The Trustees present their annual report together with the financial statements of Precept Ministries Ireland Ltd (PMI Ltd) for the year ended 31 March 2024.
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 Assoication, 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).
Our Mission and Vision
The mission of Precept Ministries International and Precept Ministries Ireland is, ‘Engaging people in relationship with God through knowing His Word” throughout the Island of Ireland. The vision is “Every believer in Christ living out God’s Word everyday”.
The objects of the company are to advance the Christian religion. This is achieved through:
equipping people with Inductive Bible Study skills to help them to study and understand the Bible for themselves.
providing various levels of study resources and leader training
making training and resources available to all.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Introduction
The year 2023/24 provided Precept Ireland with opportunities to visit churches and provide encouragement to Bible study leaders as well as develop an internship programme.
1. Staff
The staff team consists of a National Director (full time), Finance Manager (part-time) and Administrative Assistant (part-time). Precept Ireland were delighted to offer a paid internship programme for which an intern was appointed to work from 1st October 2023 to 31st August 2024. This created a broader staff team, and gave Precept an opportunity to invest in a young person. The focus was digital marketing and so Precept was able to consider ways to broaden their digital impact and enhance what they are doing.
In March 2024 Precept staff undertook a trip to Precept UK for development and training. This provided to be very useful with the sharing of ideas for the workplace and it is intended to repeat this exchange in the future.
2. Leader Training & Support
During the year 2023/2024, Precept Ireland has continued to support and encourage leaders.
The administration staff in the office are also trained Bible study leaders and are equipped to advise and encourage leaders who contact the office. These conversations have played a key role in making leaders feel connected to the ministry and given them confidence as to where to find help and support. Precept also delivered a number of leaders’ events and leader training to encourage those who wish to start their own class.
Precept has also hosted a monthly Bible study group exclusively for Precept Bible study leaders. This group works through a study but takes time to consider aspects of leading a study from a leader’s perspective. It is intended that this initiative will continue into the new year.
3. All Ireland Strategy
Precept Ireland has had the opportunity to host an all-Ireland study group online each month which has been attended by students from across Ireland, including Letterkenny in County Donegal and Gorey in County Wexford. This has been beneficial in connecting with students from different parts of Ireland.
In November 2023 Precept was able to visit Tralee Baptist Church and spend a weekend with the congregation. They facilitated workshops on inductive Bible study, leader training, and spent time with church leadership. This weekend provided a template for how Precept could engage with churches across Ireland in the future.
4. Social Media
Precept Ireland have a presence on Facebook, Instagram and Twitter with an average of 5-8 posts per week. Over the year engagement has increased on all platforms.
Precept Ireland also has a channel on YouTube, and throughout the year has featured interviews with Precept leaders and students.
5. Classes & Training
During the year we were able to deliver six leader training events, with six volunteers trained in the Precept Upon Precept method.
The National Director was also involved in the delivery of two Precept Leader Academies. This was done in partnership with the UK office, and focused on the Discover 4 Yourself resources and the New Inductive Study Series.
Precept Ireland now has a range of workshops available for churches to book throughout the year. The ministry was also able to visit several churches throughout the year and speak about inductive study. These churches included Down Parish (County Down), Markethill Presbyterian (County Armagh), Rasharkin Presbyterian (County Antrim).
6. Bible Study Resources
The Administrative Assistant has produced several free resources throughout the year that have been made freely available. There has been regular encouragement following these and so it is planned to continue producing them.
Resources have been provided by Precept International (Chattanooga, USA) while on demand printing has been provided by Print NI (Mallusk, Northern Ireland).
Precept has had the privilege of being able to continue to provide free resources to Ukrainian refugees living across Ireland.
7. New Initiatives
During the past year Precept Ireland has sought to develop a partnership with Bible Society Northern Ireland. This culminated in a joint event held in January 2024, hosted by both agencies. This event focused on increasing Biblical confidence and was attended by supporters of both groups. Following its success, both agencies intend to partner again at a summer conference to deliver the seminars.
