OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

;

REGISTERED COMPANY NUMBER: 1987227 (England and Wales) REGISTERED CHARITY NUMBER: 517324

Union

;

.

REPORT OF THE TRUSTEES AND

; FINANCIAL STATEMENTS ;

;

:

FOR THE YEAR ENDED 31 AUGUST 2021

,

‘

FOR UNION FOUNDATION

Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

:

,

UNION FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

we

,

:

Page Report of the Trustees 1 to 7 Report of the independent Auditors 8 to 10 Statement of Financial Activities , 410 | Balance Sheet 12 Cash Flow Statement 13 . Notes to the Cash Flow Statement 14 Notes to the Financial Statements 15 to 25

.

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Union's vision is the reformation of Christ's church worldwide, and its mission is growing leaders, growing churches.

As School, Publishing, Research and Mission work together, Union provides a mission ecosystem that can accelerate healthy, sustainable church growth.

The following four strategies (from our Strategic Plan) are employed to enable Union to realise its vision and achieve its mission:

Our campus is Union's home and base for residential study. Our Learning Communities around the world provide accessible, affordable theological education in the context of the local church for those who want to study parttime and continue in existing ministry or work.

Criteria or measures the charity uses to assess success in the reporting period. We measure achievement according to our four strategies:

.

Research - Engagement with pastors, theologians and scholars, nationally and internationally; theological publishing, conferences and other high-level input to theological research; helping to realise the potential of theological scholars.

School of Theology - Numbers of students; increasing numbers of healthy learning communities with sustained numbers of students; the quality of the students’ academic achievement and the level of their spiritual growth and maturity as developing leaders; the collective increase in fee income.

=

Publishing - Engagement and consumption of Union media; ‘magazines, books, video, articles, podcasts, conference attendance etc.; web traffic demonstrating engagement and usefulness of materials published on the www.unionpublishing.org website; social media engagement.

Mission - Capture and publication of mission stories from students and alumni; monitoring numbers of students across the School who go on to mission, resourcing church planting or church rejuvenation with finance and people; activities of learning hubs involved in mission in their local context.

Public benefit

The organisation's trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Page 1

;

,

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Public benefit

Union Foundation is a Christian ministry which primarily benefits the international church constituency it serves and enables healthy growth. These benefits stem from the four strategies which work together to ensure health and growth for the church around the world. Through the School of Theology, the blessings of the Christian Gospel are extended through preaching and teaching, youth work, social care, community work and the many other areas in which our graduates impact society at large.

Union covers a range of learning: at a high academic level, our published research benefits the knowledge base of the international church and church lay leaders are equipped by the provision of free articles and inexpensive books for their personal growth. Union is keen to maximise the effectiveness of its students by seeing them strategically deployed where they can be most useful in mission. We do this by working closely with many churches, networks and agencies who offer great expertise and specific geographical knowledge. A number of new churches, which are now serving and helping local communities in the UK and in Europe, have been established with support from Union Mission funding.

Union's premises and facilities are made available as an ongoing resource to benefit and serve the needs of local churches and host conferences on issues of local, national and global significance.

ACHIEVEMENT AND PERFORMANCE

Significant charitable activities and achievements against objectives.

Our School of Theology (UST) is validated by the Open University as well as ECTE for its undergraduate and graduate taught programmes. UST has maintained quality assurance from the QAA for its degree programmes validated by the OU. As a result, UST is able to sponsor international students under the Tier 4 visa regulations, and our UK courses are designated for student finance. Two more Learning Communities for Graduate Diploma and Masters’ students have been established bringing the total number established to 40 in North America and Europe. Our School has enjoyed their third full year of OU validated undergraduate and postgraduate courses (with student finance and visas) and the uptake has been very encouraging.

The last two academic years are particularly encouraging because they represent growth through the pandemic, while the Higher Education landscape is continually changing. This growth reflects the robustness of our model. The number of registered degree students stands at 245, with Priscilla and the Anglican Theology and Practice course bringing the total registered to 270.

Throughout the pandemic Union's Publishing team have been producing video media for social media and website teaching content, and conference talks with live stream. We launched our branded series with a major Christian publisher for eight book volumes in January.

Union Mission's grants have resourced 18 church projects during the year, with around £111k having been awarded to churches. Union has awarded £1.12 million for church planting since 2017. Some of our students and Alumni are being referred to this facility as well as new projects to Union through partner donors. Projects have been reported on with some contributing to the Union Mission blog on www.union-mission.org. . .

,

Summary of charity's progress against its objectives.

, ,

Union is committed to developing its ministry model globally to serve the Church for healthy and sustainable growth. This is resulting in a growing international profile in the area of theological resources, education and church mission.

