**Charity Registration No. 258253** **Company Registration No. 00945991 (England and Wales)** # **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mr A Bennett| |---|---| ||Rev W F McCurrie| ||Mr D Harvey| ||Mr R A Potts| ||Mr C J K Smith| ||Mr E Macdonald| ||Mr J A Knox| ||Dr H J Waters| ||Mr R W Trainer| |**Secretary**|Rev W F McCurrie| |**Charity number**|258253| |**Company number**|00945991| |**Principal address**|22 Little Church Street| ||Rugby| ||Warwickshire| ||CV21 3AW| |**Registered office**|22 Little Church Street| ||Rugby| ||Warwickshire| ||CV21 3AW| |**Auditor**|Plummer Parsons| ||18 Hyde Gardens| ||Eastbourne| ||East Sussex| ||BN21 4PT| |**Bankers**|Barclays Bank PLC| ||North Street| ||Rugby| ||Warwickshire| ||CV21 2AH| ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 9| |Statement of trustees' responsibilities|10| |Independent auditor's report|11 - 14| |Statement of financial activities|15 - 16| |Statement of financial position|17| |Statement of cash flows|18| |Notes to the financial statements|19 - 31| **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The Directors present their report and accounts for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum & Articles of Association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) ## **Objectives and activities** The objects of SGA are to assist the Church in Central and Eastern Europe, Central Asia and Far East Russia to become fully equipped to fulfil the great Commission of Jesus Christ, particularly among its own peoples by training workers, sponsoring leaders, providing Christian literature and distributing aid. The means adopted in order to accomplish the objects of the charity are summed up in the purpose statement – To serve Christ and His Church. The charity believes that the most effective way for the Mission to achieve its objectives is to find and support local churches and individuals who have a vision to make Jesus and the love of God known through their words and actions. Therefore, the charity makes grants, provides teaching, training, gifts in kind and other resources to churches, individuals, and organisations though their four core ministries: **1. Biblical Leadership Training** which prepares the indigenous church for Christian service through our Mission Schools. Over the years, leadership training, theological studies, and other educational training has been offered to students in Poland, Slovakia, Hungary, Serbia, Bulgaria, Romania, Moldova, Ukraine, and Central Asia. Gifted Christian workers recommended by the local churches are given the opportunity to undertake a course of study to equip them for a lifetime of Christian service in the various ministries-pastoral ministry, youth ministry, work among drug addicts, orphans and widows, which brings maximum benefits to the public. Students in Balti Mission School, Moldova, and Almaty Bible Institute, Kazakhstan receive grants. International Correspondence Bible School in Central Asia offers Christian education by extension mainly to Kazakhstan and Tajikistan. **2. Leadership Support** includes providing funds for pioneering churches and groups in new areas, growing and developing existing churches. This offers practical and financial assistance to Christian leaders who cannot be supported by the small churches which they serve. If this support were not available some would be forced to leave their Christian ministry for work opportunities elsewhere. Also, supporting other church projects that include making grants towards the purchase or building of public places of worship and providing transportation for evangelists and pastors, is helping to advance the Gospel. **3. Christian Literature** provides resources such as Bibles and other literature which is helpful in understanding Biblical truth. **4. Crisis Response** includes relief of poverty, medical assistance, drug and alcohol rehabilitation, food aid, emergency aid, disaster relief and other programmes for the benefit of the community. This support helps our partners in showing God’s love in these practical ways. SGA’s Crisis Response ministry is of huge public benefit as the poor and needy, vulnerable and forsaken, forgotten and neglected are being provided for through many different means. Impoverished communities are receiving the necessities for survival and medical care at point of need. The public benefits are enormous and far reaching. - 1 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Activities for the public benefit** The trustees have paid due regard to the Charity Commission guidance regarding Public Benefit. SGA is currently serving the local evangelical churches through its four areas of ministry: Biblical Leadership Training; Leadership Support; Christian Literature; Crisis Response; the purpose being to enable the churches to best serve their own society and offer aid where possible. In all our projects and ministries, the public benefit of individuals, families or communities is paramount. It has always been the desire of the charity from its inception to show compassion to the needy and have a caring attitude toward the helpless. ## **Grant making policy** Grant making is always in response to requests from church leaders in Eastern Europe, Central Asia and Far East Russia or a need observed by staff while on Field trips. Grants are only made to known partners and those recommended by long standing and trusted sources. Trustees have delegated responsibility for grant making from funds to the General Director for grants up to £7,000. Amounts in excess of this must be approved by the Board of Directors. We recognise the need to take steps to prevent the use of grants for money laundering, terrorist activity, bribery and for purposes other than those for which they were given. To this end Trustees hold SGA’s partners accountable for the funds, resources, aid or training they have received and require them to produce regular reports of their activities and use of funding. In addition, SGA staff members visit partners who receive funding or other help from SGA. All our partners understand that the grants, training, or gifts in kind are to be used for the benefit of the community they serve and are to be freely