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Elim FINANCE REPORTS ELIM LEADERS SUMMIT 2023 9-11 MAY | HARROGATE CONVENTION CENTRE

ELIM FOURSQUARE GOSPEL ALLIANCE

CONSOLIDATED

FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

	PAGE
INDEX
Legal and administrative details	2 - 3
Report of the trustees	4 - 19
Report of the independent auditors	20 - 23
Accounting policies	24 - 27
Consolidated statement of financial activities	28
Statement of financial activities – Charity only	29
Consolidated balance sheet	30
Charity balance sheet	31
Consolidated cash flow statement	32
Notes to the financial statements	33 - 44

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 S Ball Rev M A Nunn appointed May 2022 K Devabalan appointed May 2022

Rev D Campbell Rev D Clark Rev K Wood appointed May 2022 Rev A P Hudson Rev R Millar resigned July 2022 Rev H F Afflu appointed May 2022 Rev M Ryan appointed May 2022

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 M Ryan appointed May 2022

Rev D Campbell Rev D Clark Rev K Wood appointed May 2022 Rev A P Hudson Rev H F Afflu appointed May 2022 Rev M A Nunn appointed May 2022

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 – Retired July 2022 Rev R Millar Finance Director – Appointed 14/02/2022 Kumar Devabalan

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 9 Appold Street London EC2A 2AP

Other advisers

Pension Fund Solicitors

Maria C. Riccio Setfords Solicitors Jenner House 1a Jenner Road Guildford GU1 3PH

Pension Fund Administrators Pension Fund Actuary Spence & Partners Limited Richard Smith Linen Loft Spence & Partners Limited 27-37 Adelaide Street 46 New Broad Street Belfast London BT2 8FE EC2M 1JH

Solicitors in Scotland

Beveridge Philip & Ross 22 Bernard St Leith EDINBURGH EH6 6PS

Solicitors in Northern Ireland

Cunningham and Dickey 18 May Street BELFAST County Antrim BT1 4NL

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 objectives we would refer you to the reports for National Departments as published separately. Additionally, 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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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Reserves Policy

The Reserves as at the 30 September 2022 are detailed on the Balance Sheet on page 30.

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 22% 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 of 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 £15m to £30m. As at the financial year end general reserves increased to £31.1m (2021: £28.2m).

Voluntary income has been fairly consistent with the adoption of a variety of digital options and our primary core income by way of gifts and offerings has been sustained at a level where cash reserves have increased over the lock-down period.

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.

Direction Magazine continues to serve as a general news vehicle to the members and the general public.

The Conference Agenda includes annual reports from Alliance officers and departments and Financial Statements. Copies of the Conference Agenda 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 regularly updated, and has proved particularly vital in dissemination of practical advice and guidance during the pandemic.

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 30% 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.

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.

Audit & Governance Committee (AGC): This committee operates under guidelines established by the Financial Reporting Council (FRC). Members are appointed by the National Leadership Team, to

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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whom they will seek to provide guidance and assurance on processes relative to management of corporate risk and governance.

Finance Board: New Finance Board is in place now. The Board consist of four independent members appointed by the NLT (three members already appointed and in the process of appointing the fourth member), General Superintendent, Executive Director, Finance Director, and Chair of Pension Board. The Finance Board meet at least four times a year. The responsibilities of the Finance Board are to provide direction to the NLT for fiscal responsibility by overseeing effective financial planning, financial control and financial reporting in addition to effective oversight of the financial and operational performance of EFGA and advise the Trustees on the financial health, potential threats, and financial opportunities regarding the Charity. The Finance Board (or representatives) may act as a sounding board and source of advice to the Executive Director and the Finance Director on major areas of change, innovation and development as part of their strategic responsibilities.

Property and Projects Board: This body is constituted by Conference and consists of four members of the National Leadership Team, the Executive Director, the Strategic Property Manager, 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 charity’s property assets. Property and Projects Board replaced the previous Management Board when the Finance Board was formed.

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 independent members serving on the Finance 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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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Summary of Salaried roles held by Trustees

Summary of Salaried roles held by Trustees	Summary of Salaried roles held by Trustees	Summary of Salaried roles held by Trustees	Summary of Salaried roles held by Trustees

	2022	2022	2022	2021	2021	2021
Name	Salary	Employers	Pension	Salary	Employers	Pension	Position salaried
		N.I			N.I
Chris Cartwright	87,567	11,337	6,030	87,567	10,868	5,783	Chris serves as General Superintendent, the most senior full time position in Elim, and global leader of the charity
Stuart Blount	64,076	7,948	5,679	64,076	7,626	5,262	Stuart is serving as national Director of Ministry
David Campbell	64,076	7,775	5,679	64,076	7,475	5,262	Serves as Regional Leader for the Metropolitan East and West Regions
Duncan Clark	60,667	-	5,679	58,500	-	5,262	Serves as Senior Minister of our church at Coventry
Colin Dye	-	-	-	100,972	-	-	Serves as Senior Minister of our largest church, Kensington Temple in London and also as Regional Leader of the London CityRegion
James Glass	64,076	7,948	5,679	57,998	5,719	5,262	Serves as Senior Minister of our church in Glasgow
Kevin Peat				5,340	636	0	Serves as Regional Leader for Scotland and North West Regions
Edwin Michael	60,000	6,969	5,679	53,694	-	5,262	Serves as Superintendent of Elim Ireland.
Paul Hudson	65,293	8,124	5,679	65,293	7,794	5,262	Serves as Regional Leader for Midlands and North East Regions
Dominic De Souza	49,985	-	5,259	49,085	-	5,184	Serves as Senior Minister at City Church Cardiff.
Steve Ball	64,074	7,948	5,679	64,074	7,626	5,262	Serves as Regional Leader for the Wales and Southern and South West Regions
Kojo Wood*	22,917	-		-	-	-	Serves as Senior Minister of our church at Stevenage
Harold Afflu*	11,221	-	2,282	-	-	-	Serves as Senior Minister of our church at Ipsw hich
Michelle Nunn*	15,790	-		-	-	-	Serves as Senior Minister of our church at Nantw ich
Mark Ryan*	30,000	-	2,382	-	-	-	Serves as Senior Minister of our largest church, Kensington Temple in London and also as Regional Leader of the London CityRegion

	659,742	58,049	55,706	670,675	47,744	47,801
Totalper note 8 to the accounts	773,497			766,220

Trustee - related Parties	2022			2021
Name	Salary			Salary			Position salaried
Amanda Dye	-	-		50,000	-		Full time senior administration and ministry role in the church at Kensington Temple, London
Amanda Campbell	11,181			11,181			Part-time role as leader of Lifelink w ithin the Elim International Missions department.
Beryl Glass	6,584			-			Part-time administrative role in the church in Glasgow since 2011, prior to her husband becoming a trustee. Now also a credentialled minister in training.
Margaret Michael	5,529			5,529			Part-time administration in Elim Ireland office
Catherine De Souza	33,050			26,178			Senior Leader at City Church Cardiff
Florence Afflu*	3,917			-			Part-time administrative and support role at our church at Ipsw hich

Total per note 8 to the accounts	60,261			92,888
* M ay 2022 to September 2022

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 reviews conducted during the year.

