DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
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 2022
DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
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 |
| Consolidated statement of financial activities | 11 |
| Consolidated balance sheet | 12 - 13 |
| Company balance sheet | 14 - 15 |
| Consolidated statement of cash flows | 16 |
| Notes to the financial statements | 17 - 43 |
DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
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 2022
| Directors | Mr J R Frith |
|---|---|
| Mr H W Storm (resigned 4 May 2023) | |
| Miss C J C Kerslake (resigned 7 October 2022) | |
| Mr R Minors (appointed 7 October 2022) | |
| Dr D R J P Phillips (appointed 7 October 2022) | |
| Mr N R Frost (appointed 4 May 2023) | |
| 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 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
The directors (who are also the trustees) present their annual report together with the audited financial statements of the group and the company for the year 1 January 2022 to 31 December 2022. 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 group and 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:
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Damage to the project related investment properties, which risk the trustees seek to minimise by maintaining adequate insurance cover;
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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 16 to the financial statements addresses this risk and the collection of research materials benefits from most of the measures in place for heritage assets.
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.
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Objectives, activities, achievements and performance in the year
The principal activity of the group and 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 Aid Limited, and to Nexcus International, related charities with similar objects, for use in their operations.
Public benefit
In preparing this report, the trustees have considered the Charity Commission’s general guidance on 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.
The significant activities of the charity in the year can be considered under the following headings:
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Information, Research, Education and Training – 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. During the year grants were also made to assist a local Christian School; a Christian organisation in the UK and one individual.
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Consultancy and Advice – Advice was given on cross-cultural mission and the impact of non-Christian faiths on Western society, and related issues.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW
The result of the group's financial activities for the year is shown on page 12 with the consolidated and then individual charity balance sheets shown on the pages that follow.
On 24 January 2022 the company acquired the freehold of Unit 23 Ash Industrial Park, Kembrey Park, Swindon. The building has been let to Barnabas Aid Limited on a seven year lease agreement. Consequently, Barnabas Aid Limited have vacated their previous offices in Coventry and these premises were placed on the market for disposal by SFI.
During the course of the year, Barnabas Australia relocated to new premises in Adelaide. Following the disposal of their former offices, the existing Australian dollar loan owed by Barnabas Australia to the company was repaid. A fresh loan for AUD 979,000 was made to the Australian charity in order to fund the acquisition of its new premises.
During 2022, the company advanced a total of £821,975 in loans to its wholly-owned subsidiary Pewsey Trading Company Limited, accounted for as a programme related investment in the balance sheet of SFI. Pewsey Trading Company Limited has used the money to acquire the whole of the share capital in Klesis Global Pvt Limited, a company based in Bangalore, India, which is involved in the field of digital communication and services. Subsequent to the initial cost of the acquisition, further equity investments have been made by Pewsey Trading Company Limited in Klesis to fund the purchase of land upon which to construct new premises for the company in Bangalore, India. The result of both subsidiaries are included within the consolidated financial statements of SFI. The financial position of the group and the stand-alone 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 14 - 17. The directors consider that the value in use of the land and buildings is in line with the net book value.
Investment policy
Any surplus funds are held in the group and company’s bank accounts.
Reserves policy
The total funds of the group at 31 December 2022 amounted to £8,132,493 (charity only £8,140,872) compared to £7,775,641 at 31 December 2021 for the group (charity only - £7,773,601). To facilitate understanding of the reserves of the group and 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 £1,129,806 (2021 - £1,158,288) 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 £157,276 (2021 - £112,492) 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
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
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 with a net cost of £82,223 were made and accordingly a transfer of this amount less depreciation charged in the year has been made to the fund from the general fund.
Texts and Artefacts Fund
This fund represents the net book value of £869,019 (2021 - £860,226) 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 £8,793 were made and accordingly a transfer of that amount has been made to the fund from the general fund.
International study centre
This fund represents the net book value of £182,799 (2021 - £187,050) 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 £3,169,312 (2021 - £3,169,312) 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 £551,169 (2021 - £1,152,794). 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 £9,758 has been spent on renovations to these buildings and charged to this fund.
