R•glst•rod numb•r: 00654913 (England and Walts} Charity nurnber: 311098 (England and Wale$) SC040008 (Scotland) GRACE COMMUNION INTERNATIONAL IA Company Umft•d by Guardntee) TRUSTEES. REPORT AND FINANCIAL STATEIIIENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Iiiilliiiii *ACBSM5NI" 01109r2023 COMPANIES HOUSE GRACE COMMUNION INTERNATIONAL (A Company L5mlted by Guarantee) coTr￿ENTs Page R•f•r•nce and Admlnl$tr•tl¥e D¢tsil$ Trustees. Rèport 3-15 Independent Auditors, Report 16-19 Statement of Flnanelal A¢tivities 20 Balanc• Sh•et 21-22 Statement ¢rf Cash Flows 23 Notes to the Financlal Statements 24-45 GRACE COMMUNION INTERNATIONAL (A Company Llmhed by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENOED 31 DECEMBER 2022 REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees James Lambu Ray Walker Gordon Bro4*m Unda Haffryd Simon Wil￿arn5 Maureen Watson Hilary Buck James Mcfvor David Silcox (Chairl IVKe£hair) Retired 20 AwJust 2022 Natlonal Mlnlstry L•ad•r Gavin Henderson R•glstered Char5ty Nan Grace Communton Internat￿ Mam•$ Also Known By Worlthde ChLwch of God Summer Educational Programme {Summer (amp onty) Registered Office and Operalional Addrnss 9 The Point Rockingham Road Markel Harboftyjgh Ltric*stershire LE16 70U Company Reglstered Number 00654913 (England & Wal&$) Charity R¢gi$tgred Number 311Q98 (England & Wales) SC040008 (Scouand) Page 1 GRACE COMMUNION INTERNATIONAL IA Company L5mlted by Guaranteel REFERENCE AND ADMINISTRATIVE DEfAILS IContlnu•d) FOR THE Y&4R ENDED 31 DECEMBER 2022 Independent Auditor and Statutory Audilors MHA Chartered A￿ountants 11 hrterus Court Meridian BUS￿￿SS Park Le￿￿ster LE19 1RJ Bankers Barclays Bank P 20 High Sl arket Harborough LE16 7NR Solicitors Edward Corbnor Solicitors 10 The Poinl Market Harb￿Ough Letestefshire LE16 7QU P•Je 2 GRACE COMMUNION INTERNATIONAL (A C¢)mpany Limlted by Guarantee) TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Th¢ Trustees Iwh) •re af50 the diredots of Charity for the purposes ofthe Companie5 Act) pr￿ent I￿1r Annual Rep￿t. together with thè audited f￿￿nCIal statements of Grace Communion IntemalTonal rGCI Ulf, ￿e., the CharitatrAe Company, the Church. the C￿rtY) for the year ended 31 December 2022. The Truslees confirm thal the Ann￿￿ Reportand finan(ial statements ofthe Charitable Company compty vmh current stalutory requwements, Ihe requirements of the Chwiiable CompanYs govemiThg tjocurnent. the provistons of the Stalement of Reconmwnded Practke {SORPI "Accounting and Reporting by CharitEs' and Financial Reporlin9 Standard appr￿able in the UK and Republic ol Ireland IFRS 102)- Ichariiies SORP IFRS 1021), a￿1 the CompaniES Act 2006. The Charity qudffies as small under S383 of Ihe Crynpanies Ad 2006. A Strategi¢ Report und•r th• Companies Act 2006 (Strategic Report and OirectOTS' R￿F￿rtI Regulalxins 2013 Is not required. OBJECTNES AND ACTNMES Vlslon and Mlsslon Stat•m• The mission Of thé Charity Ss to proclaim the good n**5 of Jesus Cl¥i5tW￿r￿￿ arKI W￿r*¥￿ il ¢an. W8 tske carn of Ihose whom ￿ calls Nito our part of the body of hi5 Churth by inspirin9 and training them to serve and k)ve others. reflecting the way in which Jesus Christ l)ves humanty. Ttsjs, we seek to create a posiiive and accountable spmtual environment in TAhth the Church loves aTrJ shares Ihe Gospel of Jesus Cfvist kn the UK. in Ihe Republic of Ireland. and beyond. To help us achieve t￿S VISN￿ of 'Fkallhy Church. to fulfi mission strte￿nt of 'LIVi￿ and Sharing ihe Gospef, the Churth has the foNowng fwr avenues offoujs: Team*ased. Pastor Led Avenue l always pray with ￿ btrc8￿ of your partn&rs1￿P In the gosp81 from the fNst day untl IPhilippians 1:45 NIVUKI "Then Peter stood up wilh the Etthn. r¥wl his voice and add￿Ssed the crowd" (Acts 2:14 NIWK} PASTOR GCI UK believes Ihat il 15 e55ential thai C￿jrth leadership is learn-based. To ¥chiov¢ Ihis. tgad•rs GCI UK {both on a national and I￿al level} are encouraged lo pradise the 4 E's.. Engage. Equ￿. Empower and Encourage. This means that our teadets seek to engage *ith th¢ membeF5hlp of th• Church os they rook to recoanistt and recwit new volunteers and pottntsal leaders. Thèse vofuntetrs arè Ihtn Èquipped by thè leadership by inve5tin9 time xrkdlor resources in them. so that they develop in their role and In tum multiply Iheir skills within the corgre981i¢xh. 1Olhefe leadership qualilie5 are paentffied. potential leaders ¢an then be empowered by creating S￿ for Ihem lo actively serve in k&JeTshy and commis5ionlng them for the role. Finally. Ihese vduntews are encouraged by the leadership on an onsYJirrfJ basis. thus aifimln9 Iheir su51abl￿ for Ihe role recognising Ihw conlrit¥Jtion to the Chwch. Pa9e 3 GRACE COMMUNION INTERNATIONAL {A Company Limited by Guarant•el TRUSTEES REPORT {Continuedl FOR THE YEAR ENDED 31 OECEMBER 2022 Hope Aveny* '.When they saw him, they *￿IshIPped hwn" (Matthew 28.17 NIVUK} "Evèry day they conbnued to meet logèther in the temple courls... waisin9 God and en￿w"n9 the favtyJr of all the pewe.. IA¢t$ 2:4￿7 NIVUK} HOPE Worship Services are a key part of GCI UK'S aGlivities, and our aKn is Ihat al our worship services are cenlred on Jesus Christ and that they are inspiring. brirMJirwJ hope lo all those who altend. This involves intentional preparation lor ¢Jur weekty services ar¥J a focus on being an inclusive gaihering that wekom&s people of al ages, etth¢it*s. and backgi(NJnds. Falth Av•nue "knd leaching Ihern to obey everyth￿9 1 have commanded you." (Matthew 28.20 NNUKI hey devoted theff￿fves to the aF¥)Sttes' teachirwj and to fellowship, to breaking of b￿ad and to Pfayer... They broke bre*1 in Iheir homes and ate together with glad and s¥icere hearts. (Acls 2..42. 46 NIVUKI FAITH Discipleship is a key partof GCI VK'S aclivilies. The ChLtrch is cornmitted lo wowding oppyluTrii¢es for people to strengthen their faith and to foll￿ in the foolsleps of Jesus Christ. This is done through Church events Iboth on a na(ional and congregational level) that provide a chance for people to deepen Iheir fe1aliL￿sh1P with God anrj with or* another. as well as by providing mithyèek èvents such as Bible studies and prayer meetings. 'Therefore go and make disciples of all nations. baptising thèm in the Tra[r￿ of Fathef ant101 the Son and of Ihe Hoty SFinf IM¥tth*w 28.19 NIVUKI "And the L(Yd a(kJed to thw number daity Ihose who were being saved.. {Acts 2..47 NIVUKI LOVE GCI UK beI￿VeS thata Tho￿thY Church" is one Ihat Is sho¥%7ng the hwe of JesLts Chrisl lo Ihe wortd. This means that one ol the key objectives of Church Is engaging both the general publiG and local community near where congregations mèèL an(5 proclaiming to them Ihe Gospel of Jesus Chti5t through l)oth ourwords and our actyons. GRACE COMMUNION INTERNATK)NAL (A Company Lkn5ted by Guarantee) TRUSTEES REPORT {Conttrnuedl FOR THE YEAR ENDED 31 DECEIABER 2022 Maln Adivlti•s As a Church tsjf primary acbvity is to ￿k1 rwrfar l%*ekfy) Cl￿rth servkes. These seThices are coen to everyone. includin9 the public. who are welm to join Sn and partidpate with us in worshlp and to hear 8 message proclaiffjing Jesus Christ and hTrs Kin9dom. thtsugh w¢ rese￿ Ihe ri9ht to refvse entry where and when n￿eSsary. We have 19 c(ryregalKJn5 or fell¢Av5hip 9roups th?1 meet weekty. and a fvrther 6 Ihat meet on a less freqvent basis thwghout the UK and IrdatKI. Our Trn these n9regations provNJe a safe envwonmenl peop* lo ¢e￿brate Ihe ch￿￿h.¥ belitts. Experienced IrKal pastoral worters supwt for peo* through btblical counseuing, and. in the case of ordained ministry. tlwough performlng ministerial duties suth as wedding5. funerals, and offering general assistarKe vhwe possible. or ￿ere needs have been expressed. Ministers and approved Pastor￿ workws are often asked togive bibkal CoUr￿e4 and comfortto the sick and lernwlly ill. and to bereaved relalsves and fr*nds. Often $uch services are w0￿ded to peopbe with little or no prior Connectic￿ to the Churth. arKI are provided free ofcharye. We eommunicate re9ularty to our membtts al￿ Chwdi contacts using Various different types of ¢ommuntcation media. A member Jetter was sent oui by Fwxt every month in 2022. In addiiion. every olher month an In4￿uSe produced mawne caled Besong was senl out in addition to the member letter. The Belong magazine helps to encourage ourexisling members by developn9 theirtsith through loplcal articles. and updates abtyJl our curyent projects and acttvities. There is no charge for the magazine or the member letter that membws recer¥e. f**hich has a cyculation of pjst urKler 700 members. The magazine is also available on website. We also FffcKluced a dalty Bible study seftes in 2022, c3fied Wrffd of Lrfe vknich 15 published on OUT website wordoffife.gracecom.ch¢Jrch. The studies are freety avalabkn, and we 8150 offer #n email subscription alk)wng members and contacts to receTrvg 5tLty each day in tl*ir inbox. Th? project has a stgnÉfi¢anl proporbon of intematk￿al readers. Several of ¢MK c￿regatIonS atso offer onlin o¢¢e$s to Chur¢h seThi¢e$ usirwJ both Zotyn 8nd Facebook Live. Additionally. we offer weekly sermorts natxjnalty via wr YouTube channel.. https.'Ilww.youlube.comlclGCIUKandlreland. as wel as offerin9 bye-str￿Me￿ 8it49 $tudi?