available to all sections of the community. ## **The role of volunteers** The Trustees are very grateful to the many volunteers across the UK who give their time and energy to help Slavic Gospel Association and our partners. Volunteers help occasionally at the office in preparing the bimonthly mail-out. In addition to this we have volunteers who plan itineraries for staff. ## **Achievements and performance** The past year has been one of significant achievements both in the UK and through our partners. It was the desire of the Board of Directors to be able to continue the support of our current number of national Gospel workers and fund all our ongoing projects on the Field at the present level. We continue to look for new ways to share the missional need of Central & Eastern Europe, Central Asia and Far East Russia and raise funds for this work. Exploration of new ways to generate income included the use of Trans World Radio promotions and advertisements in Christian periodicals. During the year achievements have included the expansion of Leadership Support through Project70 where we link UK churches/individuals with sponsored church planters; support for Bible schools and students; transportation for church planters; church building projects; literature projects. Through our partners we have also continued to support children’s work and orphanages; displaced people; widows; summer camps; soup kitchens, Covid-19 emergencies etc. Just a few specific examples of this work include: ## **Training Workers** The main focus of SGA’s ministry is **Biblical Leadership Training** . The teaching centres run in partnership with local churches scattered throughout 6 countries in Eastern Europe and Central Asia. Due to Covid-19 SGA staff were unable to travel to the teaching centres. However, a very positive development has taken place where national believers have taken on the responsibility of instructing their own people. This has resulted in Bible teaching continuing during the pandemic restrictions. While UK based pastors will still be used to help supplement SGA staff members teaching in the mission schools, we believe the use of indigenous pastors is a positive move and will increase in the future. - 2 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The Mission has been able to continue funding for Emanuel University, Oradea, Romania; Odessa Seminary, Ukraine and Almaty Bible Institute, Kazakhstan. ## **Project70** As SGA celebrated its 70 th anniversary during 2020, Project70 was launched to mark this special milestone. From the very outset this project was designed to be a front-line project to advance the Gospel. The aim was to send, and support 70 missionary pastors sponsored by churches and individuals in the UK & Ireland. When planning this project, the Mission did not envisage a worldwide pandemic which curtailed opportunities to promote this initiative. However, at the end of 2020 seventy missionary families were identified for support and fifty-four had sponsorship secured. These were largely from three regions: Ukraine, Far East Russia and Central Asia. This project is still ‘alive’ and will be promoted until June 2021. It is anticipated that the number of missionary families supported through project70 may exceed 70! ## **Church Buildings** Funds provided for Houses of Prayer resulted in one each being dedicated in Moldova and Ukraine. Another building was purchased in Ukraine which requires reconstruction while funds were provided for the restoration of a seriously burned church building in east Ukraine. ## **Loan for Buildings Fund** The ‘Loan for Buildings Fund’ was created as another source of financing buildings for ministry in Eastern Europe and Central Asia. This is to address the problem of continual financial dependency upon the western support. This will bring huge public benefit as church buildings, camp facilities etc. can be completed with funds from the ‘Loan Fund’ and repayment made over an agreed period. During 2020 a loan of £25,000 was provided for Bethlehem Baptist Church, Suceava, Romania. ## **Widows’ Project** Widows’ Fund which provides finance for heating, medical needs, food and clothing in Poland, Serbia, Macedonia, Bulgaria, Romania, Moldova, Ukraine and Central Asia was increased by 80% during winter 2020/21. This account is from Moldova, a country where widows have benefited greatly from this project. ## _**‘In this difficult time, Europe and Russia have forgotten about Moldova; only believers still remember and care about us.’**_ This is how one mayor expressed her deep appreciation of the help provided through SGA’s Widows’ Project. Peter Mihalchiuk, SGA’s Regional Coordinator, shared how he and his team attended gatherings organized jointly by the mayor's office and took place in the village community hall. Two meetings were convened with more than 80 widows present. Everyone listened with great interest and with tears in their eyes as Peter shared. They were in no hurry to leave and asked many questions. All who attended received bags of food. The Mayor later went on to say: _‘As long as there are people who love us, we still have hope’_ . She asked Peter to convey her gratitude to all who donated funds for this great project. Similar meetings were held in other villages and towns. Praise God that already over 400 widows have received assistance in Moldova, and the programme continues! ## **Christian Literature** Dr. Ivan Grozdanov (Macedonia) received funds for the reprint of his evangelistic series of booklets ‘The 12 Pillars of the Christian Faith’. Finance was also provided to Faclia Editura Publishing House, Romania for the translation, editing and publication of _‘Gender Ideology’_ by Sharon James. This will be available for a conference on the same subject at Emanuel University. - 3 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **East Ukraine Emergency Funding** It is the seventh year of war which at times subsides a little and then flares up with renewed vigour producing a spirit of unforgiveness, hopelessness and disbelief. Economic devastation, social issues and disorder became the main factors that determine life in Donbass today. Millions of people have left the Donetsk and Lugansk areas in a search of a peaceful and stable life, while those who stayed simply did not have the opportunity to leave. It is to these people that aid has been directed for the last six years. Our partners pointed out that ‘people valued the project a lot, and they notice the dedication and are thankful for consistency – over 80% of humanitarian organizations have closed their aid programmes by now.’ Ukrainian churches are serving their people by providing food, medicine, warm clothing, heaters, electric kettles, cookers, and other practical helps. SGA has helped to fund such initiatives, and people’s physical needs are being addressed. ## **Covid-19 Response** SGA sought to respond to our many friends as they sought to address and cope with the serious issues raised by Covid-19. Many of our supported missionaries were affected by the uncertainties created by this pandemic. Funds were made available for humanitarian relief efforts in Far East Russia, Central Asia and Moldova in Eastern Europe. The following is a report about the relief effort in Moldova. Sadly, coronavirus is rampant in communities across Moldova, claiming the lives of many, among whom are pastors and church leaders. Sadly, government-led treatments and vaccinations are a long way off for Moldovans. Our partners shared how the SGA-sponsored medical teams in Moldova and Ukraine help patients with Covid-19. Due to lack of hospital spaces most of the sick are treated at home. Only people in serious condition are admitted to hospital. The main problem is testing. Even though a person has medical insurance, free testing is not prescribed until they are hospitalized. The cost of one test is very expensive for an average resident of Moldova - about 40 euros. The other problem is that there is no free medication, and some is quite expensive. Our teams point out that for many people it is a matter of life or death. They simply cannot buy the drugs they need. Through your generous support SGA has been able to increase funds for the Christian medical teams who are carrying out an amazing ministry. ## **Radio Ministry** We continued to help fund a radio programme through "Voice of the Gospel", Romania, and assist in the support of "Voice of the Gospel" in Poland. This ministry brings benefit to many who are housebound, those recuperating from illness, or living in isolated areas where there is no church worship available. SGA sponsored Radio programme ‘Power in Persecution’ offers much needed encouragement and exhortation for the church in Central Asia. ## **Strategies** All projects were funded by donations from churches and individuals throughout United Kingdom and Ireland. SGA staff deputation meetings were reduced due to Covid-19. This restricted opportunity to promote SGA’s projects and aims. During the year the charity published three project leaflets, and six ‘Response Cards’ which accompanied the bi-monthly mail out. They also promoted on-line giving, standing orders and credit card donations. Income from legacies and trusts also provided substantial finance. SGA claimed Gift Aid, where appropriate, which significantly increased income. All the goals set for projects in Central/Eastern Europe, Central Asia and Far East Russia have been fulfilled through deputation, mail-outs and sponsorship. - 4 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Financial review** SGA's financial position on 31 December 2020 continued to be strong. Overall, the levels of income and expenditure for the year were not dissimilar to those of the previous year, excluding income from a generous legacy and substantial Trust income for Project 70. The financial result for the year shows a surplus of £439,852 (2019: surplus of £174,131), before changes in fixed asset valuations. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained for the following reasons. [a] to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice; and [b] to cover administration, fund-raising and support costs without which the charity could not function. The trustees consider it prudent that designated reserves should be sufficient: [a] to avoid the necessity of realising fixed assets held for the charity's use; [b] to cover one year's administration fund-raising and support costs; and [c] to provide a pool equal to 10% of the average charitable expenditure over the preceding two years from which funds can be designated to specific projects. The Board of Directors, which meets three times per year, administers the Charity and by this means monitors and ensures that there is sufficient funding to give working capital for the forthcoming quarter. Occasionally a sub-committee may be appointed by the Board of Trustees to complete a particular task and report back to the Board. The Trustees review their strategy and consider how best to use the surplus free reserves. The level of reserves required to be maintained is around £297,274, which have been designated. Of the £449,197 remaining in unrestricted funds at the year end, the trustees anticipate that these will be used for increased funding for current projects and planned ministry expansion during 2021/22. However, the directors are aware of the need to have large sums readily available sometimes for emergency relief and other charitable purposes. All staff salaries are based on market value and are not performance related. ## **Reserves policy** Trustees keep under review the need for free reserves which are those unrestricted funds not invested in tangible fixed assets or designated for a specific purpose. Currently, to allow SGA to be managed efficiently and to provide a buffer for adverse contingencies, the Trustees’ policy is that such reserves should be maintained at a level of between three and six months expenditure. The level of reserves required to be maintained is around £336,000. This amount excludes the value of all assets as disposing of them could exceed six months. The Trustees review the major risks that the Charity faces and believe that maintaining the reserves at the level stated will enable the Charity to meet its short term commitments in the event of adverse conditions. - 5 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Risk Management** The