The level of reserves
We now have sufficient reserves set aside and the charity is continuing to seek 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 company expects to continue to provide resources in terms of office space, personnel, funds, library and research material and to support other charities with similar objectives.
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Statement of disclosure of information to the auditor
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:
- there is no relevant audit information of which the charitable group’s auditors are unaware; and - we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the charitable group’s auditors are aware of that information.
Auditors
Griffin Stone Moscrop & Co were appointed as auditors to the group and company for the year ended 31 December 2022. It is expected that they will be reappointed for the next financial year.
Statement of directors' responsibilities
The directors (who are also the directors of the company 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. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of directors and signed on their behalf by:
Mr N R Frost (Trustee) Date: 2/2/2024
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERVANTS FELLOWSHIP INTERNATIONAL
Opinion
We have audited the financial statements of Servants Fellowship International (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated 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:
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give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 December 2022 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
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 group 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 group's or the parent 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.
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Directors' Report has been prepared in accordance with applicable legal requirements.
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:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
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.
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent 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 specific procedures designed and implemented to detect irregularities, including fraud are detailed below:
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Enquiries with management and those charged with governance.
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance.
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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Carrying out substantive checking to supporting documents on a sample basis of individual transactions within the financial statements for both the parent and its subsidiary undertaking;
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Reviewing minutes of the directors' meetings.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERVANTS FELLOWSHIP INTERNATIONAL (CONTINUED)
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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: 2/2/2024
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Income from: Donations and legacies 3 Other trading activities 4 Investments 5 Total income Expenditure on: Raising funds 6 Charitable activities 8 Total expenditure Net (expenditure)/income before net gains on investments Net gains on investments Net (expenditure)/income before taxation Taxation 13 Net (expenditure)/income after taxation Transfers between funds 21 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 92,065 209,975 297,978 600,018 197,217 924,957 1,122,174 (522,156) 43,255 (478,901) (222) (479,123) 1,320,000 840,877 6,775,556 840,877 7,616,433 |
Restricted funds 2022 £ 835,975 - - 835,975 - - - 835,975 - 835,975 - 835,975 (1,320,000) (484,025) 1,000,085 (484,025) 516,060 |
Total funds 2022 £ 928,040 209,975 297,978 1,435,993 197,217 924,957 1,122,174 313,819 43,255 357,074 (222) 356,852 - 356,852 7,775,641 356,852 8,132,493 |
Total funds 2021 £ 1,096,388 71,150 204,862 1,372,400 69,502 249,923 319,425 1,052,975 25,422 1,078,397 (302) 1,078,095 - 1,078,095 6,697,546 1,078,095 7,775,641 |
|---|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 17 to 43 form part of these financial statements.
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SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee) REGISTERED NUMBER: 1437414
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022
| Note Fixed assets Tangible assets 14 Heritage assets 16 Programme related investments 17 Investment property 15 Current assets Debtors 18 Cash at bank and in hand Creditors: amounts falling due within one year 19 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 21 Unrestricted funds Designated funds 21 General funds 21 Total unrestricted funds 21 Total funds |
42,393 405,850 448,243 (195,550) 7,490,174 126,259 |
2022 £ 1,946,359 869,019 3,720,480 1,343,942 7,879,800 252,693 8,132,493 8,132,493 8,132,493 516,060 7,616,433 8,132,493 |
27,434 567,737 595,171 (30,490) 6,760,713 14,843 |
2021 £ 1,473,628 860,226 4,322,106 555,000 |
|---|---|---|---|---|
| 7,210,960 564,681 |
||||
| 7,775,641 | ||||
| 7,775,641 | ||||
| 7,775,641 | ||||
| 1,000,085 6,775,556 |
||||
| 7,775,641 |
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2022
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:
Mr N R Frost (Trustee) 2/2/2024 Date:
The notes on pages 17 to 43 form part of these financial statements.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee) REGISTERED NUMBER: 1437414
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
| Note Fixed assets Tangible assets 14 Heritage assets 16 Social investments 17 Investment property 15 Current assets Debtors 18 Cash at bank and in hand Creditors: amounts falling due within one year 19 Net current liabilities / assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 21 Unrestricted funds 21 Total funds |
21,930 38,754 60,684 (185,796) |
2022 £ 1,510,568 869,019 4,542,455 1,343,942 8,265,984 (125,112) 8,140,872 8,140,872 8,140,872 1,835,975 6,304,897 8,140,872 |
30,029 561,071 591,100 (28,460) |
2021 £ 1,473,628 860,226 4,322,107 555,000 |
|---|---|---|---|---|
| 7,210,961 562,640 |
||||
| 7,773,601 | ||||
| 7,773,601 | ||||
| 7,773,601 | ||||
| 1,000,085 6,773,516 |
||||
| 7,773,601 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2022
The company's net movement in funds for the year was £367,271 (2021 - £1,076,748).
