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2022-12-31-accounts

Registered number: 01722542 Charity number: 326392

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2
Independent Auditor's Report on the Financial Statements 12 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 36

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees L A Boateng
M V Eyles
R G Howells
S Mitchell
P A Sheard, Chair
B Tubbs
Company registered
number
01722542
Charity registered
number
326392
Registered office
Mark House
85/87 Locksbrook Road
Lower Weston
Bath
BA1 3EN
Company secretary
M Hawkins
Executive Director
M Hawkins
Independent auditor
Bishop Fleming LLP
Chartered Accountants
10 Temple Back
Bristol
BS1 6FL
Bankers
Lloyds Bank Plc
41 Milsom Street
Bath
BA1 1DN
Solicitors
Stone King LLP
13 Queen Square
Bath
BA1 2HJ

Page 1

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report together with the audited financial statements of the charity (KCM/the charity) for the year from 01 January 2022 to 31 December 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletins 1 and 2.

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

Statement of Faith

The programme and activities of the Charity shall be based upon and at all times shall be consistent with the following beliefs and Statement of Faith:

The Scriptures Inspired

The Scriptures, both the Old and New Testaments, are verbally inspired of GOD and are the revelation of GOD to man, the infallible, authoritative rule of faith and conduct. (2 Tim. 3:15-17; 1 Thes. 2:13; 2 Peter 1:21).

The One True GOD

The one true GOD has revealed Himself as the eternally self-existent "I AM", the Creator of heaven and earth and the Redeemer of mankind. He has further revealed Himself as embodying the principles of relationship and association as Father, Son and Holy Ghost. (Deut. 6:4; Isa. 43:10-11; Matt. 28:19-20; Luke 3:22).

The Deity of The LORD JESUS CHRIST

The LORD JESUS CHRIST is the eternal Son of GOD. The Scriptures declare:

The Fall of Man

Man was created good and upright; for GOD said "Let us make man in our image, after our likeness." However, man by voluntary transgression fell and thereby incurred not only physical death but also spiritual death, which is separation from GOD (Gen. 1:26-27; Gen. 2:17; Gen. 3:6; Rom. 5:12-21).

The Salvation of Man

(A) Conditions of Salvation

Salvation is received through repentance towards GOD and faith towards The LORD JESUS CHRIST. By the washing of regeneration and renewing of the Holy Ghost, being justified through faith, man becomes an heir of GOD according to the hope of eternal life (Luke 24:27; John 3:3; Rom. 10:8-17; Eph. 2:5-13; Titus 2:11; Titus 3:37).

(B) The Evidences of Salvation

The inward evidence of Salvation is the direct witness of the Spirit (Rom. 8:14-19).

The outgoing evidence to all men is a life of righteousness and true holiness (Eph. 4:24; Col. 3:1-17; Titus 2:11- 14).

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Ordinances of the Church

(A) Baptism in Water

The ordinance of baptism by immersion is commanded in the Scriptures. All who repent and believe in JESUS CHRIST as Saviour and LORD are to be baptised. Thus they declare to the world that they have died with JESUS CHRIST and that they also have been raised with Him to walk in newness of life. The baptism by immersion in water shall be administered to all those who have repented of their sins and who have believed on The LORD JESUS CHRIST to the saving of their souls. (Matt. 28:19; Mark 16:16; Acts 10:47-48; Rom. 6:36; Col. 2:12)

(B) The Holy Communion

The LORD'S Supper, consisting of the elements - bread and the fruit of the vine - is the symbol expressing our sharing the divine nature of our LORD JESUS CHRIST (1 Cor. 10:16-17; 2 Peter 1:4); a memorial of His Suffering and death (1 Cor. 11:23-27); and shall be observed regularly by all believers "until the kingdom of God comes" as enjoined with the Scriptures (Luke 22:17-20).

The Baptism in the Holy Spirit

All believers are entitled to and should ardently expect and earnestly seek the promise of the Father, the baptism in the Holy Spirit and fire, according to the command of our LORD JESUS CHRIST. This was the normal experience of all in the early Christian Church. With it comes the enduement of power for life and service, the bestowment of the gifts and their uses in the work of the ministry (Luke 24:49; Acts 1:4-8; 1 Cor. 12:1-31). This experience is distinct from and subsequent to the experience of the new birth (Acts 8:12-17; Acts 10:44-46; Acts 11:14-16; Acts 15:7-9). With the baptism in the Holy Spirit comes such experiences as an overflowing fullness of the Holy Spirit (John 7:3-39; Acts 4:8), a deepened reverence for GOD (Acts 2:43; Acts 5:11; Heb. 12:28), an intensified consecration to GOD and dedication to His Work (Acts 2:42; Acts 5:1213) and a more active love for JESUS CHRIST, and for His Word and for the lost (Mark 16:20).

