Charity registration number 1173195 (England and Wales)
Company registration number 09923116
ADF INTERNATIONAL (UK)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ADF INTERNATIONAL (UK)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr P Coleman
Mr A K Moore
Mr R Clarke
Mr L Wilkinson
Mr N Daley
Charity number
1173195
Company number
09923116
Registered office
11 Bressenden Place
London
SW1E 5BY
Auditor
Harbinson Mulholland
6th Floor, East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
BT1 3LP
Bankers
Barclays Bank
1 Churchill Place
London
E14 5HP
Accountants
Gravita Audit Oxford LLP
First Floor, Park Central
40-41 Park End Street
Oxford
OX1 1JD
ADF INTERNATIONAL (UK)
CONTENTS
Page
Trustees' report
1 - 4
Statement of Trustees' responsibilities
5
Independent auditor's report
6 - 9
Statement of financial activities
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
ADF INTERNATIONAL (UK)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The Trustees present their annual report and financial statements for the year ended 30 June 2024.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity's Memorandum & 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)".

Objectives and activities

The charitable objects of the Charity are to advance Christianity for the public benefit both generally and in particular by promoting Christian principles and ethics by supporting and enabling Christians to live and worship in accordance with Christian principles and ethics. In shaping the Charity's objectives and planning its activities, the Trustees have considered and had regard to the Charity Commission's guidance on public benefit and have complied with the duty in Section 17(5) of the Charities Act 2011.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

To further the above objects and vision, the Charity engaged in several different activities in the year. To these ends, ADF International (UK) (hereafter ADF UK) engaged in public commentary and the production of resources, public speaking and training, as well as targeted assistance for those who may be prevented from living and worshipping in accordance with Christian principles and ethics whether by, for example, engaging at a local level or with significant decision-makers.

 

ADF UK has continued to advocate for the right of Christians and others to freely associate and share their faith in public. To that end, ADF UK has highlighted the ongoing prosecution of Christians under Public Spaces Protection Orders (PSPOs) introduced by the Anti-Social Behaviour, Crime and Policing Act 2014 and which will be expanded by the commencement of Section 9 of the Public Order Act 2023.

 

Prior to the commencement of the Public Order Act 2023, various local authorities introduced PSPOs which prohibit certain activities in the vicinity of abortion clinics. These PSPOs have included terms which are explicitly written to target Christian activities such as reading the Bible and prayer. The terms of the PSPOs have resulted in police and local authority prosecution of Christians who pray or offer support to women in the area covered by the orders.

 

ADF UK has highlighted the negative impact of the forthcoming Public Order Act and the PSPO regime on the right of Christians to associate, pray, and be present near abortion facilities across the country. Additionally, ADF UK staff have written and spoken publicly against the use of the criminal law to prosecute Christians who peacefully and unobstructively seek to silently pray or engage in consensual conversations to people in the vicinity of abortion clinics.

 

In particular ADF UK has continued to support individuals such as Isabel Vaughan Spruce, Adam Smith Connor and Livia Tossici-Bolt, among others, who have been subject to criminal prosecutions for allegedly breaching PSPO zones by silently praying or holding a sign offering assistance. That includes supporting targeted legal action against the police where they have violated fundamental rights.

 

ADF UK staff members have continued to write, speak publicly, and meet with members of Parliament and senior government officials regarding these cases, with a view to safeguarding the right of Christians to engage in prayer.

 

ADF UK staff members provided briefing material and legal analysis to members of parliament on their request for advice relating to the statutory guidance regarding the provisions of Section 9 of the Public Order Act 2023. In particular ADF UK staff focused on the implications for the right to freedom of expression and freedom of religion which could impact people of faith and the wider public. The adoption of statutory guidance relating to the Public Order Act is now likely to be delayed by the general election.

ADF INTERNATIONAL (UK)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

ADF UK staff members have been invited to speak to and train various faith and student groups during this period. An example of this was the hosting of training seminars for the Association of Students for Life emphasising the right to freedom of speech on campus. This group of students has been particularly impacted by the failure of the government to commence all sections of the Higher Education (Freedom of Expression) Act 2023.

