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2020-09-30-accounts

COUNTIES (Formerly Counties Evangelistic Work)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Charity registration number: 264278 Company registration number: 01041761

COUNTIES (Formerly Counties Evangelistic Work)

YEAR ENDED 30 SEPTEMBER 2020

CONTENTS page
Report of the trustees 1 – 10
a) Constitution & Objects
b) Review of Developments during the year
c) Results and Financial Review
d) Covid-19 Impact & Response
e) General Public Benefit
f)
Risks Policy
g) Reserves and Investment Policy
h) Related Parties and Relationships with other Charities
i)
Relations with Financial Supporters
j)
Structure, Governance and Management
k) Statement of trustees’ responsibilities
Legal and administrative information 11
Report of the independent examiner 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cashflows 15
Notes to the financial statements 16 – 26

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

The trustees, who are also Directors for the purposes of the Companies Act, submit their Annual Report and the financial statements for the year ended 30 September 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (FRS 102 2015) Accounting and Reporting by Charities in preparing the annual report. The financial statements have been prepared in accordance with the accounting policies set out on pages 16 and 17 and comply with the charity’s governing documentation and applicable law.

a) Constitution & Objects

The charity is a charitable company, Counties (formerly Counties Evangelistic Work), number 01041761, but is known publicly as Counties. The charity (registered number 264278) was founded in 1899 and was set up as a company on 9 February 1972, limited by guarantee. It is governed by the Memorandum and Articles of Association. The object of the charity, as outlined in the Memorandum and Articles of Association are “To advance the Christian Faith by such means being charitable as the Trust may determine”.

b) Review of Developments During the Year

The following summarises the main developments during 2019/20. The trustees last met for a retreat to review the organizational strategy in April 2017, and had been due to meet in March 2020, however due to Covid19 restrictions this has been initially delayed until March 2021 or October 2021. Counties continues to pursue its mission of making Jesus known, and equipping local churches in this task, through supporting Evangelists, developing and utilizing Resources, and through the development of Training.

• Evangelists

The number of self-employed evangelists financially supported with a standard-gift or part-gift at the yearend was 51, including many seniors and widows, which equates to 36 standard gifts. This has increased in recent years (see chart below). These figures do not include spouses, many of whom are also very active in the work. In addition, Counties has seven Associate Evangelists who are able to benefit from fellowship, training and conferences, however they do not receive financial gifts.

----- Start of picture text -----
40
38
-
monthly standard gift equivalents to evangelists 36
34
32
30
28
26
24
22
----- End of picture text -----

Counties is delighted to continue to see growth and impact in the area of training evangelists. Liz David, Jonny Gios, Aaron Shah and Jackson Turner joined Counties on the Evangelists Training Programme (ETP) in September 2020. Whilst much of their programme has been run online, via Zoom, this has opened up new avenues for Counties in its training development, and we plan to pursue ways to develop this style of learning. We have committed to take on trainee evangelists in a variety of settings, and not all will become Counties evangelists. However, at the end of their training period with Counties on ETP we were delighted that Caleb Mathewos, Lee Marsland and Jacquie Bodman became Counties evangelists. During the year Shaun Almond, Mark Bingham and Jamie Broadey transferred from being trainees to become Associate Evangelists. Much of this exciting development has taken place under the leadership of Beverley Bedford who transferred from being a Counties evangelist to join the employed staff team as our Training Officer.

1

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

During the year we lost Tom Bathgate who sadly passed away in February 2020. We continue to enjoy fellowship with his widow Madelene.

The evangelists, in seeking to fulfill the charity’s objects, are involved in a host of initiatives. The past year has been exceptional due to Covid19, however in normal circumstances these include holiday clubs for children and seniors; training; drop-in centers for support and advice regarding parenting, relationships and finance; youth camps; focus groups for men; door-to-door outreach; street evangelism; small groups; school visits; visiting prison and helping ex-offenders; Christian education and preaching. Some evangelists work with all ages and backgrounds, whilst others have a specific focus such as on international students, teenagers, children, men, women, migrants, international merchant seafarers or other communities. Some of the more experienced evangelists are involved in mentoring other evangelists or working with churches to help them develop more effective teaching and evangelistic programmes.

Evangelists plan to meet at least twice each year in six regional Cluster groups: South West, South Central, East of England, Wales and Borders, Midlands and North of England. Each Cluster is led by a link evangelist who co-ordinates the gatherings. The purpose of the Clusters is to share personal and pastoral support, to enable training, and to consider the wider strategic opportunities in each region and across the UK. The regional gatherings are attended by the CEO, the Training Officer, and Trustees within each region.

