Agape Ministnes Limited Company Registration 949989

Agape Ministries Limited

Report and Financial Statements

For the 12 Months Ended 31 December 2019

Charity number (England and Wales) 258421Charity number (Scotland) SC042332

Company number 949989

Agaipe. ihlilt»tiles Llllllterl Cot'itp illy Reglstt ation 949 189

Contents

1 Reference and Administrative Details ...

2 Report of the trustees ...2.1 Structure and Governance. . .... . .................. ........ .

2.1.1 Governing Document

2.1.2 The Trustees

2.1.3 Appointment of Trustees

2.1.4 Organisation

2.1.5 Risk Management

2.1.6 Responsibility of trustees

2.1.7 Statements as to disclosure of information to auditors

2.2 Objectives and activities.

2.2.1 Our Purpose

2.2.2 Our Vision

2.2.3 Our Values

2.2.4 Our Mission

2.2 5 Public Benefit

2.2.6 Volunteers

2.3 Achievements Hc Performance.

2.3.1 At home

2.3.2 At work

2.3 3 At university

2.34 And abroad

2.3.5 Central Team

2.4 Plans ......

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2.4.1 At home

2.4.2 At work

2.4.3 At university

2.4.4 And abroad

2.4.5 Central Team

2.5 Financial Review

2.5.1 The Trustees' Reserve Policy

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Agape Ministries Limitecl Company Registration 949989

2.5.2 Auditors 22

2.6 Independent auditor's report to the members of Agape Ministries Limited 23

3 Financial Review 2019 27

3.1 Statement of Financial Activities for 12 months ended 31 December 2019

(Incorporating an income and expenditure account). ..

3.2 Balance Sheet

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3.3 Statement of Cash Flows. . 29

3.4 Notes to financial statements. 30

1. Accounting Polioes

2. Incoming Resources

3. Expenditure on Raising Funds

4. Other Expenditure

5. Expenditure on Charitable Activities

6. Net Incoming Resources for the Year

7. Council of Management

8. Staff Costs

9. Taxation

10. Intangible Fixed Assets

11. Tangible Fixed Assets

12. Current Asset Investments

13. Stock

14. Debtors

15. Creditors

16. Contingent Liabilities

17. Analysis of Funds

18. Unrestricted Funds

18. Unrestricted Funds (cont)

19. Restricted Funds

20. Reconciliation of net income/(expenditure) to net cash flow from operating activities

21, Analysis of cash and cash equivalents

22. Other Financial Commitments

23. Analysis of Net Assets between funds

24. Related Party Transactions

25. Events after the balance sheet date

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Argclp, i':ilnl. &tr le s Lln&ltnf COf1 if)'1l)'y' Rl'(jl5t HEIOl1 9 19909

Agape t1inistnes Limited Company Registration 94998'I

1 Reference andAdministrative Details

Stotus

CompanyNumberCharity Number

Registered ofticeand operationaladdress

The organisation, established in 1969, is a charitable company limited by

guarantee, incorporated on 7'" March 1969.Agape is a registered chanty

in England and Wales, and in Scotland.

949989

258421 (England and Wales)

SC042332 (Scotland)

167 Newhall Street

Birmingham

83 1SW

Choir Mr Gary Palmer

Other trustees Rev Richard Boothroyd

Mrs Lisbet Diers

Mr Kevin Russell

Mr lan Johnson

Mr Javier Garcia (ex officio)

Ms Elspeth Hughes-Penny

Mrs Joanne Arkell

Notional Director Mrs LesleyCheesman

CompanySecretory

Miss Nicole Barnard

Bankers

Solicitors

Auditors

Barclays Bank PLC

Colmore Row

PO Box 34

BIRMINGHAM

83 2BY

Anthony Collins Solicitors LLP

134 Edmund Street

Birmingham

83 2ES

Mazars LLP

45 Church Street

Birmingham

83 2RT

Ardape i'lliustl Ies Lliililerl Colllpally Regis(i atloil 9-19909

2 Report of the trusteesThe trustees (whom we refer to as our Council of Management — COM) are pleased to present their report

together with the finanoal statements of Agape Ministries Ltd ("the chanty" or "Agape UK") for the twelve

months ending 31 December 2019.

Reference and administrative information set out on page 4 form part of this report. The finanoal

statements comply with current statutory requirements, the Memorandum and Articles of Association and

Statement of Recommended Practice —Accounting and Reporting by Charities (issued March 2005).

2. 1 Structure and Governance2.1.1 Governing Document

The company is established under a Memorandum of Association which sets out its ob)ects and powers as

a charitable company, and is governed under its articles of association.

2.1.2 The Trustees

The trustees, under charity legislation, have and accept ultimate responsibility for directing the affairs of

the chanty, and ensuring that it is solvent, well-run, and delivering the charitable outcomes for the benefit

of the public for which it has been set up.

The trustees, who are also directors under company law, who served during the year and up to the date of

this report are listed in page 4 of this report. Members (including trustees) of the charity guarantee to

contribute an amount not exceeding f) to the assets of the charity in the event of winding up.

2.1.3 Appointment of Trustees

Application process and future training requirements for new and existing Trustees will continue to be

reviewed on a regular basis.

2.1.4 Organisation

Agape UK is a Christian organisation and part of Campus Crusade for Christ International. Although our

main activities are national, operating in seven regions across the UK, we have workers in other countnes

around the world.

Agape UK is overseen by the Council of Management (COM) which meets 4 to 5 times a year. Day to day

organisation is directed by an Executive Leadership Team (ELT) of five senior members who meet on a

regular basis, and a Round Table of department Directors. The ELT and the Round Table are led by the

National Director. All the main areas of activity (at home, at work, at university, and abroad) are

represented, as well as Operations, Communications, and Leadership Development Rt Human Resources

(LDHR). The latter three functions have infrastructural responsibility. Operations is responsible for all

finance activities including financial reporting, conferencing, and facilities management, including IT

systems and processes. Communications is responsible for communicating internally and externally,

Acgape I'iinistnes Limitecl Company Registration 949989

including the development of messages, publicity, and fundraising initiatives. LDHR is responsible for

member care, training, ongoing development of each of our workers, and recruiting.

Management and governance of Agape UK is delegated to the National Director who is accountable to

the CQM. Reports are submitted as required to Companies House and the Charity Commission.

Systems are in place for line management, appraisal, member development, and supervision, together with

grievance and complaints procedures.

2.1.5 Risk Management

During 2019, the annual risk management review was completed and COM considered the implications of

the risks identified. COM also formed their own view on high impact risks, gave input to the process and

ensured all appropnate measures were in place to manage these.

The Council of Management is satisfied that the major risks to Agape UK have been assessed and in

particular those related to the finances, operations and data protection of Agape UK, and are satisfied that

systems are in place to mitigate exposure to these risks. Reporting procedures are in place to monitor

income and expenditure. A key element in the management of financial nsk is the setting of a reserves

policy and its regular review.

The Charity is aware of its responsibilities to manage risk and appreciates updated information on this

matter from its solicitors and other professional advisors.

2.1.6 Responsibility of trustees

Company law requires the directors (who are the Trustees and members of the Council of Management)

to prepare financial statements for each financial year which give a true and fair view of the state of affairs

of the company and of the income or expenditure of the company for that penod. In preparing those

financial statements, the Council of Management are required to select suitable accounting policies and

then apply them consistently; make judgments and estimates that are reasonable and prudent; comply

with applicable accounting standards subject to any material departures disclosed and explained in the

financial statements; prepare the financial statements on the going concern basis unless it is inappropriate

to presume that the company will continue in business.

The Council of Management is responsible for maintaining proper accounting records which disclose with

reasonable accuracy at any time the financial position of the company and to enable them to ensure that

the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding

the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

2.1.7 Statements as to disclosure of information to auditors

In accordance with Company Law, as the charity's trustees, we certify that:

~ So far as we are aware, there is no relevant audit information of which the Chanty's Auditors are

unaware; and

~ We have taken all the steps that we ought to have taken in order to make ourselves aware of any

relevant audit information and to establish that the Chanty's Auditors are aware of that

information.