;

Evidence of the charity's progress, measured by the achievement of its strategic plan, demonstrates that the ministry model is working in the way it is serving the church. Union Publishing continues to produce world-class resources which help Christians enjoy God and serve his church, mobilising potential leaders to be trained for ministry. We hear of pastors studying our resources for sermon preparation and friends reading articles together on Zoom. Our School of Theology has made theological education more accessible through its Learning Communities and flexible BA along with scholarships. It has secured great collaborative partners for degree validation, excellence with the Quality Assurance Agency, student finance and tier 4 student visas. This has allowed the charity to move forward and achieve its strategic objectives in a timely manner. UST currently operates 27 learning communities established in North America and Europe. 25% of UST graduates are establishing a new church or re-establishing a dying one, either during or after their studies, with some accessing the church planting fund. All are resulting in growth of the church through the Union family. ;

Page 2

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

We are pleased to report positive growth in our finances this year.

Income

Total income was £1.41m (£1.32m last year). Fee income from students on our various courses was £566k (2020: £504k), an increase of £62k (12%) during a difficult pandemic year. General donations, legacies and grants in support of Union's operations and development were £691k, an increase of £115k. Substantial donations were made to help us continue developing our online learning platform and regional learning hubs. We also received funds of £127k (2020: £210k) for making grants to church planting projects in the UK and Europe.

Expenditure

Expenditure ; Total expenditure was £1.34m (£1.36m last year). Our general operating expenditure (before mission grants) increased by £109k. Much emphasis has been placed this year on the development of our online learning provision. The higher spending also reflects the granting of more scholarships, the increased cost of salaries following a Board review, higher level COVID cleaning, and the development of our publishing ministry. Some savings were made in the areas of travel expenses, library costs and food provision again due to the effects of COVID.

Net income

We finished the year with a surplus of £74k, reversing last year's deficit of E38k

Principal risks and uncertainties and summary of plans and strategies for managing the risks.

The principal risks faced by Union as outlined in our corporate Risk Register are the challenges of a small-sized enterprise with potential administrative and faculty shortages as a consequence, and some pressure on cash flow as Union grows, with investment on online development as well as broadening its activities into research, publishing and mission.

Coronavirus risk

The risk of pandemic had been identified in our Business Continuity Plan. It was a particularly unpredictable risk from the outset and as such the course of action was reactionary and it was important to follow government guidance and legislation. As an alternative HE provider we had our own specific guidance from the Welsh Government. It was critical to have risk assessment to be carried out prior to reoccupation of the campus, but also critical to assess the risk to business continuity. Fortunately, Union was in a position to adapt easily to remote operations for as long as needed without detriment to operations or service to our students. Our vulnerability is in the form of staffing and the dangers outlined below posed by Covid.

UST faculty staff shortages

There is a moderate risk that UST may experience staff shortages due to ill health or pandemic which could impact on the delivery of specialised modules. UST's policy enables us, in the event of staff absences, to rearrange classes at another convenient date or provide an alternative lecturer to deliver lectures. A number of modules are taught by integrated teams, and others in the team can substitute for absences of others in the staff team. Because the teaching delivered in Learning Communities is pre-recorded in advance of the academic year, there is no risk of non-delivery of this material, and Learning Communities are allowed backup copies in case there is interruption to the live online delivery.

\f due to staff shortages we are unable to provide students with the modules that were agreed when they entered the programme, students will be offered suitable alternatives. The School has appointed more faculty members as well as admin staff to help mitigate this risk.

Cash flow

;

;

Union has undergone a transformation from a seminary with a vision to educate pastors into a larger ministry with a larger vision to enable healthy church growth through investing in leaders and churches. This change in vision has meant changes to the organisation, its structure, its training model & provision and its processes, and a complete re-branding exercise. This comes with significant investment.

We continue to be challenged by the increasing costs of providing theological education, including the cost burden of regulatory compliance and programme validation. However, there are a number of good developments and plans to ensure we have adequate funds to meet these challenges and additional risk posed by the pandemic:

Page 3

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Reserves policy

The trustees aim to maintain sufficient resources to fund the running and development of the Foundation and the ownership of the buildings and other fixed assets, in accordance with the charitable objects. The aim over time would be to obviate the need to use an overdraft facility. Subject to funds being available, it is our policy is to maintain a reserve of approximately 25% of annual expenditure.

At 31 August 2021 total reserves were £1,832,960 (2020: £1,758,953). Of which £55,512 (2020: £21,799) is represented by restricted funds. At the Balance Sheet date £2,030,341 (2020: £2,038,431) has been invested in the charity's fixed assets and therefore the charity is currently left with no free reserves.

Funds

Funds received for specific purposes are shown as restricted funds in the accounts. In addition, the trustees designate some of the donations received towards scholarships for students.

FUTURE PLANS

Union's strategic vision is the reformation of Christ's church worldwide. We want to help recruit, raise, deploy and support church leaders to grow the church. Union aims to have a specific impact in Europe by making grant funding available for graduates seeking to establish a new church or rejuvenate an existing one. Union plans to level up it's network of alumni, learning communities and church planting hubs by creating the Reformation Fellowship. This will carry it's own membership, regular magazine and regional gatherings.

