Charity registration number 1164614 (linked 1164614-1)
Company registration number 09651032 (England and Wales)
GOODNEWS EVANGELICAL MISSION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
GOODNEWS EVANGELICAL MISSION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs P Aisbitt
Mr A B Griffiths
Mr A R Michael
Mr E J Harris
(Appointed 9 September 2023)
Secretary/Charity Manager
Miss H E Griffiths
Charity number
1164614 (linked 1164614-1)
Company number
09651032
Principal address
The Byres, Manor Farm
Church Lane
Chilcompton
Radstock
Somerset
BA3 4HP
Registered office
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Auditor
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers
CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Solicitors
Anthony Collins Solicitors LLP
134 Edmund Street
Birmingham
West Midlands
B3 2ES
Investment managers
Rathbones
8 Finsbury Circus
London
EC2M 7AZ
GOODNEWS EVANGELICAL MISSION
CONTENTS
Page
Trustees' report
1 - 4
Statement of Trustees' responsibilities
5
Independent auditor's report
6 - 8
Statement of financial activities
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
GOODNEWS EVANGELICAL MISSION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The Trustees present their annual report and financial statements for the year ended 30 November 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

 

The Trustees are conscious that the effects and impact of the COVID-19 coronavirus pandemic are still being felt by many individuals and charities. The Trustees are aware that diligent attention to the grant making policy and other matters should continue, to ensure the ongoing effectiveness of the Charity. The Trustees and staff of the Charity continue to pray for those affected by the pandemic in the UK and throughout the world.

Objectives and activities

The Charity's objects are to advance the Christian religion, to relieve poverty and sickness and such other charitable purposes as the Trustees may from time to time decide. The Trustees confirm they have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's aims and objectives, in planning future activities, and setting the grant-making policy for the year.

Grant-making policy

The Trustees will consider applications for assistance that fall within the objectives of the Charity.

 

In all cases where financial assistance is being sought, the Charity will restrict its support to organisations and groups that have a Christian ethos and belief, and which actively promote the Good News of Jesus Christ.

 

The Trustees’ policy is that all applications are made via GEM’s online application form.

 

Applications for assistance must be approved by the majority of the Trustees at a formal Trustees’ meeting before funds are released.

 

To help administer grant applications for the time being the Trustees have agreed:

 

1. Whether an application was approved or declined, applicants cannot re-apply within 12 months of the original grant round.

 

2. Where a charity has received grants from the Charity for two consecutive years, the Trustees will not normally consider awarding a grant in the third year. Similarly, the charity may re-apply and be granted funding in the fourth and fifth year, but not in the sixth year and so on.

 

3. Due to increasing funding demands from charities, the Trustees agreed that as from November 2023 only those charities that have applied for funding in the past will be able to do so in the future. This change in policy will be reviewed annually.

The Trustees will have regard to the objectives of the charity, the charity's risk assessment strategy, any other relevant policies of the charity and any guidance produced by the Charity Commission when considering application for assistance.

 

Projects will only be supported on receipt of regular reports and up to date accounts. This is in accordance with the grant Terms & Conditions, approved and signed by the grantees upon acceptance.

Achievements and performance

 

Background

 

The Charity has been financially blessed with a large settlement bequeathed by a former Trustee and founder of the Charity. Income is generated by the investments made by the Charity and the Charity is not therefore a fund-raising charity. However, the Trustees remain cognisant of the wishes and intentions of the settler as evidenced during his lifetime.

GOODNEWS EVANGELICAL MISSION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The Trustees have primarily (but not exclusively) sought to support projects which not only meet its objectives but more specifically: -

 

(1) alleviate poverty and provide food, clothing, transport, shelter, medical aid, education and Christian teaching/literature to families and children in persecuted, troubled and deprived areas of the world.

 

(2) alleviate loneliness in the elderly, disabled and socially isolated locally and within the wider UK and bring the Good News of Jesus Christ to hospices, residential care homes and other supported living establishments including shelters for the homeless and accommodation for young persons.

