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2020-12-31-accounts

Registered number: 1437414 Charity number: 280859

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Directors and advisers 1
Directors' report 2 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 37

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Directors

Miss C J C Kerslake, Chair Rev A B Hauser Mrs R M Hauser Mr J R Frith Mr H W Storm (appointed 16 October 2020)

Company registered number

1437414

Charity registered number

280859

Registered office

34 Victoria Avenue Harrogate North Yorkshire HG1 5PR

Independent auditors

Griffin Stone Moscrop & Co Chartered Accountants 21-27 Lamb's Conduit Street London WC1N 3GS

Bankers

Barclays Bank plc Level 27 One Churchill Place London E14 5HP

Solicitors

Wilson Bramwell Solicitors Ltd 34 Victoria Avenue Harrogate North Yorkshire HG1 5PR

Page 1

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The directors (who are also the trustees) present their annual report together with the audited financial statements of the company for the year 1 January 2020 to 31 December 2020. The annual report serves the purposes of both a trustees' report and a directors' report under company law. The directors confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Servants Fellowship International (SFI) is established as a company limited by guarantee and is registered as a charity with the Charity Commission. The affairs of the company are governed by its Memorandum and Articles of Association. Ultimate responsibility lies with the board of directors, who meet regularly to review the activities and financial position of the charity. For the purposes of charity law, the directors act as trustees of the charity. New directors are appointed from time to time by the existing directors. Recruitment of new directors focuses on individuals with a long-standing knowledge of the charity and who are known personally to the existing directors. At each Annual General Meeting, one-third of the trustees retire by rotation (those who have been longest in office since their appointment or last re-appointment) and any who are willing to act may be reappointed. Induction and training of trustees includes providing them with copies of the charity's governing documents, "The Essential Trustee: What you need to know" (Charity Commission publication CC3), and the charity's Statement of Faith.

Trustees are normally familiar with the work of the charity already (see above on recruitment) but any extra information necessary will be provided. New trustees are required to sign a statement that they have read and understood “The Essential Trustee: What you need to know” (Charity Commission publication CC3), that they are not disqualified from acting as a trustee (Charity Commission publication “Automatic disqualification rules for charity trustees and charity senior positions”), that they affirm the charity's Statement of Faith, and that they will seek to act always in accordance with Biblical principles. They are also required to declare in writing any potential conflicts of interest.

RISK ANALYSIS

The trustees consider the principal risks affecting the charity to be:

  1. Damage to the project related investment properties, which risk the trustees seek to minimise by maintaining adequate insurance cover;

  2. Tenants at the properties unable to pay rent due to ongoing COVID-19 pandemic;

  3. Loss or damage to the growing collection of research materials and heritage assets. The policy for the maintenance of heritage assets set out in note 13 to the financial statements addresses this risk and the collection of research materials benefits from most of the measures in place for heritage assets.

Page 2

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES

In accordance with its Memorandum and Articles, as amended by Special Resolution dated 6 November 2009, Servants Fellowship International (SFI) seeks to maintain, advance and promote the Christian faith, to communicate the teaching of the Bible and the Gospel of the Lord Jesus Christ, and to promote, undertake and publish research into the relationship, effect and impact upon Christian churches and Christian communities and the Judaeo-Christian heritage in society in the United Kingdom and elsewhere of non-Christian faiths and ideologies.

Objectives, activities, achievements and performance in the year

The principal activity of the company during the year has been to advance and promote the Christian faith, the teachings of the Bible and the Gospel of the Lord Jesus Christ, and to facilitate research into the impact on the Church and Christian communities of non-Christian faiths and ideologies.

With the rapidly changing nature of pluralist societies around the world, with resultant conflict and tensions developing, social cohesion coupled with the inter-relationship of cultures has become crucial. SFI, with its history in inner city understanding of cultures and religions and communications, has been able to provide assistance in these and other areas.

Related parties and co-operation with other organisations

SFI worked in partnership with Christian organisations and individuals engaged in similar ministry.

Transactions with those other organisations are stated in the notes to the accounts.

SFI has for many years made available the majority of its freehold property to Barnabas Fund, and to Christian Relief International (“CRI”), related charities with similar objects, for use in their operations.

