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2023-09-30-accounts

# E L S 2 0 2 4

A W A K E N I N G

F I N A N C E R E P O R T S

ELIM FOURSQUARE GOSPEL ALLIANCE

CONSOLIDATED

FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2023

PAGE
INDEX
Legal and administrative details 2 - 3
Report of the trustees 4 – 18
Report of the independent auditors 19 – 22
Accounting policies 23 – 26
Consolidated statement of financial activities 27
Statement of financial activities – Charity only 28
Consolidated balance sheet 29
Charity balance sheet 30
Consolidated cash flow statement 31
Notes to the financial statements 32 - 45

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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

Rev D Campbell Rev D Clark Rev K Wood Rev A P Hudson Rev H F Afflu Rev M Ryan K Devabalan

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

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

Principal Officers

General Superintendent Director of Ministry International Missions Director Irish Superintendent Director of Training Evangelism Director Executive Director National Administrator Finance Director

Rev Chris Cartwright Rev Stuart Blount Rev Iain Hesketh – resigned 15 September 2023 Rev Edwin Michael Rev David Newton – resigned Rev Olivia Amartey Rev Sarah Bale Kumar Devabalan

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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

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

Solicitors in Scotland

Solicitors in Northern Ireland

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

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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

At the heart of everything we do is our shared mission to plant the gospel of Jesus Christ, in a relevant way, in individual lives and communities, making life-long disciples in the UK and nations across the globe. A disciple is more than just a church attender; disciples are prepared to submit their lives to the call and cause of Christ. Embedded in every sphere of society, they seek to live out their commitment in a real way within their communities.

PLANTING AND GROWING CHURCHES

We are fully committed to our shared task of making the gospel of Jesus Christ known in individual lives and communities. We aim to facilitate the movement’s ever-increasing and effective planting of Elim churches across the nations.

REACHING NATIONS

Elim aims to be an international disciple-making movement with strategies for church planting and leadership development in the nations. We will do this through our continued focus on surrendering to the Spirit, sending and supporting missionaries, and the promotion of the Church in the UK and overseas.

TRAINING AND DEVELOPING LEADERS

We are committed to training, developing, and supporting 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 are thrilled when we see men and women serving God to their fullest potential, and individual growth is always in the stretch; it is rarely comfortable, but always retrospectively satisfying.

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.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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
Avenue
Portadown
N Ireland
BT63 5ZF
EPC Services England & Wholly owned Elim Carries out any
Limited Wales subsidiary International trading aspect of
Centre the Alliance with
De Walden Rd the major activity
West Malvern being the Elim
WR14 4DF Leadership Summit

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

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

Investments / management of resources

As the major demand for the Alliance is for property, the majority of resources are applied toward the acquisition and capital renovation programs on church buildings and manses for our ministers. Surplus funds across the charity will be invested internally via Elim Loans Administration towards these capital projects. Agreement has been reached with the main bankers to the effect that an allowance is made on the credit balances held in current accounts which is then applied towards subsidising bank charges levied on church accounts.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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Reserves Policy

The Reserves as at the 30 September 2023 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 28% 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 £18m to £36m. As at the financial year end general free reserves were £39.3m (2022: £40.9m) after allowing for pension reserve.

Voluntary income has increased by 10% this year and our primary income by way of gifts and offerings have been sustained at a level where adequate cash reserves are maintained. As at the financial year end cash reserves were £27.6m (2022: £30.2m)

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.

All the central departments publish their own site, as do most of our churches throughout the UK. An online advice service Elim Hub, is maintained which focuses on administrative information and guidance for church leaders and officers, covering a wide range of topics including taxation, Health and

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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: The Board consist of four independent members appointed by the NLT, 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 for managing the salary payments for executive officers and heads of national departments. The Salary Committee also participate in reviews and recommendations on remuneration level for those serving as ministers in Elim churches and the relevant pensionable salary scales.