 

Grant applications

 

The Trustees are pleased to report that the number of grants awarded by the Charity has continued at a consistent level in the past year. During the year, the trustees met on 7 occasions. The Charity did not experience any interruption to the normal proceedings.

 

The Trustees considered applications from Christian charities in the UK and abroad and many diverse projects have been supported. The Trustees are particularly keen to assist charities which have a clear desire to promote and spread the Gospel message as an underlying theme to their work.

 

Grants awarded by the Charity cover various areas, including:

 

 

Future outlook

 

The Trustees feel privileged to be able to further the Lord’s work by providing financial assistance to so many excellent Christian charities working on the front-line and feel confident that this assistance is having a tangible impact on the lives and hearts of many suffering communities, individuals, families and children.

 

Since the year end, Lucy Craggs has resigned as a Trustee due to other commitments. Lucy served for 6 years as a Trustee and her wisdom and compassionate spirit will be greatly missed. John Harris has now been welcomed as a Trustee.

 

The Charity’s website continues to prove an invaluable tool in making the work and ministry of the Charity known.

 

The Trustees hope and pray that the flow of applications will continue, and that the Lord’s will and glory will be faithfully served by these resources that He has placed in the Trustees’ care.

Financial review

Investment income for the period was £387,563 (2022: £391,833). Grant disbursement, raising funds, and administration costs of £1,177,635 (2022: £1,270,532) were incurred. There were losses on investments of £245,273 giving accumulated funds of £12,364,160 carried forward at 30 November 2023.

 

Reserves policy

 

The Charity's policy is to retain sufficient reserves to:

 

GOODNEWS EVANGELICAL MISSION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

Financial reserves are considered in two parts. Reserves deemed necessary to meet future operational requirements and to protect the Charity against future financial uncertainties including loss of income and unexpected increases in operating costs; and reserves set aside to meet future financial commitments for a specific significant project or venture or planned future commitment.

 

The reserves policy is reviewed annually by the Trustees.

 

With a view to generating income into the future, the Trustees had designated £7,500,000 to be set aside. This has been increased to £8,500,000 during the year. This capital is not intended to be spent, but invested in keeping with the Charity's investment policy.

Investment policy

The aims and objectives of the Charity's investment policy are to achieve a balance between capital growth and income growth, and to ensure reasonable income and achieve a target yield of 3% per annum on the capital invested. The Charity's strategy is to invest in low risk, long term investments. The Charity is prepared to accept some volatility in the value of the portfolio and has deemed inflation the key risk over the long term.

 

The Charity has a long-term time horizon and does not expect to have to spend a significant proportion of the investment portfolio in the short or medium term.

 

The Trustees do not want to invest directly in any companies which are involved in the business of tobacco, alcohol, gambling, armaments, military products and services, non-limitary firearms, pornography, high interest rate lending and human embryonic cloning. In accordance with the Charity Commission guidance, the Trustees choose not to invest directly in companies with a significant interest in the above-mentioned activities. As a guide, significant interest may be taken to mean turnover of 10% or more of a company's total turnover.

 

The Trustees seek a portfolio diversified by asset class, but excluding direct investment into derivatives, contracts for differences, structured products or commodity funds.

 

In order to achieve the investment objectives, the following strategic (long term) asset allocation, tactical ranges and benchmarks have been agreed:

 

Asset Class

Target Allocations %

Allowed Ranges

%

Relevant Index

Fixed Interest

25

20-50

FTSE UK Gilts All Stocks

Equities (split below)

60

40-80

 

-UK Equities

30

 

FTSE All-Share

-Overseas Equities

30

 

FTSE All World Ex-UK (£)

Alternatives

10

10-25

50% FTSE UK Commercial Property

50% 3-Month LIBOR + 2%

Cash

5

0-20

7-Day LIBOR

Total

100

 

Composite of the above

 

Over the short term the portfolio performance is to be compared to the performance of the above strategic asset allocation as represented by the relevant indices. Over long periods of time the total return of the portfolio should be compared to CPI + 2% per annum.