$ every fortnighl. All our online activibes. tM)th at a nabonal and congregational level. can also be acce55ed v¢a Jr website *••A¥.gracocLNn.thurch. The Church also puis on conferen(es. IKrtiJs celebratim events and organise5 $ummtrr c#mp$ for children and teenagers. In 2022. celebratitm events were held Tn Larbert. Galway, Hemel Hempstead, 8ridlington and Paignton. and a conference was hebj in Northampton. Sn addit*)n. a tsvelvfrday summer ¢amp for teenager5. calf¢d SEP. wa$ held n Morfa 8ay and a thre￿aY aciNty camp for younger dren. ¢alle(f Adveniure Camp. was held in Keltering. GCI UK a member organisalK)n ol Ihe Evangekal NJliance and many of ils cowKJiegati0n$ or? members of the Churches Togelher in their respethe *ea5. GCI UK keen on wcrtln9 with other Churches al￿ Lyganisations to further its missiDn of Lmng 8TrJ Sharing the Gtsspel. Volunletrs We are greatly indebted lo all our volunteers ts thelr dedl¢abon. time. and sklls.. In parUcuEar. lo the over 100 voluntarypastoral workers. wilhoulwhom the Church and Charity woubj not ￿ able lo P￿de its sèrvices. Page S GRACE COhlMUNION INTERNATIOMAL IA Company Llm5ted by Guarantee) TRUSTEES REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022 We are also very gfatelul lor Ihose who helped wnte. promte. and produce ￿r mayazine Belong, and atso for Ihose involved in our daily Bibl¢ Study series Word of Life. Finally. wa are vèry appreciative of those wh) wcrfk with our Y¢)Ulh. particularty since this ywwas the rifst tirne since 2019 Ihal we were able to hokj SEP. Publ1¢ 8?n•fit GCI UK. as outliied above, carrie5 num¥ous activibes to athiève Is aims artd titiectives. The TNslees consider that these activitie5 provide a pubh"c bentffii both in terms of the redemptive work of the Church, a5 well as Ihe social oulTeaGh the Churth eThJages in on regional. national. and intemational I￿e1$. They have Gon&dered Ihe guidance issued by trM)th the Charity CommissK)n and the Office of the Scottish Chafity Regulatof on Public Benefil in this regard. In particular Ihe Trustees would Iil(e lo empha515e the Clwrth'5 desire to be inclusive. where we stFive to make the services and events Ihat we run open to all. and endeav¢JJr nol to present a finanual barrier lo atlendance participalion. OLrr online services have been particU￿rty helpful in helping our seryices be mre inclusive ol ih05e who are unat￿e to altend due to health, not beiThJ near ￿e of wr coryJregakn"ons, or other reasons. Some nolable exarTrple5 of how the Church has organsse(l acbwties in the wblic benefit incknle the Sosban Soup KitC￿n in Llane51i, whth provtdes lood land other essenb.alsl every Sunday as part of ihe congregations weekty service. and to make il a Christmas Day ILmch that was held in Market Hart¥)rough. for those in the community who did not have plans on Christmas Day. In addilion to these. many of ourcorwJiegatKJns collectfL*Jd donalims to give to Ictal foodbanks. and organised celebrations throughwt ihe year thal We￿ o￿n lo tr* le.g. specsal evenls for the Qu••n's Platinum Jubilee). ACHIEVEMENTS AND PERFORMANCE AChi￿•m*nts and Performènce Summary The global Coronavirus pandemt¢ was sb"Il havffj a signffi¢ant Knpa¢t M our Church in 2022. particularly at Ihe staTI of the year. We are FAeased thai during the course of the year a number ol our congrt9ats.ons wwè able to hdd Ihwr first iTrpeT50n se￿¢*$ since March 2020. Thè Church has continued to providè national services via YouTube and Zoom. For Ihose without intemèt ￿¢•$$. a number Ol our Congregat￿n$ arranged lo send out CD5 of serTrons. Fortnighlty 8iblè studies took place Y¢wTube, T*thich irtluded a 8iblB Study seriès callgj "We Believe" that cover5 Ihe cjxé bel￿S ofthe chr￿lian failh. Thi5 is a Nvo part serie5 and a free workLx>d( for part 1 had been di51ribuied to our mefflbers and contscts in 2021. so Ihey could fomow along and make their own rntes. In October 2022. we senl oul ts follow up workbook lor part 2 for Ihe 'We Believe. series lo our members contacts. The Church also sponsored several of our volunteers and èmployees in Ihè area of theological education with Grace Communion Seminary. our accredited d*nominatb)nal 5Eminary in thè USA Iwww.gcs.edul. and Ambassador Colkge ot Christian Mini5ty. our (lenominabonal seminary in Australia Iwww.ambasGoI.orgl. Pag• 6 GRACE COMMUNION INTERNATIONAL IA Company Llmltèd by Guarantee) TRUSTEES REPORT {Continuedl FOR THE YEAR ENOED 31 DECEMBER 2022 In 2022. we wèrè ablo to hold our summer camp tr te¢nagets. ¢akd SEP. lor Ihe ffirsl limè $in¢e 2019 lit was ¢an¢elled in 2020 and 2021 due to the Cwnavirus pandemi¢l. The camp was held in Morfa Bay in Waks and rnn for days. We were pteased lo be able to wefcome 57 campers. 10 min campers and 24 stxff. The camp fealured a number of activilie5 ¥Kluding daityworship. Chri$ti8n livng. leatherworking. a ceilidh. paddle-boarding. a mud assaum course. cavw aThJ coasteering. We were also pleased lo be ab￿ to go ahead t*thh tyJr SUb)mer camp for chiklren aged 7-13, called Adveniure Camp. Adventure camp wele holdourfirsl in￿ers￿ dencrfnHwtionalconference $inrx 2019. The conference was he￿ in N¢Xthamplon on the 18-19 of June. The a9erth for the Conferencé wa5 Wealthy Church. ¥nd èxptorèd how we can ensure the practice ol our ¢ongregations m¥tchès theology. Thè conference featured Or l>eg V4I1iams. the GCI HQ derv)minational President as the guest speakerand aitendees gol a free Copy of the book"Before YrAJ Share Your Faith: five way5 to be ev8n9elFSm ￿ad by Matt SmethursL The Church also ¢c￿lInUed to rfs Lrfe Club prc¥e¢t, whKh teaches speakin9 skins lo all age groups. Geoff Sole, who wns the proiect, continues to advise GCI congre9alh)ns around the world with respect lo njnning Lrfe Clubs, and has fxil¢tated getting the Lrfe Chjb manual transbled into a nLJrnber of languages. In 2022 regukr Intemaliinal Lrfe Club5 took place on Zoom. and fealured speakers frorn Africa, Europe and Ncrth Amwica. Sadly in 2022. the ¢k¢i5*)n was mode to dose or ¢¢mkn• a number of ow $mal•r f•llrAvship groups fdlowin9 the Cwonaviru5 parKlemia Thi5 was prim*ily a re5uII of the dimiThshed sbze of the CO￿legatIOns. Where we have had lo dose a congregatwjn. we have en¢ourn9ed membw5 #nd contacts there lo access our online resowces. and stsy on ow rnailirg lists. It ts our s￿￿ere hope that at some poinl in the future *ryl be able to Te-open coryregalKvis in these a￿5. AdmInIst￿tIon and Mana9ement In 2022, the employmenl of Rachel MontgoThwy. who had been employed as C¢)mmuntolion Coordinator for the Church came to an end. We woukl hke to thar* Rachel Montyrmw for tho work she did lor the Church rn Iht limtr sineè her employment started in Octcthr 2020. Page 7 GRACE COMMUNION INTERNATIONAL IA Company Limited by Guarantee) TRUSTEES REPORT Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Ourin9 the year, the Management and Board of Trustees deall wth a significant number of complaints that were raised by tsvo members ofthe Chyrth. While the grievance was upheld, the mxnagemenl and the Board of Trustees began a revivw in the second half of Ihe year on how the process was handled. and what lessons could be leamed for the future. As partof this tKKess. the Board ofTnJstees is in the process ol activety feviewing all of its pokies. The Re9h)nal Paslc¢s po&tionfor Wa￿. Cenlral and Northem En9Land. ¢urrenfyoc£Lyed byAnth￿Y Dady. was renewed for an adthti¢)nal yèar m August 2022 before being made pemanent in January 2023. STRUCTURE. GOVERMAP4CE AND MANAGEMENT Nam• The registered narne of Ihe Charity was thanged from Worldwide Church of God lo GraGe Communion Int•rnabonal on the 29 June 2022. Grace Cgmmunion InternalK)nal had p￿¥1￿$￿ been used as a Iradm9 name by the Charily since 2CKJ9 (when the name began to tse used internalionalty by the denomina¢ionl. Constitulio Grace communi￿ International wa5 inGorporale¢J as a Company Smited by guJr8nlee in 1960 an registered as a Charity in 1963. The Charity is governed by MKles DI A5sorAation that were last updated on the 20 August 2022. Thi5 was an update made to relkct the new name of the Charrty following the narne being registered with bolh Companies House aThJ thè Charity Commission. Method ot Appolntm•nt or eleetlon ot Trust••s and Training PofJ¢i•s As set out in Ihe Articles ol Assoaation there are a minirnum offive Twslee5 and a maximum of efeven. As of 31 Decembei 2022 the￿ were eNJht Trusiees. Trustees are elected in arxordance wth the Articles ol Assoualion for a term of three yèats an*J may serve, if w elected, fL¥ Ihree terms, before norrnalty being required to step down for at ￿8$t onè year. Trustses are required lo abmle by Ihe Code of Ethics Iof Elders. and Ihe Grace Cornmunion International Statemenl ol as published by Grace Communion Inlemèb"oftal USA IGCI HQI basetl in Charkntte. USA. The Board ol TnFslees con&¢Jers Diversity. Equality and Indusion whèn selecb.ng Tnjstèes. and aims lo havè a Board that not only has a good mtx of skills and expeiience, but also ￿fleets tt)e divew ol our members and the peopk we are serving as è Chafity in thè United Kingdom and Irèland. I neWTrU51￿ are g￿en ccyes ofthe IAemLThdum Arfides olAs$wation. Indu¢lK)n is provided in the form of ropie5 of previ¢us minute5 and cop￿$ of the latest Governan￿ & Leadership rnagazin?, and Charity Comrnission New5. Each new Trustee is also provideLI with a copy of Ihe gui¢Jan¢e advice lor new Trustee5 i$5ued by the charity CommissiDn. and Office of the Scottish Charity Regulator. Twsiees are also kepl up lo dale wilh the avaijabih'ty of courseslseminars on Trustees. reSponS￿lI￿tieS lfvnded ty the Charity). In 2022. ttrne Trustees attèTh1ed trustee trairmng courses. Trnste¢ Benefits GCI UK does not give remUnera1v￿ to T￿￿1￿¢S lor iheir rde a5 Trustee. It doe5. help covgr the CDsts ol their travel and the tr￿nIng requwed ￿ reccThrnende(I for their duiies as Trustee$. Pwe8 GRACE COMMUNION INTERNATIONAL IA Company Llmtted by Guarantè•) TRUSTEES REPORT Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 As permitted by thè Arlicl8s of Assooation. Èach Twvstee has the benefit of an indemrnty. which is a qualrfying thir&paty intsmruty as deffir￿￿ by Section 234 of the Companies kt 2C*)6. Trnst•• Chang•s in 2022 In August 2021. the Board of Trustees ag￿ed to exiend the tewm of DaTrrid Silcox for an additi￿al year to allow to help finalise the overhaul lo the Church's Article5 Of Associalion (in which he had l)een heavily Invotve¢J). Dufing thi5 time DavKI Sijcox 5eNed as Chair ol the charity. Jame5 Lambu wa5 appointe¢J Chair when Dawd Silcox slepped dvlm as a Tnjstee in ALWI 2022. The Board is greatly appreciative of David Silcox's Contrit￿1￿ lo the Charity V4er his bme as a Tw5t&e and in part￿J)lar for hi$ s9rvir¢ 8$ lh¢ Chair of the Board rA TI￿51ee￿. Organi5ational Structur• and OKblon Makln9 GCI UK is governed by a Board of TnJ5tees, 7wIKh rneets al least fow t¥￿$ a yèar to: a9r¢e the polcy ofthe Charity: determine strategic direcbon and objectives.. ratfy rnaitr deti*t>ns on and mormtor Ihe LKse of finartts. re￿eW management rewts. Board Commltte•s Sut*(a)mmiUees. 