The trustees present their annual report and financial statements for the year ended 31 December 2025.
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 governing document, 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 objects of SGA are to assist the Church in Central and Eastern Europe, Central Asia, Far East Russia and Mongolia to become fully equipped to fulfil the Great Commission of Jesus Christ, particularly among its own peoples by training workers, sponsoring leaders, providing Christian literature and distributing aid.
The means adopted to accomplish the objectives of the charity are summed up in the purpose statement – To serve Christ and His Church.
The charity believes that the most effective way for the Mission to achieve its objectives is to find and support local churches and individuals who have the vision to make Jesus and the love of God known through their words and actions. Therefore, the charity makes grants, provides teaching, training, gifts in kind and other resources to churches, individuals, and organisations through their four core ministries:
(1) Biblical Leadership Training [Training Workers] which prepares the indigenous church for Christian service through our Mission Schools. Over the years, leadership training, theological studies, and other educational training have been offered to students in Poland, Slovakia, Hungary, Serbia, Bulgaria, Romania, Moldova, Ukraine, and Central Asia. Gifted Christian workers recommended by the local churches are given the opportunity to undertake a course of study to equip them for a lifetime of Christian service which brings maximum benefits to the public.
Students in Balti Mission School, Moldova, and Almaty Bible Institute, Kazakhstan receive grants to help cover the costs involved.
In addition, Resources for Ministry, formerly known as the Independent Correspondence Bible School in Central Asia, provides Christian education through extension learning.
(2) Leadership Support [Supporting Leaders] includes providing funds for pioneering Gospel workers, evangelists, church planters and missionary pastors. This offers practical and financial assistance to Christian workers who cannot be supported in-country. If this support were not available some would be required to leave their Christian ministry for work opportunities elsewhere. Also, supporting other church projects that include making grants towards the purchase or building of public places of worship and providing transportation for evangelists and pastors, is helping to advance the Gospel.
(3) Christian Literature [Publishing Literature] provides resources such as Bibles and other literature in countries that have limited Biblical resources. Bible Commentaries plus other resources provide helpful information in understanding Biblical truth.
(4) Crisis Response [Distributing Aid] provides vital support through poverty relief, medical assistance, food aid, emergency aid, and disaster relief programmes. These efforts are designed to meet urgent needs and serve communities in times of crisis.
This support also enables our partners to demonstrate God’s love in practical and meaningful ways. Through this ministry, those who are poor and in need—including the vulnerable, forsaken, forgotten, and neglected receive essential care and assistance.
Impoverished communities are provided with the necessities for survival, along with access to medical care at critical moments. The impact of this work is significant, delivering widespread and lasting public benefit to those who need it most.
Grant making is always in response to requests from church leaders in Eastern Europe, Central Asia, Far East Russia and Mongolia, or a need observed by staff while on Field trips. Grants are only made to known partners and those recommended by long standing and trusted sources. Trustees have delegated responsibility for grant making from funds to the General Director for grants up to £10,000 from General Funds and £20,000 from Designated Funds. Amounts in excess of this must be approved by the Board of Directors.
We recognise the need to take steps to prevent the use of grants for money laundering, terrorist activity, bribery and purposes other than those for which they were given. To this end, Trustees hold SGA’s partners accountable for the funds, resources, aid or training they have received and require them to produce regular reports of their activities and use of funding. In addition, SGA staff members visit partners who receive funding or other help from SGA.
All our partners understand that the grants, training, or gifts in kind are to be used for the benefit of the community they serve and are to be freely available to all sections of the community.
Training Workers
Teaching continues across SGA-supported mission schools and Bible Institutes throughout Central and Eastern Europe, as well as Central and Northern Asia. Schools in Bulgaria, Poland, and Moldova are currently experiencing strong enrolment, with healthy student groups.
In Romania, the Practical School of Theology in Oradea offers courses that complement the programme at Emanuel Christian University, which also receives partial support from SGA.
Despite the ongoing conflict, Odessa Theological Seminary in Ukraine, financially supported by SGA, continues to provide courses at all levels of theological education.
In Asia, training efforts are making steady progress. A major encouragement comes from Almaty Bible Institute, which has welcomed its largest-ever intake this academic year, with 110 students enrolled.
Partnerships with the Western Siberian Bible College in Omsk, Russia, and the Preachers’ School in Mongolia are also developing steadily, contributing to the ongoing growth of ministry training in the region.
Supporting Leaders
This project provides financial assistance to missionary families, supports the establishment of Houses of Prayer, and helps meet transportation needs.
