REGISTERED CHARITY NUMBER: 273454
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Financial Statements
31st December 2021
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Contents of the Financial Statements for the year ended 31st December 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 13 |
| Detailed Statement of Financial Activities | 14 |
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Report of the Trustees for the year ended 31st December 2021
The trustees present their report with the financial statements of the charity for the year ended 31st 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the charity are to provide and promote fellowship between Evangelical Congregational Churches. The charity operates with volunteers. It is connected to the following charity:
262802 The Evangelical Fellowship of Congregational Churches General Purpose Fund.
1127720 The Evangelical Fellowship of Congregational Churches Trust Corporation Limited.
Training for the ministry of the congregational denomination which may include the payment of grants to persons in need of financial assistance during training with preference being given to persons who are members of churches in membership with an Evangelical Fellowship of Congregational Churches.
The upkeep and repair of the buildings of member churches and the maintenance of services therein. The improvement or extension of the buildings of member churches. The provision or erection of buildings in England and Wales for use for the purposes of congregational churches or as residences for ministers of such churches.
To relieve in cases of need persons who have at any time been ministers of any of the member churches and the wives, widows and other dependents of such persons.
The benefit of the children of ministers of any of the member churches.
To further the religious and other charitable work of member churches and subject thereto for the advancement of religion in England and Wales in accordance with the doctrines and practices of the congregational denomination.
To make grants to member churches to be applied in or towards paying the stipends of ministers of member churches or maintaining the ministry therein and subject thereto in or towards maintaining the ministry in congregational churches in England or Wales.
To provide and maintain land and buildings for use as residences for retired ministers who have at any time been ministers of any of the member churches and the wives and widows of such ministers or in assisting such ministers and the wives and widows of such ministers to obtain residential accommodation by the granting to them of loans or of rent or other hire charges payable by them in respect of such residential accommodation.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
During the year the charity continued to support and promote the work of The Evangelical Fellowship of Congregational Churches throughout England and Wales and the financial activities are set out on pages 5 to 11. The charity's income is applied to the support and employment of individuals, the resourcing of activities, gifts and donations to third parties and general administrative and property costs. The Trustees have considered the Commission's guidance on public benefit and are of the opinion that this is fulfilled by the charity's continued support of establishments for the advancement of religion.
The charity's financial position at 31st December, 2021 is considered to be satisfactory. The charity's assets are available and adequate to fulfil its obligations
Page 1
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Report of the Trustees for the year ended 31st December 2021
FUTURE PLANS
The Ministry Director encourages church growth and the appropriate use of funds.
Ministers will continue to be circulated in order to identify those on low stipends that would benefit from the charity's help.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity was registered with the Charity Commission under Reference 273454 and its governing instruction adopted on 26th July, 1977 and is structured in accordance with the Trust Corporation Memorandum dated 5th January, 1993.
Throughout the year the trust was administered by The Evangelical Fellowship of Congregational Churches Trust Corporation Limited. The power of appointment of new Trustees to the Trust lies with the existing trustees. New trustees are appointed with a view to the board of trustees providing the complementary mix of skills necessary to perform the trustees' function. Trustees are encouraged to obtain training so as to increase their skills, such training being funded by the charity.
The Trustees meet approximately four times a year, together with such further ad-hoc meetings as and when required. All key decisions relating to the running and operation of the charity are made by the Charity Trustees. Day to day operational decisions relating to the running of the charity's are delegated to the Ministry Director, Office Manager and administration staff.
The responsibility to ensure appropriate management of the charity is vested in the Board of Trustees. To assist the Board in discharging and achieving its responsibilities a General Committee, of which the Chairman and Vice Chairman are trustees, takes responsibility for the pastoral concerns of the member churches, the acceptance of new churches into the membership, support and advice for member churches and the ministers conference
Risk management
The trustees have conducted a review of the major risks to which the charity is exposed and appropriate systems have been established to mitigate those risks. These include the implementation and monitoring of policies relating to Health and Safety, Internal Financial Controls and Reserves.