AcJape i&linistries Linnterl Conipany Registiaiioii 949989

2.2 Objectives and activities

2.2. 1 Our Purpose

Our charity's main purposes are set out in the objects contained in the company's memorandum of

association and include:

~ To transmit, propagate and communicate the Gospel of Jesus Christ to students and others at

Universities, Colleges, Schools and other academic institutions as well as to the public at large.

~ To help those who become Christians through receiving Jesus Chnst to grow toward spiritual

maturity and understanding and to train them to reach others with the Gospel the objective being

the fulfilment of the Great Commission of our Lord Jesus Christ as set out in Matthew 28:18-20 of

the Holy Bible.

~ To help Christians to become established as active members of local Churches and to work closely

with Churches of many denominations.

~ To relieve poverty or distress.

2.2.2 Our Vision

Agape UK's vision is to inspire people to discover Jesus at home, at work, at university, and abroad.

We believe that everyone's life can be transformed by knowing Jesus; that the decline of Christianity in the

UK must be reversed, and that we can play a key role in this.

We believe that Jesus calls us to share our faith and that every follower of Christ should be equipped to

share his gospel. We also believe in whole life ministry: helping people to discover faith in every area of

life, for the rest of their lives.

2.2.3 Our Values

We want to live radical lives of love, serwce and influence, following the model of how Jesus lived his life

on earth. This is characterised by:

Faith —in God's supremacy, filled with faith and the Holy Spirit

Unity —unified internally and building God's Kingdom together with the wider body of Chnst

Growth —committed to spintual growth, both individually and corporately.

Fruitfulness —striving for effectiveness and relevance

Joy — enjoying God and His Kingdom

Our teams apply these values differently depending on whether they work in universities, workplaces,

families, communities or cross-culturally, but these core values are fundamental for all of us.

2.2.4 Our Mission

The strategies employed to meet our vision include the following:

~ Presenting the gospel clearly in word and action. Helping Christian students on campus, or

business and community leaders (e.g. church leaders) share the gospel clearly in word and action,

gwing others the opportunity to respond.

Agape Ministnes Liniitecl Conipany Registration 919989

~ Helping indiwduals to develop and be active in their faith through small discipleship groups and

1-to-1 mentoring.

~ Contacting business and community leaders, addressing key issues in corporate life and helping

create a climate of greater understanding of the Chnstian faith and the person of Jesus.

~ Sending teams of students and graduates abroad for short-term mission projects as well as longer-

term assignments of 1-2 years.

~ Developing products and resources that aid our workers and volunteers in achieving these goals.

~ Developing strategic partnerships with like-minded groups and churches.

~ Contributing funds to the Global Aid Network, our partners working to provide humanitanan aid

to people living in situations of poverty and cnsis overseas.

2.2.5 Public Benefit

In compiling this report, the Trustees have given due regard to the public benefit guidance as issued by

the Charity Commission. Agape UK is a team of people, staff, associates and volunteers seeking to obeyGod's call to go and make disciples of all nations, helping everyone to understand the person of Jesus

Christ and how they can come into relationship with him and be reconciled with one another. Agape UK

works out its public benefit in a number of ways.

The gospel of Jesus Christ is of benefit to society at large. It prowdes a context for forgiveness, a platform

for dealing with broken relationships, a motivation for service and charity and the focus of a fulfilled and

meaningful life. We believe that communities and individuals can experience transformation as they grow

to understand and embrace God's ultimate purposes for them and for the world.

Many people become disciples of Jesus Christ through the lifestyle example of Christians - sharing God' s

love in action and word, clearly explaining God's message as revealed in the Holy Bible, prayerfully

expecting the Holy Spirit's power to transform people, our communities and whole nations.

Agape UK seeks to demonstrate this benefit through its range of mission and humanitarian activities both

here in the UK and across the globe as detailed throughout this Trustees' report.

2.2.6 Volunteers

Agape UK is blessed by the contribution of the many volunteers that get involved with each of our

ministries. We are thankful for all those who freely give their time to serving alongside us and want to

acknowledge the part they play in helping Agape UK to fulfil its mission.

Agape l linisines Limitpcl Colltl)c1lly Registralioii 949909

2.3 Achievements 8, PerformanceAgape aims to develop spiritual movements among four key pnority areas:

i. At home

Agape UK is strengthening relationships and promoting the importance of family life and community, to

enhance the emotional and spiritual wellbeing of everyone in society. Through our FamilyLife relationship

courses, events, and practical tools, we' re helping couples up and down the country to connect with one

another and build a lasting relationship with Christ.

Our Community Team is working to help Christians share the gospel of Jesus in their everyday life, in the

communities and places where they study, work, and live. Rather than focusing on a specific audience or

addressing a need, the focus is envisioning every Christian to see ministry as a 24/7 lifestyle.

2. At work

Agape UK is equipping people to confidently live and share their faith at work. We' re helping the UK's

workforce to learn more about their professional strengths and weaknesses, achieve a healthy work life

balance and gain a sense of satisfaction and purpose at work. And, through our network of music

professionals, Crescendo, we' re sharing our faith through music.

3. At university

Agape UK has been active on university campuses for over 50 years —working with students to help them

navigate the complexities of student life. We' re building student communities where people from all

backgrounds can discover more about themselves and explore big questions about life, faith, and God.

4. And abroad

Agape UK works with a number of international partners to meet the needs of people around the world.

1his includes our humanitanan work with the Global Aid Network (GAiN UK), who we partner with to send

funding, people, and resources for aid and service projects around the globe.

This work also includes our connection to the wider activities of the Agape Europe and Cru global

networks.

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Agape I linistnes Limitecl Company Registration 949989

2.3.1 At home

Our FamilyLife team work to strengthen families. We help to transform family relationships through

providing hope and practical tools based on biblical principles and knowing Christ. Our aim is to give every

person in the UK the opportunity to transform their family relationships.

There are four elements to FamilyLife's approach: events, resources, a network of people, and our digital

tool, the couples' app Toucan.

FamilyLife has been providing training, innovative programmes and resources to a growing network of

volunteers to help individuals and churches effectively minister to churched and un-churched families in

their communities. Our work provides a practical context of love and forgiveness for the gospel message.

Our events allow couples, whether they are doing well or struggling, to engage with topics including God' s

purposes for marriage, communication, resolving conflict as well as expressing love.

A Day Together

A Day Together (ADT) allows couples to invest in their relationships by spending a day together, to talk,

reconnect, and learn more about each other. The event is sprinkled with personal stories by the presenting

'facilitator couples', who share of the different their faith has made in their marriages.

In 2019, we partnered with a number of hosts to offer eight ADT couples' seminars in six cities/towns across

the UK (eleven events in 2018):

~ Gerrards Cross~ Manchester (three events were held here)~ Newcastle~ Chippenham (with involvement from the local military community)

A further two events were cancelled by the host organisation (in Solihull and Cambridge).

In 2019, 254 people attended UK-based ADT events, compared with (409/409/340 in 2018/2017/2016). We

continue to receive excellent couple feedback.

Until 2018, we typically ran between six and eight ADT events per year. We now have three UK regional

coordinators in place and are developing a Farsi-speaking ministry. We are working to increase the number

of ADT events run annually.

The drop in attendance in 2019 was partly due to the cancellation of two events, and partly because of the

shift to a regionally-run, rather than centrally-run, ministry. There is inewtably a cost dunng the time of

transition, and training the new regional coordinators takes time.

What is Love Actually?

During 2019, we presented one What is Love Actua(iy? (WILA) evening in Birmingham. WILA takes a light-

hearted look at the subject of love with clips from the named film and contrasts common cultural ideas

about love with a practical biblical view. The event includes personal testimony and we introduce a helpful

relationship tool called The Five Love Languages (by Gary Chapman).

These shorter events are very accessible for everyone and have proved popular. In total, 40 people

attended WILA in 2019 (110/230/237 in 2018/2017/2016). We have the same explanation as above for the

drop in numbers and will be interested to see the WILA numbers improve as the regional coordinators

become established.

Continued Development of Toucan

Toucan is a smartphone app which allows couples to experience some of the content of A Day Together at

their own convenience. It is a fresh and unique online experience for couples, prowding tools to build

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Agape I'Iinistries Liniiiecl Coliin:iily Reglsti'atlofi 9'-l9989

strong relationships. The 'Communications' module was launched in February 2017, the 'Conflict' module

in August 2017, and the 'Loving' module in February 2018. In 2019, we launched the 'Money' module.

