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2021-12-31-accounts

Company Registration Number: 02498199 Charity Number: 803575

WorldShare

Financial Statements For the Year Ended 31 December 2021

Contents:

Directors report Page 2-17 Company information Pages 17-21 Directors responsibilities Pages 21-22 Independent examiner's report Pages 23-24 Statement of financial activities Page 25 Balance sheet Page 26 Statement of cash flows Page 27 Notes to the accounts Pages 28-39

WorldShare

Directors’ Report For the Year Ended 31 December 2021

Report of the Directors for the year ending 31 December 2021

The Trustees are pleased to present their annual directors’ report, together with the financial statements of the charity for the year ended 31st December 2021; which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2015).

Chair’s Report

It is a pleasure to introduce WorldShare’s 2021 Annual Report. Though faced with the continuing impact of Covid-19, WorldShare has experienced significant growth during 2021. We were encouraged by and grateful for the continuing generosity of our supporters that have responded to and stood alongside WorldShare and its partner ministries during this last year. Their support has enabled WorldShare to continue to empower local Christian partners, as they share God’s love in practical ways with some of the world’s most vulnerable communities, providing both spiritual and material support to their local communities.

During 2021, Harriet Robson joined the staff. This was a timely addition as it helped not only introduce much needed experience and skill but also helped to cover Emily Hobb’s maternity leave. On behalf of my fellow trustees, I want to acknowledge and thank all the staff of WorldShare for the effort and initiative demonstrated throughout the year. Though having to work for the most part from home, they have managed to retain a sense of unity and kept WorldShare relevant, effective, growing and solvent.

Covid-19 continued to pose a challenge during 2021 for many of WorldShare’s ministry partners. Covid not only threatened local health facilities’ ability to cope but also the food security of many impacted communities. This was particularly evident in the response by its ministry partners in the Amazonas state of Brazil and India, where both oxygen and food were desperately needed and provided. However, other disasters occurred that demanded a response, such as the earthquake in Haiti and the volcanic eruption in the Democratic Republic of Congo. WorldShare was able to send out timely appeals, which were met with a most generous response from supporters.

During 2021, besides continuing to support its ministry partners’ regular activities around the World and these activities are described in detail in the following Directors’ Report.

We were pleased to welcome Victoria Balasubramanian and Neil Brighton as trustees to the board during 2021. However, we were sad to accept the resignations of Sarah Kelsall, Matthew Forsyth and Richard Cartridge from the board after several years of service. Their participation and wise counsel will be missed. We wish them well.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

2021 was another very encouraging year for WorldShare. I wish to thank and acknowledge the staff’s significant contribution to this outcome, ably led by the CEO Alan Butler. I also want to thank my fellow trustees for their support of the organisation during 2021. The trustees have maintained a close watching brief on WorldShare’s performance and financial status.

Kevin McKemey

June 2022

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

1. Objectives and Activities

Purposes of the Charity

WorldShare was founded in China in 1943 with the express intention of releasing Chinese Christians to share their faith through words of comfort and hope and through acts of compassion. The truly revolutionary act of our founders (in the context of that period) was the setting up of a Chinese indigenous organisation to direct and manage this work, and the commitment to support the Chinese leaders' vision and initiative.

Our office in the UK was founded in 1946 to support the work which by then had spread to Hong Kong and other parts of East Asia.

In the intervening years, our work has grown to a global scale, but the intention has remained the same. This is re-expressed in our mission statement:

“WorldShare partners with local Christians in some of the world’s neediest places by supporting their vision to bring about spiritual and social transformation.”

And through our objectives to: -

And our priorities are: -

Our work is not only aimed at funding specific projects (although that is highly significant) but also at being able: -

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WorldShare

Directors’ Report For the Year Ended 31 December 2021

- Our purposes Memorandum of Association (1990)

To advance the Christian faith by: -

(i) Proclaiming the Gospel of Jesus Christ to every nation in accordance with the Lord's
Great Commission to the Church.
(ii) Promoting co-operation within the worldwide Church (including the churches in
developing nations) in evangelism within and across cultures.
(iii) Encouraging the missionary work of the churches as a whole in established local
churches and ministries throughout the world with a view to making their international
and national witness more efficient and effective.
(iv) Encouraging and assisting national churches in evangelism, establishment of churches,
the growth of churches and the development of discipleship and leadership.
(v) Giving advice and counsel to national churches and their members.
(vi) Sponsoring indigenous churches and ministries for the purpose of recruiting national
workers for evangelistic purposes.
(vii) To relieve poverty, suffering and distress and prevent disease and ill health with a view
to underpinning the spiritual ministry of the national churches.
(viii) Providing food, clothing, medical assistance and educational help including Christian
education to children in need, the distribution of all forms of Christian literature and
material including Bibles, New Testaments, Gospels for the communication of the
Christian Faith throughout the world.