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.

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. Staff at EIC have received training in fraud recognition and responses.

During the pandemic we have seen a very positive move from our donors and supporters to adopt a variety of digital options to enable their giving. This has greatly diluted the impact to such a degree that general income in some churches actually increased. It is important that we continue to review and develop these digital resources to ensure a smooth process for donations to continue

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

Expenditure on major capital projects across the Alliance is approved by the Property and Projects Board. The Property and Projects Board decisions are strengthened by the appointment of Lay members who possess expertise in property management. The brief of the Board is to review and approve applications on Capital projects as to context, concept, and costs.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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The Finance Board is in place now to serve the Alliance and the NLT on financial strategy and operations. The Finance Board consist of individuals with extensive business experience and qualifications.

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 Property and Projects Board. Property Handbook provides 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 Strategic Property Manager. Elim has negotiated insurance cover which addresses all areas of liability and protection for its assets.

Data Protection

Elim has engaged a dedicated service provider to monitor and manage the processes for handling information across the wide spectrum of charity activity. Established practices and protocols are regularly reviewed to strengthen compliance with improved understanding of the evolving legislation. The Privacy Policy is published on our main central website.

We are also alert to the risk of cyber-attack on data held throughout the charity. Our central IT department monitors systems very closely and resources have been installed to defend against attack and protect the information held. Churches are advised with recommendations on options and practice on how to protect local data.

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:

 Committee structure with regular meetings.
 Detailed terms of reference for each committee, together with formal agendas and minutes of all meetings.
 Accountability of all national officers and lines of reporting clearly established.
 Retaining third party consultants in particularly sensitive areas such as Human Resources and Child Protection etc.
 Regular update training for trustees and officers.
 Budget and management accounting and regular financial reporting.
 Strong internal controls.
 Subscription to relevant journals, literature and regular “watchdog” reports from various advisors.
 The development of the ElimNET website resource to keep local church ministers and administrators informed and updated.
 The provision of charity specific insurance policies covering not only fixed assets of the Alliance but also major public and employment liabilities.
 An independent Audit and Governance Committee is in place with primary responsibility to review governance and processes.

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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”. The onset of Covid19 confirmed the need to provide alternative facilities for members and supporters to make their donations.

We seek to provide access to viable alternative resources for local church and national ministries. These are mainly in the form of online digital options which enable direct donations via church websites, Paythru mobile text giving and the app-based donor resource from GIVT. While we advise our donors with these options, we do not promote them via any direct marketing activity. It is a tremendous encouragement to see a substantial increase in the use of these digital options and we 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 as a confidential independent advice service to members by Frodsham solicitors.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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FINANCE DIRECTOR’S REPORT - REVIEW OF THE YEAR

Thank God for bringing us through another challenging year. As always, He is faithful. Our financial year started in October 2021, with the Prime Minister’s announcement of a second lockdown. Six months into the year, the Ukraine war started in February 2022. We end the financial year facing another challenge, the cost-of-living crisis. The world keeps changing and with it comes various challenges, but God remains the same, above it all because He is the “Great I Am”. Covid restrictions are a distant past now and activities which could not be performed due to the restrictions are resuming.

Congregations are coming back to church in person, but the online streaming of events continue to serve an ongoing demand. The online streaming does not replace in person meetings. But it serves those who are unable to attend due to ill health or those who have moved out of the area or the ones who are used to the online services.

During 2022 we returned to “in Person” events. We had the annual Elim Leadership Summit (ELS) in Harrogate in May. This was the first in person conference since 2019. National Youth Festival, Limitless took place in Stafford Show Ground early August. This event reconvened after Covid for the first time and was blessed with over 4,000 attendees. First time this event was held in such a large scale.

We are continually encouraged by how our churches and fellowships who have been committed and active in so many ways in expressions of ministry, outreach, support and care in communities across the nation. Churches are supporting communities during the cost-of-living crisis by providing Food Banks and offering Warm Places. Our churches were also actively involved in helping the refugees from Ukraine in many ways.

Through the persistent service of Elim International Missions and our missionaries, the loving concern of Elim people has touched many parts of our world. Churches generously supported the fund raising to help the Ukrainians affected by the war.

The National Leadership Team continued throughout the year to meet regularly and keep churches informed of relevant updated guidance in the face of a perpetually changing environment. This has become more critical as we seek to come out from under the restrictive demands and recover aspects of “normal” church life.

There is an evident gradual return of those community based programs and activities which were unable to function at all particularly during lockdown, though we anticipate that we will be well into 2023 before finances recover to pre-lockdown levels.

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. We continued to receive loss of income insurance relating to Covid period. To date we have received settlement of claims of over £3.0m.

Overall charity income for the year of £69.8m (2021: £64.6m) reflected an increase of 8% on the previous year.

Note 1 from the Financial Statements (reproduced below) confirms an increase of 1% in Voluntary Income compared to 2021. We saw increases within various voluntary income categories, however, there is a decrease in grants received. Grants received in 2021 includes the Furlough grants from the government during Covid lockdown period. Furlough grants stopped when the lockdown restrictions were lifted. Net incoming resources for the year was 0.7m compared to £3.4m in 2021. The reduction in net incoming resources compared to 2021 was largely due to regular church activities and community programs restarting after the lifting of the restrictions.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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1. Voluntary Income


1. Voluntary Income General Gifts and Offerings Gift Aid donations and tax rebate Designated gifts and offerings Legacies Grants received Other donations	Total Total 2022 2021 £ £ 18,891,718 19,138,710 23,412,773 22,742,364 1,517,629 2,244,645 630,708 383,046 3,588,964 4,329,933 2,008,817 740,372 50,050,609 49,579,070
0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 General Gifts Gift Aid Designated gifts Grants Other EFGA DONATIONS 2018 to 2022 2022 2021 2020 2019 2018

Ancillary programs were affected in the previous two years due to Lockdown restrictions. Community programs such as nurseries, childcare related programs, luncheon clubs, etc. were unable function during Lockdown. During the year most of the activities which were affected due to Lockdown were getting back to normal operation, however, we only see part year benefit in 2022.

