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2020-12-31-accounts

Registered number: 00654913 (England and Wales) Charity number: 311098 (England and Wales) SC040008 (Scotland)

WORLDWIDE CHURCH OF GOD

Also known as Grace Communion International

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

CONTENTS
Page
Reference and Administrative Details 1 - 2
Trustees' Report 3 – 11
Independent Auditors’ Report 12 – 15
Statement of Financial Activities 16
Balance Sheet 17 – 18
Statement of Cash Flows 19
Notes to the Financial Statements 20 - 40

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees

David Silcox Peter Sheppard Gordon Brown Linda Halford Simon Williams James Lambu Maureen Watson Margaret Mitchell James Henderson Hilary Buck James Esom

(Chair)

(Honorary Treasurer & Company Secretary)

(Resigned 16 December 2020) (Resigned 13 March 2021) (Appointed 17 June 2021) (Appointed 17 June 2021)

National Ministry Team

(Effective until 9 May 2021)

Gavin Henderson Barry Robinson Peter Mill

(Operations Manager) (Ombudsman) (Mission Developer)

National Ministry Leader

(Effective from 9 May 2021)

Gavin Henderson

Secretary to the Trustees

Peter Sheppard

Registered Charity Name:

Worldwide Church of God

Names Also Known By

Grace Communion International Summer Educational Programme (Summer camp only)

Registered Office and Operational Address

9 The Point Rockingham Road Market Harborough Leicestershire LE16 7QU

Company Registered Number

00654913 (England & Wales)

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020

Charity Registered Number

311098 (England & Wales) SC040008 (Scotland)

Independent Auditor

MHA MacIntyre Hudson Chartered Accountants 11 Merus Court Meridian Business Park Leicester LE19 1RJ

Bankers

Barclays Bank Plc 20 High St Market Harborough LE16 7NR

Solicitors

Edward Connor Solicitors 10 The Point, Market Harborough, Leicestershire LE16 7QU

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees (who are also the directors of the Charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Worldwide Church of God also known as Grace Communion International (“GCI UK”, “we”, the charitable company, the Church, the Charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the charitable company comply with current statutory requirements, the requirements of the charitable company’s governing document, the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” and Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), and the Companies Act 2006.

The charity qualifies as small under S383 of the Companies Act 2006. A Strategic Report under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 is not required.

OBJECTIVES AND ACTIVITIES

Mission Statement

The mission of the Charity is to proclaim the good news of Jesus Christ whenever and wherever it can. We take care of those whom God calls into our part of the body of his Church by inspiring and training them to serve and love others, reflecting the way in which Jesus Christ loves humanity. Thus, we seek to create a positive and accountable spiritual environment in which the Church lives and shares the Gospel of Jesus Christ in the UK, Ireland and beyond.

To help us achieve this mission a 5-point approach to both living and sharing the Gospel is used:

Living the Gospel

  1. Bringing churches and members into accountability to the peace of Christ.

  2. Contact and correspondence.

  3. Pastoral councils and structures.

  4. Retreats, festivals, fellowship opportunities.

  5. National conferences and local seminars.

Sharing the Gospel

  1. Exhort the membership to continue the work of Jesus Christ.

  2. Intergenerational ministries and mission.

  3. Creating a financial model to enable local churches to do mission.

  4. Exploring national and local mission opportunities.

  5. Creating a platform of ideas.

Main Activities

As a Church our main activity is to hold regular (weekly) services for our Church members. These services are open to everyone, including the public, who are welcome to join in and participate with us in worship and to hear a sermon proclaiming Jesus Christ and his Kingdom, though we reserve the right to refuse entry where necessary. We have 38 churches and/or worship groups throughout the UK and Ireland.

These services provide a safe environment for people to celebrate the church’s beliefs. We believe this supports our mission to live and share the gospel, and subsequently encourages congregants to express their Christian beliefs by serving people in their families, in the workplace, and in their local communities.

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Experienced local pastoral workers provide support for people through biblical counselling, and, in the case of ordained ministry, through performing ministerial duties such as weddings, funerals, and offering general assistance where possible or where needs have been expressed. Ministers and approved pastoral workers are increasingly being asked to give biblical counsel and comfort to the sick and terminally ill, and to bereaved relatives and friends: often such services are provided to people with little or no prior connection to the church and are provided free of charge.

We communicate regularly to all members and church contacts using various communication media. A member letter from the National Ministry Team or GCI Superintendent of Europe was sent out at least monthly. In addition, we send out two magazines with these letters. The Because magazine is an outreach magazine designed for those “on the edge of spirituality” and aimed to encourage and support those who are beginning to ask questions about God and faith. The Belong magazine is to help encourage our members and develop their faith through articles and updates about our current projects and activities. These magazines are free and the member letter they are sent out with has a circulation of around 800 members. The magazines are also available on our websites and at our outreach events.

We also produced a daily Bible study series in 2020, called Day by Day which was published on our website www.daybyday.org.uk. Towards the end of 2020, the decision was made to review this project with an aim to overhaul the website and improve the quality of the studies. It was relaunched in early 2021 under the name Word of Life and is available at wordoflife.gracecom.church. The studies are made freely available and we also offer an email subscription allowing members and contacts to receive the study each day in their inbox. The project has a high proportion of international readers.

In response to the Covid pandemic, the Church began live streaming sermons and Bible studies on YouTube in March 2020. During this time our local congregations also reached out to offer support to our members and contacts through WhatsApp groups, Zoom gatherings, telephone calls and letters.