During 2019, www. toucanto ether. corn received 8,035 visitors (10,310/14,442 visited in 2018/2017) and

733 people became 'confirmed Toucan users' (1,313 in 2017). We are encouraged by this high conversion

rate. We are also encouraged that millenials make up 74% of Toucan visitors and 69% of users.

We have done more work on Defining our 'pole star' or 'True North'. Our key measurement is how many

or what % of couples have their relationship satisfaction improved. We now know that;

~ Of those couples completing a Toucan module (180), 91% have benefitted from using Toucan.

~ Of those couples completing half of a module (202), 64% have benefitted from using Toucan.

We are pleased with the % of couples with improved relationships but disappointed with the low numbers

using Toucan and completing modules. In the future we will be addressing this in two ways:

~ Developing new functionality to attract the user into engaging with Toucan (due to be launched

in 2020);~ Working with our sister organisation in the USA, Cru, to use digital promotion and advertising to

promote Toucan.

We will also be launching the final 'Growing' module in 2020.

Vision & Equipping Weekend

In 2019, our V&E Weekend took place for the first time at Renewal in Solihull. 141 people attended

compared with 81 in 2018. The theme for V&E on Saturday was 'Sex —a better story'.

In total, 511 people attended Agape Family Life events in 2019. (858/1, 057/843/669 in

2018/2017/2016/2015). At the end of 2019, over 6,779 people have attended FamilyLife events since 2003,

and when Toucan is included, 10,275 people have been reached by the ministry of FamilyLife.

Team and NetworkIn 2019 we trained five facilitator couples: two from Malta and three from the UK and we hired Victoria

Aladiran in Manchester to assist Odette Clayton as a PA.

Northern Ireland. In November 2019, David and Cheryl Adair visited from FamilyLife USA. David is from

Northern Ireland and they visited to explore a calling to lead the FamilyLife ministry in Belfast. They are a

married couple with seven children. Following a variety of meetings they have decided to submit a formal

application to)oin the UK FamilyLife team. Assuming that the application is successful, and they are able

to raise the extra funds required, we hope to see them getting to Belfast in summer 2020. The current

situation is such that this is likely to be delayed.

Small GroupsThe Together small group material allows couples who attend events to take FamilyLife ministry into their

communities. Together combines practical tools with Bible study which helps couples to continue

strengthening their relationships with each other and with God. This small group resource also builds

strong friendships. Groups are running in many places across the UK and in other countries. 1he resource

has now been translated into Dutch, German, Greek, Portuguese, Romanian, Spanish and Portuguese, and

Farsi, French, Italian, and Lithuanian translations are in progress.

In the UK we launch Together small groups after our events. In 2019, 40 people indicated interest in joining

Together groups (67/80/32 in 2018/2017/2016). We know that many registered group leaders have led

several different groups, and we are now seeing multiplication beyond the second generation. We continue

to seek ways of encouraging and supporting new groups to start and to help them multiply.

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Aciape Ilinistnes Linuted Company Registration 949989

We are encouraged to continue hear stories from UIC and overseas of individuals coming to faith through

Together.

F undraisingIn summer 2019, nineteen cyclists cycled from Canterbury to York and eleven from York to Newcastle. In

total some E38k was raised for developing and promoting Toucan.

5. Community Team

The Community team have continued to pioneer holistic approaches to whole-life disciple-making with

the aim of envisioning every Christian to see ministry as a 24/7 lifestyle.

In many ways in 2019 it felt like the team were treading water. Progress in building relationships continued

to be made, but this was not matched by measurable progress in seeing people become Christians, in the

involvement of others in what we are doing, or in the use of our resources. However, this serves to underline

the long-term nature of what we are seeking to achieve. There are significant attitudinal and cultural

changes needed for the Church to recognise the need for, adopt and develop the practices required for

missional lifestyle. Ministry of this kind requires patience and perseverance.

The team persisted in developing approaches for engaging with the people in their place (wherever they

work, study and live). These included:

~ the use of a WhatsApp group that has drawn over 120 people into conversation and encouraged

a mutual concern for each other in the community

~ MacMillan coffee mornings that attracted around 20 locals to come together in a common cause

~ Street Watch groups involving 15 people spending 2 hours a month in pairs patrolling the local

area and getting to know each other and the community better

~ English classes for 15-20 non-English speakers at three different levels, which each included the

re-telling of the Christmas story in the lead up to Christmas.

~ Hospitality with neighbours and serving them in various ways that have led to several

conversations about faith

These demonstrate how different approaches can be chosen that respond to local needs and build on what

is already available in the community, rather than trying to impose strategies that have come from very

different circumstances. What is key is the potential in each approach for relationship-building, for 'doing

life together' with people, and for personal conversations about life and faith.

Following the trialling of the study booklet, Good Neighbouring, and the feedback given by church leaders

and homegroups involved in the trial, the material has been significantly revised. That revision was still on-

going by the end of 2019. The focus has shifted onto how to journey with non-believers with a view to

making disciples wherever they are. A new title will reflect that shift and the format of the material will look

more like The Biscuit TraiL

Work was carried out on widening the scope of the Shanng Your Story training course, which encourages

and equips Christians to share the stones of what God has done in their lives with those around them.

However, other priorities and time commitments in the team precluded further trialling of the material.

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Agape i'iinistries Liniiteci Cornpaily Registiatioii rJ49999

6. Living 8, Telling

In 2019, the evangelism training resource Living Bc Telling was relaunched at the Christian Resources

Exhibition in October. This new reimagining of core materials (developed by Dr Bill Bnght, the founder of

our global movement) is already helping Christians across the UK to be more confident in sharing their

faith in Jesus naturally and helpfully, as a way of life. We are excited that through the generosity of others,

this resource is available to the church completely free, and are looking forward to seeing what God does

through it in the UK and beyond.

2.3.2 At work

In Spring 2019, our workplace ministry helped to screen the London premiere of the film Unforgivable, an

award-winning short documentary about the forgiveness and reconciliation that emerged from the

genocide in Rwanda, produced by Agape Italia. The event helped to spark conversation about the cost of

forgiveness within both our student and workplace ministnes.

In Summer 2019, the two staff members who had been working on relaunching our workplace ministry

moved back to the USA to work with our sister organisation there. The gap they have left remains as yet

unfilled.

Throughout 2019, we continued to build stronger bonds with the Crescendo network of musicians, which

started through Agape Europe in Switzerland in 19BS. There has been a growing network of music

professionals affiliated with Crescendo in the UK, and it has been a delight to have the m increasingly

involved in our conferences and staff life.

The Biscuit Trail continues to be a successful tool and is now further supported with follow-up materials

on its website.

2.3.3 At university

Our passion is that every student in the UK should have the opportunity, not Just to hear the gospel, but

to learn to follow Jesus for the rest of their lives. We want to take the initiative in explaining the gospel in

a clear and understandable way to the 99% of students who have never been given the opportunity to

hear or respond.

In September 2009, we launched student movements at campuses across the UK. These are networks of

passionate students committed to the spintual, social and intellectual renewal of the university through

Jesus.

Highlights from 2019 include;

~ Fireseeds —we had 4S students attend Fireseeds this year, up from last year's 30 students. YWAM

hosted the event at their base in Harpenden. It was a great time of community-building, shanngstories from across the country, and getting to hear about how to make evangelism a normal partof life.

~ Recruitment and retention —We had eight interns work with us this year, and we sent two interns

abroad. Recruitment and retention were highlighted at one of our leadership meetings as beingan issue. To address that, our teams have done a few new things across the country:

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Agape Ministries Limiteci Company Registration 949989

o We have been building community amongst our eight interns across the country —we' ve

organised a monthly Skype for them, got them to go on a launch week to Northampton,

and got them to input into Agape's growth.

o We had staff and students attend various Christian conferences and Missions Fairs last

year to explore which ones we should prioritise for recruitment (we are following on from

that with actions for this year).

o We have created a S week summer internship opportunity to provide a stepping stone for

people who may not want to start with committing a whole year.

o Our London team ran a week-long "Ministry experience" where two students got to jointhem on campus for a week to get a sense for what working for Agape could look like.