The Evidence of the Baptism in the Holy Ghost

The baptism of believers in the Holy Ghost is witnessed by the initial physical sign of speaking with other tongues as the Spirit of GOD gives them utterance (Acts 2:4). The gift of tongues (1 Cor. 12:4-10, 28) which is a manifestation of The Holy Spirit and given as The Holy Spirit wills.

Sanctification

Sanctification is an act of separation from that which is evil, and of dedication unto GOD (Romans 12:1-2; 1 Thes. 5:23; Heb. 13:12). The Scriptures teach a life of "holiness without which no man shall see the LORD". (Heb. 12:14). By the power of the Holy Ghost we are able to obey the command "Be ye holy, for I am holy" (1 Peter 1:15-16).

Sanctification is realised in the believer by recognising his identification with JESUS CHRIST in His death and resurrection and by faith reckoning daily upon the fact of that union, and by offering every faculty continually to the dominion of the Holy Spirit (Rom. 6:1-14; 8:1-14; Gal. 2:20; Phil. 2:12-13; 1 Peter 1:3-9).

The Church

The Church is the Body of JESUS CHRIST, the habitation of GOD through The Holy Spirit with divine appointments for the fulfilment of her grand commission. Each believer, born of the Spirit is an integral part of the General Assembly and Church of the firstborn, which are written in heaven (Eph. 1:22-23; Eph. 2:19-22; Heb. 12:22-24).

The Ministry

A divinely called and scripturally ordained ministry has been provided by our LORD for a twofold purpose: (1) The evangelisation of the world; and

(2) The edifying of the Body of JESUS CHRIST (Mark 16:15-20; Eph. 4:11-16).

Divine Healing

Divine Healing is an integral part of the gospel. Deliverance from sickness is provided for in the precious sacrifice of our LORD JESUS CHRIST and is the privilege of all believers (Isa. 53:4-5; Matt. 8:16-17; James 5:14-16; 1 Peter 2:24).

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Marriage

We adhere to and agree with the Biblical view of marriage as being between one man and one woman (Gen. 2:24; Matt. 19:4-6; Mark 10:6-9; Eph. 5:30-31).

The Blessed Hope

The second coming of JESUS CHRIST includes the rapture of the saints which is our blessed hope, followed by the visible return of JESUS CHRIST with His saints to reign on the earth for one thousand years (Zech. 14:4-5; Matt. 24:27, 30; Rev. 1:7; Rev. 19:11-14; Rev. 20:16). This millennial reign will bring salvation of the nation of Israel (Ezek. 37:21-28; Zeph. 3:19-20; Rom. 11:26-27) and the establishment of universal peace (Isa. 11:6-9; Psalm 72:3-8; Micah 4:3-4).

The Final Judgement

There will be a final judgement in which the wicked dead will be raised and judged according to their works. Whosoever is not found written in the Book of Life, together with the devil and his angels, the beast and the false prophet, will be consigned to everlasting punishment in the lake which burneth with fire and brimstone, which is the second-death (Mark 9:43-48; Rev. 20:11-15; Rev. 21:8).

The New Heavens and the New Earth

"We, according to His promise, look for new heavens and a new earth, wherein dwelleth righteousness" (2 Peter 3:13).

Mission Statement

The mission of Kenneth Copeland Ministries is to teach Christians worldwide who they are in Christ Jesus and how to live a victorious life in their covenant rights and privileges. The fulfilment of that mission takes place when those believers become rooted and grounded enough in God's Word to reach out and teach others these same principles.

This vision is being accomplished through the ministry efforts of Kenneth and Gloria Copeland and their staff on a worldwide scale through the local church and the use of television, campaigns, conventions, books, recordings, and personal correspondence and is multiplied through the financial support of other ministries of like purpose.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Objectives, activities, achievement, and performance

a. Objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

The objects of the charity are to advance and promote the Christian faith and doctrine. This is principally achieved by the distribution of teaching materials such as books, DVDs, CDs, and other digital formats; provision of Christian teaching by television broadcast; use of the internet and social media to promote the charity's resources on our website; distribution of a free monthly magazine and Partner letter and providing events. A report on how this has been achieved appears below.

b. Working with partner organisations

We regularly work with KCM in the USA in a variety of ways. This not-for-profit organisation has similar charitable objectives to us. The production of our printed, digital, audio and visual resources is enhanced because of the good working relationship with staff members in the USA organisation. They offer a wide range of experience and advice that we can draw upon for the achievement of our charitable objectives in the European region. In particular, the provision of our German language version of the Believers' Voice of 9LFWRU\ NQRZQ KHUHDIWHU DV µ%9R9¶ WHOHYLVLRQ SURJUDPPH KDV EHHQ SRVVLEOH EHFDXVH RI WHFKQLFDO VXSSRUW and advice from the Broadcast department at KCM in the USA. The planning and delivery of technologybased initiatives such as websites and customer database management are further examples of how we work together. We also draw on some aspects of their technical and planning skills when we are planning events for our supporters, particularly where this involves live or on demand streaming of content.