Due to the pandemic we had to cancel our celebratory festivals and retreats, as well as our Youth Camps (SEP and Adventure Camp). As an alternative we offered a week-long virtual celebration in October using a combination of Zoom and YouTube, which included special opportunities for all ages to connect.

Volunteers

We are greatly indebted to all our volunteers for their dedication, time and skills: in particular the over 100 voluntary pastoral workers, without whom the church and charity could not provide its services. This year was a particularly challenging year for our Church and we are very appreciative of our ministers, congregational leaders and pastoral council members who helped keep the connectivity alive in our Church in difficult circumstances.

We are also very grateful for those who help write, promote and produce our magazines Because and Belong and also our daily Bible study series Day by Day (now called Word of Life). In particular we would like to thank Nancy Silcox, our long-term volunteer editor for Day by Day who retired in 2020 after over a decade of hard work. We would also like to thank Geoff Sole who wrote weekly children’s lessons throughout the pandemic.

Finally, while our summer camps were not able to go ahead, we are very appreciative of those who work with our Youth and we look forward to when we will next be able to run our summer camps with them.

Public Benefit

GCI UK, as outlined above, carries out a large number of activities to achieve its aims and objectives. The Trustees consider that these activities provide a public benefit both in terms of the redemptive work of the Church

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

as well as the social outreach the Church engages in, on regional, national and international levels. They have considered the guidance issued by both the Charity Commission and the Office of the Scottish Charity Regulator on Public Benefit in this regard. The Trustees would like to emphasise in particular the Church’s desire to be inclusive, where we strive to make the services and events that we run open to all and endeavour not to present a financial barrier to attendance and participation.

ACHIEVEMENTS AND PERFORMANCE

Achievements and Performance Summary

The global coronavirus pandemic had a significant impact on our Church. Due to government regulations, our church services were halted during the first lockdown and many of our congregations did not resume physical services for the rest of 2020. Some of our events, such as our Scottish, Galway, Bridlington and Paignton celebrations, had to be cancelled as well as both our summer camps (SEP and Adventure Camp) and our denominational conference.

The pandemic also meant that some of our leadership development plans were delayed, with our coaching programme having to take place virtually and retreats for our developing leaders cancelled.

In response to the pandemic, the Church started a national YouTube live stream broadcast from scratch that produced three streams a week (two services and a Bible study) from March 2020 up until November 2020 when its schedule changed to one service and one Bible study a week to allow more space for local Zoom services. By the end of the year a significant number of our congregations were offering local Zoom services, and one of our congregations also offered a weekly Facebook live broadcast.

A particular highlight for the year was a week-long virtual celebration that took place in October and featured several presentations from guest speakers such as Dr Adesola Akala, Dr Robert Beckford and Dr Mike Higton. The event also featured regular Zoom prayer sessions, fellowship session, a quiz, an Adventure Camp session for our Youth and daily sermons.

For those without internet, many of our congregations arranged to send out CDs of sermons and we increased the frequency of our physical mailings and sent out two books to our members and contacts. The first book was Five Things to Pray in a Global Pandemic by Rachel Jones and the second book was Where is God in a Coronavirus World? by John C Lennox.

Over the Covid pandemic period three of our congregations offered support for homeless and low-income families – a soup kitchen offered in Llanelli and homeless outreach initiatives in Market Harborough and Glasgow.

A coaching training session was also held in 2020. This session was aimed to encourage and develop some of our ministers so that they can in turn support new leaders in the church and was held using Zoom. The training involved two cohorts and three days of training along with additional support material. A Developing Leaders group was set up in our Southern England region with sessions conducted using Zoom. We have also sponsored several of our volunteers and employees in the area of theological education, both with local UK institutions (e.g. the Queen’s Foundation, Birmingham) as well as our denominational accredited seminary (www.gcs.edu) in the US and our denominational seminary in Australia (www.ambascol.org).

The management of the church has also been monitored regularly by the governance of its Board of Trustees. The Church has continued to keep its members well-informed, and to promote Christian values and ethics locally through its churches and nationally through its media outreach.

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The George Floyd protests had a significant impact on our church and a Zoom prayer meeting was held to support our Black members and contacts. The NMT made a public apology for historical racism in the Church and produced both a Because and Belong edition with a focus on the impact of the George Floyd protests and the evil of racism. The Board and employees underwent Diversity and Inclusion training in the last quarter of 2020. The Church is committed to tackling racism within the Church.

Administration & Management

The Board of Trustees continue their review of the Memorandum and Articles of Association of the charity to bring them up to date with current legislation and to take advantage of new technology that is available. The Board of Trustees hope to complete this process in 2021.

GCI UK has also continued to review and update its policies and to assess the risks facing the charity. During 2020 new Covid risk assessments and guidance were developed to help ensure that our congregations are able to safely return to physical services when able to do so.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Worldwide Church of God was incorporated as a company limited by guarantee in 1960 and registered as a charity in 1963. The charity is governed by a Memorandum and its Articles of Association dated 1 April 1960 and amended by Special Resolution on 1 June 1984, 1 August 1986, 6 February 2000, 23 July 2004, 14 July 2006, 27 October 2007, 2 August 2008, 17 July 2011, 2 September 2017 and 19 July 2020.