Newton House is being developed and expanded to be a national centre for theological research. Union will keep developing its four key areas in order to serve the church more effectively according to its model. The Foundations Course is being developed as an onramp into formal theological education which is very accessible and designed to be done in community. This is a key development area for Union in the next year and will be unaffected by COVID.

We plan to keep investing in online infrastructure and decentralised learning, so, should there be longer term impact of COVID we will be able to adapt to such a scenario, which isn't too removed from our mode of operation. Our ministry mode! is to be flexible and accessible for the church, which will mean how people access Union will be robust enough to cope with any future lockdowns or travel restrictions. The Post-COVID era expects this from all Higher Education providers and Union has been in the providential position to have invested and developed in this direction for many years. The pandemic has merely accelerated what was already happening in the sector.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document Union Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 7 February 1986 and amended on 20 June 2003 and 2 March 2006 and again on 27 Feb 2011. It is registered as a charity with the Charity Commission. Day to day management is undertaken by the President, under authority delegated by the Board of Trustees.

Recruitment and appointment of new trustees Trustees are appointed to represent the global Christian community across various denominational and non-denominational groupings making up the conservative (largely Reformed) Christian constituency which the School serves. Trustees are appointed who have an appropriate range of skills and experience for the effective strategic management of the charity. They are recruited internationally to reflect the governance and structure of Union. The charity is able to benefit from trustees who bring a greater range of strategic and management expertise and experience from national and international business and charitable organisations.

Page 4

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

;

:

Induction and training of new trustees

New Board Members are carefully chosen for the particular skills and experience they bring to the School. Each new trustee receives a copy of the latest annual accounts, the Memorandum and Articles and the Charity Commission's advice on trustee responsibility. Most new Board Members already have considerable experience as charity trustees. The President liaises with Board Members, particularly via the Chairman, providing them with information about the activities and general operations. This facilitates decision-making by the Board with regard to strategic initiatives. Trustees are required to carry out a self-appraisal periodically, a board development plan being created from the feedback to ensure the health of the Board.

Organisational structure

The Board of Trustees administers the charity and meets three times a year. The President was appointed by the trustees to manage the day-to-day operations of the charity and present regular reports to the trustees. :

The Executive Director serves the Trustee Board as Company Secretary, who with the Associate Director are the President's Executive Team.

The Provost was appointed by the President to manage the day-to-day operations of the School of Theology. School board meetings are held rotationally on a weekly basis to facilitate the smooth running and to maintain good communication.

Key management remuneration

A new salary scale was adopted by the Board in 2013/14. The university sector, combined with research into other charitable companies, formed the benchmark. Since then, Union has fully brought salaries into fine with the scale and address anomalies as necessary. We normally apply a 2% pay increase to keep up with inflation. The trustees have carried out a full review of key staff remuneration in 2021.

Related parties

Union has a strong working partnership with SaRang Church in South Korea. The leaders and congregation in Seoul have been very supportive of the partnership over a number of years. Union Foundation US was set up by Union Foundation to help Union fundraise in the US and operates as fiscal sponsor.

Risk management

Union has a robust Risk Management Framework for the School of Theology which includes a risk register co-owned by several lead staff, identifying major risks to which the School is exposed, There is a comprehensive IT Disaster Recovery plan in place. The trustees are satisfied that the right systems are in place to meet major risks and ensure Union is prepared to tackle challenging scenarios through Union's Business Continuity Management and Plan. This has been achieved in collaboration with the Board.

The annual financial accounts are professionally audited externally, and management accounts are provided to the trustees on a monthly basis. Insurance cover is reviewed annually, informed by an independent expert. All health and safety systems are regularly scrutinised.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 1987227 (England and Wales)

.

Registered Charity number 517324

;

;

Registered office Bryntirion BRIDGEND CF31 4DX

Page 5

UNION FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Trustees

Rev Sam Ko (Chairman) Sung Joo Kim ; - resigned 11 September 2020 ; , Ki il Kim - resigned 11 September 2020 Rev Michael P Tindall Rev Dr Douglas Birdsall Joong Myung Jung - resigned 1 January 2021 Rev Steve Levy Prof Michael Joyston Fernando Joongija Kim Sean Shepley Dr Daniel Shin - appointed 11 September 2020 Yun Lee : - appointed 26 February 2021 : Dr Gwenfair Adams - appointed 10 September 2021 Auditors Watts Gregory LLP Chartered Accountants & Statutory Auditors Elfed House - Oak Tree Court : : Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Solicitors Loosemores Alliance House 18-19 High Street CARDIFF CF10 1PT

Senior staff President of Union Rev Dr Michael Reeves Executive Director of Union Dr Joel Morris Provost Dr Dustin Benge

Page 6

5

;

.

.

UNION FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

.