11 neeessary. 8re app)Inted on an basL8. and disba￿led when tw have completed the tssk lor wtrHch Ihey are fom)ed. In 2022 there We￿ three sub4imrnittees". the National Ministy Leader's remuneraiion S￿￿¢0MMIttee. the National Ministry Leader's appraisal su comnmttee, and an Appeal sub-commiltee setup to hear an appeal reLgting to a grievance. Worldwld• chU￿h of God Charlty In 2022, GCI UK became the sole member of Ihe regislered CThnpany ar￿ Chaiity W(NlthvNJe Chuith of God (Company number. 14038669. regislered n England aNJ Wa￿5). Intematbnal Conne¢tlons GCI UK operates as an organisatiw asxKialed ￿th GCI HQ. Although Capa￿ of indeF¢ndent operalion. GCI UK has wllirgly Subordinated ilseifin do¢trinal mattèrs to GCI Ha Y4$tsfw 85 rt£h)¢s not br￿9 our Churth and Charty into Confi￿ 7pAh UK laws. AddItion￿lY. we have a twc*kirrfJ relationshlpwrth various Grace Commurion Intemalior471 Organisalm￿S overseas. In October 2022, after approval by ihe Board of Trustees. Gavin Henderson was comrrllssioned as GCI HQ'S Superintendent for Eufope. This is a non-salaried ptssrtion. Ihough the Board of Trustees has agreèd lo hèlp support some of Ihe travel expenses associated vAth the role. 8nd to donate somè ol GÈvift HendefSOn'S wnployed lime as NML to the fole. The Board has ègregd to regularfy review Ihis arraryement to ensure it is in the b&st interest ol the Charity. As part of this r¢40 the NML travelled to Pari5 in OGlober, where he gave presentstitins tothe leadership of the GCI congregations in Fnrtt. Page 9 GRACE COMMUMION thITERNATIONAL IA Company Limited by Guarantee) TRUSTEES REPORT Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Opèrational managem The 9￿￿Tal management and strategc plannin9 was dekgated to I￿ NML v•ithin guidelines olthe Board's Miss(on Stsiternent, and 7Mthin Ihe vision of Ihe denomination. The NML reported r8gukrly to the Board and lo GCI HQ, and was suppw¢ed by his staff with vknom he ¢on$utted regularly. Management r#mun•r4llon The NML'S salary was delerrni￿ by Ihe Board based on a Teoynmendalbon ol a sub-cornrnltlee. cortsisling ol Roy Walker. Simon WillNqrns and Hilary Buck. The salartes of staff. sel by the NML were s•*n and opproved by the Board ol Trustees al Ihe November 2021 Board rneeling. where Ihe Wget for 2022 was approv•d. GCI UK seeks lo ensure thal ifs staff are paid approprialely. but notexGessivety. FINANCIAL REVIEW GCI UK rernains in wod financial heatth with sKJnifbcant reserves. In 2022. the Church'5 bud9eted income and eKpendilure was £525.000 and £650.000 respectively. Incorne lor the year was significantly above bud9el In parf due lo a legacy that was received dufing the year. Expenditure was also above budget in 2022, though to a kssei extent. prinarity due to Ihe Church incurriro increased legal costs. Comparèd to 2021. the income of the C￿rth wa5 signifvnty lower. This vrn5 part due to less investment income with the djsure oflhe Churth's Baring's Targeied Relum Fund Invesknènt in 2021. and a drop in donatvJn5 receiv￿ in 2022. The reason for Ihi5 drop in income is Ihe increasing ag• profile ol the Church, which means that income from membèrs who lets￿. or who sadly pass away Is not being feplaced by income fr(¥n rwi members. as well as the tost4)f4tving erisis that has occurred in 2022. The Church has also chaTrJed Iht dates when key celebrali(Ms are held, wh￿h may also have had an impacl on Ihe Church's ￿(￿atIOnS. 2022 saw a dramatic iwease tn expenditure compared lo 2021. but this was not unexpected. The Church's eYperKIi￿￿ in 2020 and 2021 was much lower ihan normal as a result of Ihe coronaviru5 pandemic las Ihis rneant thal we were rKJl pa￿ng hall hire. or travel costs durirKJ this period. which is a Sl9nificanl proports.on of our expenditure). Expendilure wa5 budgeted above expected income in 2022 as we are cnmin9 of the Coronavirus pa￿lemiC. This was a key lirne for Ihe Church. and $0 the Board ol Trustees had agreed in 2022 to lund a temporary increase in expenditure from th? Church's rèserve5. R¢seTh¢s Poli¢y The Board of Trustetrs has eslablished Ihat the levd of reseNes in cash or ￿$h equivaknii should be al least six monlh5' operaling expenses 2022 this was determined lo be £290.0001. Following harity Commi55ion guidance any pens*)n scheme surplus is not reftected in the level of reserves. as they do nol rewe5ent an smmedialely realisatAe asset. At 31 December 2022 ihe tolal fund5 comprised.. Restricted Unreslricted.. other To¢al £13.539 £2 356 988 Page 10 GRACE COMMUNION INTERNATIONAL {A Company Umlted by Guarantee) TRUSTEES REPORT {Conlinu•dl FOR THE YEAR ENDED 31 DECEIABER 2022 The Charity's feseEves held in 2022 were sigrnfKanlty abcple the six mmth's operating expenses. For a Thjmber of years the Charity has operated a poky of Th)t ￿dgeting for legades lthch, due io the size of o¢Jr organisalion ale not easity predictable). Instead. the Board of Trustees has deltrmined that funds above budget should be kepl in reserve to wovkle an adthtional revenu8 stream fty the Charity in Ihe fuiure. In￿tmont Powws and Pollcy GCI VJ¢s eonstitLthn allows the Board ol Tmstees to in¥e5t monèy I￿1 Rnnwdiatety reqLMred for ils punjtsses in Of upon such investments. secLrrities L¥ propety as may be th0￿￿t fit. Th9 Board ofTrustees. haM"ng regard tothe liqu￿reqU￿￿entsofop&I0fi￿j GCI UK andthe reseNe5 polw set out above. kept fuThJs in 2022 in Newtcffl's'Growth and Investmènt fund for Charities., as wdl as in Cleri¢al Medical arffl Canada knfe investmentvehicks. wtuthhad been re¢wved as part ofa lega¢y in a wior yoar. In December 2022. Ihe Charity began Iht p￿$S of d￿n91r*3 the Chwth's invèslrnènts and rese¢ves into funds that have a grealer alignmenl ￿th the Churth's elhral posthn. These lunds a￿ lo be invested In a 2..1 ratio bet￿een provhling capstsl grry•Ah artd wthme. As a resuk. in December 2022. £4S0.C￿0 was invested into Ep%￿h.$ Global Equity fund. £2D).000 was invesled into Epworfh's Corporatè bond fund. and £450.OLKI was invested inb CCLA'S COIF Chariiies Elhical Investment fijnd. Furlher investmenls be made in 2023 wthen the ￿$b"n9 luNls have been close4J wilh Canada Lsle. Clerical Medical and Newton. The Church's investments help ensure the l¢)r#J4ern) vlabli lty of Ihe Church in the fight ol the current. financial pressures factng the Charity, as weN as pro￿ding op1￿)nS for strategic capi181 investments in. Ihe luture {e.g. purchawry or Church hanl Fundralslng Most of the income for the Ch￿￿h ¢omes from that￿n$ as opposed to fundrat5irwJ. While th¢ ChurGh encourages members to supwrt the Church finanry#lly. the CIMJrch stresses thal member$ should onty giv• as they are able. In 2022. a iegular member letter was sent ovt in a maitshol. Eath mailshot . contained a donation envelope in ￿se wip￿nts wanted to he*J support Ihe Church finar￿la[1y. In addition. offerings were taken up at ourcelebralK)n events and in some of our corwjregations during th year. Th& Church compfies th the law as il aP￿leS to charllies and fundrai￿r￿j. and in 2022 did not use Ihird paty or professional fuThJrnisers, and received no compla￿ltS in relation to fundraising. Due to ihe very limsled naiure of the Church's active fundraisww, the Church has not sbgned up to the code of fvndrai5ing practs"￿- h(r￿ever. the Board keeps its p05FtE￿ under review. and is keen that the Churth lollows best fvn¢JraisirKJ practicès. No speclfK fvndrai5ing Xtwits"¢$ ar• cuffenuy p￿nrted lor 2023. Indlgenous Ineome The income of GCI UK is predorTMnantly deli￿j fr￿ffl donalions fr(¥n its congregational members Great Britain and Eire wth occasional conlritMJlKJns from r￿n-MembeTS. As in previous years. full advantage has been taken of Grfi Atd tax relFef on efgible oc￿ations. AAlditionally. a small proportion ol the Charity's Ineome rtsmes Trnry)me 8risirvJ from invesknent relums. Page11 GRACE COMMUNION INTERNATIONAL {A Company Umited by Guarantee) TRUSTEES REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022 Penslon Sch•me Church operates a definecj benefil pens￿ scheme called the Pens￿ and Lrfe Assurance Plan of the WorldwKle Church of God