**Churches of God Central Gifts Fund Report and Financial Statements For the Year Ended 31 December 2020** 

**Charity No. 299106 (England and Wales) Charity No. SC024963 (Scotland)** 



Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

||**Page**|
|---|---|
|Trustees’ Annual Report|1-7|
|Independent Auditor’s Report to the Trustees of The Central|8-10|
|Gifts Committee of the Churches of God||
|Statement of Financial Activities|11|
|Balance Sheet|12|
|Cash Flow Statement|13|
|Notes to the Financial Statements|14-27|





Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

The Trustees are pleased to present their report together with the financial statement of the Churches of God Central Gifts Fund for the year ended 31 December 2020. The charity’s registered name is _The Central Gifts Committee of the Churches of God,_ however the charity is referred to throughout the financial statements under the operating name of _Churches of God Central Gifts Fund_ . 

## **Reference and Administrative Information** 

Charity Name: The Central Gifts Committee of the Churches of God Charity Registration Number: No. 299106 (England and Wales) No. SC024963 (Scotland) Principal Contact E L Burgoyne Contact Address: 135 Dundonald Road, Kilmarnock KA1 1UG Website: www.churchesofgod.info 

## **Trustees** 

All Trustees, listed below, served for the full year and since the year end to date unless indicated otherwise. 

A Brown E L Burgoyne G J Hunter D M King F J Reilly L M Ross R I Shaw **Secretary** L M Ross **Treasurer** G J Hunter **Auditors** Anderson Anderson & Brown LLP Accountants and Business Advisers 1 Lochrin Square 92 Fountainbridge Edinburgh EH3 9QA **Principal Bankers** Bank of Scotland 153 Portobello High Street Edinburgh EH15 1AG **Investment Managers** St James’s Place Wealth Management 1 Tetbury Road Cirencester Gloucestershire GL7 1FP **Solicitors** Murray Beith Murray 3 Glenfinlas Street, Edinburgh EH3 6AQ 

1 



Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

## **Structure, Governance and Management** 

## **Governing Document** 

The Central Gifts Committee of the Churches of God (“the charity”) was established by way of and is governed by its Trust Deed. The original Trust Deed, dated 2 September 1960, is subject to extension on various dates, most noticeably on 3 September 1987 and 17 April 2010. The charity is a registered charity, No 299106, England and Wales and No. SC024963, Scotland. 

## **Appointment of Trustees** 

Trustees are elected at the Conference of Overseers of the Churches of God while any changes to the Trustees are also approved at the Conference. There is no fixed term for Trusteeship. The appointment procedure and induction process ensures that the charity comprises Trustees who have appropriate qualifications, areas of expertise and experience and who are clear about their role. As part of their induction programme, new Trustees are required to understand their statutory responsibilities. 

## **Organisational structure** 

The administration and allocation of funds is managed by the Trustees who meet from time to time. Divisional Committees are in place for each fund and report to the Trustees. Funds management rests with the Treasurer and Secretary. 

## **Key Management Personnel** 

Given their involvement as outlined above, the Trustees consider themselves as the charity’s key management personnel, in charge of directing and controlling the charity. All Trustees give their time freely. Details of Trustees’ expenses and related party transactions are outlined in Notes 21 and 22 to the financial statements. 

## **Risk management** 

The Trustees have identified and considered the major strategic, financial and operational risks to which the charity is exposed and have established systems to enable those risks to be mitigated. The main risks that the charity faced during the year were identified as: 

- Strategic – Catastrophic events overwhelming the ability of the charity to meet its full obligations. The impact of the coronavirus is highlighted below. 

- Operational – 

   - a) Succession management in the event of key personnel being unable to continue their duties. 

   - b) One change from previous years is that the charity has two Trustees who have full access and one other Trustee who has read-only access to the to the charity’s main bank account. 

   - c) Three Trustees are now responsible as a sub-committee for the charity investments. 

## **Objectives and Activities** 

## **The Purpose of the Charity** 

The Churches of God is a worldwide fellowship of churches established in the United Kingdom, Europe, North America, Australia, India, South East Asia and Africa with the purpose of spreading the gospel and the teachings of the Lord Jesus Christ, the provision of education and relief to the needy. 

## **Main activities** 

- Support and encourage outreach by the Churches of God. 

- Maintenance of full time Lord’s servants and gospel workers. 

- Assistance towards youth work including Camps. 

- Provision and maintenance of meeting places of the Churches of God. 

- Provision for relief of poverty, assistance towards education and medical needs in developing countries. 

- Other charitable purposes of the Churches of God as approved by the Conference of Overseers. 

2 



Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

## **Fulfilling our Legal Purpose/Strategies** 

With missionary and literature support, the charity is endeavouring to meet the spiritual needs of people wherever it operates. Funding humanitarian relief provides the means of alleviating poverty and sickness while working within the limits of resources to meet a growing demand. 

## **Assessing Success** 

Within the organisation, regular feedback is received and acted upon from those working in the field. There are various divisions with supporting committees that closely monitor the charity’s activities periodically reporting to the Trustees. 

## **Significant Activities** 

The coronavirus had a major impact on Relief and Outreach activities in 2020. In general, financial support for Relief increased in many of the ‘developing’ countries due to high rates of unemployment. However, the charity was able to support all the needs. Some of this expenditure was offset by the closure of the Mobile Clinic and Orphan Care Centre in Malawi for a number of months. 

Local outreach continued in many countries, but outreach expenses were reduced due to Lord’s Servants from the UK and North America being unable to visit overseas due to the virus. We expect increased relief and a reduced outreach budget to continue through 2021. 

A point to note, is where many charities have struggled in 2020 due to the pandemic, we have seen undiminished financial support from saints and churches during 2020, which has allowed the charity to operate financially ‘as normal’. This is a huge blessing as we continue the Lord’s work. 

Despite the coronavirus, we have maintained a steady input into developing the work overseas. For example: 

- Putting into practice the benefits of Permaculture in Malawi 

- Mobile clinic and Orphan Care Centre in Malawi when allowed 

- • Broadcasting from Christian radio stations 

- A Hydroelectric Power Plant facility in Myanmar 

- Youth Camp facilities in a number of countries 

- • Education, at various levels 

## **Short term/Long term Aims** 

In the short term, the aim is to raise the standard of living and develop stronger self-supporting Christian communities abroad. In the long term, the aim is to increase self-sufficiency in these communities. This will only be achieved by careful monitoring and assessing how objectives can be tailored to meet changing situations. An important aim is spiritual development and the planting of churches. 

## **Volunteers** 

Volunteering does not make a significant contribution to the charity’s activities, however it should be noted that the Trustees of Central Gifts and the members of the various committees are volunteers. 

## **Significant highlights, events and developments of note in the year include the following** : 

It should be mentioned that all areas noted below, received relief payments for hardship much of which was driven by the coronavirus and the loss of employment. 

- **West Africa District** : 

   - We continue to support the work here in Nigeria, Ghana, Liberia and Kenya comprising 27 churches. Nigeria was the first African country to be evangelised by the Churches of God in 1920 and has continued to grow numerically and spiritually over 100 years since then. There are now four full time evangelists working in this District along with several gospel workers supported financially by the charity. 