The trustees (who are also the directors of Union Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

:

;

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware: . , :

AUDITORS

The auditors, Watts Gregory LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the Board of Trustees on ont S,,| ) 293 2nd signed on its behalf by:

----- Start of picture text -----
S Ko - Trustee
----- End of picture text -----

iin

;

.

;

Page 7

:

:

:

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF UNION FOUNDATION

Opinion

We have audited the financial statements of Union Foundation (the ‘charitable company') for the year ended 31 August 2021 which comprise the Statement of Financial Activities; the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework ‘that has been applied in their preparation is applicablelaw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

; ;

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

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern in exceptional or unforeseen circumstances.

Other information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

; ;

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

Matters on which we are required to report by exception

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

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF UNION FOUNDATION

;

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, 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.

: Our responsibilities responsibilities for the audit of the the audit of the audit of the of the the financial statements

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

;

Based on our understanding of the group and the parent charitable company and industry, we identified the principal risks of non-compliance with laws and regulations, including those related to UK tax legislation and considered the extent to which any non-compliance might have on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and ensured that all those involved in the audit undergo regular update training, including on how to identify or recognise fraud and non-compliance with laws and regulations.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risk related to posting inaccurate journals. We addressed these risks by carrying out specifically targeted procedures, which included:

As-outlined above, reasonable assurance is a high level of assurance, but is not a guarantee that a material misstatement may always be detected. The extent to which our procedures are capable of detecting material misstatements or _ irregularities, including fraud, is therefore subject to the inherent limitations of an audit. There is therefore, an unavoidable risk that a material misstatement may not come to light, in particular, where non-compliance with laws and regulations are remote from events and transactions reflected in the financial statements or where fraud or errors arise due to intentional misrepresentation, forgery, concealment, management override and/or collusion.

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

Page 9

;

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF UNION FOUNDATION

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable * company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Mortimer (Senior Statutory Auditor)

for and on behalf of Watts Gregory LLP Chartered Accountants & Statutory Auditors ; Elfed House

Oak Tree Court Cardiff Gate Business Park , CARDIFF County of Cardiff CF23 8RS

,

;

;

2 March 2022

:

:

‘

‘

Page 10

UNION FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |;|.|Unrestricted|Restricted|;|Total|Total|-| |funds|funds|funds|funds| |Notes|£.|£|£|£| |INCOME AND|ENDOWMENTS FROM| |Donations and|legacies|3|593,802|97,207|691,009|575,608| |Mission|grants|2,121|124,824|126,945|209,927| |Charitable|activities|6| |Theological|training|566,076|-|566,076|503,710| |Other|trading|activities|4|~|25,953|-|25,953|28,852| |Investment|income|5|8|-|8|66| |Other income|2,006|-|2,006|2,590| |Total|1,189,966|222,031|1,411,997|1,320,753| |-|EXPENDITURE ON|:|;|;| |Charitable|activities|7|,| |Theological|training|1,112,812|76,106|1,188,918|1,092,517| |Mission|grants|23,988|112,212|136,200|265,814| |Union|publishing|12,872|-|12,872|-| |Total|1,149,672|188,318|1,337,990|1,358,331| |NET INCOME/(EXPENDITURE}|40,294|33,713|74,007|(37,578)| |RECONCILIATION|OF FUNDS| |Total|funds|brought forward|1,737,154|21,799|1,758,953|1,796,531| |TOTAL FUNDS CARRIED FORWARD|1,777,448|55,512|1,832,960|1,758,953|

----- End of picture text -----

.

.

The notes form part of these financial statements

Page 11

UNION FOUNDATION

;

BALANCE SHEET 31 AUGUST 2021

----- Start of picture text -----
a a e
----- End of picture text -----

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2021|2020| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |:|.|Notes.|£|£|:|£|£-| |FIXED ASSETS| |Tangible|assets|14|2,030,341|-|2,030,341|2,038,431| |CURRENT ASSETS| |Debtors|15|44,307|10,000|54,307|57,555| |Cash at bank and|in|hand|112,510|45,512|158,022|68,772| |156,817|55,512|212,329|126,327| |_|CREDITORS| |Amounts|falling due within one year|16|(180,019)|-|(180,019)|(165,597)| |NET CURRENT ASSETS|(23,202)|55,512|32,310|(39,270)| |TOTAL ASSETS LESS CURRENT LIABILITIES|2,007,139|55,512|2,062,654|1,999,161| |CREDITORS| |Amounts|falling due after more than one year|17|(229,691)|-|(229,691)|(240,208)| |NET ASSETS|1,777,448|55,512|1,832,960|1,758,953| |FUNDS|21| |Unrestricted|funds|1,777,448|1,737,154| |Restricted funds|55,512|21,799| |TOTAL FUNDS|1,832,960|1,758,953|

----- End of picture text -----

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 252 torn and were signed on its behalf by: Ko - Trustee

The notes form part of these financial statements

ee Page 12 .