The company owns 100% of the share capital of Harvester Conferences Limited a company registered in England and Wales, company number 3727424, and Registered Charity Number 1144859, an organisation with objects compatible with those of Servants Fellowship International. On 25 February 2020 the directors of Harvester Conferences Limited submitted to Companies House an application for Strike Off, as the company is no longer required. Completion of the strike off process took place on 29 September 2020.

Public benefit

In preparing this report, the trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.

In accordance with the charity's objects, the charity directly benefits a certain section of the public i.e. Christians functioning in plural societies or other cross-cultural contexts. Within this section of the public are a range of denominations, nationalities and ethnic groups. It also directly benefits other sections of the public in that help can be made available to anyone irrespective of faith who seeks information, advice or resources about crosscultural socio-religious issues. The charity benefits the public as a whole by increasing the level of understanding of other faiths and ideologies and their impact on the Judeo-Christian heritage of the UK and other societies, thus contributing to societal harmony, stability and mutual understanding.

Information, advice and training on the areas of cross-cultural communication, social cohesion and related subjects help to provide skills and information for Christians engaged in ministry in plural contexts, thus maintaining, advancing and promoting the Christian faith, as well as for other members of the public. Likewise, the provision of consultancy, advice, information, research, publications and other resources on the same range of subjects help to equip Christians functioning in such contexts and thus to maintain, advance and promote the Christian faith as well as to provide information for the general public on the impact of non-Christian faiths and ideologies on society.

Support for Christian workers directly serves to maintain, advance and promote the Christian faith and to communicate the teaching of the Bible and the Gospel of the Lord Jesus Christ.

Page 3

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The significant activities of the charity in the year can be considered under three headings, as follows:

  1. Information, Research, Education and Trainin g – The charity aims to help Western Christians and others understand the nature of other cultures and of a multi-cultural society, the nature of other religions, the relationship of religion to culture, the relationship of religion to violence, the interaction of religion and law, and related subjects. The charity made grants to support the Moscrop Research Library, which focuses on religion and culture. A grant was made to assist a local Christian School.

  2. Consultancy and Advice – Advice was given on cross-cultural mission and the impact of non-Christian faiths on Western society, and related issues.

  3. Christian Ministry - Support was given to a Christian ministry in London.

FINANCIAL REVIEW

The result of the charity's financial activities for the year is shown on page 11 with the balance sheet shown on the page immediately after that. The financial position of the charity at the end of the year is regarded as satisfactory.

Fixed assets

Details of the changes to the fixed assets are shown in notes 11 - 14. The directors consider that the value in use of the land and buildings is in line with the net book value.

The Enfield Property Trust (as referred to in note 12 to the accounts) was established to facilitate the support of needy Christian workers.

Investment policy

Any surplus funds are held in the company’s bank accounts.

Reserves policy

The total funds of the charity amounted to £6,696,852 at 31 December 2020 (2019 - £6,696,486). To facilitate understanding of the reserves of the charity, the charity has designated reserves to support both the property and the social and programme related investments of the charity and set aside a proportion of its general fund to cover the costs of major repairs to its property estate. These reserves are outlined as follows:-

Designated reserves Library fund

This fund represents the net book value of the Moscrop Research Library of £1,186,770 (2019 - £1,215,252) which as described elsewhere in the report is being used in accordance with the charitable activities of the company and cannot be realised without disposing of freehold property.

Research Materials Fund

This fund represents the net book value of works of £54,915 (2019 - £142,025) of an academic nature of finite useful life in the large collection of specialist scholarly books held in the library which is used by Christian and other researchers in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of the academic works. During the year acquisitions of academic works amounting to £62,092 were made and accordingly a transfer of this amount has been made to the fund from the general fund.

Texts and Artefacts Fund

This fund represents the net book value of £855,054 (2019 - £811,525) of texts and artefacts of some historicity in the large collection of specialist scholarly books held in the library which is used by Christian and other researchers in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of the texts and artefacts. During the year acquisitions of texts and artefacts of some historicity amounting to £43,529 were made and accordingly a transfer of that amount has been made to the fund from the general fund.

Page 4

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

International study centre

This fund represents the net book value of £191,301 (2019 - £195,552) of freehold buildings constructed to provide a study centre to be used in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of freehold buildings. Depreciation of the building has been charged to the fund during the year.