We see a year on year increase of £4.7m (33%) in ancillary income due to easing of the Lockdown restrictions. The ancillary income is still 13% (£2.5m) less than what we generated before Covid. We should reach the pre-Covid level in 2023 as this will be the first full year without restrictions since Covid.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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2. Income from ancillary programs Hire of premises+ Church Seminars etc Ministry and Skills training Coffee shops Bookrooms Charity shops Foodbanks Community Programs Childcare programs Nursing Homes Other ancillary activities Total	Total Total 2022 2021 £ £ 3,459,554 2,054,976 1,282,541 552,557 1,767,589 1,441,501 425,649 200,775 42,157 165,819 146,334 393,940 321,547 478,826 1,246,392 1,137,089 4,728,379 4,163,423 4,715,452 3,209,001 562,961 204,732 18,698,555 14,002,639

The table below shows the ancillary income from 2018 to 2022. In 2018 and 2019 the ancillary income was over £21m, during Lockdown in 2020 it reduced to £17m and further down to £14m in 2021. The reduction from 2019 to 2021 was over £7m i.e., over 33%. However, during 2022 most of the activities were back to pre-Covid level of and we see the ancillary income has increased to just under £19m. We expect the ancillary income to reach pre-Covid levels by end 2023.

----- Start of picture text -----
Income from Ancillary Programs 2018 to 2022
22,500,000
20,000,000
17,500,000
15,000,000
12,500,000
10,000,000
7,500,000
5,000,000
2,500,000
0
2018 2019 2020 2021 2022
Hire of premises+ Church Seminars etc Ministry and Skills training Community Programs Childcare programs Nursing Homes Other
----- End of picture text -----

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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Overall expenditure increased by £9.2m (15%) compared to 2011 expenditure of £59.9m.

Expenditure increased in the year as church activities and community projects were getting back to normal after the removal of restrictions for Covid. In financial year 2022 there were limited period of lockdown and restrictions compared to 2021. During this financial year, as the restrictions were eased activities were gradually getting back to normal. Therefore, we see the increase in expenditure.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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At the end of the year Elim had 1464 (2021: 1522) 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. Please see note 8 in the financial statements

Staff roles Church and ministry staff Youth Ministry Administration Care - Nursing and childcare Community Programs Property Services	Number Number 2022 2021 586 603 93 105 288 298 205 226 151 146 141 144 1,464 1,522

CONSOLIDATED BALANCE SHEET - see chart at the end of this section

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 we must continue to address.

The overall Reserves of the Alliance have again improved, reflecting an incredible consistency of growth even through periods of general economic difficulties. The main strength of the Alliance resides in its Fixed Assets carrying value of £195.3m (2021: (£196.7m). While the carrying value appears to have taken a small downturn this year, that is largely due to ongoing application of an annual depreciation charge of just over £1.2m.

The FRS valuation for Pension Fund liabilities has decreased to £20m an improvement of £10m from the 2021 level of £30m. As we regularly comment, this value is calculated on parameters dictated by government statute. Our triennial actuarial valuation as at 31 December 2021 was a shortfall of £27.2m. However, the revised funding position, as at 17 March 2023 shows a shortfall of £11.4m which has been used as the appropriate deficit for the Recovery Plan calculations.

Long Term Loans received from banks has increased slightly by £0.5m to £42.3m. Churches are making regular payments against the loans and loan value reduces gradually. However, there were some new loans for property purchase and refurbishment work in the year, making a net increase in loans.

Conclusion

This year was different to the last two years as we were coming out of Covid restrictions and getting back to normal or the “new normal”. However, churches were faced with different challenges as they restarted the church activities and in person services. Thank God for all who served in churches in various roles to help with the work of God.

Our God is an awesome God, and He is, was and will be our Jehovah-Jireh! He has brought us through the last two years with numerous challenges and He will do the same in the coming weeks and months.

Thine, O LORD is the greatness, and the power, and the glory, and the victory, and the majesty: for all that is in the heaven and in the earth is thine; thine is the kingdom, O LORD, and thou art exalted as head above all (1 Chronicles 29:11).

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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----- Start of picture text -----
EFGA Balance Sheet
2008 to 2022
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
Fixed Assets Long Term Liabilities Reserves
----- End of picture text -----

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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:

[select][suitable][ accounting][ policies][ and][ then][ apply][them][ consistently;]
[observe][ the][ methods][ and][ principles][set][out][ in][ the][ Charities][ SORP][ (FRS][ 102);]
[make][ judgments][ and][ accounting][ estimates][ that][are][ reasonable][ and][ prudent;]
® state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
[prepare][ the][ financial][ statements][ on][ the][ going][ concern][ basis][ unless][ it][ is][ inappropriate][ to][ presume] that the group continue in operation.

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

Chris Cartwright 4 May 2023

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 2022 which comprise the Consolidated Statement of Financial Activities, the Parent Charity only Statement of Financial Activities, the Consolidated Balance Sheet, the 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 FRS 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 the parent charity’s affairs as at 30 September 2022 and of the group’s and parent charity’s incoming resources and application of resources, 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 Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended) and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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) requires us to report to you if, in our opinion:

the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
the charity has not kept adequate accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we required for our audit.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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 purposes of expressing an opinion on the effectiveness of the charity’s internal control.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 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 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP Statutory auditor

4 May 2023 9 Appold Street London EC2A 2AP

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 2022. 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 going concern for the foreseeable future. Congregations are back in church after the lifting of the restrictions. However, churches have identified the need for continuous online presence and most churches offer “in person” and online meetings. Ancillary programs are back in operation and the income from these programs have increased by 33% from prior year. Based on this, together with the increased 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:

assets received for distribution by the Alliance are recognised only when distributed
assets received for resale are recognised, where practicable, when receivable or otherwise when sold
gifts of fixed assets for charity use, or funds for acquiring fixed assets for charity use are accounted for (as restricted funds), immediately on receipt.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

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, including those from government and local authorities, 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.