In addition to these regional gatherings, Counties seeks to continue to have an annual conference for the evangelists, trustees and staff. In 2018 this was replaced by our joint commitment to the Living the Passion conference. Following the success of 2019, the second new-style Counties Day had been planned for June 2020, however this had to be cancelled, again due to Covid19.

Some of the information 75,599 from our 2019-20 online chats about Impact Report the Christian faith

1,682 indications of salvation

1,228 86,822 pupils talks were given listened to stories of Jesus at local churches presented by Counties evangelists by Counties evangelists and associates 551 schools were visited by Counties evangelists

• Training

2

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

• Resources

School resources: Unfortunately, during the past year Covid-19 meant that planned activities during March– October 2020 were cancelled; however, we were encouraged that the majority of activities were postponed until visits will be possible.

3

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

• Counties Planting Network

In April 2019 Counties launched the Counties Planting Network, with the vision to

work with local churches in the training, equipping and supporting of church planting and replanting teams across the UK. Counties has partnered with M4 Europe, and through the M4 programme we are able to Assess, Train and Coach church planting team leaders and their teams. M4UK launched in September 2019

with 34 attendees from 5 church plants from Ross-on-Wye, Somerset (two teams), Kendal, and London. The March 2020 gathering was cancelled due to Covid-19, but we were delighted that 64 attended the online event in September 2020. This represented a total of 10 teams, with a number of observers looking at the programme, with the potential for new teams to join in the coming year. Our goal is to see 30–60 new teams trained and involved in church planting or replanting by 2024. This is a significant development in our work, but in many ways is a return to the historical roots of Counties, where the ministry of the evangelists often led to the establishment of new churches.

c) Results and Financial Review

Income and expenditure for the year are shown in the Statement of Financial Activities on page 13. Income for the charity has reduced to £835,115 (2019: £918,843), with the largest change being trust income £497k (2019: £555k). Expenditure reduced to £908,184 (2019: £961,935). The overall position was a net deficit of £119,857 (2019: deficit £38,518). Movements on individual funds are summarized in note 17.

----- Start of picture text -----
1000000
800000 Income & Expenditure
600000
2020 2019
400000
200000 net movement
total expenditure of funds
0
total income gains on
-200000
investments
-400000
-600000
-800000
-1000000
-1200000
----- End of picture text -----

Unrestricted Funds show net expenditure of £94,394, including losses on investments of £46,788. Income for the year increased to £617,185 and Legacy income was £94,843. Legacies cannot be regarded as regular income, needless to say the trustees are grateful to all those who have made provision in their will.

The following graph shows how legacies have fluctuated over the last twelve years, but on average the charity has received £115k a year. Without the legacy income stream much of the work of Counties would not be possible. As we never know when legacies will be received, we have to be slightly more cautious than we would like with respect to the use of reserves. This does make it more difficult for the trustees when we set our annual budget. Our approach is to set a budget deficit for the year ahead in faith that legacies will be forthcoming to cover that deficit, but also knowing that there are adequate free reserves are available if the Lord’s timing of legacies is different.

4

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

----- Start of picture text -----
£250,000
Legacy income
£200,000
£150,000
£100,000
£50,000
£-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
----- End of picture text -----

The following analysis of total expenditure represents £908,184 (2019: £961,935). Within this Unrestricted Fund expenditure is £664,791 which is down on that for 2019 which was £706,625. Within Counties significant effort is expended to ensure that we maximise the use of funds for charitable purposes where the need is greatest. This is capably managed by the team at Westbury. There are always other needs that we could meet, and we trust in the Lord to provide.

----- Start of picture text -----
800000
Expenditure 2020 2019 4%
700000 2020 expenditure
600000 Raising funds
500000 26%
400000
Charitable activities:
300000 Unrestricted
200000
Charitable activities:
100000 70% Restricted
0
Raising funds Charitable Charitable
activities: activities:
Unrestricted Restricted
----- End of picture text -----

The trustees are eager to see the work of Counties grow; we have an expectation to appoint more evangelists and hopefully some of those in new areas across the UK. We want to see greater use of the exhibitions and also the rollout of Neighbourhood Chaplains. We also hope to enhance what we can offer in terms of training for current and potential evangelists. We continue to seek ways to increase and diversify our income base; we have been encouraged that some areas are already bearing fruit.

The areas we have been looking at are:

The Restricted Funds are the GSUS Live, the Evangelists Fund, the Counties Planting Network and TES.

5

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

- d) Covid 19 Impact & Response

During the Covid19 outbreak, although many of the charity’s activities were restricted, we have looked for new and creative ways to fulfil our charitable goals.