~ Ministry curriculum - We deeded to create a new resource in order to help our ministry expand tounreached campuses, particularly those without staff. Our new Student Leader Curriculum was

completed and let loose among our staff in the summer of 2019, and has been undergoing beta

testing across the UK.

2.3.4 And abroad

Agape is committed to working in partnership with the global body of Christ, being both senders and

recewers of people in order to fulfil the Great Commission. We believe that sending is fundamental to

making Christ-centred disciples; we see time and again how students we send return newly enthused and

envisioned to share the Gospel on their home campuses here in the UK.

Currently, there are British staff serving long term in Denmark, Italy, the Middle East, Portugal, Russia, South

Africa, and the USA. We are also blessed in the UK to have staff sennng alongside us from Albania, Finland,

Germany, India, Iran, New Zealand, the Philippines, South Afnca, and the USA.

During 2019, short-term student projects went to Greece (Lesbos —in collaboration with Agape UK's

humanitarian aid partner, GAiN), Malta, and Russia (St Petersburg). Around 25 students and staff were

involved in these projects.

As a national ministry we are also taking the lead in helping Agape Europe establish cross-cultural training

for missionaries leaving their home countries to serve overseas. Last summer our staff directed and some

coached at the training for around 20 staff from across Europe starting international assignments in

2019/2020.

Overseas Giving and Aid

Over 2019, GAiN UK (Global Aid Network) has focused its work on responding to the needs of displaced

and cnsis-affected people. In partnership with staff across Agape UK and volunteers, GAiN sent two

volunteer teams to serve in the hotspot camps on Lesvos, Greece, bringing practical help and seeking to

restore hope. One of these projects was a speofic collaboration with the Agape UK Student team, run by

Student staff and with student volunteers from Oxford, London, Newcastle, and even Lithuania. GAiN UK

was able to mobilise schools, youth groups, churches, businesses, and volunteers to collect winter clothes

and hygiene items, along with tents, to send to families living as refugees in emergency shelters on Lesvos.

In partnership with the Dutch GAiN office and Med Aid International we were able to send E28,000 worth

of relief supplies to Lesvos in July 2019. In addition to this, f14,600 has been donated for the continuing

work of GAiN in Iraq, Syna and Lesvos.

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Agape I'Iinistiies Liniiieci Cofiip illy ReCJlst et(loll 949989

2.3.5 Central Team

The Operations, Communications, and Human Resources Teams (together referred to as the 'Central

Team') serve the workers in the above field ministnes. These teams provide the resources for our field

workers, including finance, communications, fundraising, IT, conferencing, and member care. The team

help nurture and train workers alongside the leadership in each area.

During 2019, the Central Team took on a number of major projects. These included transitioning to new

accounting & CRM software (Finance and IT teams), continuing to develop our data protection and

safeguarding practices and policies in line with GDPR (Operations and HR teams), and leading the

rebranding project for the charity (Communications team). This was carried out in addition to the regular

maintenance of systems and processes which allow our field teams to thrive and carry out their work, and

ongoing restructuring within the team itself.

Agape tlinistries Liniited Coinpaiiy Registration 949989

2.4 Plans

When this Annual Report was originally produced at the end of 2019 and the beginning of 2020 nobody

could have anticipated that a virulent virus known as COVID19 or Coronavirus would spread across the

world. Many Countries responded to the spread of this virus by shutting borders and enforcing a

"lockdown", thereby restricting all non-essential travel. By the end of March 2020 similar restrictions had

been put in place across the UK which, understandably, has had an impact on the plans each of our teams

had for 2020. At the time of wnting, many events have had to be cancelled, both those organised by Agape

UK and those where Agape UK had planned to have a presence (such as the Big Church Day Out festival

in May. )

Our teams are responding to this "new normal" by finding new ways of reaching out and connecting with

people through online media and our Student Team recently underwent a week of training in how to

evangelise using Social Media. Team meetings both on a local and national level are held virtually and all

of Agape UK's staff are homeworking.

Whilst an initial assessment of the impact of the virus can and will be included in the 2020 Annual Report,

the full impact on our ministry and the UK may not be felt for some time after,

It is exoting to note in these times that there has been an increase in people across the UK searching for

answers and meaning which has resulted in a quarter of adults in the UK watching or listening to a religious

service since the coronavirus lockdown began, and one in 20 have started praying during the crisis,

according to a new survey. The top English-language Bible on Google Play and App Store was installed

almost TWO MILLION TIMES, the highest amount ever recorded for March, according to Appfigures.

Similarly, one of the UK's largest online Christian bookstores, Eden, has seen physical Bible sales rise by

SS% in April, while Google searches for "prayer" and "Christianity" have SKYROCKETED.

We believe The Lord has been preparing Agape UK to be able to respond to this time effectively and that

our resources, equipping and enabling Christians across the UK to share their faith well will have an

important role in seeing people come to faith.

The plans contained within this section were written before the virus and lockdown in the UK. They will

likely have had to be changed and updated for this time of "lockdown" and beyond. We have decided that

as plans are rarely "certain" it remains a good indication of what our teams would have been doing, had

things not changed. The book of James, chapter 4: 13-1S says "Now listen, you who say, 'Today or

tomorrow we will go to this or that city, spend a year there, carry on business and make money. 'Why, you

do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little

while and then vanishes. Instead, you ought to say, 'If it is the Lord's will, we will live and do this or that. '

We at Agape UK continue to seek God's leading in all of our activities.

2.4. 1 At home

Our FamilyLife team will continue to support local families, couples and the activities of local churches,

particularly with regard to relationship issues, discipleship and outreach in 2020. They will continue to

priontise the development of the national FamilyLife Network, focused on cities.

Other plans include:

PeopleOur priority is to continue to invest in our expanding team. We have good processes and will spend more

time in training and developing newlyjoined staff in 2020.

17

Aclape Miiiistiies Liruitecl Coiiipany Reglstc ation 9a9989

Each member of the FamilyLife team is expected to minister to couples, building disciples. In addition, each

team member carries speafic organisational responsibilities.

NetworkWe will continue to grow the FamilyLife network through the annual Vision fk Eguipping event, ADT events

and launch of new Together groups after every event We will continue to work to establish regional teams.

EventsWe will continue to deliver events such as What is Lave, Actually? and A Day Together.

ToucanWe launched the fourth 'Money' module in 2019.We are now developing a new 'onboarding' function (the

Pulse), and the final 'Growing' module, both of which we plan to launch in Summer 2020. We have

approximately f71k of funds for these developments and for promoting Toucan.

Small Group Ministry

It is our goal to plant new Together couples' groups as a result of each event and support and encourage

multiplication of these. We are encouraged that Together is continuing to spread internationally.

7. Community Team

In 2020, the Community Life team faces the challenge of the wider dispersion of its team members, with

one couple in London moving to Sheffield. The geographical spread and lack of density in any one location

will make it harder to support each other. Discussions on how to manage this change have already started.

The team are praying and working towards doubling their capacity by finding like-minded people who will

adopt the vision and begin their own approaches to shanng kingdom life and faith with the people in their

place.

The Good Neighbouring study will be retested. In a broader strategy to make Agape resources and training

better known among the Chnstian community in the UK, there will be a significant staff presence at both

The Big Church Day Out and the Keswick Convention. Attention will also be focused on educating church

leaders how the resources integrate and help towards fulfilling the broader vision of making Jesus known

through word and deed.

8. Living 8, Telling

In 2020, we plan to publicise Liwng Bc Telling and make it even more widely available to churches and

community groups across the UK. We are excited that the resource has provided greater opportunities for

partnership with other organisations, and look forward to seeing how this develops, particularly after the

rebrand has gone public.

2.4.2 At work

In 2020, we will continue our efforts in recruiting staff and volunteers to reinwgorate our workplace

ministry. We will maintain and develop our current excellent resources, to make sure that they are the most

effective they can be. We will also seek to build upon our connections with the Crescendo network, so that

18

Aclapc Ministries Limited Cr&mpany RerJistration 949989

these volunteers are better supported in their work, and can be a greater part of what God is doing in the

UK to help people discover Jesus through music.