Method of Appointment or election of Trustees and Training Policies

As set out in the Articles of Association there are a minimum of five Trustees and a maximum of fifteen. As at 31 December 2020 there were eight Trustees. Trustees are elected in accordance with the Articles of Association for a term of three years and may serve if so elected, for three terms, before being required to step down for at least one year. Trustees are required to abide by the Code of Ethics for Elders and the Grace Communion International Statement of Beliefs as published by Grace Communion International USA (GCI HQ) based in Charlotte, USA.

Any new Trustee is given a copy of the Memorandum and Articles of Association. Induction is provided in the form of copies of previous minutes and copies of the latest Governance & Leadership magazine and Charity Commission News. Each new Trustee is provided with a copy of the guidance advice from the Charity Commission and Office of the Scottish Charity Regulator for new Trustees.

Trustees are also kept up to date with the availability of (fully funded) courses/seminars on Trustees’ responsibilities.

Trustee Benefits

GCI UK does not give remuneration to Trustees for their role as Trustees. It does, however, help cover the costs of their travel and the training required or recommended for their duties as Trustees.

As permitted by the Articles of Association, each Trustee has the benefit of an indemnity, which is a qualifying third-party indemnity as defined by Section 234 of the Companies Act 2006.

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Organisational Structure and Decision Making

GCI UK is governed by a Board of Trustees, which meets at least four times a year to:

Board Committees

Sub-committees, if necessary, are appointed on an ad-hoc basis and disbanded when they have completed the task for which they are formed. In 2020 there were two sub-committees: the National Ministry Team’s remuneration sub-committee and the Leadership and Operational Structure sub-committee.

International Connections

GCI UK operates as an organisation associated with GCI HQ. Although capable of independent operation, GCI UK has willingly subordinated itself in doctrinal matters to the GCI HQ insofar as it does not bring our church and charity into conflict with UK laws.

Additionally, we have a working relationship with various Grace Communion International organisations overseas – in particular those based in Europe, and, upon the request of the President of GCI HQ, we have agreed that James Henderson, our former National Director and one of the UK's ministers, would act as the Denominational Superintendent for Europe. As he is not paid for this role, we have accordingly agreed to subsidise his expenses within our budgetary limitations.

In addition, we seek to support and value our international connections, although due to the difficulty in international travel throughout much of 2020, this was mostly limited to virtual support.

Operational management

In 2020, the general management and strategic planning were delegated to the NMT within the guidelines of the Board’s Mission Statement and within the vision of the denomination. The NMT reported regularly to the Board and to GCI HQ and is supported by its staff with whom it consults regularly.

At the end of 2020 the Board appointed a Leadership and Organisational Structure sub-committee to review the leadership of the Church and in early 2021 agreed to move from a National Ministry Team to a National Ministry Leader. In May 2021, after having interviewed candidates, the Board of Trustees appointed Gavin Henderson as the new National Ministry Leader. The Board is keen for the new National Ministry Leader to continue to have a team-based approach.

Management Remuneration

The NMT’s remuneration was determined by a sub-committee of the Board consisting of the Honorary Treasurer and GCI’s European Superintendent. Staff salaries were set accordingly. The salaries of staff were seen and approved by the Board of Trustees at the November 2019 Board meeting where the budget for 2020 was approved. GCI UK seeks to ensure that its staff are paid appropriately but not excessively.

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

GCI UK ends 2020 positively from a financial perspective. While our income was affected by Covid, many of the donations we receive are sent to the Church directly either by cheque or bank transfer. This meant that our finances were not significantly affected by the inability to take up physical offerings. Our income was below our original budget for the year, but it remained well above our expenditure for the year.

The Covid pandemic significantly reduced our expenditure for the year. As all of our congregations meet in hired halls, which were not available to be hired due to the pandemic, we saved significant costs of hall hire. Travel and mileage expenses were also heavily reduced as most of our congregations were unable to meet throughout much of 2020. Expenditure was also reduced by the cancellation of our summer camps and denominational conference in 2020. The two significant areas where our expenditure increased were legal expenses (due to advice relating to a significant overhaul and modernisation of the church’s Memorandum and Articles of Association) and computer costs.

The Church did not need to call upon any of its reserves in 2020.

Reserves Policy

The Board of Trustees has established that the level of reserves in cash or cash equivalent should be at least six months’ operating expenses. This level of reserve was maintained throughout 2020. Following Charity Commission guidance any pension scheme surplus is not reflected in the level of reserves, as they do not represent an immediately realisable asset.

At 31 December 2020 the total funds comprised:

Unrestricted £13,539 Restricted: Pension reserve £284,000 Other £2,390,263 ------------------------ £2,687,802 ==============

Investment Powers and Policy

GCI UK’s constitution allows the Board of Trustees to invest money not immediately required for its purposes in or upon such investments, securities or property as may be thought fit.

The Board of Trustees, having regard to the liquidity requirements of operating GCI UK and the reserves policy set out above, have operated a policy of keeping available funds in a ‘Targeted Return Fund’, with Barings Asset Management and Newton’s ‘Growth and Investment fund for charities’ to provide a revenue stream for the charity and diversify investments. The Charity did not invest directly in the tobacco industry.

Fundraising

Most of the income for the Church comes from donations as opposed to fundraising. While the Church encourages members to support the Church financially, the Church stresses that members should only give as they are able. In 2020, a regular member letter was sent out in a mailshot. Each mailshot contained a donation envelope in case recipients wanted to help support the Church financially. In addition, some of our congregations occasionally took up offerings in Church services before the pandemic hit and our congregations had to stop physical meetings.

