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Annual Report and Financial Statements 2016/17 00

Helpingpeopleis whatdrives us!

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Annual Report and Financial Statements 2016/17

OVERVIEW

OVERVIEW

03 Introduction andContents

04 Statement from theBishop in Charge andthe Chair of Trustees

06 Legal and Administrative Information

07 Objectives

08 2016/17 in Numbers

09 Highlights from2016/17

TRUSTEES’ REPORT

12 Main Activities

23 Structure, Governance and Management

28 Financial Review

30 Plans for Future Periods

INDEPENDENT AUDITOR

32 IndependentAuditor’s Report tothe Trustees

FINANCIALSTATEMENTS

35 Group Statement ofFinancial Activities

36 Charity Statement ofFinancial Activities

37 Group and CharityBalance Sheets

38 Group Statement ofCash Flows

39 Charity Statement ofCash Flows

40 Principal AccountingPolicies

43 Notes to the Financial Statements

OVERVIEWIntroduction and Contents

The Universal Church of the Kingdomof God (UCKG HelpCentre) is a Pentecostal Christian church and charity that has been established in theUnited Kingdom since 1995. Its primarypurpose is to advance the Christianfaith and beyond that to implementgeneral charitable purposes.

This document is more extensive thanprevious annual reports and financialstatements as it sets out to provide anoverview of the charity’s work in theUK, to demonstrate something of thegood that it does, its approach to thefaith it supports and thereby to put the

financial statements into context.

Anyone wishing to learn more aboutthe UCKG HelpCentre’s work shouldcontact the Press Department, whileany queries concerning the financialcontent should be addressed to the Accounts Department.

Press Officer020 7686 [email protected]

Accounts Department - Audit020 7686 6006 ext [email protected]

Our 2016/17 financial year saw newand exciting achievements as we continued our work with an excellentand dedicated staff team at the UCKGHelpCentre. We all continue to be verygrateful to God and faithful membersof the church.

Our vision of helping people to makenew beginnings, and enabling them todevelop and integrate their faith intoevery aspect of their lives has been embraced with passion, zeal and commitment by our staff and volunteers. We are very thankful for alltheir dedication and support.

The year started with an impressive display of God’s power at our “GetClean” addiction cleansing therapyevent and the launch of our “Campaignof Justice – business meetings”.

This year we have been investing continuously in both full time operating churches and special works,which are just open for several days ineach week, across the UK. We are constantly seeking properties to buy orrent in order to spread into new areaswhere there is a demand for our services, and also give considerablecare and attention to maintaining ourexisting full time church buildings to ahigh standard, as described later in thisreport.

It is important to us to be constantlymaximising the donations received byapplying them to the work we do in

helping our church members to receivethe spiritual and practical help and support they need to turn their livesaround. One example of this was thisyear’s launch of the new IndependenceProject to encourage and developwould-be entrepreneurs to take thenecessary steps to become financiallyindependent and successful. Enthusiastic participants includedmany current and aspiring businessowners.

We also work closely with the localcommunities served by our HelpCentres. This year the work of ourCommunity Outreach team has beenenhanced as our volunteers have lent ahand to support collaboration betweenour community groups and other charities and the public. The UCKGgroups that have participated includethe Victory Youth Group, Rescue of Dignity, which supports prison inmates,the Patient Care Group, Caleb, whichcares for older people, RAHAB for victims of domestic abuse, and HappyParenting.

The youth group’s vision is to helpyoung people find God and reach theirpotential in every aspect of their lives.In 2016/17, as in other years, thegroup’s main events were designed tocreate awareness around the complexities and issues that youngpeople face and encourage them tomake wise life choices. However theyouths also teamed up with the PatientCare Group to highlight the challenges

OVERVIEWStatement from the Bishop in Charge and theChair of Trustees


facing those who suffer with sickle celldisease.

At the Rainbow Theatre, our UK headquarters, we had the privilege ofhosting the UCKG’s first Jobs Fair on 8August 2016, attracting some 200 jobseekers. The fair was organised bythe Community Outreach team.

Our volunteers’ participation in charityfootball events, 5K and 10K runs andTough Mudder (obstacle races cummud runs for fundraising purposes)during the year was greatly appreciated.

Finally, we are pleased to report thatour work in 2016/17 has benefited andchanged many lives, and the different

things we do to initiate such changeare reflected throughout this document. We are both very honouredto have been able to take on the leadership of this inspiring organisationin 2016 and excited about taking it forward into the next year.

The Board of Trustees is pleased to submit its report and financial statements for the UCKG HelpCentre(the charity) for the year ended 28 February 2017. The financial statementsare prepared in order to give a true andfair view of the state of affairs of thecharity and have been prepared in accordance with the requirements ofthe Charities SORP (FRS 102).