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Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

- **South East Central Africa District (SECA)** : This district which comprises Malawi, Mozambique and Zimbabwe is an area which has seen good growth in the number of churches and companies with believers being added to these churches. All told the district has 15 churches. The countries in this district frequently suffer from severe flooding and damage to crops. The need for relief was heightened by the coronavirus and the loss of employment and has meant that financial relief increased in 2020. There is no doubt that this will continue through 2021. 

- • **India** : Christianity is a minority faith in India and that brings many challenges to the brothers and sisters there making up 18 churches. There are no indigenous full time evangelists supported by the charity but a number of gospel workers are supported financially. For several months of the year they are joined by full time pastors from the UK and Canada. 

- • **Myanmar** : Four of the five churches in Myanmar are situated in the Chin hills in the west of the country with one in Insein close to the capital Yangon in the south. Here also Christianity is a minority faith. The Chin region is remote and communications can be very difficult. They are supported by two indigenous full time evangelists together with regular pastoral visits from the UK. 

- **Philippines** : This is an established work consisting of 10 churches in the south of the country with one local full time evangelist and regular support of full time pastors from the UK. There is a strong emphasis on reaching out which has resulted in sustained growth over recent years. 

- All the churches in these areas are a testimony to the commandment _'Love God and love your neighbour'_ . UK Management Committees control outreach, relief and property programmes which last year involved expenditure of £315k (2019: £491k), a decrease of 36%. These sums consisted of missionary visits from the UK (missionary visits were substantially down this year due to the coronavirus), maintenance of local gospel workers, radio broadcasting, literature translation and distribution, fighting poverty and disease, hall repairs/renovation, care for orphan children and supporting children's education. The main cost burden of our relief is in Malawi where we operate a mobile clinic. 

- **UK:** The Fellowship Mailing Centre has maintained a steady outflow of literature worldwide. The normal ‘Training for Service’ seminars for Christian disciples each year have been impacted due to the coronavirus restrictions. 

## **Performances of the major funds:** 

As noted in the 2019 report a bequest was notified during 2019 in favour of the charity relating to three restricted funds. No proceeds were received during 2019 but £960k was accrued at the 2019 year end. The funds credited from the Estate were to be allocated between Fellowship Outreach £533k, Fellowship Relief £256k and Far East and Africa Property £171k. In 2020 £603k was received and allocated to the appropriate funds and the remaining outstanding amount has been accrued in 2020. 

- **Fellowship Relief:** 

   - Income received was £138k, if the bequest of £256k and an appeal for emergency funds £44k in 2019 are stripped out then the comparison to 2019 would be £146k, therefore 2020 income is comparable to 2019. 

   - Overall relief costs fell from £223k to £187k (-£36k), which was due to a £50k reduction in Malawi Project costs, because of some cost control and the closure of the Clinic activities and the Orphan Care Center due to Covid restrictions. Taking this £50k reduction out of the equation there is a net increase which was due to Covid/hardship relief, mainly in Myanmar, Mozambique, Zimbabwe, and India. 

- **Fellowship Outreach:** 

   - Income received was £51k. If the bequest of £533k of 2019 is stripped out then the comparison to 2019 would be £110k, a drop of £59k, however the North American District is holding £24k to be used by NAD ministering brethren. 

   - During 2020, expenditure was substantially down on 2019 (£98k v £174k or -£76k), most of this was due to UK and Canadian brethren responsible for overseas work being restricted from travelling. This restriction on travel will probably be the case in 2021. 

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Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

- **Far East & Africa Property:** 

   - Income received in 2020 was £2.7k, again if the value of the bequest is stripped out for 2019 the comparable 2019 figure is £16k. In 2020, costs decreased from £94.5k to £30k, this was mainly due to no new builds in 2020. 

## **Main observations:** 

In general terms and noted above, the pandemic has impacted relief and outreach in different ways, a need to support those in need through relief and a reduction in outreach due to very little overseas travel. There is no doubt that churches and saints have adjusted their giving because of this and to also support Ministering Brethren through the pandemic. 

In many ways the charity has been blessed by the continued financial support which is unwavering, and the income stream is basically unaffected. Many charities have run into difficulty, but the charity continues to have the financial support to meet on-going needs. 

Sadly, a number of UK churches are closing, but the value of these hall sales will allow the continuation of the Lord’s work. 

## **Achievements against Objectives** 

The objectives in the short term are being met from the charity’s income, bequests and reserves. In the longer term, the aim is to help the local people to become more self-sufficient. 

## **Investment Performance** 

The value of our portfolio with St James's Place and unit trusts / shares from a bequest increased during the year by £35k generally reflecting the enhanced value of UK investments at the end of 2020. A review of the charity’s investments and performance will be undertaken in 2021. 

## **Other Matters** 

## **Dismissal of Malawi Project Supervisor:** 

The court action raised in 2017 is still not resolved. A hearing was arranged in 2019 but the complainant did not appear. No further action was seen in 2020. We will continue to defend the charges made against us. 

## **Plans for Future Periods** 

The charity’s plans for 2021 focus on the following areas: 

- **Malawi Relief:** 

The roll out of Permaculture over all the rural areas where we have churches will continue. This will be accompanied by the construction of further boreholes for irrigation purposes as well as the provision of clean drinking water for the local communities. 

- **Malawi Property:** 

The ongoing development of building new halls will continue. 

- **Myanmar:** Suanghphei Village Hydroelectric Power Plant Project – the charity approved the funding of a small-scale project to enable the village to have a continuous, reliable and cheap supply of electricity. The first tranche of the funding was sent in 2020. These funds came from a bequest. 

- **Covid-19:** 

The emergence and spread of the coronavirus in early 2020 has resulted in a slow-down in the work of the charity overseas. To a greater or lesser degree all areas of our operations have been affected with additional costs incurred mainly due to loss of employment. We have not seen a significant fall in income but it remains to be seen what effect the pandemic will have on the charity’s finances. 

## **General** 

With the increasing number of converts to the Christian faith, where the charity operates, there is a growing demand for more churches to be established. This will require funding for buildings, relief, education, outreach and visits, all impacting on the charity’s resources. 

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Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

## **Financial Review** 

## _**Principal Funding Sources**_ 

The charity’s principal source of funding is donations from Churches of God, Districts, individuals and bequests.  Where there is a defined condition applying to the use of funds, such funds are classified as Restricted Funds and distributed as soon as is practicable in accordance with the donors’ wishes.  Gifts which have no attaching conditions are regarded as Unrestricted Funds and utilised by the Trustees as and when circumstances dictate. 

## **Results for the year** 

Per the Statement of Financial Activities on page 10, the charity reported Net Income (i.e. a Surplus) and Net Movement in Funds for the year of £20,056 (2019 £847,482) which included a loss on investments (realised and unrealised) of £494 (2019: gain of £44,080). At the Balance Sheet date, the charity's total reserves amounted to £1,885,497 of which £912,803 (48%) related to Restricted Funds. 

