Annual Report and Financial Statements for the Year Ended 31 December 2021
The Sovereign Grace Advent Testimony
Charity registration number: 261489
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
THE SOVEREIGN GRACE ADVENT TESTIMONY
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 14 |
THE SOVEREIGN GRACE ADVENT TESTIMONY
Reference and Administrative Details
Trustees
John Douglas Ivan Foster Martin Humphrey Ian Shaw Stephen Toms
Principal Office 1 Donald Way Chelmsford CM2 9JB Charity Registration 261489 Number Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
Page 1
THE SOVEREIGN GRACE ADVENT TESTIMONY
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2021.
Objectives and activities
Objects and aims
The main object of the charity is the promotion and diffusion of the Christian faith,
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
The Sovereign Grace Advent Testimony was formed in 1918 for the purpose of the promotion and diffusion of the Christian faith, being the doctrine of God’s sovereign grace in the matter of man’s salvation and the truth of the second advent of the Lord Jesus Christ.
To fulfil the aims of the Testimony during 2021, regular monthly meetings have been held, but due to the lockdown, we have been unable to have the meetings in London as usual. But the regular meetings. Including Spring and Autumn conferences, have been broadcast by means of Zoom, enabling friends all over the world to join with us. There have been a variety of speakers at these meetings.
Additionally, various items of literature have been circulated. Each quarter, 3000 copies of the magazine of the Sovereign Grace Advent Testimony, entitled ‘Watching and Waiting’ have been printed and distributed throughout various parts of the world. Although a subscription of £5.00 is suggested, many persons receive the magazine and other literature free of charge, or has been subsidised. as our purpose is to circulate knowledge of the truth. Some other items of literature have been produced.
The trustees of the Testimony for 2021 were Rev John Douglas, Rev Ivan Foster, Pastor Martin Humphrey, Mr Ian Shaw and Mr Stephen A Toms.
Those serving on the Council of the Testimony during 2021 were Mr Peter Fleming, Pastor Martin Humphrey, Rev Brian McClung, Rev David McMillan, Rev Richard Monteith, Mr Andrew Toms, Mr Paul Toms, and Mr Stephen A Toms.
The work of trustees and committee members is carried out voluntarily. No trustee or committee member receives any remuneration at all, nor even an honorarium, for serving as trustee or committee member. Expenses are paid to some when they address meetings.
Financial review
Income for the year amounted to £28,151 (2020: £28,552) and expenditure £27,836 (2020: £22,933). The surplus was added to funds brought forward.
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Trustees' Report
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Structure, governance and management
Nature of governing document
The charity was established by a deed of trust dated 2 March 1949.
Recruitment and appointment of trustees
The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed.
Risk management
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Trustees' Report
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities 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 of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
The annual report was approved by the trustees of the charity on 2 June 2022 and signed on its behalf by:
......................................... Stephen Toms Trustee
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Independent Examiner's Report to the trustees of The Sovereign Grace Advent Testimony
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2021 which are set out on pages 6 to 14.
Respective responsibilities of trustees and examiner
As the charity’s trustees of The Sovereign Grace Advent Testimony you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the The Sovereign Grace Advent Testimony's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of The Sovereign Grace Advent Testimony as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
2 June 2022
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Statement of Financial Activities for the Year Ended 31 December 2021
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 9,382 Investment income 3 5,637 Other income 4 13,132 Total income 28,151 Expenditure on: Charitable activities 5 27,922 Total expenditure 27,922 Gains/losses on investment assets (46,146) Net income 46,375 Net movement in funds 46,375 Reconciliation of funds Total funds brought forward as previously reported 1,273,100 Prior year adjustment 14 263,684 Total funds brought forward as restated 1,536,784 Total funds carried forward 12 1,583,159 |
Total 2021 £ 9,382 5,637 13,132 28,151 27,922 27,922 (46,146) 46,375 46,375 1,273,100 263,684 1,536,784 1,583,159 |
Total 2020 £ (restated) 8,852 7,473 12,227 |
|---|---|---|
| 28,552 | ||
| 22,933 | ||
| 22,933 | ||
| (263,684) | ||
| 269,303 | ||
| 269,303 1,267,481 - |
||
| 1,267,481 | ||
| 1,536,784 |
The notes on pages 8 to 14 form an integral part of these financial statements. Page 6
THE SOVEREIGN GRACE ADVENT TESTIMONY
Balance Sheet as at 31 December 2021
| Note Fixed assets Tangible assets 7 Investments 8 Current assets Stocks 9 Debtors 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net current assets Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 12 |
2021 £ 748,574 406,732 1,155,306 9,880 600 418,213 428,693 (840) 427,853 1,583,159 1,583,159 1,583,159 |
2020 £ (As restated) 748,704 360,586 |
|---|---|---|
| 1,109,290 | ||
| 5,130 594 422,519 |
||
| 428,243 (749) |
||
| 427,494 | ||
| 1,536,784 | ||
| 1,536,784 | ||
| 1,536,784 |
The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on 2 June 2022 and signed on their behalf by:
......................................... Stephen Toms Trustee
The notes on pages 8 to 14 form an integral part of these financial statements. Page 7
THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The Sovereign Grace Advent Testimony meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Tangible fixed assets
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Freehold property owned by the charity is included in the financial statements at its historical deemed cost and depreciated by writing off the difference between the cost and the estimated residual value over the useful economic life. The useful economic life of these assets is so long and residual value so high that any depreciation would not be material. These assets are subject to annual impairment reviews. Provision will be made if there has been any permanent diminution in value.