2.4.3 At university

In 2020, the student ministry team will be looking to adapt and edit all our websites, social media, resources

and materials to make sure we are in line with our new branding and messaging guidelines.

Our teams are also continuing their specific plans that flow out of our 3 national student ministry priorities

—creating strong sustainable staff teams, growing our visibility and profile, and using consistent materials

and methodology for ministry. For example, the Belfast team are building on their local partnerships

through attending Belfast Bible College's Missions Fair, the Newcastle team are blessing their campus

through doing Greek classes with students and faculty members, and the London team are planning events

in partnership with Westminster Chapel and Euston Church.

A specific priority with regards to growing visibility in this coming year is to engage with churches,

particularly in equipping church student groups using Living Bt Telling.

2.4.4 And abroadWe will continue to send workers internationally in response to new opportunities or areas of need.

At the start of 2020, we are anticipating a number of applications to send 9-12 month Short Term

International (STINT) interns to locations across the world.

There are three Agape UK global projects planned for the spring and summer of 2020 to Malta, Russia,

and a GAiN-sponsored projects to Lesvos in Greece. As we continue to trust the Lord for growth in our

movements, we will also look to diversify our projects in the coming years with opportunities in a new,

more unreached, location. We are also working on developing our strategic partnerships with churches,

which we hope will help us increase the number of projects we are sending.

We are also looking into developing an Agape UK Study Abroad programme with the aim of connecting

students who are going on overseas study placements —particularly language students —with existing local

ministry teams in the locations they are going to. We will offer support and coaching to these students

and provide them with an opportunity to serve and be involved in ministry whilst they

are studying overseas.

In 2020, GAiN UK will celebrate five years since its launch. We will hold a celebration event to gather all

those who have been involved to date, and envision people to be involved in the next season. We will

continue to develop practical ways to involve people in responding to humanitarian needs around the

world, including appeals for relief supplies, donations, and sending project teams. The team will be

reviewing and evaluating the pilot discipleship community, to learn how we will develop this in the future

to establish groups where people can live with humility and generosity in the face of global poverty.

Sending teams of staff and volunteers, along with emergency relief, to Greece throughout the year will be

a key focus. Our goal in 2020 is to increase our regular financial partners giving to the central funding of

the GAiN office to reach our funding need of f40,000 per year. As one of the eight offices in the global

network of GAiN, we will continue to build opportunities to increase our impact as we work together in

our country locations.

19

Agape Vlinistiies Lanated Col ii!iaiiy ft tglstl atloll 949909

2.4.5 Central Team

As we look ahead to 2020, we expect to see further change as our new branding goes public. This will have

widespread implications for the Central Team, with the launch of a new website, redesign of the Agape UK

headquarters, and running training for our field teams, with the aim of increasing Agape UK's public profile.

We also expect to use our new accounting software in more effective ways to support the national fund

development strategy. Our hope is that the combination of the strengthening of both profile and systems

will allow our field teams to be even more effective, and give the platform for many people across the UK

to discover Jesus together.

We have been given some great opportunities to be present at two key Christian conventions: Big Church

Day Out and Keswick. These will provide a great platform for raising the public profile of Agape UK and

will provide an opportunity to bless many Christians across the country.

We will also be recruiting for key roles within the Central Team, most notably for an Operations Director

and Communications Director.

Impact of COVID 19 Coronavirus

Agape UK is continuing to operate well during the Coro navirus outbreak. All our staff are working remotely,

and continuing their activities online. We have revised our plans for 2020, to enable us to continue to have

an impact as we connect with our contacts and supporters through social media, our website, emails and

other online activity.

20

DocuBign Envelope ID: 02E8D368-12BB-41CC-89C8-AC3F31CBB2AE

Agape I linistnes Limited Criliipafiy Rpglsti'atloii 949989

2.5 Financial Review

Agape's financial management aims are to:—

1. Employ staff who raise funds for Agape for the purposes of paying salaries, staff expenses for

personal ministry and contnbute to general funds.

Raise general funds to support the cost of Agape's operational expenses, including a high class

training and personal welfare programme.

3. Raise funds through speofic appeals to support Agape's outreach activities.

Raise funds to support evangelistic activities overseas which are managed by overseas Agape

organisations.

Agape's financial model relies on a 12.5% deduction on all funds raised in the UK by staff and specific

appeals. 9.5% is used to fund the operating costs of the ministry and 3% is tithed to be used for activities

of overseas Agape organisations. The amounts raised are affected by the number of staff employed who

raise their own funds.

The overall financial performance in 2019 is as follows:—

Funds raised by staff were f2.228m as compared to f2.186m in 2018, an increase of E42k.

All staff salaries including key management personnel are set according to pre-defined criteria. These are

laid out in detail in note 8. No staff received emoluments in excess of f60k during the year.

Staff funds have increased year on year by E45.7k to E628k (note 17 to the accounts). This demonstrates

stability of income and expenditure from a staff perspective during 2019. It shows staff are raising sufficient

funds to cover their expenditure during the year. The negative balances on a number of overseas staff

accounts, representing monies due to Agape, have been moved into the current assets section of the

balance sheet.

In 2010 Agape sold a leasehold property in London. The plan to purchase a property in the centre of

Birmingham as the National Training and Resource Centre was achieved in November 2012. The relocation

took place in April 2013 and E208k was spent during the year on bringing the property into use. E185k of

this was capitalized under FRS15. During 2014 Agape spent f10k on roofing repairs and made a final

payment of f5k to the decorating company. These costs were also capitalized. No additional monies have

been spent on the building since then and it continues to be a wonderful resource for the ministry.

The building (and assoaated costs) continue to be depreciated at a rate of 2% per annum,

Designated funds (excluding staff and funds for property purchase) are at E346k (2018:E252k), with various

ministries activities having taken place in the year.

Grants to overseas Campus Crusade actwities totalled f318k (2018: E12k). This is funded directly by

donations given for these purposes. In addition E75k was raised from the 3% tithe (f71k in 2018). This is

used to support and grow Agape ministries across Europe.

Bank balances at December 2019 were E944k as compared to E828.5k at December 2018. This is a further

indication of Agape's continued strong financial performance dunng the year. Dunng 2018 E600k was

invested in treasury deposits with Lloyds bank as 4 x E150k maturing in 3 month intervals. This was out of

a desire to generate better returns for the cash we are holding. The interest from these deposits has

21

DocuSign Envelope ID 02E50368-1268-41CC-8968-AC3F31CBB2AE

Ac)ape I"Iinistnes Li;13itecl Cofllp&1ii'/ Re() istf a(i oi) 9499(1 )

contributed towards unrestricted general funds in 2019 and will continue to do so in the future. The interest

received has been re-invested to generate additional interest.

2.5.1 The Trustees' Reserve Policy

The Trustees are aware that the main finanoal issues in 2020 are:—

1. The continued operation of our new national headquarters.

The funding of central running costs for which 65% is budgeted to be funded through the

9.5% levy on funds raised by staff. This is budgeted as a broadly breakeven situation.

3. The progress of a current initiative to develop new sources of funding for outreach actiwties.

The existing reserves policy is to have 6 months reserves to cover operating costs which are not directly

funded from income. The budgeted costs for 2019 are around f360k and this gives a target of f1BOk.

At December 2019 reserves making up the target were f201k for general funds.

Based on the budget projections for 2020 the Trustees are content that the financial target ansing from

the Reserves Policy will be met at all times dunng 2020. However the Trustees are aware that in the present

general economic situation there is a risk that existing regular donors may reduce or cease their giving and

that expectations of funds from new sources/donors may not be achieved as budgeted. Should this happen

to a significant extent then the headroom existing at December 2019 between actual and target reserves

would be eroded.

In the longer term, Agape intends to increase the focus on encouraging, supporting and equipping staff

to reach 100% of their support goal. This will lead to an increase in donation income into the ministry and

an increase in General funds as a result. The Executive leadership team are also increasing the focus on

exploring other avenues of fund development.

2.5.2 Auditors

Mazars LLP served as auditors throughout the period. A resolution to re-appoint Mazars LLP auditors will

be proposed at the forthcoming annual general meeting.