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Church complies with the law as it applies to charities and fundraising and in 2020 did not use third party or professional fundraisers and received no complaints in relation to fundraising. Due to the very limited nature of the Church’s active fundraising, the Church has not signed up to the code of fundraising practice — however, the Board keeps its position under review and are keen that the Church follows best fundraising practices. No specific fundraising activities are currently planned for 2021.

Indigenous Income

The income of GCI UK is predominantly derived from donations from its congregational members in Great Britain and Eire with occasional contributions from non-members. As in previous years, full advantage has been taken of Gift Aid tax relief on eligible donations.

Pension Scheme

The Pension and Life Assurance Plan of the Worldwide Church of God has been closed to new members since 2004. The recent scheme funding valuation showed the scheme had moved to a deficit having previously been in surplus. The last active member of the scheme retired in 2015 leaving only deferred members as non-insured liabilities. A recovery plan has been agreed with the church agreeing to make 4 equal instalments in 2020, 2021, 2022, and 2023 to address the deficit. The first instalment was paid in 2020.

Fiscal Responsibility

The Board of Trustees requires that the executive of GCI UK operate a balanced budget, based on anticipated Income and Expenditure for the year. The Board had determined that any income in excess of expenditure can be assigned to projects suggested by the NMT to the Board of Trustees. Until then funds should be invested to provide additional revenue for the Church in the future.

Risk management and internal controls

The Trustees ensure that major risks to which GCI UK is exposed are reviewed and assessed and that systems are in place to mitigate those risks. The Trustees have agreed a risk management policy for which they have overall responsibility. Operational responsibility was delegated by the Trustees to the National Ministry Team and their staff. A risk register identifies risks and assigns specific actions and responsibilities for mitigating the risks. The risk management process is on-going. The Trustees consider that a major risk is one that has a high likelihood of occurring and would, if it occurred, have a severe impact on operational performance. The National Ministry Team reported regularly to the Board of Trustees on major risks and how they are being managed.

The Trustees expect all staff and volunteers when engaging in any activity on behalf of GCI UK to consider the risks posed and to act in accordance with the risk management policy and procedure. All increases to on-going or new activities are risk assessed prior to being introduced or undertaken.

The Trustees want to be risk alert but do not wish to be averse to taking reasonable risks as part of its strategy to achieve the objectives of GCI UK. All key policies within the organisation were regularly reviewed and updated as appropriate to reflect legislative changes and the latest developments in this area. In particular new Covid risk assessments were made for the Church office and for all congregations that resumed physical services after the pandemic hit in March 2020.

The Board has identified four major risks to the Church. The first is the age of its membership. The increasing age of our volunteers means that some of our congregations are having to meet less frequently, and the increasing age of our members also has an impact on our finances as our regular donors retire etc. Another

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

major risk to the Church is the Church’s pension scheme, especially in light of the Covid-19 pandemic and the uncertainty about the UK’s future relationship with the EU throughout much of 2020. The pension scheme was closed to new members in 2004, no longer has active members (only pensioners and deferred pensioners) — however, due to the size of the pension fund compared to our annual income, this remains a significant concern. The third risk facing the Charity involves the difficulty in returning to physical services after the prolonged absence caused by Covid. The leadership has encouraged local Zoom meetings and services to help combat this. Finally, the last risk facing the Church is the loss of members due to an upcoming change in the denomination’s worship calendar. The Church is committed to making this change in a loving and caring way to try to mitigate this risk.

Third party indemnity insurance

The Church pays third party liability insurance in respect of the Trustees and senior management.

PLANS FOR THE FUTURE

The Church Leadership remains committed to developing leaders and hopes to develop additional cohorts in 2021. This is a key area for the Church with the hope that retreats will be able to be offered to developing leaders in the second half of 2021. The coaching programme, that began in 2020, will continue with the aim that this will offer support to future leaders.

The plan was for our summer camp, SEP, to return to Morfa Bay in 2021 in Wales, but this has been cancelled due to the Coronavirus pandemic. We are hopeful that Adventure Camp, our camp for 7-13 year olds, will be able to go ahead in 2021 if Covid restrictions are not re-imposed.

Plans are being developed to help further support our congregations as they return to physical services and many of our congregations are investigating how to have hybrid Zoom services that allow those who wish to attend in person to do so while also being available for those who are unable to attend physically. The Church is also planning on making its YouTube national stream permanent in order to support our members and contacts who are not able to attend a local congregation.

A particular focus in 2021 will be on evangelism with the hope to develop new initiatives and tools to help support our members and contacts.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

The Charity does not hold any such funds on behalf of any other organisations.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees (who are also the directors of the Company for the purposes of company law) 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).