Remuneration of Trustees and related Parties

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

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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
2023 2023 2023 2022 2022 2022
Name Salary Employers Pension Salary Employers Pension Position salaried
N.I N.I
Chris Cartwright 91,070 11,398 6,335 87,567 11,337 6,030 Chris serves as General Superintendent, the most senior
full time position in Elim, and global leader of the charity
Stuart Blount 66,639 7,908 5,904 64,076 7,948 5,679 Stuart is serving as national Director of Ministry
David Campbell 66,639 7,834 5,904 64,076 7,775 5,679 Serves as Regional Leader for the Metropolitan East and
West Regions
Duncan Clark 63,097 - 5,904 60,667 - 5,679 Serves as Senior Minister of our church at Coventry
James Glass 66,639 8,001 5,904 64,076 7,948 5,679 Serves as Senior Minister of our church in Glasgow
Edwin Michael 63,300 6,375 5,904 60,000 6,969 5,679 Serves as Superintendent of Elim Ireland.
Paul Hudson 67,905 8,177 5,904 65,293 8,124 5,679 Serves as Regional Leader for Midlands and North East
Regions
Dominic De Souza 52,068 - 5,475 49,985 - 5,259 Serves as Senior Minister at City Church Cardiff.
Steve Ball 66,637 8,001 5,904 64,074 7,948 5,679 Serves as Regional Leader for the Wales and Southern
and South West Regions
Kojo Wood 55,000 - 5,475 22,917 - Serves as Senior Minister of our church at Stevenage
Harold Afflu 26,695 - 5,658 11,221 - 2,282 Serves as Senior Minister of our church at Ipswhich
Michelle Nunn 39,142 - 5,475 15,790 - Serves as Senior Minister of our church at Nantwich
Mark Ryan 89,725 - 5,904 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
814,556 57,694 75,650 659,742 58,049 55,706
Totalper note 8 to the accounts 947,900 773,497
Trustee - related Parties 2023 2021
Name Salary Salary Position salaried
Amanda Campbell 10,626 216 11,181 Part-time role as leader of Lifelink within the Elim
International Missions department.
Caroline Wood 10,922 328 259 6,291 193 397 Part-time administrative and support role at our church at
Stevenage
Beryl Glass 6,584 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 5,809 5,529 Part-time administration in Elim Ireland office
Catherine De Souza 34,716 33,050 Senior Leader at City Church Cardiff
Florence Afflu 10,000 3,917 Part-time administrative and support role at our church at
Ipswhich
Total per note 8 to the accounts 78,657 66,552
Chris Cartwright (General Superintendent, most senior full time position in Elim) does not have any salary sacrifice arrangements or receive any non
taxable benefits. Taxable benefits paid to General Superintendent in addition to what is listed above was private medical insurance of £1,388. The
median of Regents College staff basic remuneration was £24,669 and General Superintendent's basic remuneration was 3.7 times this.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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:

The Elim Pentecostal Church is committed to safeguarding children and adults in need of protection. The Elim National Leadership Team acknowledges that safeguarding 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.

Elim requires each of its churches to adopt a safeguarding policy, carry out training and have good working procedures in place. Our model safeguarding policy and supplementary guidance for protecting adults are published on Elim Hub.

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 Elim Hub to all church leaders. Staff at EIC have received training in fraud recognition and responses.

Many churches started utilising alternative digital donation options during Covid and our supporters continue to use these modes. This has greatly reduced the cash received in the churches. We continue to review and develop digital resources to ensure smooth process for donations.

The management of the Central Funds is based on a comprehensive budget reviewed annually by the Finance Board and 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.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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 Elim Hub 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:

Grant Policy

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

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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.

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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FINANCE DIRECTOR’S REPORT - REVIEW OF THE YEAR

The financial year started on the 1 October 2022, a week after the mini budget which was presented by the then Chancellor of the Exchequer on 23 September 2022. As we all know the financial markets reacted negatively to the budget, and eventually the Chancellor of the Exchequer and the Prime Minister resigned. The financial year ended on the 30 September 2023 and a week later the shocking attack on Israel took place. Some of these events are closer to home and some are far from home, however we always see an impact on our lives because of the modern globalised economy. We face new challenges as a Movement as various events takes place at home or around the world, but God remains the same, above it all because He has overcome the world.

Covid now seems to be in the distant past as all church activities have resumed to full operations, but the online streaming of events continues 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.

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. Through the persistent service of Elim International Missions and our missionaries, the loving concern of Elim people has touched many parts of our world.

Many churches started utilising the alternative digital donation options during Covid and continue to use these modes, such as, Paythru and facilities offered by the Givt donation app. We also saw an increase in enquiries from churches about receiving donations by card, because the use of cheques and cash are reducing. Many churches are utilising the Cardnet service which offers suitable terminals based on the volume of use.

Overall charity income for the year of £78.9m (2022: £69.8m) reflected an increase of 13% on the previous year.

Note 1 from the Financial Statements (reproduced below) confirms an increase of 11% in Voluntary Income compared to 2022. We saw increases within various voluntary income categories, however, there was a small decrease in grants received. General gifts and offering increased by 5% as full church activities have resumed now. Increase of £1.8m in Gift Aid donations and tax rebate due to some churches claiming gift aid for previous periods. Designated gifts and offerings include the settlement with Lloyd’s bank relating to one of the loans. Income from legacies increased by 23% in the year and we are grateful for all the generous gifts we received to support the Movement.

