OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

REGISTERED NUMBER: 266600

Report

and

Unaudited Financial Statements

from 1 January to 31 December 2021

Synod of German-speaking

Lutheran, Reformed and United Congregations

in Great Britain

10 Sandwich Street London WC1H 9PL

Page 1 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

Contents of the Financial Statements for the Year Ended 31 December 2021

Page
Report of the Trustees 3 to 13
Objectives and Activities 3 to 4
Achievements and Performance 5 to 6
Financial Review 7 to 10
Structure, Governance and Management 11 to 12
Reference and Administrative Detail 12 to 13
Events since the End of the Year 13
Trustees' Declaration 13
Independent Examiner's Report 14
Statement of Financial Activities 15
Balance Sheet 16
17 to 31
Notes to the Financial Statements

Page 2 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

Report of the Trustees

for the Year Ended 31 December 2021

The trustees present their report with the financial statements of the Charity for the year ended 31 December 2021.

The trustees have adopted the provisions of 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).

The Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

The Synod is an ecclesiastical community of congregations bound by their Articles of Faith in full preaching and Eucharistic fellowship. It unites German-speaking congregations of the Lutheran, Reformed and United denominations. The proclamation of the Gospel is based exclusively on the teaching of Jesus Christ as witnessed by the Holy Scripture in the Old and in the New Testament and re-stated by the Articles of Faith of the German Reformation.

1 - OBJECTIVES AND ACTIVITIES

The Synod is established to advance the protestant Christian religion, amongst German speakers in Great Britain. In achieving this object, the Synod fosters solidarity between its member congregations and a common approach to questions of Christian faith and life. It attends to the ecclesiastical and social life of the congregations and concerns itself with the maintenance of Christian life.

The Synod provides the congregations with ministers, advice, training, and oversight so that they can provide public benefits in accordance with their charitable objectives and their agreements with the Synod.

MINISTRY

The Synod is responsible for providing and organising effective German-speaking Protestant ministry in Great Britain. It supports the member congregations by employing pastors and pastoral assistants for German worship and pastoral care. It provides German worship and pastoral care when needed, even where there is no organised congregation.

Page 3 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

QUALITY MANAGEMENT

The Synod supports the member congregations by visitation and training. A visitation to a congregation sets in motion a process of reflection; whether their activities match their objectives and whether improvement is possible.

Volunteers' training enables them to lead worship, to offer worship for children, to lead the congregation and to manage its finances. This supports good governance and develops the skills of the current and future lay community, helping to ensure the long-term continuity of the congregations.

ADMINISTRATIVE SUPPORT TO CONGREGATIONS

The Synod supports the member congregations by giving advice, examining their finances and legal documents, and providing them with templates for their day-to-day work. The Synod holds a Grade A Sponsorship Licence for the UK Visa Immigration Sponsorship Scheme.

FINANCIAL SUPPORT TO CONGREGATIONS

The Synod supports the member congregations by giving grants. It gives support grants towards the church work, supports children's groups, specific projects and outings, partly pays for repairs to the manses occupied by the pastors and supports congregations in deficit.

NETWORKING BETWEEN CONGREGATIONS

The Synod Assembly held each spring as the Synod's annual general meeting, and the Church Treasurers' Day usually held each winter provide opportunities for trustees of the congregations throughout Great Britain to share their ideas for congregational work and to discuss matters of Christian faith.

REPRESENTATION

The Synod represents German-speaking Protestants at the German Embassy, at the General Assembly of Evangelische Kirche in Deutschland (EKD) and in several ecumenical organisations throughout Great Britain and in Europe. It delivers a presentation about the German-speaking church work in Great Britain at the Deutsche Evangelische Kirchentag in German

Page 4 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

2 - ACHIEVEMENT AND PERFORMANCE

MINISTRY

At the beginning of 2021 eight pastors were employed, who worked with 18 congregations, with about 50 places of worship, divided into six pastoral regions: London-East, LondonWest; East Anglia; South and West England and Wales; North-England and East Midlands; Scotland and North East England. Four of the pastoral regions had a single pastor whilst two have married couples, both of whom share the role working part-time. One deacon (Diakon) was employed as a pastoral assistant in London-West.

In 2022 the pastor of London-East will return to Germany; his successor will begin her ministry in August 2022. Although most church life took place online the various congregations within the Synod have come closer together in celebrating nationwide virtual services and enjoying other events on ZOOM.

QUALITY MANAGEMENT

The pastors continue to have their regular meetings online twice a month. The exchange and mutual support throughout the year has increased continually as meetings are held with much higher frequency than before the pandemic.