Insurance Claim income

Income from successful claims, including Covid-19 Loss of Income claims, are recognised on receipt of written agreement from the insurers

Investment income

Investment income is recognised when receivable.

RESOURCES EXPENDED

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

expenditure incurred directly to the fulfilment of the charity’s objectives (direct charitable), including support costs
expenditure incurred directly in the effort to raise voluntary contributions (fundraising and publicity)
the purchase of properties overseas from funds provided by the International Missions Board is included in the statements under restricted funds expenditure and not treated as tangible fixed assets, except where held on behalf of the Board by the Elim Trust Corporation.
Direct costs attributable to a single activity are allocated directly to that activity. Support costs and governance costs are allocated by management based on the most appropriate categorisation and split between categories where appropriate. See note 6a.
grants payable as approved by management, charged against the relevant fund

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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.

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 PROPERTY

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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

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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 2022 is £20.2m (2021: £30.1m).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 2021 indicates a resulting pension shortfall of £11.4m, 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:

Depreciation on property assets
Assumptions for the Defined Benefit Pension scheme
The recoverability of Debtors
Revaluation on Investment assets

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

Consolidated Statement of Financial Activities

incorporating Income and Expenditure Account

note
INCOMING RESOURCES
Activities for generating income
Voluntary Income
1
Income generated by ancillary programs
2
Income from charitable activities
3
Investment income
4
Other Income resources
5
Total incoming resources
RESOURCES EXPENDED
Costs of raising funds
6
Charitable Activities
6a
Loss on sale of assets
5
Surplus of income over Expenditure
Investment Asset revaluation
Net incoming resources for the year
Actuarial Gain on Defined Benefit Scheme
22
Net movement in funds
Fund balances at 1 October 2021
Fund balances at 30 September 2022

Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2022
2022
2022
2021
£
£
£
£
47,298,984
2,751,625
50,050,609
49,579,070
18,698,555
18,698,555
14,002,639
616,600
616,600
380,150
383,692
383,692
605,891
66,997,831
2,751,625
69,749,456
64,567,750
564,938
564,938
450,284
65,453,812
2,521,202
67,975,014
59,410,326
552,977
552,977
10,333
66,571,727
2,521,202
69,092,929
59,870,943
426,104
230,423
656,527
4,696,807
0
(1,268,410)
426,104
230,423
656,527
3,428,397
10,401,000
10,401,000
1,971,000
10,827,104
230,423
11,057,527
5,399,397
151,687,021
801,617
152,488,638
147,089,241
162,514,125
1,032,040
163,546,165
152,488,638

All of the activities of the charity are classed as continuing

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

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

Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2022
2022
2022
2021
£
£
£
£
47,298,984
2,751,625
50,050,609
49,579,070
18,380,990
18,380,990
13,889,697
616,600
616,600
380,150
383,692
383,692
605,891
0
66,680,266
2,751,625
69,431,891
64,454,808
564,938
564,938
450,283
65,195,247
2,521,202
67,716,449
59,272,491
552,977
552,977
10,334
66,313,162
2,521,202
68,834,364
59,733,108
367,104
230,423
597,527
4,721,700
0
0
(1,268,410)
367,104
230,423
597,527
3,453,290
10,401,000
0
10,401,000
1,971,000
10,768,104
230,423
10,998,527
5,424,290
151,686,660
801,617
152,488,277
147,063,987
162,454,764
1,032,040
163,486,804
152,488,277

All of the activities of the charity are classed as continuing

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2022

		Unrestricted	Restricted	Total	Total
	Note	Funds	Funds	Funds	Funds
		2022	2022	2022	2021
FixedAssets		£	£	£	£
Tangiblefixedassets	9	187,303,601		187,303,601	188,958,025
Investments	9a	7,358,000		7,358,000	7,358,000
Longtermloansadvanced	12	626,560		626,560	372,512
		195,288,161		195,288,161	196,688,537
CurrentAssets
Stocks	10	26,900		26,900	29,038
Debtors	11	2,908,738		2,908,738	3,929,293
Cashatbankandinhand	13	29,187,572	1,032,040	30,219,612	26,042,364
		32,123,210	1,032,040	33,155,250	30,000,695
CurrentLiabilities
Creditors	14	1,621,568		1,621,568	1,669,737
Currentportiononlongtermloans	15	7,265,910		7,265,910	2,142,566
		8,887,478		8,887,478	3,812,303
Netcurrentassets		23,235,732	1,032,040	24,267,772	26,188,392
Totalassetslesscurrentliabilities		218,523,893	1,032,040	219,555,933	222,876,929
Longtermloansreceivedandotherliabilities	15	35,785,768		35,785,768	40,378,291
Pensionobligations		20,224,000		20,224,000	30,010,000
		162,514,125	1,032,040	163,546,165	152,488,638
Reserves
General reserves		31,128,202		31,128,202	28,249,852
Generalpropertyreserves	17	131,385,923		131,385,923	123,437,169
Restrictedfunds	16		1,032,040	1,032,040	801,617
		162,514,125	1,032,040	163,546,165	152,488,638

These financial statements were approved by the National Leadership Team on 4 May 2023 and signed on its behalf by Chris Cartwright

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

CHARITY BALANCE SHEET AS AT 30 SEPTEMBER 2022

		Unrestricted	Restricted	Total	Total
	Note	Funds	Funds	Funds	Funds
		2022	2022	2022	2021
FixedAssets		£	£	£	£
Tangiblefixedassets	9	187,303,601		187,303,601	188,958,025
Investments	9a	7,358,000		7,358,000	7,358,000
Longtermloansadvanced	12	626,560		626,560	372,512
		195,288,161		195,288,161	196,688,537
CurrentAssets
Stocks	10	10,338		10,338	12,006
Debtors	11	2,891,920		2,891,920	3,898,608
Cashatbankandinhand	13	29,117,419	1,032,040	30,149,459	26,027,231
				0	0
		32,019,677	1,032,040	33,051,717	29,937,845
CurrentLiabilities
Creditors	14	1,577,396		1,577,396	1,607,248
Currentportiononlongtermloans	15	7,265,910		7,265,910	2,142,566
		8,843,306		8,843,306	3,749,814
Netcurrentassets		23,176,371	1,032,040	24,208,411	26,188,031
Totalassetslesscurrentliabilities		218,464,532	1,032,040	219,496,572	222,876,568
Longtermloansreceivedandotherliabilities	15	35,785,768		35,785,768	40,378,291
Pensionobligations		20,224,000		20,224,000	30,010,000
		162,454,764	1,032,040	163,486,804	152,488,277
Reserves
General reserves		31,068,841		31,068,841	28,249,492
Generalpropertyreserves	17	131,385,923		131,385,923	123,437,168
Restrictedfunds	16		1,032,040	1,032,040	801,617
		162,454,764	1,032,040	163,486,804	152,488,277