The Trustees' report has been prepared in accordance with the provisions applicable to companies entitled

to the small companies exemption provided by section 408 and section 414B (b) of the Companies Act

2006.

by t 814~: 29'" April 2020

By:632699993999464

Gary Palmer (Chair)

167 Newhall Street

Birmingham

B3 1SW

22

Agape I'linistries Limited Company Registratiori 949989

2.6 Independent auditor's report to the members of

Agape Ministries Limited

Opinion

We have audited the financial statements of Agape Ministnes Limited (the 'company') for the year ended

31 December 2019 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement

of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United

Kingdom Accounting Standards, including FRS 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:

gwe a true and fair view of the state of the charity's affairs as at 31 December 2019 and of its

income and expenditure for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further descnbed 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.

Emphasis of matter —Impact of the outbreak of COVID-19 on the financial statements

In forming our opinion on the company financial statements, which is not modified, we draw your attention

to the trustees' view on the impact of COVID-19 as disclosed on page 20, and the consideration in the

going concern basis of preparation on page 30 and non- adjusting post balance sheet events on page 49.

Since the balance sheet date there has been a global pandemic from the outbreak of COVID-19. The

potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to

normal patterns of business activity across the world, including the UK.

The full impact following the recent emergence of COVID-19 is still unknown. It is therefore not currently

possible to evaluate all the potential implications to the company's activity, beneficiaries, suppliers and the

wi der econ o my.

23

Agape ihlinistnes Liniitecl Company Registration 9499fl9

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (Ulc) require us

to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the fmanoal

statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties

that may cast significant doubt about the charity's ability to continue to adopt the going concern

basis of accounting for a period of at least twelve months from the date when the financial

statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other mformation compnses the information

included in the Report of the Trustees, other than the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

othenvise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we

identify such material inconsistencies or apparent material misstatements, we are required to determine

whether there is a material misstatement in the financial statements or a material misstatement of the

other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

~ the information given in the Trustees' Report for the financial year for which the financial

statements are prepared is consistent with the financial statements; and~ the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of

the audit, we have not identified material misstatements in the Trustees' Report.

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

24

Agape Ilinistries Limited Cot lipatly Registration 949989

~ adequate and proper accounting records have not been kept, or returns adequate for our audit

have not been received from branches not visited by us; or~ the financial statements are not in agreement with the accounting records and returns; or~ certain disclosures of trustees' remuneration specific by law are not made; or~ we have not received all the information and explanations we require for our audit.~ the trustees were not entitled to take advantage of the small companies' exemption in preparing

the Trustees' Report and from the requirement to prepare a Strategic Report.

Responsibilities of Trustees

As explained more fully in the trustees' responsibilities statement set out on page 7, the trustees (who are

also the directors of the charitable company for the purposes 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 charity or to cease

operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor's report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment

(Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made

under those Acts.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at wwwfrcor uk auditorsres onsibilities. This description forms

part of our auditor's report.

Use of the audit report

This report is made solely to the company's members as a body in accordance with Chapter 3 of Part 16

of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in an auditor's report and for no other purpose.

25

Agape iviinistnes Limited Company Registration 949989

To the fullestextent permitted by law, we do notacceptor assume responsibility to anyone other than the

company and the company's members as a body for our audit work, for this report, or for the opinions we

have formed.

lan Holder (Senior Statutory Auditor)

for and on behalf of Mazars LLP Statutory Auditor

4S Church Street

Birmingham B3 2RT

O' XrzJJ- ZOZc2

26

DccuSign Envelope ID: 02E5D366-1288-41CC-89C8-AC3F310882AE

Aciape Nnnistries Lnmiter( Coinpany Registration 949989

3 Financial Review 20193.1 Statement of Financial Activities for 12 months ended 31 December

2019 (Incorporating an income and expenditure account)

FurtherDetails

UnrestrictedFunds

RestrictedFunds

Total Unrestricted2019 Funds

Restricted TotalFunds 2018

6 6 6 6 6Income and endowmentsfrom:Donations and Legacies

Charitable Activities

Other Trading Activities

Investments

3,085,690

40,760

17,463

4,792

15,160

40,760

17,463

4,792

26,308

15,506

2,048

3,100,850 2, 738,283 25,871 2,764, 1 54

26,308

15,506

2,048

Total Incoming Resources 2 3,148,705 15,160 3,163,865 2,782, 145 25,871 2,808,016

Expenditure on:

Raising funds

Charitable activities

Other

184,556

2,850,801

38, 134

14,136

6,718

184,556 113,723

44,852 11,551

2,864.937 2,616,640

13,971

12,436

6,449

127,694

2,629,076

18,000

Total3,073,501 20,854 3,094,355 2,741,914 32,856 2,774,770

Net gains/(losses) on

investments 125,055 5,055 (2,943) (2,943)

Net income/(expenditure) 80,259 (5,694) 74, 565 37,288 (6,985) 30,303

Transfers between funds 17 4,391 (4,391)

Net movement in funds 80,259 (5,694) 74, 565 41,679 (11,376) 30,303

Fund balances brought forward

at beginning of year

1,350, 113 342, 511 1,692,624 1,308,434 353,887 1,662,321

Fund balances carried forwardat end of year

1,430,372 336,817 1,767,189 1,350,113 342,511 1,692,624

All of the above results are derived from continuing activities.

All recognised gains or losses are included in the Statement ofFinancial Activities.

The notes on pages 27 to 44 form part of these financial statements

The surplus for Companies Act Purposes was f75,203 (2018 f40,231)

27

DocuSign Envelope ID 02E5D388-12B8-41CC-8908-AC3F31CBB2AE

Ac)ape I4nustnes Llmlled Comp, 1ny Itegistrabon 949909

3.2 Balance Sheet

Notes December

2019December

2018E

FIXED ASSETS

Intangible assets

Tangible assets

1011

95,545

640,21068,020

651,695

735,755 719,715

CURRENT ASSETS

Investments

Stocks

Debtors

Cash at bank and in hand

12

13

14

64,636

8,374

109,273

944,103

59,582

14,174

189,898

828,502

1,126,386 1,092, 156

CREDITORS —AMOUNTS FALLING DUE

WITHIN ONE YEAR

NET CURRENT ASSETS

15 (94,952)

1,031,434

(119,247)

972,909

NET ASSETS 1,767,189 1,692,624

Unrestricted funds

Restricted funds

1819

1,430,372

336,8171,350,113

342, 511

1,767,189 1,692,624

Approved and authorised forissue by the Board on: 29'" A ril 2020

G Palmer

lan Johnson

(signature)

(name) Members of the Council

of(signature) management

(name)

28

Agape Ministries Limited Company Registration 949989

3.3 Statement of Cash Flows

2019 funds 2018 funds Notef f

Cash flows from operating activities: 199,035 37,244 20

Cash flows from investing activities:Investments

Purchase of property, plant and equipment4,792

(88,227)2,048

(29,884)

Change in cash and cash equivalents in thereporting period 115,600 9,408

Cash and cash equivalents at the beginning ofthe reporting period 828, 500 819,092 21

Change in cash and cash equivalents due toexchange rate movements

Cash and cash equivalents at the end of thereporting period 944, 100 828, 500 21

29

Agape I'Iinistries Liniited Cr&ltii&ally Rr. gistxa('ion 909«)Qr)

3.4 Notes to financial statements

Accounting Policies

Basis of a««ounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities:

Statement of Recommended Practice applicable to charities preparing their accounts in accordance with

the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) —(Charities SORP

(FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the

Companies Act 2006.

Agape Ministnes meets the definition of a public benefit entity under FRS102. Assets and liabilities are

initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting

policy note(s).

Preparation of the ac«ounts on a going con«em basis

The company reported a cash inflow of F115,600 for the year.

The Trustees have prepared detailed financial performance projections for the ensuing year. Those

pro)ections are reviewed and revised at the end of each reporting period within the company's financial

year. On the basis of those projections the Trustees have satisfied themselves, as far as they are reasonably

able and unforeseen events aside, that the company is in a position whereby it may adopt a going concern

basis of accounting in preparing the annual financial statements.

In March 2020 the UK was plunged into a national crisis with the onset of the COVID-19 coronavirus. No

organisation could have anticipated the speed and nature of the changes which took place in a very short

space of time and Agape is no exception.