Training Sessions for volunteers have taken place online.

The ministers conference in Malmø/Sweden organised for ministers of German Speaking Congregations in the North, West and East of Europe in 2021 had to be held via ZOOM and will resume in person in 2022 in Malmø/Sweden. The ministers conference for German Speaking Congregations worldwide will take place in Bad Boll/ Germany in 2022. ZOOM-sessions with the EKD have taken place on a regular basis.

The previously vacant subcommittee on legal affairs and church constitutions has taken up its work and provides guidance relating to questions about safeguarding as well as general questions of legal nature.

The newly appointed treasurer has taken on his role in April 2021.

ADMINISTRATIVE SUPPORT TO CONGREGATIONS

The budgetary control committee examined the finances of the congregations. The Synod financed the group membership of the treasurers at the Association of Church Accountants & Treasurers (ACAT).

FINANCIAL SUPPORT TO CONGREGATIONS

The Synod provided support grants to 17 congregations, 11 children's groups and Saturday schools. It also gave grants towards the cost of events as well as contributions to the costs of public relations such as newsletters. Since many congregations have to rely on lettings

Page 5 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

for their income a special grant was given to meet these losses due to Lockdown cancellations.

REPRESENTATION

Representatives of Synod kept in touch with officials from the German Embassy, participated in ecumenical online-meetings throughout the country, attended a Church Leaders CTE Dinner in Lambeth Palace, participated in the online-meetings of the British Committee of the German Protestant Kirchentag. The EKD Assembly in Germany was also held online but without guests.

Page 6 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

3 - FINANCIAL REVIEW

FINANCIAL POSITION

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the next year and for the foreseeable future.

INCOME AND EXPENDITURE

Ministry

A major part of the Synod's expenditure consists of the salaries of the pastors who are employed on fixed-term contracts, usually for six years. The Synod's income derives for the largest part from contributions by the congregations, as set by the Synod Assembly enabling the provision of pastors to the congregations by the Synod.

This annual Synod fee, paid in advance by the congregations, must be used to cover the costs for the ministry including allocated overhead costs. Any unspent amounts of the annual fee are accumulated in the Salary Savings Fund, which is restricted to use for ministry. For covering ministry costs more than income from the Synod fee, the Synod can draw on the Salary Savings Fund and the Congregation Shortfall Fund (formerly known as Grants Retained in Germany Fund).

The employment costs of pastors posted to the UK in the framework of the Synod's contractual agreement with the German Protestant Church (EKD) are denominated in Euros and are therefore affected by changing currency exchange rates. In 2021, the direct costs of pastors' salaries amounted to £333k. Since April 2019 the annual Synod’s fee amounts to £52k per pastoral region (i.e., £312k in total). An overall review of the Synod fee as core part of the Synod's financial concept for future years is being considered for 2022.

Financial Support to Congregations

Grants to congregations were paid from donations and grants income, above all the generous grant of £63,000 by the Kaiser Wilhelm II Fund (Registered Charity Number 1117748), and from the restricted Congregation Support Fund. The Synod is grateful to the Kaiser Wilhelm II Fund.

Other Income and Expenditure

All other costs of the Synod's charitable activities, including all governance and management overheads (support costs) allocated to the direct costs of charitable activities (including ministry and financial support to congregations), were paid by the Synod from its unrestricted funds. These expenses have been covered by investment income and additional voluntary income raised in 2021 and in preceding years.

Page 7 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

In 2021, the Synod's unrestricted funds resulted in a net operational outflow from the Synod's unrestricted funds at the amount of £89,735. This includes £3,386 spent by the Synod from its unrestricted funds on legal fees for the employment tribunal proceedings relating to ministry. This amount is excluded from calculating the congregations’ contribution for Synod tasks.

To support the Synod's long-term ability to fulfil its core objective, the Synod Assembly approved in April 2017 that an amount equal to a set percentage of the Synod's net operational outflow in the year can be transferred from the restricted Salary Savings Fund, which holds the congregations' Synod fee, to the Synod's unrestricted funds at the end of the reporting year.

The amount of this congregation contribution to the Synod's unrestricted funds in the year ended is agreed by the Synod Assembly in its meeting following the end of the year as a set percentage of the net operational outflow from the Synod's unrestricted funds in the year ended in accordance with the Trustees' financial report as presented to the Synod Assembly for approval.