 

The Charity has adopted a total return approach. This provides the investment manager with greater investment flexibility to both grow the portfolio and help diversify the portfolio against various risks. However, it is accepted that naturally generated income will produce the majority of the annual cash requirement with the remainder coming from expected long term capital gains.

 

The investment policy is reviewed annually by the Trustees.

GOODNEWS EVANGELICAL MISSION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

Risk policy

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Over the course of every year the Trustees review the risks of the Charity. At each Trustees’ meeting particular attention is also given to all major risks that are faced by the Charity.

Structure, governance and management

The Charity is a company limited by guarantee and constituted under its Memorandum and Articles dated 22 June 2015.

 

Goodnews Evangelical Mission (Charity number 1067760) was a Charity established by a Trust Deed on 2 April 1997, as amended by a supplementary deed enacted on 18 December 1997.

 

A new limited company was incorporated in June 2015 and Charity Commission registration sought. Upon an order made by the Charity Commission on the 2 March 2016 the two charities were linked.

The Trustees, who are also the directors for the purpose of company law, who served during the year were:

 

Mrs P Aisbitt
Mrs L A Craggs
(Resigned 31 March 2024)
Mr A B Griffiths
Mr A R Michael
Mr E J Harris
(Appointed 9 September 2023)

New Trustees are appointed as the existing Trustees are led of the Lord.

 

All new Trustees will be required to share the Christian ethos of the Charity and have the necessary skills and expertise to help administer the affairs of the Charity.

Trustees take all the necessary steps to ensure that they remain aware of their obligations and duties as Trustees.

 

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

 

The Charity employs a manager, Hannah Griffiths, to oversee the day to day management of the Charity. Hannah reports to the Trustees who meet on a regular basis and are responsible for all legal and fiscal matters.

 

Auditor

In accordance with the company's articles, a resolution proposing that Caladine Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

Mrs P Aisbitt
Mr A B Griffiths
Trustee
Trustee
29 July 2024
GOODNEWS EVANGELICAL MISSION
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -

The Trustees, who are also the directors of Goodnews Evangelical Mission for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the Trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

 

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

GOODNEWS EVANGELICAL MISSION
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GOODNEWS EVANGELICAL MISSION
- 6 -

Opinion

We have audited the financial statements of Goodnews Evangelical Mission (the ‘Charity’) for the year ended 30 November 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 30 November 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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 the provisions available for small entities, in the circumstances set out in note 24 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

-

the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements.

GOODNEWS EVANGELICAL MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GOODNEWS EVANGELICAL MISSION
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of Trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

GOODNEWS EVANGELICAL MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GOODNEWS EVANGELICAL MISSION
- 8 -

We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

John Richard Caladine FCCA CTA FCIE (Senior Statutory Auditor)
for and on behalf of Caladine Limited
31 July 2024
Chartered Certified Accountants
Statutory Auditor
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
GOODNEWS EVANGELICAL MISSION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
Unrestricted
Unrestricted
Total
Unrestricted
Unrestricted
Total
funds
funds
funds
funds
general
designated
general
designated
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Investments
3
387,563
-
387,563
391,833
-
391,833
Total income
387,563
-
387,563
391,833
-
391,833
Expenditure on:
Raising funds
4
60,943
-
60,943
78,316
-
78,316
Charitable activities
Befriending project
5
-
-
-
11,215
-
11,215
Christian work - UK
5
720,004
-
720,004
681,375
-
681,375
Christian work - International
5
396,688
-
396,688
499,626
-
499,626
Total charitable expenditure
1,116,692
-
1,116,692
1,192,216
-
1,192,216
Total expenditure
1,177,635
-
1,177,635
1,270,532
-
1,270,532
Net gains/(losses) on investments
11
(245,273)
-
(245,273)
(805,467)
-
(805,467)
Net expenditure
(1,035,345)
-
(1,035,345)
(1,684,166)
-
(1,684,166)
Transfers between funds
(1,000,000)
1,000,000
-
-
-
-
Net movement in funds
8
(2,035,345)
1,000,000
(1,035,345)
(1,684,166)
-
(1,684,166)
Reconciliation of funds:
Fund balances at 1 December 2022
5,899,505
7,500,000
13,399,505
7,583,671
7,500,000
15,083,671
Fund balances at 30 November 2023
3,864,160
8,500,000
12,364,160
5,899,505
7,500,000
13,399,505