Company law requires the Trustees to prepare financial statements for each financial . Under company law the Trustees 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 Company and of its incoming resources and application

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION IKfERNATIONAL (A Company Limited by Guarnnteel TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 of resources, including its inc¢Nne and exFendibJre, for that porfod. In preparing these financial statements, the TN5tees are requir&J to.. 8elect suitable accounting pollues and then appty them consislenUy,' and observe the methods and prinCip￿S of the char￿e$ SORP IFRS 1021.. and make judgements arml accounting esb"mat8s thal are reasonable and p￿￿ent.. and state whether appl￿b￿ UK Accounting Standards IFRS 102) have b8en followed, subject to any materi81 departures disclosed and 8xFlained in the financial statements. and prepare the financial ststements on the going ￿nCern basb unless it is inapproprlate lo presume that the Company will conts'nue in busin86& The Trustees are responsible for keeping adequaie aC￿Unting records that are tsUff￿.ent lo Show and eX￿aIn the Company's transactions and di8ch)se with reasonable aciyjracy at any time the financial positson of the Company arKI ena￿8 them to ensure that the ffinancial statements comply with the COmpan￿S Act 2006. They are aL80 resKwislble for safeguardlng the avJets of the Company and hence lor tsklng re8sonable steps for the prevenkn'on and detection of fraud and other irregularitles DISCLOSURE OF INFORMATION TO AUDrroRS Ea¢h ofthe pernan8 who are Trustses at tho ttn￿ wPftn this Trustses. Report 16 approvod confirm that: So far aa that Trustee16 ￿Te, there18 no teknnt a￿lIt infLYmatlon of whlr the charltabl8 company's auditor5 are unaware, and That Tntstee has taken all the step8 that ought to have been taken as a Trustee In order lo be aware of any relevant audit Inform￿ and to eslablish that the charitabb company's auditors are aware of that inf0m￿tiOn. Thls report was approved by the Tn￿tee$ and signed ￿ their behaff by.. Davld Sllcox Chair of Trustees Dale.. Is181 Pa8e 11

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

Opinion

We have audited the financial statements of Worldwide Church of God (Also known as Grace Communion International) (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (CONTINUED)

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 Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

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WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (CONTINUED)

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement set out on pages 12 and 13, the Trustees (who are also the Directors of the Charity 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 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 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44 (1) (C) of the Charities and Trustees Investment (Scotland) Act 2005 and the Companies Act 2006, and report in accordance with regulations made within those Acts.

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

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

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 Auditors' Report.

Page 14

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) (CONTINUED)

Use of our report

This report is made solely to the Charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the Charity's Trustees as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regualtions 2006. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company, the charitable company's members as a body and the charitable company's Trustess, as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Blundell LLB FCA FCIE DChA (Senior Statutory Auditor)

for and on behalf of

MHA MacIntyre Hudson (Statutory Auditors) Leicester, United Kingdom

Date: 18 August 2021

MHA MacIntyre Hudson is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Page 15

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

Note
Income from:
Donations and legacies
2
Investments
3
Total income
Expenditure on:
Charitable activities
4
Governance costs
5
Total expenditure
Net (losses)/gains on investments
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial (losses)/gains on defined
benefit pension schemes
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-
-
13,539
-
13,539		 Unrestricted
funds
2020
£
588,598
46,571
635,169
370,651
41,936
412,587
(29,145)
193,437
(189,000)
4,437
2,669,826
4,437
2,674,263		 Total
funds
2020
£
588,598
46,571
635,169
370,651
41,936
412,587
(29,145)
193,437
(189,000)
4,437
2,683,365
4,437
2,687,802		 Total
funds
2019
£
664,973
53,038
718,011
630,001
30,137
660,138
147,483
205,356
201,000
406,356
2,277,009
406,356
2,683,365

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

The notes on pages 20 to 40 form part of these financial statements.

Page 16

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee) REGISTERED NUMBER: 00654913 (England & Wales)

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
19
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Defined benefit pension scheme asset
20
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
Unrestricted funds excluding pension asset
16
Pension reserve
16
Total unrestricted funds
16
Total funds		 108,284
731,212
839,496
(60,185)
2,390,263
284,000		 2020
£
199,511
1,424,980
1,624,491
779,311
2,403,802
284,000
2,687,802
13,539
2,674,263
2,687,802		 101,346
540,270
641,616
(59,479)
2,230,826
439,000		 As restated
2019
£
208,103
1,454,125
1,662,228
582,137
2,244,365
439,000
2,683,365
13,539
2,669,826
2,683,365

Page 17

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL) IA Company Llmlted by Guarant￿) REGISTERED NUMBER: 00654913 IEngland & Wales) BALANCE SHEET (CONTINUED) A8 AT 31 DECEMBER 2020 The financial statements were approved and authorlsed for Issue by the Trustees and Slgned on their behalf by.. Oavld Ilcox Chair of the Board of Trustees Date. i 5121 Ll The notes on pages 20 to 40 fomi part of these fln8ncial stalem8nts. Page 18

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Cash flows from operating activities
Net cash used in operating activities
18
Cash flows from investing activities
Dividends, interests and rents from investments
3
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
11
Net cash provided by investing 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
19
The notes on pages 20 to 40 form part of these financial statements		 2020
£
163,766
37,571
-
(10,395)
27,176
190,942
540,270
731,212		 As restated
2019
£
39,489
47,038
43
(3,477)
43,604
83,093
457,177
540,270

Page 19

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies

1.1 Basis of preparation of financial statements

Worldwide Church of God is an incorporated Charity registered with the Charity Commission for England and Wales registration number 311098, and with OSCR in Scotland registration number SC040008. The company is registered in the UK, registration number 00654913.

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), and the Companies Act 2006.

Worldwide Church of God (Also known as Grace Communion 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 Charity's functional and presentational currency is British Pound Sterling (£) and is rounded to the nearest pound (£).

The following principal accounting policies have been applied.