The percentage has been set by the Synod Assembly at 50% for 2021 and will increase in equal steps from 2022 (60%) to 2026 (100%). Under this rule, the amount of the congregation contribution in 2021 to be approved by the Synod Assembly in April 2022 with the Trustees’ annual financial report is £11,652 .

Investment

Net income from investment in 2021 amounts to £ 37,198 (2020: 36,067). Due to the steadfast market conditions in 2021, the result for the year 2021 shows a net gain from investment of £157,244 compared to £78,602 net gain from investment in 2020.

Under the Synod's investment policy and reserves policy, invested funds are intended to remain invested over the long term for income generation.

Result

In 2021, the Synod had a net gain of £145,040, after a net gain of £54,706 in the previous year 2020.

The Synod's unrestricted funds increased by £67,286 after having increased by £26,397 in the previous year 2020.

The Synod received no grants or other income from central or local government.

RESERVES

At 31/12/2021, the unrestricted funds (reserves) stood at £911,140 (at 31/12/2020: £843,854).

In 2017, the trustees decided to designate the main part of these reserves for income generation, with exception of the amount deemed necessary by the Trustees to be held as

Page 8 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

cash, or cash equivalent, to maintain sufficient liquidity in preparedness for unexpected events.

The Synod's policy for holding reserves is to keep the liquid amount of unrestricted funds at least equal to 24 months of operating expenditure, less the direct costs of ministry, to safeguard the continuity of operations. In the Trustees’ judgment, the adequate minimum amount to be held as liquid General Reserves for this purpose remains set at £200,000.

At the end of 2021, the amount kept in current accounts and cash-equivalent fixed-term accounts with banking institutions located in the UK and in Germany was £232,700.

RESTRICTED FUNDS

INVESTMENT POLICY AND OBJECTIVES

The Synod's investment policy, as defined by the Trustees in consultation with the Synod's finance committee, permits investing all restricted and unrestricted funds of the Synod, except its liquid General Reserves, in ethical, diversified multi-asset funds with balanced risk exposure.

The trustees are satisfied that the investment policy continues to be suitable for generating increased return on the Synod's invested funds.

POLICIES FOR THE PAYMENT OF THE STAFF

The remuneration of the pastors posted to employment by the Synod in the UK under its agreement with the EKD is set by the EKD in accordance with its worldwide procedures.

Trustees employed as pastors posted to employment have therefore no role in setting their own remuneration.

Similarly, when the Synod employs pastors not posted to employment by the EKD, the remuneration will be according to the salary set by the Synod council in 2021 and will be

Page 9 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

subject to the employment rules of the Synod. In the event of non-posted pastors being elected as trustees to the Synod council, these pastors will not have a role in setting any changes in the salary to avoid any conflict of interest.

The salaries of pastoral assistants and of the office staff are set by the trustees.

SEAMEN'S MISSION

The Synod processes the salary payments for the UK-based staff of the German Seamen's Mission (Deutsche Seemannsmission e.V.- DSM), a German registered charity, from the funds of the DSM in accordance with the DSM's instructions.

RISK MANAGEMENT

The trustees have assessed the major risks to which the Charity is exposed, those related to the operations and finances of the Charity. The Trustees are satisfied that adequate processes and control procedures are in place to mitigate the charity's exposure to these risks. The pandemic and its consequences through restrictions and lockdowns have not endangered the Synod’s standing or its finances.

Employer's liability, public liability, personal injury, property, and legal protection insurance policies are in place.

Page 10 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

4 - STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

The Synod is an unincorporated ecclesiastical charitable association governed by its Constitution ("Synodalordnung") of 12 May 1973 as last amended by the Synod Assembly on 24 October 2021.

GOVERNING BODY

The governing body of the Synod is the Synod Assembly. It consists of the trustees, the pastors-in-office of the pastoral regions, one delegate from each congregation (with a minimum of three delegates from each pastoral region) and up to seven extraordinary members appointed in accordance with the Constitution. The Synod Assembly meets ordinarily once a year.

The Synod Assembly elects the Synod's trustees and confirms the appointment of the treasurer if the treasurer is not a trustee. The Synod Assembly decides on the statutes of the Synod, sets its budget and its members' contributions, and receives the annual accounts.

TRUSTEES

The Synod Council is the executive organ of the Synod, and its elected members are the trustees of the charity. The Synod Council is responsible for the Synod affairs and has all required powers for this purpose unless they are allocated to the Synod Assembly by the Constitution.