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

GOODNEWS EVANGELICAL MISSION
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
12
2,474
6,063
Investments
13
11,681,024
12,790,000
11,683,498
12,796,063
Current assets
Trade and other receivables
14
19,744
7,566
Cash at bank and in hand
896,296
828,581
916,040
836,147
Current liabilities
15
(235,378)
(232,705)
Net current assets
680,662
603,442
Net assets
12,364,160
13,399,505
The funds of the Charity
Unrestricted funds - general
3,864,160
5,899,505
Unrestricted funds - designated
17
8,500,000
7,500,000
12,364,160
13,399,505
The financial statements were approved by the Trustees on 29 July 2024
Mrs P Aisbitt
Mr A B Griffiths
Trustee
Trustee
Company registration number 09651032 (England and Wales)
GOODNEWS EVANGELICAL MISSION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
22
(1,183,551)
(1,160,720)
Investing activities
Purchase of property, plant and equipment
-
(4,949)
Purchase of investments
(2,529,816)
(2,909,462)
Proceeds from disposal of  investments
3,393,519
4,007,065
Investment income received
387,563
391,833
Net cash generated from investing activities
1,251,266
1,484,487
Net increase in cash and cash equivalents
67,715
323,767
Cash and cash equivalents at beginning of year
828,581
504,814
Cash and cash equivalents at end of year
896,296
828,581
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information

Goodnews Evangelical Mission is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF.

1.1
Accounting convention

The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention with the exception of fixed asset investments which are remeasured to fair value at the reporting date. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

1.4
Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

 

Income from listed investments and interest are recognised when receivable.

1.5
Expenditure

Liabilities are recognised when a constructive obligation exists, the payment is probable and the obligation can be measured or estimated reliably.

 

Costs of raising funds comprise those costs relating to the investment manager's fees for managing the investments and securities.

 

Charitable activities include costs relating to the grant funding of activities and the charity's own activities. Grants have been classified by activities; UK Projects and International Projects.

 

Support costs comprise administration costs in relation to the grant making, together with governance costs. Governance costs include the costs of auditing the statutory accounts, the costs of Trustees' meetings and the cost of any legal advice to Trustees on governance or constitutional matters. The support costs have been allocated wholly to the charitable activities.

GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies (Continued)
- 13 -

Support and governance costs are proportionately recharged to each charitable activity based on the level of charitable expenditure of each activity. For 2023 the recharge to the nearest whole percent is as follows:

 

Christian work - UK: 65%

Christian work - International: 35%

 

Grant making policy

 

The Charity supports by the provision of financial grants all of those Christian organisations whose own activities are in accordance with the Charity's objectives. Numerous and varied applications are received by the Charity every month; in addition the Trustees are also aware of other Christian organisations and encourage them to submit applications to the Charity. All applications are prayerfully considered by the Trustees but, due to the Charity's own limited means, not all applications can be supported.

1.6
Property, equipment and vehicles

Property, equipment and vehicles are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Fixtures and equipment
25% straight line
Computers
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies (Continued)
- 14 -
1.9
Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Basic financial assets include trade and other receivables and cash and bank balances. Basic financial liabilities including trade and and other payables where trade payables are obligations to pay for goods or services that have been acquired on the ordinary course of operations from suppliers.