These financial statements were approved by the National Leadership Team on 4 May 2023 and signed on its behalf by Chris Cartwright

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

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

CONSOLIDATED CASH FLOW STATEMENT

Net cash inflow from operating activities
Adjustments for:
Depreciation
Interest received
Interest paid
Movement in stock
Movement in debtors
Movement in creditors
Non cash movement re Defined Benefit Pension Scheme
Loss on disposal of fixed assets
Net cash from operating activities
Cash Flows from investing activities:
Purchase of Property, plant and equipment
Sale of Property, plant and equipment
Interest received
(Loans Advanced) Repayment of loans advanced
Cash flows from financing activities
Movement in loans
Interest paid
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period

2022
2021
656,527
4,696,807
1,712,141
1,540,828
(459,829)
(279,790)
2,660,977
2,365,352
2,138
1,848
1,020,555
(1,260,861)
(48,169)
139,047
615,000
920,000
552,977
10,333
6,712,317
8,133,565
(989,918)
(1,740,550)
379,224
2,245,677
459,829
279,790
(254,048)
1,753,640
(404,913)
2,538,557
530,821
(2,657,848)
(2,660,977)
(2,365,351)
(2,130,156)
(5,023,199)
4,177,248
5,648,923
26,042,364
20,393,441
30,219,612
26,042,364

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

1. Activities for generating income 1. Voluntary Income General Gifts and Offerings Gift Aid donations and tax rebate Designated gifts and offerings Legacies Grants received 1a Other donations	Total Total 2022 2021 £ £ 18,891,718 19,138,710 23,412,773 22,742,364 1,517,629 2,244,645 630,708 383,046 3,588,964 4,329,933 2,008,817 740,372 50,050,609 49,579,070

Included with Voluntary income is £2,751,625 which relates to restricted funds (2021: £2,056,564).

1a. Grants received

Grants received from external sources during the year to 30 September 2022 and for the year to 30 September 2021, are included under voluntary 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.

2. Income from ancillary programs Hire of premises+ Church Seminars etc Ministry and Skills training Coffee shops Bookrooms Charity shops Foodbanks Community Programs Childcare programs Nursing Homes Other ancillary activities	Total Total 2021 2022 3,459,554 2,054,976 1,282,541 552,557 1,767,589 1,441,501 425,649 200,775 42,157 165,819 146,334 393,940 321,547 478,826 1,246,392 1,137,089 4,728,379 4,163,423 4,715,452 3,209,001 562,961 204,732 18,698,555 14,002,639

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 £317,565 which relates to the group's subsidiary company (2021: £112,942).

Ministry and Skills training includes fees received for Regents College of £957,548 (2021: £793,677) of which £610,498 (2021: 523,503) was from Student Loans Company.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

3. Income from charitable activities Sundry Activities Interest Received 4. Investment income Income generated from investment assets 5. Other Incoming resources Profit (Loss) on sale of assets Total incoming resources 6 Costs of raising funds Promotion and publicity Bank Charges	Total Total 2022 2021 156,771 100,360 459,829 279,790 616,600 380,150 Total Total 2022 2021 383,692 605,891 383,692 605,891 Total Total 2022 2021 (552,977) (10,333) (552,977) (10,333) 69,196,479 64,557,416 Total Total 2022 2021 219,373 243,227 345,565 207,056 564,938 450,283

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

6a Summary by Costs Personnel costs 8 UK Events and ministry programs UK ancillary and community programs 6c Overseas ministry Training and development Literature and material Premises costs Utilities costs Equipment costs Office and administration costs Grants Made 6d Governance costs 7b Interest Costs	Church Activity Evangelism Youth Missions Training Ancillary Total 2022 2022 2022 2022 2022 2022 2022 24,904,067 161,720 790,867 266,924 1,066,729 6,945,370 34,135,677 2,475,127 224,999 546,990 1,966,401 163,390 997,994 6,374,901 1,009,722 694 2,192 1,968 84,423 2,135,021 3,234,020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 190,657 453 1,410 0 6,553 0 199,073 8,633,560 6,396 360 0 415,242 788,641 9,844,199 2,073,960 0 0 0 1,390 246,279 2,321,629 2,112,177 3,716 9,182 4,705 179,145 139,989 2,448,914 1,149,964 1,635 3,240 61,920 14,095 93,218 1,324,072 3,862,382 68,784 10,968 103,700 12,333 154,073 4,212,240 841,795 0 420 103,321 134,054 139,722 1,219,312 2,623,605 56 1,630 12,263 4,538 18,885 2,660,977
	49,877,016 468,453 1,367,259 2,521,202 2,081,892 11,659,192 67,975,014

6a Summary by Costs
Personnel costs
8
UK Events and ministry programs
UK ancillary and community programs
6c
Overseas ministry
Training and development
Literature and material
Premises costs
Utilities costs
Equipment costs
Office and administration costs
Grants Made
6d
Governance costs
7b
Interest Costs

Church Activity
Evangelism
Youth
Missions
Training
Ancillary
Total
2022
2022
2022
2022
2022
2022
2022
24,904,067
161,720
790,867
266,924
1,066,729
6,945,370
34,135,677
2,475,127
224,999
546,990
1,966,401
163,390
997,994
6,374,901
1,009,722
694
2,192
1,968
84,423
2,135,021
3,234,020
0
0
0
0
0
0
0
0
0
0
0
0
0
0
190,657
453
1,410
0
6,553
0
199,073
8,633,560
6,396
360
0
415,242
788,641
9,844,199
2,073,960
0
0
0
1,390
246,279
2,321,629
2,112,177
3,716
9,182
4,705
179,145
139,989
2,448,914
1,149,964
1,635
3,240
61,920
14,095
93,218
1,324,072
3,862,382
68,784
10,968
103,700
12,333
154,073
4,212,240
841,795
0
420
103,321
134,054
139,722
1,219,312
2,623,605
56
1,630
12,263
4,538
18,885
2,660,977

49,877,016
468,453
1,367,259
2,521,202
2,081,892
11,659,192
67,975,014

Support costs amount to £2,377,008 (2021: £2,239,703) and are split out by cost type in Note 7a below.