The trustees are elected under the terms of the Constitution. Elections take place every three years at the Synod Assembly. Trustees may be re-elected. The trustees act within the Synod's mandate and are accountable to the Synod Assembly. They report to the annual meeting of the Synod Assembly. The trustees are voting members of the Synod Assembly.

The trustees are inducted into their responsibilities and duties based on Charity Commission publications. They are provided with copies of the Charity's governing document and have equal right to information about the Charity's business. They are familiar with the philosophy, history and objectives of the charity. Ongoing trustee development takes place as required.

Trustees have considered the Commission's guidance on public benefit and the specific guidance on charities for the advancement of religion.

TREASURER

The treasurer has delegated responsibility for internal controls. The treasurer is a non-voting member of the Synod Council, but not a trustee, and reports to the Synod Assembly. In March 2020 the Synod Assembly decided that the treasurer is qua appointment an extraordinary member of the Assembly.

Page 11 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

ADMINISTRATOR

Transactions are performed by the Financial Administrator, who is employed by the Synod at its office, under the "four eyes" principle.

5 - REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity number: 266600 (England and Wales) Name of the Charity: Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Other Names used: Council for German Church Work Synod of German-speaking Protestant Congregations in Great Britain Principal address: Council for German Church Work 10 Sandwich Street London WC1H 9PL Trustees: Mrs D Cramer, Pastor (Senior/Chair until 25/4/2021) Mrs V Jantzen, Pastor (Senior/Chair from 25/4/2021) Mr L Lemmer Mr B Rapp, Pastor (Secretary until 25/4/2021) Mr L Klehn, Pastor (Secretary from 25/4/2021) Mr K Thierbach, Pastor (from 25/4/2021) Mrs Dr M Scheuermann-Freestone Mrs. Dr B Jurack (from 25/4/2021)

Treasurer: Mr Dr Christoph Reimnitz (from 25/4/2021) Independent Examiner: Mr Tilesh Patel BA FCA The SME Clinic 7 Stratford Place London, W1C 1AY

Page 12 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

7 - EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements. No such information is reportable for the year ended 31 December 2021.

8 – TRUSTEES' DECLARATION

The trustees approved the trustees’ report above on 29 March 2022

Signed by order on behalf of the charity’s trustees

----- Start of picture text -----
06.05.2022
_____ ____
Verena Jantzen, Pastor Date
Senior and Chair of the Board of Trustees
----- End of picture text -----

Page 13 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

Independent Examiner's Report to the Trustees of

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

I report on the accounts for the year ended 31 December 2020 set out on pages sixteen to thirty.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of Member of the ICAEW.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of the independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view ' and the report is limited to those matters set out in the statements below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that, in any material respect, the requirements

have not been met; or

(2) to which, in my opinion, attention should be drawn to enable a proper understanding of the accounts to be reached.

Tilesh Patel BA FCA

THESMECLINIC LIMITED

7 Stratford Place London W1C 1AY

Date:

Page 14 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

(Note 2)

INCOME
Donations
Charitable Activities
Ministry (Synod Fee)
Pastoral Assistance Refunds
Other
Investment Income
Other
EXPENDITURE
Charitable Activities
Ministry
Quality Management
Admin Support to Congregations
Financial Support to Congregations
Networking
Representation
Net Gains/Losses on
Investments
NET INCOME
RECONCILIATION OF FUNDS
Total Funds Brought Forward
Total Funds Carried Forward		 Year ended 31/12/2021
£
Unrestricted
Funds
Restricted
Funds
Total
Funds		 Year ended
31/12/2020
£
Total Funds
(Note 14)		 Note 1
Note 3
Note 4
Note 5
Note 13
Note 20
90,020
362,379
452,399
63,000
0
63,000
11,652
340,549
352,201
11,652
300,348
312,000
0
40,201
40,201
0
0
0
15,368
21,830
37,198
0
0
0
89,657
374,947
464,604
89,657
374,947
401,070
26,123
374,947
4,238
4,238
0
4,362
4,362
0
44,906
44,906
0
4,318
4,318
0
5,711
5,711
0
401,070
66,924
90,321
157,244
67,286
77,754
145,040
843,854
762,018
1,605,872
911,140
839,771
1,750,912		 323,749
55,070
231,032
219,138
11,754
140
36,067
1,580
347,645
347,645
273,841
4,397
4,161
55,827
4,037
5,382
78,602
54,706
1,551,166
1,605,872

Page 15 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

Balance Sheet

At 31 December 2021

(Note 2)