Voluntary Income
General Gifts and Offerings
Gift Aid donations and tax rebate
Designated gifts and offerings
Legacies
Grants received
Other donations		 Total
Total
2023
2022
£
£
19,830,176
18,891,718
25,196,736
23,412,773
2,918,149
1,517,629
775,833
630,708
3,315,126
3,588,964
3,471,573
2,008,817
55,507,593
50,050,609

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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----- Start of picture text -----
£000 EFGA DONATIONS 2018 to 2023 £000
27,500 60,000
25,000
22,500
55,000
20,000
17,500
50,000
15,000
12,500
45,000
10,000
7,500
40,000
5,000
2,500
0 35,000
General Gifts Gift Aid Designated gifts Legacies Grants Other
2023 2022 2021 2020 2019 2018 Total
----- End of picture text -----

Total income from ancillary programs increased by 18% to £22m this year compared to £19m in 2022. Previous year the ancillary programs were not fully operational for the entire year due to Covid restrictions. 2023 is the first full year since Covid without any restrictions and we see the ancillary income have reached pre-Covid levels and beyond.

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
2023
2022
£
£
3,947,080
3,459,554
2,636,351
1,282,541
1,886,183
1,767,589
601,045
425,649
56,561
42,157
183,254
146,334
413,064
321,547
1,317,803
1,246,392
5,971,397
4,728,379
4,890,581
4,715,452
125,476
562,961
22,028,795
18,698,555

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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The table below shows the ancillary income from 2018 to 2023. 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. In 2023 the ancillary income has increased to £22m.

Overall expenditure increased by £3.5m (5%) compared to 2022 expenditure of £69.1m.

Expenditure increased in the year as church activities and community projects were getting back to normal after the removal of restrictions for Covid. UK events and ministry programs increased by 2m (31%) as all church activities have resumed. We also see 26% increase in ancillary costs (£0.8m) due to increase activity and 21% increase utilities costs (£0.5m) due to price increases.

Expenditure
Charitable Activities
Personnel costs
UK Events and ministry programs
UK ancillary and community programs
Literature and material
Premises costs
Utilities costs
Equipment costs
Office and administration costs
Grants Made
Governance costs
Interest Costs		 Total
Total
2023
2022
£
£
35,655,287
34,135,677
8,347,199
6,374,901
4,063,603
3,234,020
236,574
199,073
9,144,105
9,844,199
2,818,390
2,321,629
2,641,202
2,448,914
1,508,823
1,324,072
3,953,873
4,212,240
1,325,772
1,219,312
2,365,029
2,660,977
72,059,857
67,975,014

15

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

Staff

At the end of the year Elim had 1440 (2022: 1,464) 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
2023
2022
585
586
96
93
294
288
157
205
152
151
156
141
1,440
1,464

16

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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 £197.4m (2022: (£195.3m). The carrying value has increased by just over £2m in the year, largely due to revaluation of investment properties in the year.

The FRS valuation for Pension Fund liabilities has decreased to £7.3m an improvement of £3.1m from the 2022 level of £10.4m. The 2022 value is restated in the accounts because the actuaries made a mistake on the valuation. 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 was 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 decreased to £34.1m compared to £42.3m in 2022. Loan value reduced due to regular repayment from churches and £5.0m loan settled with Lloyds bank in the year.

Conclusion

This is the first full financial year since Covid without any restrictions. Churches were faced with new challenges relating to cost of living, increase in utilities and the consequences of war in Ukraine and middle east. Thank God for all who served in churches in various roles to help with the work of God. We are blessed with ministers, staff and volunteers who love God and who love to serve Him.

Our God if faithful, and He is, was and will be our Jehovah-Jireh! The world keeps changing and churches are faced with new challenges, but God remains the same and helping and guiding His children through all these challenges.

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).

----- Start of picture text -----
EFGA Balance Sheet
2008 to 2023
240,000,000
200,000,000
160,000,000
120,000,000
80,000,000
40,000,000
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fixed Assets Long Term Liabilities Reserves
----- End of picture text -----

17

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

Trustees' responsibilities for the financial statements

Trustees’ Responsibilities Statement

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

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

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

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

Auditors

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

Signed by order of the National Leadership Team

Chris Cartwright

7 May 2024

18

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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 2023 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:

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

19

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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:

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:

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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:

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ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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

Date: 7 May 2024 Devonshire House 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.

22

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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 2023. 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. Ancillary programs are back in full operation and the income from these programs have reached pre Covid levels. Based on this, together with the 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:

23

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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:

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.

24

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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.