These cost have allocated to "Church Activity", as this is considered appropriate as this is the main activity of the charity.

Included in the above £258,564 (2021: £137,835) which relates to the group's subsidiary company. Included in the above is £2,521,202 (2021: 1,948,525 ) which relate to restricted funds.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

6a Summary by Costs Personnel costs 8 UK Events and ministry programs UK ancillary and community programs 6c Overseas ministry Training and development Literature and material Premises costs Utilities costs Equipment costs Office and administration costs Grants Made 6d Governance costs 7b Interest Costs	Church Activity Evangelism Youth Missions Training Ancillary Total 2021 2021 2021 2021 2021 2021 2021 23,615,506 232,850 834,428 247,854 1,031,597 6,724,928 32,687,163 2,612,638 470,560 221,041 90,089 56,521 760,909 4,211,758 477,235 2,674 6,583 0 77,584 2,108,136 2,672,212 0 0 0 0 0 0 0 0 0 0 0 0 0 0 153,934 462 935 3,215 10,704 8 169,258 6,150,533 6,444 1,340 492 316,291 654,265 7,129,365 1,635,746 0 0 0 3,088 152,035 1,790,869 1,626,086 5,450 6,743 6,621 169,053 147,588 1,961,541 1,204,961 1,965 3,445 1,756 15,885 89,233 1,317,245 2,051,810 50,856 6,627 1,615,911 9,212 136,714 3,871,130 940,932 2,112 674 12,000 155,830 122,886 1,234,434 2,319,067 3 624 5,375 5,593 34,689 2,365,351
	42,788,448 773,376 1,082,440 1,983,313 1,851,358 10,931,391 59,410,326

Church Activity
Evangelism
Youth
Missions
Training
Ancillary
Total
2021
2021
2021
2021
2021
2021
2021
23,615,506
232,850
834,428
247,854
1,031,597
6,724,928
32,687,163
2,612,638
470,560
221,041
90,089
56,521
760,909
4,211,758
477,235
2,674
6,583
0
77,584
2,108,136
2,672,212
0
0
0
0
0
0
0
0
0
0
0
0
0
0
153,934
462
935
3,215
10,704
8
169,258
6,150,533
6,444
1,340
492
316,291
654,265
7,129,365
1,635,746
0
0
0
3,088
152,035
1,790,869
1,626,086
5,450
6,743
6,621
169,053
147,588
1,961,541
1,204,961
1,965
3,445
1,756
15,885
89,233
1,317,245
2,051,810
50,856
6,627
1,615,911
9,212
136,714
3,871,130
940,932
2,112
674
12,000
155,830
122,886
1,234,434
2,319,067
3
624
5,375
5,593
34,689
2,365,351

42,788,448
773,376
1,082,440
1,983,313
1,851,358
10,931,391
59,410,326

Support costs amount to £2,377,008 (2021: £2,239,703) and are split out by cost type in Note 7a below.

Included in the above £258,564 (2021: £137,835) which relates to the group's subsidiary company. Included in the above is £2,521,202 (2021: 1,948,525 ) which relate to restricted funds.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

6c Expenditure re Ancillary Programs 6a Church Seminars etc Ministry and Skills training Coffee shops Bookrooms Foodbanks Charity shops Childcare programs Community Programs Nursing Homes 6d. Grants Made 6a Individuals Other ministries and institutions Other charities	Total Total 2022 2021 380,513 158,350 168,640 70,197 506,903 404,077 49,256 53,283 293,002 366,670 98,640 246,822 4,795,196 4,564,850 1,758,479 1,657,006 3,608,563 3,410,136 11,659,192 10,931,391 Total Total 2022 2021 954,670 776,502 2,663,092 2,596,687 594,478 497,941 4,212,240 3,871,130

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. Support costs Central and Regional Salaries Central office premises Central Equipment Central administration costs 7b. Governance Costs Principal auditor fee Consultancy fees Legal and advisory fees Trustee and management committees	Total Total 2022 2021 1,802,430 1,782,446 147,326 113,743 158,284 152,415 268,968 191,099 2,377,008 2,239,703 107,462 125,415 - - 1,093,256 1,103,311 18,594 5,708 3,596,320 3,474,137

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

8. EMPLOYEES
STAFF COSTS DURING THE YEAR WERE AS FOLLOWS:
Wages and salaries - ministry
Wages and salaries - administration
Agency Costs
Social security costs
Other pension costs
Private health insurance
Staff roles
Church and ministry staff
Youth Ministry
Administration
Care - Nursing and childcare
Community Programs
Property Services
£100,001 -
£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 - £10,000
Total
Trustees and Officers
Remuneration re offices held
Disburement of expenses in fulfilment of duties

Total
Total
2022
2021
26,757,203
25,365,187
3,795,069
3,795,069
18,542
17,589
728,631
657,388
2,759,780
2,775,244
76,450
76,685
34,135,675
32,687,162
Number
Number
2022
2021
586
603
93
105
288
298
205
226
151
146
141
144
1,464
1,522
Number
Number
2022
2021
0
1
0
2
1
2
1
2
8
8
7
13
14
30
175
140
225
250
449
466
584
608
1,464
1,522
2022
2022
1,094,669
1,031,350
31,315
8,912

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 their ministerial or executive role. The total amount including pension contributions was £773,497 (2021 : £766,220). 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 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 2022 the number employed was 5 (2021: 4) with a total salary of £60,261 (2021: £92,888) . A breakdown of this amount is included within the Trustees Report. Please read this in conjunction with this report