Programme related buildings fund

This fund represents the net book value of the properties owned by the charity made available to related charities with similar objects, for use in their operations, amounting to £3,169,314 (2019 - the same) and has been set aside as the directors do not anticipate any disposal of the property and the value of this fund cannot be realised without disposing of freehold buildings.

Programme related loans end programme related subsidiary companies funds

These funds represent the value of programme related loans £658,917 (2019 - £618,841). Programme related loans are loans made to similar entities who share the same objectives and purpose of Servants Fellowship International for use in their operations.

Exchange gains/(losses) on loans to overseas entities have been credited/debited to the programme related loans fund.

Major repairs fund

As the charity owns two large, old, listed buildings. During the year an amount of £7,391 has been spent on renovations to these buildings.

The level of reserves

We now have sufficient reserves set aside and the charity is seeking suitable projects to fund from its undesignated general reserves.

Monitoring and reviewing the policy

The policy will be reviewed at the end of each financial year and the amount of reserves required recalculated according to the prevailing situation.

PLANS FOR THE FUTURE

The model of working in partnership with other bodies seems to be increasingly popular in many spheres of life. SFI seeks to be flexible and to adapt the methodology of achieving its objects in the coming years, and anticipates that it may well involve increasing partnership with other charities or ministries with similar aims. SFI can provide resources in terms of office space, personnel, funds, library and research material, which can be shared with other charities, for example, those engaged in Christian training and research.

SFI will continue monitoring the COVID-19 pandemic, and the impact it has had, and will have, on Christian ministries in the UK and globally. Of particular interest to SFI is the monitoring of the impact of COVID on the ministries of our tenants. SFI is grateful that COVID-19 has not had a negative impact on the organisation to date, and thank the Lord for His protection and provision.

Page 5

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The trustees (who are also directors of Servants Fellowship International for the purposes of company law) are responsible for preparing the directors' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors 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 the incoming resources and application of resources, including the income or expenditure, of the charitable company for the year. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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 also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure of information to auditors

We, the directors of the company who held office at the date of approval of these accounts, as set out above, each confirm so far as we are aware, that:

The above report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Auditors

Griffin Stone Moscrop & Co were appointed as auditors to the company for the year ended 31 December 2020. It is expected that they will be reappointed for the next financial year.

Approved by order of the members of the board of directors and signed on their behalf by:

Miss C J C Kerslake

Chair of Trustees Date:

Page 6

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF SERVANTS FELLOWSHIP INTERNATIONAL

Opinion

We have audited the financial statements of Servants Fellowship International (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 7

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)

Responsibilities of trustees

As explained more fully in the directors' responsibilities statement, the directors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 9

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Hill (senior statutory auditor)

for and on behalf of

Griffin Stone Moscrop & Co Chartered Accountants Statutory Auditors 21-27 Lamb's Conduit Street

London WC1N 3GS

Date:

Page 10

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income from:
Donations and legacies
3
Investments
4
Exchange gain on retranslation of
foreign currency bank accounts
Total income
Expenditure on:
Raising funds
Charitable activities
5
Total expenditure
Net expenditure before net
gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
772,748
204,135
2,647
979,530
-
1,018,972
1,018,972
(39,442)
39,808
366
6,696,401
366
6,696,767		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-
-
85
-
85		 Total
funds
2020
£
772,748
204,135
2,647
979,530
-
1,018,972
1,018,972
(39,442)
39,808
366
6,696,486
366
6,696,852		 Total
funds
2019
£
181,745
212,434
-
394,179
12,500
3,233,706
3,246,206
(2,852,027)
(2,634)
(2,854,661)
9,551,147
(2,854,661)
6,696,486

The notes on pages 14 to 37 form part of these financial statements.

Page 11

SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee) REGISTERED NUMBER: 1437414

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
11
Heritage assets
13
Programme related investments
14
Investment property
12
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 17,523
104,921
122,444
(52,925)		 2020
£
1,454,049
855,054
3,828,230
490,000
6,627,333
69,519
6,696,852
85
6,696,767
6,696,852		 17,395
89,518
106,913
(81,286)		 2019
£
1,580,914
811,525
3,788,420
490,000
6,670,859
25,627
6,696,486
85
6,696,401
6,696,486

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the directors and signed on their behalf by:

Miss C J C Kerslake

Chair of Trustees

Date:

The notes on pages 14 to 37 form part of these financial statements.