directors have assessed the major risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. The principle financial risk for SGA is of receiving insufficient regular income to pay grants to its partners in Eastern Europe, Central Asia and Far East Russia. SGA limits this risk by regular communication with donors and actively seeking new donors in particular churches and trust funds. Trustees are aware of other financial risks including possible fraud and have systems in place to mitigate major risks. Cash is handled in both received and distributed gifts. Fraud is countered by two signatories on receipts for all transactions being kept and checked against planned expenditure. Recipients of gifts are known to SGA. The Trustees also regularly review other operational risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks, which are identified as: Loss of key staff: Each member of our small staff performs a significant role. Good staff relations and a sense of Divine calling has led to an excellent retention record. Safety: Staff are briefed on personal safety precautions to be taken while abroad. SGA continues to develop policies and procedures to manage risk and ensure effectiveness, probity and legal and regulatory compliance. ## Data Protection In view of the new data protection regulations, the Trustees have agreed a revised policy. This policy is available on the Charity’s website. ## Safeguarding Vulnerable Groups The Trustees have agreed a policy that outlines the Charity’s guidelines and precautions in relation to vulnerable groups who are being provided for or receiving care through funding from SGA . - 6 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## Project Fund Administration There will be no administration charge deduced from funds that are allocated for special projects [PFA]. All financial gifts for projects will be sent in their totality. ## Key Performance Indicators There are several measures in place to assess the impact that the charity’s activities are having in Eastern Europe, Central Asia and Far East Russia. - All recipients are held accountable to the Trustees of Slavic Gospel Association for the funds, resources, aid or training they have received and are expected to produce regular reports of their activities and use of any funding. - In addition, regular visits are made to those partners in receipt of regular funding; occasional visits are made to all other partners in receipt of significant funding or other help to gather and collate information on progress and impact. - Test, examination and assignment results help monitor the progress of Mission School students. The performance of graduates is monitored by Mission School directors and local church leadership. - Regular reports from participants funded under Leadership Support help the charity to measure their performance. Also, each person is required to participate in regular financial reviews of their income. - Beneficiaries from transportation funds are monitored on a regular basis. - The impact of the charity’s Crisis Response ministry is both measured by regular reports and meetings during ministry trips by SGA staff. - All partners understand that the grants, training or gifts in kind that they receive are in pursuit of the Charity’s objectives and are for the benefit of the community they serve. ## Investments The Board of Slavic Gospel Association has ruled that the policy of the charity is to invest funds in the many urgent needs presented on the Field rather than investment managed funds in the UK. ## **Future Activities** Ministry developments: - Plans are in place for a new mission school to commence in north Serbia. - An official request for a new mission school has been received from a group of churches in Dambovita county, Romania. - An informal mission school request has been received from Turges Mures, Romania. - To be able to continue the support of our current number of nationals and fund all our ongoing projects in Eastern Europe, Far East Russia and Central Asia at the present level. We will seek to raise these required funds through deputation meetings, publishing 3 project leaflets annually, ‘Project Response form’ that accompanies the bi-monthly mail out and credit card/on-line giving. - One year remains of the five year plan for funding 25 students in Almaty Bible Institute and TWR’s programme ‘Power in Percussion’. An extension of funding will be considered during 2021. - SGA’s partnership with Trans World Radio is developing. Plans are in place for providing and distributing Radios, Media Devices and SD cards in Central Asia. - 7 - ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ Publicity: - The monthly online newsfeed ‘Inside Story’ will provide relevant and up to date information from the Field. - The establishment of Phoebe Project is making good progress. It will focus on ladies’ ministries or projects directed by ladies. The anticipated launch of this initiative will be during the latter part of 2021. Phoebe Representatives will promote the Phoebe Projects at ladies’ events in the UK - It is felt that plans to upgrade our publicity [magazine and logo] and website will help to connect the Christian public with SGA’s ministries. ## **Structure, governance and management** The company is a company limited by guarantee, company number 00945991, and charity registration number 258253. The flysheet to the accounts gives details of the charity's principle addresses and those of other relevant organisations. The directors who served during the year are: Mr A Bennett Rev W F McCurrie Mr D Harvey Mr R A Potts Mr C J K Smith Mr E Macdonald Mr J A Knox Dr H J Waters Mr R W Trainer Trustees are not paid for their service in this role other than expenses and n one of the directors has any beneficial interest in the company. A register of Trustees' interests is held to ensure that there are no conflicts of interest and this is updated annually. The directors act as Trustees of the Charity. The directors are the Council Members to whom the overall responsibility of managing and running the Charity is entrusted. However, Rev D. Maxwell, the General Director is responsible for implementing the vision and strategy agreed