We are, however, in a very strong position financially, with a good level of unrestricted reserves and good

financial controls in place. Our self-funding model means those who give to support the work of Agape

have a very personal connection with the ministry. They understand that their giving doesn't just go into

some "central pot", but actually contributes directly to staff salaries. This means that in uncertain times,

such as we now find ourselves in, their giving to Agape is usually the last to be stopped.

This model also means there is a direct link between the expenditure of Agape UK and the money raised,

since staff salaries are paid (subject to National Living Wage Legislation) according to the funds raised.

We are exploring all government support options available to the ministry at this time and are re-assessing

all our central costs in light of the impact of this crisis.

The trustees believe we are well placed, from a financial and organisational perspective to not be

detrimentally impacted by this crisis.

30

Ac)ape Fhnistries Linutecl Company Registration r949989

Company status

The company is a company limited by guarantee. The Directors of the company are the Trustees named

in the "Reference and Administrat ve Details". In the event of the company being wound up, the liabilities

in respect of the guarantee is limited to f1 per member of the company.

Use of estimates and judgements

When preparing the finanaal statements, management makes a number of judgements, estimates and

assumptions about the recognition and measurement of assets, liabilities, income and expenses. The

estimate that has the most significant effect relates to fixed assets.

Determining residual values and useful economic lives of fixed assets

The Company depreciates tangible fixed assets over their estimated useful lives. The estimation of the

useful lives of assets is based on historic performance as well as expectations about future use and

therefore requires estimates and assumptions to be applied by management. The actual lives of these

assets can vary depending on a vanety of factors, including the property market and maintenance

pro g ra mme.

Incoming resources

The income and result for the year are attributable to the principal activities as set out in the report of the

Council of Management. The majority of the income is derived from the UK; however, some is recewed

via Agape Europe and via Campus Crusade for Christ International and is mainly for support of staff.

Donations include all amounts receivable by the company in respect of donations to support field workers

and for other purposes.

Income includes the amounts invoiced, excluding recoverable value added tax, in respect of the sale of

literature and the sale and hire of videos, tapes and films. It also includes conference income, project

income, and donations.

Resources expended

In the presentation of these accounts, expenditure against each activity includes staff expenses of self-

funding staff and an allocation of support costs, see note 3 below.

The cost of generating funds is the direct costs (Including salaries) of Agape communication such as our

half yearly "Move Magazine" and an overhead charge on the gross income raised. No external agencies

were contracted to raise funds on behalf of Agape and all communications were sent to individuals who

had expressed consent to receive them. All giving was on a voluntary basis.

The basis for allocation of support costs to activities has been pro rata to the total income and expenses

of each activity, excepting those which are restricted funds, where overseas appeals are charged a fixed

percentage on gross income (see paragraph above).

The policy on grants to activities of overseas Agape organisations is not to enter into commitments toprovide funding which has not yet been raised, by more than E10k for any one commitment.

Governance costs

These include the cost of professional advice, audit costs, COM meeting costs, staff costs to produce the

annual accounts and reports to COM, together with an allocation support costs.

Fixed Assets

Items of a capital nature, purchased from Agape General Funds and costing over f500 are capitalised as

fixed assets at cost. Depreciation is provided at rates calculated to write off the cost, less estimated residual

value, of each asset on a straight-line basis over its expected useful life as follows:

31

Ac&ape Wlinisrries Linuferl Co!npany Registiatioii 909989

Freehold land

Freehold property

Computer equipment

Office equipment

Motor vehicle

Intangible Fixed Assets

0%

2%

per annum

per annum

33 1/3% per annum

33 1/3% per annum

33 1/3% per annum

Intangible assets are assets that are identifiable and possess all of the following characteristics: lack of

physical substance, nonfinancial nature (not in monetary form like cash or investment secunties) and initial

useful life extending beyond a single reporting period. Intangible assets are amortised over three years.

50% of each year's development costs are amortised within that year.

Operating leases

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

Finance leases

Assets held under finance leases and the related lease obligations are included at the fair value of the

leased assets at the inception of the lease. Depreciation on leased assets is calculated to write off this

amount on a straight line basis over the shorter of the lease term and the useful life of the asset. Rentals

payable are apportioned between the finance charge and a reduction of the outstanding obligation for

future amounts payable so that the charge for each period is a constant percentage of the remaining

balance of the capital sum outstanding.

Stocks and work in progressStocks and work in progress are stated at lower of cost and net realisable value.

Tax refunds on gift aid income

Credit is taken in the Statement of Financial Activities for tax refunds receivable in the current accounting

period.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments. Basic financial instruments are initially recognised at transaction value and subsequently

measured at their settlement value with the exception of bank loans which would be subsequently

measured at amortised cost using the effective interest method.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value

and subsequently measured at their fair value as at the balance sheet date using the closing quoted market

price. The statement of financial activities includes the net gains and losses arising on revaluation and

disposals throughout the year.

Grants

Grants during 2019 were made solely to overseas Agape/Campus Crusade for Christ activities.

3% of all donations received by Agape UK in the year are "tithed" by way of a grant during the year

following that in which they were received. These "tithes" are used to support Agape/Campus operations

in countries where the need is greatest and where raising funds locally is exceptionally challenging.

32

Agape Blinistries Limitecl Conipany Registration 949909

Any donations received in the UK for Agape/Campus Crusade workers based overseas are passed on, by

way of an in-year grant, to the ministry in that country for use by the designated staff member.

Designated funds

The nature and purpose of such funds are as follows;

Staff: Monies received that are applied to support self-funded workers expenses

Student Ministry: Donations designated for activities intended to further the Christian discipleship of

students and other young people.

Non-Campus Ministry: Donations designated for activities intended to further the Christian discipleship in

the UK, including working with churches, within the workplace, and Muslims.

International Ministry: Donations designated for teams working to further the Christian discipleship in

countries other than the UK.

International Mission Projects: Donations designated for short term projects (less than a month) to take

students to other parts of the world to further Christian discipleship.

Restricted funds

These include proceeds from the sale of a leasehold property and specific appeals for international

development projects which are managed by overseas sister Agape organisations where the balance

represents funds not yet utilised.

33

Ac)el)e!':Im!stoes i!m!teel CO!)1'l)all)r Regtstl Btlot! 040909)

Incoming Resources

2019 2018

UK 2,326,065 2, 139,888

Rest of the World 837,800 668,128

Total 3,163,865 2,808,016

34

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AOidiae Fillils'l l s Llfiuted COIII(iiui7 ROCJIstI at IOII 949989

Expenditure on Charitable Activities

Staffsalaries &expenses

Otherdirectcosts

Allocation ofsUpport costs

Total 2019 Total 2019(Unrestricted) (Restricted)

Student Life 598,837 23,124 164,255 786,216

Family Life

Work Life

444, 739

133,034

89,147

22,210

143,428

44,720

677,314

199,964

Global Life 476,194 38,522 256,277 757,483 13,510

International Mission Projects 18,312 3,185 21,497

Sales activity 10,742 4,870 15,612

Grants to overseas activities 392,716 392,716

Overseas appeals (restricted) 626 626

Grants to local activities

TOTAL 1,652,804 595,399 616,735 2,850,801 14,136

36

Agape I"llilistiles Llnute&I Company Registration 949989

Net Incoming Resources for the Year

The surplus is stated after charging:

20196

20188

Staff costs (note 9) 1,891,355 1,972,573

Depreciation of intangible and tangible fixed assets 55,565 72,185

Hire of equipment - operation leases 5,376 4,289

Rent and Rates 7,571 7,839

Auditors remuneration - for audit 9,000 8,500

Council of Management

No council members received any remuneration from the company in the year to 31st December 2019

No council member received any reimbursement for expenditure incurred for their responsibilities with

the charity.

37

Agape I'linistries Liniiteci Coimpaiiv Registratioit 94r)c989

Staff CostsSalaries from

designated fundsSalaries fromgeneral funds

Total

20196

2018f

2019 20186

2019f.