We also work with Kenneth Copeland Ministries e.V. which is a charitable organisation registered in Germany. Our ability to provide ministry services in the German language has been greatly helped by this relationship and has led to the availability of some of our routine ministry materials such as the monthly magazine and Partner letter being available in German. The costs of providing this TV outreach are met by KCM e.V.

c. Grant-making policy

This policy sets out the context and guidelines for making and reviewing grants to organisations and individuals. The Trustees desire to support other ministries with goals that are consistent with those of the charity. In considering whether to make financial support available, the Trustees will identify whether there is a relationship already in place, or whether there is potential for one to develop. They will also consider such factors as a written submission, project document, a vision/mission statement or similar, financial plan or accounts, supporting statements from other people with relevant knowledge, and website material. Once a grant is in place the Trustees expect the recipient to provide periodic updates, so that progress can be monitored, and ensure that the grant monies are being used for the purpose for which they were given.

Review of activities and achievements

a. Main achievements of the charity

The main areas of charitable work during 2022 include the following:

Grant Making

Grants are given to other organisations and individuals who share similar objects and aims. This charitable activity supports the provision of Public Benefit in a variety of settings including the relief of poverty and the provision of teaching materials about the principles of the Christian faith. During 2022 the Trustees approved grants and support amounting to £258,635 (2021: £285,867). £207,364 of this amount was funded from the charity's designated fund called the 'Tithe Fund', and £51,271 was funded from the restricted fund called the 'Relief Fund'.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Ten percent (10%) of all income that the charity receives which is unrestricted is designated to the 'Tithe Fund' to finance the Gospel for those who are unable to provide it for themselves. Some of the organisations receiving grant support from the charity visited during the year to give reports of their work. Correspondence and update reports from grant recipients are referenced to show how the monies have been applied.

The 'Relief Fund' has been established to respond to immediate relief/disaster needs typically arising at short notice, and situations where people are in need or hardship. This is funded by donations received from Partners and friends specifically restricted for this purpose.

£51,271 was applied for relief in accordance with the terms of the fund during the year.

Provision of teaching material

The provision of teaching materials, such as books, CDs, DVDs, along with other digital formats and free materials to those in financial hardship is an important part of our charitable activity. The infrastructure that supports the income from charitable activities is also used for provision of teaching materials supplied free of charge.

In addition to UK bookshops and churches, we continued to distribute wholesale products in Continental Europe in 2022, mostly in the French and German languages, but also in Armenian, Czech, Dutch, Italian, Norwegian, Spanish and Urdu. Our German language teaching broadcasts are viewed from an online platform and generate interest in our work, and lead people to make financial contributions and purchase products.

Shalom Verlag, a German language translation and publishing house, continues to translate, print, and distribute titles on our behalf.

Our French language Facebook recorded 473 (2021: 43) new 'likes' during the year. 4,764 'likes' have been recorded since this launched.

Beyond this, KCM actively continued to seek to respond to European supporters in their language where possible. We continue to build links with contacts in Europe, particularly in Germany and France. We completed rebuilding the German and French websites to enhance the BVOV broadcast with closed captioning.

The Europe website was also rebuilt during 2022. We achieved the aim of improving the overall user experience including navigation, page load speed and working effectively on mobile devices.

During 2022 we launched 4 new free of charge digital teaching and email courses, for our Partners and friends. There were over 1,600 requests for these courses.

Partner relations

The Partner growth goal for the year was to increase the number of Partners to 5,294. At the end of the year, the number of financial Partners stood at 4,890.

Our Partner Relations team are responsible for maintaining relationships with our supporters, handling donations and product orders, and offering general advice and prayer support including:

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

We continued to build on our Partner Churches initiative during the year. We list churches that share similar values to KCM on our website so that people searching for church contact have a reference service to consult that may be of help to them. At the end of the year 225 (2021: 203) churches were listed.

TV Broadcasting

The provision of teaching and ministry by daily programmes on current Christian issues is a key area of activity for the charity that allows supporters to remain regularly connected with the ministry's teaching. The FKDULW\¶V ZHHNGD\ SURJUDPPHV DUH DYDLODEOH RQ WKUHH 79 VWDWLRQV FRPSOHPHQWHG E\ WKH IDFLOLW\ WR YLHZ RQ our website.

2022 was the twelfth year of broadcasting for our German language programme. The amount of response from viewers is encouraging in terms of letters, emails, product purchases and donations, and this is helping to grow this area of our work.

Events

Our strength in providing online events for our Partners continued with the delivery of 18 opportunities to hear an invited speaker. We had lots of feedback from Partners, pastors, and leaders to say that they find these events very valuable. During the year we also had a once-a-month guest speaker for our staff team; this has been popular and an effective way of encouraging us in the course of our work.

The final event of the year was an online meeting with Kenneth and Kellie Copeland. This was part of the 40th year anniversary initiatives. We were delighted to have 345 Partners joining us for this special time.