by Trustees and the day to day running of the organisation. As a co-opted member of the Council, he reports back at Trustees' meetings. All major policy decisions and those concerning capital expenditure are ratified by the Council who meet every four months with occasional online strategy meetings as required. The Council Members are encouraged to propose names of possible future members, taking into account the: - Skills, knowledge and experience - Location and availability Informal followed by formal meetings are held with potential members, leading to a decision by Council as to whether such person s are invited to serve. These procedures are accompanied by furnishing the candidate with the History and Aims of SGA, the Doctrinal Statement and the Responsibilities of a Council Member. A new Council Member is encouraged to undertake further training related to his particular role in the Association. The company has sister organisations in Australia, Canada, New Zealand and the USA. - 8 - ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Asset cover for funds** Note 19 sets out an analysis of the assets attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity's obligations on a fund by fund basis. ## **Auditor** In accordance with the company's memorandum and articles of association, a resolution proposing that Plummer Parsons be reappointed as auditors of the company will be put to the Annual General Meeting. On behalf of the board of directors ## **Rev W F McCurrie** Director Dated: 9 June 2021 - 9 - ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The trustees, who are also the directors of Slavic Gospel Association (British Section) Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and 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; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 10 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED** ## **Opinion** We have audited the financial statements of Slavic Gospel Association (British Section) Limited (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) . In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its 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 requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 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. - 11 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below . The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Based on our understanding of the charity and industry, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006, Charities Act 2011, Bribery Act 2010, employment law, Coronavirus Jobs Retention Scheme (CJRS), Data Protection Act and GDPR. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS 102 and the Charities Statement of Recommended Practice (SORP). We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent activities in the financial statements (including the risk of override of controls), and assessed that the principal risks could relate to posting journal entries to artificially increase income or reduce expenditure, incorrect claims through the Coronavirus Job Retention Scheme, related party transactions, management bias in accounting estimates and judgmental areas of the financial statements such as the allocation of support cost expenditure. Audit procedures performed by the engagement team included: - 12 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED** - Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and - A review of relevant correspondence, including correspondence with HM Revenue & Customs, for signs of potential non-compliance with laws and regulations; and - A review of specific nominal codes within the accounting records that would highlight costs associated with non-compliance of relevant laws and regulations; and - Assessment of identified fraud risk factors; and - Challenging assumptions and judgements made by management in its significant accounting estimates; and - Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and - Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and - Reading minutes of meetings of those charged with governance; and - Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and - Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation, as well as throughout the year. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. - Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. - 13 - ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED** A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Plummer Parsons** 29 June 2021 **Chartered Accountants Statutory Auditor** 18 Hyde Gardens Eastbourne East Sussex BN21 4PT Plummer Parsons is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006. - 14 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**Current financial year**
**Unrestricted Unrestricted**
**funds**
**funds**
**general Designated**
**2020**
**2020**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
998,840
446,102
Other trading activities
**4**
4,949
-
Investments
**5**
3,021
-
Other income
**6**
-
-
**Total income**
1,006,810
446,102
**Expenditure on:**
Activities for generating funds
**7**
38,027
-
Spreading the Gospel in eastern Europe
**8**
375,404
599,629
**Total resources expended**
413,431
599,629
**Net incoming resources before transfers**
593,379
(153,527)
Gross transfers between funds
(431,535)
431,535
**Net income for the year/**
**Net incoming resources**
161,844
278,008
**Other recognised gains and losses**
Other gains or losses
**12**
1,889
2,416
**Net movement in funds**
163,733
280,424
Fund balances at 1 January 2020
285,464
1,231,972
**Fund balances at 31 December 2020**
449,197
1,512,396|**Total**
**2020**
**£**
1,444,942
4,949
3,021
-
1,452,912
38,027
975,033
1,013,060
439,852
-
439,852
4,305
444,157
1,517,436
1,961,593|Total
2019
**£**
1,144,957
25,825
5,628
930
1,177,340
78,534
924,675
1,003,209
174,131
-
174,131
(2,880)
171,251
1,346,184
1,517,435| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 15 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Prior financial year** |**Unrestricted Unrestricted**
**funds**
**funds**
**general Designated**
**2019**
**2019**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
797,525
347,432
Other trading activities
**4**
25,825
