# **# 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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
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**
**_________________________________________________________________________________**
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**
**_________________________________________________________________________________**
## **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**
## **_________________________________________________________________________________**
## **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:
- Committee structure with regular meetings.
- Detailed terms of reference for each committee, together with formal agendas and minutes of all meetings.
- Accountability of all national officers and lines of reporting clearly established.
- Retaining third party consultants in particularly sensitive areas such as Human Resources and Child Protection etc.
- Regular update training for trustees and officers.
- Budget and management accounting and regular financial reporting.
- Strong internal controls.
- Subscription to relevant journals, literature and regular “watchdog” reports from various advisors.
- The development of the Elim Hub website resource to keep local church ministers and administrators informed and updated.
- The provision of charity specific insurance policies covering not only fixed assets of the Alliance but also major public and employment liabilities.
- An independent Audit and Governance Committee is in place with primary responsibility to review governance and processes.
## **Grant Policy**
No donations were made to political organisations. Grants to external bodies are only made to those organisations and activities which are compatible with our charitable objectives. Grants to individuals are in keeping with the parameters of the relevant fund and restricted to those participating in ministry within the Alliance activities, or to alleviate poverty or hardship circumstances. Other national or central 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**
**_________________________________________________________________________________**
## **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**
**_________________________________________________________________________________**
## **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**|
13
**ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023**
**_________________________________________________________________________________**
**----- 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**|
14
**ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023**
## **_________________________________________________________________________________**
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles set out in the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group continue in operation.
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Trust Deed. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditors**
Moore Kingston Smith LLP, having indicated willingness to continue as auditors, will be retained serve as such for the new financial year.
Signed by order of the National Leadership Team
## **Chris Cartwright**
## **7 May 2024**
18
**ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023**
**_________________________________________________________________________________**
**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:
- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 30 September 2023 and of the group’s and parent charity’s incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended) and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
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:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out above, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report in accordance with regulations made under those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
20
**ELIM FOURSQUARE GOSPEL ALLIANCE FINANCIAL STATEMENTS YEAR ENDED 30 September 2023**
**_________________________________________________________________________________**
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of
21
**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:
- assets received for distribution by the Alliance are recognised only when distributed
- assets received for resale are recognised, where practicable, when receivable or otherwise when sold
- gifts of fixed assets for charity use, or funds for acquiring fixed assets for charity use are accounted for (as restricted funds), immediately on receipt.
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:
- expenditure incurred directly to the fulfilment of the charity’s objectives (direct charitable), including support costs
- expenditure incurred directly in the effort to raise voluntary contributions (fundraising and publicity)
- the purchase of properties overseas from funds provided by the International Missions Board is included in the statements under restricted funds expenditure and not treated as tangible fixed assets, except where held on behalf of the Board by the Elim Trust Corporation.
- Direct costs attributable to a single activity are allocated directly to that activity. Support costs and governance costs are allocated by management based on the most appropriate categorisation and split between categories where appropriate. See note 6a.
- grants payable as approved by management, charged against the relevant fund
## **FUND ACCOUNTING**
Restricted funds are applied for specified purposes laid down by the donor. The restriction on these funds is fulfilled on application to their specific purpose, and the expenditure for those purposes is charged to the fund. For Elim Relief Association 10% of income is allocated to the International Missions Fund in respect of overheads and support costs.
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**
**_________________________________________________________________________________**
## **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**|
|---|---|
* 2022 Pension obligation restated
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**|
|---|---|
* 2022 Pension obligation restated
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**|
|||`
**`**
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