Main Activities

As the circumstances in which our ministry partners find themselves vary widely, we have over time helped with many different kinds of projects. Some have occurred only once in our history. Some are repeated frequently, such as:

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Although much of our work is through specific projects, there are some larger consistent areas in which we work, which are encapsulated in the following themes:

Public Benefit

In shaping our activities for the year and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

Policy on Grant Making

As noted earlier, support to our ministry partners consists of much more than just financial transfers. However, where grants are given, they are given on the following basis:

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WorldShare

Directors’ Report For the Year Ended 31 December 2021

Setting these projects in the context of long-term relationships requires us to be flexible as the circumstances in which projects are conducted change. This means that the projects can take more or less time to realise than expected, or may need to be adjusted to allow for changing local circumstances. Each project is a contribution to a greater whole, as well as being complete in itself.

Our chief executive and staff are in frequent contact with ministry partner leaders and staff by email, phone or video call and can monitor general progress and the progress of particular projects. In addition to these contacts, visits by WorldShare staff and trustees take place and we also invite leaders of the ministries to visit supporters in the UK, when the lifting of Covid-19 travel restrictions allows.

2. Achievements and Performance

Achievements

In 2021, as in 2020, our operations were significantly impacted by the Covid-19 pandemic. Clearly, the impact was felt more significantly by our ministry partners and in the communities, they work amongst, the poor, vulnerable and marginalised. Although the focus of some of our ministry partners’ work in 2021 has been in responding to the impact of the pandemic, other work has continued. Their pandemic response has included the provision of oxygen cylinders to rural Amazonian communities, medical assistance and food parcels in India and provision of food parcels and vaccination support in other areas.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

During 2021, we have the privilege of fantastic supporters and donors standing with us, enabling us to send £272,000 in grants to ministry partners up 25% on 2020 and the highest sum for more than 10 years.

Partnerships with local Christians working with the poor, vulnerable and marginalised, in some of the world’s least resourced communities, continue to be our priority.

Key Achievements by Theme:

Education:

Our long-standing commitments, to a wide range of ministries to provide education to children from resource restricted backgrounds has continued. We support 204 children through the ChildAid Scheme which provides access to education and much more.

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WorldShare

Directors’ Report For the Year Ended 31 December 2021

Health:

Community:

In many ways, the Community theme embraces all that our ministry partners do, under our high-level objective of transforming communities. Whether that be through education, healthcare, tackling injustice or disaster relief.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

community leaders, from training and support to help individuals to start and run small businesses (including provision of micro-loans) through to leadership training.

Church Planting:

Page 10

WorldShare Directors’ Report For the Year Ended 31 December 2021

Injustice:

We continued to work with our long-standing, ministry partners in their injustice work, Beginning of Life in Moldova, JKPS in Kolkata India, ChrisFon in Pakistan and also adding a new partner Wakisa Ministries in Uganda.

Page 11

WorldShare Directors’ Report

For the Year Ended 31 December 2021

Relief:

During 2021 the relief needs addressed included: -

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Achievements Against Objectives Set

With a large number and variety of projects it is of course impossible to impose a single measure or assessment for them all. Each project is carefully considered in terms of the specific goals reached against those intended (how many people helped, how great the increase in a relevant factor etc.) and in the wider terms of the benefit to the community and the contribution to the growth of the partner’s capacity. The nature of the assessment reached will inform later projects with that partner, and in other similar circumstances elsewhere.

The following were included as specific activities for 2021 in 2020’s financial report, progress is noted alongside.

Future Plans

Following various developments, WorldShare has continued to make significant strides forward in 2021, even against the tail end of the Covid-19 pandemic. The strategic and annual planning process continues to be refined and key measures are now well established to allow a frequent review of progress against the plan(s).

Key focus areas are: -

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

In addition to the strategic plan, we continue to develop a detailed Annual Plan to cover our activities over the year.

Some specific activities for 2022 include: -

3. Financial Review

2021 was a year in which, despite continued uncertainties for many, WorldShare’s faithful and committed supporters, through their generous and sacrificial giving, enabled our ministry partners to reach out to those around them more than we could have ever expected.

Our total income for the year was £522K, an increase on the amount received in 2020 of £60K (13%). Because of this generous giving by our supporters, WorldShare was able to pursue its planned projects for the year. Additionally, we were able to respond to the continued impact of Covid-19 and the subsequent restrictions on our ministry partners, helping them to serve the most needy providing food, medical care and other assistance as needed.

Funds expended on charitable activities were £445K (86%) of total income, being £82K higher than in 2020. Monetary grant payments sent to our ministry partners were £55.5K (26%) higher than in 2020, and our highest level since 2009!

Expenditure, other than grants or gifts in kind sent to our ministry partners, remained fairly static, increasing slightly by £4.6K (2%). The Finance Sub-Committee continues to meet regularly to review non-grant expenditure and look always to minimise it where it does not adversely impact on our ability to support our overseas partners.