Charity activities

Counties put in place control measures for the charity’s operations to mitigate against transfer risks including:

Financial implications of Covid-19: the impact to Counties has been significant in some areas including:

6

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

Long term implications: There are no material uncertainties about the charity’s ability to continue as a going concern, despite the significant uncertainty caused by the worldwide Covid-19 crisis. Whilst the Trustees expect there to be a significant impact on the charity’s operations and reserves in the coming years, the charity has sufficient reserves to be able to meet these challenges.

e) General Public Benefit

The trustees acknowledge the guidance of the Charity Commission in respect of Public Benefit and the Advancement of Religion and have paid due regard to it in the affairs of the charity. Through the varied ministries of the evangelists and our resources we see

Christian belief offers people a set of values by which to live, to make moral decisions and to interact with others. The majority of Counties arranged events and services are open to the public and these benefits have helped to meet religious, spiritual and educational needs, as well as supporting and helping individuals irrespective of background and status.

f) Risks Policy

The trustees annually review the principal risks the charity faces including analysing the likelihood and impact of each risk. The Operations Manager carries responsibility as the Risk Assessment Manager. The principal risks currently identified, and strategies for managing these risks are as follows:

g) Reserves and Investment Policy

The Charity is reliant on voluntary and investment income which has fluctuated significantly in the past. At their annual reserves policy review Counties trustees agreed the target level for total liquid reserves should be £500,000-600,000 (base reserves of £300,000, plus free reserves of six months’ expenditure approximately £200,000-300,000). The trustees aim to hold these unrestricted reserves to meet the objectives of:

7

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

The Charity holds liquid reserves, being those Unrestricted Funds not held as fixed assets, designated for specific purposes or otherwise committed at the balance sheet date of £541,453 (see note 17 Total Unrestricted funds £650,669 less amount invested in tangible fixed assets £109,216, see Balance sheet). These liquid reserves fall in line with our reserves policy satisfying the need to hold base reserves of £300,000 and leaving £241,453 of free reserves.

Legacies are an important part of the income received by Counties. By nature, this source can fluctuate significantly. Consequently, when setting the annual budget, the trustees plan to consume existing free reserves over a three-year period in the hope that they will be replenished by further legacies during that period. The trustees believe that this policy enables the charity to invest in sustainable growth and new strategic developments so that the charity can deliver a consistent quality of work over the years.

The charity is advised on investments by Brewin Dolphin Securities Limited and regular contact is maintained with them by means of reports and an annual visit. They have complete discretion, within stated guidelines, over investment decisions and changes in investment holdings have taken place during the year. Their performances are measured against relevant benchmark portfolios. An Investment Policy is documented and reviewed annually by the trustees. Whilst all major investments are available to the charity, we aim for all investments to be in keeping with the nature of the charity and the views of the trustees.

Day to day financial management is the responsibility of the Operations Manager, Jonathan Brooks-Martin, who circulates to the Finance Sub Committee monthly management accounts and cashflows as well as quarterly valuations of the investment portfolio. The latter includes reports outlining performance against benchmarks, a summary of market performance and an investment strategy outlook. The Finance Committee, which comprises four trustees, the CEO and the Operations Manager, meets at least twice a year and keeps all trustees informed at their meetings. The full body of trustees has to approve any policy changes.

h) Related Parties and Relationships with Other Charities

The trustees, who are all Directors, received no remuneration as a result of their office during the year. No Trustee or other person related to the charity, apart from as detailed in note 19, had any personal interest in any contract or transaction entered into by the charity during the year.

In the furtherance of its objects, the charity has entered into strategic alliances with other charities.

8

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

i) Relations with Financial Supporters

Counties greatly values the support it receives from individuals, churches and trusts. We could not fulfil our objectives without the financial and prayer support that we receive from these individuals and organisations.

Activities: Counties evangelists and staff spoke in hundreds of churches across the country during the year, and we hosted our first revised Counties Family Day. During the last year, 63 new supporters joined us in mission by making their first gift to Counties. We continue to build towards Counties’ future by encouraging regular support, including 10 people who began to give monthly to Counties. We give thanks that donations to some of our newer initiatives e.g. Key to Life, Neighbourhood Chaplains & Counties Planting Network, continued to grow. In the past year Counties did not use commercial fundraisers.

Protection: We seek to be respectful and relational in all our interactions with our supporters. We seek to build trust with our supporters by being honest and transparent in all our communications. We acknowledge all gifts (unless we are asked not to) and communicate the impact of donations to supporters through our annual report letter, annual calendar, magazines, e-newsletters and bespoke publications. Individuals are asked to opt-in to receive communications from Counties, unless they reasonably meet the criteria of legitimate interest, where there is clear evidence of their recent interest in our work. We provide opportunities for individuals to opt-out from any communications in clear and easy ways.