## **Reserves policy** 

In relation to Unrestricted Funds, the Trustees’ policy is to release gifts as needs arise based on the amount of gift income received in the accounting year. Any build-up of Unrestricted Funds enables the Trustees to respond to emergency needs, if required. As indicated in Note 14 on page 21, the charity’s Unrestricted Funds (excluding property Fixed Assets) at 31 December 2020 amounted to £937,051 of which £514,631 was invested in unit trusts payable on demand. The Trustees regard the level of the charity’s Investments as the minimum for Unrestricted Funds although the Trustees would release Unrestricted Funds within Investments if they felt that sizeable or emergency needs should be met. 

In relation to Restricted Funds, the Trustees’ policy is also to release gifts as needs arise. As indicated in Note 18 on page 22, the charity’s Restricted Funds at 31 December 2020 amounted to £912,803 which represented a decrease of £38,874 on the balance at 31 December 2019. 

The Trustees continue to ensure there is a robust system in relation to the control and monitoring of overseas expenditure. In conjunction with the appointment of a Reconciliation Officer (2019) we adopted the use of _dropbox_ as a storage facility within which third party documentation for overseas expenditure is filed and retrieved for internal and audit purposes. The work of the Reconciliation Officer is onerous as the Charity requires documentation from many countries worldwide, however we believe that the record retention and reconciliation has again improved in 2020. 

The charity operates in some of the poorest and most underdeveloped countries in the world, e.g. Malawi, Myanmar and Liberia, which is a challenge in terms of technology and the gathering supporting paperwork. The Trustees are committed to good stewardship and accountability of which the charity’s generous donors must be assured at all times. 

## **Investment Policy** 

Under the Trust Deed, the Trustees have powers to accumulate funds and invest funds at their discretion. The Trustees adopt a low to medium risk investment strategy aimed at generating both income and capital growth in the medium to long term. The Trustees have appointed St James’s Place Wealth Management as Investment Managers. As noted above a review of the charity’s investments and performance will be undertaken in 2021. 

## **Grant Making Policy** 

Periodically, funds are disbursed to full time Lord’s servants and Lord’s servants widows. Grants are also made towards the construction and maintenance of church buildings. In addition, various outreach and devotional events and other associated ministries are supported, all at the Trustees’ discretion. 

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Churches of God Central Gifts Fund 

## **Trustees’ Annual Report** _for the Year Ended 31 December 2020_ 

## **Statement of Trustees' Responsibilities** 

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales, the Charities Act 2011 and in Scotland, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s Trust Deed requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s state of affairs and of its incoming resources and application of resources for that period. In preparing those financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities Statement of Recommended Practice; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the charity’s financial position and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Public Benefit Statement** 

The Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. 

## **Auditors** 

A resolution proposing that Anderson Anderson & Brown Audit LLP, Accountants and Business Advisers, be appointed as auditors of the charity will be put to the Annual General Meeting. 

This report was approved by the Trustees on 22 September 2021 and signed on their behalf by: 

**G J Hunter** 

_Trustee & Treasurer_ 

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Churches of God Central Gifts Fund 

## **Independent Auditor’s Report to the Trustees of The Central Gifts Committee of the Churches of God** 

## **Opinion** 

We have audited the financial statements of The Central Gifts Committee of the Churches of God (‘the Charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

- In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 

## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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** 

We have nothing to report in respect of the following matters in relation to which the ISAs 

- (UK) require us to report to you where: 

- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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. 

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Churches of God Central Gifts Fund 

## **Independent Auditor’s Report to the Trustees of The Central Gifts Committee of the Churches of God** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- proper accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees 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 trustees are responsible for assessing the charity'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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Our 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 a Report of the Independent Auditors 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: 

We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations – this responsibility lies with management with the oversight of the Trustees. 

Based on our understanding of the Charity, discussions with management and trustees we identified financial reporting standards and Charity SORP as having a direct effect on the amounts and disclosures in the financial statements. 

As part of the engagement team discussion about how and where the Charity’s financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud. Our audit procedures included: 

- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud; 

- enquiry of management about the Charity’s policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; 

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Churches of God Central Gifts Fund 

## **Independent Auditor’s Report to the Trustees of The Central Gifts Committee of the Churches of God** 

- examining supporting documents for all material balances, transactions and disclosures 

- review, where applicable, of the Board of Trustees’ minutes; 

- enquiry of management, about litigations and claims and inspection of relevant correspondence 

- analytical procedures to identify any unusual or unexpected relationships; 

- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals and revenue recognition; 

- considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal course of business; 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). 

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 144 of the Charities Act 2011 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Anderson, Anderson & Brown Audit LLP Statutory Auditors _Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006_ 

1 Lochrin Square 92 Fountainbridge Edinburgh EH3 9QA 

24 September 2021 

10 



Churches of God Central Gifts Fund 

Statement of Financial Activities For the Year Ended 31 December 2020 

|**Notes**<br>**Income from:**<br>Donations and legacies<br>**2.**<br>Charitable activities<br>**3.**<br>Investments<br>**4.**<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>**6.**<br>Charitable activities<br>**5.**<br>**Total expenditure**<br>**Net income/(expenditure) before gains and losses**<br>**on investments**<br>**Gains and losses on investment assets**<br>Realised gains<br>Unrealised (losses)/gains<br>**11.**<br>**Total gains on investment assets**<br>**Net income/(expenditure) for the year**<br>Transfers between funds<br>**19.**<br>**Net movement in funds**<br>**Reconciliation of funds**<br>Total funds brought forward<br>**23.**<br>**Total funds carried forward**|_Unrestricted_|_Unrestricted_|_Unrestricted_|**Restricted**<br>**Funds**<br>£<br>510,159<br>8,181<br>-<br>**518,340**<br>-<br>(578,170)<br>**(578,170)**<br>(59,830)<br>-<br>-|**2020**<br>**Total**<br>£<br>**925,274**<br>**8,181**<br>**12,043**<br>**945,498**<br>**(8,360)**<br>**(916,588)**<br>**(924,948)**<br>**20,550**<br>**-**<br>**(494)**|**2019**<br>**Total**<br>£<br>1,627,505<br>13,686<br>15,809|
|---|---|---|---|---|---|---|
||**General**<br>**Fund**<br>£<br>415,116<br>-<br>12,043<br>**427,159**<br>(8,360)<br>(330,369)<br>**(338,729)**<br>88,430<br>-<br>(494)||||||
|||||||1,657,000|
|||||||(8,217)<br>(845,381)|
|||||||(853,598)|
|||||||803,402<br>-<br>44,080|
||**(494)**<br>**87,935**<br>(24,706)||**-**<br>**(8,049)**<br>3,750|**-**<br>**(59,830)**<br>20,956|**(494)**<br>**20,056**<br>**-**|44,080|
|||||||847,482<br>-|
||**63,230**<br>873,821||**(4,299)**<br>39,943|**(38,874)**<br>951,677<br>**912,803**|**20,056**<br>**1,865,441**<br>**1,885,497**|847,482<br>1,017,959|
||**937,051**||**35,644**|**912,803**||1,865,441|



The Statement of Financial Activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities 

The Notes on pages 14 to 27 form an integral part of these financial statements. 