Iworldwride Church of God is th• fomier name of Gra(t Communion Intematsonal). Thè scheme has been ¢k•sed to new members sin¢• 2004. The lasl activè member of the scheme retired in 2015, ￿aVit￿j only dèferrèd membèrs as non-￿sured ￿"abilit￿$. The pension scheme has been In defitrt since the 31 December 2016 valuatKJn. and a rècovery plan has been in place since 2020. The ChLFrch paid £49.8C4J 2022 towa￿$ thi5 recovery plan. The recovèry plan was updated in March 2023 following the 31 December 2021 valualion. Underthe updattd plan thè pension seheme will eover the costs to determine the impacl of Guaranteed MIn￿um Pension equalisation on the scheme. and the ChU￿h will make one final defic* reduction conlrilxAtK)n in 2023 of £188.500 to e1￿mInate the deknt in the pensi￿ scherne. Fbs¢al Rèsponsiblllty The 8oard of Trustees rKMmally reqU￿S Ihat the execulive of GCI UK operale a balanced ￿dget. based on Ihe anlicipaled Inccxne an(1 Expenditure lor the year. In 2021. the Board agreed that. given Ihe Chur¢h's reserves. the Church coukj operaie the next couple ol years wilh expendilure In excess of I￿orne Iwilhin limits). This W￿ld a%)w the Church to invest in ils luiure at a key mornenl for Ihe Charily. For 2022. the Charity budgeled to spend £125,000 More than e¥￿ted incomtr, and the eoard wa5 ￿eaSed that the actual operalin9 def￿{ for Ihe year wa$ less than thts. The Churth has agreed similar budget. wth expected expenditure in excess of expected income. in 2023. The Board had deiermined thal shoutd income be in excess of expendiiure {e.g. in the case of receipt of exceptional donatK)ns or legaryes). these funds can be assvjned lo projects suggested by Ihe NML lo Ihe Board of Trustees. Until Ihen any hjnds in excess of budget should be invested lo provide additiona revenue for the Church ￿ the fvlwe. Dve to uncerfain nalwe, Ihe Chwch dce5 nol L￿￿get for legacy incorne. Risk management aDd inlemal contro15 The Tru5t••s ensure that m4or risks lowluth GCI UK is exposed are reviewed and assessed. and that systems are in place to mitigate those risks le.g. Safeguardirg and procedures). The Trustees have agreed a risk management poI￿Y lor whth they have overall responsibility. Operalional resFK*nsibilJtywas delegated by the TrLtslees io the Nalional Ministry Leader and his stalf. A risk registèr entifies risks. and assbgns specific actions and responstkn"lities for mihgating the risks. The risk management prrKess is on*oing. The Trustee5 consider that a major risk is one that has 8 hi9h likeliht)od of occurring and wovld. il il occurred. have a severe impacl on operational performance. The NalKJnal Ministy Leader rep￿ed regulady to the Board ol Tnjstees on major risks and how they are being managed. The Tnjstees expect all stall and t401Lmteéts when engaglng in any activty on behall of GCI UK to consider the rlsks posed. and to aci in awdance with the risk mana9¢ment policy and procedure. All increases to ¢)n-going or new acimties arÈ risk assessed Fwior lo bewig introduced oi undertaken. The Truslees wanl lo be risk *rt. but do nol wish lo be averse to t*ing reasonable Fi5k5 as part of Iho Board's strategy io ach*¥e the objectives ol GCI UK. Ml key pol¢ie5 wlhin the organisa￿On are reviewed at regular intervals. and updated as appropriate to re[￿¢ legislative changes and the ialest developments in this area. In pa￿cular. new Covid risk assessments were performed lor all corKJregations that resumed physical Serv￿*S aftef rèlwnry fr(>m Ihe hiatus caused by the pand￿1¢. Page 12 GRACE COMMUNION INTERNATIONAL (A Company Llmlied by Guarantee) TRUSTEES REPORT IC¢)nllnued) FOR THE YEAR ENDEO 31 DECEMBER 2022 The Board has ¥Jenlified four rnai￿ risks to the Church. The fi￿1 is Ihe age of its membership. The kncreasing age of our volunleers ￿eanS thal some ol our congregations are having to meet ￿$$ frequently. and the increasing age of our members aLw has an impact on our ffftances as our regular donors retire etc. Anolher masor risk to the Churth i8 the Church's pension scheme.. the full impact of Cov*J and the current cost of ffiwng crisis is rK•t yet C￿ar on th8 Pension scheme. The pension scherne was closed to new members ￿ 2004. no longer has a¢bve members ltydy penstoners and deferred pensioners￿ however, due io the srLe ol the pensiorh fund compared to oui annual income. this remains a signrficant concem. The third risk lacing thè Charity involvès the drfficutty that has been experienced in returning to Fthysical seNices after the prolrmged absence caused by Covid. The leadershlp has encouraged the continuats.on ol k￿1 Zoom meetirvJslswvi¢es where po$sibk and COnt￿l￿e￿ with weekty YouTube broadcasts ihat were started in Pandemi¢ to help combat this. Finalty. Ihe lasl risk factrwJ the Church is the h)ss of members due to d¢¢tsin#l diviwjns lartd msultant ¢hanges to liturgical practicelthatare a legacy ofthe Chwch's pastteaching5.Thp Chur¢h is committed to h¥rtdbng th¥se divi$tons in a k)vfftg and oing way to ty lo mtsJ3te thi5 lisk. Third party Indtrmnlty Insuran¢• The ch￿￿h pays third party liotslity in$urance in resped of the Trustees and Seniw m￿geMenL PLANS FOR THE FUTURE At Ihe beglnning of2023. we request•d that all of 0urcry￿rega1TrJns rTMfft lo Surxlay as their main day ofworship wilh a tsfgel date thy this transitic¥) of the end of2024. This changè will affèct thè majority of ovrcongregations. which sbll meet on Saturday for hi%toital reasons. This ￿11 have a significant impact on the Church. and it will help briTrJ our GoTrJre9aI￿s into a￿n￿eftt t•nlh It* denominat Intemationalty. This transition carries with it the Tisk rf som? meffl￿ v*kn i*sagree wlh this char¥Je leaving the Church, and therelore a potenlial drop in income. Howev8r, after muth prayer. plannSng and discussxjn of the risk, the Management and the Board of TnJ$tees f•81 Ihat tlus decisty)n is in the hjng lerrn best interest of the Charity. As In 2022. the Church is pfanning lo hold celebrat*Jns in LarberL Ga￿ay. TulEamore. Hemel Hempstead. Bridfington and Paignlcffl. The de(#sion has also been ma¢Je to hold a longer denoMinat￿nal conference every years insiead of a slbjrter one every year. This means the nexl donominalx)nal conference be in 2024. Ai1dilionally. th8 Cfvjrch is hoping to start a Church pl¥*l in Market Harborough, and plat)s *e 4mderway to hold a series of ￿nts in 2023 to help create #n awarer*ss of prewcè thè tovm. #nd enthusiasm fwthè Church plant. The ChLKch wl once 89ain ￿ 2023 hold wmmer camps in Nlorfa Bay and Kettwing. we are JTrently investigal'ng new possible kxations for SEP for 2024. aThJ the p05sibtlty ol launchng • new Adventure Camp in a different location. From an administrative perspeclive. the Board of TrLt51ees w*￿1 C￿lInue *rylh its revw of the Chur¢h'$ poliue5. and as part of this the Managemènt is planniroJ lo creale a Vdunteers. handbook Én 2023. which gathers together wi one place all Ihe relÈTrAnt policies for our volunteers. The Chur¢h alrèady ha$ astsfl handbook forempjoyees. Work has also been ongotng L)) a new chu￿ websile. which will atso bè launched in 2023. Pagè 13 GRACE COMMUNION INTERNATIOIIAL IA Company Limlt•d by GuarantM) TRUSTEES REPORT IConti*uedl FOR THE YEAR ENDED 31 DECEMBER 2022 Additionally, the Church plans to conlinue to expkne the Iwr avenues of-healthy Churth" as outlined in the objectives sèctron ol this reFtht. With this in mind the Regiond Pastors conbnue to work with Iheirdevewing leaders til Iheii reg￿n$ and wovide relevant training and instiuciion to our leadeTS and volunteers. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The Charity do8$ not hohl any such fvnds on b¢haWof any other organisation5. TRUSTEES. RESPONSIBILITES STATEMENT The Trustees (who are also Ihe directors of the C(mpany for Ihe purFoses of company law) are-. responsible lor preparing the Trustees, Repori the finanaal slatemenls in accordance wilh applicable law and United Kingdom Accounling Standards (United Kingdom Generally Aocepled Accounting PraC¢￿e). Company law requires Ihe Truslèes lo prepare financial sialements lor each financial year. Under company law the Trustees musl not approve the financial statement5 unle5$ they are saiisfied thal they give a true and fair view of the stale of affairs of the Company and of its incoming resources and application of resources. including rts income arKI expenditsxe. for thal periL*J. In prep¥ing Ih#se financpal stalernenls, the Trustees are reqwred ¢0: se*t suitabl• acccwnling policies and V*n appfy them c(Y&istenJy', obseNe the methods and principles of the Charities SORP IFRS 102): make judgements and aCCOLmling estimates that are ￿asOnable and prudent., slate whether applicable UK Accounting Slandards IFRS 1021 have been followed. SU￿eCt to ny malertal departures disch)sed and explained in the finanoal slatemenis.. and prepare Ihe financial slaternents on the going concem basis unless ￿ i8 Inappropriate to presume Ihat the Company will continue in busness. The Trustees ar? responsible lor keepir¥J adequate accoUn￿ng record5 that are suffioent lo show and explain the Company's Iransactions and disdose with reasonable èccuracy al any lime the financial position of the Company and ena￿e them lo ensure thal the financia statements comply wilh the Companie5 Act 2006. T￿Y are also responsible for saleguardir*J Ihe assets of the Company and hence for taking reasonable steps fcy the prevenliw and deteclTrm of fraud and IAher irregularities. OISCLOSURE OF INFORMAT1014 