25

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

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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 2023 is a liability of £7.3m (restated 2022: liability of £10.4m). The main actuarial valuations for Trustee management are obtained at least triennially. These results however are not reported via the Balance Sheet for the Alliance. The latest triennial report for 3 years ended 31 December 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:

  1. Depreciation on property assets

  2. Assumptions for the Defined Benefit Pension scheme

  3. The recoverability of Debtors

  4. Revaluation on Investment assets

26

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
(Gain)/loss on sale of assets
5
Surplus of income over Expenditure
Gains/losses on investments
9a
Net incoming resources for the year
Actuarial Gain on Defined Benefit Scheme
22
Net movement in funds
Fund balances at 1 October 2023
Fund balances at 30 September 2023*		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2022
£
£
£
£
53,311,567
2,196,026
55,507,593
50,050,609
22,028,795
22,028,795
18,698,555
146,018
146,018
156,771
1,172,724
1,172,724
843,521
0
0
76,659,104
2,196,026
78,855,130
69,749,456
566,623
566,623
564,938
69,733,153
2,326,704
72,059,857
67,975,014
(6,798)
(6,798)
552,977
70,292,978
2,326,704
72,619,682
69,092,929
6,366,126
(130,678)
6,235,448
656,527
2,317,189
2,317,189
8,683,315
(130,678)
8,552,637
656,527
3,571,000
3,571,000
20,201,000
12,254,315
(130,678)
12,123,637
20,857,527
172,314,125
1,032,040
173,346,165
152,488,638
184,568,440
901,362
185,469,802
173,346,165

All of the activities of the charity are classed as continuing *2022 Actuarial Gain balance restated

27

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

Statement of Financial Activities - CHARITY ONLY 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
(Gain)/loss on sale of assets
5
Surplus of income over Expenditure
Gains/losses on investments
9a
Net incoming resources for the year
Actuarial Gain on Defined Benefit Scheme
22
Net movement in funds
Fund balances at 1 October 2023
Fund balances at 30 September 2023*		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2022
£
£
£
£
53,311,567
2,196,026
55,507,593
50,050,609
21,702,768
21,702,768
18,380,990
146,018
146,018
156,771
1,172,724
1,172,724
843,521
0
0
76,333,077
2,196,026
78,529,103
69,431,891
566,623
566,623
564,938
69,401,054
2,326,704
71,727,758
67,716,449
(6,798)
(6,798)
552,977
69,960,879
2,326,704
72,287,583
68,834,364
6,372,198
(130,678)
6,241,520
597,527
2,317,189
2,317,189
0
8,689,387
(130,678)
8,558,709
597,527
3,571,000
0
3,571,000
20,201,000
12,260,387
(130,678)
12,129,709
20,798,527
172,254,764
1,032,040
173,286,804
152,488,277
184,515,151
901,362
185,416,513
173,286,804

All of the activities of the charity are classed as continuing *2022 Actuarial Gain balance restated

28

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2023

Note
Fixed Assets
Tangible fixed assets
9
Investments
9a
Long term loans advanced
12
Current Assets
Stocks
10
Debtors
11
Cash at bank and in hand
13
Current Liabilities
Creditors
14
Current portion on long term loans
15
Net current assets
Total assets less current liabilities
Long term loans received and other liabilities
15
Pension obligations
22
Reserves
General reserves
Pension reserve
General property reserves
17
Restricted funds
16*		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2022 - as restated
£
£
£
£
187,478,533
187,478,533
187,303,601
9,675,189
9,675,189
7,358,000
263,625
263,625
626,560
197,417,347
197,417,347
195,288,161
18,973
18,973
26,900
4,794,392
4,794,392
2,908,738
26,669,578
901,362
27,570,940
30,219,612
31,482,943
901,362
32,384,305
33,155,250
2,157,576
2,157,576
1,621,568
2,593,379
2,593,379
7,265,910
4,750,955
4,750,955
8,887,478
26,731,988
901,362
27,633,350
24,267,772
224,149,335
901,362
225,050,697
219,555,933
32,258,895
32,258,895
35,785,768
7,322,000
7,322,000
10,424,000
184,568,440
901,362
185,469,802
173,346,165
39,388,992
39,388,992
40,928,202
145,179,448
145,179,448
131,385,923
901,362
901,362
1,032,040
184,568,440
901,362
185,469,802
173,346,165

These financial statements were approved by the National Leadership Team on and signed on its behalf by Chris Cartwright on 7 May 2024

The accounting policies on pages 23 to 26 and the notes on pages 32 to 45 form part of these financial statements.