There are approximately 200 SGA-supported missionary pastors and students serving across Central and Eastern Europe, as well as Central and Northern Asia. Over the past year, twenty-three new missionary families have been added to the support programme. The Board of Directors is committed to maintaining support for our current number of national Gospel workers and sustaining all ongoing field projects at their present level.
Church Buildings - Funds were allocated for the purchase and reconstruction of Houses of Prayer in Moldova, Romania, and Armenia. Additionally, a loan was provided to a church in Poland to support the refurbishment of its building.
Transportation – Missionaries in North Macedonia, Ukraine, and Tajikistan received support for vehicle repairs and replacements, while two vehicles were provided in Kazakhstan.
Publishing Literature
SGA continues to focus its literature efforts on Bible projects in several languages. Funding was provided for Bible publications in Kyrgyzstan, and alongside our partners, Bibles were also distributed in Ukraine.
During 2025, several Bible projects were supported in Armenia, including Family Bibles, New Testaments, and Russian/Armenian bilingual editions. Funding for the Nenets Bible translation project is ongoing, while the North Macedonian New Testament has now been completed. Books were also published in Slovak.
Regular support was provided for in-country writers in Macedonia and Romania.
Distributing Aid
Widows’ Project: This project continues to expand, providing essential funding for vital supplies such as heating, medical care, food, and clothing across Central and Eastern Europe, as well as Central Asia.
Hope Centres: Hope Centres offer food and shelter to homeless children and other vulnerable individuals.
During the year, the construction of these facilities was supported in Uzbekistan, Kyrgyzstan, and Armenia.
SGA has also continued its significant financial support throughout 2025 for the Christian humanitarian organization Bread of Life in Serbia, delivering meaningful public benefit to all those who have received assistance.
Ukraine
During 2025, the Mission’s commitment to supporting the most vulnerable has been clearly demonstrated through a number of important initiatives.
Funding was provided to supply fresh bottled water to several village communities, ensuring access to safe drinking water in areas of urgent need.
Hundreds of widows and children, including many who have lost loved ones due to the war, have received practical and spiritual support through local churches.
The Medical Evangelism Ministry in Ukraine has been offering free health checks, with SGA funding covering the cost of essential medications.
Following consultation with Ukrainian church leaders, it has been agreed that funds should be allocated to meet both ongoing and future needs. It is evident that significant financial resources will be required when the war comes to an end.
Priority funding areas
Continued relief for refugees £140,000
Caring for widows and families £40,000
Post-trauma treatment £20,000
Grace Shelter & Transition House £15,000
Rebuilding Houses of prayer £70,000
Printing of Bible Sets £50,000
Resettling SGA’s ministry partners £70,000
Replacing vehicles £40,000
Phoebe Projects
The following ministries received funding.
Ministry in Central Asia received funding for a shelter for vulnerable mothers and children and sponsorship for a missionary to Muslim women.
Two missionaries who evangelize children are supported - Marina Tapcova [Russia] and Bohuslava Havrilova [Slovakia].
Emanuel Hospice, Oradea, Romania along with Casa Filip, Cluj, Romania, received substantial funds. Both of these facilities offer care to the terminally ill.
Mary’s House which offers accommodation and counselling for women in crisis pregnancy situations, including those considering abortion, offering support during a difficult time.
Grace Shelter which offers children vital care. House parents Olesya Krokhinova and Maria Shykina are currently providing a safe and stable environment for 40 children and young people.
Children’s Ministry
Funds supported camp ministries, enabling thousands of children to attend camps across Mongolia, Central Asia, Moldova, and Ukraine. Additional funding supported the “Joy of Christmas” initiative in Central Asia, Mongolia, and Armenia, providing Christmas gifts to thousands of children, with a similar programme also established in Ukraine and Moldova.
Media Ministry (Radio & TV)
Ongoing support was provided for two radio programmes via Trans World Radio in Central Asia and one in Mongolia. Additional resources were used to distribute radios and preloaded SD cards across Central Asia. A weekly TV programme produced by SGA-sponsored Romanian missionary Mihai Chideșa also received funding to help cover production and broadcasting costs.
Future Activities
Ministry developments:
SGA is actively engaged in discussions with ministry partners regarding the continued development of work in Mongolia.
Armenia, as a new SGA ministry country, is currently under discussion with the Field Director and Assistant to the Field Director, with several ministry opportunities being explored.
It has bee agreed to explore new ministry opportunities across Central Europe.