1.10
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Dividends

384,728
391,531
Interest receivable
2,835
302
387,563
391,833
4
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Investment management fees

60,943
78,316
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
5
Expenditure on charitable activities
Christian work - UK
Christian work - International
Total
Befriending project
Christian work - UK
Christian work - International
Total
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
Direct costs
Staff costs
-
-
-
6,690
-
-
6,690

Other direct costs

-
-
-
2,041
-
-
2,041

Motor and petrol

-
-
-
307
-
-
307

Subsistence

-
-
-
238
-
-
238

Outings and holidays

-
-
-
828
-
-
828

Travelling expenses

1,371
-
1,371
-
-
-
-

Missions Day

2,198
-
2,198
-
1,074
780
1,854

Sundry expenses

333
-
333
-
-
-
-
3,902
-
3,902
10,104
1,074
780
11,958
Grant funding of activities (see note 6)
638,269
354,400
992,669
-
612,630
449,740
1,062,370
Share of support and governance costs (see note 7)
Support
60,014
32,605
92,619
848
51,648
37,479
89,975
Governance
17,819
9,683
27,502
263
16,023
11,627
27,913
720,004
396,688
1,116,692
11,215
681,375
499,626
1,192,216
Analysis by fund
Unrestricted funds - general
720,004
396,688
1,116,692
11,215
681,375
499,626
1,192,216
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
6
Grants payable

Christian work - UK

Christian work - International
Total

Christian work - UK

Christian work - International
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Grants to institutions:
St Wilfrid's Hospice
15,980
-
15,980
-
-
-
The Pelham
20,000
-
20,000
-
-
-
London City Mission
20,000
-
20,000
15,000
-
15,000
Bible Society - Egypt
10,000
10,000
-
11,000
11,000
Horizons International
-
20,000
20,000
-
-
-
SAT - 7
-
20,000
20,000
-
-
-
Tear Fund
15,000
15,000
-
50,000
50,000
Matthew 25 Mission
20,000
-
20,000
30,000
-
30,000
YMCA DLG
23,000
-
23,000
23,821
-
23,821
Operation Mobilisation
-
-
-
-
50,000
50,000
Time to Talk Befriending
-
-
-
25,000
-
25,000
Other grants above £15,000 (7 institutions)
75,000
34,000
109,000
115,000
55,000
170,000
Grants £15,000 and below (120 institutions)
464,289
255,400
719,689
403,809
283,740
687,549
638,269
354,400
992,669
612,630
449,740
1,062,370
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
7
Support costs allocated to activities
2023
2022
£
£
Staff costs
48,801
47,550
Depreciation
3,588
3,589
Insurance
2,696
2,673
Travel and subsistence
5,669
3,381
Grant management
9,681
6,496
Phone and internet
2,168
2,994
Printing, postage and other office costs
316
2,779
IT support
7,323
7,023
Rent
9,383
10,423
Computer software
2,148
2,150
Training
18
143
Website
828
774
Governance costs
27,502
27,913
120,121
117,888
Analysed between:
Befriending project
-
1,111
Christian work - UK
77,833
67,671
Christian work - International
42,288
49,106
120,121
117,888
2023
2022
Governance costs comprise:
£
£
Staff costs
8,396
8,629
Audit fees
4,080
3,780
Accountancy and payroll
4,699
4,021
Legal and professional
1,422
4,524
Trustee meeting costs
7,796
6,164
Subscriptions
239
178
Bank charges
224
379
Training
646
238
27,502
27,913
8
Net movement in funds
2023
2022
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
4,080
3,780
Depreciation of owned property, plant and equipment
3,588
3,589
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
9
Trustees

Mr Ralph Harris, who resigned as a Trustee in December 2021, received a salary of £nil (2022: £2,774) and pension contributions of £nil (2022: £257) up to the date of his redundancy as Befriending Service Manager. He also received £nil (2022: £8,374) in redundancy pay. The authority for payment is contained within the Charity's Memorandum and Articles of Association.

 

The Trustees had the following expenses reimbursed and met by the Charity during the year:

 

Meeting costs     £7,796     (2022: £6,164)

Training     £ 646     (2022: £238)

10
Employees

The average monthly number of full and part time employees during the year was:

2023
2022
Number
Number
Support
1
2
Employment costs
2023
2022
£
£
Wages and salaries
51,902
56,639
Social security costs
847
1,982
Other pension costs
4,448
4,248
57,197
62,869
There were no employees whose annual remuneration was more than £60,000.
11
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2023
2022
Gains/(losses) arising on:
£
£
Revaluation of investments
(267,819)
(798,864)
Sale of investments
22,546
(6,603)
(245,273)
(805,467)
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
12
Property, plant and equipment
Fixtures and equipment
Computers
Total
£
£
£
Cost
At 1 December 2022
6,376
13,868
20,244
At 30 November 2023
6,376
13,868
20,244
Depreciation and impairment
At 1 December 2022
2,665
11,517
14,182
Depreciation charged in the year
1,237
2,351
3,588
At 30 November 2023
3,902
13,868
17,770
Carrying amount
At 30 November 2023
2,474
-
2,474
At 30 November 2022
3,712
2,351
6,063
13
Fixed asset investments
Listed investments
£
Cost or valuation
At 1 December 2022
12,790,000
Additions
2,529,816
Valuation changes
(267,819)
Disposals
(3,370,973)
At 30 November 2023
11,681,024
Carrying amount
At 30 November 2023
11,681,024
At 30 November 2022
12,790,000
14
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Other receivables
14,109
-
Prepayments and accrued income
5,635
7,566
19,744
7,566
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
15
Current liabilities
2023
2022
£
£
Other payables
218,120
215,400
Accruals and deferred income
17,258
17,305
235,378
232,705
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
4,448
4,248

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

17
Unrestricted funds - designated

These are unrestricted funds which are material to the Charity's activities.

At 1 December 2022
Transfers
At 30 November 2023
£
£
£
Capital designated to generate income
7,500,000
1,000,000
8,500,000
Previous year:
At 1 December 2021
Transfers
At 30 November 2022
£
£
£
Capital designated to generate income
7,500,000
-
7,500,000

The above transfer of £1,000,000 is referenced within the Trustees' report.

GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
18
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 December 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 30 November 2023
£
£
£
£
£
£
General funds
5,899,505
387,563
(1,177,635)
(1,000,000)
(245,273)
3,864,160
Previous year:
At 1 December 2021
Incoming resources
Resources expended
Transfers
Gains and losses
At 30 November 2022
£
£
£
£
£
£
General funds
7,583,671
391,833
(1,270,532)
-
(805,467)
5,899,505
19
Analysis of net assets between funds
Unrestricted
Unrestricted
Total
funds
funds
general
designated
2023
2023
2023
£
£
£
At 30 November 2023:
Property, plant and equipment
2,474
-
2,474
Investments
3,181,024
8,500,000
11,681,024
Current assets/(liabilities)
680,662
-
680,662
3,864,160
8,500,000
12,364,160
Unrestricted
Unrestricted
Total
funds
funds
general
designated
2022
2022
2022
£
£
£
At 30 November 2022:
Property, plant and equipment
6,063
-
6,063
Investments
5,290,000
7,500,000
12,790,000
Current assets/(liabilities)
603,442
-
603,442
5,899,505
7,500,000
13,399,505
GOODNEWS EVANGELICAL MISSION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
20
Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
1,320
1,320
21
Related party transactions

Hannah Griffiths (daughter of Trustee Andrew Griffiths) was paid a salary of £50,679 (2022: £48,059) and pension contributions of £4,448 (2022: £3,793) and was reimbursed travel and other expenses totalling £1,319 (2022: £1,293). Her original appointment was prior to Andrew Griffiths joining the Board of Trustees and he has no part in any decisions relating to her ongoing employment and remuneration.

22
Cash generated from operations
2023
2022
£
£
Deficit for the year
(1,035,345)
(1,684,166)
Adjustments for:
Investment income recognised in statement of financial activities
(387,563)
(391,833)
(Gain)/loss on disposal of investments
(22,546)
6,603
Fair value gains and losses on investments
267,819
798,864
Depreciation and impairment of property, plant and equipment
3,588
3,589
Movements in working capital:
(Increase) in trade and other receivables
(12,177)
(3,076)
Increase in trade and other payables
2,673
109,299
Cash absorbed by operations
(1,183,551)
(1,160,720)
23
Analysis of changes in net funds

The Charity had no material debt during the year.

24
Non-audit services provided by auditor

In common with many charities of our size and nature we use our auditor to assist with the preparation of the financial statements and payroll services.

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