29

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

CHARITY BALANCE SHEET AS AT 30 SEPTEMBER 2023

Note
Fixed Assets
Tangible fixed assets
9
Investments
9a
Long term loans advanced
12
Current Assets
Stocks
10
Debtors
11
Cash at bank and in hand
13
Current Liabilities
Creditors
14
Current portion on long term loans
15
Net current assets
Total assets less current liabilities
Long term loans received and other liabilities
15
Pension obligations
22
Reserves
General reserves
less Pension reserve
General property reserves
17
Restricted funds
16*		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2022 - as restated
£
£
£
£
187,478,533
187,478,532.5
187,303,601
9,675,189
9,675,188.9
7,358,000
263,625
263,624.6
626,560
197,417,346
197,417,346.00
196,688,537
9,232
9,232
10,338
4,753,958
4,753,958
2,891,920
26,578,959
901,362
27,480,321
30,149,459
0
0
31,342,150
901,362
32,243,512
33,051,717
2,070,071
2,070,071
1,577,396
2,593,379
2,593,379
7,265,910
4,663,450
4,663,450
8,843,306
26,678,700
901,362
27,580,062
24,208,411
224,096,046
901,362
224,997,408
219,496,572
32,258,895
32,258,895
35,785,768
7,322,000
7,322,000
10,424,000
184,515,151
901,362
185,416,513
173,286,804
39,335,704
39,335,704
40,868,841
145,179,447
145,179,447
131,385,923
901,362
901,362
1,032,040
184,515,151
901,362
185,416,513
173,286,804

These financial statements were approved by the National Leadership Team on and signed on its behalf by Chris Cartwright on 7 May 2024

The accounting policies on pages 23 to 26 and the notes on pages 32 to 45 form part of these financial statements.

30

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
(Profit) / 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
Repayment of loans advanced (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		 2023
2022
6,235,448
656,527
1,730,015
1,712,141
(783,115)
(459,829)
2,365,029
2,660,977
7,927
2,138
(1,885,654)
1,020,555
536,008
(48,169)
469,000
615,000
(6,798)
552,977
8,667,860
6,712,317
(1,971,947)
(989,918)
73,798
379,224
783,115
459,829
362,935
(254,048)
(752,099)
(404,913)
(8,199,404)
530,821
(2,365,029)
(2,660,977)
(10,564,433)
(2,130,156)
(2,648,672)
4,177,248
30,219,612
26,042,364
27,570,940
30,219,612
Analysis of changes in net debt
Cash and cash equivalents
Cash at bank and in hand
Borrowings
Debt due within one year
Debt due after one year
Total		 1 October
Cash flows
30 September
2022
2023
30,219,612
(2,648,672)
27,570,940
30,219,612
(2,648,672)
27,570,940
7,265,910
(4,672,531)
2,593,379
35,785,768
(3,526,873)
32,258,895
43,051,678
(8,199,404)
34,852,274
(12,832,066)
5,550,732
(7,281,334)

31

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
2023
2022
£
£
19,830,176
18,891,718
25,196,736
23,412,773
2,918,149
1,517,629
775,833
630,708
3,315,126
3,588,964
3,471,573
2,008,817
55,507,593
50,050,609

Included with Voluntary income is £2,196,026 which relates to restricted funds (2022: £2,751,625).

1a. Grants received

Grants received from external sources during the year to 30 September 2023 and for the year to 30 September 2022, 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
2023
2022
3,947,080
3,459,554
2,636,351
1,282,541
1,886,183
1,767,589
601,045
425,649
56,561
42,157
183,254
146,334
413,064
321,547
1,317,803
1,246,392
5,971,397
4,728,379
4,890,581
4,715,452
125,476
562,961
22,028,795
18,698,555

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 £326,027 which relates to the group's subsidiary company (2022: £317,565).

Ministry and Skills training includes fees received for Regents College of £823,079 (2022: £896,000) of which £496,543 (2022: 567,000) was from Student Loans Company. Fees income for taught awards £750,728 (2022: £842,000), research awards £2,075 (2022: £0) and non-qualifying courses £70,276 (2022: £54,000).

32

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

3. Income from charitable activities
Sundry Activities
4. Investment income
Income generated from investment assets
Interest Received
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
2023
2022
146,018
156,771
146,018
156,771
Total
Total
2023
2022
389,609
383,692
783,115
459,829
1,172,724
843,521
Total
Total
2023
2022
6,798
(552,977)
6,798
(552,977)
78,861,928
69,196,479
Total
Total
2023
2022
203,411
219,373
363,212
345,565
566,623
564,938