Bibles for the Nations is a special project carried out in partnership with other organisations. During 2026, there are ambitious plans to publish and distribute Bible sets across Central Asia, including Turkmenistan.
Literature projects are being established in Slovakia, in partnership with The Gospel Coalition.
The Preachers’ School in Mongolia is expanding, with the prospect of enrolling its largest number of students to date.
The Mission intends to continue supporting its current number of sponsored missionary pastors and to maintain funding for all ongoing projects across Central & Eastern Europe and Central & Northern Asia. Funding will be raised through deputation meetings, the publication of three project leaflets annually, the Project Response Form included in bi-monthly mailings, and credit card/online giving.
The Mission also seeks to expand camp ministry in Armenia, Mongolia, and Siberia.
Regional Representative posts are needed in several UK regions, which we are actively seeking to fill.
Plans are in place for two mission trips in summer 2026, with one to Hungary and another to Romania. This is a unique opportunity to introduce people to world mission.
Strategies
All projects were funded by donations from churches and individuals throughout United Kingdom and Ireland.
Throughout the year, the charity produced three project leaflets and six “Response Cards,” which were distributed alongside the bi-monthly mail-out. In addition, efforts were made to promote online giving, standing orders, and credit card donations to encourage regular financial support.
Income from legacies and trusts also provided a significant contribution to overall funding. Where applicable, Gift Aid was claimed, further enhancing the value of donations received.
The charity successfully met all project goals in Central & Eastern Europe and Central & Northern Asia through a combination of deputation, mail-outs, and sponsorship initiatives.
The role of volunteers
The Trustees are deeply grateful to the many volunteers across the UK who generously give their time and energy to support Slavic Gospel Association and its partners. Volunteers contribute in a variety of ways, including occasionally assisting in the office with the preparation of the bi-monthly mail-out. Others play an important role in planning itineraries for staff members. In addition, Phoebe Representatives serve in a voluntary capacity, providing valuable support to the organisation’s work.
Activities for the public benefit
SGA currently serves local evangelical churches through four key areas of ministry: Biblical Leadership Training, Leadership Support, Christian Literature, and Crisis Response. The purpose of these activities is to equip churches to effectively serve their communities and provide assistance where it is most needed.
Across all projects and ministries, the public benefit to individuals, families, and communities remains central. Since its inception, the charity has been committed to demonstrating compassion for those in need and maintaining a caring, supportive approach toward the vulnerable and disadvantaged.
Risk Management
The principle financial risk for SGA is of receiving insufficient regular income to pay grants to its partners in Eastern Europe, Central Asia, Far East Russia and Mongolia. SGA limits this risk by regular communication with donors and actively seeking new donors in particular churches and trust funds.
Trustees are aware of other financial risks including possible fraud and have systems in place to mitigate major risks. Cash is handled in both received and distributed gifts. Fraud is countered by two signatories on receipts for all transactions being kept and checked against planned expenditure. Recipients of gifts are known to SGA.
The Trustees also regularly review other operational risks to which the company is exposed and are satisfied that systems are in place to mitigate exposure to the major risks, which are identified as:
• Loss of key staff: Each member of our small staff performs a significant role. Good staff relations and a sense of Divine calling has led to an excellent retention record.
• Safety: Staff are briefed on personal safety precautions to be taken while abroad.
SGA continues to develop policies and procedures to manage risk and ensure effectiveness, probity and legal and regulatory compliance.
Project Fund Administration
No administrative charges will be deducted from funds allocated for special projects (PFA). All financial gifts designated for projects, mission schools, and leadership support will be distributed in full to their intended purposes.
Key Performance Indicators
There are several measures in place to assess the impact that the charity’s activities are having in Central & Eastern Europe and Central & Northern Asia.
All recipients are held accountable to the Trustees of Slavic Gospel Association for the funds, resources, aid or training they have received and are expected to produce regular reports of their activities and use of any funding.
Regular visits are conducted with partners receiving ongoing funding, while occasional visits are made to those receiving significant one-off support. These visits help gather and evaluate information on progress and impact.
The progress of Mission School students is monitored through test, examination, and assignment results. In addition, the performance of graduates is tracked by Mission School directors and local church leadership.
Participants supported through Leadership Support programmes provide regular reports, enabling the charity to assess their effectiveness. Each participant also undergoes periodic financial reviews of their income.
Beneficiaries of transportation funding are monitored on an ongoing basis to ensure appropriate use and impact.
The effectiveness of the charity’s Crisis Response ministry is evaluated through regular reports and meetings conducted during ministry trips by SGA staff.