1.2 Company status

The Charity is a company limited by guarantee. The members of the Charity are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £7 per member of the Charity.

The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activities are included in the Trustees Report on page 3.

Page 20

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies (continued)

1.3 Income

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

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Collections and donations are accounted for when they are received.

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

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.

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.

1.4 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.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Direct costs are related support costs associated with preaching, pastoral care and the production and distribution of Charity literature. These are seperately disclosed in the Statement of Financial Activities as Charitable Activities.

Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and statutory requirements.

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

Page 21

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies (continued)

1.5 Fund accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity 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.

Historically the Charity has taught the principle of tithing (which is the donation of ten percent of one’s net income for the Charity’s unrestricted use). Most of the Charity revenue consists of such unrestricted donations. Donations are used for the publishing of Charity literature, assistance for members which are more in need, operating expenses of the annual Church festivals, ministerial activities and maintenance of buildings, as seems appropriate by Charity doctrine. Restricted funds comprise amounts donated for specific objectives. They are expended in furtherance of certain aspects of the Charity. In the Trustees’ opinion, at 31 December 2020, all donations received for specific purposes had been expended in accordance with, and in furtherance of, their intended purposes with the exception of of the restricted funds not yet utilised as detailed in note 16.

1.6 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

This consideration has taken into account the expected impact of Covid-19 on the Charity, as far as it can be determined, and the Trustees remain satisfied that the going concern principle remains appropriate.

1.7 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

Page 22

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies (continued)

1.8 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

1.9 Taxation

The Charity 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.

1.10 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

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, using the straight-line method.

Depreciation is provided on the following bases:

Freehold buildings - 4% on a straight-line basis
Motor vehicles - 25% on a straight-line basis
Fixture and fittings - 10% and 20% on a straight-line basis

Freehold land is not depreciated.

Profit on disposal of fixed assets are included in net expenditure for the year.

1.11 Investments

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. The Statement of Financial Activities includes the unrealised and realised gains and losses arising on revaluations and disposals throughout the year.

Investments held as fixed assets are shown at fair value.

Page 23

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies (continued)

1.12 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.

1.13 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.

1.14 Creditors and provisions

Creditors and provisions are recognised where the company 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.

1.15 Pensions

Defined Contribution

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

Defined Benefit

The Charity operates a defined benefit, fully insured pension scheme administered externally and the pension charge is based on a full actuarial valuation dated 21 May 2021 for the year ended 31 December 2020.

The scheme was closed to new entrants from 31 December 2002. Payments made to the funds are charged annually in these financial statements. The funds are actuarially valued on a regular basis by a qualified actuary, the rates of contributions payable being determined by the actuary. In the intervening years the actuary reviews the continuing appropriateness of the rates.

The amount charged to the Statement of Financial Activities is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations to the cost.

Any difference between amounts charged to the Statement of Financial Activities and contributions paid to the independent pension scheme is shown as a liability or asset at the balance sheet date. Further information on pension costs is shown in note 20.

A pension scheme asset is recognised in the Balance Sheet under FRS 102 to the extent that the Charity is able to recover the surplus through refunds or through a reduction in future contributions to the scheme.

1.16 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.

Page 24

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

1. Accounting policies (continued)

1.17 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

1) Defined benefit pension schemes valuation

The FRS 102 valuation for the charitable company's Defined Benefit Pension Schemes is recognised in the Balance Sheet as an asset. This is the present value of the defined benefit obligation at the balance sheet date less the fair value of the plan assets. This is sensitive to change in the assumptions made by the actuaries who have been appointed to value the schemes. See note 20 for the assumptions made for the pension commitments, and note 1.15 for the pensions accounting policies.

2) Depreciation of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. See note 11 for the carrying amount of the tangible fixed assets and note 1.10 for the useful economic lives for each class of assets.

2. Donations and legacies

Unrestricted
funds
2020
£
Donations
513,005
Legacies
-
Gift aid
75,593
Total 2020
588,598		 Total
funds
2020
£
513,005
-
75,593
588,598

Page 25

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

2. Donations and legacies (continued)

Unrestricted
funds
2019
£
Donations
567,635
Legacies
18,468
Gift aid
78,870
Total 2019
664,973
Investment income
Unrestricted
funds
2020
£
Investment income
37,571
Pension income (note 10)
9,000
Total 2020
46,571
Unrestricted
funds
2019
£
Investment income
47,038
Pension income (note 10)
6,000
Total 2019
53,038		 Total
funds
2019
£
567,635
18,468
78,870
664,973
Total
funds
2020
£
37,571
9,000
46,571
Total
funds
2019
£
47,038
6,000
53,038

3. Investment income

Page 26

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

4. Charitable activities

Unrestricted
funds
2020
£
Mileage and travel
7,978
Insurance
5,842
Other expenses
87,961
General assistance
8,285
Depreciation
18,987
Summer Educational Programme
7,638
Hall hire and rent
27,201
Wages and salaries
185,097
National insurance
15,437
Pension cost
6,225
Total 2020
370,651
Unrestricted
funds
2019
£
Mileage and travel
83,661
Insurance
10,939
Other expenses
93,535
General assistance
41,977
Depreciation
18,722
Summer Educational Programme
61,914
Hall hire and rent
101,693
Profit on disposal
(43)
Wages and salaries
196,300
National insurance
15,442
Pension cost
5,861
Total 2019
630,001		 Total
funds
2020
£
7,978
5,842
87,961
8,285
18,987
7,638
27,201
185,097
15,437
6,225
370,651
Total
funds
2019
£
83,661
10,939
93,535
41,977
18,722
61,914
101,693
(43)
196,300
15,442
5,861
630,001