 

Further, ADF UK staff have delivered lectures to professional groups such as the Christian Medical Fellowship and Doctors for Life regarding freedom of conscience. ADF UK staff have given conference speeches and delivered presentations on topics such as the rule of law, parental rights in education, and the right to freedom of expression. For example, ADF UK has prepared memoranda for policy makers and Christian leaders on diverse topics such as freedom of conscience, hate speech laws and euthanasia.

 

ADF UK staff have continued to carefully monitor relevant policy developments which have a bearing on Christian principles and ethics, including the proposed ‘hate speech’ law in the Republic of Ireland which would have negatively affected the rights of Christians to speak about, inter alia, the distinction between male and female. ADF UK worked in collaboration with allied organisations in Ireland to prepare briefing material for politicians and journalists and to successfully host a conference in June 2024 analyzing the proposed legislation.

 

At the international level, ADF UK together with ADF International and the organisation ‘Care Not Killing’ was given permission to intervene before the European Court of Human Rights (ECHR) in the case of Kasai v. Hungary concerning assisted suicide. The interview argued that there was no right to assisted suicide or euthanasia in international human rights law. The ECHR cited our intervention in its decision and, among other things, held that there is no Convention obligation on states to legally permit assisted suicide.

 

During the course of the year, ADF UK staff have made several appearances in broadcast media, with a particular focus on stories, legal issues and government policies that affect Christians. Our team contributed expert opinion and analysis on issues such as the Digital Services Act, censorship in Brazil and Australia and a free speech case in Belgium that saw a ‘cancellation’ by a local mayor overturned by the highest court of that country.

 

ADF UK staff have continued to contribute opinion pieces to a variety of media outlets on topics concerning the fundamental rights and freedoms guaranteed by the European Convention of Human Rights, and the ability of Christians to live and worship in accordance with Christian principles and ethics. These media outlets have included, Spiked Online, First Things and The Telegraph.

 

ADF UK staff have participated in and, in some cases, spoken at conferences in the United Kingdom and Europe that concerned the promotion of Christian principles and ethics, such as the Free Speech Ireland conference against hate speech, the Home Schooling Exchange conference on freedom of education, the Catholic Bishops roundtable on freedom of conscience and assisted dying, allowing audiences both in the UK and abroad to hear about the work of ADF UK and the developments in the UK and further afield affecting Christians, as well as affording networking opportunities with key individuals and organisations.

 

ADF UK staff members worked to defend the rights of Christians living abroad to enjoy freedom of religion or belief. For example, ADF UK together with ADF International participated in the All-Party Parliamentary Group on Freedom of Religion or Belief (APPG FoRB) inquiry on the abuse of Christians in Nicaragua, highlighting the case of the arrest and detention of Bishop Rolando Álvarez who was subsequently released. ADF UK continues to be a part of the UK Freedom of Religion or Belief Forum and to engage with members of the APPG FoRB. ADF UK staff members have organized and spoken at several APPG FoRB events in Parliament and Portcullis House within the reporting period, including on the religious freedom violations in Manipur, India, and Nigeria. Moreover, ADF UK staff members have briefed several politicians on the situation of persecuted Christians abroad, writing parliamentary speeches on forced marriage in Pakistan, persecution in India, church closures in Algeria, religious prisoners of conscience, persecution in Iran, and violations in North Korea. For these contributions, the former Special Envoy for Freedom of Religion or Belief included ADF UK into her staff celebrations and opened the door for ADF UK to organize several events for the International Religious Freedom or Belief Alliance. In addition, staff members have briefed the India desk at the Foreign, Commonwealth and Development Office in King Charles Street twice on the persecution of Christians in Manipur, India.

ADF INTERNATIONAL (UK)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

In measuring success, the Trustees reviewed the number of areas in which the Charity engaged and the outcome in each case. Where the objective was to inform and equip, the reach of the event or materials was evaluated. Where the objective was to promote and protect the practice of Christianity, the Trustees reviewed the type of assistance provided and the impact that had on the final resolution of the matter.

Financial review

During the year income increased by £253,074 to £1,321,626 (2023: £1,068,552), and expenditure also increased by £134,166, to £1,127,284 (2023: £993,118). As a result, surplus for the year was £194,342 (2023: £75,434). The Trustees are endeavoring to ensure the financial sustainability and the continued success of the Charity with a combination of measures by focusing on the development of our donor base, financial management, as well as broadening the Charity's sources of income. The Trustees hope in the medium term to move into a position where they can retain cash reserves in the region of 3 to 6 months' running costs, which would be in the region of £250,000 to £500,000. The Charity had £442,737 (2023: £242,793) of unrestricted cash reserves at the year end, as increased donations have allowed us to continue to bolster our free reserves.