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:
Mr N R Frost (Trustee) Date: 2/2/2024
The notes on pages 17 to 43 form part of these financial statements.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
| 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 Purchase of investment properties Proceeds from sale of investment properties Purchase of programme related investment Purchase of subsidiary Net cash used in investing activities Cash flows from financing activities Cash inflows from realisation of programme related investments 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 |
2022 £ 341,128 297,978 (563,204) (1,343,942) 500,000 - (20,985) (1,130,153) 627,138 627,138 (161,887) 567,737 405,850 |
2021 £ 877,865 204,863 (88,746) - - (531,860) - (415,743) - - 462,122 105,615 567,737 |
|---|---|---|
The notes on pages 17 to 43 form part of these financial statements
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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.
The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.
2.2 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.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.3 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 consolidated 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.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 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. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the group'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.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Taxation
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.7 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 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 basis:
| 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.
Depreciation is provided on the following bases:
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.9 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
Programme related investments consist of secured loans made to overseas charities and property which is owned by Servants Fellowship International and which it makes available to Barnabas Aid Limited and Nexcus International.
The secured loans to overseas charities were originally made in foreign currencies and after accounting for any adjustments in market value are retranslated at the balance sheet date at the exchange rate prevailing. Gains or losses arising on retranslation of Programme related Investments are taken to the Programme related loans designated fund. During the year under review some of the loans have been repaid, with investment income being recorded in this year as a result of SFI receiving a sum in excess of the amount originally lent in foreign currency, due to the underlying property on which the loan was secured being sold at a surplus and in accordance with the terms of the investment SFI being entitled to an uplift in the amount being repaid to it.
The freehold buildings categorised within programme related investments are required to be stated at their market value to comply with the SORP, meaning that depreciation is not charged. Not charging depreciation on such properties is a departure from the Companies Act 2006, but is required by accounting standards to enable the accounts to give a true and fair view. The directors consider that it is not practicable to carry out a professional valuation each year to determine the market value of the buildings concerned, but believe that the market value would be in excess of the carrying value within the accounts.
Investment properties are stated at their market value. In order to present a true and fair view, and to comply with FRS102, the company's investment properties are not being depreciated as required by the Companies Act 2006.
2.10 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.
2.11 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.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.12 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.
2.13 Financial instruments
The group 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.