UNION FOUNDATION

CASH FLOWSTATEMENT
FORTHEYEARENDED31AUGUST2021 . .
2021 2020
Notes £ £
Cash flowsfrom operating activities
Cash generated from operations 1 191,725 (7,124)
Interest paid (20,934) (17,819)
Netcash provided by/(used in)operating activities 170,791 (24,943)
Cash flowsfrom investing activities
Purchaseoftangible fixed assets
Interest received		 (48,438)
8		 (26,993)
66
’ Net cash used in investing activities ; (48,430) ~ (26,927)
Cash flowsfrom financing activities
New loans in year - 270,000
Loan repayments inyear (33,111) , (264,817)
Netcash (used in)/provided byfinancing activities (33,111) 5,183
Change incash and cash equivalents inthe
reporting period 89,250 (46,687)
Cash and cash equivalents atthe beginning
ofthe reporting period 68,772 115,459
Cashand cash equivalents attheend ofthe
reportingperiod 158,022 68,772

.

The notes form part of these financial statements

Page 13

UNION FOUNDATION

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

1. RECONCILIATION OFNETINCOME/{EXPENDITURE) TONETCASHFLOWFROMOPERATING RECONCILIATION OFNETINCOME/{EXPENDITURE) TONETCASHFLOWFROMOPERATING OPERATINGACTIVITIES ACTIVITIES
2021 2020
£ £
Net income/(expenditure) forthereportingperiod (asper the Statementof
Financial Activities) 74,007 (37,578)
Adjustments for:
Depreciation charges 56,528 53,852
Interest received (8) (66)
Interest paid 20,934 17,819
Decrease in debtors 3,248 21,319
: Increase/(decrease) in creditors
:		 : 37,016 (62,470)
Netcash provided by/(used in)operations 191,725 (7,124)
2. ANALYSISOFCHANGES INNETDEBT
At 1/9/20 Cash flow At 31/8/21
£ £ £
Net cash
Cash at bankand in hand 68,772 89,250 158,022
68,772 89,250 158,022
Debt
Debts falling duewithin 1 year (29,092) 833 (28,259)
Debts fallingdue after 1 year (220,908) 10,517 (210,391)
(250,000) 11,350 (238,650)
Total (181,228) 100,600 (80,628)

.

The notes form part of these financial statements

Page 14

UNION FOUNDATION

;

;

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

  1. STATUTORY INFORMATION

Union Foundation is a company limited by guarantee, incorporated in Wales within the United Kingdom. The registered office is Bryntirion, Bridgend CF31 4DX.

The financial statements are prepared in Sterling (£), the company's functional currency, and rounded to the nearest pound.

The principal activities and nature of the charity's operations is to provide rigorous biblical and accessible education, training and resources for church leaders and church members to enable their personal and corporate growth in Christ.

’ The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

  1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

At 31 August 2021 there were net current assets of £32,3210 (2020 - current liabilities of £39,270). Union has continued to grow its international profile, as evidenced by the calibre of recent faculty appointments. Union is also continuing to experience a growth in student numbers and learning communities. The establishment of Union US has proved helpful in raising additional financial support, and this will be developed further. A number of plans are in hand to develop courses and extend our reach, which will each bring financial benefit to the organisation. Consequently, the trustees are confident that last year's positive move towards a net current asset position will continue, and as such consider the going concern basis adopted for the preparation of the financial statements to be appropriate.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. This includes capital grants.

Donations and legacies income

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

;

Income from charitable activities

. . .

income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

;

Income from other trading activities

Income from other trading activities includes income received under contract. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Investment income

Investment income is recognised on a receivable basis.

Page 15

continued...

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

;

  1. ACCOUNTING POLICIES - continued

Basis of recognition of liabilities

Expenditure is recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. {t includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. : :

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity as well as a proportion of salaries based on an approximation of time spent in this area.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis. Allocation of expenses has occurred between direct expenditure and support costs for some wages and salaries and related costs based on an estimate of time spent in those areas. A similar allocation has occurred for the premises and related costs based on an estimate of the areas used.

Tangible fixed assets

All fixed assets are initially recorded at cost. The charity has taken advantage of the option available on transition to FRS 102 to treat revalued assets as recorded at deemed cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Fixtures, furniture and equipment 20% straight line Property 2% straight line Website 20% straight line Land Nil

Taxation

The charity is exempt from corporation tax on its charitable activities.

Debtors

.

Trade debtors and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due. . Creditors : , , : Creditors are recognised where the charity has a present obligation resulting from a past event that will probably ; result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction, Exchange differences are taken into account in arriving at the operating result.

Page 16

continued...

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

;

UNION FOUNDATION

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

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

:

Pension costs and other post-retirement benefits

:

The charitable company operates a defined contribution pension scheme, and it contributes to employees’ individual personal pension plans. Contributions payable to the schemes are charged to the Statement of Financial Activities in the period to which they relate.