11 



Churches of God Central Gifts Fund 

## Balance Sheet at 31 December 2020 

|**Notes**<br>**Fixed Assets**<br>Tangible Fixed Assets<br>**10.**<br>Investments<br>**11.**<br>**Current Assets**<br>Debtors<br>**12.**<br>Cash at Bank and in Hand<br>**Liabilities:**Amounts falling due<br>within one year<br>**13.**<br>**Net Current Assets**<br>**Total Net Assets**<br>**The Funds of the Charity**<br>**_Unrestricted Funds_**<br>General<br>**16.**<br>Designated<br>**17.**<br>**_Restricted Funds_**<br>**18.**|£<br>556,244<br>864,191|**2020**<br>£<br>35,644<br>514,631<br> <br> <br> <br>1,335,222<br>**1,885,497**<br>937,051<br>35,644<br>912,803<br>**1,885,497**|£<br>975,539<br>419,962|**2019**<br>£<br>39,943<br>479,816<br> <br> <br> <br>1,345,682|
|---|---|---|---|---|
||1,420,435<br>(85,213)||1,395,501<br>(49,819)||
||||||
|||||**1,865,441**|
|||||873,821<br>39,943<br>951,677|
|||||**1,865,441**|



The financial statements were approved by the Trustees on 22 September 2021 and signed on their behalf by 

…………………………………………………. …………………………………………………. **G J Hunter L Burgoyne** _Trustee & Treasurer Trustee_ 

The Notes on pages 14 to 27 form an integral part of these financial statements. 

12 



Churches of God Central Gifts Fund 

## Cash Flow Statement 

|**Notes**<br>**Cash Flow Statement**<br>**Reconciliation of net income/(expenditure) to net**<br>**cashflow**<br>**from operating activities**<br>Net income per the Statement of Financial Activities<br>Depreciation<br>**10.**<br>Interest and income from unit trusts<br>**4.**<br>Disposal of tangible fixed assets<br>**10.**<br>Decrease/ (Increase) in debtors<br>**12.**<br>Increase/ (Decrease) in creditors<br>**13.**<br>**Net cash outflow from operating activities**<br>**Cash flows from investing activities:**<br>Interest and income from unit trusts<br>**4.**<br>Purchase of tangible fixed assets<br>**10.**<br>Purchase of investments<br>**11.**<br>Proceeds from sale of investments<br>**11.**<br>**Net cash provided by investing activities**<br>**Change in cash and cash equivalents in the reporting**<br>**period**<br>**Cash and cash equivalents at the beginning of the**<br>**reporting period**<br>**Cash and cash equivalents at the end of the reporting**<br>**period**|**2020**<br>**£**<br>20,550<br>8,049<br>(12,043)<br>111,886<br>419,295<br>35,394<br>**583,131 **<br>12,043<br>(115,636)<br>(43,669)<br>8,360<br>**(138,902)**<br>444,229<br>419,962<br>**864,191 **|**2019**<br>£<br>803,402<br>6,960<br>(15,809)<br>-<br>(841,434)<br>(4,151)|
|---|---|---|
|||**(51,032)**|
|||15,809<br>(7,623)<br>-<br>-|
|||**8,186**|
|||(42,846)<br>462,808|
|||**419,962 **|



13 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **1. Accounting Policies** 

## **1.1. Statutory Information** 

The Churches of God Central Gifts Fund is a registered charity, No 299106, England and Wales and No. SC024963, Scotland. The principal address is 135 Dundonald Road, Kilmarnock KA1 1UG. 

## **1.2. Basis of preparation and assessment of going concern** 

The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant Notes to these financial statements.  The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard 102 (Effective January 2019), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The principal accounting policies adopted in the preparation of the financial statements are set out below. 

The financial statements are presented in UK Sterling and rounded to the nearest pound. 

The charity meets the definition of a public benefit entity under FRS 102. 

In preparing these financial statements budgets have been examined and the funds of the charity reviewed. The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements. There are no known, material uncertainties regarding the charity's ability to continue as a going concern. 

## **1.3. Fund accounting** 

Funds are classified as either Restricted or Unrestricted, defined as follows: 

Restricted funds are funds subject to specific requirements as to their use which may be declared by the donor or with their authority or created through legal processes, but still within the wider objects of the charity. 

Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the Trustees for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the Trustees’ discretion to apply the fund. 

## **1.4. Income recognition** 

All income is recognised once the charity has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. 

## **Donations and legacies** 

Donations are recognised when they have been communicated in writing with notification of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. 

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. 

14 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **1. Accounting Policies (continued)** 

## **Gift Aid** 

Income tax recoverable on Gift Aid donations is recognised when the respective donation has been recognised and the recoverable amount of income tax can be measured reliably; this is normally when the donor has completed the relevant Gift Aid declaration form.   Income Tax recoverable on Gift Aid donations is allocated to the same fund as the respective donation unless specified by the donor. 

## **Charitable Activities** 

Income from charitable activities includes income earned both from the supply of goods or services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular goods or services to be provided by the charity.    Income from charitable activities is recognised as earned (as the related goods or services are provided). 

## **Investment income** 

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

## **1.5. Expenditure recognition** 

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

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution, refer to Note 5.1 on page 20. 

## **Raising funds** 

Expenditure on raising funds includes all expenditure incurred by a charity to raise funds for its charitable purposes.  It includes the costs of all fundraising activities and events together with those costs incurred in seeking donations, grants and legacies and investment management costs. 

## **Charitable activities** 

Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities on a basis consistent with the use of resources.  The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable. 

## **Irrecoverable VAT** 

Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 

## **1.6. Foreign currency** 

The charity accounts for foreign currency transactions at the prevailing exchange rate on the date of the transaction. Year end balances are converted to Sterling at the prevailing exchange rate at the Balance Sheet date. 

15 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **1. Accounting Policies (continued)** 

## **1.7. Accounting treatment of foreign projects** 

The Fellowship Relief Fund supports projects in several areas. 

The Malawi Project is managed by the Fellowship Relief Committee (“FRC”) in the UK and administered locally. The project is controlled by FRC and the local bank balance is therefore treated as an asset of Churches of God Central Gifts Fund which is included in Debtors in the financial statements. The Statement of Financial Activities reports the actual project expenditure during the year. 

All other projects supported by FRC are treated as outwith the control of FRC. The Statement of Financial Activities reports the Churches of God Central Gifts Fund’s gift to each project during the year. 

## **1.8. Taxation** 

Churches of God Central Gifts Fund is recognised as a charity for the purposes of applicable taxation legislation and is therefore not subject to taxation on its charitable activities. 

## **1.9. Activity based reporting** 

**Income** – the charity generates only a small amount of income from Charitable Activities (Note 3) undertaken, therefore an analysis of Income from Charitable Activities has not been undertaken. 

**Expenditure** – the charity maintains detailed financial records, which allow all costs including support costs to be allocated to charitable activities on a direct basis. Governance costs are allocated across each activity proportionally to the direct spend on each activity. See Note 5.1. 

## **1.10. Financial Instruments** 

The charity 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 the carrying value plus accrued interest less repayments. 