Prison Ministry

Prison ministry is a long-standing initiative. We seek to work alongside prison chaplains and others involved in ministering to those in prison, as well as inmates directly. This is done by making teaching material freely available to them to help people come to know who they are in Christ Jesus and live a victorious Christian life with their Covenant rights and privileges. Every inmate receives a copy of the BVoV magazine and the Partner letter. An inmate can request a KCM NKJV Bible and the 'From Faith to Faith' daily devotional book. The charity also provides a selection of free leaflets and teaching material for chaplains to use in the chapel library.

We use the BVOV magazine as a first point of contact when seeking to build a Partner relationship with inmates. We did not make any prison visits in 2022.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

We distributed 62 (2021: 83) Bibles to people in prisons and other places of detention, as well as other products, all made possible through the generosity of our Partners.

Management and Governance

The charity's Trustees held four business meetings, including a strategic planning meeting, a grant making meeting and an AGM during the year.

The strategic planning work has identified six strategic goals for the next 3-5 years, these are: Digital First, Growing the Partner Base, Connect with Partner Church Pastors, Measuring Performance, Develop and Implement Language Outreach, and Develop opportunities and Programming for TV Ministry. Progress reports of performance against these goals are provided at Trustee meetings during the year.

An important accomplishment was the replacement of the end-of-life payroll software with a replacement called KeyPay that integrates with the accounting system and a replacement people management system, Zoho People. This project was well planned by the project team and implemented on time to ensure a smooth changeover to the new software.

b. Investment policy and performance

This policy sets out the approach that the charity will take with the investment of surplus funds that are available. The general approach of the charity is to adopt a risk-free stance, where possible, towards investment activities. The Trustees prefer this approach to one that is subject to the volatility and unpredictability of the stock market. In practice balances are deposited with banks or building societies in suitable instant access or fixed notice products.

Financial review

a. Financial review

Our gross income level decreased by 8% from £1,967,707 in 2021 to £1,819,380. The Trustees gratefully acknowledge all of the Ministry's Partners and friends for their continued support. Expenditure exceeded income by £4,465 (2021: Income exceeded expenditure by £130,239).

Support costs

The charity continues to meet some of the costs relating to the preparation of materials and broadcast production that were formerly received free of charge for many years from KCM USA.

Charitable donations were 11% below the budget and influenced by a range of economic factors in the UK and beyond. These factors also influenced the cost of goods and services that the charity buys. However, regular review and good management of our costs delivered a surplus on our operational budget. We are thankful for a strong Partner base that make donations to the charity, and the emphasis that we place on prayer for all our needs to be met.

b. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

The impact of global economic events, including the war in Ukraine, continues to create an unpredictable environment for the charity. This is the case for almost all business and charitable enterprises. The Trustees and Executive team will continue to monitor our key indicators and respond appropriately to maintain services to supporters and look after the staff team. If required, reserves will be applied so that the fulfilment of

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

charitable objectives can continue in the best possible form, although this would not be to the detriment of the financial viability of the charity.

c. Reserves policy

The Trustees have established a reserves policy of six months budgeted operating expenses to be covered by free reserves. This would permit the normal operation of the charity in the short term and give a period of time for the consideration of replacement income. The level of resources required has been assessed at approximately £132,000 per month, thus giving a requirement of £792,000.

Total reserves of the charity at 31 December 2022 were £2,139,500 (2021: £2,143,966). Of these reserves £16,273 (2021: £14,060) related to restricted funds, £37,318 (2021: £68,093) related to designated funds, and £2,085,909 (2021: £2,061,813) related to unrestricted funds. Of the unrestricted funds £570,147 was tied up in functional fixed assets and so were not freely available for use by the charity. This leaves free reserves of £1,515,762 (2021: £1,455,457) (see note 20). Free reserves are in excess of the policy whilst the charity prepares for a large-scale event taking place in June 2023. As a result, we anticipate the reserves being reduced to closely align with our policy.

d. Risk management

A policy covering risks is in place.

The risks which face the charity are detailed in its risk register which the Trustees review at each meeting. Risks are classified as governance, operational, financial, external and compliance. The trustees recognise that appropriate responses to mitigate these risks have been adopted. They also believe that key financial systems are in place and appropriate internal controls are maintained for the organisation. The principal risks facing the charity in the foreseeable future are:

  1. Trending decline in Partner numbers (mitigation - Develop Partnership Retention Strategy) 2. Cyber / data breach incident (mitigation ± put response plan in place)

  2. Reserves fall below policy requirement ± monitor, steps to replenish

  3. Adverse effect on donations / operations due to inflation and economic pressures (mitigation ± monitor impact, respond accordingly, strong reserves)

Structure, governance, and management

a. Constitution

The company is a company limited by guarantee, not having a share capital. It is a registered charity with registered charity number 326392 and company registration number 1722542, registered in England & Wales.

The Trustees make decisions at the meetings they hold to conduct the charity's business. Briefings and supporting papers are provided by the officers of the charity where appropriate. Decisions are voted upon and recorded in the meeting Minutes.

b. Appointment, induction, and training of Trustees

Incoming Trustees are appointed by existing Trustees following a selection and recruitment process that seeks to identify skills required by the board. A job description summarises the Trustee role.