33

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

Church Activity Evangelism Youth Missions Training Ancillary Total
2023 2023 2023 2023 2023 2023 2023
6a Summary by Costs
Personnel costs 8 25,411,030 265,768 1,001,251 263,333 1,066,824 7,647,081 35,655,287
UK Events and ministry programs 4,972,890 412,002 1,329,998 158,887 200,977 1,259,982 8,334,736
UK ancillary and c 6c 1,129,335 692 35,232 0 191,964 2,706,380 4,063,603
Overseas ministry 0 0 0 0 0 0 0
Training and development 0 0 0 0 0 0 0
Literature and material 225,282 453 1,410 2,876 6,553 0 236,574
Premises costs 7,987,828 5,672 530 1,968 391,484 756,623 9,144,105
Utilities costs 2,530,186 0 0 0 1,065 287,139 2,818,390
Equipment costs 2,338,442 2,883 9,501 4,190 179,318 106,868 2,641,202
Office and administration costs 1,343,349 2,619 5,651 2,419 14,150 140,635 1,508,823
Grants Made 6d 1,993,011 51,217 12,547 1,777,941 12,733 106,423 3,953,872
Governance costs 7b 1,029,837 0 693 108,863 133,764 65,079 1,338,236
Interest Costs 2,345,463 56 1,553 6,227 4,541 7,189 2,365,029
51,306,653 741,362 2,398,366 2,326,704 2,203,373 13,083,399 72,059,857

Support costs amount to £2,530,454 (2022: £2,377,008) 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 £332,099 (2022: £258,564) which relates to the group's subsidiary company. Included in the above is £2,751,625 (2022: £2,521,202 ) which relate to restricted funds.

34

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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

Support costs amount to £2,530,454 (2022: £2,377,008) 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 £332,099 (2022: £258,564) which relates to the group's subsidiary company. Included in the above is £2,751,625 (2022: £2,521,202 ) which relate to restricted funds.

35

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
2023
2022
678,214
380,513
151,951
168,640
628,275
506,903
44,627
49,256
541,529
293,002
245,032
98,640
6,075,346
4,795,196
1,152,878
1,758,479
3,565,547
3,608,563
13,083,399
11,659,192
Total
Total
2023
2022
758,255
954,670
2,651,401
2,663,092
544,216
594,478
3,953,872
4,212,240

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
2023
2022
1,955,019
1,802,430
146,185
147,326
169,365
158,284
259,885
268,968
2,530,454
2,377,008
125,976
107,462
-
-
1,199,796
1,093,256
12,464
18,594
3,868,690
3,596,320

36

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
2023
27,821,339
4,313,877
13,189
876,105
2,551,754
79,023
35,655,287
Number
2023
585
96
294
157
152
156
1,440
Number
2023
0
1
2
1
8
11
29
152
229
420
587
1,440
2023
1,087,721
47,924		 Total
2022
26,757,203
3,795,069
18,542
728,631
2,759,780
76,450
34,135,675
Number
2022
586
93
288
205
151
141
1,464
Number
2022
0
0
1
1
8
7
14
175
225
449
584
1,464
2022
1,094,669
31,315

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 £947,900 (2022 : £773,497). A breakdown of this amount is included within the Trustees Report. Please read these in conjunction with this report.

Included in the disbursement of Expenses above are payments to 13 trustees (2022: 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 2023 the number employed was 6 (2022: 6) with a total salary of £78,656 (2022: £66,552) . A breakdown of this amount is included within the Trustees Report. Please read this in conjunction with this report

37

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

9. Tangible Fixed Assets

Group
Cost as at 30 September 2022
Additions
Transfer to Investments
Disposals
Cost as at 30 SEPTEMBER 2023
Accumulated depreciation as at 30 September 2022
Charge in the year
Depreciation on disposals
Accumulated depreciation as at 30 September 2023
Net book value at 30 SEPTEMBER 2023
Net book value at 30 September 2022		 Freehold
Assets in the
course
Fixtures,
property &
of
fittings &
leasehold
Construction
equipment
Total
improvements
2023
208,486,415
5,787,265
214,273,680
1,517,752
454,195
1,971,947
0
(67,000)
(127,465)
(194,465)
209,937,167
6,113,995
216,051,162
22,254,679
4,715,400
26,970,079
1,504,882
225,133
1,730,015
(127,465)
(127,465)
23,759,561
4,813,068
28,572,629
186,177,606
1,300,927
187,478,533
186,231,736
1,071,865
187,303,601

9. Tangible Fixed Assets

Charity
Cost as at 30 September 2022
Additions
Transfer to Investments
Disposals
Cost as at 30 SEPTEMBER 2023
Accumulated depreciation as at 30 September 2022
Charge in the year
Depreciation on disposals
Accumulated depreciation as at 30 September 2023
Net book value at 30 SEPTEMBER 2023
Net book value at 30 September 2022		 Freehold
Assets in the
course
Fixtures,
property &
of
fittings &
leasehold
Construction
equipment
Total
improvements
2023
208,486,415
5,774,503
214,260,918
1,517,752
454,195
1,971,947
(67,000)
(114,703)
(181,703)
209,937,167
6,113,995
216,051,162
22,254,679
4,702,638
26,957,317
1,504,882
225,133
1,730,015
(114,703)
(114,703)
23,759,561
4,813,068
28,572,629
186,177,606
1,300,927
187,478,533
186,231,736
1,071,865
187,303,601

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 nonspecialised 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.