TO AUDrroRS Each ol Ihe persons who we Trustees al the i¥ne *th•n this Trnsleès. Report is approved cos)lirm Ihat." so lar as that Trustee is aware, there is ￿ relevant •tdil 1nf0rrrbat￿n of whith lh• Char*tablo Company's auditors ait unaware. and that TrI￿tee ha5 laken all the step5 that OU9hl lo have been tsken as a Trustee in ryder tg be aware of any rekvant au¢*t Informalh￿ and to e5tsbl￿h Ihal the Charitable Companrfs auditors are aware of that infomalion. Following a rebranding exercise on 15 May 2023 Ihe Irading nam• of the Charitable Companls independent auditor thanged from MHA Maclntyre Hudson to MH￿ A resolulion to fèapwnt MHA a$ independent auditor will be proposed at the next Annual General ￿lJ￿j. Page 14 GRACE COMMUNION INTERNATIONAL IA Company Limlted by Guaraniee) TRUSTEES REPORT Iconllnued) FOR THE YEAR ENDED 31 DECEMBER 2022 This reFKYt was approved by Ihe Trustees •ThJ siw on Iheir behall by.. Jamès Lambu Chair ofthe Board of Twslees Date.. 2&AuG.202S Page 15 GRACE COMMUNION INTERNATIONAL . (A Company Limtted by Guarant••) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF GRACE COMMUNION INTERNATIONAL Opinion We have audited the financial stalements of Grace Communion Inlemational {the'ChariW} for the year ended 31 December 2022 which comprise the Statement of Financial Ath'vities. the Balance Sheet, the Ststement of Cash Flows and the related notes, indu¢Jing a summary of signiftcanl accouTrling policies. The financial reporting framework that has been applied in their preparakn.on is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financsal Reporting Standard applicable in the UK. and Repubh'c of Ireland. {United Kingjom Generalty Accepted A¢wunting Practice). In our opinion the financial stslements= give a true and fair wew of the state of the Charitable Companys affairs as al 31 Decernb8r 2022 antl of its incoming resources and application of resources. including its income and expenditure for the year then ended.. have been property prepa￿d in accordance with Unrted ￿"ngdorn Generally Accepted Accounting Practice: and have been prepared in accordance with the requiremenfs of the Companie5 Act 2006. the Charities and Trustee inveslment (Scotland) Act 2005 and regulation 8 of the Charits"es Ae£ounls {S¢otlandl Regulations Basis for opinlon We conducled our audit in accordance Inlemational Standards on Auditing IUKI {ISAs IUKI} and applicable law. Our responsibilities under those staThlards are lurther described in Ihe Auditors. responsibilities for the audit of the financial 5ts1ements seclion of our report. We are independent of the Charitable Company in accordance with Ihe ethical requiremenls thal are relevant to our audit of the financial slalemenls in the Uniled Kingdom, induding the Financial Reporting Covncil's Ethical Stsndard. and we have fulfilled our other elhi¢al responsibilities in accordance th these requirernents. We believe that the audit evidence we have obtained is suffiaent and appr¢)priale lo provide a basis for our Op1r￿7. 'Con¢luslons relatlng to golng ¢oncem In auditing the financial statements. we have concluded that the Trustees. use of the going concern ba515 01 accounting in the preparat￿)n of the financial statements is appropriate. Based on the work we have perlormed. we have M)1 identified any material uncertainties relating to events or conditions that. individualty or coHecltvely. may casl significant doubl on the Charitable Compan¥s ability to continue as a going wncern for 8 peri￿J of at least twe￿ ffM)nths from when the financial statements are aulhorised for issue. Our responsibilities and the reS￿n￿bIll￿S of the Trustees with respect to goiThJ o)ncem are described in the relevant sections of this report. Page 16 GRACE COMMUNION INTERNATIONAL (A Company Limlted by Guarantse) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF GRACE COMMUNION INTERMATIONAL {CONTINUED) Other Informatlon The other infomation eompri8es the infomiation Included In the Annual Report other than the financial stalemenls and our Auditors. Report Ihereon. The Trustees are responsible for the other information conlained wilhin Ihe Annual Report. Our O￿n10n on Ihe finanual slatements does nol covef the other information and, except lo the exlenl othefwise explicilty ststed in our report, we do not express any forni of assurance conclusion Ihereon. Our responsibilty is to read the other infomiation and. in doing so. consider whether the other Information is materially inconsislenl wth the financial statements or our knowledge obtained in the course of the audiL or otherwise appears to be materially misstated. W we identify such material inconsislenaes or appalenl material misslalements, vft are required lo delemiine whether this gives rise to a material misstalem&nl in the financial statements themselves. If, based on Ihe work we have performed, we Conclude that there is a material misslaternent of this other information. we are required to report that fact. We have Th)thiTrJ to report in ttws regard. Opinion on other matters prèscribed by the Companies Act 21J06 In +Jur opinion. based on the work undertaken in Ihe course of the audit the Nrfomiation givert in the Trustees, Reptrt for the ffftandal year for the financlal statements are prepared is consistent the financial statements. the Directors, Report included I•￿1n the T￿￿tee$. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the Charitable Company and its enwronment obtsined in the course of the audit, we have nol identif￿d material misslatements in Ihe Tnths, Report. We have nothing to report in respect of the following matters in rela￿n to ￿1￿) Companies Act 2006 and the Charilies Accounts IScolland} Regulations 20(￿ las amended) requires us to report to if. in our opinion: adequate accounting records have not been kept. or returns adequate for our au¢tht have not been received from branches not visited by us". or the financial statements are nol in agreement with Ihe"accounting records and relums: or certain disdosufes ol Truste8s' remuneration Specif￿ by law are nol made.. or we have not receI￿d all the Inforniatlon and explanatlons we requlre for aud￿. or the Trustees were not entiled to prepare the financial statements in accordance with the small companies regime and take advantsge of the smaS1 companies. exemptiL￿$ in preparing the Trustees, Report and from the requirement to prepare a Strategic Repyt. Page 17 GRACE COMMUNION INTERNATIONAL (A Company Umlled by Guarant￿) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF GRACE COMMUNION INTERNATIONAL ICONTINUED) Responsibilities of Trustees As explained more fulty in the Trustees, Responsibilities Stslement set out on page 14, the Trustees (WI￿ are also Ihe Directors of the Charity for the purposes of company lawl 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 delemine is necessary to enable the preparation of financtal stslemenls that are free from material misstatement, whelher due to fraud or error. In preparing the financial statements. Ihe Trustees are responsible for assessing the Charitable Companls ability to continue as a going ¢oncem. disdosing. as applicab￿. matters related tr) going coneem and using the going concern basis of accounting unless the Trustees erther intend to liquidate the Charitsble Company or lo ease operations, or have no realislic attemative bul to do so. Auditors. responsibilities for the audit of the financlal $tat8ments We have been appointed 8s audit￿ under Sedion 44 111 (C) of the Charities and TNslees Investmenl {Scotland) Act 2005 and the Companies Act 2￿6. and rewt in accordance regulalions made within those Acts. Ow objectives are to obLiin reasonable assurance atx)ul whelher Ihe financial slalements as a whole are free frorn material misstslement. whether due lo fraud or error. and to issue an Auditors. Report that includes our opinion. Reas0natr￿e assurance is a high level of assurance. bJl 15 not a guarantee that an audit conducted in accofdan¢e with ISAS IUKI wll aEways dete¢t a material misslalement when il 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 ihese financkql slalements. Irregularities. including traud. are inslances of non0 Change In cash and cash equlvalents ln the year Cash and Gash equivalents at the beginnirvJ of the >Ear (1.234.596) 1.822,778 1.091.566 731,212 Cash and cash equlvalents at the end of the year 588.182 1.822,778 The notes on pages 24 to 45 fom part of Ihese financial Statements Page 23 GRACE COMMUNIOKINTERNATIONAL (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Ac¢ountlng policles 1.1 Basis of preparatton of financial ststements Grace Communion Inlemational is an incorporated Charity Wistereil wilh the Charity Comrnission for England and Wales registration nurnber 311098. and with OSCR in Scotland registration number SC040008. The Company is registered in the UK. registration number 00654913. The finandal slatements have been prepared in accordance wth the Charilies SORP {FRS 1021- Accouniing and Reporting by Charities: Ststemenl of Recommended Practice applicable lo charities preparing Iheir accounts in accordance with the Finan￿al Rerx)rting Standard applicable in the UK and Republic of Ireland (FRS 1021. and the Cornpanies Act 2006. Grace commun￿ Intemalional meets the definibon of a public benefit entity under FRS 102. Assèts and liabilities are i￿￿"allY recognised al historical cost or transaction value unless otherwise stated in the relevant a¢counlirvJ poly. The Charills functional and presentalic￿al currency is Brilish PounLI Sterling 1£) and is rounded to the nearest pound (£1. The folbwing principal accountsrKJ wilicie5 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 l. In the event of the Charrty beirvJ wound up. the liability in respect ol the guarantee Is limited lo £7 per member of the Charity. The address of the registered office is given in the Charity informalion on page 1 of these financial slalemenls. The nature of the Chanlrfs Operat￿nS and prinrjpal acts"vilies are included in the Trustees Report on page 3. 