�RBS� and�is�being�repaid�over�an�agreed�15�year�term�by�2028.

38

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

16.MOVEMENTONRESTRICTEDFUNDS
Groupandcharity
At1October2019
Incomingresources
Expenditure
At30September2020		 CHURCH
ELIMRELIEF
2020TOTAL
RESTRICTED
ASSOC.
RESTRICTED
FUNDS
FUND
FUNDS
£
586,960
68,864
655,824
1,956,383
74,469
2,030,852
(1,912,171)
(80,927)
(1,993,098)
631,172
62,406
693,578		 2019TOTAL
RESTRICTED
FUNDS
£
500,924
2,208,434
(2,053,534)
655,824

Churches�hold�various�funds�as�a�result�of�specific�donations,�which�are�awaiting�the�relevant�allocation,��The�major�portion� of�these�funds�are�church�building�funds.

Elim�Relief�Association�is�a�fund�from�which�to�provide�relief�overseas�through�humanitarian�and�development�programs.

17.MOVEMENTONDESIGNATEDFUNDS
TheGroup
At1October2019
Incomingresources
Expenditure
Transfers
At30September2020
Thecharity
At1October2019
Incomingresources
Expenditure
Transfers
At30September2020		 CAPITAL
2020TOTAL
ASSETS
DESIGNATED
FUND
FUNDS
144,173,187
144,173,187
1,662,423
1,662,423
145,835,610
145,835,610
CAPITAL
2020TOTAL
ASSETS
DESIGNATED
FUND
FUNDS
144,173,187
144,173,187
1,662,423
1,662,423
145,835,610
145,835,610		 2019TOTAL
DESIGNATED
FUNDS
138,572,049
5,601,138
144,173,187
2019TOTAL
DESIGNATED
FUNDS
138,571,125
5,602,062
144,173,187

Local�Church�leaderships�have�invested�monies�from�unrestricted�funds�for�various�specific�purposes�particularly�building� projects

Capital�Assets�funds�represents�the�accumulation�of�contributions�applied�to��the�acquisition�of�property�used�in�pursuit�of� our�charity�objectives.

18.�Allocation�of�Assets�by�Fund

18.1Group
FixedAssets
Investments
LoanAdvances
CurrentAssets
CurrentLiabilities
LongtermLiabilities
Pensionobligation
18.2Charity
FixedAssets
Investments
LoanAdvances
CurrentAssets
CurrentLaibilities
LongtermLiabilities
Pensionobligation		 General
Designated
Restricted
191,014,315
8,626,410
2,126,152
22,399,181
693,578
(1,530,690)
(2,312,328)
(42,866,377)
(21,061,000)
(10,000,000)		 Total
191,014,315
8,626,410
2,126,152
23,092,759
(3,843,018)
(42,866,377)
(31,061,000)
10,560,053
135,835,610
693,578		 147,089,241
General
Designated
Restricted
191,014,315
8,626,410
2,126,152
22,366,572
693,578
(1,523,335)
(2,312,328)
(42,866,377)
(21,061,000)
(10,000,000)
10,534,799
135,835,610
693,578		 Total
191,014,315
8,626,410
2,126,152
23,060,150
(3,835,663)
(42,866,377)
(31,061,000)
147,063,987

39

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

19.���CONTINGENT�LIABILITIES

There�are�no�contingent�liabilities�(2019�:�£nil)

20.���CAPITAL�COMMITMENTS

The�Alliance�has�no�major�capital�commitments�other�than�for�church�building�projects�contracted�at�30�September�2020.

21.��OPERATING�LEASES

At�the�year�end�the�charity�had�commitments�under�non-camcellable�operating�leases�expiring�as�below.

Group
Notlaterthan1year
Laterthan1yearbutnotlaterthan5years
Charityonly
Notlaterthan1year
Laterthan1yearbutnotlaterthan5years		 2020
2019
£000s
£000s
OfficeEquipment
OfficeEquipment
176
213
317
511
493
724
2020
£000s
OfficeEquipment
176
317
511
493
724
2019
£000s
OfficeEquipment
213		 2020
2019
£000s
£000s
OfficeEquipment
OfficeEquipment
176
213
317
511
493
724
2020
£000s
OfficeEquipment
176
317
511
493
724
2019
£000s
OfficeEquipment
213
724

22.���PENSIONS

The�charity�operates�a�defined�benefit�occupational�pension�scheme,�the�Elim�Ministers'�Pension�Fund�to�provide� retirement�benefits�for�its�current�and�previous�employees.�

A�full�actuarial�valuation�was�carried�out�as�at�31�December�2019.