2.14 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 group 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 group 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.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Donations 34,909 Donations from other related parties 57,156 92,065 Unrestricted funds 2021 £ Donations 18,144 Donations from other related parties 78,244 96,388 |
Restricted funds 2022 £ - 835,975 835,975 Restricted funds 2021 £ - 1,000,000 1,000,000 |
Total funds 2022 £ 34,909 893,131 |
|---|---|---|
| 928,040 | ||
| Total funds 2021 £ 18,144 1,078,244 |
||
| 1,096,388 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
4. Income from other trading activities
Income from non charitable trading activities
| Unrestricted funds 2022 £ Trading income contributed by UK subsidiary 74,500 Trading income contributed by Indian subsidiary 135,475 209,975 Unrestricted funds 2021 £ Trading income invoiced by UK subsidiary 71,150 |
Total funds 2022 £ 74,500 135,475 |
|---|---|
| 209,975 | |
| Total funds 2021 £ 71,150 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
5. Investment income
| Unrestricted funds 2022 £ Rental income 248,443 Income from realising programme related investments 40,591 Bank interest 661 Loan interest 8,283 297,978 Unrestricted funds 2021 £ Rental income 204,320 Bank interest 5 Loan interest 537 204,862 |
Total funds 2022 £ 248,443 40,591 661 8,283 |
|---|---|
| 297,978 | |
| Total funds 2021 £ 204,320 5 537 |
|
| 204,862 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
6. Expenditure on raising funds
Other trading expenses
| Unrestricted funds 2022 £ Administrative expenses borne by trading subsidiaries 54,392 Staff costs within trading subsidiaries 142,825 197,217 Unrestricted funds 2021 £ Administrative expenses borne by trading subsidiary 5,821 Staff costs within trading subsidiary 63,681 69,502 |
Total funds 2022 £ 54,392 142,825 |
|---|---|
| 197,217 | |
| Total funds 2021 £ 5,821 63,681 |
|
| 69,502 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
7. Analysis of grants
| Grants to | Grants to | Total | |
|---|---|---|---|
| Institutions | Individuals | funds | |
| 2022 | 2022 | 2022 | |
| £ | £ | £ | |
| Charitable activities | 20,000 | 501,598 | 521,598 |
Grants to institutions include £15,000 to Maranatha School and £5,000 to Saltshakers. No grants were made to institutions in 2021.
| Grants to | Total | |
|---|---|---|
| Individuals | funds | |
| 2021 | 2021 | |
| £ | £ | |
| Charitable activities | 15,000 | 15,000 |
8. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2022 £ Charitable activities 924,957 Unrestricted funds 2021 £ Charitable activities 249,923 |
Total 2022 £ 924,957 |
|---|---|
| Total 2021 £ 249,923 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
9. Analysis of expenditure by activities
| Charitable activities Charitable activities |
Grant funding of activities 2022 £ 521,598 Grant funding of activities 2021 £ 15,000 |
Support costs 2022 £ 403,359 Support costs 2021 £ 234,923 |
Total funds 2022 £ 924,957 |
|---|---|---|---|
| Total funds 2021 £ 249,923 |
Analysis of support costs
| Staff costs Depreciation Communication and office costs Repairs and maintenance costs Insurance Other overhead expenses Legal and professional fees Realised loss on sale of investment property in the year Consultancy costs Governance costs |
Total funds 2022 £ 52,107 81,680 4,207 9,842 41,697 7,692 63,664 55,000 70,380 17,090 403,359 |
Total funds 2021 £ 70,431 63,995 3,876 32,980 30,460 13,473 3,544 - - 16,164 |
|---|---|---|
| 234,923 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
10. Auditors' remuneration
The auditors' remuneration amounts to an auditor fee of £9,500 (2021 - £7,800).
11. Staff costs
| Group | Group | Company | Company | |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Wages and salaries | 199,982 | 141,936 | 57,157 | 78,256 |
The average number of persons employed by the group and company during the year was as follows:
| Staff Subsidiaries |
Group 2022 No. 2 16 18 |
Group 2021 No. 2 3 5 |
Company 2022 No. 2 - 2 |
Company 2021 No. 2 - |
|---|---|---|---|---|
| 2 |
No employee received remuneration amounting to more than £60,000 in either year.
The staff costs for the parent company relate to recharged staff costs for individuals engaged to work by Nexcus International but whose time is spent in supporting the work of SFI. In 2022, the average number of staff whose time was recharged was 2 (2021- 2).
12. Directors' remuneration and expenses
During the year, no directors received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 December 2022, no director expenses have been incurred (2021 - £NIL).