-
Investments
**5**
5,628
-
Other income
**6**
930
-
**Total income**
829,908
347,432
**Expenditure on:**
Activities for generating funds
**7**
78,534
-
Spreading the Gospel in eastern Europe
**8**
385,453
539,222
**Total resources expended**
463,987
539,222
**Net incoming resources before transfers**
365,921
(191,790)
Gross transfers between funds
(294,067)
294,067
**Net income for the year/**
**Net incoming resources**
71,854
102,277
**Other recognised gains and losses**
Other gains or losses
**12**
(2,880)
-
**Net movement in funds**
68,974
102,277
Fund balances at 1 January 2019
216,489
1,129,695
**Fund balances at 31 December 2019**
285,463
1,231,972|**Total**
**2019**
**£**
1,144,957
25,825
5,628
930
1,177,340
78,534
924,675
1,003,209
174,131
-
174,131
(2,880)
171,251
1,346,184
1,517,435| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 16 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION STATEMENT OF FINANCIAL POSITION** ## _**AS AT 31 DECEMBER 2020**_ |**Notes**
**Fixed assets**
Property, plant and equipment
**13**
**Current assets**
Inventories
**14**
Debtors falling due after one year
**15**
Debtors falling due within one year
**15**
Cash at bank and in hand
**Current liabilities**
**16**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds - Designated
Unrestricted funds - general|**2020**
**£**
**£**
152,224
4,555
61,882
89,135
1,664,125
1,819,697
(10,328)
1,809,369
1,961,593
1,512,396
449,197
1,961,593|**2019**
**£**
**£**
159,952
3,206
50,826
105,999
1,209,217
1,369,248
(11,765)
1,357,483
1,517,435
1,231,972
285,463
1,517,435| |---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 11 June 2021 Rev W F McCurrie **Trustee** Mr C J K Smith **Trustee** **Company Registration No. 00945991** - 17 - ## **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**20**
**Investing activities**
Purchase of property, plant and equipment
Proceeds on disposal of property, plant
and equipment
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
**£**
451,887
-
-
3,021
3,021
-
454,908
1,209,217
1,664,125|**2019**
**£**
**£**
90,788
(6,713)
2,501
5,628
1,416
-
92,204
1,117,013
1,209,217| |---|---|---| - 18 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **Charity information** Slavic Gospel Association (British Section) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 22 Little Church Street, Rugby, Warwickshire, CV21 3AW. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the date of this report, there exists considerable uncertainty regarding the potential impact of the Coronavirus and the economic consequences, both within the U.K. and overseas, which may result from government policies to contain the spread. The duration and geographical extent of any possible lockdown or future government policies are unknown. Whilst we are unable to predict what the economic consequences may be and the impact on the c harity ’s future ability to continue trading, we have continued to use the going concern basis as appropriate in the preparation of these accounts. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. The charity's income consists of voluntary income, income from charitable activities and investment income. The charity is not registered for VAT. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised in the period of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 19 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **(Continued)** Income from grants and contracts is recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that income will be received and the amount can be measured reliably and is not deferred. Fundraising and trading income consists of monies generated from the sale of books, CD's and cards, as well as registration fees from delegates at the Charity's annual supporters conference. This is also recognised as income when receivable. Investment income is wholly bank and stock interest generated and is recognised in the SoFA when receivable. ## **1.5 Expenditure** All expenditure is incurred in pursuit of the Charity's objects as laid down in the Memorandum and Articles of Association and is recognised in the accounts when payable. The Charity's accounting system is designed to trace general fund expenditure and distinguish it from that directly attributable to a project. All expenditure incurred on designated funds (see analysis at note 8 ) is treated as direct charitable expenditure for charitable activities. General fund expenditure is allocated to 5 broad headings of Administration, Promotions, Council Expenses, Eastern European Field and UK Home. Administrative expenditure is treated as support costs for charitable expenditure whilst promotions costs are shown as costs of generating voluntary income as these relate to the production of promotional material. Council expenses are the costs of holding regular council meetings including re-imbursing travelling expenses of the council members and these are included as governance costs. Governance costs also includes fees of the auditors to meet external scrutiny requirements. Eastern European Field expenditure is treated activities undertaken directly for charitable activities. UK Home expenditure is split between costs of generating voluntary income and activities undertaken directly for charitable activities as it includes the costs of representatives who also make trips to eastern Europe. ## **1.6 Property, plant and equipment** Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |Buildings|Straight line over fifty years| |---|---| |Computer equipment|25% Reducing balance| |Fixtures and fittings|15% Reducing balance| |Motor vehicles|25% Reducing balance| The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. - 20 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **(Continued)** During the previous year, it was deemed appropriate that land be depreciated at 0%. 25% of the Land and Buildings value has been appropriated to land and the cumulative effect of the historic depreciation has been reversed. This is considered as a change of estimate, being a change in depreciation rate. Tangible fixed assets are capitalised if they can be used for more than 1 year and cost at least £1,000. ## **1.7 Impairment of non-current assets** At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Inventories** Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 21 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any material unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **1.13 Foreign exchange** Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources. ## **1.14 Loans issued** Loans are occasionally issued to supported projects in Eastern Europe. These funds are repayable over a set term and no interest is charged. The amounts recoverable are included as Receivables in the accounts. If in the future the trustees decide not to request repayment of these amounts, they will be written off as grants paid under Direct Charitable Activities. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 22 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **3 Donations and legacies** |**Unrestricted Unrestricted**