Background information about the charity, such as recent minutes and organisation charts, is provided along with relevant Charity Commission publications and guidance to support induction.

Trustees attend relevant seminars and briefings as well as attending inhouse training.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

c. Pay policy for key management personnel

The Trustees consider the Board of Trustees, the Executive Director and the Office Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity. All Trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 13 to the accounts. The pay of the senior staff is reviewed annually in relation to performance against goals and normally increased with reference to a range of inflation measures, economic indications, pay trends and affordability.

Plans for future periods

Working with and supporting organisations with similar objects and aims to the charity is of great interest to the Trustees. We will therefore continue to take advantage of opportunities to form or develop relationships with such bodies and individuals as a matter of course.

It is an important aim for the Trustees to increase the number of people that know about the charity and its work. To support this aim we will consider and use the different media and technologies that are available to help achieve this.

The Trustees will continue to consider new initiatives that offer the potential to realise the charity's objectives. The Trustees will continue to enhance the core activities of the charity and thereby increase our database of supporters and beneficiaries. Opportunities will also be taken to take part in relevant events where we are able to connect with supporters and explain the work of the charity.

The charity marked its 40th Anniversary with several digital events and communications during the year. In June 2023 we are holding the Europe Victory Campaign where Kenneth Copeland will preach and minister. This is a significant event for the charity, and we look forward to welcoming many of our supporters. An event of this nature will be a major part of our work for the year.

We will continue to work towards the goal of increasing the number of Partners so that we can expand the audience that receives our ministry services and materials. We will use technological opportunities that are relevant and effective for the delivery of our objectives and continue to learn from the digital strides that we have made since 2020.

Our Trustees and staff work towards enabling the scope of the Ministry to reach the maximum number of people possible. Our motivation is the conviction that everyone has a right to experience the healing, health, prosperity, freedom, and joy that result from a personal relationship with the Lord Jesus Christ. This is at the forefront of our thinking, whether it be promoting our events and products, so that others may be strengthened in their faith, or granting funding to other bodies fulfilling this mission elsewhere. Increasingly, feedback we receive confirms the benefits to individuals on both a material and spiritual level.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the Charity 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 year. 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

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

P A Sheard

Chair Date: 17th May 2023

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENNETH COPELAND MINISTRIES

Opinion

I have audited the financial statements of Kenneth Copeland Ministries (the 'charitable company') for the year ended 31 December 2022 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 my opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I 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.

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and my Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENNETH COPELAND MINISTRIES (CONTINUED)

Matters on which we are required to report by exception

I have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires me to report to you if, in my opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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.

Page 13

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENNETH COPELAND MINISTRIES (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

I have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

My 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 Auditor's Report that includes my 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. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:

We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation. In addition, we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations; employment legislation; and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Page 14

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KENNETH COPELAND MINISTRIES (CONTINUED)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of my 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 my Auditor's Report.

Use of my report

This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My audit work has been undertaken so that I might state to the charitable company's members those matters I am required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for my audit work, for this report, or for the opinions I have formed.

David Butler FCA, DChA Bishop Fleming LLP

Chartered Accountants Statutory Auditors 10 Temple Back Bristol BS1 6FL

Date: 26 May 2023

Bishop Fleming LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 15

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Charitable activities
9
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
1,708,938
35,586
21,373
-
1,765,897
1,772,576
1,772,576
(6,679)
2,129,906
(6,679)
2,123,227		 Restricted
funds
2022
£
53,484
-
-
-
53,484
51,271
51,271
2,213
14,060
2,213
16,273		 Total
funds
2022
£
1,762,422
35,586
21,373
-
1,819,381
1,823,847
1,823,847
(4,466)
2,143,966
(4,466)
2,139,500		 Total
funds
2021
£
1,909,171
46,221
11,663
652
1,967,707
1,837,468
1,837,468
130,239
2,013,727
130,239
2,143,966

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

The notes on pages 19 to 36 form part of these financial statements.

Page 16

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:01722542

BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 15,959
69,031
405,719
490,709
(90,475)		 2022
£
570,147
1,169,119
1,739,266
400,234
2,139,500
2,139,500
16,273
2,123,227
2,139,500		 18,496
67,047
546,423
631,966
(95,159)		 2021
£
606,356
1,000,803
1,607,159
536,807
2,143,966
2,143,966
14,060
2,129,906
2,143,966

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

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

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

P A Sheard L A Boateng Chair Trustee Date: 17th May 2023

The notes on pages 19 to 36 form part of these financial statements.