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
13. Taxation
| Corporation tax Current tax on net (expenditure)/income for the year Taxation on net (expenditure)/income |
2022 £ 222 222 |
2021 £ 302 |
|---|---|---|
| 302 |
There were no factors that affected the tax charge for the year which has been calculated on net (expenditure)/income at the standard rate of corporation tax in the UK of 19% ( 2021 - 19 %).
There are no factors considered likely to affect future tax charges.
14. Tangible fixed assets
Group
| Cost or valuation At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Freehold property £ 1,636,651 427,747 2,064,398 291,313 32,733 324,046 1,740,352 1,345,338 |
Plant and machinery £ 18,533 1,859 20,392 12,210 1,673 13,883 6,509 6,323 |
Motor vehicles £ 58,959 35,840 94,799 49,484 9,835 59,319 35,480 9,475 |
Computer equipment £ 3,206 6,742 9,948 3,206 - 3,206 6,742 - |
Library books £ 2,812,614 82,223 2,894,837 2,700,122 37,439 2,737,561 157,276 112,492 |
Total £ 4,529,963 554,411 |
|---|---|---|---|---|---|---|
| 5,084,374 | ||||||
| 3,056,335 81,680 |
||||||
| 3,138,015 | ||||||
| 1,946,359 | ||||||
| 1,473,628 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
14. Tangible fixed assets (continued)
Company
| Cost or valuation At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Freehold property £ 1,636,651 - 1,636,651 291,313 32,733 324,046 1,312,605 1,345,338 |
Plant and machinery £ 18,533 557 19,090 12,210 1,673 13,883 5,207 6,323 |
Motor vehicles £ 58,959 35,840 94,799 49,484 9,835 59,319 35,480 9,475 |
Computer equipment £ 3,206 - 3,206 3,206 - 3,206 - - |
Library books £ 2,812,614 82,223 2,894,837 2,700,122 37,439 2,737,561 157,276 112,492 |
Total £ 4,529,963 118,620 |
|---|---|---|---|---|---|---|
| 4,648,583 | ||||||
| 3,056,335 81,680 |
||||||
| 3,138,015 | ||||||
| 1,510,568 | ||||||
| 1,473,628 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
15. Investment property
group and company
| Valuation At 1 January 2022 Addition Disposal At 31 December 2022 |
Freehold investment property £ 555,000 1,343,942 (555,000) 1,343,942 |
|---|---|
A commercial property was purchased on 24 January 2022 and rental income has started being earned on it during 2022. It is considered that the market value at 31 December 2022 was not materially different to the cost. The freehold investment property that was sold during the year was a residential property, sold for £500,000. The difference between the valuation at the start of the year and the selling price has been recorded as a realised loss on sale of investment property within support costs.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
16. Heritage assets
Group and Company
Assets recognised at cost
| Carrying value at 1 January 2022 Additions |
Texts and artefacts 2022 £ 860,226 8,793 869,019 |
Total 2022 £ 860,226 8,793 |
|---|---|---|
| 869,019 |
Analysis of heritage asset transactions
Group and Company
| Purchases Texts and artefacts Total additions |
2022 £ 8,793 8,793 |
2021 £ 5,173 5,173 |
2020 £ 43,529 43,529 |
2019 £ 21,188 21,188 |
2018 £ 8,351 |
|---|---|---|---|---|---|
| 8,351 |
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.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
17. Programme related investments
| Group Programme related investments £ Cost or valuation At 1 January 2022 4,322,106 Disposals (627,138) Revaluations 25,512 3,720,480 Impairment provision - Net book value At 31 December 2022 3,720,480 At 31 December 2021 4,322,106 Company Programme related investments £ Cost or valuation At 1 January 2022 4,322,106 Additions 821,975 Disposals (627,138) Revaluations 25,512 4,542,455 Impairment provision - Net book value At 31 December 2022 4,542,455 At 31 December 2021 4,322,106 |
Total £ 4,322,106 (627,138) 25,512 3,720,480 - 3,720,480 4,322,106 Total £ 4,322,106 821,975 (627,138) 25,512 4,542,455 - 4,542,455 4,322,106 |
|---|---|
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
17. Programme related investments (continued)
Company (continued)
Programme related investments are further analysed below:
Carried within the company
| Tangible fixed assets Loans to support overseas entities Subsidary companies |
Property 2022 Listed investments 2022 £ £ 3,169,312 - - 551,169 - - |
Loans 2022 £ - - 821,974 |
Total 2022 £ 3,169,312 551,169 821,974 |
Total 2021 £ 3,169,312 |
|---|---|---|---|---|
| 1,152,794 | ||||
| 1 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
17. Programme related investments (continued)
Tangible fixed assets:
The charity has for many years made available the majority of its freehold property to Barnabas Aid Limited (formerly Barnabas Fund), and more recently Nexcus 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:
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.