Page 12

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets and heritage assets
Repayment of overseas loans
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 14 to 37 form part of these financial statements		 2020
£
(83,111)
204,135
(105,621)
-
98,514
-
15,403
89,518
104,921		 2019
£
(2,216,979)
212,434
(62,676)
2,073,837
2,223,595
-
6,616
82,902
89,518

Page 13

SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

Servants Fellowship International (SFI) is established as a company limited by guarantee and is registered in England and Wales under Company Number 1437414. The company is also a registered as a charity with the Charity Commission under charity number 280859.

The charity's principal address and registered office is 34 Victoria Avenue, Harrogate, England, HG1 5PR.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Servants Fellowship International meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Presentation of consolidated financial statements

The charity has taken advantage of the exemption provided by paragraph 19(1)(d) of The Charities (Accounts and Reports) Regulations 2008 from preparing consolidated accounts in respect of its wholly owned subsidiary company Pewsey Trading Company Limited company number 4414938 on the grounds that it is entitled to that exemption as that subsidiary is immaterial for the purpose of giving a true and fair view.

2.3 Company status

The charity is a company limited by guarantee. The members of the company are the directors named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Page 14

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.4 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the company's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 15

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Freehold property - 2% on cost
Plant and machinery - 25% on the reducing balance
Motor vehicles - 25% on the reducing balance
Computer equipment - 25% on the reducing balance
Library books - 20% on cost

2.8 Heritage assets

Where heritage assets have been purchased, they are initially recognised at cost. After recognition, under the cost model, heritage assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Page 16

SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and 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.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the directors in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 17

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Income from donations and legacies

Unrestricted
funds
2020
£
Donations from other related parties
81,945
Grant from former subsidiary
690,803
772,748
Unrestricted
funds
2019
£
Donations from other related parties
177,924
Other donations
2,178
180,102		 Restricted
funds
2020
£
-
-
-
Restricted
funds
2019
£
1,643
-
1,643		 Total
funds
2020
£
81,945
690,803
772,748
Total
funds
2019
£
179,567
2,178
181,745

4. Investment income

Unrestricted
funds
2020
£
Rental income
200,986
Bank interest received
266
Loan interest received
2,883
204,135		 Total
funds
2020
£
200,986
266
2,883
204,135

Page 18

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. Investment income (continued)

Rental income
Income from local listed investments
Loan interest received		 Unrestricted
funds
2019
£
204,320
9
8,105
212,434		 Total
funds
2019
£
204,320
9
8,105
212,434

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2020
£
Charitable activities
1,018,972
Unrestricted
funds
2019
£
Charitable activities
3,233,706		 Total
funds
2020
£
1,018,972
Total
funds
2019
£
3,233,706

Page 19

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Analysis of expenditure by activities

Charitable activities
Charitable activities
Analysis of support costs
Staff support costs
Depreciation
Travelling expenses
Communication and office costs
Repairs and maintenance costs
Insurance
Other overhead expenses
Legal and professional fees
Governance costs		 Grant
funding of
activities
2020
£
692,189
Grant
funding of
activities
2019
£
2,912,935		 Support
costs
2020
£
326,783
Support
costs
2019
£
320,771
Activities
2020
£
73,750
188,957
4
2,991
7,922
29,887
5,313
1,964
15,995
326,783		 Total
funds
2020
£
1,018,972
Total
funds
2019
£
3,233,706
Total
funds
2020
£
73,750
188,957
4
2,991
7,922
29,887
5,313
1,964
15,995
326,783

Page 20

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff support costs
Depreciation
Travelling expenses
Communication and office costs
Repairs and maintenance costs
Insurance
Other overhead expenses
Legal and professional fees
Governance costs		 Activities
2019
£
115,133
115,543
1,513
2,859
26,211
26,108
10,815
2,192
20,397
320,771		 Total
funds
2019
£
115,133
115,543
1,513
2,859
26,211
26,108
10,815
2,192
20,397
320,771

7. Analysis of grants

Grants Paid
Grants Paid		 Grants to
Institutions
2020
£
675,189
Grants to
Institutions
2019
£
2,846,519		 Grants to
Individuals
2020
£
17,000
Grants to
Individuals
2019
£
66,416		 Total
funds
2020
£
692,189
Total
funds
2019
£
2,912,935