Despite volatility across the year, due to the continued impact of Covid-19, the investment fund set up in 2014 showed an unrealised gain, with the fund increasing in value by £2.2K (9.2%) over the course of the year. These are invested in ethical funds only, with a primary objective of capital growth.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Reserve levels have increased over the year however, they still remain slightly below desired levels. During 2021, we continued to exercise due diligence in order to ensure that sufficient reserves were available that allowed us to both continue to support our ministry partners and their projects throughout the world and fund our UK operations.

We continue to monitor our reserves to ensure that they are sufficient to support WorldShare’s operations into the future, and we also continue to implement strategies that look to raise income levels and to see where cost savings can be made. By focusing on all of these, the expectation is that WorldShare will be able to continue to support its many great ministry partners and projects well into the future.

Financial Position

The total funds of the charity are made up of both restricted and unrestricted funds. At the end of the year these stood at £94K, an increase of £5K on the amount held at the end of 2020 (£89K).

Where funds are given for a specific project, these are classified as restricted. Relevant grants made, and expenditure incurred is allocated against these with the balance on these at the end of 2021 being the restricted funds figure for that period. At the end of 2021, total restricted funds were £48K, a decrease of £546 on the balance at the end of 2020.

Unrestricted funds represent the balance of unspecified donations against relevant grants, expenditure and transfers to restricted funds. These are available to be used at the Trustees discretion towards any of the objectives of the charity. At the end of the year unrestricted funds totalled £47K, an increase of £6K on the balance at the end of 2020.

Free reserves are made up of unrestricted funds less fixed assets, unrestricted sales stock and unrestricted gifts in kind held as stock. At the end of 2021, free reserves totalled £36K an increase of £2K on 2020’s figure of £34K.

Reserves Policy

The Board of Directors regularly review the Reserves Policy, to ensure a balance between spending on the charitable needs of our ministry partners and ensuring that WorldShare maintains a sufficient level of free reserves so as to be able to continue its long-term operations.

The policy sets out a minimum level of free reserves to be held. This is reviewed on an annual basis, for reasonableness and for re-calculation. Currently this minimum level is set at WorldShare’s wind-up costs plus 20%, being £44K as calculated on the 31st December 2020. Where free reserves are below this level, the board implement a policy of enhanced monitoring and, where practical steps are taken to increase the levels of free reserves.

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WorldShare

Directors’ Report For the Year Ended 31 December 2021

In addition to this, the Board has set an aspirational policy regarding the maximum level of free reserves to be held at any one point in time. This is currently set at a total of £120K and amounts in excess of this should not be held for any prolonged period of time, unless for a specific strategic reason previously agreed by the Board. The policy splits the desired level of reserves into two headings with the intention that they are viewed, and used, in differing ways.

The “Contingency” amount is intended to be built up only when it can be done so without any adverse impact to our support of our ministry partners.”

Amount of Reserves held

The current level of unrestricted reserves held is £47K, with free reserves available of £36K, which is marginally below that of the above level set by the trustees. During 2017 a number of strategic decisions were made by the Trustees regarding both investment into our infrastructure and a restructure of our UK operations that were felt to be vital to WorldShare’s long term future. Whilst enabling significant cost savings, those decisions had the effect of reducing WorldShare’s level of free reserves. An ongoing plan is in place which has meant that over recent years we have been able to gradually rebuild these amounts. During 2021, despite sending out increased levels of grants, we were able to increase those levels by £2K.

Having reviewed the financial position, reserve levels and the principal risks facing WorldShare, the trustees feel that, whilst continuing to be a challenge, neither the income or reserve levels cast any doubt onto WorldShare’s ability to continue its activities in the foreseeable future and that there are sufficient levels of both for WorldShare to continue its current operations without our partner ministries abroad being adversely affected. Accordingly, the accounts have been produced on a going concern basis.

Principal Risks

The Board maintains a register of the main risks faced by WorldShare, based on the criteria set out by the Charity Commission. This was fully reviewed in September 2021 and is subject to complete review on a three yearly basis going forward, meaning the next major review is in September 2024. Significant progress has been made to proactively address and reduce business and other risks, since the risk register was first drawn up in 2015.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Financial - The board has defined a series of 'trigger points' - circumstances which (if they occur) require a meeting of board members at short notice, to agree actions to prevent or minimise damage to WorldShare. These are reviewed annually along with the Business Continuance Policy.

Non-Financial – This includes a number of disparate areas. In the 2021 review, the board highlighted two particular areas of concern. a) Trustee numbers and skills and b) Office and IT disaster recovery plan. The board has doubled their efforts to recruit additional trustees and an IT Disaster Recovery Plan has been developed and adopted by the board.

Impact of Covid-19 Pandemic

Towards the end of 2019 the emergence of a new coronavirus, Covid-19, was identified, the world-wide implications of which were unclear at the time and continue to evolve. The impact of this on WorldShare’s operations were first felt in 2020, and continued to be felt throughout 2021, with the operations and needs of our ministry partner organisations around the world, and those they serve, being particularly impacted.