The original loan of A$568,000 and further loan advanced in 2015 of A$600,000 to Barnabas Fund (Australia) Ltd were repaid in full during in the year. In 2021 a further loan of A$979,000 (£551,169 when translated) (2021 - £525,657 when translated) 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 2022 in accordance with the accounting policy, giving rise to a net foreign exchange gain of £25,512 (2021 - £37,983 loss) relating to the remaining loan 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.
Subsidiary 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 2022 the company had a deficit on capital and reserves of £52,132 (2021 - positive reserves £2,040), but this was principally due to an impairment provision being made against the carrying value of its investment in Klesis Global Private Limited, a company incorporated in India. Upon consolidation this provision has been reversed. The investment of £821,974 in SFI the company, represents a £1 investment in PTC share capital and £821,973 of long-term loan made to PTC. Within the group accounts these investments are brought down to nil.
Further details with regard to the acquisition of Klesis Global Private Limited are given below:
The initial share purchase, representing an acquisition of the entired issued share capital of Klesis at the time, was made in March 2022. The purchase price of the shares acquired was determined by an independent valuation, based on a fair value of the company of INR 2,099,030. This equated to initial acquisition cost was £20,989. In accounting for the fair value of the assets and liabilities acquired in consideration of this sum, negative goodwill of approximately £7,000 arose and has been recognised in the consolidated Statement of Financial Activities in 2022.
Subsequent to the initial acquisition, further sums totalling £806,000 were invested to 31 December 2022 by Pewsey Trading Company, as consideration for further shares being allotted to the group and within the consolidated balance sheet the investment by Pewsey Trading Company Limited and the corresponding entries within Klesis Global Private Limited are eliminated.
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
18. Debtors
| Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income |
Group 2022 £ 10,134 - 27,983 4,276 42,393 |
Group 2021 £ - - 6,116 21,318 27,434 |
Company 2022 £ 10,134 2,779 4,741 4,276 21,930 |
Company 2021 £ - 2,779 5,932 21,318 |
|---|---|---|---|---|
| 30,029 |
19. Creditors: Amounts falling due within one year
| Trade creditors Corporation tax Other taxation and social security Other creditors Accruals and deferred income 20. Financial instruments Financial assets Financial assets measured at fair value through income and expenditure |
Group 2022 £ 150 222 181 159,637 35,360 195,550 Group 2022 £ 405,850 |
Group 2021 £ - 302 169 362 29,657 30,490 Group 2021 £ 567,737 |
Company 2022 £ - - - 155,836 29,960 185,796 Company 2022 £ 38,754 |
Company 2021 £ - - - - 28,460 |
|---|---|---|---|---|
| 28,460 | ||||
| Company 2021 £ 561,071 |
Financial assets measured at fair value through income and expenditure are comprised of cash at bank and in hand.