Complaints: Fundraising complaints are handled through our standard complaints procedure. No complaints relating to fundraising were received during the year.

j) Structure, Governance and Management

The charity does not have share capital and is limited by guarantee of the members. All trustees are members along with the chair, secretary and treasurer of each Counties Link Group, where such offices are filled. Members meet annually at the AGM when the affairs of the charity are considered and detailed reports are presented on various activities.

The trustees meet at least quarterly, and control the overall administration and policy decisions. During the past year most of the meeting taking place via video conferencing. Every effort is made to ensure that the trustees, all of whom are committed Christians with an interest in the promotion of the Christian faith, includes trustees of varied professional skills, qualifications and experience who are drawn from various parts of the UK. Due regard is given to the recruitment of new trustees who will ensure continuity. The trustees, from time to time, appoint sub-committees to deal with specific areas of the work. These constitute one or more trustees where appropriate, administrative staff and other suitably qualified individuals who usually form part of the general charitable body.

Potential new trustees are nominated and if selected are interviewed by representative(s) of the trustees, with their appointment being confirmed at the AGM. All new trustees are provided with a portfolio of papers giving appropriate information including policies and procedures, together with Charity Commission publications. They are also provided with training as appropriate. All trustees serve for a three-year period but may stand for re-election.

There is a small salaried staff administering the day-to-day affairs of the charity and the office is located at 30 Haynes Road, Westbury, BA13 3HD. The trustees on the finance committee meet independently with the independent examiners to ensure an independent view is received on how the office team maintains the finances of the charity. General management of the charity is in the hands of the CEO and Operations Manager.

Arrangements for setting key management personnel pay: the trustees review all staff salaries annually, including advice from Counties’ H.R. group which includes four trustees.

9

COUNTIES (Formerly Counties Evangelistic Work} REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020 k) Statement of Trustees, Res CDuntics onsi bilities The trustee5 (who are also directors ol Counties for the purposes of company lawl are responsible for preparing the Trustees, Report (incorporating the strategic report and directors. reportl and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom 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 charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustee5 are required to: select suitable accounting policies and then apply them consistentlv,. obseNe the methods and principles in the Charities SORP,. make judgments and accounting estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stètements., 3nd prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 3150 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities. Trustees Information Trustees, who are Directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are given on page 11. This report has been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities IFRS 102 20151 and in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. Approved by the Board of trustee5 and signed on its behalf by R Canham (Chairmanl Date- io

COUNTIES (Formerly Counties Evangelistic Work)

REPORT OF THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020

LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES: S R Bennett
R E Canham (Chair)
J Davies
S McQuoid
P Sparkes
C Taylor
A Taylor-Roberts (appointed 3 October 2019)
J M Webber (retired 25 April 2020)
J Wilkes
CHIEF EXECUTIVE OFFICER J G Martin Erwin
OPERATIONS MANAGER J Brooks-Martin
REGISTERED OFFICE 30 Haynes Road
Westbury
BA13 3HD
BANKERS Barclays Bank plc
32 Market Place
Warminster
BA12 9AR
INDEPENDENT EXAMINER Neil Kingston FCA
Burton Sweet
The Clock Tower, 5 Farleigh Court
Old Weston Road, Flax Bourton
BRISTOL
BS48 1UR
INVESTMENT BROKERS Brewin Dolphin Securities Ltd
AND ADVISERS 12 Smithfield Street
London
EC1A 9BD

11

COUNTIES (Formerly Counties Evangelistic Workl INDEPENDENT EXAMINATION REPORTTO THE TRUSTEES YEAR ENDED 30 SEPTEMBER 2020 ('Durfi?% I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2020. Responsibilities and basis of report As the charity's trustees of the Company land also its directors for the purpose5 of company lawl you are responsible for the preparation of the account5 in accordance with the requirements of the Companies Act 20061'the 2006 ACVI. Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respert of my examination of your charity's accounts as carried out under section 145 Of the Charities Act 2011 I'the 2011 ACVI. In carrying out mv examination I have followed the Directions given by the Charity Commission under section 145151 Ibl of the 2011 Act. Independent examlnerfs ststement Since the Company's gross income exceeded £250,000 your examiner must be è member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connettion with the examination giving me cause to believe.. l. accounting records were not kept in respect of the Company as required by section 386 of the 2(y)6 Act- or 2. the account5 do not accord with those record5,' or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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.. or 4. the account5 have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. 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. Signed.. Date- Neil Kingston FCA Burton Sweet Chartered Accountants The Clock Tower, 5 Farleigh Court Old Weston Road, Flax Bourton BRISTOL 8S48 IUR 12