All partners recognise that any grants, training, or gifts in kind are provided in pursuit of the charity’s objectives and are intended to benefit the wider community they serve.
Asset cover for funds
Note 25 sets out an analysis of the assets attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity's obligations on a fund-by-fund basis.
The financial result for the year shows a surplus of £1,006,176 [2024: deficit of £188,490], before changes in fixed asset valuations.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained for the following reasons.
[a] to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice and
[b] to cover administration, fund-raising and support costs without which the charity could not function.
The trustees consider it prudent that designated reserves should be sufficient:
[a] to avoid the necessity of realising fixed assets held for the charity's use;
[b] to cover one year's administration fund-raising and support costs;
[c] to provide a pool equal to 10% of the average charitable expenditure over the preceding two years from which funds can be designated to specific projects.
The Board of Directors, which meets three times per year, administers the Charity and by this means monitors and ensures that there is sufficient funding to give working capital for the forthcoming period. Occasionally a sub-committee may be appointed by the Board of Trustees to complete a particular task and report back to the Board. The Trustees review their strategy and consider how best to use the surplus free reserves.
Of the £1,658,108 of unrestricted funds held at the year end, the trustees anticipate that these will be used for increased funding for current projects and planned ministry expansion.
However, the directors are aware of the need to have large sums readily available sometimes for emergency relief and other charitable purposes.
All staff salaries are based on market value and are not performance related.
Trustees keep under review the need for free reserves which are those unrestricted funds not invested in tangible fixed assets or designated for a specific purpose. Currently, to allow SGA to be managed efficiently and to provide a buffer for adverse contingencies, the Trustees’ policy is that such reserves should be maintained at a level of between three and six months of expenditure. The level of reserves required to be maintained is around £300,000. This amount excludes the value of all assets as disposing of them could exceed six months.
The Trustees review the major risks that the Charity faces and believe that maintaining the reserves at the level stated will enable the Charity to meet its short term commitments in the event of adverse conditions.
The Board of Slavic Gospel Association has ruled that the preferred option of the charity is to invest funds in the many urgent needs presented on the Field rather than investment managed funds in the UK. This will be reviewed should surplus funds become available.
Data Protection
In view of data protection regulations, the Trustees have a policy in place. This policy is available on the Charity’s website.
Safeguarding Vulnerable Groups
The Trustees have a policy that outlines the Charity’s guidelines and precautions in relation to vulnerable groups who are being provided for or receiving care through SGA funding.
The company is a company limited by guarantee, company number 00945991, and charity registration number 258253. The flysheet to the accounts gives details of the charity's principal addresses and those of other relevant organisations.
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:
Trustees are not paid for their service in this role other than expenses and none had any financial beneficial interest in the company. A register of Trustees’ interests is held to ensure that there are no conflicts of interest and this is updated annually. The directors act as Trustees of the Charity.
The directors are the Council Members to whom the overall responsibility of managing and running the Charity is entrusted. However, the General Director is responsible for implementing the vision and strategy agreed by Trustees and the day to day running of the organisation. As a co-opted member of the Council, he reports back at Trustees’ meetings. All major policy decisions and those concerning capital expenditure are ratified by the Council who meet every four months with occasional online strategy meetings as required.
The Council Members are encouraged to propose names of possible future members, considering their:
skills, knowledge and experience
location and availability
Informal meetings followed by formal meetings are held with potential members, leading to a decision by the Council as to whether such persons are invited to serve. These procedures are accompanied by furnishing the candidate with the History and Aims of SGA, the Doctrinal Statement and the Responsibilities of a Council Member.
A new Council Member is encouraged to undertake further training related to his particular role in the Association.
The company has sister organisations in Australia, Canada, New Zealand and the USA.
Trustees are not paid for their service in this role other than expenses and none had any financial beneficial interest in the company. A register of Trustees’ interests is held to ensure that there are no conflicts of interest and this is updated annually. The directors act as Trustees of the Charity.
The trustees, who are also the directors of Slavic Gospel Association (British Section) Limited 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).
In accordance with the company's memorandum and articles of association, a resolution proposing that James Todd & Co. be reappointed as auditors of the company will be put to the Annual General Meeting.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Slavic Gospel Association (British Section) Limited (the ‘charity’) for the year ended 31 December 2025 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:
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.
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.
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.
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.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
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.
James Todd and Co Limited 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Slavic Gospel Association (British Section) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 22 Little Church Street, Rugby, Warwickshire, CV21 3AW, England.