The company has made the following material grants to institutions during the year:

Page 21

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Analysis of grants (continued)

Name of institution
Marantha Christian School
VirtueOnline
Binyamin Ministries
K.A.F. KITI Almond Foundation
Barnabas Fund Inc. (write-off of balance of loan made previously not
repaid)
Epaphras Trust
Pewsey Trading Company Limited		 2020
£
10,000
7,977
2,000
655,212
-
-
-
675,189
675,189		 2019
£
-
-
-
2,073,085
747,434
25,000
1,000
2,846,519
2,846,519

8. Auditors' remuneration

The auditors' remuneration amounts to a fee for the preparation and audit of the financial statements of £7,800 (2019 - £7,604).

9. Staff costs

Wages and salaries 2020
£
81,945
81,945		 2019
£
127,926
127,926

The average number of persons employed by the company during the year was as follows:

2020 2019
No. No.
Staff 2 3

No employee received remuneration amounting to more than £60,000 in either year.

These relate to recharged staff costs for individuals engaged to work by Christian Relief International but whose time is spent in supporting the work of SFI. In 2020, the average number of staff whose time was recharged was 2 (2019 - 2).

Page 22

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. Directors' remuneration and expenses

During the year, no directors received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 December 2020, no director expenses have been incurred (2019 - £NIL).

11. Tangible fixed assets

Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Freehold
property
£
1,636,651
-
1,636,651
225,847
32,733
258,580
1,378,071
1,410,804		 Plant and
machinery
£
18,533
-
18,533
7,292
2,811
10,103
8,430
11,241		 Motor
vehicles
£
58,959
-
58,959
42,115
4,211
46,326
12,633
16,844		 Computer
equipment
£
3,206
-
3,206
3,206
-
3,206
-
-		 Library
books
£
2,666,949
62,092
2,729,041
2,524,924
149,202
2,674,126
54,915
142,025		 Total
£
4,384,298
62,092
4,446,390
2,803,384
188,957
2,992,341
1,454,049
1,580,914

Page 23

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Investment property

Freehold
investment
property
£
Valuation
At 1 January, and 31 December 2020 490,000

During 2009 the company received the gift of a dilapidated residential property. The market value at the time of the gift was considered to be £140,000. Since that time Servants Fellowship International has undertaken a major renovation programme on the property to prepare it for sale and the carrying value at the balance sheet date reflects the opening value and the costs incurred to date. Although the property was marketed for a time, in view of the current state of the market it was agreed that the property be let to an unrelated third party at a market rent. The trustees are confident that the carrying amount will be recovered in full when the property is sold.

The property has been assessed and an open market value of £490,000 has been suggested if the property were to be sold and the directors have considered that the financial statements reflect that carrying value as at 31 December 2020.

Page 24

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Heritage assets

Assets recognised at cost

Carrying value at 1 January 2020
Additions
Analysis of heritage asset transactions
2020
£
Purchases
Texts and artefacts
43,529
Donations
Texts and artefacts
-
Total additions
43,529		 2019
£
21,188
-
21,188		 2018
£
8,351
-
8,351		 Texts and
artefacts
2020
£
811,525
43,529
855,054
2017
£
5,741
-
5,741		 Total
2020
£
811,525
43,529
855,054
2016
£
34,055
742,190
Purchases
Texts and artefacts
Donations
Texts and artefacts
Total additions
776,245

Texts and artefacts of some historicity are acquired for use within the library by Christian and other researchers in accordance with the charitable activities of the company. Historic books are included within the library cataloguing system and artefacts are noted separately. All of the items in the collection are considered "stable", so no special arrangements are necessary for their preservation, but they are securely kept in locked cabinets in an alarmed building on a secure site with a night watchman. Access is by appointment only and items may not be removed from the building. The directors reserve the right to refuse access to persons whom they consider unlikely to treat the historic items with due respect.