;

Termination payments ; : : The charitable company recognises termination benefits as a liability and an expense only when the entity is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Fund accounting

Unrestricted funds are those which may be used for general charitable purposes at the discretion of the trustees.

Restricted funds have been received with specific stipulations from the donor as to their use and may only be used for such purposes.

Transfers are made from restricted to unrestricted funds once the conditions for the restriction have been met.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

.

DONATIONS AND LEGACIES

3. DONATIONS ANDAND LEGACIES
2021 2020
£ £
Gifts and donations 638,103 560,315
Donations towards Mission Grants 126,945 209,927
Legacies 41,044 532
Grants 11,862 14,761
817,954 785,535
. Grants received,included intheabove,areasfollows: . .
.
.		 . 2021 2020 .
£ £
HMRCJob Retention Scheme Grant 11,862 14,761
4. OTHERTRADINGACTIVITIES
2021 2020
£ £
Conference centre income 1,786 3,555
Rental income 24,167 25,297
25,953 28,852

Page 17

continued...

UNION FOUNDATION

:

:

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

;

,

5. INVESTMENTINCOME
; , ; ; 2021 2020:
£ £
- Bank interest receivable 8 66
6. INCOME FROM CHARITABLEACTIVITIES
2021 2020
Activity £ £
Incomefrom college fees Theological training 566,076 503,710
7. CHARITABLE ACTIVITIES COSTS
, Direct Support ,
Costs (see costs (see
note 8) note 9) Totals
£ £ £
Theological training
Mission grants		 : 969,471
112,212		 219,447
23,988		 ~ 1,188,918
136,200
Union publishing 12,872 - 12,872
1,094,555 243,435 1,337,990
8. DIRECTCOSTSOF CHARITABLEACTIVITIES
2021 2020
£ £
Staff costs 518,673 486,726
DIS life assurance cover 4,092 3,404
Rates and water 15,333 15,133
Insurance 7,988 9,219
Lightand heat 24,119 25,414
Telephone 7,348 7,723
Postage and stationery 7,420 4,889
Bursary donations 37,770 4,210
Visiting lecturers’ expenses 22,250 28,438
Library 23,042 30,535
University invigilation fees 54,589 60,153
IT 35,014 38,121
Repairs and maintenance 30,556 21,316
Service contracts 1,276 1,920
Cleaning 22,808 12,870
Provisions/Catering 11,151 17,140
_ Staffexpenses:
Miscellaneous expenses		 ; . . 9,482
3,325		 6,804
3,946
Provision for bad debts , : 8,126 - ,
Grants to Church Planting projects 112,212 240,224
Learning Hubs, studio & editing 15,315 14,383
Theological services : ~ 56,612 39,078 '
Union publishing 12,872 -
Depreciation 53,182 50,767
1,094,555 1,122,413

Page 18

continued...

;

,

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |9.|SUPPORT|COSTS| |;|;|Staff|;|‘Governance|,| |costs|Depreciation|Other|costs|Totals| |£|£|£|£|£| |Theological|training|85,052|3,011|115,064|16,320|219,447| |Mission|grants|9,450|335|12,390|1,813|23,988| |94,502|3,346|127,454|18,133|243,435| |10.|||NET INCOME/{EXPENDITURE)|

----- End of picture text -----

Net income/(expenditure) is stated after charging/(crediting):

:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2021|2020| |£|£| |Auditors'|remuneration|4,500|4,759| |Depreciation|-|owned|assets|56,528|53,852| |Hire|of|plant and|machinery|,|‘|4,092|'|3,404| |Staff|pension|contributions|-|30,665|

----- End of picture text -----

11. TRUSTEES’ REMUNERATION AND BENEFITS

There was no trustees' remuneration or other benefits for the year ended 31 August 2021 or for the year ended 31 August 2020,

.

Trustees' expenses

Expenses totalling £189 (2020 - £190) were paid on behalf of 1 (2020 - 1) trustee during the year for travel and accommodation costs. No further amounts were paid to trustees.

12, STAFF COSTS

:

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2021|2020| |£|£| |Wages|and|salaries|534,518|503,674| |Social|security|costs|46,360|42,667| |Other|pension|costs|32,297|30,665| |613,175|577,006| |The|average|monthly|number|of employees|during|the|year was|as|follows:|.|.| |2021|2020| |:|.|,|20|18|

----- End of picture text -----

No employees received emoluments in excess of £60,000. _

,

The total key management personnel remuneration benefits paid during the year were £172,482 (2020 - £146,832).

Page 19

continued...

:

. :

.