The�total�employer�contributions�during�the�year�to�30�September�2020�amounted�to�£1,605,000�(2019:�£1,619,000).

Contributions�to�the�scheme�for�the�year�ending�30�September�2020�are�expected�to�be�£1.685�million.

The�scheme�is�funded�by�payment�of�contributions�from�the�Alliance�to�a�trustee�administered�fund�(members� are�not�required�to�contribute).�

Benefits�were�built�up�in�the�scheme�during�the�year�on�a�'final�salary'�basis,�whereby�the�associated�pension�benefits� are�calculated�with�reference�to�a�member's�Final�Pensionable�Salary�at�the�time�they�leave�service�or�retire.�

Employeebenefitobligations
Presentvalueofbenefitobligation
Fairvalueofschemeassets
NetPensionLiability		 Valueat
2020
£000s
£
68,346
(37,285)
31,061		 Valueat
2019
£000s
£
73,151
(37,795)
35,356

40

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

The�amounts�recognised�in�the�statement�of�financial�activities�are�as�follows:

2020
£000s
Currentservicecost
2,223
NetInterestcostonthenetdefinedbenefitliability
646
Total
2,869
RemeasurementsofthenetdefinedbenefitliabilityrecognisedinOthergainsandlosses
Changesinpresentvalueofbenefitobligation
2020
£000s
Openingdefinedbenefitobligation
73,151
Currentservicecost
2,223
Interestcost
1,327
Actuarialloss/(gain)
(6,455)
Benefitspaid
(1,900)
Closingdefinedbenefitobligation
68,346
Changeinfairvalueofschemeassests
2020
£000s
Openingfairvalueofschemeassets
37,796
Interestinschemeassets
(896)
Returnonassetsexcludinginterestincome
680
Employercontributions
1,605
Benefitspaid
(1,900)
Closingfairvalueofschemeassets
37,285
Theassetsoftheschemewere:
2020
UKEquities
16%
Overseasequities
35%
Gilts
3%
Corporatebonds
14%
Property
23%
Cash/other
9%
100
Expectedcontributionfor2021
1,685,000
Actuarial(losses)/gains
Actualreturnonassetsexcludinginterestincome
2020
£000s
6,455
(896)
~~5,559~~		 2019
£000s
1,795
535
2,330
2019
£000s
(16,563)
607
(15,956)
2019
£000s
55,529
1,795
1,575
16,563
(2,311)
73,151
2019
£000s
36,840
607
1,040
1,619
(2,311)
37,795
2019
19%
32%
3%
13%
25%
8%
100

41

ELIM�FOURSQUARE�GOSPEL�ALLIANCE FINANCIAL�STATEMENTS�YEAR�ENDED�30�SEPTEMBER�2020

NOTES�TO�THE�FINANCIAL�STATEMENTS�

PrnicipalActuarialassumptions 2020 2019
Discountrate 1.57% 1.81%
Inflationassumption(RPI) 3.15% 3.36%
Inflationassumption(CPI) 2.15% 2.36%
Futuresalaryincreases
forfirst3yearspostSeptember2020
thereafter 1.84% 2.08%
Deferredpensionrevaluation 2.15% 2.36%
Benefitsaccruedpre6April1997
BenefitsaccruedApril1997to6April2005 2.22% 2.37%
Benefitsaccruedpost6April2005 1.65% 1.88%

Assumed�life�expectancies�on�retirement�at�age�65�are:�

Male�Mortality 100%�of�ONS�National�Life�tables�2016-2018 100%�of�S3NFA Females�Mortality 100%�of�ONS�National�Life�tables�2016-2019 100%�of�S3NFA Mortality�improvements CMI�2019�long�term�improvement�of�0.75%using�core� Cash�Commutation 80%�(2019:�75%)�members�take�maximum�amount�available Expenses Nil

Historical�disclosures

Historicaldisclosures
Definedbenefitobligation
Schemeassets
Deficit		 2020
2019
2018
£
£
£
(68,346)
(73,151)
(55,529)
37,285
37,795
36,840
(31,061)
(35,356)
(18,689)

42