During the year, the Charity has received financial support in the form of unrestricted donations from Alliance Defending Freedom, a linked Charity in the US which operates under the same principles as ADF International (UK). The companies are not related organisations for 'group' purposes due to a different control structure. The donations do not require repayment and Alliance Defending Freedom has confirmed that it will continue to support ADF International (UK) to meet its day-to-day liabilities as they fall due.

Investment policy

ADF International (UK) does not hold investments, maintaining its funds as cash balances. As such, there is no policy which could be commonly understood as an “investment policy”, related objectives or assessment against those objectives.

Principle risks and uncertainties

The trustees have assessed the major risks – including discussing the risks of social media – to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Trustees are mindful of the key risks that may face the Charity, in particular in connection with reputational risk and adverse publicity. The Trustees keep these key risks under review, and adopt mitigation strategies as appropriate. The Charity already has a risk analysis policy specifically relating to decisions regarding whether or not the Charity should engage with litigation in furtherance of the Charity’s charitable purposes.

Next 12 months

In the next 12 months, ADF UK will prepare to host a number of major events in the UK. One event, in partnership with other ADF International entities, will seek to train students and graduates of law and public policy on how to engage in advocacy within the Charity's mission areas (planned for September 2025). The second event will focus on bringing together key policy makers and influencers on the issue of freedom of expression (planned for February 2025). ADF UK will continue to challenge misuse of public order legislation in a way that curtails freedom of expression and to provide commentary to the church and public audiences through the various channels through which it engages.

Structure, governance and management

The charity is a company limited by limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the reference and administrative details page.

 

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:

 

Mr P Coleman
Mr A K Moore
Mr R Clarke
Mr L Wilkinson
Mr N Daley
ADF INTERNATIONAL (UK)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

Any new Trustees are appointed by the existing Trustees in accordance with the Memorandum and Articles. The current Trustees decide upon the procedures necessary for the induction and training of new Trustees. This will be tailored according to the experience of the new Trustee.

 

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.

 

Organisational structure and decision making

Responsibility for setting policy and for making operating decisions rests with the Trustees who meet regularly to monitor the activities of the Charity. The Trustees are in the process of considering a scheme of delegation in relation to the operational management of the Company.

 

New Trustees are recruited by recommendations from existing Trustees, through the Charity’s networks and the wider community of Christians working in the field of religious freedom, or through advertising. When appointing new Trustees, the existing Trustees take into account the requirement of specialist skills needed. New Trustees are appointed at Board meetings following recommendation of the existing Trustees, and provided no objection has been raised by Alliance Defending Freedom (a registered s501(c)(3) non-profit entity in the US). Every new Trustee must affirm their acceptance of the Charity’s statement of faith. Apart from the initial Trustees, whose terms of office are staged as set out in the Articles, each Trustee is appointed for a term of three years. A Trustee whose term of office has expired may, if willing and eligible to act, be reappointed.

All new Trustees are presented with a copy of the Articles, The Charity Commission guidance “The Essential Trustee”, recent financial statements, key strategy, and business planning documents as well as the Charity’s policies and previous minutes of recent Trustees’ meetings.

 

The Trustees have reviewed and adopted pay scales for staff common to other ADF International entities. These are based on the skills required, experience obtained, market conditions and cost of living.

 

ADF UK is governed by its Trustees who are bound to act in its best interest. Where it provides for greater effectiveness, cost savings, or for other reasons, ADF UK will co-operate with other ADF International entities around the world.

Auditor

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

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

Mr P Coleman
Trustee
Dated: 27 March 2025
ADF INTERNATIONAL (UK)
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The Trustees, who are also the directors of ADF International (UK) 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.

ADF INTERNATIONAL (UK)
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF ADF INTERNATIONAL (UK)
- 6 -

Opinion

We have audited the financial statements of ADF International (UK) (the ‘charity’) for the year ended 30 June 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 June 2024 and of its incoming resources and application of resources, 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 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or

-

sufficient accounting records have not been kept; or

-

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

-

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

ADF INTERNATIONAL (UK)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF ADF INTERNATIONAL (UK)
- 7 -
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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

 

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.