COUNTIES (Formerly Counties Evangelistic Work)

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Notes
Income from:
Donations and gifts
2
Legacies
Investments
3
Charitable activities
Resources
Sale of fixed assets
Total income
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Gains/(Losses) on investments
11
Net (expenditure)/income
Transfers between funds
17
Net movement in funds
6
Reconciliation of funds
Funds brought forward
17
Funds carried forward
17		 Unrestricted
Restricted
Total
Total
funds
funds
2020
2019
£
£
£
£
502,655
217,930
720,585
790,169
94,843
-
94,843
108,839
9,099
-
9,099
13,223
10,588
-
10,588
5,252
-
-
-
1,360
617,185
217,930
835,115
918,843
27,141
4,749
31,890
30,750
637,650
238,644
876,294
931,185
664,791
243,393
908,184
961,935
(46,788)
-
(46,788)
4,574
(94,394)
(25,463)
(119,857)
(38,518)
2,800
(2,800)
-
-
(91,594)
(28,263)
(119,857)
(38,518)
742,263
45,393
787,656
826,174
650,669
17,130
667,799
787,656

The Statement of Financial Activities includes all gains and losses in the year. All income and expenditure derives from continuing activities.

Prior year fund comparatives are shown in note 9.

The notes on pages 16 to 26 form part of these financial statements

13

COUNTIES IFormerty Couniles Evangellstlc Workl BALANCE SHEET AS AT 30 SEPTEMBER 2020 Company number 1041761 2020 2019 Note Fixed assets Tangible assets Investments 10 11 109,216 312.628 151,374 393,832 Total fixed assets 421,844 545,006 Current assets Debtors Cash and bank balances 12 55,210 195,339 123,074 152,313 Total ¢urrent a$set$ 250,549 275,387 Creditors.. Amounts falling due within one year 13 14,5941 132,7371 Net current assets 245,955 242,650 N&t assgls 667.799 787,656 Funds Unreslri¢ted funds Reslricted funds 18 18 650,669 17,130 742,263 45,393 Total funds 667,799 787,656 For the year ending 30 Seplernber 2020 the ¢ompany was entitled lo exemption Irorn audit under section 477 01 the Companies Act 2006 relating to 5rnall companies. Directors are responsible in ensuring-. The rnembers have not required the company lo obtain an audit ol its accounts lor the year in question in accordance with section 476, The directors acknowledge their responsibilities ltsr complying with the requirements ol the A¢1 with respe¢l to accounting records and the preparation ol accounts. These financial stalgmènls have been prepared in aceordanc6 with the provision applicable lo companies subject lo the small companies regime wilhin part 15 01 the Companies Act 2006. Approved by the board ol Trustees and Dire¢tors and signed on ils behalf by R E Canham ennell Date.. The note$ on p•ge$ 16 to 26 form port of these flnan¢l•l $l•lement$ 14

COUNTIES (Formerly Counties Evangelistic Work) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2020

Note
Net cash outflow from operating activities
15
Non-operational cash flows:
Investing activities
Payments for investments
Proceeds from the sale of investments
Investment income
Investment management charges
Payments for fixed assets
Proceeds from sale of fixed assets
Net cash inflow/(outflow) for the year
16		 2020
£
3,025
(60,403)
95,873
9,099
(3,314)
-
-
41,255
44,280		 2019
£
(15,866)
(72,268)
14,271
13,223
(3,601)
(12,210)
2,210
(58,375)
(74,241)

Cashflow Restrictions

Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice, this restriction has not had any effect on cash flows for the year.

The notes on pages 16 to 26 form part of these financial statements

15

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

a) Basis of accounting

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard 102, the Statement of Recommended Practice FRS102 based thereon, and the Companies Act 2006.

The charity is a public benefit entity as defined under FRS102.

b) Fund accounting

Funds held by the charitable company are either:-

c) Income

All income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.

The following specific policies are applied to particular categories of income:

d) Expenditure

Expenditure is included in the Statement of Financial Activities on an accrual basis, inclusive of any VAT which cannot be recovered.

Support costs have been allocated on the basis of staff time or the estimated use of facilities. Liabilities are recognised as soon as there is legal or constructive obligation committing the charity to pay out resources.

e) Tangible fixed assets

Expenditure on assets with an estimated economic life of more than twelve months and a cost of more than £1,000 is capitalised.