The financial statements have been prepared in accordance with the charity's governing document, 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 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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.
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.
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.
The charity's income consists of voluntary income, income from charitable activities and investment income.
The charity is not registered for VAT.
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.
Fundraising and trading income consists of monies generated from the sale of books, CDs and cards, as well as registration fees from delegates at the Charity's annual supporters conference. This is also recognised as income, when it is received.
Investment income is wholly bank and stock interest generated and is recognised in the SOFA when receivable.
All expenditure is incurred in pursuit of the Charity's objects as laid down in the Memorandum and Articles of Association and is recognised in the accounts when payable.
The Charity's accounting system is designed to trace general fund expenditure and distinguish it from that directly attributable to a project. All expenditure incurred on designated funds (see analysis at note 8) is treated as direct charitable expenditure for charitable activities.
General fund expenditure is allocated to 5 broad headings of Administration, Promotions, Council Expenses, Eastern European Field and UK Home.
Administrative expenditure is treated as support costs for charitable expenditure whilst promotions costs are shows as costs of generating voluntary income as these relate to the production of promotional material.
Council expenses are the costs of holding regular council meeting, including reimbursing travelling expenses of the council members, and these are included as governance costs. Governance costs also include fees of the auditors to meet external scrutiny requirements.
Eastern European Field expenditure is treated activities undertaken directly for charitable activities.
UK Home expenditure is split between costs of generating voluntary income and activities undertaken directly for charitable activities as it includes the costs of representatives who also make trips to Eastern Europe.
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.
During 2020, it was deemed appropriate that land be depreciated at 0%. 25% of the land and buildings value has been appropriated to land and the cumulative effect of historic depreciation has been reversed. This is considered as a change of estimate, being a change in depreciation rate.
Tangible fixed assets are capitalised if they can be used for more than 1 year, and cost at least £1,000.
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.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Loans issued
Loans are occasionally issued to supported projects in Eastern Europe. These funds are repayable over a set term and no interest in charged. The amounts recoverable are included as receivables in the accounts.
If in the future the Trustees decide not to request repayment of these amounts, they will be written off as grants paid under Direct Charitable Activities.
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.
Legacies which are expected, but which do not meet the recognition criteria for Legacies Receivable are considered as contingent assets. As theses amounts generally cannot be valued with reasonable certainty, these are not seperately disclosed.
None of the trustees (or any persons connected with them) received any remuneration during the year, and during the year, one trustee was reimbursed for expenses totaling £131 (2024 - one trustee was reimbursed for expenses totaling £183) to cover costs incurred on charity business.
Total donations received from directors, key management personnel and their related parties, amounted to £10,410 (2024: £24,721). No related parties made purchases of things like books (2024: No related parties made purchases).
There are no other related party transactions requiring disclosure.
The charity was under the control of the directors throughout the year.
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.
All tangible fixed assets are for charitable use, other than a small quantity of office equipment used in administration.
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.
These are unrestricted funds which are material to the charity's activities.
The Project Fund payments as shown in this note include monthly contributions to General Funds for management and administration costs directly attributable to the work. These are provided at a maximum of 15% (9% admin, plus 6% publicity) on all gifts. The total transferred in this way is shown in notes 7 and 9 above.
Transfers between the project and emergency funds represent monies which have been utilised from General funds to cover the work carried out towards these individual projects.
Each of the items listed above represents an area of activities that the charity supports within Eastern Europe. Together these funds for the "Project Funds" which the charity operates. These are as a result of donations given for use towards a particular project, but for which the charity retains ultimate discretion as to its application. The transfers into these funds represent monies from General Funds to cover deficits on individual funds, as well as additional monies set aside by the trustees for use towards these projects.
In order to increase the accuracy of the presentation of the financial status shown in the accounts, it has been decided by the Trustees to designate funds to the value of the tangible fixed assets. This is to reflect the restrictions that the assets impose upon the funds held; the money tied up in the property is not free to be spent without the assets being sold to realise these funds.
Monies have also been designated to retain sufficient funds to meet the charity's obligations should further funds not become available. The justification of this amount is as follows:
To avoid the necessity of realising fixed assets held for the charity's use (see details above);
To cover one year's administration, fund-raising and support costs;
To provide a pool equal to 10% of the average charitable expenditure over the preceding two years from which the funds can be designated to specific projects.
Transfers to/from the Fixed asset fund represent the net movements on the tangible fixed assets during the year.
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 (2024 - none) aside from those already detailed in the trustees disclosure (note 12).
The charity had no material debt during the year.