:

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

‘

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Unrestricted|Restricted|Total| |funds|funds|funds| |£|£|£| |INCOME AND|ENDOWMENTS FROM| |Donations|and|legacies|568,748|216,787|785,535| |Charitable|activities| |Theological|training|503,710|-|503,710| |Other trading|activities|,|28,852|-|:|28,852| |Investment|income|66|-|66| |Other|income|;|.|2,590|-|2,590| |Total|1,103,966|216,787|1,320,753| |EXPENDITURE ON|:|:|:| |Charitable|activities| |Theological|training|1,088,307|4,210|1,092,517| |Mission|grants|23,100|242,714|265,814| |Total|1,111,407|246,924|1,358,331| |NET INCOME/(EXPENDITURE)|(7,441)|(30,137)|(37,578)| |Transfers|between funds|2,885|(2,885)|-| |Net movement|in funds|(4,556)|(33,022)|(37,578)| |RECONCILIATION|OF FUNDS| |Total funds|brought forward|1,741,710|54,821|1,796,531| |TOTAL FUNDS|CARRIED FORWARD|1,737,154|21,799|1,758,953|

----- End of picture text -----

)

Page 20

continued...

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

UNION FOUNDATION

.

14. TANGIBLE FIXED ASSETS

:

14. TANGIBLE FIXED ASSETSASSETS
: : : Fixtures, :
furniture
Freehold and
property equipment Website Totals
£ £ £ £
COST
At 1 September 2020 2,361,076 289,794 60,246 2,711,116
Additions
Disposals		 -
-		 23,238
(13,283)		 25,200
-		 48,438
(13,283)
At31August2021 ' 2,361,076 299,749 85,446 2,746,271
DEPRECIATION ;
At 1 September 2020 389,474 240,403 42,808 672,685
Charge foryear 25,622 17,733 13,173 56,528
Eliminated on disposal - (13,283) - (13,283)
At31 August2021 415,096 * 244,853 55,981 © 715,930
NETBOOKVALUE
At 31 August 2021 1,945,980 54,896 29,465 2,030,341
At31August2020 1,971,602 49,391 17,438 2,038,431

Included in freehold property is land recorded at deemed cost of £1,080,000 which is not depreciated.

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020
£ £
Trade debtors 29,111 47,008
Otherdebtors 1,455 991
Prepayments and accrued income 23,741 9,556
54,307 57,555
16. CREDITORS:AMOUNTSFALLINGDUEWITHINONEYEAR
2021 2020
£ £
Bank loans and overdrafts (see note 18) 28,259 29,092
Social security and othertaxes taxes 13,684 13,485
. Other creditors
.		 . . 10,594 15,457
Interestfree loans ; ; 13,499 35,259
Accruals and deferred income 113,986 72,304
; ; . 180,019 165,597
Included in Accruals and deferred income is:
2020 2019
£ £
Deferred income brought forward 112,839 112,031
Fees received in advance 64,380 112,839
Released to fees (112,839) (112,031)
Deferredincomecarried forward 64,380 112,839

Page 21

continued...

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |17.|CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR| |,|;|;|;|2021|2020| |£|£| |Bank|loans|(see|note|18)|210,394|220,908| |Interest|free|loans|19,300|19,300| |229,691|240,208| |Amounts|falling|due|in|more|than|5|years:| |Bank|loans|payable|by instalments|104,544|129,177| |18.|LOANS| |An|analysis|of the|maturity|of|loans|is|given|below:| |2021|~|2020| |£|£| |Amounts|falling|due|within|one|year on|demand:| |Bank|loans|28,259|29,092| |Amounts|falling|between|one|and|two|years:| |Bank|loans|28,799|29,092| |Amounts|falling|due|between|two|and|five|years:| |Bank|loans|-|2-5|years|87,275|87,275| |Amounts|falling|due|in|more|than|five|years:| |Repayable|by|instalments:| |Bank|loans more|5|yr by|instal|94,317|104,541| |19.|LEASING AGREEMENTS| |Minimum|lease|payments|under|non-cancellable|operating|leases|fall|due|as|follows:| |2021|2020| |£|£| |Within|one|year|10,209|5,742| |Between|one|and|five|years|25,314|7,473| |.|.|.|-|35,523|13,215| |20.|SECURED|DEBTS| |The|following|secured|debts|are|included|within|creditors:| |2021|2020| |£|£| |Bank|loans|238,650|250,000| |The|bank|borrowings|are|secured|bya|first|legal|charge|over the|property.|

----- End of picture text -----

Page 22

continued...

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

21. MOVEMENT IN FUNDS

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |movement|At| |At|1/9/20|in|funds|31/8/21| |£|£|£| |Unrestricted|funds| |General|fund|964,030|40,294|1,004,324| |Revaluation|reserve|773,124|-|773,124| |1,737,154|40,294|1,777,448| |Restricted|funds| |Bursary|gifts|:|2,106|(1,399)|707| |Welsh|publications|1,290|-|1,290| |SaRang scholarship|fund|7,443|-|10,000|17,443| |SaRang|projects|fund|8,687|12,612|21,299| |Chairman's|expenses|fund|2,273|-|2,273| |Language|Prize|Fund|-|2,500|2,500| |Newton|House fund|-|10,000|10,000| |21,799|33,713|55,512| |TOTAL FUNDS|1,758,953|74,007|1,832,960| |Net|movement|in|funds,|included|in|the|above|are|as|follows:| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|1,189,966|(1,149,672)|40,294| |Restricted|funds| |Bursary|gifts|9,507|(10,906)|(1,399)| |SaRang|scholarship fund|10,000|-|10,000| |SaRang|projects|fund|124,824|(112,212)|12,612| |E|Union|65,200|(65,200)|-| |Language|Prize|Fund|2,500|-|2,500| |Newton|House fund|10,000|-|10,000| |222,031|(188,318)|33,713| |TOTAL FUNDS|1,411,997|(1,337,990)|74,007|

----- End of picture text -----

Page 23

continued...