38

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

9a Investments

9a Investments
Value at 30 September 2022
Revaluation in year
Value as at 30 SEPTEMBER 2023		 Investment
property
7,358,000
2,317,189
9,675,189

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

10. STOCKS
Total
2023
Group
Goods for resale
6,932
Office stock
12,041
18,973
Goods for resale are held by local church bookroomsand EPC Services Shop
Charity
Goods for resale
6,932
Office stock
2,300
9,232
Goods for resale are held by local church bookrooms
11. DEBTORS
Total
2023
Group
Trade Debtors
887,952
Prepayments
Other debtors
3,906,440
4,794,392
Charity
Trade Debtors
887,952
Intercompany
0
Other debtors
3,866,006
4,753,958		 10. STOCKS
Total
2023
Group
Goods for resale
6,932
Office stock
12,041
18,973
Goods for resale are held by local church bookroomsand EPC Services Shop
Charity
Goods for resale
6,932
Office stock
2,300
9,232
Goods for resale are held by local church bookrooms
11. DEBTORS
Total
2023
Group
Trade Debtors
887,952
Prepayments
Other debtors
3,906,440
4,794,392
Charity
Trade Debtors
887,952
Intercompany
0
Other debtors
3,866,006
4,753,958		 Total
2022
7,885
19,015
26,900
<br>****
7,883
2,455
10,338
Total
2022
485,653
2,423,085
4,794,392 2,908,738
887,952
0
3,866,006		 485,653
8,571
2,397,696
4,753,958 2,891,920

39

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

12. LONG TERM LOANS ADVANCED
Group and Charity
Advances to individuals
a
Sundry advances less provisions		 Total
Total
2023
2022
263,625
612,586
0
13,974
263,625
626,560

a. Includes advances to 2 officers of the Alliance secured against assets and repayable by date of sale £24,002 (2022: £31,738) No individual loan exceeds £30,000. No new loans were given in the year to any officers of the Alliance.

13. CASH AT BANK AND IN HAND
Net balance held in local church accounts
Central Funds		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2022
18,213,176
18,213,176
19,394,468
8,456,402
901,362
9,357,764.0
10,825,144
26,669,578
901,362
27,570,940
30,219,612

Central funds balance includes £90,619 (2022: £70,153) which relates to groups subsidiary company.

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		 Total
Total
2023
2022
1,612,001
1,326,484
87,864
44,844
457,711
250,240
0
0
2,157,576
1,621,568
Total
Total
2023
2022
1,604,601
1,326,364
75,720
45,630
389,750
205,402
0
0
2,070,071
1,577,396

40

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

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
2023
156,846
604,960
(464,960)
296,846
34,090,468
(2,128,419)
32,258,895
2,128,419
1,979,260
4,049,070
25,933,719
34,090,468		 Total
2022
159,325
618,590
(478,590)
299,325
42,273,763
(6,787,320)
35,785,768
6,787,320
1,787,320
4,281,147
29,417,976
42,273,763

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

£22.25m 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.

16. MOVEMENT ON RESTRICTED FUNDS
Group and charity
At 1 October 2022
Incoming resources
Expenditure
At 30 SEPTEMBER 2023		 CHURCH
ELIM RELIEF
2021 TOTAL
2022 TOTAL
RESTRICTED
ASSOC.
RESTRICTED
RESTRICTED
FUNDS
FUND
FUNDS
FUNDS
£
£
865,413
166,627
1,032,040
801,617
1,965,440
230,586
2,196,026
2,751,625
(2,022,400)
(304,304)
(2,326,704)
(2,521,202)
808,453
92,909
901,362
1,032,040

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.