In particular internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are regularly reviewed to ensure that they still meet the needs of the charity.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
273454
Principal address
Latimer Congregational Church Grovehill Road Beverley East Yorkshire HU17 0JD
Trustees
The EFCC Trust Corporation
Page 2
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Report of the Trustees for the year ended 31st December 2021
REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner
Smailes Goldie Chartered Accountants Regent's Court Princess Street Hull East Yorkshire HU2 8BA
Solicitors
Wrigleys Solicitors LLP, 19 Cookridge Street, Leeds. LS2 3AG
Bankers:
Charities Aid Foundation, West Malling, Kent. ME19 4TA
RESERVES POLICY Endowment funds
Endowment funds received are retained as reserves and the income is transferred to unrestricted funds to be used for the benefit of the trust.
Restricted funds
Restricted funds received are retained as reserves and the income generated is used to fulfil the objects of the trust.
Designated funds
These funds have been set aside by the trustees to provide homes for retired ministers.
Unrestricted funds
Reserves are retained to enable future operations to be funded for a period of up to one year, after taking into account anticipated net income for that period.
Approved by order of the board of trustees on 5[th] April 2022 and signed on its behalf by:
....................................................................... The EFCC Trust Corporation - Trustee
Page 3
Independent Examiner's Report to the Trustees of Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Independent examiner's report to the trustees of Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
I report to the charity trustees on my examination of the accounts of Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches (the Trust) for the year ended 31st December 2021.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all 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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable 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.
L D Taylor, BSc (Hons) ACA CF Smailes Goldie Chartered Accountants Regent's Court Princess Street Hull East Yorkshire HU2 8BA Date: 5[th] April 2022
Page 4
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Statement of Financial Activities for the year ended 31st December 2021
| 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | Designated | Total | Total | ||
| Notes | funds | funds | fund | fund | funds | funds | |
| £ | £ | £ | £ | £ | £ | ||
| INCOME AND ENDOWMENTS | |||||||
| FROM | |||||||
| Donations and legacies | 933 | - | - | - | 933 | 929 | |
| Investment income | 2 | 21,488 | 37,094 | - | 21,968 | 80,550 | 80,640 |
| | |||||||
| Total | 22,421 | 37,094 | - | 21,968 | 81,482 | 81,569 | |
| EXPENDITURE ON | |||||||
| Charitable activities | 3 | ||||||
| Charitable | 16,030 | 88,277 | - | - | 104,307 | 75,737 | |
| Net gains/(losses) on | |||||||
| investments | 56,879 | 78,862 | 96,839 | 40,000 | 272,580 | (132,425) | |
| | |||||||
| NET INCOME/(EXPENDITURE) | 63,270 | 27,679 | 96,839 | 61,968 | 249,756 | (126,593) | |
| RECONCILIATION OF FUNDS | |||||||
| Total funds brought forward | 624,314 | 862,226 | 530,875 | 687,487 | 2,704,902 | 2,831,495 | |
| | |||||||
| TOTAL FUNDS CARRIED | |||||||
| FORWARD | 687,584 | 889,905 | 627,714 | 749,455 | 2,954,658 | 2,704,902 | |
| |
The notes form part of these financial statements
Page 5
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Balance Sheet 31st December 2021
| Notes FIXED ASSETS Tangible assets 6 Investments Investments 7 Investment property 8 CURRENT ASSETS Debtors: amounts falling due within one year 9 Cash at bank CREDITORS Amounts falling due within one year 10 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 12 Unrestricted funds Restricted funds: Restricted fund Designated fund Endowment funds TOTAL FUNDS |
2021 £ 205,085 1,722,442 585,000 2,512,527 351,781 99,288 451,069 (8,938) 442,131 2,954,658 2,954,658 687,584 889,905 749,455 1,639,340 627,714 2,914,658 |
2020 £ 525,085 1,514,861 200,000 2,239,946 352,667 114,800 467,467 (2,510) 464,957 2,704,903 2,704,903 624,314 862,226 687,487 1,549,713 530,875 2,704,903 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 5[th] April 2022 and were signed on its behalf by:
............................................. The EFCC Trust Corporation - Trustee
The notes form part of these financial statements
Page 6
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements for the year ended 31st December 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
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.