Page 25

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Programme related investments

Programme
related
investments
£
Cost or valuation
At 1 January 2020
3,788,420
Revaluations
40,076
Write off loan to subsidiary & shares in subsidiary
(266)
3,828,230
Impairment provision
-
Net book value
At 31 December 2020
3,828,230
At 31 December 2019
3,788,420		 Total
£
3,788,420
40,076
(266)
3,828,230
-
3,828,230
3,788,420

Page 26

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Programme related investments (continued)

Programme related investments

Tangible fixed assets

Subsidiary
Property Loans company Total Total
2020 2020 2020 2020 2019
£ £ £ £ £
3,169,312 - - 3,169,312 3,169,312

The charity has for many years made available the majority of its freehold property to Barnabas Fund, and more recently Barnabas Aid International/Christian Relief International, related charities with similar objects, for use in their operations. The directors consider those parts of its property as programme related investments.

Loans to support overseas
entities		 - 658,917 - 658,917 618,841

As outlined in the directors report, the charity has for a number of years supported other charities with similar objectives. This support has for some years included loans made to overseas charities as detailed below.

An original loan in the sum of A$568,000 (£320,432 when translated) (2019 - £300,943) to Barnabas Fund (Australia) Ltd. In 2015 a further loan of A$600,000 (£338,485 when translated) (2019 - £317,898) was advanced to Barnabas Fund (Australia) Ltd.

The loan balance due from Barnabas Fund (Australia) Ltd at the year end has been retranslated into £ at the exchange rate at 31 December 2020 in accordance with the accounting policy, giving rise to a net foreign exchange gain of £40,076 (2019 - £26,202 loss) relating to loans to 2 different entities outlined above) and this has been recorded on the face of the statement of financial activities and has been taken to the programme related loans fund.

- - 1 1 267
Subsidary companies

Pewsey Trading Company Limited, a company limited by shares, registered in England and Wales, Company Number 04414938, is a wholly owned subsidiary. As at 31 December 2020 the company had capital and reserves of £694 (2019 - £755).

Page 27

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15. Debtors

Due within one year
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 2020
£
-
84
17,439
17,523		 2019
£
2
86
17,307
17,395

16. Creditors: Amounts falling due within one year

Amounts owed to group undertakings
Other creditors
Accruals and deferred income		 2020
£
-
30,208
22,717
52,925		 2019
£
33,249
27,208
20,829
81,286

17. Financial instruments

2020 2019
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 104,921 89,518

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 28

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Library Fund
International
Study Centre
Research
Materials Fund
Text and
Artifacts Fund
Programm
Related
Buildings Fund
Programme
Related Loans
Programme
Related
Subsidiaries
Major repairs
fund
General funds
General Funds
Total
Unrestricted
funds
Restricted
funds
Restricted Funds
Total of funds		 Balance at 1
January
2020
£
1,215,252
195,552
142,025
811,525
3,169,314
618,841
267
230,548
6,383,324
313,077
6,696,401
85
6,696,486		 Income
£
-
-
-
-
-
-
-
-
-
979,530
979,530
-
979,530		 Expenditure
£
-
-
-
-
-
-
-
-
-
(1,018,972)
(1,018,972)
-
(1,018,972)		 Transfers
in/out
£
(28,482)
(4,251)
(87,110)
43,529
-
-
(266)
(7,391)
(83,971)
83,971
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
40,076
-
-
40,076
(268)
39,808
-
39,808		 Balance at
31
December
2020
£
1,186,770
191,301
54,915
855,054
3,169,314
658,917
1
223,157
6,339,429
357,338
6,696,767
85
6,696,852

Page 29

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Library Fund
International
Study Centre
Research
Materials Fund
Text and
Artifacts Fund
Programm
Related
Buildings Fund
Programme
Related Loans
Programme
Related
Subsidiaries
Major repairs
fund
General funds
General Funds
Total
Unrestricted
funds		 Balance at
1 January
2019
£
1,272,216
204,054
252,259
790,337
3,169,314
3,466,312
267
250,000
9,404,759
Balance at
1 January
2019
£
147,946
9,552,705		 Income
£
-
-
-
-
-
-
-
-
-
Income
£
392,536
392,536		 Expenditure
£
(28,482)
(4,251)
(73,761)
-
-
(747,434)
-
(19,452)
(873,380)
Expenditure
£
(2,372,826)
(3,246,206)		 Transfers
in/out
£
(28,482)
(4,251)
(36,473)
21,188
-
(2,073,835)
-
-
(2,121,853)
Transfers
in/out
£
2,121,853
-		 Gains/
(Losses)
£
-
-
-
-
-
(26,202)
-
-
(26,202)
Gains/
(Losses)
£
23,568
(2,634)		 Balance at
31
December
2019
£
1,215,252
195,552
142,025
811,525
3,169,314
618,841
267
230,548
6,383,324
Balance at
31
December
2019
£
313,077
6,696,401