1.3 lTrcome All Income is recognised once the Charity has entiuemenl to the ncome, il is probable that Ihe income will be received and the amount of income receivable can be measured reliably. The recognition of In￿Me.1r0rn lega￿$ 15 dependenl on establishing entillemenl. the probability of receipt and the ability to estsmale wilh sufficient accuraey the amount receivable. Evidence of enliuemenl to a legacy exists when the Charity has sufficient evidence that a gift has been left to them Ilhrough knovAedge ol the existence of a valtd WU and the death of the ￿nefaCtor) and the executor is satisfied that the propety in question wll not be required to satisfy claims in the estate. Receipt of a tegacy musl be recc¥3nised when it is probable Ihal it wll be received and the fair value of the amount receivable. which vrill generally be the expected cash amount to be distribuied to the Charity. can be reliably measured. Collecl*)ns and donations are acCoUn￿d for vthen they are receiv8(1. Income tax r¢¢oveiable in relalion to d￿atiOnS recewed under Gift or deeds of covenant is recognised at the lime of the donati(￿. Other income is recognised in the period in whth it is receivable arKI lo the extent the goods have been pwded or on completion of the ser¥ice. Pa9e 24 GRACE COMMUNION INTERNATIONAL (A Company Llmlted by Guarante0} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting PO￿¢[eS {conllnued) 1.3 Income (conllnued) Interest on funds held on deposit is inctsJded when receivable and the amount can be measured reliabty by the Charit￿, this is nomially uFM)n nolification of the Inte￿St paid or payable bythe Bank. 1.4 Expendfture Expendiiure is recc*Jni5ed once there is a legal ry constructive obligation lo transfer e¢onomiG benefit to a third party. it is probable that a transfer of economic benefits will be required in setuement and the amount of the ¢*Jligatiori can be measured reliably. All expenditure is accounted for on an accnJa15 b85ts. AJI expenses includirrfj support costs and govemance costs are alkxated to the applicable expenditure headings. Direct costs ale related sUp￿rt costs a$S￿lated wilh preaching. pastoral care and the producti¢)n and distribution of Charity literature. These are seperatety dtsclosed in the Slalernent of Financial Activities as Charitable Acli4fjties. GovernarKe costs a￿ those incurred in connection vath administration of the Chwitable Company and compliance with ￿l$titUtIonal and statutory reqwements. Expendiiure on charitable acbwties is incurred on directly undertaking the activities w*llch further the Charitys o14eclives, as well as any aswciated support costs. 1.5 Fund accountlng Generd funds are unrestricted fvnds which are available for use al the discretion of the Trustees In furtherance of the general objectives of the Charity vthich have not been de$￿anated for other purposes. Restricted funds are funds which are to be used in accordance 7Mth specific restricth¢)ns imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are thorged againsl the speofic fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income. gains and k)sses are alk￿ted to the appropriale fund. Hisloricalty the Charity has taught the prinuple 01 tilhing (which is the donation of ten percent of one's net income for the chari￿5 unrestricted us81. Most of the Charity revenue consists of such unrestricted donations. Donations are used fof the publishing of Ch8rily literature. assista￿e for members who are fflore in need. operating expenses of the annual Church festivals. ministerial activities and maintenance of buikjings, as seems appropriate as seems in line ￿th our charitable purposes. Restricted funds comprise amounts donated for specific objeclives. They are expended in furtherance of certain aspecls of the Charity. In the Tr￿Slee$, opin￿n, at 31 December 2022, aN donations received for specrfic purposes had been expended in accordance with. and in furtherance of. thesr intende(I purposes Vlrylh th8 exceptKm of of the r8stricted fun(15 not yet utilse¢l a5 delailgd in note 16. Page 25 GRACE COMMUNION INTERNATIONAL (A Company Umlted by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 A¢¢ounting policies Icontinuedl 1.6 Golng concern The Trustees assess whether the use of g(Mng concem is appropriate. i.e. whethèr there are any material uncertainties related to events or conditions that may casl Signif￿nI doubl on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of al least one year from the date of authorisation for issue of Ihe financial statements and have concluded that the Charty has adequate resource5 to continue in operational existence for the foreseeable future and there are no material uncertainties about the Chariws ability to conb'nue as a going concern. thus they Continue to adopt tr* gcing concern basis of accounting in preparing the rinancial slatemgnls. This consideration has taken into account the expected irnpacl of Ihe current economic environment on the Charity. as far as it can be delemiined, and Ihe Trustees remain satisfied that the going concem principle remains apwowiate. 1.7 Foreign currencies Monetary assets and liabilities denominated in forei￿ currenues are translated into 5terfing al rates of exthange ruling al Ihe ￿PortIng dale. Transactions in loreign wrrencies are translated into sterh"ThJ al the rale ruling on the dale of the transaction. Exchange gains and losses are recognised in the Statement of Financial Acbwlies. 1.8 Operatlng leases Rentsls under operating leases are charged to the Statement of Financial Activities on a slraighl line basis over the lease ierm. 1.9 Taxation The Charity is considered to pass the lesls set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition" of a Charitable Company for UK corporation lax purposes. Accordingly, the Charity is w)tentialty exempl from tsxation in respecl of income or ¢aPbtsl gains received within categories covered by Chapler 3 Part 11 of the Corp)ralion Tax Act 2010 or Section 256 of the Taxation of Chargea￿e Gains Ad 1992. to the exlent that such irthme or gains are applied exdusivety lo charitable puwes. 1.10 Tanglble fixed assets and depre¢iation 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 reliatly. A review for impaimient of a f￿ad asset is carried rf events or changes in circumstances Indicate that the carryirKJ value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounls are recognised as impaifments. Impairment losses are recognised in the Statement of Financial Aclivitses. Page 26 GRACE COMMUNION INTERNATIONAL (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 A¢countlng poll¢ies {conlinued) 1.10 Tanglble flxed assets and depre¢latlon (contlnued) Tangible fixed assets are initialy rècognised at cosL After recognition, under the tosl model, tangible fixed assets are measured at cost less accumulated depreciation and any aceumulaled impaimient losses. Costs IrtU￿ed to bring a tangibk rued asset ￿10 its intended working condition shoLbkl be included in the measurement of cost. Deprociation is ch¥ged so as to omocate the cost of tsngibla fixed assets less their residual va￿e over their estimated useful lives. using the straight4in¢ math¢)d. Depreciali￿ És provided on thg lolb*rng bases: Freehold b￿k￿[ng5 Motor vehicles Fixture and frttings 4% on a stmghl-line basis - 25% on a Stra￿h1￿"fte basis 10% and 20% on a strawJht4ine basis Freehold land is not depreciated. Profit on disposal of fixed assets are inckKled in net expenditure for the year. 1.11 Investments Investrnents are a form of financial instrument and are lnikna1￿ recognised at their transaction cosl and subsequently measured at fair value at the balance sheet date. unless the value cannot be measured reliabEy in which case il is measured at cost less impaimenl. The Slalement of Financial Activities includes the unrealhsed and realised gains and josses arisuig on revaluat￿￿$ and disposals throughout the year. Invesknents held as fixed assets are slM)wn at fair value. 1.12 Debt¢)rs Trade and other debtors a￿ rec(yJnised at the settlement amount after any trade thscounl offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.13 cash.at bank and In hand Cash al bank and in hand includes cash and short-tenn highly liquid investments with a short maturity of three months or less from the date of acquisilion ￿ opening of the deposit or similar account. 