2018

Salaries1,564,611 1,669,773 113,645 102,733 1,678,256 1,772, 506

Social Security Costs

Employer Pension

Contributions

153,349 159 134

48,034 31,013

8,792 8, 140 162,141 167 274

2,924 1,779 50,958 32,792

1,765,994 1,859,919 125,361 112,653 1,891,355 1,972,573

SUPPORTED AGAPE

WORKERS

2019Number

2018FTE Number

Management

Administration

Field

Overseas

41132

13

4.0 5

85 1129.4 3411.4 16

60 53.3 66

SALARIED FROM GENERAL

FUNDS

Administration 8 6.4 7

Foreign workers in UK

68

24

59.7 73

11.4 27

TOTAL WORKERS 92 71.1 100

No termination payments were made during the course of the year. No employee received emoluments in excess ofF60k in any 12 months during this time. Agape's 'Key Management Personnel' are comprised of the UK Executive

Leadership Team (4 members) and 1 UK Personnel who serves in a European Leadership Role. Total salaries included

in the financial reports as paid to Key Management Personnel during 2019 equal 6123,877 compared to f141,297during 2018.The reduction is a result of Agape's Operations l3irector leaving and not being replaced.

38

Agape I linistnes Liriiitecl Conipany Registration 949989

Salary Level

The following principles are observed in setting the salary scale of all staff including key management

personnel:

Salary level is based on the deliberate choice of lifestyle that best enhances the ministry's goals. This will

normally entail sacnfice from what staff would otherwise earn.

~ Salary level should be adequate so that our staff members can minister without constant distractions

due to lack of money.

~ Salary should take into account how staff members' lifestyle should appear to the people to whom they

minister. A person's lifestyle should not interfere with his or her ministry. Certain variations may be needed

within the salary scale depending on where staff members are required to live, to whom they are required

to minister, etc.

~ Salary should take into account how the lifestyle of staff members will be viewed by the local Christian

community and other people. Our staff members' lifestyle should not cause their Christian brothers to

stumble.

There is not to be any variation of salary due to position within the organisation.

Supported staff of Agape in the United Kingdom are paid a monthly salary. They can fix their own salary

level between set limits and subject to their team leaders' approval. The higher limit or "cap" is set to reflect

to some extent each person's needs, taking into account where they live, age, marital status and number

and ages of children. The lower limit is half of the cap but only where this is greater than the National

Living Wage. The salary taken by staff members will cover all their personal expenses, in the normal way,

such as accommodation, water rates, Council Tax, children's education and car expenses.

Staff are encouraged not to cover their normal reimbursable ministry expenses through taking higher

salary as this is taxable income and increases the amount of support required.

The salary scale is reviewed annually in the light of changes in the cost of living, and is adjusted by the

prevailing RPI (Retail Pnce Index). A new scale takes effect from 1st September of each year.

Taxation

The company is a registered charity (number 258421) and was not liable to corporation tax in the year to

31 December 2019 or in 2018.

39

AcJap 'I sfllstf les Llnlltecl Coinpany Registration 949989

lo. Intangible Fixed Assets

Toucan Webslte TotalApp

COST

At 1st January 2019Additions

Disposals

139,008

55,371139,008

27,71S 83,089

At 31st December 2019 194,379 27,718 222, 097

ACCUMULATED DEPRECIATION

At 1stJanuary 2019Charge for the year

Disposals

70,988

55,56570,98855,565

At 31st December 2019 126,553 126,553

NET BOOK VALUES

At 31st December 2019 67,826 27,718 95,544

At 31st December 2018 68,020 68,020

Depreciation rates 33.33% 33.33%

40

Agape fhnistnes Dmiteci Company Registration 949989

Tangible Fixed AssetsFreehold Freehold Fixtures Total

Land Property fittings &equipment

COST

At 1st January 2019Additions

Disposals

125,000 588,220 146,444 859,664

5,139 5,139

At 31st December 2018 125,000 588,220 151,583 864,803

ACCUMULATED DEPRECIATION

At 1st January 2019Charge for the year

Disposals

70,809

11,764

137,160

4,859

207,96916,623

At 31st December 2019 82,573 142,019 224, 592

NET BOOK VALUES

At 31st December 2019 125,000 505,647 9,564 640,211

At 31st December 2018 125,000 517,410 9,285 651,695

Depreciation rates 0.00/e 2.00/e 33.33/o

Of the total above, assets equivalent to 60 were held under a finance lease

41

Agape Ylltslslnes Litsni erl Con'Ipany Registi ation 949989

Current Asset Investments

2019

Market value at 31"December 2018 59,582

Gains on disposal

Realised loss

Unrealised gain 5,055

Net gains/(Losses) for year 5,055

Market value at 31st December 2019 64,636

These listed investments are being managed by an investment management company and at the end of

2019 no decision had been taken regarding the sale of these investments.

13. Stock

2019 2018

Goods for resale 8,374 14,174

42

Agape I finistpes Limiterl Cianipaiiy Registration 94998cf

14. Debtors

DUE WITHIN ONE YEAR

20196

20186

Trade debtors

Tax due as Gift Aid

Other Debtors

Other Campus Crusade Debtors

Prepayments

Accrued income

VAT

2,476

24,698

18,767

39,981

22,863

0

488

21,621

13,063

13,988

5,404

17,255

118,5680

TOTAL DEBTORS 109,273 189,898

15. Creditors

DUE WITHIN ONE YEAR

20196

2018E

Trade creditors

Other taxation and Social Security costs

Pensions

Accruals

Deferred income

Other Campus Crusade Creditors

Other Current Liabilities

22,33338,248

10,864

11,606

7,226

4,035

640

11,975

50,1800

9,828

7

47,257

0

TOTAL CREDITORS 94,952 119,247

16. Contingent Liabilities

There are none to report in 2019.

43

Ac&:&pe t'I!nistnes Linuteci Co&npany RecJis', rahon 9ri9989

17 Analysis of Funds

Unrestricted funds

General Designatedfunds funds

f f.

Restrictedfunds

6Total

f

Balances at 1"January 2019

Surplus for the year

230,934

[72,490]

1,119,179

152,749

342,511

[5,694)

1,692,624

74,565

Transfers

Balances at 31"December 2019

42, 501

200,945

42,501

1,229,427 336,817 1,767,189

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Agepe Mmistnes Lmsitecl Company Registration 949989

19. Restricted Funds

PropertyFund

Funds raised forinternationaldevelopment

projects

Total

Balance at 1st January 2019 330,843 11,667 342,510

Net Incoming resources (6,718) 1,024 (5,694)

Transfers

Balance at 31st December 2019 324, 125 12,691 336,816

47

Anape I'iinistnes Lani(eel COI'llpail/ RE'CJlstlat'loll 9499 ri

20. Reconciliation of net income/(expenditure) to net

cash flow from operating activities

Net income/(expenditure) for the reporting period

(as per the statement of financial activities)Adjustments for:interest Receivable

Depreciation charges(Gains)/losses on investments

(increase)/decrease in stocks(increase)/decrease in debtorsincrease/(decrease) in creditors

2019E

74,565

(4,792)72, 187(5,055)

5,80080,625

(24,295)

2018E

30,303

(2,048)72,1852,943

(2,661)(80,284)16,806

Net cash provided by (used in) operatingactivities

199,035 37,244

Analysis of cash and cash equivalents

Cash in hand

Notice deposits (less than 3 months)Notice deposits (greater than 3 months)

2019E

119338,607605,374

2018E

84227,830600,586

Total cash and cash equivalents 944,100 828,500

22. Other Financial Commitments

Land Bt Buildings

2019 2018E E

Other

2019 2018E E

Amounts payable on leases which expire:

Within one year

Within two to five years

3,976

9,690

3,976

13,666

13,666 17,642

Aclape ivliiiistries Limii. eel Conipany Registration 949989

Analysis of Net Assets between funds

Unrestricted funds

Generalfunds

Designatedfunds

Restricted Totalfunds

Fund balances at 31 December 2019 arerepresented by:

Fixed assets

Other current assets

Balance at 31st December 2019

9,564

191,379402,065

827,364

200,943 1,229,429

324, 126

12,691

735,755

1,031,434

336,817 1,767, 189

24. Related Party Transactions

There were no related party transactions during 2019.

Events after the balance sheet date

There have been no events since the balance sheet date apart from the impact of the Covid-19 pandemic,

which is a non-adjusting event and is referred to in the Trustees' Report on page 20 and on page 30 within

the consideration of the going concern basis for the preparation of the financial statements.

49