ADF INTERNATIONAL (UK)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF ADF INTERNATIONAL (UK)
- 8 -

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:

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

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 directors 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.

ADF INTERNATIONAL (UK)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF ADF INTERNATIONAL (UK)
- 9 -

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Angela Craigan (Senior Statutory Auditor)
for and on behalf of Harbinson Mulholland
27 March 2025
Chartered Accountants
Statutory Auditor
6th Floor, East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
BT1 3LP

Harbinson Mulholland is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

ADF INTERNATIONAL (UK)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Unrestricted
Unrestricted
funds
funds
2024
2023
Notes
£
£
Income from:
Donations and legacies
3
1,250,222
998,704
Other trading activities
4
71,404
69,848
Total income
1,321,626
1,068,552
Expenditure on:
Raising funds
5
9,031
12,394
Charitable activities
6
1,118,253
980,724
Total expenditure
1,127,284
993,118
Net income and movement in funds
194,342
75,434
Reconciliation of funds:
Fund balances at 1 July 2023
374,432
298,998
Fund balances at 30 June 2024
568,774
374,432

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

ADF INTERNATIONAL (UK)
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
78,905
94,160
Current assets
Debtors
14
110,556
104,251
Cash at bank and in hand
442,737
242,793
553,293
347,044
Creditors: amounts falling due within one year
15
(63,424)
(66,772)
Net current assets
489,869
280,272
Total assets less current liabilities
568,774
374,432
The funds of the charity
Unrestricted funds
568,774
374,432
568,774
374,432

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2024, although an audit has been carried out under section 144 of the Charities Act 2011

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 26 March 2025
Mr P Coleman
Trustee
Company registration number 09923116 (England and Wales)
ADF INTERNATIONAL (UK)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
207,149
84,726
Investing activities
Purchase of tangible fixed assets
(8,661)
(16,095)
Proceeds from disposal of tangible fixed assets
1,456
-
Net cash used in investing activities
(7,205)
(16,095)
Net cash generated from financing activities
-
-
Net increase in cash and cash equivalents
199,944
68,631
Cash and cash equivalents at beginning of year
242,793
174,162
Cash and cash equivalents at end of year
442,737
242,793
ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Charity information

ADF International (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is 11 Bressenden Place, London, SW1E 5BY.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum & 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 financial statements have been prepared under the historical cost convention. 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.

 

All funds for the year ended 30 June 2024 and 2023 are unrestricted. It has not been deemed necessary to prepare a full funds note because of this.

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.

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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

 

Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from the rental of property.

 

The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Expenditure

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

 

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.

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

 

Expenditure on raising funds comprises the costs predominantly incurred on fundraising activities.

 

The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the charity is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.

 

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

1.6
Tangible fixed assets

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:

Leasehold improvements
Straight line over 8 years
Fixtures and fittings
Straight line over 8 years
Computers
Straight line over 3 years

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
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.

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Financial instruments

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

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
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.

 

The trustees consider the most significant areas of estimate to be the depreciation charged on tangible fixed assets. The accounting policies detailed in the notes to the accounts describe the policies adopted for calculating depreciation. These have been based on the assessed useful economic lives of the assets capitalised and charged accordingly.

3
Donations and legacies
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Donations and gifts
1,250,222
998,704
Donations and gifts
Donations of cash and similar
117,048
199,571
ADF support
1,119,975
789,863
Income tax recoverable
13,199
9,270
1,250,222
998,704
4
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Office sublet and deposits

71,404
69,848
5

Raising funds

Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Mailing costs and other support liaison
9,031
12,394
9,031
12,394
ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Expenditure on charitable activities
2024
2023
£
£
Direct costs
Staff costs
729,920
575,860
Depreciation and impairment
22,460
20,087

Rent, rates and office utilities

161,662
149,149

Communications

40,224
38,582

Events and training

5,800
40,297

Advertising

41,716
51,674

Direct costs

357
1,100

Travel

53,205
43,238

Advocacy costs

-
25,142
1,055,344
945,129
Share of support and governance costs (see note 7)
Support
54,929
33,075
Governance
7,980
2,520
1,118,253
980,724
Analysis by fund
Unrestricted funds
1,118,253
980,724
7
Support costs allocated to activities
2024
2023
£
£
Office equipment and website
8,912
8,600
Sundry expenses
18,783
13,557
Legal fees
17,387
5,116
Accounting costs
9,791
5,802
Insurance
56
-
Governance costs
7,980
2,520
62,909
35,595
Analysed between:
Charitable Activities
62,909
35,595

Governance costs includes audit fees of £6,300 (2023 - £6,000 in audit fees).