FIXED ASSETS
Tangible Assets
Investments
CURRENT ASSETS
Debtors(Amounts falling
due within one year)
Cash at bank and in hand
LIABILITIES
Creditors(Amounts falling
due within one year)
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted Funds
Restricted Funds		 Unrestricted
Funds		 31/12/2021
£
Restricted
Funds
Total Funds		 31/12/2020
£
Total Funds		 Note 15
Note 16
Note 17
Note 18
Note 20
707,613
2
707,611
224,329
11,464
212,865
(20,802)
(20,802)
203,527
911,140		 819,937
1,527,550
0
2
819,937
1,527,548
19,835
244,164
0
11,464
19,835
232,700
0
(20,802)
0
(20,802)
19,835
223,362
839,772
1,750,912
1,750,912
911,140
839,772		 1,369,229
410
1,368,819
281,511
7,650
273,861
(44,868)
(44,868)
236,643
1,605,872
1,605,872
843,854
762,018

The financial statements were approved by the Board of Trustees on 29.03.2022 and were signed on its behalf by:

………………………………..

Pastor V Jantzen -Trustee-

Page 16 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

Notes to the Financial Statements

For the Year Ended 31 December 2021

1 - CONTINUING OPERATIONS

All income and expenditure have arisen from continuing activities.

Having taken all available information into account, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the next 12 months and thereafter for the foreseeable future. The trustees are satisfied that there are no material uncertainties about the charity’s ability to continue as a going concern.

The operational result (income less expenditure) is (£12,205) in 2021. 2020: (£23,896).

2 - ACCOUNTING POLICIES

BASIS FOR PREPARING THE FINANCIAL STATEMENTS

Accounts have been prepared on accruals basis in accordance with the rules applicable to non-company registered charities with a gross income of over £250,000.

As a public benefit entity under FRS102, the charity has prepared the financial statements in accordance with the Charities SORP (FRS102) effective 1 January 2015.

The financial statements have been prepared under the historical cost convention.

FRS102 REDUCED DISCLOSURE EXEMPTION

The charity has taken advantage of the following disclosure exemption in preparing these financial statements as permitted by FRS102:

The requirements of Section 7 (Statement of Cash Flows)

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. Contractual income is recognised once the service has been provided.

Gifts in kind are accounted for at a reasonable estimate of their fair values to the charity at the amount realised on sale. Donated services are included in income and expenditure where the benefit to the charity is reasonably quantifiable, measurable and material at the estimated value to the charity, with exception of volunteer help which is not included in the accounts.

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to a specific heading, they have been allocated to activities on a basis consistent with the use of resources.

TANGIBLE FIXED ASSETS

A tangible fixed asset is capitalised if its initial cost is at least £500.

Depreciation is provided at the following rates to write off each asset over its estimated useful life.

Asset class Method of depreciation Computer equipment Linear over four years

Fixed asset investments are measured initially at cost and revalued at the end of the reporting period to their fair value. The value of investment funds is based on the unit bid price. For investments listed or traded on a recognised exchange, fair value is the market value. If the fair value cannot be measured reliably, including for social investments, revaluation is based on cost less impairment.

FINANCIAL INSTRUMENTS

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments, which are initially recognised at transaction value and subsequently measured at their settlement value.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the middle market spot rate as published by the Bank of England for the balance sheet date.

Transaction amounts in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction based on the middle market spot rate as published by the Bank of England unless the actual transaction rate can be identified.

Exchange differences are taken into account in arriving at the operating result.

TAXATION

The charity is exempt from tax on its charitable activities

Page 18 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particularly restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particularly restricted purposes.

See note 20 for further explanation of the nature and purpose of each restricted fund.

VOLUNTEERS

The charity benefits from services by volunteers. The value of general volunteer help received is not recognised in the accounts.

3 – DONATIONS

2021
2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
£
£
£
£
Donations
0
0
0
0
Grants
63,000
0
63,000
55,070
Kaiser Wilhelm II Fund
63,000
0
63,000
55,070
Other
0
0
0
0
Total
63,000
0
63,000
55,070
- INVESTMENT INCOME
2021
2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
£
£
£
£()
Interest
20
0
20
168
Dividends
15,348
21,830
37,178
35,899
Total*
15,368
21,830
37,189
36,067		 2021
2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
£
£
£
£
Donations
0
0
0
0
Grants
63,000
0
63,000
55,070
Kaiser Wilhelm II Fund
63,000
0
63,000
55,070
Other
0
0
0
0
Total
63,000
0
63,000
55,070
- INVESTMENT INCOME
2021
2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
£
£
£
£()
Interest
20
0
20
168
Dividends
15,348
21,830
37,178
35,899
Total*
15,368
21,830
37,189
36,067		 2021 2020
Unrestricted
Funds
Restricted
Funds
£
£		 Total
Funds
£		 Total
Funds
£
0
0
63,000
0
63,000
0
0
0		 0
63,000
63,000
0		 0
55,070
55,070
0
63,000
0		 63,000 55,070
2021 2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£		 Total
Funds
£(*)
20
0
20
15,348
21,830
37,178		 168
35,899
15,368
21,830
37,189		 36,067