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
21. Statement of funds Statement of funds - current year
| Unrestricted funds Designated funds Library Fund Research Materials Fund Text and Artifacts Fund International Study Centre Programme Related Buildings Fund Programme Related Loans Programme Related Subsidiaries Major repairs fund Swindon Investment Property General funds General Funds - all funds |
Balance at 1 January 2022 £ 1,158,288 112,492 860,227 187,050 3,169,314 1,152,794 1 120,547 - 6,760,713 - |
Income £ - - - - - - - - - - - |
Expenditure £ - - - - - - - (9,758) - (9,758) - |
Taxation £ - - - - - - - - - - - |
Transfers in/out £ (28,482) 44,784 8,793 (4,251) - (627,137) - - 1,320,000 713,707 - |
Gains/ (Losses) £ - - - - - 25,512 - - - 25,512 - |
Balance at 31 December 2022 £ 1,129,806 157,276 869,020 182,799 3,169,314 551,169 1 110,789 1,320,000 |
|---|---|---|---|---|---|---|---|
| 7,490,174 | |||||||
| - |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
21. Statement of funds (continued) Statement of funds - current year (continued)
| General fund including consolidation adjustments Pewsey Trading Company Limited Klesis Global Private Limited Total Unrestricted funds Restricted funds Restricted Fund Building projects Total of funds |
Balance at 1 January 2022 £ 12,804 2,039 - 14,843 6,775,556 85 1,000,000 1,000,085 7,775,641 |
Income £ 389,382 74,531 136,105 600,018 600,018 - 835,975 835,975 1,435,993 |
Expenditure £ (914,932) (73,365) (124,119) (1,112,416) (1,122,174) - - - (1,122,174) |
Taxation £ - (222) - (222) (222) - - - (222) |
Transfers in/out £ 606,293 - - 606,293 1,320,000 - (1,320,000) (1,320,000) - |
Gains/ (Losses) £ 19,522 - (1,779) 17,743 43,255 - - - 43,255 |
Balance at 31 December 2022 £ 113,069 2,983 10,207 |
|---|---|---|---|---|---|---|---|
| 126,259 | |||||||
| 7,616,433 | |||||||
| 85 515,975 |
|||||||
| 516,060 | |||||||
| 8,132,493 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
21. Statement of funds (continued)
22. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 January 2022 £ 6,760,713 14,843 1,000,085 7,775,641 |
Income £ - 600,018 835,975 1,435,993 |
Expenditure £ (9,758) (1,112,416) - (1,122,174) |
Taxation £ - (222) - (222) |
Transfers in/out £ 713,707 606,293 (1,320,000) - |
Gains/ (Losses) £ 25,512 17,743 - 43,255 |
Balance at 31 December 2022 £ 7,490,174 126,259 516,060 |
|---|---|---|---|---|---|---|---|
| 8,132,493 |
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
23. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 1,518,612 Investment property 1,343,942 Heritage assets 869,019 Social investments 3,720,480 Current assets 179,930 Creditors due within one year (15,550) Total 7,616,433 |
Restricted funds 2022 £ 427,747 - - - 268,313 (180,000) 516,060 |
Total funds 2022 £ 1,946,359 1,343,942 869,019 3,720,480 448,243 (195,550) 8,132,493 |
|---|---|---|
24. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Negative goodwill Gains on investments Dividends, interests and rents from investments Loss on the sale of investment property Decrease/(increase) in debtors Increase/(decrease) in creditors Unrealised investment (gains)/losses Net cash provided by operating activities |
Group 2022 £ 356,852 81,680 (6,983) - (297,978) 55,000 474 154,496 (2,413) 341,128 |
Group 2021 £ 1,078,095 63,994 - (65,000) (204,862) - (12,690) (19,655) 37,983 877,865 |
|---|---|---|
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SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
25. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
Group 2022 £ 405,850 405,850 |
Group 2021 £ 567,737 |
|---|---|---|
| 567,737 |
26. Analysis of changes in net debt
| Cash at bank and in hand | At 1 January 2022 £ 567,737 567,737 |
Cash flows £ (174,658) (174,658) |
Acquisition and disposal of subsidiaries £ 12,771 12,771 |
At 31 December 2022 £ 405,850 |
|---|---|---|---|---|
| 405,850 |
27. Operating lease commitments
A lease agreement was made in the year between SFI and Barnabas Fund relating to the new property purchased in the year (Unit 23, Ash Industrial Park, Kembrey Park, Swindon, SN2 8UN). Rent will be received at a rate of £8,333 per month.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
28. 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 Aid Limited (formerly known as Barnabas Fund)
Barnabas Aid Limited, 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 Aid Limited.