1.14 Credltors and provistons Credilors arKI provisions are recognised where the Company has a present obligation resulting from a past event that wil probabty resull in the transfer of funds to a third party and the amount due lo settlo the obligation can be measured or estimated reliably. Creditors and pn)visH)ns are nornially recognised at their selllement amount alter allowng for any trade discounts due. Pa9e 27 ' GRACE COMMUNION INTERNATIONAL (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policles (continued) 1.15 Pensl¢)ns Defiiied Contribution The Charity operates a defined contrbution penston scheme and the pension charge represents the amounts payable by the Charity to the fund in respecl of the year. Defined Benefft The Charity operates a defined bw*fit. fully insured pension 5eheme adminFslered exlemally and the Penston charge is based on a full acluarial valuation dated 31 March 2023 for the year anded 31 December 2022. The scheme was dosed to new entrants from 31 December 2002. Payments Fnade lo the fLJnds are harged annually in these financial statements. The fvnds are actuarially valued on a regular basis by qualified actuary. the rates of contributi¢)ns payable being delemiined by the actuary. In the inlerveNng years the actuary reviews the conlinuirMJ approprialeness of the rates. The amount charged to the Stslement of Financial Activities is the estimated regular cosl of providing the benefits accrued in the year, adjusted to refflect varialions to Ihe cost. Any difference betsyeen amounts charged lo Ihe Ststement of Financial Activilies and contributions paid to the indepeThJent pension scheme is shown as a liability or asset at the balance Sheet dale. Further information on pension cost5 is shown in note 20. A pension scheme asset is recognised in the Balance Sheet under FRS 102 lo the exlenl that the Charity is able to recover the surplus through refuThJs or through a reduction in fulure eonlribulions lo the scheme. 1.16 Financial instrurnents The Chafity only has financial assets and financK41 Iha￿'11ties of a kind that qualify as basic financial instruments. Basic finarrial instrumenls are initialty reco9nised al transaction value and subsequently measured at their settlement value. 1.17 Critical accounllng estimates and areas of5udgement Estimates and judgements are conllnually evaluated and are based on historical experience and other factors. including expectations of future events Ihal are believed lo be reasonable under the circumstances. Page 28 GRACE COMMUNION INTERNATIONAL {A Company Limited by Guarnrrt¢e) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies (contlnued) crftical accounting estimales and assumplKins: The Charlty makes estimates and assumptions eoneeming the future. The resuming accounting estimales will. by definition. seldom equal the related aclual results. The estsmates and assumptions that have a signtficant risk of causing a material adjuslment to the carryin9 amounts of assets and Siabilities within the next financial year are addressod below. 1) Defined benefrt pension s¢hemes valuatK)n The FRS 102 valuation for Ihe Charilable Compan￿$ Defined Bgnefft Pension S¢hemes is recognised In the Balance Sheet a5 an asseL Thi5 is the present value of the defined benef obligation at the balance sheet date less the fair value of the plan assets. This is sensilive to change in the assurnptions made by the actuaries who have been appointed lo value the schernes. See note 20 for the assumptions made for the Pensi￿ commitments, aThJ note 1.15 for the pensions accounting pdicies. 2) Depreciation of tangil>le fixed assets The amual deweciation charge for tangible fixed assets is sertsiknve lo changes in th8 estimated useful economic INes and residual values of the assets. The useful econornic lives and residual values are reassessed annually. See note 12 for the carrying amount of the tanglble fixed assets and note 1.10 for Ihe useful e¢onomic lives for each class of assets. Donatlons and le9a¢les Unrestrlcted funds 2022 Total funds 2022 473.411 33.148 63.752 473.411 33.148 63.752 Legacies Gift aid Tolal 2022 570.311 570.311 Page 29 GRACE COMMUNION INTERNATIONAL (A Company Llmlted by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Donatlons and legacles (contlnued) Unrestricted funds 2021 Total funds 2021 Donations Legacies Gift aid 506.292 15.253 76.084 506,292 15.253 76.084 Totsl 2021 597.629 597.629 Investment income Unrestricl•d funds 2022 Total fund5 2022 Investmenl income 9.985 7.000 9.985 7,000 Pension income (note 11) Total 2022 16,985 16,985 Unrestricted funds 2021 Total funds 2021 Snvesknent income Pension income (note 11) 30,750 4,Crt)O 30,750 4,000 Total 2021 34,750 34.750 Page 30 GRACE COMMUNION INTERNATIONAL (A Company Limlled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Other incoming resources There were £Nil incoming resources during 2022. Un￿strICted funds 2021 Totsl funds 2021 Other Income 225 225 Charltsble actlvttSes Unrestrlcted funds 2022 Total 2022 Mileage and travet Insurance Other expenses General assistance 85.46S 7,181 44,644 18.029 18.465 50.303 66.027 19.164 6.257 242.271 25.225 181,755 21,068 85.465 7.181 44.644 18.029 18.465 50,303 66,027 19,164 6,257 242,271 25.225 181,755 21,068 Depreciali¢)n Summer Educational Prcgrarnme Hall hire and rent Field wnferences Profit on disposal Wages and salaries National insurance Pension cost Young Peoples Ministy, website expens0$ and professional development Total 2022 785,854 785.854 Page 31 GRACE COMMUNION INTERNATIONAL (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 DECEMBER2022 Charitable aGtlvities (continued) Unrestricted funds 2021 Total 2021 Mileage and travel Insurance Other expenses General assistsnce 41,261 6,591 67,410 16.150 41,261 6.591 67.410 16,150 Lil Depreciation Summer Educational Programme Hall hire and rent Field conferences Profit on disposal Wages and sdaries National insurance Pension cost Young Peoples Ministy. website expenses and professional devekwmenl 20,176 10.395 39,373 3,499 9,039 230,014 21.225 111.446 19.476 20,176 10,395 39,373 3.499 9,039 230,014 21.225 111,446 19.476 Tolal 2021 596,055 596,055 Governance costs Unrestricted funds 2022 Total funds 2022 Auditors, remuneration 14.190 50.028 4.335 14,190 50,028 4,335 Professional fees Board expenses Totsl 2022 68.553 68,553 Page 32 GRACE COMMUNION INTERNATIONAL (Acompany Limlted by Guarnntee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Governance costs (continued) UNestrthd funds 2021 Total funds 2021 Auditors. remuneratM)n Professional fee5 8oard expenses 16.150 39.158 4.748 16,150 39,158 4,748 T¢)ts12021 60.056 60,OS6 Nol Incomel(expenditurn) Thls Is ststed after ¢*arging: 2022 2021 Depreciats'on of tangible fixed assets Operaling lease rentals 19,806 270 20,176 1.330 Audltors. remuneration The Auditor's Temuneration c(Mnprises audit fees of £14.19012021: £16,150) and fees for other non-audil semces of £3.310 (2021: £3.730). This includes fees for the Charity its pension scheme. Staff Costs Staff costs vRre as follows: 2022 2021 Wages and sataiies Employers national insurance Pen￿¢)n costs (note 20) Provksion for GMP equalisation (l￿te 20) 242,271 25.225 181,755 230,014 21,225 (81,0831 192,529 449.251 362,685 Page 33 GRACE COMMUNION INTERNATIONAL (A Company Limlled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Staff costs Icontinuedl The average number of persons emP￿Yed by the Charity I￿ring year was as foltows: 2022 Ng. 2021 Persons employed Slipendiary persons emplo 12 13 No employee received remunerath)n amounlmg to rnore than £60,000 in èither year. The Key Management Personnel of the Charty are deemed lo be those having authority and responsibility, delegated to them by the Trustees. for planning. directing and controlling Ihe acts'vib'es of the Charity. The Key Management PerS￿ne1 of the Chanly comprise the National Ministry Team. The lolal employee benefits of the Key Management Personnel of the Charity {including employer national insurance and em5￿0Yer pensp)n) amounted to £202.716 (2021.. £157.294). 10. Trustees. remuneratlon and expenses During the year. no Trustees r￿erved any remuneration or olher beneffts (2021.. £Nil). During Ihe yeaf ended 31 Oecember 2022. expenses lotslling £4.326 were ￿1mbur$ed or paid ￿1￿ctlY lo 8 Trustees in resped ol training. travel and subsistence12021.' £3.089 to 8 Trustees in respect ol travel and subsistence). Other relaled paty Iransaclions involving the Trustees are sel out in rv)le 22. 11. P•n$ion finan¢e income 2022 2021 Interest. incomè.oTrpension scheme assets Interest on pensK)n scheme liabifilies 176.000 (169,0001 129.000_ 1125,0001 7.000 4.000 Page 34 GRACE COMMUNION INTERNATIONAL (A Company Llmlled by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12. TangIb￿ fixed assets Freehold land and buildings Motor Flxlures and vehlcles fittlngs Totsl Cost At 1 January 2022 Additions 359.256 4.714 243.742 2,906 607.712 2,906 At 310ecember 2022 359.256 4.714 246.648 610.618 DepT￿latIOn At 1 January 2022 Charge for the year 203.373 11.597 4.714 219,131 6.868 427.218 18.465 At 31 December 2022 214.970 4.714 225,999 44S,683 Net book value At 31 December 2022 144286 20.649 164.935 At 31 tkcember 2021 155.883 24.611 180,494 Ffeehold land and buildings In¢￿deS free1￿k1 land. the value of is estimated by the Trustees as being £69.324 (2021.. £69.324). which has not been dewecialed. The most recent valualion on 12 July 2022 indicated that the value of Ihe property is £305,000. Page 35 GRACE COMMUNION INTERNATIONAL (A Company Llrnlted by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. Fixed asset investments Listed Investments Cost or valuation Al 1 January 2022 Additions Revalualions 611.228 1,100,000 {47,814) At 310ecember 2022 1,663,414 The ￿VestmentS are invested in a number ol investment funds includiro Clerical Medical Bonds, Canada Life Bonds. Newion Gro%th Fund. Epworth Cash Plus FunLI and CCLA COIF Charities Ethical Investment