Page 17

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of investments
Net cash used in 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
The notes on pages 19 to 36 form part of these financial statements		 2022
£
15,019
21,373
(8,780)
(168,316)
(155,723)
(140,704)
546,423
405,719		 2021
£
168,379
11,663
(45,080)
(359,076)
(392,493)
(224,114)
770,537
546,423

Page 18

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. GENERAL INFORMATION

Kenneth Copeland Ministries is a private company limited by guarantee and a charity registered in England and Wales (company number 1722542 and charity number 326392). Its registered office is 85-87 Locksbrook Road, Lower Weston, Bath, BA1 3EN.

The presentation currency of the financial statements is sterling, which is the functional currency of the charity, and the figures are rounded to the nearest £. Comparative information relates to the year ended 31 December 2021.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

2.2 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.

Income from charitable activities represents net invoiced sales for teaching materials and other products, excluding VAT.

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.

Page 19

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES (continued)

2.3 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a headcount basis.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Such costs are allocated on the basis of headcount.

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

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

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

All expenditure is inclusive of irrecoverable VAT.

2.4 TANGIBLE FIXED ASSETS AND DEPRECIATION

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 property - 50 years (2%)
Fixtures and fittings - 5-10 years (10-20%)
Computer equipment - 3 years (33%)

2.5 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

Page 20

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES (continued)

2.6 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.7 DEBTORS

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

2.8 CASH AT BANK AND IN HAND

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

2.9 LIABILITIES AND PROVISIONS

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

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

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.10 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.11 PENSIONS

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.

Page 21

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES (continued)

2.12 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.

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

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

3. 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 Trustees do not consider there to be any material judgements or critical accounting estimates.

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2022
£
Donations
1,708,579
Legacies
359
1,708,938
TOTAL 2021
1,888,749		 Restricted
funds
2022
£
53,484
-
53,484
20,422		 Total
funds
2022
£
1,762,063
359
1,762,422
1,909,171		 Total
funds
2021
£
1,907,263
1,908
1,909,171

Page 22

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2022
£
Mail order and wholesale
29,051
Events
6,535
35,586		 Total
funds
2022
£
29,051
6,535
35,586		 Total
funds
2021
£
42,901
3,320
46,221

6. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Bank Interest 21,373 21,373 11,663

7. OTHER INCOMING RESOURCES

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Job retention scheme grant - - 652

8. ANALYSIS OF GRANTS

Grants
TOTAL 2021		 Grants to
Institutions
2022
£
247,395
277,667		 Grants to
Individuals
2022
£
11,241
8,200		 Total
funds
2022
£
258,636
285,867		 Total
funds
2021
£
285,867

Page 23

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. ANALYSIS OF GRANTS (CONTINUED)

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

NAME OF INSTITUTION
Worldwide Outreach Ministries
Sporting Marvels
Warehouse Church
Great Joy in the City Ministries
Yielded Vessels
Mercy UK
Christian Faith Foundation Romania
Joseph Storehouse Trust
Jutvari Churches
Streetlight UK
Good Shepherd (formerly Dayspring International)
Johnson Ministries
Feed the Hungry UK
Gospel Grenades
Transform Europe Network
Tutela
Evangelical Alliance
KCM USA
Ekklesia 21 Church
Action 10-40
Grants to Institutions of £2,000 and under		 2022
£
27,000
27,000
25,000
24,000
21,000
18,000
16,000
15,000
13,000
10,000
10,000
8,000
7,000
6,000
5,000
3,500
3,000
-
-
-
238,500
8,895
247,395		 2021
£
27,000
27,000
10,300
15,500
17,000
25,000
12,000
15,000
13,000
10,000
10,000
5,000
-
1,600
4,965
-
-
50,000
10,000
15,000
268,365
9,302
277,667

Page 24

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2022
£
Grant making
258,506
Partner relations
480,657
Television Broadcasting
191,757
Events
135,738
Prison Ministry
33,987
Mail Order and Wholesale
408,892
Prayer Ministry
263,039
1,772,576
TOTAL 2021
1,830,218		 Restricted
funds
2022
£
51,271
-
-
-
-
-
-
51,271
7,250		 Total
2022
£
309,777
480,657
191,757
135,738
33,987
408,892
263,039
1,823,847
1,837,468		 Total
2021
£
338,285
480,121
182,382
111,883
37,788
427,082
259,927
1,837,468

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Grant making
Partner relations
Television Broadcasting
Events
Prison Ministry
Mail Order and Wholesale
Prayer Ministry
TOTAL 2021		 Activities
undertaken
directly
2022
£
23,886
289,867
137,246
108,482
6,731
218,102
126,760
911,074
831,231		 Grant
funding of
activities
2022
£
258,636
-
-
-
-
-
-
258,636
285,867		 Support
costs
2022
£
27,255
190,790
54,511
27,256
27,256
190,790
136,279
654,137
720,370		 Total
funds
2022
£
309,777
480,657
191,757
135,738
33,987
408,892
263,039
1,823,847
1,837,468		 Total
funds
2021
£
338,285
480,121
182,382
111,883
37,788
427,082
259,927
1,837,468