4 - INVESTMENT INCOME

Page 19 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

5 - CHARITABLE ACTIVITIES COSTS

Ministry
Quality Management
Administrative Support
to Congregations
Financial Support to
Congregations
Networking
Representation
Total		 2021 2021 2020
Unrestricted Funds
Direct
costs
Support
costs
Total
(Note 6)
(Notes 7, 8)
£
£
£		 Restricted Funds
Direct
costs
Support
costs
Total
(Note 6)
(Notes 7, 8)
£
£
£		 Total Funds
£		 Total Funds
£
0
26,123
0
4,238
124
4,238
40,668
4,238
0
4,318
1,259
4,452		 26,123
4,238
4,362
44,906
4,318
5,711		 374,947
0
0
0
0
0
0
0
0
0
0
0		 374,947
0
0
0
0
0		 401,070
4,238
4,362
44,906
4,318
5,711		 273,841
4,397
4,161
55,827
4,037
5,382
42,051
47,606		 89,657 374,948
0		 374,948 464,604 347,645

Page 20 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain

6 - DIRECT COSTS OF CHARITABLE ACTIVITIES

Ministry
Pastors' salaries
Pastoral conference
Pastoral assistance
Relocation Costs
Quality Management
Visitation
Lay training
Administrative Support
to Congregations
ACAT membership
Financial Support to
Congregations
Ministry
Maintenance
Budget support
Congregation work
Rectorate PAB
Representation
Ecumenical
Memberships
Church Day in Germany
Other representation
TOTAL		 2021
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£

(*) The Synod does not engage in grant-making activities, Financial support is given to member congregations by the trustees from time to time under policies set by the Synod Assembly in pursuit of the Synod’s charitable objects. All member congregations are registered ecclesiastical charities in their own right.

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

7 – SUPPORT COSTS

Management
Office salaries
Office
Insurance
Legal fees
Bank charges
Accounting software
Payroll processing
Internet
Telephone
Office equipment
Other administrative costs
Governance
Synod Assembly
Development Committee
Committees
Sponsorship Licence
Synod Council
Independent Examination
TOTAL		 2021
£		 2020
£		 Note 9
Note 19
Note 12
46,051
38,974
372
1,256
3,386
136
0
864
194
203
409
257
1,555
80
0
0
536
99
840		 39,802
32,341
3,300
1,434
935
133
0
864
156
211
409
19
3,229
0
1,233
0
0
1,156
840
47,606 43,031

Page 22 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

8 – SUPPORT COST ALLOCATION

Office salaries
Office
Insurance
Legal fees
Bank charges
Payroll processing
Internet
Office Equipment
Other administrative
costs
Synod Assembly
Development
Committee
Committees
Sponsorship License
Synod Council
Independent
Examination
TOTAL		 Total 2021
£		 Allocation
Ministry
Quality
Management
Administrative
Support to
Congregations
Financial
Support to
Congregations
(unrestricted)
Financial
Support to
Congregations
(restricted)
Networking
Represen-
tation
£
£
£
£
£
£
£
38,974
372
1,256
3,386
136
864
194
409
460
80
0
0
536
99
840		 19,487
3,897
3,897
3,897
0
3,898
3,898
186
37
37
37
0
37
38
628
126
126
126
0
126
124
3,386
0
0
0
0
0
0
0
27
27
27
0
27
28
864
0
0
0
0
0
0
0
0
0
0
0
0
194
205
41
41
41
0
41
40
230
46
46
46
0
46
46
0
0
0
0
0
80
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
268
54
54
54
0
54
52
30
10
10
10
0
10
30
840
0
0
0
0
0
0
47,606 26,124
4,238
4,238
4,238
0
4,319
4,449

Support costs are allocated in accordance with resource use: 50 percent to Ministry, 10 percent to each other charitable activity category. Exceptions: Legal fees and payroll processing, and Independent Examination: 100% to Ministry. Committees: 100% to Quality Management. Synod Assembly: 100% to Networking. Synod Council: 30% to Ministry and Representation, 10% to each other charitable activity category. Internet: 100% to Representation. Bank charges: For restricted funds 100% to Financial support to Congregations; for unrestricted funds 20% to each charitable activity category except Ministry.