## **1.11. Fixed assets** 

Property: The Charity’s property was bequeathed in 2003 and, in accordance with SORP FRS 102, has been included in the financial statements at the valuation as provided in the Confirmation of Executors. Depreciation is charged on a straight line basis over 50 years at 2% per annum. All tangible assets costing in excess of £500 having a value to the charity greater than one year, other than those acquired for specific purposes, are capitalised. 

## **Depreciation** 

Depreciation is provided at the following rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: 

Motor vehicles: Straight line basis at 25% per annum. Office equipment: Straight line basis at 20% per annum. 

## **1.12. Fixed Asset Investments** 

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the Balance Sheet date using the closing quoted market price. 

16 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **1. Accounting Policies (continued)** 

The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening fair value or their purchase value if acquired subsequent to the first day of the financial year.  Unrealised gains and losses are calculated as the difference between the opening and closing fair values. 

## **1.13. Debtors** 

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

## **1.14. Cash at Bank and in Hand** 

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

## **1.15. Creditors and Provisions** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **1.16. Judgements and estimates** 

In preparing the financial statements, the Trustees are required to make estimates and assumptions which affect reported income, expenses, assets, and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. 

## **1.17. Leasing** 

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term. 

17 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**2.**<br>**Donations and legacies**<br>Bequests/legacies<br>Assembly gifts<br>District funds<br>Assembly hall sales<br>Gift Aid donations<br>Income Tax on Gift Aid donations<br>Donations (non Gift Aid)<br>Other income<br>**3.**<br>**Charitable Activities**<br>Fees<br>Levies<br>**4.**<br>**Investments**<br>Interest received<br>Income from unit trusts|**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>119,165<br>-<br>112,311<br>-<br>-<br>-<br>182,020<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,620<br>-<br>**415,116**<br>**-**<br>**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>-<br>-<br>-<br>-<br>**-**<br>**-**<br>**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>1,005<br>-<br>11,038<br>-<br>**12,043**<br>**-**|**Restricted**<br>**Funds**<br>£<br>(5,700)<br>201,127<br>-<br>-<br>233,787<br>57,097<br>23,832<br>15<br>**510,159**<br>**Restricted**<br>**Funds**<br>-<br>8,181<br>**8,181**<br>**Restricted**<br>**Funds**<br>£<br>-<br>-<br>**-**|**Total**<br>**2020**<br>£<br>**113,465**<br>**313,438**<br>**-**<br>**182,020**<br>**233,787**<br>**57,097**<br>**23,832**<br>**1,635**<br>**925,274**<br>**Total**<br>**2020**<br>**-**<br>**8,181**<br>**8,181**<br>**Total**<br>**2020**<br>£<br>**1,005**<br>**11,038**<br>**12,043**|**Total**<br>**2019**<br>£<br>1,029,608<br>244,040<br>16,723<br>-<br>260,651<br>65,271<br>9,807<br>1,405|
|---|---|---|---|---|
|||||**1,627,505**|
|||||**Total**<br>**2019**<br>5,946<br>7,740|
|||||**13,686**|
|||||**Total**<br>**2019**<br>£<br>2,179<br>13,860|
|||||**15,809**|



18 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**5.**<br>**Costs of charitable activities**<br>**Gifts to Assemblies**<br>**Gifts to Districts**<br>**Relief Work:**<br>General relief<br>India - relief<br>West Africa (excl CEF) - relief<br>CEF - payments to West Africa<br>Philippines - relief<br>Malawi - relief<br>Myanmar - relief<br>Malawi Project<br>**Total Relief costs**<br>**Gifts for Building Projects, Renovations and**<br>**Repairs**<br>India - property<br>West Africa - property<br>Philippines - property<br>Malawi – property<br>Mozambique - property<br>Myanmar – property<br>**Total Building costs**<br>**Outreach Work:**<br>General outreach<br>India, Myanmar and Philippines – outreach<br>Africa – outreach<br>Australasia, North America<br>Special Projects - outreach<br>Radio & Media - outreach<br>Literature<br>**Total Outreach costs**<br>**Gifts to Lord's Servants (UK and overseas):**<br>Lord's Servants<br>Africa<br>Far East|**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>206,737<br>-<br>1,500<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>12,500<br>-<br>12,500<br>-<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>3,300<br>-|**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>206,737<br>-<br>1,500<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>12,500<br>-<br>12,500<br>-<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>3,300<br>-|**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>206,737<br>-<br>1,500<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>12,500<br>-<br>12,500<br>-<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>3,300<br>-|**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Funds**<br>£<br>£<br>206,737<br>-<br>1,500<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>15,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>12,500<br>-<br>12,500<br>-<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>3,300<br>-|**Restricted**<br>**Funds**<br>£<br>171,445<br>-<br>11,982<br>15,000<br>17,250<br>-<br>13,000<br>43,570<br>13,824<br>56,387<br>171,012<br>10,800<br>-<br>1,000<br>5,950<br>-<br>-|**Restricted**<br>**Funds**<br>£<br>171,445<br>-<br>11,982<br>15,000<br>17,250<br>-<br>13,000<br>43,570<br>13,824<br>56,387<br>171,012<br>10,800<br>-<br>1,000<br>5,950<br>-<br>-|**Total**<br>**2020**<br>£<br>**378,182**<br>**1,500**<br>**27,732**<br>**15,000**<br>**17,250**<br>**-**<br>**13,000**<br>**43,570**<br>**13,824**<br>**56,387**<br>**186,762**<br>**10,800**<br>**-**<br>**1,000**<br>**5,950**<br>**-**<br>**12,500**<br>**30,250**<br>**15,879**<br> <br>**39,647**<br> <br>**16,553**<br> <br>**-**<br> <br>**9,110**<br> <br>**7,071**<br> <br>**10,189**<br>|**Total**<br>**2019**<br>£<br>166,162|
|---|---|---|---|---|---|---|---|---|
|||||||||11,968|
|||||||||14,069<br>3,000<br>22,100<br>14,000<br>11,500<br>46,303<br>5,538<br>106,153|
|||||||||222,663|
||||||||||
|||||||||28,323|
|||||||||2,500|
|||||||||5,000|
|||||||||39,089|
|||||||||3,904|
|||||||||15,612|
||||||17,750<br>13,879<br>39,647<br>16,553<br>-<br>9,110<br>7,071<br>6,889|||94,428|
||||||||||
|||||||||42,606|
|||||||||69,321|
|||||||||35,705|
|||||||||1,951|
|||||||||7,506|
|||||||||11,615|
|||||||||5,193|
||5,300<br>55,750<br>3,000<br>250||-<br>-<br>-<br>-||93,150<br>54,996<br>61,348<br>3,865||**98,450**<br> <br>**110,746**<br> <br>**64,348**<br> <br>**4,115**<br>|173,897|
||||||||||
|||||||||56,623|
|||||||||46,045|
|||||||||9,778|
||59,000||-||120,209||**179,209**<br>|112,446|