Page 30

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Statement of funds (continued)

Restricted
funds
Robin Cosgrove
GCN grants fund
Total of funds		 Balance at
1 January
2019
£
85
(1,643)
(1,558)
9,551,147		 Income
£
-
1,643
1,643
394,179		 Expenditure
£
-
-
-
(3,246,206)		 Transfers
in/out
£
-
-
-
-		 Gains/
(Losses)
£
-
-
-
(2,634)		 Balance at
31
December
2019
£
85
-
85
6,696,486

Page 31

SERVANTS FELLOWSHIP INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

(A company limited by guarantee)

18. Statement of funds (continued)

Library Fund

This fund represents the net book value of the library which is being used in accordance with the charitable activities of the company and cannot be realised without disposing of freehold property.

Research Materials Fund

This fund represents the net book value of works of an academic nature of finite useful life in the large collection of specialist scholarly books held in the library which is used by Christian and other researchers in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of the academic works.

Texts and Artefacts Fund

This fund represents the net book value of texts and artefacts of some historicity in the large collection of specialist scholarly books held in the library which is used by Christian and other researchers in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of the texts and artefacts. During the year acquisitions of texts and artefacts of some historicity amounting to £43,529 were made (2019 - £21,188).

International Study Centre

This fund represents the net book value of freehold buildings constructed to provide a study centre to be used in accordance with the charitable activities of the company. The value of this fund cannot be realised without disposing of freehold buildings. Depreciation of the building was charged to the fund in the year.

Programme Related Buildings Fund

This fund represents the net book value of the properties owned by the charity made available to related charities with similar objects, for use in their operations and has been set aside as the directors do not anticipate any disposal of the property and the value of this fund cannot be realised without disposing of freehold buildings.

Programme Related Loans and Programme Related Subsidiary Companies Funds

These funds represent the value of Programme related loans and Programme related subsidiary company loans made to similar entities who share the same objectives and purpose of Servants Fellowship International for use in their operations. These funds cannot be realised without having a serious detrimental effect on operations and directors do not anticipate requiring repayment of these loans except where the subsidiaries operations have ceased.

Major Repairs Fund

As the charity owns two large, old, listed buildings, there is the likelihood that from time to time major repair work will need to be carried out in an appropriate way which could be very costly and £250,000 has been set aside to provide for this.

Page 32

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Restricted funds		 Balance at 1
January
2020
£
6,383,324
313,077
85
6,696,486		 Income
£
-
979,530
-
979,530
Income
£
-
392,536
1,643
394,179		 Expenditure
£
-
(1,018,972)
-
(1,018,972)
Expenditure
£
(873,380)
(2,372,826)
-
(3,246,206)		 Transfers
in/out
£
(83,971)
83,971
-
-
Transfers
in/out
£
(2,121,853)
2,121,853
-
-		 Gains/
(Losses)
£
40,076
(268)
-
39,808
Gains/
(Losses)
£
(26,202)
23,568
-
(2,634)		 Balance at
31
December
2020
£
6,339,429
357,338
85
6,696,852
Balance at
31
December
2019
£
6,383,324
313,077
85
Summary of funds - prior year
Designated
funds
General funds
Restricted funds		 Balance at
1 January
2019
£
9,404,759
147,946
(1,558)
9,551,147
6,696,486

20. Analysis of net assets between funds Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
1,454,049
Investment property
490,000
Heritage assets
855,054
Social investments
3,828,230
Current assets
122,359
Creditors due within one year
(52,925)
Total
6,696,767		 Restricted
funds
2020
£
-
-
-
-
85
-
85		 Total
funds
2020
£
1,454,049
490,000
855,054
3,828,230
122,444
(52,925)
6,696,852