Page 23 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

9 – EMPLOYEES

Average number of staff employed during the reporting period: 11

Average number of full-time equivalent employees during the reporting period: 7

No employee received emoluments in excess of £60,000.

Total staff cost in 2021: £ 412,001

Salaries Social security Employer pension
contribution		 Other benefits(*)
£401,352 £8,559 £2,090 £0

(*) Excluding sundry trivial ancillary benefits of annual value of less than £50 total per employee.

10 – TRUSTEES’ REMUNERATION AND BENEFITS

The Trustees do not receive any remuneration for their services as trustees.

In the reporting period, the following Trustees were employed by the Synod as pastors and received salaries for their non-trustee services in the Congregations of their Pastoral Region:

Pastor Cramer (until
25/4/21)
Pastor Jantzen
Pastor Rapp (until
25/4/21)
Pastor Klehn (from
25/4/21)
Pastor Thierbach (from
25/4/21)
TOTAL		 2021
£		 2020
£
8,592
27,573
19,046
37.661
36,297		 25,126
27,898
57,171
0
0
129,169 110,195

The remuneration of pastors is set by the Evangelische Kirche in Deutschland (EKD) in accordance with its world-wide procedures. Pastors who are also Trustees of the Synod have no role in setting their own remuneration and benefits.

Employed pastors, including those who serve as trustees, enjoy the same trivial ancillary benefits as all employees of the Synod at an annual value of less than £50 total each.

Trustee indemnity insurance was provided by the Charity for its trustees in 2021.

Page 24 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

11 – TRUSTEES’ EXPENSES

One trustee claimed expenses or had expenses met by the Charity in 2021.

In 2021 properly incurred costs of £379 in carrying out trustee duties was paid by the Synod for travel and accommodation (2020: £979).

12 – INDEPENDENT EXAMINATION

Fees payable in 2021 to the independent examiner The SME Clinic Limited for services provided to the Charity:

rovided to the Charity:
Independent Examination
Payroll Processing
TOTAL		 2021
£		 2020
£
840
864		 840
864
1,604 1,604

The fee for the examination of the 2021 accounts and payroll processing is being included in this year accruals.

13 – NET GAINS ON INVESTMENTS

Realised gains
Revaluation of investments
Exchange rate gain/(loss)
TOTAL		 2021 2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£		 Total
Funds
£
0
0
0
67,001
97,092
164,093
0
(6,849)
(6,849)		 0
71,449
4,452
67,001
90,243
157,244
75,901

Page 25 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

14 – PREVIOUS-YEAR COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

CTIVITIES
INCOME
Donations
Charitable Activities
Ministry (Synod Fee)
Pastoral Assistance Refunds
Other
Investment Income_(see Note)
Other
EXPENDITURE
Charitable Activities
Ministry
Quality Management
Administrative Support to Congregations
Financial Support to Congregations
Networking
Representation
Net Gains on Investments(see Note)_
NET INCOME
RECONCILIATION OF FUNDS
Total Funds Brought Forward
Total Funds Carried Forward		 Yearended 31/12/2020
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
91,606
232,143
323,749
55,070
0
55,070
21,440
209,592
231,032
21,300
197,838
219,138
0
11,754
11,754
140
0
140
13,516
22,551
36,067
1,580
01,580
96,263
251,382
347,645
96,263
251,382
347,645
22,459
251,382
273,841
4,397
0
4,397
4,161
0
4,161
55,827
0
55,827
4,037
0
4,037
5,382
0
5,382
31,054
47,548
78,602
26,397
28,309
54,706
817,457
733,709
1,551,166
843,854
762,018
1,605,872

.