41

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

17. MOVEMENT ON DESIGNATED FUNDS
The Group
At 1 October 2022
Incoming resources
Expenditure
Transfers
At 30 SEPTEMBER 2023
The charity
At 1 October 2022
Incoming resources
Expenditure
Transfers
At 30 SEPTEMBER 2023		 CAPITAL
2023 TOTAL
2022 TOTAL
ASSETS
DESIGNATED
DESIGNATED
FUND
FUNDS
FUNDS
141,185,923
141,185,923
123,437,169
13,793,525
13,793,525
17,748,754
154,979,448
154,979,448
141,185,923
CAPITAL
2023 TOTAL
2022 TOTAL
ASSETS
DESIGNATED
DESIGNATED
FUND
FUNDS
FUNDS
141,185,923
141,185,923
123,437,169
0
0
0
0
0
0
13,793,525
13,793,525
17,748,754
154,979,448
154,979,448
141,185,923

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
187,478,533
9,675,189
263,625
31,482,943
901,362
(2,157,576)
(2,593,379)
(32,258,895)
(7,322,000)
29,588,992
154,979,448
901,362
General
Designated
Restricted
187,478,532
9,675,189
263,625
31,342,150
901,362
(2,070,071)
(2,593,379)
(32,258,895)
(7,322,000)
29,535,703
154,979,447
901,362		 Total
187,478,533
9,675,189
263,625
32,384,305
(4,750,955)
(32,258,895)
(7,322,000)
185,469,802
Total
187,478,532
9,675,189
263,625
32,243,512
(4,663,450)
(32,258,895)
(7,322,000)
185,416,513

42

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

19. CONTINGENT LIABILITIES

There are no contingent liabilities (2022 : £nil)

20. CAPITAL COMMITMENTS

The Alliance has no major capital commitments other than for church building projects contracted at 30 SEPTEMBER 2023.

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		 2023
2022
£000s
£000s
Office Equipment
Office Equipment
104
98
170
115
274
213
2023
2022
£000s
£000s
Office Equipment
Office Equipment
104
98
170
115
274
213

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 £1,822,000 (2020: £2,049,000).

Contributions to the scheme for the year ending 30 September 2024 are expected to be £1.9 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. The 2022 value is restated because the actuaries made a mistake on the valuation of pension scheme assets.

Employee benefit obligations
Present value of benefit obligation
Fair value of scheme assets
Net Pension Liability		 Value at
Restated Value at
2023
2022
£000s
£000s
£
£
43,850
48,320
(36,528)
(37,896)
7,322
10,424

43

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

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

2023
£000s
Current service cost
1,755
Net Interest cost on the net defined benefit liability
536
Total
2,291
Remeasurements of the net defined benefit liability recognised in Other gains and losses
2023
£000s
Actual return on assets excluding interest income
(848)
Actuarial (losses) / gains
4,419
3,571
Changes in present value of benefit obligation
2023
£000s
Opening defined benefit obligation
48,320
Current service cost
1,755
Interest cost
2,429
Actuarial loss / (gain)
(4,419)
Benefits paid
(4,235)
Closing defined benefit obligation
43,850
Change in fair value of scheme assests
2023
£000s
Opening fair value of scheme assets
37,896
Interest in scheme assets
(848)
Return on assets excluding interest income
1,893
Employer contributions
1,822
Benefits paid
(4,235)
Closing fair value of scheme assets
36,528
The assets of the scheme were:
2023
LDI
4.4%
UK Equities
7.1%
Overseas equities
38.4%
Gilts
4.1%
Corporate bonds
1.4%
Overseas bonds
3.2%
Property
27.7%
Cash/ other
13.7%
100%		 2022
£000s
2,079
585
2,664
2022 (Restated)
£000s
(3,889)
24,090
20,201
2022
£000s
71,650
2,079
1,390
(24,090)
(2,709)
48,320
2022 (Restated)
£000s
41,639
(3,889)
806
2,049
(2,709)
37,896
2022 (Restated)
0.0%
14.0%
30.6%
2.8%
1.6%
5.9%
26.5%
18.6%
100%

44

ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023

_______________

NOTES TO THE FINANCIAL STATEMENTS

Prnicipal Actuarial assumptions 2023 2022
Discount rate 5.38% 5.16%
Inflation assumption (RPI) 3.50% 3.83%
Inflation assumption (CPI) 2.50% 2.83%
Future salary increases
for first 11 years post September 2023 0.00% 0.00%
thereafter 2.45% 2.56%
Deferred pension revaluation 2.50% 2.83%
Benefits accrued pre 6 April 1997 0.00% 0.00%
Benefits accrued April 1997 to 6 April 2005 2.49% 2.75%
Benefits accrued post 6 April 2005 1.79% 1.92%

Assumed life expectancies on retirement at age 65 are:

Male Mortality 100% of ONS National Life tables 2018-2020 Females Mortality 100% of ONS National Life tables 2018-2020 Mortality improvements CMI 2022 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		 2023
2022(Restated)
2021
£
£
£
(43,850)
(48,320)
(71,649)
36,528
37,896
41,639
(7,322)
(10,424)
(30,010)

45