Álvaro Alves de Lima JuniorBishop in Charge

18 December 2017

Audrey Tung de MedeirosChair of Trustees

18 December 2017

CHARITY NAMEUCKG HelpCentre

CHARITY REGISTRATION NUMBER1043985

REGISTERED OFFICE & HQRainbow Theatre232-238 Seven Sisters RoadFinsbury Park, London N4 3NX

TRUSTEESTiago de Jesus Silva Marques(Chair up to 03 May 2017, remains atrustee)

Helena Machado Marques(Secretary, resigned 03 May 2017)

Rui da Cunha Silva(Treasurer)

Thelma Lynn Andrade Silva (Resigned 03 May 2017)

Guilherme Eduardo Higuchi Munhoz

Audrey Tung de Medeiros(Appointed Chair 03 May 2017)

Paulo Alexandre Duarte Monteiro (Appointed Secretary 03 May 2017)

BISHOP IN CHARGERandal Ferreira de Brito Junior(Up to 22 December 2016)

Álvaro Alves de Lima Junior(From 22 December 2016)

BANKERSBarclays Bank plcCharities TeamPO Box 54454 Lombard StreetLondon EC3V 9EX

SOLICITORSHoward Kennedy LLPNo. 1 London BridgeLondon SE1 9BG

AUDITORRSM UK Audit LLP Statutory AuditorSt Philips PointTemple RowBirmingham B2 5AF

GLOSSARYACT - Addiction Cleansing Therapy

CBC - Children’s Biblical Centre

PCG - Patient Care Group

RAHAB - Removing All Hurt And Abuse

ROD - Rescue of Dignity Group

UCKG - Universal Church of the Kingdom of God

VYG - Victory Youth Group

OVERVIEWLegal and Administrative Information


The UCKG’s overarching objectives are to advance the Christian faith and implement general charitable purposes.

In practical terms the charity is workingto:

• Further knowledge of the Gospel andthe Christian faith, through outreachand evangelism with the aim of bringing people to God through JesusChrist so that their lives are enrichedboth spiritually and materially in thehere and now, and they are blessed inthe promised salvation.

• Continue the development of HelpCentres across the UK and extendthe charity’s services to more of the nation’s local communities.

• Provide support and motivation foractive volunteer participation in a number of faith-led and communityoutreach groups focusing on areas ofgreat need, and increasing the volunteers’ level of engagement.

• Provide life coaching, career and relationship guidance.

OVERVIEWObjectives


OVERVIEW2016/17 in Numbers


946,554Attendances at churchservices during theyear.

29Full time HelpCentres open daily across theUK.

5,460Hours in the year during which HelpCentres were opento assist all comers.

7,743Total entries in theprayerbook database.

2,310New entries in theprayerbook database.

126Services with baptismsin water were held inHelpCentres during theyear.

505Individuals were baptised in water atHelpCentres across theUK.

1,000Members and friendsattended youth meetings each Sunday,on average.

800Youth group membersaged 14-25 across theUK.

300New members joinedthe youth group in2016/17.

645Community groupmembers nationwide.

496Hours of communitygroup events held during the year.

3,735Hours of communityservice given by volunteers each week.

Services HelpCentres

8,806Calls received by the24-hour helpline.

1,319Members of the publiccalled for the first time.

35%Of all depression related calls were frompeople feeling suicidal.

32%Of all addiction relatedcalls were about drugusage.

Helpline

Database Baptisms

Youth Group

Community Groups

March 2016 • Get Clean EventThe mega event attracted thousands ofpeople to the UCKG HelpCentre in Finsbury Park and started the ACTmovement against all forms of addiction.

May 2016 • Charity FootballPastors tested their skills against the Assistants in a fundraising footballmatch attended by hundreds of peopleeager to raise funds for the UCKG HelpCentre’s work.

May 2016 • Do It For Charity! RunsNow a yearly fundraising event wheremen and women thankful for the UCKGHelpCentre’s work and improvementsin their own lives, run 5K or 10K to raisefunds for the charity.

June 2016 • Diabetes AwarenessThe PCG hosted a Diabetes AwarenessDay looking at the causes andprevention of the disease.

July 2016 • Senior’s Health & FitnessA health and fitness education day forover 55s hosted by the Caleb Group.Speakers covered key topics for seniorsand got them through light exercises.

August 2016 • Job Seekers EventA dozen stallholders including Reed, JobCentre Plus and Islington Council supported the HelpCentre’s first Jobs Fair.

OVERVIEWHighlights from 2016/17


March 2016 • Ovarian Cancer BriefingsCatch it Early, Know the Signs! Thisevent hosted by the PCG providedhealth briefings on ovarian cancer, engaging hundreds of women in vari-ous London boroughs. July 2016 • Youth Engagement Day

The VYG teamed up with local authorities, charities, parks and othersso its youths could serve and benefitvarious local communities across theUK.

July 2016 • Anti-Violence Crime DramaIn collaboration with the MetropolitanPolice, The Last Shot was an event andplay speaking out against violent crime.The drama was choreographed andacted by VYG youths.

October 2016 • Dead EndWith the Mayor of Southwark in attendance, hundreds of south Londonyouths enjoyed a drama performancethat highlighted the real consequencesof our every action - good or bad, withday to day examples.

November 2016 • Tough MudderTeamwork was the key for 15 volunteerswho overcame the gruelling trails of aHalf Tough Mudder in Essex to raisethousands of pounds towards theUCKG HelpCentre’s work.