:

:

;

:

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2021

21. MOVEMENT IN FUNDS - continued

.

----- Start of picture text -----
||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Comparatives|for movement|in|funds|:|.|:| |Net|Transfers| |movement|between|At| |At|1/9/19|in|funds|funds|31/8/20| |£|£|£|£| |Unrestricted|funds| |General|fund|968,586|(7,441)|2,885|964,030| |Revaluation|reserve|773,124|-|-|773,124| |:|1,741,710|(7,441)|2,885|1,737,154| |Restricted|funds| |Bursary|gifts:|2,106|-|7|2,106| |Welsh|publications|1,290|-|-|1,290| |SaRang|scholarship|fund|7,443|-|-|7,443| |SaRang|projects|fund|2,218|6,469|-|8,687| |Building|and|roofing|fund|-|2,885|(2,885)|-| |Chairman's|expenses|fund|:|2,273|-|--|2,273| |Europe|Collaboration fund|39,491|(39,491)|-|-| |54,821|(30,137)|(2,885)|21,799| |TOTAL FUNDS|1,796,531|(37,578)|-|1,758,953| |Comparative|net movement|in|funds,|included|in|the|above|are|as|follows:| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|1,103,966|(1,111,407)|(7,441)| |Restricted|funds| |Bursary|gifts|450|(450)|-| |SaRang|scholarship|fund|3,760|(3,760)|-| |SaRang|projects|fund|171,071|(164,602)|6,469| |Building|and|roofing|fund|2,885|-|2,885| |Europe|Collaboration|fund|38,621|(78,112)|(39,494)| |216,787|(246,924)|(30,137)| |TOTAL FUNDS|1,320,753|(1,358,331)|(37,578)| |Bursary|gifts|are|donations|made|towards|the|fees|of|students|at the|college.|:|:|

----- End of picture text -----

‘ The Welsh Publications fund represents a donation received for the purpose of funding the publication of books in the Welsh language. ~ : : :

The SaRang scholarships fund consists of donations received from the SaRang Community Church to provide assistance for students towards their fees.

The SaRang projects fund is for the purpose of supporting mission projects, mainly in the UK and Europe. These are, generally, either the planting of new churches or the revitalization of existing churches.

The Chairman's expenses fund represents donations received from SaRang Community Church to cover the travel expenses of the Chairman and sundry other costs at his discretion.

Page 24

continued...

FOR THE YEAR ENDED 31 AUGUST 2021

UNION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS- continued

21. MOVEMENT IN FUNDS - continued

The Europe Collaboration fund is a funding platform for church planting in Europe. Union acted as the fiscal sponsor to administer and distribute funds between 2017-18 and 2019-20. During 2019-20 the partnership came to an end; all nominated funds were distributed, and the balance of funds was returned to Europe Collaboration.

Newton House is Union's theological research centre in Oxford. A fund has been created to receive donations from those who wish to support its development. In 2020-21, a donation of £10,000 was made into the fund.

Language Prize

In accordance with the donor's wishes, a fund has been created to help support and encourage training in the biblical languages. The fund will be used to award prizes to the best performing students in Greek and Hebrew, as decided by the Programme Leaders.

E-Union

Funds were received for the purpose of developing Union's online theological education provision globally, to make it accessible and affordable to all who wish to train for church ministry. The funds were released throughout the year to expenditure on staff costs, IT and editorial work.

22. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined contribution pension scheme and contributes to employees’ personal pension plans. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions paid by the company and amounted to £32,297 (2020 - £30,665). At the year end there were contributions of £5,028 (2020 - £6,426) outstanding.

23. RELATED PARTY DISCLOSURES

An interest free loan of £5,000 (2020 - £13,760) was owed to Rev S Ko at the year end.

A salary of £1,050 was paid to a close relation of key management personnel during the year.

Union Foundation and SaRang Church have a formal agreement to work together. During 2021 SaRang donated a total of £397,745 (2020 - £364,381).

;

Union Foundation received donations of £182,248 (2020 - £209,753) from Union Foundation US (a not-for-profit organisation incorporated in the United States). Joel Morris and Mike Reeves, key management personnel with Union Foundation are directors of Union Foundation US.

Page 25