19 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**Other Admin Costs:**<br>Property costs<br>Conference Costs<br>Leading brethren<br>General Expenses<br>Bank charges<br>(Profit) on disposal of fixed assets<br>Exchange loss<br>Depreciation<br>**Total Admin costs**<br>**Governance Costs:**<br>Audit fees (Note 8)<br>Professional fees<br>Trustees' expenses<br>**Total Governance costs**<br>**5.1.**<br>**Allocation to charitable activity**<br>**Activity**<br>Gifts to Assemblies<br>Gifts to Districts<br>Relief work<br>Building Projects, Renovations and<br>Repairs<br>Outreach work<br>Gifts to Lord's Servants (UK and<br>overseas)|**Unrestricted**<br>**General**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Fund**<br>**Funds**<br>**Funds**<br>**2020**<br>228<br>-<br>-<br>**228**<br> <br>-<br>-<br>560<br>**560**<br> <br>-<br>-<br>2,928<br>**2,928**<br> <br>1,788<br>-<br>120<br>**1,908**<br> <br>756<br>-<br>785<br>**1,541**<br> <br>-<br>-<br>-<br>**-**<br> <br>-<br>-<br>211<br>**211**<br> <br>-<br>8,049<br>-<br>**8,049**<br>|**Unrestricted**<br>**General**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Fund**<br>**Funds**<br>**Funds**<br>**2020**<br>228<br>-<br>-<br>**228**<br> <br>-<br>-<br>560<br>**560**<br> <br>-<br>-<br>2,928<br>**2,928**<br> <br>1,788<br>-<br>120<br>**1,908**<br> <br>756<br>-<br>785<br>**1,541**<br> <br>-<br>-<br>-<br>**-**<br> <br>-<br>-<br>211<br>**211**<br> <br>-<br>8,049<br>-<br>**8,049**<br>|**Unrestricted**<br>**General**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Fund**<br>**Funds**<br>**Funds**<br>**2020**<br>228<br>-<br>-<br>**228**<br> <br>-<br>-<br>560<br>**560**<br> <br>-<br>-<br>2,928<br>**2,928**<br> <br>1,788<br>-<br>120<br>**1,908**<br> <br>756<br>-<br>785<br>**1,541**<br> <br>-<br>-<br>-<br>**-**<br> <br>-<br>-<br>211<br>**211**<br> <br>-<br>8,049<br>-<br>**8,049**<br>|**Unrestricted**<br>**General**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Fund**<br>**Funds**<br>**Funds**<br>**2020**<br>228<br>-<br>-<br>**228**<br> <br>-<br>-<br>560<br>**560**<br> <br>-<br>-<br>2,928<br>**2,928**<br> <br>1,788<br>-<br>120<br>**1,908**<br> <br>756<br>-<br>785<br>**1,541**<br> <br>-<br>-<br>-<br>**-**<br> <br>-<br>-<br>211<br>**211**<br> <br>-<br>8,049<br>-<br>**8,049**<br>|**Unrestricted**<br>**General**<br>**Designated**<br>**Restricted**<br>**Total**<br>**Fund**<br>**Funds**<br>**Funds**<br>**2020**<br>228<br>-<br>-<br>**228**<br> <br>-<br>-<br>560<br>**560**<br> <br>-<br>-<br>2,928<br>**2,928**<br> <br>1,788<br>-<br>120<br>**1,908**<br> <br>756<br>-<br>785<br>**1,541**<br> <br>-<br>-<br>-<br>**-**<br> <br>-<br>-<br>211<br>**211**<br> <br>-<br>8,049<br>-<br>**8,049**<br>|**Total**<br>**2019**|
|---|---|---|---|---|---|---|
|||||||2,934|
|||||||7,713|
|||||||3,227|
|||||||13,260|
|||||||1,375|
|||||||(887)|
|||||||182|
|||||||6,960|
||2,772<br>23,503<br>3,307<br>-||8,049<br>-<br>-<br>-|4,603<br>-<br>-<br>-|**15,424**<br> <br>**23,503**<br> <br>**3,307**<br> <br>**-**<br>|34,764|
||||||||
|||||||27,468|
|||||||1,075|
|||||||510|
||26,810<br>**330,369**<br>**Direct**<br>**charitable**<br>**costs**<br>£<br>378,182<br>1,500<br>186,762<br>30,250<br>98,450||-<br>**8,049**||**26,810**<br> <br>**916,588**<br>**Total**<br>**2020**<br>£<br>**395,402**<br> <br>**1,546**<br> <br>**200,749**<br> <br>**31,178**<br> <br>**103,010**<br>|29,053|
||||||||
|||||||**845,381**|
|||||||**Total**<br>**2019**<br>£|
||||_Support Costs_||||
||||**Admin**<br>**costs**<br>£<br>5,624<br>-<br>8,260<br>1,541||||
|||||||197,801|
|||||||12,413|
|||||||238,082|
|||||||97,938|
|||||||182,521|
||||||||
||179,209<br>|||5,495<br>|**184,704**<br> <br> <br>|116,626|
||||||||
||**874,353**<br>||**15,424**<br>|**26,810**<br>|**916,588**<br>|**845,381**|



Support costs comprise the items listed below the heading "Other Admin Costs" in Note 5. 

|**6.**<br>**Raising Funds**<br>Investment Managers' fee|**General**<br>**Fund**<br>£<br>8,360|**Designated**<br>**Funds**<br>£<br>-|**Restricted**<br>**Funds**<br>£<br>-|**Total**<br>**2020**<br>£<br>**8,360**|**Total**<br>**2019**<br>£<br>8,217|
|---|---|---|---|---|---|



20 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**7.**<br>**Net expenditure for the year**<br>**Net expenditure is stated after charging:**<br> Depreciation on other amounts written off tangible assets<br>Auditor's remuneration<br>Exchange loss|**2020**<br>**£**<br>**8,049**<br>**23,503**<br>**211**|**2019**<br>**£**<br>6,960<br>27,468<br>182|
|---|---|---|



## **8. Auditor's remuneration** 

The auditor's remuneration constituted an audit fee of £15,000 (2019: £22,200) and professional fees totalling £8,503 (2019: £5,268). 

|**9.**<br>**Staff costs**<br>Total employment costs (included in Note 5 Malawi Project costs)<br>There were no employees who received remuneration of over £60,000 in the year.<br>_Staff numbers_<br>Average full time equivalents<br>**10.**<br>**Tangible Fixed Assets**<br>**Heritable**<br>**Motor**<br>**property**<br>**Vehicle**<br>£<br>£<br>**_Cost_**<br>At 1 January 2020<br>32,527<br>26,943<br>Additions<br>111,886<br>3,750<br>Disposals<br>(111,886)<br>-<br>At 31 December 2020<br>32,527<br>30,693<br>**_Depreciation_**<br>At 1 January 2020<br>5,865<br>14,547<br>Charge for year<br>641<br>7,111<br>At 31 December 2020<br>6,506<br>21,658<br>**_Net Book Value_**<br>At 31 December 2020<br>26,021<br>9,035<br>At 31 December 2019<br>26,662<br>12,396|**2020**<br>£<br>**15,390**<br>**17**<br>**Office**<br>**Equipment**<br>£<br>1,180<br>-<br>-<br>1,180<br>295<br>297<br>592<br>588<br>885|**2019**<br>£<br>14,892<br>15|
|---|---|---|
|||**Total**<br>£<br>**60,650**<br>**115,636**<br>**(111,886)**|
|||**64,400**|
|||**20,707**<br>**8,049**|
|||**28,756**|
|||**35,644**|
|||39,943|



Heritable property comprises a flat at 48 Mid Stocket Road, Aberdeen. The property, which was bequeathed to the charity in 2003, has been incorporated into the charity's financial statements in accordance with the principles outlined in the Charities SORP. In this case, the cost of the property is the value at the date of the bequest. The Confirmation of Executor allocated a value of £32,527 to the property. 