Over 2021, much of the UK office’s operations continued to be performed by staff working from home for much of the time. Additionally, some of our fundraising and operational plans continued to be put on hold or amended; however, the impact of these on WorldShare’s income for 2021 and beyond was minimal. As our ministry partners are local to the communities they serve, although they have been impacted by local restrictions on movement, as well as by the disease itself, they have been able to continue to operate within those boundaries, responding to the increased needs the pandemic has caused.

The trustees continue to monitor the situation on a regular basis, and will with management, make the necessary operational changes, as required. Due to these factors the trustees do not feel that this gives rise to any material uncertainties as to WorldShare’s ability to operate on a going concern basis.

4. Structure, Governance and Management

Governing Documents

WorldShare is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The charity is governed by the Memorandum and Articles of Association of the company, dated 11[th] April 1990.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Appointment of Trustees

The board takes responsibility for identifying when new board members are to be recruited, and the skills they are seeking to add to the board. They then search for the appropriate people. Where needed, they will take advice from appropriate individuals and organisations. Three prospective trustees were interviewed (by trustees and CEO) at different points in the year and invited to observe a board meeting. Two joined the board and a third felt they were unable to give the time needed. The board continues to search for suitable trustees to add to its number.

Trustee Induction and Training

An induction process is in place for prospective trustees, as outlined in the board handbook. Initially they are invited to attend one or more board meetings as observers, and discussions with existing members and with staff will give them a great deal of contextual information. Should the board and the candidate feel it is appropriate, they will be elected to the board, and the process of familiarisation with our methods and activities will continue.

Wherever possible board members (old and new) are given opportunities to visit our ministry partners around the world, to see our ministry partners’ work in action and its impact and results.

Organisational structure

The Board of Trustees, which can have up to 15 members, oversees the charity. The board met for standard meetings four times in 2021, three times virtually on Zoom and once in person. The board are responsible for setting the strategic direction in which WorldShare travels, and the activities undertaken to achieve our goals and objectives. In addition, the board is responsible for WorldShare’s compliance with all legal requirements. Many of these responsibilities are delegated to the Chief Executive or other members of staff.

The board has a number of sub-committees which carry out the work of the board between meetings and examine certain matters in greater detail that there is time for in the regular board meetings. During 2021, the Finance and Policy and Procedures Sub-Committees continued to meet as required between board meetings. Decisions made by the sub-committees are reviewed and confirmed at the next board meeting. In addition, many board members are actively involved in different parts of our work. The Chief Executive and other staff meet with the Chairman and other board members at frequent intervals in between board meetings.

We have a number of experienced external professional advisors and consult them whenever appropriate matters arise.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Relationship with any Related Parties

In addition to our memberships of the Evangelical Alliance and Global Connections, WorldShare is a member of the Global Partnership Alliance, an informal alliance of like-minded and historically linked organisations, with members in Australia, Canada, Singapore and the USA (as well as ourselves in the UK) with whom we work closely, and which gives us access to sources of advice and discussion with other experienced relief and development organisations.

We often act in practical co-operation with other members of the Global Partnership Alliance allowing us to jointly apply many more funds to particular projects than simply those raised in the UK. The Alliance members raised a total of £13.8 million for worldwide ministry projects in 2021.

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

5. Reference and Administrative Details

Directors K R McKemey Chairman
J Bunce Vice-Chair
R Cartlidge (until 18thMarch 2021)
A C Fisher
S V Kelsall (until 17thJune 2021)
M Forsyth (until 8thDecember 2021)
P Summerside
Z Biro
G Balasubramanian (from 15thSeptember 2021)
N Brighton (from 8thDecember 2021)
Chief Executive A C Butler
Company Secretary J H Hunt
Registered Office Armstrong House
First Avenue
Robin Hood Airport
Doncaster DN9 3GA
Independent Examiners Smith Craven (Yorkshire) Ltd
Sidings House
Sidings Court
Lakeside
Doncaster DN4 5NU
Bankers National Westminster Bank plc & HSBC Bank plc
27 High Road 1 High Street
Chadwell Heath Doncaster
Romford RM6 6QD DN1 1BS
Solicitors Ellis Fermor & Negus
2 Devonshire Avenue
Beeston
Nottingham NG9 1BS
Registered Charity Number 803575
Company Registration Number 02498199

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WorldShare

Directors’ Report For the Year Ended 31 December 2021

Taxation Status

The company, being a registered charity, is exempt from any liability to taxation on its charitable income and capital gains.

Statement of Directors’ Responsibilities

The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Provision of information to the independent examiners

Each of the persons who are directors at the time when this Directors’ Report is approved has confirmed that:

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WorldShare

Directors’ Report

For the Year Ended 31 December 2021

Independent Examiners

It is intended that a resolution to re-appoint Smith Craven as independent examiners will be proposed at the forthcoming annual general meeting.