**funds**
**funds**
**general Designated**
**2020**
**2020**
**£**
**£**
Donations and gifts
424,081
439,120
Legacies receivable
510,669
6,982
Government furlough
grants
64,090
-
998,840
446,102
**Donations and gifts**
Donations and gifts
286,340
313,596
Donations from trusts
37,850
75,251
Gift aid recovered
28,025
33,335
Conference offerings
26,556
1,805
Donations to fulltime
staff
42,548
14,282
Donations to voluntary
representatives
2,762
851
424,081
439,120|**Total**Unrestricted Unrestricted
funds
funds
general Designated
**2020**
2019
2019
**£**
£
£
863,201
450,440
347,432
517,651
347,085
-
64,090
-
-
1,444,942
797,525
347,432
599,936
228,158
291,889
113,101
62,950
1,755
61,360
26,364
32,788
28,361
49,254
-
56,830
79,291
20,633
3,613
4,423
367
863,201
450,440
347,432|Total
2019
£
797,872
347,085
-
1,144,957
520,047
64,705
59,152
49,254
99,924
4,790
797,872| |---|---|---| Legacies which are expected but which do not meet the recognition criteria for Legacies Receivable. are considered as Contingent Assets. As these amounts generally can't be valued with reasonable certainty, these are not separately disclosed. ## **4 Other trading activities** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2020**|2019| ||**£**|£| |Conference expenses|-|13,743| |Sale of books, CDs and cassettes|4,949|12,082| |Other trading activities|4,949|25,825| - 23 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **5 Investments** |**6**
**7**|**Unrestricted**Unrestricted
**funds**
funds
**general**
general
**2020**
2019
**£**
£
Interest receivable
3,021
5,628
**Other income**
**Total**Unrestricted
funds
general
**2020**
2019
**£**
£
Net gain on disposal of tangible fixed assets
-
930
**Activities for generating funds**
**Unrestricted**Unrestricted
**funds**
funds
**general**
general
**2020**
2019
**£**
£
Costs of generating voluntary income
Conference expenses
5,656
27,387
Advertising
17,883
21,562
Support costs
14,884
26,505
Costs of generating voluntary income
38,423
75,454
Costs of goods sold and conference expenses
Other trading activities
(396)
3,080
38,027
78,534| |---|---| - 24 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **8 Spreading the Gospel in eastern Europe** ||**Spreading**|**Spreading**| |---|---|---| ||**the Gospel**|**the Gospel**| ||**in eastern**|**in eastern**| ||**Europe**|**Europe**| ||**2020**|**2019**| ||**£**|**£**| |Direct costs|599,631|539,221| |Telephone|816|893| |Printing, postage, stationery and computer costs|109|270| |Motor|2,423|4,625| |Sundry expenses|1,025|-| ||604,004|545,009| |Share of support costs (see note 9)|359,296|361,051| |Share of governance costs (see note 9)|11,733|18,615| ||975,033|924,675| |**Analysis by fund**||| |Unrestricted funds - general|375,404|385,453| |Unrestricted funds - Designated|599,629|539,222| ||975,033|924,675| - 25 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**9**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
326,599
-
Depreciation
7,726
-
Direct costs
534
-
Rent and rates
1,315
-
Insurance
2,652
-
Light and heat
1,020
-
Repairs and
maintenance
144
-
Telephone
1,645
-
Printing, postage,
stationery and computer
costs
20,179
-
Motor and travel
8,207
-
Sundry expenses
4,159
-
Audit fees
-
6,481
Accountancy
-
5,252
Trustees' meeting costs
-
-
374,180
11,733
Analysed between
Fundraising
14,884
-
Charitable activities
359,296
11,733
374,180
11,733|**2020**
**£**
326,599
7,726
534
1,315
2,652
1,020
144
1,645
20,179
8,207
4,159
6,481
5,252
-
385,913
14,884
371,029
385,913|Support
costs
Governance
costs
£
£
327,113
-
9,528
-
2,286
-
1,276
-
2,469
-
948
-
137
-
2,357
-
19,113
-
17,829
-
4,500
-
-
6,502
-
9,507
-
2,606
387,556
18,615
26,505
-
361,051
18,615
387,556
18,615|2019
£
327,113
9,528
2,286
1,276
2,469
948
137
2,357
19,113
17,829
4,500
6,502
9,507
2,606
406,171
26,505
379,666
406,171| |---|---|---|---| During the year payments were made to the auditor of £6,481 (2019: £6,502) for audit services and £5,252 (2019: £9,507) for non-audit services. ## **10 Trustees** None of the trustees (or any persons connected with them) received any remuneration during the year, and during the year none were reimbursed for any expenses (2019 - 4 were reimbursed for £1,020 of expenses ) to cover travelling expenses incurred on charity business. Total donations received from directors, key management personnel and their related parties, amounted to £21,745 (2019: £14,985). There are no other related party transactions requiring disclosure. The charity was under the control of the directors throughout the year. - 26 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **11 Employees** The average monthly number of employees during the year was: |Mission team members/Field workers
Administration and promotion
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
7
3
10
**2020**
**£**
272,879
24,012
29,708
326,599|**2019**
**Number**
7
3
10
**2019**
**£**
271,428
25,697
29,988
327,113| |---|---|---| The total remuneration paid to key management personnel was £37,576 (2019: £33,004). There were no employees whose annual remuneration was £60,000 or more. ## **12 Other gains or losses** |**Other gains or losses**|||| |---|---|---|---| ||**Unrestricted Unrestricted**||Unrestricted| ||**funds**|**funds**|funds| ||**general**|**Designated**|general| ||**2020**|**2020**|2019| ||**£**|**£**|£| |Foreign exchange gains|(1,889)|