The benefit that the charity provides can be demonstrated in the following statistics for the 2023 - 2024 year:
The average number of Bible study students (excl. July/Aug) 613
Number of Students March 2024 738
The average number of classes (excl. July/Aug) 52
Number of classes March 2024 61
The number of Bible study leaders active 73
These statistics indicate a slight decrease in the total monthly users of Precept material, but also show an increase in classes, which suggests groups are smaller in size.
The results are set out in detail on pages 7 to 16. The charity returned net incoming resources for the year of £10,171 (2023 net outgoing resources: £1,296) leaving unrestricted funds of £43,578 (2023: £32,235) and restricted funds of £nil (2023: £1,172). The unrestricted funds are considered to be essential to provide sufficient funds to cover any unforeseen costs which may arise and fulfill legal obligations of the charity in the event that current levels of income are not maintained.
The Ministry’s principal funding sources are voluntary donations, the sale of Inductive Bible Study resources, one off gifts and financial support from Precept Ministries International. Costs have been maintained to a minimum.
The charity operates as a debt-free Ministry.
In relation to financial planning the Trustees strive to achieve a goal to provide a cash operating reserve of not less than 90 days operating funds (excluding depreciation) at the year end.
The company is registered as a charitable company limited by guarantee, company number NI629985, and was set up by a Memorandum of Association, on 13 March 2015. The company is constituted under a Memorandum of Association and is a registered charity, charity number NIC105799, registered 3 April 2017.
The charity is constituted with a Board of Directors and one National Director who oversees the day to day running of the Ministry. The registered office for the Ministry during this reporting period is Unit 9A, NCM House, 218 York Street, Belfast, BT15 1GY.
At the beginning of the financial year the Ministry employed three members of staff, the National Director (full time), an Office Administrator (part time), and an Administrative Assistant (part time).
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Routine decisions are made by the National Director. Major decisions are decided corporately by the Board of Directors and the National Director. The Ministry is affiliated to Precept Ministries International based in Chattanooga, Tennessee, USA.
The day to day management has been delegated by the Trustees to the National Director. GMcG Chartered Accountants and Registered Auditors served as accountants during the period of this report.
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 Trustees regularly review the work of the Ministry to identify the major risks to which the Ministry is exposed. They then implement procedures designed to minimise any potential impact on the Ministry. A special risk assessment was put in place for a return to office working post covid.
The trustees' report was approved by the Board of Trustees, and signed on its behalf by:
We report to the trustees on our examination of the financial statements of Precept Ministries Ireland Ltd (the charity) for the year ended 31 March 2024.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied ourselves that the charity is not subject to audit under company law, and is eligible for independent examination, it is our responsibility to:
examine the accounts under section 65 of the Charities Act (Northern Ireland) 2008;
follow the procedures laid down in the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act; and
state whether particular matters have come to our attention.
We have examined your charity accounts as required under section 65 of the Charities Act and our examination was carried out in accordance with the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act. The examination included 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 you as charity trustees concerning any such matters.
Our role is to state whether any material matters have come to our attention giving us cause to believe:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
That the accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the 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
that there is further information needed for a proper understanding of the accounts to be reached.
We have completed our examination and have no concerns in respect of the matters (1) to (4) listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland, we have found no matters that require drawing to your attention.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Precept Ministries Ireland Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Unit 9A, NCM House, 218 York Street, Belfast, BT15 1GY.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets 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 bases:
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.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Precept Ministries International support
Workshops and training income
Books sales
Rent and service charges
Venue costs
Postage and office supplies
Books and printing
Training
Travel and subsistence
Computer costs
Sundry expenses
Equipment rental
Cost of sales
Special events and conferences
Advertising and recruitment
Telephone and internet
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
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.
There were no disclosable related party transactions during the year (2023 - none).
The charity is under the umbrella of Precept Ministries International, a charity based in USA. During the year the charity received donations of £41,862 (2023 - £45,615) from Precept Ministries International.