21 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**11.**<br>**Investments**<br>**Market Value**<br>Market value at 1 January 2020<br>Additions<br>Disposals<br>Revaluation<br>**Market value at 31 December 2020**<br>Historical Cost at 31 December 2020<br>**11.1**<br>**Analysis of Investments**<br>**Market value at year end**<br>Investments listed on a recognised stock exchange or held in common<br>investment funds, open ended investment companies, unit trusts or<br>other collective investment schemes.<br>**Total**<br>UK Equity Investment<br>Fixed Interest Investments<br>Other Investments<br>The charity's investments are held primarily for investment return.<br>**12.**<br>**Debtors**<br>Gift Aid<br>Other debtors|**2020**<br>£<br>479,816<br>43,669<br>(8,360)<br>(494)<br>**514,631**<br>387,969<br>**2020**<br>£<br>514,631<br>**514,631**<br>88,493<br>165,096<br>261,042<br>**514,631**<br>**2020**<br>£<br>13,102<br>543,142<br>**556,244**|**2019**<br>£<br>435,736<br>-<br>-<br>44,080|
|---|---|---|
|||**479,816**|
|||355,233|
|||**2019**<br>£<br>479,816|
|||**479,816**|
|||97,758<br>160,680<br>221,378|
|||**479,816**|
|||**2019**<br>£<br>13,611<br>961,928|
|||**975,539**|



22 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**13.**<br>**Liabilities:**Amounts falling due within one year<br>Other creditors<br>Accrued expenses<br>Malawi Project Current Account<br>**14.**<br>**Financial Instruments**<br>**Carrying amount of financial assets**<br>Financial assets measured at amortised cost<br>Financial assets measured at fair value<br>**Carrying amount of financial liabilities**<br>Measured at amortised cost<br>**15.**<br>**Analysis of Net Assets between Funds**<br>**Unrestricted**<br>**General**<br>**Designated**<br>**Fund**<br>**Fund**<br>£<br>£<br>Fund balances at 31 December 2020<br>as represented by:<br>Tangible Fixed Assets<br>-<br>35,644<br>Investments<br>514,631<br>-<br>Current Assets<br>532,331<br>-<br>Current Liabilities<br>(109,910)<br>-<br>**Net Assets**<br>**937,052**<br>**35,644**|**2020**<br>**2019**<br>£<br>£<br>48,134<br>7,321<br>31,114<br>38,418<br>5,965<br>4,080<br>**85,213**<br>**49,819**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>1,420,435<br>1,395,501<br>514,631<br>479,816<br>85,213<br>49,819<br>**Restricted**<br>**2020**<br>**Funds**<br>**Total Funds**<br>£<br>£<br>-<br>**35,644**<br>-<br>**514,631**<br>888,104<br>**1,420,435**<br>24,698<br>**(85,213)**<br>**912,802**<br>**1,885,497**|**2019**<br>£<br>7,321<br>38,418<br>4,080|
|---|---|---|
|||**49,819**|
|||**2019**<br>**£**<br>1,395,501<br>479,816|
|||49,819|



## **16. Unrestricted Funds** 

|General Fund|**1 Jan '20**<br>873,821<br>**873,821**|**Income**<br>427,159<br>**427,159**|**Expenditure**<br>(338,729)<br>**(338,729)**|**Investment**<br>**gains/(losses)**<br>(494)<br>**(494)**|**Transfers**<br>(24,706)<br>**(24,706)**|**31 Dec '20**<br>937,051|
|---|---|---|---|---|---|---|
|||||||**937,051 **|



## **Purposes of Unrestricted Funds** 

**General Fund:** This Fund represents gifts and other income received for the objects of the charity without further specified purposes. 

23 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

|**17.**<br>**Designated Funds (Unrestricted)**<br>**1 Jan '20**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>£<br>£<br>£<br>£<br>Designated Assets Fund<br>39,943<br>-<br>(8,049)<br>3,750<br>**39,943**<br>**-**<br>**(8,049)**<br>**3,750**<br>**Purposes of Designated Funds**<br>**Designated Assets Fund:**This Fund represents the net book value of the charity's fixed assets.<br>**18.**<br>**Restricted Funds**<br>**1 Jan '20**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>£<br>£<br>£<br>£<br>Central Gifts Fund<br>44,623<br>260,757<br>(250,245)<br>(1,000)<br>Lord's Servants and Widows Fund<br>1,980<br>-<br>-<br>-<br>Fellowship Relief Fund - Relief<br>242,580<br>83,255<br>(30,284)<br>(75,575)<br>Fellowship Relief Fund - Philippines<br>-<br>460<br>(15,075)<br>14,615<br>Fellowship Relief Fund - Malawi<br>-<br>48,169<br>(91,421)<br>43,251<br>Fellowship Relief Fund - Myanmar<br>-<br>2,155<br>(13,824)<br>11,669<br>Fellowship Relief Fund - CEF<br>-<br>4,187<br>(10,728)<br>6,541<br>Fellowship Outreach Fund<br>548,290<br>50,535<br>(74,709)<br>-<br>Far East and Africa Property (FEAP)<br>Fund<br>89,994<br>2,687<br>(23,185)<br>19,858<br>Conference of Overseers' Fund<br>1,848<br>8,181<br>(3,488)<br>-<br>Africa Ministering Brethren's Fund<br>1,947<br>57,804<br>(61,348)<br>1,597<br>Far East Ministering Brethren's Fund<br>20,415<br>150<br>(3,865)<br>-<br>**951,677**<br>**518,340**<br>**(578,170)**<br>**20,956**|**31 Dec '20**<br>£<br>**35,644**|
|---|---|
||**35,644**|
||**31 Dec '20**<br>£<br>54,135<br>1,980<br>219,976<br>-<br>-<br>-<br>(1)<br>524,117<br>89,354<br>6,541<br>-<br>16,700|
||**912,803**|



**Central Gifts Fund:** (1) To receive donations which, together with Gift Aid, are paid to the notified beneficiaries. (2) To receive bequests which are distributed according to the terms of the last will and testament. (3) To make grants to other funds held by Churches of God. 

**Lord's Servants and Widows Fund:** To provide relief to Lord's servants or their widows where there is a perceived need. 

**Fellowship Relief Fund (Relief):** To receive donations which, together with Gift Aid where appropriate, provide for relief at the discretion of Trustees. 

**Fellowship Relief Fund (Philippines):** To receive donations which, together with Gift Aid where appropriate, provide for relief to the Philippines. 

**Fellowship Relief Fund (Malawi):** To receive donations which, together with Gift Aid where appropriate, provide for relief to Malawi. 

**Fellowship Relief Fund (Myanmar):** To receive donations which, together with Gift Aid where appropriate, provide for relief to Myanmar. 