(2,416)|
2,880| - 27 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**13**
**Property, plant and equipment**
**Cost**
At 1 January 2020
At 31 December 2020
**Depreciation and impairment**
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019|**Buildings**
**Computer**
**equipment**
**Fixtures and**
**fittings**
**Motor vehicles**
**£**
**£**
**£**
**£**
151,498
6,713
48,797
68,763
151,498
6,713
48,797
68,763
13,635
1,678
48,115
52,393
2,272
1,259
102
4,093
15,907
2,937
48,217
56,486
135,591
3,776
580
12,277
137,864
5,035
683
16,370|**Total**
**£**
275,771
275,771
115,821
7,726
123,547
152,224
159,952| |---|---|---| All tangible fixed assets are for charitable use other than a small quantity of office equipment used in administration. ## **14 Inventories** |Finished goods and goods for resale
**15**
**Trade and other receivables**
**Amounts falling due within one year:**
Trade receivables
Other receivables
Prepayments and accrued income
**Amounts falling due after more than one year:**
Other receivables
**Total debtors**|**2020**
**£**
4,555
**2020**
**£**
64,854
16,835
7,446
89,135
**2020**
**£**
61,882
151,017|**2019**
**£**
3,206
**2019**
**£**
85,445
11,382
9,172
105,999
**2019**
**£**
50,826
156,825| |---|---|---| - 28 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **16 Current liabilities** |Trade payables
Accruals and deferred income|**2020**
**£**
638
9,690
10,328|**2019**
**£**
2,066
9,699
11,765| |---|---|---| ## **17 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £29,708 (2019: £29,988). ## **18 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Designated**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 31
December 2020 are
represented by:
Property, plant and
equipment
-
152,224
Current assets/
(liabilities)
449,197
1,360,172
449,197
1,512,396|**Total**Unrestricted
funds
Designated
funds
**2020**
2019
2019
**£**
£
£
152,224
-
159,952
1,809,369
285,463
1,072,020
1,961,593
285,463
1,231,972|Total
2019
£
159,952
1,357,483
1,517,435| |---|---|---| - 29 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **19 Designated funds** The income funds of the charity include the following project funds which have been partly funded by specified donations and partly by monies set aside out of unrestricted funds by the trustees for specific purposes: |**Balance at 1**
**January**
**2020**
**£**
Support of East
European Ministries
45,281
Support of Mission
Schools
10,308
East European
Leadership Support
340,754
Literature Ministries
34,000
Radio Ministries
21,858
Vehicles for
Eastern Europe
43,336
Widows Project
7,354
Special Projects
218,263
Media/Website
10,080
Loans issued
150,000
881,234|**Movement in funds**
**Receipts**
**Payments**
**Fund**
**transfers**
**Revaluations,**
**gains and**
**losses**
**Balance at 31**
**December**
**2020**
**£**
**£**
**£**
**£**
**£**
26,599
(20,126)
-
2,416
54,170
9,506
(48,037)
80,000
-
51,777
275,375
(274,399)
60,000
-
401,730
9,112
(19,954)
20,000
-
43,158
4,911
(12,800)
15,000
-
28,969
3,738
(8,149)
-
-
38,925
51,420
(40,510)
20,000
-
38,264
65,440
(175,654)
290,000
-
398,049
-
-
-
-
10,080
-
-
150,000
446,101
(599,629)
485,000
2,416
1,215,122| |---|---| The Project Fund payments as shown in this note include monthly contributions to General Funds for management and administration costs directly attributable to the work. These are provided at a maximum of 15% (9% admin. plus 6% publicity) on all gifts. The total transferred in this way is shown in notes 7 and 9 above. Transfers between the project and emergency funds represent monies which have been utilised from General funds to cover the work carried out towards these individual projects. Each of the items listed above represents an area of activities that the charity supports within Eastern Europe. Together these funds for the “Project Funds” which the charity operates. These are as a result of donations given for use towards a particular project, but for which the charity retains ultimate discretion as to its application. The transfers into these funds represent monies from General Funds to cover deficits on individual funds, as well as additional monies set aside by the trustees for use towards these projects. |**Other Designated Funds**
Emergency fund
190,788
Tangible fixed
assets
159,951
1,231,973|-
-
446,101|-
-
(599,629)|(45,739)
(7,726)
431,535|-
-
2,416|145,049
152,225
1,512,396| |---|---|---|---|---|---| - 30 - **SLAVIC GOSPEL ASSOCIATION (BRITISH SECTION) LIMITED SLAVIC GOSPEL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **19 Designated funds** ## **(Continued)** In order to increase the accuracy of the presentation of the financial status shown in the accounts, it has been decided by the Trustees to designate funds to the value of the tangible fixed assets. This is to reflect the restrictions that the assets impose upon the funds held; the money tied up in the property is not free to be spent without the assets being sold to realise these funds. Monies have also been designated to retain sufficient funds to meet the charity's obligations should further funds not become available. The justification of this amount is as follows: - To avoid the necessity of realising fixed assets held for the charity's use (see details above); - To cover one year's administration, fund-raising and support costs; - To provide a pool equal to 10% of the average charitable expenditure over the preceding two years from which the funds can be designated to specific projects. Transfers to/from the Fixed asset fund represent the net movements on the tangible fixed assets during the year. |**20**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Foreign exchange differences
Gain on disposal of property, plant and equipment
Depreciation and impairment of property, plant and equipment
Movements in working capital:
(Increase)/decrease in inventories
Decrease/(increase) in trade and other receivables
(Decrease) in trade and other payables
**Cash generated from operations**
21
**Analysis of changes in net funds**
The charity had no debt during the year.|**2020**
**£**
439,852
(3,021)
4,305
-
7,726
(1,346)
5,808
(1,437)
451,887|**2019**
**£**
174,131
(5,628)
(2,880)
(930)
9,528
1,152
(76,383)
(8,202)
90,788| |---|---|---| - 31 -