Approved by the Directors on 22[nd] June 2022 and signed on their behalf by

K R McKemey Chairman

Page 22

WorldShare Independent Examiner’s Report For the Year Ended 31 December 2021

Report to the trustees of WorldShare on the accounts for the year ended 31 December 2021, Charity no 803575, which are set out on pages 25 to 39.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purpose of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of Institute of Chartered Accountants in England and Wales.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in, any material respect, the requirements:

  2. to keep accounting records in accordance with section 130 of the Charities Act; and

  3. to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charites Act

have not been met; or

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WorldShare

Independent Examiner’s Report For the Year Ended 31 December 2021

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Smith Craven (Yorkshire) Ltd Sidings House Sidings Court Doncaster DN4 5NU

Dated 22[nd] June 2022

Page 24

WorldShare Statement of Financial Activities For the year ended 31 December 2021

Notes
INCOME
Voluntary and investment income
Donation income
Legacies received
Income tax refunded
Interest received
Other income
2
Total income
EXPENDITURE
Costs of generating funds
Charitable activities
3 & 4
Total expenditure
Unrealised gains on investments
12
Net incoming/(outgoing) resources before transfers
Transfers across funds
17
Net movement in funds
6
RECONCILIATION OF FUNDS
Balances brought forward at 1 January 2021
Balances carried forward at 31 December 2021
16 & 17		 Unrestricted Restricted
Total
funds
funds
£
£
£
80,341
395,087
475,428
-
-
-
12,437
34,152
46,589
5
-
5
-
335
335
92,783
429,574
522,357
17,223
56,828
74,051
68,614
376,293
444,907
85,837
433,121
518,958
2,346
-
2,346
9,292
(3,546)
5,746
(3,000)
3,000
-
6,292
(546)
5,746
40,464
48,228
88,692
46,756
47,682
94,438
Year ended 31 December 2021		 Year ended
31-Dec-20
Total
£
412,658
4,440
39,451
30
5,658
462,237
71,003
363,452
434,455
550
28,332
-
28,332
60,360
88,692

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 25

WorldShare Balance Sheet For the year ended 31 December 2021

Notes
FIXED ASSETS
Tangible assets for use by the charity
11
Investments
12
CURRENT ASSETS
Stock
13
Debtors
14
Cash at bank and in hand
CREDITORS: AMOUNTS FALLING DUE WITHIN
15
ONE YEAR
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
THE FUNDS OF THE CHARITY:
Unrestricted income funds
16
Restricted income funds
17
TOTAL FUNDS		 Year ended
31-Dec-21
Total
£
10,548
25,710
36,258
305
16,061
51,665
68,031
(9,851)
58,180
94,438
94,438
46,756
47,682
94,438		 Year ended
31-Dec-20
Total
£
6,958
23,550
30,508
-
8,048
59,157
67,205
(9,021)
58,184
88,692
88,692
40,464
48,228
88,692

For the year ended 31 December 2021, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The directors have not required the company to obtain an audit of its accounts in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 28 to 39 form part of these accounts.

Approved by the Council of Directors on the 22nd of June 2022 and signed on their behalf by:

K R McKemey

Director

Page 26

WorldShare

Statement of Cash Flows For the year ended 31 December 2021

Notes
Cash provided by operating activities
21
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets
Cash used in investing activities
(Decrease)/increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 Year ended
31-Dec-21
Total
£
2,310
5
(9,807)
(9,802)
(7,492)
59,157
51,665		 Year ended
31-Dec-20
Total
£
34,012
30
(2,898)
(2,868)
31,144
28,013
59,157

Page 27

WorldShare Notes to the financial statements For the year ended 31 December 2021

1 ACCOUNTING POLICIES

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP(FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The particular policies adopted by the Directors are described below.

a) Accounting convention

WorldShare meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transactional value unless otherwise stated in the relevant accounting policy note(s).

b) Preparation of the accounts on a going concern basis

The financial statements have been prepared on the assumption that the charity is a going concern. As at the date of approval, the trustees are satisfied that their ongoing approach as described in the directors' report, will assure the charity's ability to operate on a going concern basis.

c) Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income which is designated for specific projects and support is transferred to designated funds.

d) Gifts in kind

Donated goods, services and facilities (gifts in kind), are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the the receipt of economic benefit by the charity or a project supported by the charity from the use of the item is probable and the economic benefit can be measured reliably. In accordance with the charity SORP (FRS102), general volunteer time is not recognised, however information about their contribution can be found in note 2 in the accounts.