Fund. 14. Debtors 2022 2021 VAT repoyable Other debtors Prepayments and accrued income 6.070 17.831 25.168 351 16.452 28.826 49.069 45,629 15. Creditor5: Amounts falling due within one year 2022 2021 Trade creditors 300 14.862 35.487 10.414 29.914 Other taxation and S￿181 security Other creditors AcGiuals 33,099 10,786 50.888 95.073 90.677 Page 36 GRACE COMMUNION INTERNATIONAL (A Company Limit￿ by Guarantee) NOTES TO THE FINANCNL sfATEMEKrs FOR THE YEAR ENDED 31 DECEMBER 2022 16. Prior year adjustments In aC￿rdance with FRS 102. the net pension asset in Telation to the defined benefit pension scheme ean onty be recognised in the financial statements where an unconditional right to a refund exists. or lo Ihe extent that the Charity is benefiting from a reduction in the estimaled future costs for remaining active members of the $d￿Me. The Charity has therefore derecognised the defined benefit pension scheme asset that was previously recognise(l. The accounts have been Testsled fof the reduction in the ￿nstr)n reserve al 31 December 2021 by £19S.471. The opening pension reserves at 1 January 2021 has been reduced by £284.1KJO and movement in the pension Stherne asset has resulted in a reduelion of £88.529 in pension costs which is recognised in the Ststement of Financi81 ActTVbtses Page 37 GRACE COMMUNION INTERNATIONAL {A Company Llmlted by Guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17. Statement of funds Statsment of funds - Current year Balance at 31 Galnsl December (losses) 2022 Balance at 1 January 2022 Resources expended In￿me Unreslrided funds Charitsble fund PenS￿n reserve {note 20) 2,555.913 580.296 7.000 1731.407) 1123.000) 147,814) 2,356,988 116.000 2.555.913 587,296 (854.407) 68,186 2,356,988 Restricted tunds Restricted buikling fund Restricted Africa fund 12.539 1.000 12,539 1.000 13.539 13,539 Total of fvnds 2.569.452 587.296 (854.407) 68,186 2.370,527 Unrestricted fund5 Charitable funds are unreslricled funds whth are available for use at the discrelion of the Trustees in furtherance of the general objectives of the Charitable Company and which have not been designated for cther purposes. Restricted funds The reslricled building fund represents Ihe balance of unspenl funds recetved towards property related expenditure. The restricted Africa lund is funded by the Estate of l KN¥J and is to be used for work in Afriea. Page 38 GRACE COMMUNION INTERNATIONAL (A Company Llmlted by Guarnntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17. Stalemenl of funds Icontinued) Statement of fund&- prfor year As restated balance al 31 Gainsl December (k*sses) 2021 Balance at 1 Jartuary 2021 Resources expended Ir￿oMe Unrestrided lunds Charitable fvnd Pensiw reserve (note 20) 2.390.263 628.604 (552,111) (104.OCKJ) 89,157 100.LKIO 2.555,913 2.390.263 632.604 (656.111) 189,157 2.555,913 Restrlcted fund$ Reslricled building fund Reslricled Africa fund 12.539 12.539 1,000 13.539 13.539 Total of funds 2.403.802 632.604 (656,111) 189.157 2.569.452 18. Anatysls of net assets between lunds Analysls of.net assets between funds- current year .Restrlcted-Unrestrlcted- funds fund$ 2022 2022 -Total funds 2022 Tangib￿ fixed assets Fixed asset investments Current assets 164,935 1,663,414 623,712 (95.073) 164.935 1,663,414 637.251 195,0731 13.539 Current liabilities Totsl 13.539 2.356,988 2,370,527 Page 39 GRACE COMMUNION INTERNATIONAL (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 18. Analysls of net assets belY￿n funds (continued) Anatysls of n•t assets between funds - prior year Reslaled Restricted unrestricted funds fund5 2021 2021 Restaled total funds 2021 Tangible fixed assets Fixed asset investments Current assets Current liabilities 180.494 611,228 1.854,868 (90,6771 180,494 611,228 1,868,407 190,677) 13.539 Total 13.539 2.555,913 2.569.452 19. Reconclllation of net movemenl In funds to net Cash flow from operating actfvlties As restated 2021 2022 Nel incomelexpendilure tor the year (as per Stalemeni of Financial Activities} (314.9251 65.650 Adjustments for. DepreCiatic￿ charges (nole 12) Lossesllgainsl on investments (nots 13) Interest and renls from investments {note 3) Pension scheme finance income {rKite 11> Decrease in net pension asset (note 211 Pension"scheme"conlTibJlions by the'emF40)tr (note"21) Ilncrea5eydecrease in debtors (note 14} Increase in creditors (note 15) 18.465 47.814 19,985) 17,0001 1173.000 -150.000)- {3.4401 4,396 20,176 (89,157> 130.750) (4.000) 104.000 62.655 30,492 Net cash {u$ed in}Iprovided by operating activitie5 1141.6751 159,066 Page 40 GRACE COMMUNION INTERNATIONAL (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 20. Analysis of cash and Cash equlvalents 2022 2021 Cash in hand $88,182 1.822.778 Total cash and Cash equivalents 588,182 1.822.778 AtJl December 2022 January 2022 Cash flows Cash at bank and In hand 1.822.778 (1.234.596) 588.182 1,822,778 {1,234.596) 588,182 21. Penslon ¢ommitments Defined contrfbullon pension scheme The Charity is part of the NEST defined contribution pens*)n scheme. Contrilyjtions lo the pension scheme recogntsed as an expense in Ihe year was £8,55512021: £7,446). Defined benefft group stakeholder penslon sch•me The Charity operales a defined benefit ￿0UP stakeholder Pe￿lOn sthme for its emptyes. which is funded. The pension cost and asset for the yEar ending 31 December 2022 are based on the advice of a professionally qualified actuary. The most recent fomal va￿all(￿ is at 31 December 2022. The $theme was closed to new entrants Kqth effect from 31 December 2002. The defined contribution asset is alk)caled to unreStr￿d l￿ds. Principal actuarial assumpticms at the balance sheet date (exFKessed as weighted averages): 2022 2021 Dis¢ount rate Futtr¢ pensi¢)n increases Consumer pricè infiati RPI inftation 5.10 1.80 2.90 2.90 3.50 3.80 Page 41 GRACE COMMUNION INTERNATIONAL (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Penslon commitments (continued) The current mortality assumptson5 indude sufficient aifowarKe for luture improvements in mCKta￿tY rates. The assumed lrfe expectations on retirement age 65 afe: 2022 Years 2021 Years Mt)rtality rates {in - for a male 65 now - al 65 for a male aged 45 rthw - for a female aged 65 rth¥ at 65 for a female aged 45 now 22.3 24.0 25.4 21.2 22.9 23.2 25.0 27.1 The Charitls share ol the assets in the scheme was= Falr value at Fair value al 31 31 December 2021 December 2022 Equities (including property} Bonds Insured pensions Cash 1.268,000 583,000 5.931,000 269.QOO 1.402.000 463,000 7.390.000 210.000 Total fair value of assets 8.051.000 9.465.000 The actual return on scheme assets was £858.1I)0 (2021: £174.0(h)). The amounts recognised in the Siatement of Financial ActNities are as folbws.. As restated 2021 2022 Interesl income Interest cost Provision for GMP equalisalion Movement in derecognilion of sc*wne asset Contribution by employer 176.000 (169.0001 129,000 1125.000} 1192,529) 88.529 1173,000} so,000 Total amount recogni5ed in the Statement of Finanelal A¢tivltlès (116.0001 1100.0001 Page 42 GRACE COMMUNION INTERNATIONAL (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Pension commltments (contlnued) Movemenls in the present value of t￿ de￿ed benefit obiigation were as folbvts: 2022 2021 Opening defined benefit obl￿ation Provision for GMP ewa1lsal￿n Interest cost Actuarial gains Benefts paid 9.269,529 9.915.000 192,529 169,000 125,000 11.150.OODI 1403,0001 1606,000) {560,000) CloslTrg defined benefit obllgallon 7.682.529 9.269.529 Changes in the fair value of scheme assets were as folkn￿". 2022 2021 Opening fair value of scheme assets Interest income Actuarial losses Benefts paid Cr￿trIbutIOnS by the ernplO￿r 9,465.000 10,199,000 176,000 129,000 11.034,0001 (303.0001 {606.0001 1560.000> 5D.OOQ Closlng tair value of scheme assets 8,051.000 9,465,000 Page 43 GRACE COMMUNION INTERNATIONAL (A Company Llml¢8d by Guarantqe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Perislon commilrnents (¢ontinued} Nel Actuarial gains in Ihe year amounted kn £116.(KK)12021." £100.OC(I). The Charity exFects to contribute £24.900 to its Defined Benefft Pension Scheme in 2023. ArnO￿ts for the current and prewous year are as folk)ws: Defined benefrt pension sthemes 2022 2021 Defined benefit obligation Stherne assels (7.682.529) (9,269.5291 8,051,000 9,465.000 Surplus 368,471 195,471 Experience adjustments on scheme liabibties Experienee adjustments on scheme assets 1.150.000 (1.034.000) 403.000 1303.0001 116.000 100.000 In accordance with FRS 102. nel Pensit￿ assets in relation io defined benef￿ pension schemè has only been re¢o9ni5ed in these financial statements vthere an unconditsonal right lo a refund exists. or lo the extent that the Charity is benefibng from a reduction in Ihe estimated future costs lor the remaining acliv& rnembers of the scheme. 22. Operating lease ¢ommitmenls At 31 December 2022 the Charity had eommitments to make firture minimum lease paynents under non- cancellable operating leases as follo￿. 2022 2021 Not later Ihan 1 year 270 23. Related party transadlons No related party transacti￿S took place in the year ended 31 December 2022. other than those disclosed in note 10. 24. Controlling party Charily is ultimately control￿d by the Boaril of Trustees. Page 44 G￿E COMMUNION INTERNATIONAL (A Company LIMIt￿ by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 25. Company limited by guarant¢e The Charlty is a Company limited ty guarantee does not have share capttal. Page 45