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Land and buildings not depreciated Furniture and equipment 33% on cost
Fixed asset investments
Fixed asset investments are included at market value.
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
Liabilities
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
2 Income from donations and legacies
| Donations and legacies; Donations Gift aid reclaimed |
Unrestricted funds General £ 9,262 120 9,382 |
Total 2021 £ 9,262 120 9,382 |
Total 2020 £ 8,732 120 |
|---|---|---|---|
| 8,852 |
3 Investment income
| Income from dividends; Dividends receivable from other listed investments Interest receivable and similar income; Interest receivable on bank deposits 4 Other income Rental income |
Unrestricted funds General £ 5,596 41 5,637 Unrestricted funds General £ 13,132 |
Total 2021 £ 5,596 41 5,637 Total 2021 £ 13,132 |
Total 2020 £ 7,120 353 |
|---|---|---|---|
| 7,473 | |||
| Total 2020 £ 12,227 |
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
5 Expenditure on charitable activities
| Production of publications and literature purchases “Watching and Waiting” Printing Rates, light and heat Repairs and maintenance Insurance Expenses of meetings & travelling Printing, postage, advertising, stationery and telecommunications Website, audio & video expenses Gifts Independent examiner’s fee Depreciation |
Unrestricted funds General £ 6,674 2,724 3,306 4,923 953 620 6,158 1,394 200 840 130 27,922 |
Total 2021 £ 6,674 2,724 3,306 4,923 953 620 6,158 1,394 200 840 130 27,922 |
Total 2020 £ 3,912 3,237 3,246 3,826 373 925 6,258 301 - 725 130 |
|---|---|---|---|
| 22,933 |
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
The only other payments made to the trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
7 Tangible fixed assets
| Cost At 1 January 2021 At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 8 Fixed asset investments Cost or Valuation At 1 January 2021 Revaluation At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 9 Stock Books and publications |
Land and buildings £ 748,439 |
Furniture and equipment £ 395 395 130 130 260 135 265 Listed investments £ 360,586 46,146 406,732 406,732 360,586 2021 £ 9,880 |
Total £ 748,834 748,834 130 130 260 748,574 748,704 Total £ 360,586 46,146 406,732 406,732 360,586 2020 £ 5,130 |
|
|---|---|---|---|---|
| 748,439 | ||||
| - - |
||||
| - | ||||
| 748,439 | ||||
| 748,439 | ||||
| 406,732 | ||||
| 406,732 | ||||
| 360,586 | ||||
| 2021 £ 9,880 |
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
10 Debtors
| 10 Debtors | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | ||||||||
| £ | £ | ||||||||
| Prepayments | 480 | 474 | |||||||
| Accrued income | 120 | 120 | |||||||
| 600 | 594 | ||||||||
| **11 Creditors: amounts ** | **falling due ** | **within ** | **one ** | year | |||||
| 2021 | 2020 | ||||||||
| £ | £ | ||||||||
| Accruals | 840 | 749 | |||||||
| 12 Funds | |||||||||
| Balance | Balance | ||||||||
| at 1 | Other | at 31 | |||||||
| January | Incoming | Resources | recognised | December | |||||
| 2021 | resources | expended gains/(losses) |
2021 | ||||||
| £ | £ | £ | £ | £ | |||||
| Unrestricted funds | |||||||||
| General | |||||||||
| General Funds | 1,273,100 | 74,297 | (27,922) | 263,684 | 1,583,159 | ||||
| Balance at | |||||||||
| **Balance ** | at | 31 | |||||||
| 1 January | Incoming | Resources | December | ||||||
| 2020 | resources | expended | 2020 | ||||||
| £ | £ | £ | £ | ||||||
| Unrestricted funds | |||||||||
| General | |||||||||
| General Funds | 1,267,481 | 292,236 | (22,933) | 1,536,784 |
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THE SOVEREIGN GRACE ADVENT TESTIMONY
Notes to the Financial Statements for the Year Ended 31 December 2021
13 Analysis of net assets between funds
| Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ 748,574 406,732 428,693 (840) 1,583,159 Unrestricted funds General £ 748,704 360,586 428,243 (749) 1,536,784 |
Total funds at 31 December 2021 £ 748,574 406,732 428,693 (840) |
|---|---|---|
| 1,583,159 | ||
| Total funds at 31 December 2020 £ 748,704 360,586 428,243 (749) |
||
| 1,536,784 |
14 Prior year adjustment
Investments were previously included at cost. These have now been restated at market value with last year's accounts being restated to include the unrealised gain.
Page 14