Page 25

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Staff costs
Depreciation
Staff training
Insurance
Light & heat
Cleaning
Repairs & maintenance
Printing, postage and stationary
Telephone
Computer costs
Website costs
Travelling
Bank charges
Currency (proft)/loss
Sundry expenses
Rates & Water
Legal and professional fees
Irrecoverable VAT
Hire of equipment
Governance costs
TOTAL 2021		 Grant
making
2022
£
15,728
1,875
245
447
213
283
534
275
640
3,100
245
375
1,001
157
39
175
108
(8)
755
1,068
27,255
30,015		 Partner
relations
2022
£
110,099
13,122
1,718
3,132
1,491
1,979
3,735
1,923
4,479
21,698
1,717
2,626
7,007
1,097
270
1,225
757
(54)
5,288
7,481
190,790
210,108		 Television
Broadcasting
2022
£
31,457
3,749
491
895
426
565
1,067
549
1,280
6,199
491
750
2,002
313
77
350
216
(15)
1,511
2,138
54,511
60,031		 Events
2022
£
15,728
1,875
245
447
213
283
534
275
640
3,100
245
375
1,001
157
39
175
108
(8)
755
1,069
27,256
30,015		 Prison
Ministry
2022
£
15,728
1,875
245
447
213
283
534
275
640
3,100
245
375
1,001
157
39
175
108
(8)
755
1,069
27,256
30,016

Page 26

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS (continued)

Staff costs
Depreciation
Staff training
Insurance
Light & heat
Cleaning
Repairs and maintenance
Printing, postage and stationary
Telephone
Computer costs
Website costs
Travelling
Bank charges
Currency (proft)/loss
Sundry expenses
Rates and water
Legal and professional fees
Irrecoverable VAT
Hire of equipment
Governance costs
TOTAL 2021		 Mail Order
and
Wholesale
2022
£
110,099
13,122
1,718
3,132
1,491
1,979
3,735
1,923
4,479
21,698
1,717
2,626
7,007
1,097
270
1,225
757
(54)
5,288
7,481
190,790
210,108		 Prayer
Ministry
2022
£
78,645
9,371
1,229
2,239
1,065
1,414
2,668
1,374
3,200
15,498
1,228
1,877
5,006
783
190
876
540
(39)
3,778
5,337
136,279
150,077		 Total
funds
2022
£
377,484
44,989
5,891
10,739
5,112
6,786
12,807
6,594
15,358
74,393
5,888
9,004
24,025
3,761
924
4,201
2,594
(186)
18,130
25,643
654,137
720,370		 Total
funds
2021
£
356,757
47,577
7,663
9,000
2,997
5,601
91,037
10,584
15,499
67,025
5,817
3,873
25,152
5,742
1,751
3,965
5,755
9,461
18,243
26,871
720,370

Page 27

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. AUDITOR'S REMUNERATION

2022 2021
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 12,200 12,250
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - 9,890

12. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
818,334
77,386
80,212
975,932		 2021
£
751,082
69,171
78,741
898,994

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

Grant making
Partner relations
Television Broadcasting
Events
Prison Ministry
Provision of teaching materials
Prayer ministry		 2022
No.
1
7
2
1
1
7
5
24		 2021
No.
1
7
2
1
1
7
5
24

Page 28

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12. STAFF COSTS (CONTINUED)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £60,001 - £70,000 - 1
In the band £70,001 - £80,000 1 -
In the band £100,001 - £110,000 1 1

Pension contributions amounting to £19,551 (2021: £18,541) were paid into a Money Purchase Pension Scheme in respect of these employees who are accruing benefits under the scheme.

The key management personnel of the charity comprise the Trustees, the Executive Director and the Office Manager. The total employment benefits including employer pension contributions of the Key management personnel were £207,824 (2021: £187,524).

13. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustee received any remuneration or benefits in kind (2021: £nil). 1 Trustee received reimbursement of expenses in respect of travel amounting to £338 (2021: £1,035). In 2022, 6 Trustees made donations amounting to £2,981 to the charity (2021: 6 Trustees made donations amounting to £3,680).

Page 29

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for the year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
15.
FIXED ASSET INVESTMENTS
COST OR VALUATION
At 1 January 2022
Additions
Disposals
AT 31 DECEMBER 2022
NET BOOK VALUE
AT 31 DECEMBER 2022
AT 31 DECEMBER 2021		 Freehold
property
£
775,201
-
775,201
247,174
14,973
262,147
513,054
528,027		 Fixtures and
fittings
£
243,116
-
243,116
196,568
6,247
202,815
40,301
46,548		 Computer
equipment
£
198,144
8,780
206,924
166,363
23,769
190,132
16,792
31,781		 Total
£
1,216,461
8,780
1,225,241
610,105
44,989
655,094
570,147
606,356
Cash on
deposit
£
1,000,803
199,779
(31,463)
1,169,119
1,169,119
1,000,803