Page 33

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets
Investment property
Heritage assets
Social investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2019
£
1,580,914
490,000
811,525
3,788,420
106,828
(81,286)
6,696,401		 Restricted
funds
2019
£
-
-
-
-
85
-
85		 Total
funds
2019
£
1,580,914
490,000
811,525
3,788,420
106,913
(81,286)
6,696,486

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Unrealised loss/(gains) on investments
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Write-off of balance of programme related investment loan not repaid
(disclosed in grants paid)
Increase in debtors
Decrease in creditors
Unrealised investment loss/(gain) arising on retranslation of programme
related investments at the balance sheet date
Net cash used in operating activities		 2020
£
366
188,957
266
(204,135)
-
-
(128)
(28,361)
(40,076)
(83,111)		 2019
£
(2,854,661)
115,581
(24,800)
(212,434)
154
747,434
(12,959)
(1,494)
26,200
(2,216,979)

Page 34

SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2020
£
104,921
104,921		 2019
£
89,518
89,518

23. Analysis of changes in net debt

Cash at bank and in hand At 1
January
2020
£
89,518
89,518		 Cash flows
£
15,403
15,403		 At 31
December
2020
£
104,921
104,921

24. Operating lease commitments

The lease agreements on the existing properties expired on 31 March 2019. Under the Landlord and Tenant Act 1954 ("Act"), the terms of both leases continue until either the landlord or the tenant serves notice in accordance with the Act. Therefore whilst there is no financial commitment to disclose within the financial statements, unless either party serves notice on the other, rent will continue to be received at a combined rate of £16,667 per month.

Page 35

SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

25. Related party transactions

In the year under review, Servants Fellowship International (SFI) has undertaken transactions with the following entities which share similar objects. SFI has worked alongside these entities for many years. Some of the directors of SFI serve on the boards of these entities too. Accordingly transactions undertaken by SFI with these entities and with the trustees/directors of these entities are considered related party transactions and are disclosed in this note.

Barnabas Fund

Barnabas Fund, a company limited by guarantee, company registration number 4029536 and charity registration number 1092935. C J C Kerslake and Rev A B Hauser are trustees/directors of Barnabas Fund.

During the year under SFI received rental income of £76,666 (2019 - £80,000) from Barnabas Fund.

Rosemary Sookhdeo is a connected party as she is a trustee of Barnabas Fund, the TBF Trust, Barnabas Fund Inc., Barnabas Fund Australia, Barnabas Fund (NZ) and Christian Relief International, which are connected charities. During the year Servants Fellowship International gave a grant of £12,000 (2019 - £12,000) in order to assist her in continuing her ministry in line with Servants Fellowship International's objectives.

An interest in possession trust (The Enfield Property Trust) was created during the year ended 31 December 2017 in respect of the investment property held by the charity to determine that Rosemary Sookhdeo, together with her husband Patrick, would in future be entitled to receive the rental income being generated from the letting of this property. Accordingly during the year under review £18,000 (2019 - £16,075) arising from this arrangement was paid directly to these beneficiaries.

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SERVANTS FELLOWSHIP INTERNATIONAL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

25. Related party transactions (continued)

Christian Relief International

Christian Relief International (CRI), an organisation incorporated in the USA and which has taken on the role for the entities within the Barnabas Family of charities with effect from 1 April 2017 shares some common directors with SFI.

During the year under review SFI received rental income of £120,000 (2019 - the same) from this organisation.

CRI recharged staff costs of £81,945 (2019 - £127,924) to SFI in the period.

Included in creditors is £30,208 (2019 - £27,207) owing to CRI.

Barnabas Fund (Australia) Ltd

Included in Programme related investments is an original loan of A$568,000 (£320,432 when translated) (2019 - £300,943) to Barnabas Fund (Australia) Ltd. A further loan of A$600,000 (£338,485 when translated) (2019 - £317,898) was advanced to Barnabas Fund (Australia) Ltd. This loan is secured on a property occupied by Barnabas Fund (Australia) Ltd. In the event of this property being sold there is an agreement that the sale proceeds will be paid to SFI.

K.A.F KITI Almond Foundation

K.A.F KITI Almond Foundation, is an organisation incorporated in Cyprus to promote and further the principles of international peace, friendship and understanding across all nations. The entity shares some common directors and trustees with SFI.

During the year under review SFI paid grant paid by SFI of £655,213 (2019 - £2,073,085) to this organistion.

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