Depreciation is provided on tangible fixed assets at rates calculated to write off the cost less residual value of each asset over its expected useful life. No depreciation is charge on freehold land.

16

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies (continued)

e) Tangible fixed assets (continued)

Annual depreciation rates are as follows:

rates are as follows:
Freehold property Over 50 years
Office & computer equipment 33% straight line
GSUS Live exhibitions 20% straight line
Key to Life exhibitions 20% straight line
Life exhibitions 33% straight line

f) Fixed asset investments

Fixed asset investments are included at their market value. Realised and unrealised gains and losses on revaluation are included separately in the Statement of Financial Activities.

g) Going Concern

These financial statements have been prepared on the going concern basis. No material uncertainties that may cast significant doubt on the ability of the Charity to continue as a going concern have been identified by the Trustees.

h) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i) Government Grants

Government grants for Coronavirus Job Retention Scheme were recognised in the period to which employment expenses were incurred and deemed to be receivable.

Trust grants:
Trust grants (anonymous)
Church Planting Initiative grants
Donations and gifts from individuals
Coronavirus Job Retention Scheme
Gift aid received		 Unrestricted
Restricted
Total
funds
funds
2020
£
£
£
372,975
101,248
474,223
-
22,300
22,300
119,451
81,652
201,103
3,172
4,822
7,994
7,057
7,908
14,965
502,655
217,930
720,585

Prior year comparative

Trust grants:
Trust grants (anonymous)
Church Planting Initiative grants
Donations and gifts from individuals
Gift aid received		 Unrestricted
Restricted
Total
funds
funds
2019
£
£
£
329,850
175,403
505,253
-
49,443
49,443
146,831
74,788
221,619
6,598
7,256
13,854
483,279
306,890
790,169

Counties is exceedingly grateful for the ongoing support of individuals, churches and grant making trusts. Many of these trusts prefer to remain anonymous.

17

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

3 Investment income

Investment income
Quoted investments
Bank interest
Prior year comparatives
Quoted investments
Bank interest		 Unrestricted
Restricted
Total
funds
funds
2020
£
£
£
9,098
-
9,098
1
-
1
9,099
-
9,099
Unrestricted
Restricted
Total
funds
funds
2019
£
£
£
13,089
-
13,089
134
-
134
13,223
-
13,223

All investment income arises from assets held in the UK.

Expenditure on raising funds
Salaries and office assistance
News magazine (inc. postage)
Website and internet
Promotion and publicity
Investment management costs		 Unrestricted
Restricted
Total
funds
funds
2020
£
£
£
9,953
4,000
13,953
2,008
42
2,050
7,131
512
7,643
4,735
195
4,930
3,314
-
3,314
27,141
4,749
31,890

Prior year comparative

Salaries and office assistance
News magazine (inc. postage)
Website and internet
Promotion and publicity
Investment management costs		 Unrestricted
Restricted
Total
funds
funds
2019
£
£
£
11,501
1,896
13,397
3,205
68
3,273
4,389
90
4,479
5,805
195
6,000
3,601
-
3,601
28,501
2,249
30,750

18

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

5 Analysis of charitable expenditure

Evangelists and training
Schools Resources
Prior year comparatives
Evangelists and training
Schools Resources		 Grants
payable
Direct
costs
Support
costs
Total 2020
£
£
£
£
382,438
146,313
115,479
644,230
-
138,865
93,199
232,064
382,438
285,178
208,678
876,294
Grants
payable
Direct
costs
Support
costs
Total 2019
£
£
£
£
385,349
93,423
114,396
593,168
-
244,410
93,607
338,017
385,349
337,833
208,003
931,185

Counties provides monthly gifts, as funds allow, to a number of evangelists the charity is in long-term association with. These amounts vary regularly. The average number of evangelists financially supported during the year was 47 (2019: 50). All grants made in the year were to individuals.

Support costs

Premises costs
Office expenses
Depreciation costs
Governance costs
Personnel costs including wages		 Total 2020
£
£
£
60,243
47,992
108,235
2,639
2,166
4,805
25,053
20,502
45,555
23,186
18,972
42,158
4,358
3,567
7,925
Schools
Resources
Evangelists
and training
115,479
93,199
208,678

Prior year comparative

Premises costs
Office expenses
Depreciation costs
Governance costs
Personnel costs including wages		 Total 2019
£
£
£
62,055
50,772
112,827
2,479
2,028
4,507
23,268
19,044
42,312
20,947
17,140
38,087
5,647
4,623
10,270
Evangelists
and training
Schools
Resources
114,396
93,607
208,003

19

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

6 Net expenditure for the year

This is stated after charging:

Depreciation
Independent examiner's fees
Reimbursement of Trustees' travel and subsistence expenses:
for trustees' meetings and duties to 4 Trustees (2019: 5 Trustees)		 2020
2019
£
£
42,158
38,087
3,100
3,000
1,942
3,785

No trustees received remuneration during this year or in the previous year.