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

9. Tangible Fixed Assets

Group Cost as at 30 September 2021 Additions Transfer to Investments Disposals Cost as at 30 SEPTEMBER 2022 Accumulated depreciation as at 30 September 2021 Charge in the year Depreciation on disposals Accumulated depreciation as at 30 September 2022 Net book value at 30 SEPTEMBER 2022 Net book value at 30 September 2021 9. Tangible Fixed Assets Charity Cost as at 30 September 2021 Additions Transfer to Investments Disposals Cost as at 30 SEPTEMBER 2022 Accumulated depreciation as at 30 September 2021 Charge in the year Depreciation on disposals Accumulated depreciation as at 30 SEPTEMBER 2022 Net book value at 30 SEPTEMBER 2022 Net book value at 30 September 2020	Freehold Assets in the course Fixtures, property & of fittings & leasehold Construction equipment Total improvements 2022 208,552,468 5,663,495 214,215,963 866,148 123,770 989,918 0 (932,201) 0 (932,201) 208,486,415 5,787,265 214,273,680 20,759,481 4,498,457 25,257,938 1,495,198 216,943 1,712,141 22,254,679 4,715,400 26,970,079 186,231,736 1,071,865 187,303,601 187,792,987 1,165,038 188,958,025 Freehold Assets in the course Fixtures, property & of fittings & leasehold Construction equipment Total improvements 2,022 208,552,468 5,650,733 214,203,201 866,148 123,770 989,918 (932,201) (932,201) 208,486,415 5,774,503 214,260,918 20,759,481 4,485,695 25,245,176 1,495,198 216,943 1,712,141
	22,254,679 4,702,638 26,957,317

	186,231,736 1,071,865 187,303,601
	187,792,987 1,165,038 188,958,025

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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

9a Investments

9a Investments
Value at 30 September 2021 Revaluation in year Value as at 30 SEPTEMBER 2022	Investment property 7,358,000 0
	7,358,000

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 date.

10. STOCKS	Total	Total
	2022	2021
Group
Goods for resale	7,885	9,958
Office stock	19,015	19,080
	26,900	29,038
Goods for resale are held by local church bookroomsand EPC Services Shop
Charity
Goods for resale	7,883	9,956
Office stock	2,455	2,050
	10,338	12,006
Goods for resale are held by local church bookrooms
11. DEBTORS	Total	Total
	2022	2021
Group
Trade Debtors	485,653	288,957
Prepayments
Other debtors	2,423,085	3,640,336
	2,908,738	3,929,293
Charity
Trade Debtors	485,653	288,957
Intercompany	8,571	41,885
Other debtors	2,397,696	3,567,766
	2,891,920	3,898,608

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS
12. LONG TERM LOANS ADVANCED Group and Charity Advances to individuals a Sundry advances less provisions	Total Total 2022 2021 612,586 291,785 13,974 80,726
	626,560 372,511

a. Includes advances to 2 officers of the Alliance secured against assets and repayable by date of sale £31,738 (2021: £37,525) No individual loan exceeds £30,000.

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

13. CASH AT BANK AND IN HAND
Net balance held in local church accounts
Central Funds
14. CREDITORS
Group
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
Charity
Trade creditors
Social security and other taxes
Other creditors
Intercompany
Accruals and deferred income

Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2022
2022
2022
2021
19,394,468
19,394,468
17,444,709
9,793,104
1,032,040
10,825,144
8,597,655
29,187,572
1,032,040
30,219,612
26,042,364
Total
Total
2022
2021
1,326,484
1,064,862
44,844
43,521
250,240
505,354
0
56,000
1,621,568
1,669,737
Total
Total
2022
2021
1,326,364
1,053,343
45,630
38,545
205,402
459,360
0
56,000
1,577,396
1,607,248

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

15. LONG TERM LOANS RECEIVED
Unsecured liabilities:-
Amounts due to other trusts
Amounts due to individuals
Amounts repayable within one year
Secured liabilities:-
Bank loans (b)
Bank loan portion payable within one year
Individual loan portion payable within one year
Total Long Term Loans
Bank loan projected repayments
Within one year
After one and within two years
After two and within five years
After five years

Total
Total
2022
2021
159,325
141,730
618,590
782,566
(478,590)
(642,566)
299,325
281,730
42,273,763
41,596,561
(6,787,320)
(1,500,000)
35,785,768
40,378,291
6,787,320
1,500,000
1,787,320
1,500,000
4,281,147
4,500,000
29,417,976
34,096,561
42,273,763
41,596,561

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.

ELIM FOURSQUARE GOSPEL ALLIANCE

FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

16. MOVEMENT ON RESTRICTED FUNDS Group and charity At 1 October 2021 Incoming resources Expenditure At 30 SEPTEMBER 2022	CHURCH ELIM RELIEF 2021 TOTAL 2021 TOTAL RESTRICTED ASSOC. RESTRICTED RESTRICTED FUNDS FUND FUNDS FUNDS £ £ 739,147 62,470 801,617 693,578 2,212,737 538,888 2,751,625 2,056,564 (2,086,471) (434,731) (2,521,202) (1,948,525) 865,413 166,627 1,032,040 801,617

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.

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

17. MOVEMENT ON DESIGNATED FUNDS
The Group
At 1 October 2021
Incoming resources
Expenditure
Transfers
At 30 SEPTEMBER 2022
The charity
At 1 October 2021
Incoming resources
Expenditure
Transfers
At 30 SEPTEMBER 2022

CAPITAL
2021 TOTAL
2021 TOTAL
ASSETS
DESIGNATED
DESIGNATED
FUND
FUNDS
FUNDS
123,437,169
123,437,169
135,835,610
7,948,754
7,948,754
(12,398,441)
131,385,923
131,385,923
123,437,169
CAPITAL
2021 TOTAL
2021 TOTAL
ASSETS
DESIGNATED
DESIGNATED
FUND
FUNDS
FUNDS
123,437,169
123,437,169
135,835,610
0
0
0
0
0
0
7,948,754
7,948,754
(12,398,441)
131,385,923
131,385,923
123,437,169

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

18.1 Group
Fixed Assets
Investments
Loan Advances
Current Assets
Current Liabilities
Long term Liabilities
Pension obligation
18.2 Charity
Fixed Assets
Investments
Loan Advances
Current Assets
Current Laibilities
Long term Liabilities
Pension obligation

General
Designated
Restricted
Total
187,303,601
187,303,601
7,358,000
7,358,000
626,560
626,560
32,123,210
1,032,040
33,155,250
(1,621,568)
(7,265,910)
(8,887,478)
(35,785,768)
(35,785,768)
(20,224,000)
(20,224,000)
31,128,202
131,385,923
1,032,040
163,546,165
General
Designated
Restricted
Total
187,303,601
187,303,601
7,358,000
7,358,000
626,560
626,560
32,019,677
1,032,040
33,051,717
(1,577,396)
(7,265,910)
(8,843,306)
(35,785,768)
(35,785,768)
(20,224,000)
(20,224,000)
31,068,841
131,385,923
1,032,040
163,486,804

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

19. CONTINGENT LIABILITIES

There are no contingent liabilities (2020 : £nil)

20. CAPITAL COMMITMENTS

The Alliance has no major capital commitments other than for church building projects contracted at 30 SEPTEMBER 2022.