**Fellowship Relief Fund (CEF):** To receive donations which, together with Gift Aid where appropriate, provide for primary and secondary education in Nigeria under the banner of CEF (Commonwealth Education Fund). For many years Nigeria has operated the SNIP fund and another fund called HANDS (Help A Nigerian Develop Scholastically). The latter was financed direct by the Toronto assembly in Canada but essentially supported the same range of students. In September it was agreed to merge SNIP and HANDS naming the new fund CEF. 

24 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **18. Restricted Funds (Continued)** 

**Purposes of Restricted Funds (Continued)** 

**Fellowship Outreach Fund:** To receive donations which fund outreach among Churches of God worldwide. 

**Far East and Africa Property Fund:** To receive donations which, together with Gift Aid where appropriate, provide funding for new church buildings and upgrading of existing churches in the Far East and Africa. 

**Conference of Overseers' Fund:** To receive levies from districts of Churches of God to provide funds for the Conference of Churches of God held every eighteen months and to meet related expenses. 

**Africa Ministering Brethren's Fund:** To receive donations which provide remuneration for certain full time Lord's servants working in Africa. 

**Far East Ministering Brethren's Fund:** To receive donations which provide remuneration for full time Lord's servants working in Myanmar and the Philippines. 

## **19. Fund Transfers** 

||**Unrestricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**||**Restricted**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||**Designated**||**Fellowship**||**Fellowship**||**Fellowship**||**Africa**||**Far East**||**Fellowship**||**Fellowship**||**Central**|
||||||**Relief**||**Relief**||**Relief**||**Ministerin**||||**Relief**||**Relief**|||
||**General**||**Assets**||**Fund**||**Fund**||**Fund**||**g**||**& Africa**||**Fund**||**Fund**||**Gifts**|
||||||||||||||**Property**|||||||
|**Note**|**Fund**||**Fund**||**Relief**||**Philippines**||**Malawi**||**Brethren**||**Fund**||**CEF**||**Myanmar**||**Fund**|
||£||£||£||£||£||£||£||£||£||£|
|**1**|(1,097)||-||(75,575)||14,615||43,251||1,597||-||6,541||11,669||(1,000)|
|**2**|(19,858)||-||-||-||-||-||19,858||-||-||-|
|**3**|(3,750)||3,750||-||-||-||-||-||-||-||-|
||**(24,706)**||**3,750**||**(75,575)**||**14,615**||**43,251**||**1,597**||**19,858**||**6,541**||**11,669**||**(1,000)**|



- **1** To cover Fund deficits 

- **2** To cover Fund contributions 

- **3** To finance the purchase of assets 

## **20. Operating lease commitment** 

At 31 December 2020, the charity had the following financial commitments (after consideration of cancellation terms) on service contracts: 

|Expiry date: Within 1 year|**2020**<br>£<br>**1,446**|**2019**<br>£<br>1,620|
|---|---|---|



25 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **21. Transactions with Trustees** 

No Trustee received remuneration from the charity (2019 - £nil). 

During the year two (2019 - five) Trustees were reimbursed expenses totalling £1,693 (2019 - £2,543), the nature of which were related to their duties as Trustees of the charity. In particular these expenses related to: 

|Meeting expenses<br>Printing, postage and stationery|**2020**<br>£<br>1,693<br>-<br>**1,693**|**2019**<br>£<br>2,480<br>63|
|---|---|---|
|||**2,543**|



At the year end £nil was payable to the Trustees for expenses (2019 - £210) 

## **22. Related Party Transactions** 

During the year, the Trustees gave donations of £12,535 (2019: £13,337) to the charity. 

## **Trustees' relationships with churches of God were as follows:** 

Leonard Ross is a Trustee of the properties of The Church of God in Aberdeen and The Church of God in Lerwick. Robert Shaw is a Trustee of the Church of God in Swindon CIO. 

Alex Brown is a Trustee of the properties of The Church of God in Wishaw and The Church of God in Kirkintilloch. David King is a Trustee of the property of The Church of God in Manchester. 

Leonard Burgoyne is a Trustee of the property of The Church of God in Ayr SCIO (Scottish Charity No. SC047484). He is also a Trustee of The Church of God in Kilmarnock SCIO (Scottish Charity No. SC047208). 

During the year, the charity received gifts from the undernoted Assemblies with which the charity's Trustees were associated: 

|Aberdeen<br>Ayr SCIO<br>Barrhead<br>Kilmarnock SCIO<br>Kirkintilloch SCIO<br>Lerwick<br>Manchester<br>Swindon<br>Wigan<br>Wishaw|£<br>**Trustee**<br>4,507<br>Leonard Ross<br>1,390<br>Leonard Burgoyne<br>660<br>Fergus Reilly<br>785<br>Leonard Burgoyne<br>5,235<br>Alex Brown<br>1,800<br>Leonard Ross<br>7,200<br>David King<br>4,255<br>Robert Shaw<br>10,807<br>Graeme Hunter<br>3,272<br>Alex Brown<br>**39,911**|
|---|---|



26 



Churches of God Central Gifts Fund 

## **Notes to the Financial Statements** _for the Year Ended 31 December 2020_ 

## **23. Statement of Financial Activities for the year ended 31 December 2019** 

|**Income from:**<br>Donations and legacies<br>Charitable activities<br>Investments<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>**Net income/(expenditure)**<br>**before gains and losses**<br>**on investments**<br>**Gains and losses on**<br>**investment assets**<br>Realised gains<br>Unrealised gains<br>**Total gains on**<br>**investment assets**<br>**Net income/(expenditure)**<br>**for the year**<br>Transfers between<br>funds<br>**Net Movement in Funds**<br>**Reconciliation of funds**<br>Total funds brought<br>forward<br>**Total funds carried**<br>**forward**|_Unrestricted_|_Unrestricted_|**Restricted**<br>**Funds**<br>£<br>1,575,771<br>13,686<br>-<br>1,589,457<br>-<br>(770,035)<br>(770,035)<br>819,422<br>-<br>-|**2019**<br>**Total**<br>£<br>**1,627,505**<br>**13,686**<br>**15,809**|
|---|---|---|---|---|
||**General**<br>**Fund**<br>£<br>51,734<br>-<br>15,809<br>67,543<br>(8,217)<br>(68,686)<br>(76,603)<br>(9,060)<br>-<br>44,080||||
|||||**1,657,000**|
|||||**(8,217)**<br>**(845,381)**|
|||||**(853,598)**|
|||||**803,402**<br>**-**<br>**44,080**|
||44,080<br>35,020<br>(7,623)|-<br>(6,960)<br>7,623|-<br>819,422<br>-|**44,080**<br>**847,482**<br>**-**|
||27,397<br>846,424<br>**873,821**|663<br>39,280<br>**39,943**|819,422<br>132,255<br>**951,677**|**847,482**<br>**1,017,959**|
|||||**1,865,441**|



Under Charities Statement of Recommended Practice (FRS 102), comparatives for each class of funds are required for each line on the Statement of Financial Activities (SoFA). The note above illustrates the SoFA for the year to 31 December 2019. 

27