Page 27

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

5. Governance costs

Unrestricted
funds
2020
£
Auditors' remuneration
17,569
Professional fees
24,075
Board expenses
292
Total 2020
41,936
Unrestricted
funds
2019
£
Auditors' remuneration
19,802
Professional fees
7,176
Board expenses
3,159
Total 2019
30,137
Net income/(expenditure)
This is stated after charging:
2020
£
Depreciation of tangible fixed assets
18,987
Operating lease rentals
1,330
Profit on disposal of tangible fixed assets
-		 Total
funds
2020
£
17,569
24,075
292
41,936
Total
funds
2019
£
19,802
7,176
3,159
30,137
2019
£
18,722
1,060
(43)

6. Net income/(expenditure)

7. Auditors' remuneration

The Auditor's remuneration comprises audit fees of £17,569 (2019: £19,802) and fees for other non-audit services of £3,229 (2019: £450). This includes fees for the Charity and its pension scheme.

Page 28

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

8. Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Pension costs (note 20)		 2020
£
185,097
15,437
6,225
206,759		 2019
£
196,300
15,442
5,861
217,603

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

Persons employed
Stipendiary persons employed		 2020
No.
8
6
14		 2019
No.
8
8
16

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

The Key Management Personnel of the Charity are deemed to be those having authority and responsibility, delegated to them by the Trustees, for planning, directing and controlling the activities of the Charity. The Key Management Personnel of the Charity comprise the National Ministry Team. The total employee benefits of the Key Management Personnel of the Charity (including employer national insurance and employer pension) amounted to £126,015 (2019: £119,037).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019: £Nil).

No retirement benefits were accruing to Trustees in respect of defined benefit pension schemes during the current and previous year.

No benefits in kind were received by Trustees during the current and previous year.

1 Trustee received reimbursement of expenses amounting to £67 (2019: 5 Trustees received £1,815).

Other related party transactions involving the Trustees are set out in note 22.

Page 29

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

10. Pension finance income

Interest income on pension scheme assets
Interest on pension scheme liabilities		 2020
£
196,000
(187,000)
9,000		 2019
£
275,000
(269,000)
6,000

11. Tangible fixed assets

Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Freehold
land and
buildings
£
359,256
-
359,256
180,178
11,598
191,776
167,480
179,078		 Motor
vehicles
£
4,714
-
4,714
4,714
-
4,714
-
-		 Fixtures and
fittings
£
232,188
10,395
242,583
203,163
7,389
210,552
32,031
29,025		 Total
£
596,158
10,395
606,553
388,055
18,987
407,042
199,511
208,103

Freehold land and buildings includes freehold land, the value of which is estimated by the Trustees as being £69,324 (2019: £69,324), which has not been depreciated.

The most recent valuation on 15 May 2018 indicated that the value of the property is £305,000.

Page 30

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

12. Fixed asset investments

Cost or valuation
At 1 January 2020 (as previously stated)
Prior year adjustment (see note 15)
At 1 January 2020 (as restated)
Revaluations
At 31 December 2020		 Listed
investments
£
-
1,454,125
1,454,125
(29,145)
1,424,980

The investments are invested in a number of investment funds including Clerical Medical Bonds, Canada Life Bonds, Newton Growth Fund and Barings Investment.

13. Debtors

VAT repayable
Other debtors
Prepayments and accrued income		 2020
£
7,968
23,708
76,608
108,284		 2019
£
7,715
11,280
82,351
101,346

Page 31

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

14. Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals		 2020
£
24,563
10,407
25,215
60,185		 2019
£
14,587
10,407
34,485
59,479

15. Prior year adjustments

It has been identified that investment funds held have always been intentionally held by the Charity on a long term basis and not on a current basis. Therefore a prior year adjustment has been made to move the investments totalling £1,454,125 held on the Balance Sheet from current asset investments to fixed asset investments. There is no impact on the Statement of Financial Activities.

16. Statement of funds

Statement of funds - current year

Unrestricted funds
Charitable fund
Pension reserve (note 20)
Restricted funds
Restricted building fund
Restricted Africa fund
Total of funds		 Balance at 1
January
2020
£
2,230,826
439,000
2,669,826
12,539
1,000
13,539
2,683,365		 Income
£
626,169
9,000
635,169
-
-
-
635,169		 Resources
expended
£
(437,587)
25,000
(412,587)
-
-
-
(412,587)		 Gains/
(Losses)
£
(29,145)
(189,000)
(218,145)
-
-
-
(218,145)		 Balance at
31
December
2020
£
2,390,263
284,000
2,674,263
12,539
1,000
13,539
2,687,802

Page 32

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

16. Statement of funds (continued)

Unrestricted funds

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

Restricted funds

The restricted building fund represents the balance of unspent funds received towards property related expenditure.

The restricted Africa fund is funded by the Estate of I King and is to be used for work in Africa.