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
8
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
6,300
6,000
Depreciation of owned tangible fixed assets
22,460
20,087
9
Trustees

During the year the charity paid expenses totalling £Nil (2023: Nil) whilst carrying out duties associated with being trustees.

 

10
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
9
8
Employment costs
2024
2023
£
£
Wages and salaries
642,699
508,135
Social security costs
78,206
61,432
Other pension costs
9,015
6,293
729,920
575,860
The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,000 - £70,000
3
1
£70,000 - £80,000
-
2
£80,000 - £90,000
1
-
£90,000 - £100,000
2
1
£100,000 +
1
-

Contributions totaling £3,302 (2023: £2,641) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

 

11
Key management personnel

In aggregate key management received employment benefits totalling £115,305 (2023: £158,606)

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
12
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

 

13
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 July 2023
118,158
18,290
11,343
147,791
Additions
-
-
8,661
8,661
Disposals
-
(1,456)
-
(1,456)
At 30 June 2024
118,158
16,834
20,004
154,996
Depreciation and impairment
At 1 July 2023
44,309
3,713
5,609
53,631
Depreciation charged in the year
14,770
2,467
5,223
22,460
At 30 June 2024
59,079
6,180
10,832
76,091
Carrying amount
At 30 June 2024
59,079
10,654
9,172
78,905
At 30 June 2023
73,849
14,577
5,734
94,160
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
22,437
19,126
Prepaid rent
42,616
42,616
Other debtors
16,346
11,365
Prepayments and accrued income
29,157
31,144
110,556
104,251
15
Creditors: amounts falling due within one year
2024
2023
£
£
Other taxation and social security
2,261
23,117
Trade creditors
11,309
-
Accruals and deferred income
49,854
43,655
63,424
66,772
ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Creditors: amounts falling due within one year
(Continued)
- 20 -

Of the above, £35,160 (2023: £35,160) relates to deferred income for rent invoiced in advance.

 

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,015
6,293

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
Operating lease commitments

At the reporting end date the charity (until the next break clause and ignoring the potential effect of future rent reviews) had outstanding commitments for future minimum lease payments under a non-cancellable operating lease for rental buildings, which fall due as follows:

2024
2023
£
£
Within one year
77,660
77,660
Between two and five years
4,681
82,341
82,341
160,001

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £82,341 (2023: £160,001).

During the year the charity was charged £77,660 (2023: £77,660) for its operating lease.

18
Pension Contributions

During the year the charity paid pension contributions of £5,974 (2023: £2,346) for defined contribution personal pension schemes. At the balance sheet date pension contributions were owing totalling £2,065 (2023: £320)

19
Related party transactions

There were no disclosable related party transactions other than stated in the note concerning Trustees during the year (2023 - none).

ADF INTERNATIONAL (UK)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
20
Funds

During the year the charity received and spent no amounts of restricted funds (2023: £Nil). The opening and closing balance of restricted funds was £Nil and therefore at year end all assets and liabilities of the charity were in respect of the general funds. In 2023 the opening and closing balance of restricted funds was £Nil and therefore at 2023 year end all assets and liabilities of the charity were in respect of the general funds.

21
Members

Each member of the company commits to contribute if the charity is wound up an amount of £1.

22
Cash generated from operations
2024
2023
£
£
Surplus for the year
194,342
75,434
Adjustments for:
Depreciation and impairment of tangible fixed assets
22,460
20,087
Movements in working capital:
(Increase) in debtors
(6,305)
(9,447)
(Decrease) in creditors
(3,348)
(1,348)
Cash generated from operations
207,149
84,726
23
Analysis of changes in net funds

The charity had no material debt during the year.

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