Page 28

WorldShare Notes to the financial statements For the year ended 31 December 2021

d) Gifts in kind (continued)

e) Interest receivable

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

f) Funds accounting

Funds held by the charitable company are classified as follows:-

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure, which is charged on an accruals basis, is allocated between:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure is incurred.

h) Apportionment of costs

Costs are apportioned directly to the relevant charitable activities where possible or otherwise on the basis of income or staff time. Pension costs are apportioned in proportion to the relevant staffing costs incurred, and are charged to both unrestricted and restricted funds on the basis firstly of staff time, and secondly of income. Where funds hold a significant deficit, only direct costs relating to activities and staff time are apportioned to them.

i) Grants payable

Grants payable to WorldShare partner organisations are made in furtherance of the charity's objectives. Grants are recognised as expenditure when the payment is made to the partner organisation in accordance with WorldShare's partnership agreements and in line with partner performance.

Page 29

WorldShare Notes to the financial statements For the year ended 31 December 2021

j) Tangible fixed assets and depreciation

Tangible fixed assets are recognised where their cost is in excess of £100, and are stated at cost less depreciation. Depreciation is provided at rates to write off the cost less any residual value of each asset over its expected useful life as follows:

k) Stock

Stock is valued at the lower of cost and net realisable value.

l) Stock - gifts in kind

Gifts in kind held as stock awaiting use by the charity or delivery to projects are recognised at fair value which is the amount the charity would have been willing to pay on the open market.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts. Prepayments are valued at the amount prepaid net of any trade discounts due. Income tax recoverable is valued at the amount recoverable but not yet received on donations received during the year.

n) Foreign currencies

Revenues and costs expressed in foreign currencies are translated into sterling at

ruling on the dates on which the transactions occur, except for monetary assets and liabilities which are translated at the rate ruling at the balance sheet date.

Differences arising on the translation of such items are dealt with in the statement of financial activities.

o) Operating leases

Rentals payable under operating leases are charged on a straight line basis over the terms of the leases.

p) Taxation

The company, being a registered charity, is exempt from any liability to taxation on its charitable income and capital gains.

Income tax recoverable on donations is treated as being receivable in the year in which the corresponding income is received.

q) Pension costs

The pension costs charged in the financial statements represent the contributions payable by the company during the year (see note 18).

Page 30

WorldShare Notes to the financial statements For the year ended 31 December 2021

2 OTHER INCOME

Where gifts in kind are received, these amounts are included in other income. Gift's in Kind totalling £335 were received during 2021 (2020 - nil).

WorldShare recognises the time given up by volunteers, and the benefit of this to the charity itself. Although not included as income in the financial statements, an attempt has been made to put a value on this time. For 2021, given the impact of the Covid-19 pandemic, there were no voluntary hours given, and hence the value of that time was nil (2020 - nil).

3 SUMMARY ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Year ended 31 December Year ended 31 December 2021 Year ended
Unrestricted Restricted 31-Dec-20
funds funds Total Total
Note £ £ £ £
Assistance in ministry resources 8
ChildAid and related grants - 72,376 72,376 68,060
Ministry, project and emergency relief grants - 199,912 199,912 148,710
- 272,288 272,288 216,770
Other Charitable Expenditure
Direct ministry costs 4 - 181 181 202
Ministry support costs 4 40,751 103,824 144,575 117,553
Governance & support costs 5 27,863 - 27,863 28,927
68,614 376,293 444,907 363,452

Assistance in ministry resources

The above amounts for assistance in ministry resources indicate grants paid in cash or in kind to individual partner ministries to enable their activities to fulfil their and our charitable purposes (see also note 8).

Direct ministry costs

Indicates the direct cost of activities conducted to the specific benefit of our partner ministries, other than the making of grants.

Ministry support costs

Indicates the cost of all other activities in support of our partner ministries. These activities are focused on building their capacity to increase the scale or quality of their work.

Governance & Support costs

Indicates the direct cost of activities that enable WorldShare to continue to operate as a charitable company, but do not directly undertake charitable activities. These costs include Governance costs incurred, as well as costs relating to finance, payroll HR, professional fees, and a proportion of costs relating to staff time, premises and other office based costs. These are allocated on a basis of time spent or resources used.

Page 31

WorldShare Notes to the financial statements For the year ended 31 December 2021

4 ANALYSIS OF RESOURCES EXPENDED ON CHARITABLE EXPENDITURE

Grants/Gifts in Kind sent
Staff costs
Travel
Premises costs
Office expenses (including computer & telephone costs)
Postage, printing, stationery &, photocopying costs
Magazine costs
Promotional expense (including exhibitions, publicity & website costs)
Establishment costs (including costs of Board meetings)
Ministry visits and set up costs
Ministry infrastructure improvements/Other direct costs
Costs of sending gifts in kind
Depreciation (including profit/loss on disposal of fixed assets)
Total Resources Expended		 Year ended
Year ended
31-Dec-21
31-Dec-20
£
£
272,288
216,770
129,339
109,417
165
(4)
13,456
13,237
9,723
7,936
5,171
3,834
4,067
4,032
-
70
7,455
6,218
-
136
57
66
124
-
3,062
1,740
444,907
363,452