Page 33

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Charitable fund
Pension reserve (note 20)
Restricted funds
Restricted building fund
Restricted Africa fund
Total of funds		 Balance at
1 January
2019
£
2,031,470
232,000
2,263,470
12,539
1,000
13,539
2,277,009		 Income
£
712,011
6,000
718,011
-
-
-
718,011		 Resources
expended
£
(660,138)
-
(660,138)
-
-
-
(660,138)		 Gains/
(Losses)
£
147,483
201,000
348,483
-
-
-
348,483		 Balance at
31
December
2019
£
2,230,826
439,000
2,669,826
12,539
1,000
13,539
2,683,365

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Pension reserve
Total 2020		 Restricted
funds
2020
Unrestricted
funds
2020
£
£
-
199,511
-
1,424,980
13,539
825,957
-
(60,185)
-
284,000
13,539
2,674,263		 Total
funds
2020
£
199,511
1,424,980
839,496
(60,185)
284,000
2,687,802

Page 34

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Pension reserve
Total 2019		 Restricted
funds
2019 As
restated
£
-
-
13,539
-
-
13,539		 Unrestricted
funds
2019 As
restated
£
208,103
1,454,125
628,077
(59,479)
439,000
2,669,826		 Total
funds
2019 As
restated
£
208,103
1,454,125
641,616
(59,479)
439,000
2,683,365

18. 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
Losses/(gains) on investments
Interest and rents from investments
Pension scheme finance income
(Increase)/decrease in debtors
Increase in creditors
Profit on sale of tangible fixed assets
Pension scheme contributions by the employer
Net cash provided by operating activities		 2020
£
193,437
18,987
29,145
(37,571)
(9,000)
(6,938)
706
-
(25,000)
163,766		 2019
£
205,356
18,722
(147,483)
(47,038)
(6,000)
8,137
7,838
(43)
-
39,489

Page 35

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents
Cash at bank and in hand		 At 1
January
2020 As
restated
£
540,270
540,270		 2020
£
731,212
731,212
Cash flows
£
190,942
-
190,942		 As restated
2019
£
540,270
540,270
At 31
December
2020
£
731,212
-
731,212

20. Pension commitments

Defined contribution pension scheme

The Charity is part of the NEST defined contribution pension scheme.

Contributions to the pension scheme recognised as an expense in the year was £6,225 (2019: £5,861).

The defined contribution asset is allocated to unrestricted funds.

Defined benefit group stakeholder pension scheme

The Charity operates a defined benefit group stakeholder pension scheme for its employees, which is funded.

The pension cost and asset for the year ending 31 December 2020 are based on the advice of a professionally qualified actuary. The most recent formal valuation is 21 May 2021.

The scheme was closed to new entrants with effect from 31 December 2002.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2020 2019
% %
Discount rate 1.30 2.00
Future pension increases 2.40 2.30
Consumer price inflation 2.40 2.30

Page 36

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

20. Pension commitments (continued)

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

2020 2019
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.2 21.2
- at 65 for a male aged 45 now 22.9 22.9
- for a female aged 65 now 23.1 23.1
- at 65 for a female aged 45 now 25.0 24.9

The Charity's share of the assets in the scheme was:

Equities (including property)
Bonds
Insured pensions
Cash
Total fair value of assets		 Fair value at
31
December
2020
£
1,210,000
572,000
8,206,000
211,000
10,199,000		 Fair value at
31
December
2019
£
1,182,000
573,000
8,045,000
262,000
10,062,000

The actual return on scheme assets was £657,000 (2019 : £ 131,000) .

The amounts recognised in the Statement of Financial Activities are as follows:

Interest income
Interest cost
Total amount recognised in the Statement of Financial Activities		 2020
£
(196,000)
187,000
(9,000)		 2019
£
(275,000)
269,000
(6,000)

Page 37

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

20. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Actuarial losses/(gains)
Benefits paid
Closing defined benefit obligation
Changes in the fair value of scheme assets were as follows:
Opening fair value of scheme assets
Interest income
Actuarial gains/(losses)
Benefits paid
Contributions by the employer
Closing fair value of scheme assets		 2020
£
9,623,000
187,000
650,000
(545,000)
9,915,000
2020
£
10,062,000
196,000
461,000
(545,000)
25,000
10,199,000		 2019
£
10,223,000
269,000
(345,000)
(524,000)
9,623,000
2019
£
10,455,000
275,000
(144,000)
(524,000)
-
10,062,000

Page 38

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

20. Pension commitments (continued)

Net Actuarial losses in the year amounted to £189,000 (2019: gains £201,000).

The Charity expects to contribute £24,900 to its Defined Benefit Pension Scheme in 2021.

Amounts for the current and previous year are as follows:

Defined benefit pension schemes

Defined benefit obligation
Scheme assets
Surplus
Experience adjustments on scheme liabilities
Experience adjustments on scheme assets		 2020
£
(9,915,000)
10,199,000
284,000
(650,000)
461,000
(189,000)		 2019
£
(9,623,000)
10,062,000
439,000
345,000
(144,000)
201,000

21. Operating lease commitments

At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2020
£
1,330
270
1,600		 2019
£
1,330
1,600
2,930

22. Related party transactions

No related party transactions took place in the year ended 31 December 2020, other than those disclosed in note 9.

23. Controlling party

The Charity is ultimately controlled by the Board of Trustees.

Page 39

WORLDWIDE CHURCH OF GOD (ALSO KNOWN AS GRACE COMMUNION INTERNATIONAL)

(A Company Limited by Guarantee)

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

24. Company limited by guarantee

The Charity is a Company limited by guarantee and does not have share capital.

Page 40