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 particular headings they have been allocated to activities on a basis consistent with the use of resources.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern
Tangible fixed assets
Tangible fixed assets are capitalised and included at cost including any incidental expenses of acquisition. Expenditure of a capital nature is capitalised when the amount expended per item is over £500.
| Asset class: | Depreciation method and rate |
|---|---|
| The freehold and leasehold properties are maintained in a state | |
| of repair such that their estimated remaining economic life is | |
| expected to exceed 50 years and on this basis depreciation is | |
| Freehold properties | not charged. |
| Long leasehold | Over the period of he lease. |
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Page 7
continued...
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
1. ACCOUNTING POLICIES - continued
Fund accounting
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Fixed assets
Consecrated land and buildings and moveable church furnishings
Consecrated and beneficed property is excluded from the financial statements by s10(2)(a) and (c) of the Charities Act 2011.
All expenditure incurred during the year on consecrated or beneficed buildings and moveable church furnishings, whether maintenance or improvement, is written off as expenditure in the Statement of Financial Activities.
2. INVESTMENT INCOME
| Rents received Investment income |
2021 £ 21,968 58,582 80,550 |
2020 £ 25,678 54,962 80,640 |
|---|---|---|
3.
CHARITABLE ACTIVITIES COSTS
| Charitable activities Costs directly allocated to activities Ministerial training and church support Retired ministers General purpose Welfare Education Church extension Support costs allocated to activities: Administration and finance |
2021 £ 11,628 31,962 13,881 - 418 40,000 6,418 104,307 |
2020 £ 16,502 36,353 15,082 1,699 - - 6,101 75,737 |
|---|---|---|
Page 8
continued...
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
4. TRUSTEES' REMUNERATION AND BENEFITS
The trustee being the EFCC Trust Corporation Limited does not receive any remuneration from the charity.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
6.
| Unrestricted funds Restricted funds Endowment fund Designated funds £ £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 929 - - - Investment income 20,096 34,866 - 25,678 Total 21,026 34,866 - 25,678 EXPENDITURE ON Charitable activities Charitable 17,049 58,689 - - Net gains/(losses) on investments 17,744 (26,497) (123,672) - NET INCOME/(EXPENDITURE) 21,721 (50,320) (123,672) 25,678 RECONCILIATION OF FUNDS Total funds brought forward 602,593 912,546 654,547 661,809 TOTAL FUNDS CARRIED FORWARD 624,314 862,226 530,875 687,487 TANGIBLE FIXED ASSETS COST At 1st January 2021 Reclassification At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 |
Total funds £ 929 80,640 81,569 75,737 (132,425) (126,593) 2,831,495 2,704,902 Freehold Property £ 525,085 (320,000) 205,085 205,085 525,085 |
|---|---|
Page 9
continued...
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
7. FIXED ASSET INVESTMENTS
| MARKET VALUE At 1st January 2021 Revaluations At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 Market value at 1st Januar7 Increase/(decrease) in value for the year Market value at 31st December Analysis of investments: UK Equity and Equity Fund Global Equities & Equities Funds Multi Asset Funds Direct Property & Property Funds Fixed Interest & Fixed Interest Funds Other assets Total cash Charity UK Bonds Investments exceeding 5% of market value of portfolio: Conbrio FN PTN Ltd CFP Castlefield Real Return Conbrio FD PTN Ltd Castlefield Best Sust Income Gen M&G Equities Funds for Charities (Charifund) Sterling Income |
2021 £ 1,514,862 207,580 1,722,442 2021 £ 1,028,274 372,045 191,434 76,305 33,045 10,493 7,798 2,685 1,722,079 2021 £ 152,634 246,384 553,031 952,048 |
2021 £ 1,514,862 207,580 1,722,442 2021 £ 1,028,274 372,045 191,434 76,305 33,045 10,493 7,798 2,685 1,722,079 2021 £ 152,634 246,384 553,031 952,048 |
Listed investments £ 1,514,861 207,581 1,722,442 1,722,442 1,514,861 2020 £ 1,684,287 (169,425) 1,514,862 2020 £ 890,043 338,970 239,698 78,422 31,246 20,872 7,420 2,945 1,609,616 2020 £ 223,029 305,661 487,771 1,016,462 |
|
|---|---|---|---|---|
| 2021 £ 1,028,274 372,045 191,434 76,305 33,045 10,493 7,798 2,685 1,722,079 2021 £ 152,634 246,384 553,031 952,048 |
||||
Page 10
continued...