During the year under SFI received rental income of £94,444 (2021 - £80,000) from Barnabas Aid. At 31 December 2022 £4,360 was owed to Barnabas Aid.
Rosemary Sookhdeo is a connected party as she is a trustee of Barnabas Aid Limited, the TBF Trust, Barnabas Fund Inc., Barnabas Fund Australia, Barnabas Fund (NZ) and Nexcus International, which are connected charities and her husband is a director of the charity's subsidiary, Pewsey Trading Company Limited.
An interest in possession trust (The Enfield Property Trust) was created during the year ended 31 December 2017 in respect of the investment property at 106 St Marks Road held by the charity. This trust determined that Rosemary Sookhdeo, together with her husband Patrick, would in future be entitled to receive the rental income generated from the letting of this property. Whilst the charity no longer receives the benefit of the rental income it bore responsibility for maintaining the property and in this year incurred various property related expenditure totalling £nil (2021 - £12,360) .During the year SFI paid £12,000 (2021 - £12,000) in order to assist the Sookhdeos in continuing their ministry in line with SFI's objectives. Also during the year SFI paid £488,598 as a grant to Patrick and Rosemary Sookhdeo from the proceeds of the sale of 106 St Marks Road, the aforementioned property.
Nexcus International
An organisation incorporated in the USA and which has taken on the role of grant-making for the entities within the Barnabas Family of charities with effect from 1 April 2017 shares some common directors with SFI. A grant of £835,975 (2021 - £1,000,000) was made by Nexcus International for the future construction of the second floor of the conference centre. During the year under review SFI received rental income of £120,000 (2021 - the same) from this organisation. The subsidiary of SFI, Pewsey Trading Company Limited, which is consolidated within these financial statements charged Nexcus International £74,500 for providing cleaning services to the entity in 2022 (2021 - £71,500).
Included in creditors for both the charity and the group is £151,476 (2021 - £nil) owing to Nexcus.
Barnabas Fund (Australia) Ltd
An original loan in the sum of A$568,000 (2021 - £304,978 when translated) was made to Barnabas Fund (Australia) Ltd. In 2015 a further loan of A$600,000 (2021 - £322,160 when translated) was advanced to Barnabas Fund (Australia) Ltd. Both loans were repaid in the year following the sale of the properties. A$1,238,667 was paid into the bank account of SFI (£711,489 when translated) for both loans, with the surplus of A$70,667 accounted for within investment income.
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DocuSign Envelope ID: 38DBA91C-7F06-465A-927A-084C66C415DD
SERVANTS FELLOWSHIP INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
In 2021 a further loan of A$979,000 (£551,169 when translated) (£525,657 - 2021) was advanced to Barnabas Fund (Australia) Ltd. All loans are secured on properties occupied by Barnabas Fund (Australia) Ltd. In the event of the properties being sold, there is an agreement that the sale proceeds will be paid to SFI.
Wholly owned subsidiary companies
Pewsey Trading Company Limited, a company limited by shares, registered in England and Wales, Company Number 04414938, is a wholly owned subsidiary. Included in debtors in the stand-alone charity is £2,779 due from this company (2021 - £2,779). £821,975 is recorded in programme related investments relating to monies advanced by SFI to PTC to facilitate the initial acquisition and subsequent further investment in PTC's new subsidiary, - Klesis Global Private Limited, a company registered in India.
Other related party transactions
Legal fees of £11,402 were paid to Wilson Bramwell Ltd, a company in which Robert Minors, a trustee of SFI, is a director.
29. Post balance sheet events
In December 2023 the charitable company and group realised the sale of a property included within Programme Related Investments at 31 December 2022 for a price of £720,000.
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