7 Staff costs and numbers

The aggregate payroll costs were:

Wages and salaries
Social security costs
Pension contributions
Benefits in kind		 2020
2019
£
£
193,159
183,115
11,664
12,043
7,199
5,586
19,715
17,013
231,737
217,757

No employee received emoluments of more than £60,000.

The average weekly number of employees during the year, calculated on the basis of full time equivalents, was 7 in 2020 (2019: 7). When calculated on the basis of average headcount, the average weekly number of employees during the year was 9 in 2020 (2019: 9).

Key management personnel received employment benefits in the year of £85,327 (2019: £85,256).

8 Taxation

The company is registered as a charity and is therefore not liable to corporation tax on its charitable income as long as it is applied for charitable purposes. It is not considered there are any activities giving rise to a tax liability.

20

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

9 Fund comparatives for the Statement of Financial Activities

Income from:
Donations and gifts
Legacies
Investments
Charitable activities
Resources
Sales of fixed assets
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Gains/(Losses) on investments
Net expenditure and net movement in funds
Transfers between funds
Reconciliation of funds
Funds brought forward
Funds carried forward		 Unrestricted
Restricted
Total
funds
funds
2019
£
£
£
483,279
306,890
790,169
108,839
-
108,839
13,223
-
13,223
5,252
-
5,252
1,360
-
1,360
611,953
306,890
918,843
28,501
2,249
30,750
678,124
253,061
931,185
706,625
255,310
961,935
4,574
-
4,574
(90,098)
51,580
(38,518)
6,187
(6,187)
-
(83,911)
45,393
(38,518)
826,174
-
826,174
742,263
45,393
787,656

21

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

10 Tangible fixed assets

Cost
At 1 Oct 2019
Additions
Disposals
At 30 Sept 2020
Depreciation
At 1 Oct 2019
Charge for year
Disposals
At 30 Sept 2020
Net book value
At 30 Sept 2020
At 30 Sept 2019		 Office &
Freehold
GSUS Live
Key to Life
LIFE
computer
Property
exhibition
exhibition
exhibition
equipment
Total
£
£
£
£
£
£
113,250
510,774
183,468
332,562
33,058
1,173,112
-
-
-
-
-
-
-
-
-
-
-
-
113,250
510,774
183,468
332,562
33,058
1,173,112
32,185
510,774
125,369
320,352
33,058
1,021,738
1,394
-
36,694
4,070
-
42,158
-
-
-
-
-
-
33,579
510,774
162,063
324,422
33,058
1,063,896
79,671
-
21,405
8,140
-
109,216
81,065
-
58,099
12,210
-
151,374

11 Investments

Market Value at 1 October 2019
Additions
Disposal proceeds
Realised (losses)/gains on investments
Management fees
Dividends & interest
Deposits and withdrawals
Unrealised gains on investments
Market Value at 30 September 2020
Historical cost at 30 September 2020		 Total
Cash
Funds
2020
£
£
£
5,934
387,698
393,632
(60,403)
60,403
-
95,873
(95,873)
-
-
3,506
3,506
(3,314)
-
(3,314)
9,098
-
9,098
(40,000)
-
(40,000)
-
(50,294)
(50,294)
7,188
305,440
312,628
7,188
320,257
327,445

All investments are held in the UK.

22

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

11 Investments (continued…)

Prior year comparatives

Market Value at 1 October 2018
Additions
Disposal proceeds
Realised (losses)/gains on investments
Management fees
Dividends & interest
Unrealised gains on investments
Market Value at 30 September 2019
Historical cost at 30 September 2019
All investments were held in the UK.		 Total
Cash
Funds
2019
£
£
£
54,443
325,127
379,570
(72,268)
72,268
-
14,271
(14,271)
-
-
(529)
(529)
(3,601)
-
(3,601)
13,089
-
13,089
-
5,103
5,103
5,934
387,698
393,632
5,934
338,916
344,850
12 Debtors
Accrued income
Other debtors and prepayments		 2020
2019
£
£
45,638
115,694
9,572
7,380
55,210
123,074

Debtors includes grants due at the balance sheet date, received after the year end.