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
8. INVESTMENT PROPERTY
| FAIR VALUE At 1st January 2021 Revaluation Reclassification At 31st December 2021 NET BOOK VALUE At 31st December 2021 At 31st December 2020 |
£ 200,000 65,000 320,000 585,000 585,000 200,000 |
|---|---|
The trustees confirm that to the best of their knowledge and having taken appropriate professional advice that the valuations above are consistent with the fair value of the properties at 31 December 2021.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Investments made by EFCC Trust Corporation EFCC Trust Corporation Bridgnorth Loan |
2021 £ 271,885 75,543 4,353 351,781 |
2020 £ 271,885 75,154 5,627 352,666 |
|---|---|---|
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
EFCC General Purposes Fund
| 2021 £ 8,938 |
2020 £ 2,510 |
|---|---|
Page 11
continued...
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
11. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Fixed assets Investments Net current assets |
Unrestricted funds £ 225,000 247,427 215,157 |
Designated funds £ 565,085 - 184,370 |
Restricted funds £ - 597,853 292,052 |
Endowment funds £ - 877,162 (249,448) |
2021 Total funds £ 790,085 1,722,442 442,131 |
2020 Total funds £ 725,085 1,514,862 464,955 2,704,902 |
|---|---|---|---|---|---|---|
| 687,584 | 749,455 | 889,905 | 627,714 | 2,954,658 |
12. MOVEMENT IN FUNDS
| Endowment Funds Church extension Welfare General purpose Maintenance of the Ministry Homes for retired Ministers Restricted Funds Ministerial training Church extension Welfare Educational Maintenance of the Ministry Homes for retired Ministers Designated Funds At 31.12.20 £ Homes for retired ministers 687,487 |
At 31.12.20 £ 338,856 93,348 126,002 14,940 - 269,080 |
At 31.12.20 £ 188,871 43,809 252,707 35,083 10,405 |
gain unrealised £ 24,229 4,491 32,000 4,543 31,576 |
At 31.12.21 £ 213,100 48,300 284,707 39,626 41,981 627,714 At 31.12.21 £ 393,048 66,978 144,648 16,000 - 269,231 889,905 At 31.12.21 £ 749,455 |
|---|---|---|---|---|
| 530,875 Investment gain unrealised £ 60,592 3,797 13,340 1,113 - 20 |
96,839 Net Movement in funds £ (6,400) (30,167) 5,306 (53) - (19,869) |
|||
| 862,226 Gains/ (losses) realised £ - |
78,862 Net Movement in funds £ 21,968 |
(51,183) Revaluation £ 40,000 |
Page 12
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Notes to the Financial Statements - continued for the year ended 31st December 2021
13. RELATED PARTY DISCLOSURES
At the year end there were the following balances due from related parties:
| EFCC Trust Corporation Bridgnorth At the year end there were the following balances due to related parties: EFCC General Purposes Fund |
2021 £ 338,490 4,353 342,843 2021 £ 8,938 |
2020 £ 348,737 5,627 354,666 2020 £ 2,510 |
|---|---|---|
Page 13
Charities Administered in Connection with the Evangelical Fellowship of Congregational Churches
Detailed Statement of Financial Activities for the year ended 31st December 2021
| INCOME AND ENDOWMENTS Donations and legacies Gifts Grants Investment income Rents received Investment income Total incoming resources EXPENDITURE Charitable activities Ministerial and church support Retired ministers General purpose Welfare Education Church extension Support costs Management Administration and finance Total resources expended Net (expenditure)/income before gains and losses Unrealised recognised gains and losses Unrealised gains/(losses) on fixed asset investments Unrealised gains on investment property Net income/(expenditure) |
2021 £ 932 933 21,968 58,582 80,550 81,482 11,628 31,962 13,881 - 419 40,000 97,890 6,418 104,308 (22,826) 207,580 25,000 209,754 |
2020 £ 929 929 25,678 54,962 80,640 81,569 16,502 36,353 15,082 1,699 - - 69,636 6,101 75,737 5,832 (169,425) 37,000 (126,593) |
|---|---|---|
This page does not form part of the statutory financial statements
Page 14