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KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16.
STOCKS
Finished goods and goods for resale
17.
DEBTORS
DUE WITHIN ONE YEAR
Prepayments and accrued income
Tax recoverable
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
19.
FINANCIAL INSTRUMENTS
FINANCIAL ASSETS
Financial assets measured at fair value through income and expenditure		 2022
£
15,959
2022
£
57,668
11,363
69,031
2022
£
21,051
29,865
11,352
28,207
90,475
2022
£
1,574,838		 2021
£
18,496
2021
£
41,428
25,619
67,047
2021
£
19,835
20,659
29,354
25,311
95,159
2021
£
1,547,226

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

Page 31

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Tithe Fund
GENERAL FUNDS
General Funds
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Relief Fund
TOTAL OF FUNDS		 Balance at 1
January
2022
£
68,093
2,061,813
2,129,906
14,060
2,143,966		 Income
£
-
1,765,897
1,765,897
53,484
1,819,381		 Expenditure
£
(207,365)
(1,565,211)
(1,772,576)
(51,271)
(1,823,847)		 Transfers
in/out
£
176,590
(176,590)
-
-
-		 Balance at
31
December
2022
£
37,318
2,085,909
2,123,227
16,273
2,139,500

The Tithe Fund

The Tithe Fund is funded by ten percent of all unrestricted income received.

Specific grants to institutions/individuals will come from this fund. Prison costs and product given away free is funded from unrestricted reserves.

The Relief Fund

Supporters can make donations to this fund which will be used to provide help when relief is required or in the event of a disaster. Grants can be made to alleviate immediate relief needs typically arising at short notice. The fund is restricted by the nature of the donations. The Trustees make grants from this fund as a need arises.

Page 32

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20.
STATEMENT OF FUNDS (CONTINUED)
STATEMENT OF FUNDS - PRIOR YEAR
Balance at
1 January
2021
£
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Tithe Fund
152,047
GENERAL FUNDS
General Funds
1,860,792
TOTAL UNRESTRICTED
FUNDS
2,012,839
RESTRICTED FUNDS
Relief Fund
888
TOTAL OF FUNDS
2,013,727		 Income
£
-
1,947,285
1,947,285
20,422
1,967,707		 Expenditure
£
(278,617)
(1,551,601)
(1,830,218)
(7,250)
(1,837,468)		 Transfers
in/out
£
194,663
(194,663)
-
-
-		 Balance at
31
December
2021
£
68,093
2,061,813
2,129,906
14,060
2,143,966

Page 33

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2022
£
Tangible fixed assets
570,147
Fixed asset investments
1,169,119
Current assets
474,436
Creditors due within one year
(90,475)
TOTAL
2,123,227		 Restricted
funds
2022
£
-
-
16,273
-
16,273		 Total
funds
2022
£
570,147
1,169,119
490,709
(90,475)
2,139,500

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
TOTAL		 Unrestricted
funds
2021
£
606,356
1,000,803
617,906
(95,159)
2,129,906		 Restricted
funds
2021
£
-
-
14,060
-
14,060		 Total
funds
2021
£
606,356
1,000,803
631,966
(95,159)
2,143,966

Page 34

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

22.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income/expenditure for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Dividends, interests and rents from investments
Decrease in stocks
Increase in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES
23.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)
TOTAL CASH AND CASH EQUIVALENTS
24.
ANALYSIS OF CHANGES IN NET DEBT
At 1
January
2022
£
Cash at bank and in hand
546,423
546,423		 FROM OPERATING
2022
2021
£
£
(4,466)
130,239
44,989
47,579
(21,373)
(11,663)
2,537
10,049
(1,984)
(15,705)
(4,684)
7,880
15,019
168,379
2022
2021
£
£
103,011
110,587
302,708
435,836
405,719
546,423
Cash flows
At 31
December
2022
£
£
(140,704)
405,719
(140,704)
405,719

25. PENSION COMMITMENTS

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £80,212 (2021: £76,946). Contributions totalling £Nil (2021: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 35

KENNETH COPELAND MINISTRIES (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

26. OPERATING LEASE COMMITMENTS

At 31 December 2022, the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
24,960
36,436
61,396		 2021
£
25,865
60,860
86,725

27. OTHER FINANCIAL COMMITMENTS

There is a commitment at year end to pay the remaining balance of a contract for the event space for the Europe Victory Campaign in 2023, total value of the commitment is £69,800.

28. RELATED PARTY TRANSACTIONS

During the year, Kenneth Copeland Ministries made purchases of services and/or product from various businesses and organisations where a related party transaction exists.

The Charity purchased services from Living Word Christian Centre, £150 (2021: £150), where there is a common trustee.

The Charity made purchases of product and services from KCM USA, £24,620 (2021: £17,390), where a trustee is an employee of the supplying organisation.

The Charity made purchases, on an arms-length basis, from a business connected to a family member of the management team of £9,545 (2021: £nil).

The Charity made a grant to The Warehouse Church, £25,000 (2021: £nil), where there is a common trustee. The Charity also made a grant to Tutela, £3,500 (2021: £nil), where a member of the management team is a trustee.

Page 36