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other creditors
Accruals		 2020
2019
£
£
1,494
3,357
3,100
29,380
4,594
32,737

14 Operating leases

At 30 September 2020 the organisation had total minimum commitments under non-cancellable operating leases as set out below:

Amounts payable:
Within 1 year
Between 2 to 5 years		 Vehicles
Vehicles
2020
2019
£
£
8,030
4,102
6,598
4,586

23

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

15 Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Investment income
Investment management costs
Depreciation
Realised net gain on sales of investments
Unrealised net gain on investments
Increase / (decrease) in creditors: current liabilities
Decrease in debtors
Profit on sale of fixed assets
Net cash inflow/(outflow) from operating activities		 2020
2019
£
£
(119,857)
(38,518)
(9,099)
(13,223)
3,314
3,601
42,158
38,087
(3,506)
529
50,294
(5,103)
(28,143)
26,380
67,864
(26,259)
-
(1,360)
3,025
(15,866)

16 Analysis of changes in cash during the year

Cash at bank and in hand
Cash held within investments
Cash at bank and in hand
Cash held within investments		 2020
2019
Change
£
£
£
195,339
152,313
43,026
7,188
5,934
1,254
202,527
158,247
44,280
2019
2018
Change
£
£
£
152,313
178,045
(25,732)
5,934
54,443
(48,509)
158,247
232,488
(74,241)

24

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

17 Movement in funds

Restricted funds
Evangelists
GSUS Live fund
Church Planting
Network fund
The Evangelization
Society
Unrestricted funds
General funds
Total funds		 At
At
1 Oct
Gains
30 Sep
2019
Income
Expenditure
& losses
Transfers
2020
£
£
£
£
£
£
-
63,311
(63,311)
-
-
-
-
84,548
(81,748)
-
(2,800)
-
45,393
46,378
(94,752)
-
-
(2,981)
-
23,693
(3,582)
-
-
20,111
45,393
217,930
(243,393)
-
(2,800)
17,130
742,263
617,185
(664,791)
(46,788)
2,800
650,669
742,263
617,185
(664,791)
(46,788)
2,800
650,669
787,656
835,115
(908,184)
(46,788)
-
667,799

A transfer was made from the GSUS Live Restricted Fund to the General Fund to fund further schools' work, in line with the donors' wishes.

Restricted funds
Evangelists
GSUS Live fund
Church Planting
Network fund
Unrestricted funds
General funds
Total funds		 At
At
1 Oct
Gains
30 Sep
2018
Income
Expenditure
& losses
Transfers
2019
£
£
£
£
£
£
-
75,904
(75,904)
-
-
-
-
160,658
(154,471)
-
(6,187)
-
-
70,328
(24,935)
-
-
45,393
-
306,890
(255,310)
-
(6,187)
45,393
826,174
611,953
(706,625)
4,574
6,187
742,263
826,174
611,953
(706,625)
4,574
6,187
742,263
826,174
918,843
(961,935)
4,574
-
787,656

General fund

This is the main fund of the charity, which receives donations, investment and other income not received specifically for one of the funds. The fund provides support for the evangelists and also finances publicity and development and the overall running of the charity.

In the circumstances, all amounts received within the general fund have been treated as unrestricted income.

25

COUNTIES (Formerly Counties Evangelistic Work) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

17 Movement in funds (continued…)

Evangelists fund

When the Trustees invite an individual to join Counties as an Evangelist, in effect a restricted fund is created for the Evangelist and their activities that further the purposes of the charity.

GSUS Live fund

The fund exists to finance the running costs of the GSUS Live units.

Church Planting Network fund

The fund exists to enable the planting and replanting of vibrant new churches that make Jesus known across England and Wales.

The Evangelization Society (TES)

Dureing the year the residual funds of TES were transferred to Counties. The Trustees agreed that these funds should be restricted and utilised to fund grants towards evangelistic projects that are one-ff, innovative and pioneering in nature. This is consistent with the previous aims and objectives of TES.

18 Analysis of net assets between funds

2020
Restricted funds
Unrestricted funds
General funds
2019
Restricted funds
Unrestricted funds
General funds		 Tangible
Other
Fixed assets
Investments
Net assets
Total
£
£
£
£
-
-
17,130
17,130
109,216
312,628
228,825
650,669
109,216
312,628
245,955
667,799
Tangible
Other
Fixed assets
Investments
Net assets
Total
£
£
£
£
-
-
45,393
45,393
151,374
393,632
197,257
742,263
151,374
393,632
242,650
787,656

19 Related party transactions

The aggregate donations received from trustees and related parties in the year was £380 (2019: £2,412).

Apart from the above persons, no trustee or other person related to the charity, had any personal interest in any contract or transaction entered into by the charity during the year (2019 - None).

20 Share capital

The company is limited by guarantee and does not have a share capital. The members' liability is limited to £1 each.

26