Page 26 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

15 – TANGIBLE FIXED ASSETS

Computer
equipment
Other plant
and Machinery
Total
£
£
£
Cost
At 1/1/2021
Additions
At 31/12/2021		 1,635
1
1,636
0
0
0
1,635
1
1,636
Depreciation
At 1/1/2021
Depreciation
At 31/12/2021		 1,225
0
1,225
409
0
409
1,634
0
1,634
Net Book Value
At 31/12/2020
At 31/12/2021		 410
1
411
1
1
2

Page 27 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

16 – FIXED ASSET INVESTMENTS

Value at
1/1/2021
Additions
Disposals
Transfers
Revaluations
Exchange
rate loss
Value at
31/12/2021		 Unrestrictedfunds Restrictedfunds Total fixed assetinvestments
Investment
funds
Cash or cash
equivalents
Other
investments
Total
unrestricted
£
£
£
£		 Investment
funds
£		 Cash or cash
equivalents
Other
investments
£
£		 Total restricted
£		 Investment
funds
Cash or cash
equivalents
Other
investments
TOTAL
£
£
£
£
640,610
0
0
640,610		 647,259 0
80,950		 728,209 1,287,869
0
80,950
1,368,819
0
0
0
0
0
0
0
0
0
0
0
0
67,001
0
0
67,001
0
0
0
0		 0
0
0
97,092
0		 0
0
0
0
0
0
0
0
0
(5,364)		 0
0
0
97,092
(5,364)		 0
0
0
0
0
0
0
0
0
0
0
0
164,093
0
0
164,093
0
0
(5,364)
(5,364)
707,611
0
0
640,610		 744,351 0
75,586		 819,937 1,451,961
0
75,586
1,527,548

The column “Other investments” relates to mixed-motive ethical social investment in pursuit of the Synod’s charitable objects and the prospect of financial return.

.

Net Book Value

Net Book Value
At 31/12/2020
At 31/12/2021		 Investment
funds
Cash or cash
equivalents
Other
investments
£
£
£		 Total
£
1,287,869
0
80,950
1,451,961
0
75,586		 1,368,819
1,527,548

All investments are held at fair value.

Page 28 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

17 – DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Prepayments and accrued income 2021
£		 2020
£
11,464 7,650

Includes dividends in the amount of £5,550 not yet paid by the end of the financial year and £ 5,914 ( 2020: £ 7,650) receivables from a congregation.

18 - CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals
TOTAL		 2021
£		 2020
£
20,802 44,868
20,802 44,868

19 - CONTINGENT LIABILITIES

The Synod was a party to employment tribunal litigation initiated by a former employee. The proceedings have now been finally concluded, the remaining costs of these proceedings in the year under review amounted to £3,386.

Page 29 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

20 - MOVEMENT IN FUNDS

Unrestricted Funds
General Fund
Income Generation
Fund
Restricted Funds
Salary Savings Fund
Congregation Support
Fund
Congregation Shortfall
Fund
TOTAL FUNDS		 At
1/1/2021
Transfers
between
funds
Incoming
resources
Resources
expended
Net
movement
At
31/12/2021
£
£
£
£
£
£		 Fund Description
843,854
0
157,021
(89,735)
67,286
911,140
200,000
0
0
0
0
200,000
643,854
0
157,021
(89,735)
67,286
711,140
762,018
0
459,472
(381,718)
77,754
839,772
0
32,478
300,348
(332,826)
0
0
174,175
0
27,068
(1,920)
25,148
199,323
587,843
(32,478)
132,056
(46,972)
52,606
640,449		 Held as liquidity reserve
Designated by the Synod for income-
generation investment
Income fund holding the unspent part of
the Congregations' Synod Fee for
covering the direct costs of ministry.
Depleted since November 2018.
Income fund donated by the EKD and
similar bodies for supporting the
Congregations that make up the Synod in
ways to be decided by the Synod
Income fund donated by the EKD for
covering the salaries of pastors and for
supporting the Congregations that make
up the Synod.
1,605,872
0
616,493
(471,453)
145,040
1,750,912

A portion of the Congregations' Synod Fee contribution to the restricted Salary Savings Fund is treated, at an amount approved and authorised by the Synod Assembly, as unrestricted income in order to cover a set percentage of the eligible previous-year net operational loss in the Synod's unrestricted funds.

Page 30 of 31

Synod of German-speaking Lutheran, Reformed and United Congregations in Great Britain Notes to the Financial Statements (Continued)

21 - RELATED PARTY DISCLOSURES

There were no related party transactions in the reporting period.

22 - EXTERNAL PURPOSES

The Synod serves as agent of the German Seamen's Mission (DSM) in the United Kingdom to administer funds of the DSM under their instruction for processed the salaries of DSM staff in the UK. Funds are held and expended on behalf of DSM. Incoming funds for this purpose are not treated as income of the Synod and their distribution is not treated as expenditure by the Synod.

In 2021, £ 10,000 was received and £34,400 paid for DSM staff salaries. At year’s end, the funds held for DSM amounted to £ 10,838 (2020: £ 35,238)

Page 31 of 31