5 ANALYSIS OF GOVERNANCE & SUPPORT COSTS

Staff costs
Travel
Premises costs
Office expenses
Postage, printing & stationery
Establishment costs
Professional Fees - Independent Examination
Professional Fees - HR
Professional Fees - Pension
Professional Fees - Other
Board meeting costs (inc. board training)
Depreciation		 Year ended
Support Costs
Governance
Total
31-Dec-20
£
£
£
£
11,604
6,190
17,794
20,383
165
-
165
7
1,922
-
1,922
1,968
1,461
-
1,461
1,148
406
34
440
665
743
-
743
824
-
2,120
2,120
1,960
1,152
-
1,152
1,056
300
-
300
-
186
-
186
166
-
1,143
1,143
501
437
-
437
249
18,376
9,487
27,863
28,927
Year ended 31 December 2021

Page 32

WorldShare Notes to the financial statements For the year ended 31 December 2021

6 SURPLUS/DEFICIT FOR THE PERIOD

The surplus for the period is stated after charging:
Depreciation of owned tangible fixed assets
Independent Examiners' remuneration
Operating leases:
Office equipment
Land and buildings
STAFF COSTS
Wages and salaries
Social security costs
Pension costs
Freelance/consultancy costs
Other staff costs (including holiday pay accrual movement)		 Year ended
31-Dec-21
£
6,217
2,120
2,270
14,980
Year ended
31-Dec-21
£
152,584
10,434
13,247
198
1,703
178,166		 Year ended
31-Dec-20
£
4,331
1,960
2,094
14,720
Year ended
31-Dec-20
£
134,035
8,463
10,942
225
(99)
153,566

7 STAFF COSTS

During the year, the average head count of staff employed was 6 (2020 - 5), with there being on average 4 members of staff employed on a full time basis (2020 - 3), and 2 members of staff employed on a part time basis (2020 - 2).

The average number of full time equivalent persons employed by the company during the year was as follows:

Representation
Administration		 Year ended
Year ended
31-Dec-21
31-Dec-20
Number
Number
2
1
3
3
5
4

No employees had employee benefits in excess of £60,000 (2020 - nil).

The key management personnel of the charity comprises the Directors, the Chief Executive Officer and the Finance Manager. Total employee benefits of key management personnel were £83,131 (2020 - £84,680).

Page 33

WorldShare Notes to the financial statements For the year ended 31 December 2021

8 GRANTS MADE (INCLUDING GIFTS IN KIND)

Organisation County Number of Grants Total
£
Beginning of Life Moldova 43 25,895
Bible Faith Mission India 7 15,771
Evangelical Mission for Assistance to Fishermen Brazil 3 10,565
Evangelical Church of North Macedonia (prev. MMB) Macedonia 6 9,300
Good Friends of Nepal Nepal 3 7,930
HEAL Africa DR Congo 19 48,050
Hope for Africa Missions South Africa 27 23,980
Jatiyo Kristyo Prochar Samity India 19 42,935
PiFo Haiti (prev. Haiti Christian Schools) Haiti 8 18,700
Potter's House (Casa Del Alfarero) Guatemala 10 14,000
Word of Hope Myanmar 13 9,400
World Relief Haiti 1 30,000
Other (less than £5,000 each) Various 31 15,762
190 272,288

Grants are made in accordance with the policy disclosed in the Directors' Report.

9 DIRECTORS' INTERESTS

The Articles of Association forbid directors from receiving any remuneration. None of the Directors have been paid any remuneration or received any other benefits from an employment with the Charity (2020 - nil).

No related party transactions were identified during 2021 (2020 - none).

During the year expenses paid on behalf of directors, which may include the direct costs of Director's visits to partner projects as well as travel costs relating to attendance as board meetings were nil (2020 - nil).

Page 34

WorldShare Notes to the financial statements For the year ended 31 December 2021

10 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME
Voluntary and investment income
Donation income
Legacies received
Income tax refunded
Interest received
Other income
Total income
EXPENDITURE
Costs of generating funds
Charitable activities
Total expenditure
Unrealised gains on investments
Net incoming/(outgoing) resources before transfers
Transfers across funds
Net movement in funds		 Unrestricted
Restricted
Total
Funds
Funds
£
£
£
76,110
336,548
412,658
4,440
-
4,440
7,136
32,315
39,451
30
-
30
5,658
-
5,658
Year ending 31 December 2020
93,374
368,863
462,237
14,093
56,910
71,003
59,764
303,688
363,452
73,857
360,598
434,455
550
-
550
20,067
8,265
28,332
(5,000)
5,000
-
15,067
13,265
28,332