21. OPERATING LEASES

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

Group Not later than 1 year Later than 1 year but not later than 5 years Charity only Not later than 1 year Later than 1 year but not later than 5 years	2022 2021 £000s £000s Office Equipment Office Equipment 98 99 115 161 213 260 2022 2021 £000s £000s Office Equipment Office Equipment 98 99 115 161 213 260

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 2021 and indicates a pension shortfall of £27.2m. However, the revised funding position, as at 17 March 2023 shows a shortfall of £11.4m which has been used as the appropriate deficit for the Recovery Plan calculations.

The total employer contributions during the year to 30 September 2022 amounted to £2,049,000 (2020: £1,485,000).

Contributions to the scheme for the year ending 30 September 2023 are expected to be £2.049 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.

Employee benefit obligations Present value of benefit obligation Fair value of scheme assets Net Pension Liability	Value at Value at 2022 2021 £000s £000s £ £ 48,320 71,649 (28,096) (41,639) 20,224 30,010

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

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

	2022	2021
	£000s	£000s
Current service cost	2,079	1,914
Net Interest cost on the net defined benefit liability	585	491
Total	2,664	2,405
Remeasurements of the net defined benefit liability recognised in Other gains and losses
	2022	2021
	£000s	£000s
Actual return on assets excluding interest income	(13,689)	4,897
Actuarial (losses) / gains	24,090	(2,926)
	10,401	1,971
Changes in present value of benefit obligation	2022	2021
	£000s	£000s
Opening defined benefit obligation	71,650	68,346
Current service cost	2,079	1,915
Interest cost	1,390	1,068
Actuarial loss / (gain)	(24,090)	2,926
Benefits paid	(2,709)	(2,605)
Closing defined benefit obligation	48,320	71,650
Change in fair value of scheme assests	2022	2021
	£000s	£000s
Opening fair value of scheme assets	41,639	37,285
Interest in scheme assets	(13,689)	4,897
Return on assets excluding interest income	806	577
Employer contributions	2,049	1,485
Benefits paid	(2,709)	(2,605)
Closing fair value of scheme assets	28,096	41,639
The assets of the scheme were:	2022	2021
UK Equities	18.8%	16.2%
Overseas equities	41.2%	33.3%
Gilts	3.8%	0.9%
Corporate bonds	2.1%	6.5%
Overseas bonds	7.9%	5.4%
Property	1.3%	22.3%
Cash/ other	24.9%	15.4%
	100%	100%

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2022

_______________

NOTES TO THE FINANCIAL STATEMENTS

Prnicipal Actuarial assumptions	2022	2021
Discount rate	5.16%	1.95%
Inflation assumption (RPI)	3.83%	3.67%
Inflation assumption (CPI)	2.83%	2.67%
Future salary increases
for first 13 years post September 2021	0.00%	0.00%
thereafter	2.56%	2.51%
Deferred pension revaluation	2.83%	2.67%
Benefits accrued pre 6 April 1997	0.00%	0.00%
Benefits accrued April 1997 to 6 April 2005	2.75%	2.63%
Benefits accrued post 6 April 2005	1.92%	1.86%

Assumed life expectancies on retirement at age 65 are:

Male Mortality	100% of ONS National Life tables 2018-2020 100% of S3NFA
Females Mortality	100% of ONS National Life tables 2018-2020 100% of S3NFA
Mortality improvements	CMI 2021 long term improvement of 1.0%using core parameters
Cash Commutation	80% (2021: 80%) members take maximum amount available
Expenses	Nil

Historical disclosures

Historical disclosures
Defined benefit obligation Scheme assets Deficit	2022 2021 2020
	£ £ £ (48,320) (71,649) (68,346) 28,096 41,639 37,285
	(20,224) (30,010) (31,061)

2022-09-30-accounts

ei$.2

ELIM FOURSQUARE GOSPEL ALLIANCE

CONSOLIDATED

LEGAL AND ADMINISTRATIVE DETAILS

Charity registration

Property Trustee

Directors of the Elim Trust Corporation

National Leadership Team and Trustees

Principal Officers

LEGAL AND ADMINISTRATIVE DETAILS

Bankers

Solicitors

Auditors

Other advisers

Solicitors in Scotland

Solicitors in Northern Ireland

TRUSTEES REPORT

Constitution and legal status

Objectives and policies

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

MAKING DISCIPLES

PLANTING AND GROWING CHURCHES

REACHING NATIONS

TRAINING AND DEVELOPING LEADERS

Public Benefit

Values

Branches, connected trusts and subsidiary companies

Investments / management of resources

_______________

Reserves Policy

Payment Policy

Funding

Communication and Involvement of Members

GOVERNANCE

Remuneration of Trustees and related Parties

Summary of Salaried roles held by Trustees

Disabled employees

Risk Management

Safeguarding:

Financial Management:

_______________

Property Ownership

Data Protection

General

Grant Policy

_______________

Policy on funding of overseas activities

Subsidiaries

Fundraising Policy

FINANCE DIRECTOR’S REPORT - REVIEW OF THE YEAR

Overall charity income for the year of £69.8m (2021: £64.6m) reflected an increase of 8% on the previous year.

1. Voluntary Income

Overall expenditure increased by £9.2m (15%) compared to 2011 expenditure of £59.9m.

_______________

CONSOLIDATED BALANCE SHEET - see chart at the end of this section

Conclusion

Trustees' responsibilities for the financial statements

Trustees' Responsibilities Statement

Auditors

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

_______________

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Use of our report

ACCOUNTING POLICIES

BASIS OF PREPARATION

BASIS OF CONSOLIDATION

GOING CONCERN

BRANCHES

INCOMING RESOURCES

Donations and gifts

Contributions re Capital projects

Grants receivable

Insurance Claim income