Page 35

WorldShare Notes to the financial statements For the year ended 31 December 2021

11 TANGIBLE FIXED ASSETS

**11 ** TANGIBLE FIXED ASSETS
Computer Furniture & Office Promotions
Equipment Fittings Equipment Equipment Total
£ £ £ £ £
COST
At 1 January 2021 34,235 11,850 4,558 12,231 62,874
Additions 9,807 - - - 9,807
Disposals (19,170) - - - (19,170)
As at 31 December 2021 24,872 11,850 4,558 12,231 53,511
ACCUMULATED DEPRECIATION
At 1 January 2021 30,319 11,850 3,821 9,926 55,916
Charge for the period 4,189 - 184 1,844 6,217
Eliminated on disposal (19,170) - - - (19,170)
As at 31 December 2021 15,338 11,850 4,005 11,770 42,963
NET BOOK VALUE
As at 1 January 2021 3,916 - 737 2,305 6,958
As at 31 December 2021 9,534 - 553 461 10,548
**12 ** CASH HELD AS INVESTMENTS Year ended Year ended
31-Dec-21 31-Dec-20
£ £
VALUE
At 1 January 2021 23,550 23,166
Investment management costs (186) (166)
Unrealised gain on investment 2,346 550
As at 31 December 2021 25,710 23,550
**13 ** STOCK - STATIONERY Year ended Year ended
31-Dec-21 31-Dec-20
£ £
VALUE
At 1 January 2021 - -
Transferred from 2020 prepayment balance 592 -
Movement in the year (287) -
Delivered to Ministries - -
As at 31 December 2021 305 -

Page 36

WorldShare Notes to the financial statements For the year ended 31 December 2021

14
DEBTORS
Income tax recoverable
Prepayments
Other debtors
15
CREDITORS: AMOUNTS FALLING DUE WITHIN
ONE YEAR
Accruals
Trade Creditors
Wages control
Other
16
UNRESTRICTED FUNDS
As at 31 December 2019
(Deficit) for the year
As at 31 December 2020
Surplus for the year
Transfers in/(out)
As at 31 December 2021		 Year ended
31-Dec-21
£
5,411
10,363
287
16,061
Year ended
31-Dec-21
£
2,282
2,254
4,929
386
9,851		 Year ended
31-Dec-20
£
1,734
5,827
487
8,048
Year ended
31-Dec-20
£
2,274
1,750
4,683
314
9,021
Year ended
31-Dec-21
£
25,397
15,067
40,464
9,292
(3,000)
46,756

The unrestricted fund is available for the directors to use at their discretion to add to the funds of partners, where those funds need special support.

Page 37

WorldShare Notes to the financial statements For the year ended 31 December 2021

RESTRICTED FUNDS
Balance
1 January 2021 Incoming
Outgoing
£
£
£
Funds held in respect of projects
in the following thematic areas:
Education
6,589
125,329
(132,043)
Health
19,362
52,307
(63,809)
Community
6,952
16,584
(20,226)
Church Planting
7,583
86,903
(66,399)
Injustice
157
25,562
(28,220)
Emergency Relief
7,585
122,889
(122,423)
48,228
429,574
(433,121)
Movement in funds		 Restricted Unrestricted
fund
fund
Transfers
Transfers
£
£
-
-
-
-
-
-
-
-
-
3,000
-
-
-
3,000		 Balance
31 Dec 2021
£
(125)
7,860
3,310
28,087
499
8,051
47,682

17 RESTRICTED FUNDS

The balances on restricted funds represent those amounts received from donors for specified purposes or regions that have not been expended at the balance sheet date. These are collated thematically by the nature of the ministry or project.

During 2021, the trustees approved a transfer of £3,000 to be made from General Funds to the Injustice Fund to be used where expenditure was in excess of income.

18 ANALYSIS OF ASSETS BETWEEN FUNDS

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities		 Year ended
31-Dec-20
Unrestricted Restricted
Total
Total
funds
funds
£
£
£
£
10,548
-
10,548
6,958
25,710
-
25,710
23,550
19,852
48,179
68,031
67,105
(9,354)
(497)
(9,851)
(8,921)
46,756
47,682
94,438
88,692
Year ended 31 December 2021

Page 38

WorldShare Notes to the financial statements For the year ended 31 December 2021

19 PENSION COST

The company operates a defined contribution personal pension scheme for employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge includes contributions payable by the company to the fund which during the year amounted to £13,247 (2020 - £10,942).

20 OTHER FINANCIAL COMMITMENTS

As at 31 December 2021 the company was committed to making the following payments under non-cancellable operating leases.

Total payable within one year
Total payable within one to five years
Total payable after five years
21
RECONCILIATION OF NET MOVEMENT IN FUNDS TO
NET CASH FLOW FROM OPERATING ACTIVITIES
Net movement in funds
Depreciation charge
Interest income
(Increase)/decrease in value of investments
(Increase)/decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash used in operating activities		 2021
£
4,118
1,942
-
6,060
2021
Total
£
5,746
6,217
(5)
(2,160)
(305)
(8,013)
830
2,310		 2020
£
5,412
1,745
-
7,157
2020
Total
£
28,332
4,331
(30)
(384)
-
3,735
(1,972)
34,012

Page 39