January 2017 • Youth Awards EventHundreds of young people togetherwith family members and friends attended V-Day 2017 when exemplaryyouths were presented with awards atthe UCKG HelpCentre headquarters inFinsbury Park.

January 2017 • Seniors’ Well & Warm The Well and Warm "Let's Talk About It"event educated south east London seniors on the practical steps that theyshould take to keep their homes ingood order for winter, and ward offwinter sniffles and chills as well as moreserious health issues.


December 2016 • New Year’s VigilThousands of people nationwide tookthe opportunity to bring in the NewYear at events in all UCKG HelpCentres.This promoted better decision makingto ensure success in the year ahead.

January 2017 • Youth of GreatnessVYG members nationwide performed,and were presented to UCKG HelpCentre congregations as part ofthe drive to create an excellent younggeneration.

December 2016 • ACT on the MoveThe highly popular ACT meetingsstarted a nationwide tour taking thissuccessful method for overcoming allforms of addictions to thousands ofpeople.

TRUSTEES’REPORT

The way the UCKG HelpCentre works isfirstly by focussing on the Christianfaith. In practice that results in happierand more fulfilled lives for its clergy andmembers, who demonstrate a powerfuldesire to help anyone who is in need inany way, as guided by the New Testament of the Bible. After receivingsupport some of the people who are

helped start to develop faith for themselves and may eventuallyprogress to join the church and become baptised members. Otherssimply go on their way, relieved to havedealt with some serious or deeply troubling problem in their lives. Eitherway the UCKG is pleased to have madea difference.

TRUSTEES’ REPORTMain Activities


FAITHProvide supportthe doers have jobsatisfaction and growin faith.

On this basis the main activities of theUCKG fall into the two categories,namely faith-led activities and community activities. In addition thereare two further sets of activities - volunteering and fund raising - whichcontribute to the work of the charity.

It should be noted that all UCKG services are free.

All of these activities are reflected inthe Statement of Financial Activities,

with the exception of volunteering asthe financial statements do not quantify the tremendous value addedby volunteers.

Faith-led activities - church and related servicesThe charity’s dedicated evangelisticministry works to spread the Gospelmessage and provision of church services is at the heart of this. All whoattend its services have the opportunityto get close to God in an informal and

Do good workssome who are helped

benefit on a humanscale and develop

faith for themselvesand want to help

others.

others simply benefithumanly and go theirway better as a result.

relaxed environment, at any one of 49locations throughout the UK.

The Weekday Prayer Services aim tomeet the specific needs of any individual. People face problems daily,and it is not always easy to find someone who can lend a listening earor a helping hand. Thus, these servicesgive people an opportunity to voicetheir worries through prayer, receivingwords of encouragement and practicaladvice from the Bible. Services focus on a different area of life each day, and at times the services become part-seminar as the charity teams up withother specialist charities or advisors.

Services take place at least four timesevery day, at 7am, 10am, 3pm and7.30pm, in all full-time HelpCentres, soit is convenient for people to attend in

the context of today’s demandinglifestyles. HelpCentres are also strategically located on or close to highstreets or near transport hubs making iteasier for attendees to make efficientuse of their time.

Sunday Worship Services are dedicatedto seeking the Holy Spirit for renewal of spiritual strength. These services include Bible readings and prayer. HolyCommunion is held on the first Sundayand third Wednesday of every month.

Since 2009 additional services havebeen held in Portuguese and Spanish atthe Finsbury Park headquarters forspeakers of those languages from thelocal community. Most full time HelpCentres now also have Portugueseservices.


MON INDEPENDENCE PROJECTPra yers and guidance for financial growth and success.

TUE HEALING DAYPrayers promote physical wellbeing to complement medical advice and treatment.

WED SPIRITUAL GROWTHPra yers and Bible studies for spiritual growth and development.

THU FAMILY DAY Pra yerful support and guidance for families.LOVE THERAPY SEMINAR Pra yers, advice and guidance for singles and couples.

FRI SPIRITUAL CLEANSINGPra yers for freedom and protection from negativity.

SAT DISCIPLESHIPEvangelism and outreach.

SUN EMPOWERMENT Connecting with God, with the self and with positive people.ADDICTION CLEANSING THERAPY Pra yers to break free from addictions.

Weekly Services ScheduleServices take place daily at 7am, 10am, 3pm and 7.30pm

Addiction Cleansing TherapyLaunched in 2016 the now popular ACTmeetings have cemented a place of importance in the lives of attendeesfaced with the challenge of overcomingaddictions. These meetings also support family members who are affected by a loved one’s addictivelifestyle. ACT meetings take place everySunday afternoon at the Finsbury ParkHelpCentre, but due to their huge success, these meetings have beentaken on tour to all HelpCentrebranches nationwide.

24-hour HelplineWith pastors and volunteers workingshifts around the clock, the 24-hourHelpline offers a combination of practical and spiritual guidance, while,according to need, some callers are referred to specialist organisations,other charities, the emergency servicesor the police. During the 2016/17 financial year the Helpline received atotal of 8,806 phone calls, 1,319 ofwhich were from first time callers. Themajority of callers were not churchmembers, but individuals with problems who were in urgent need of alistening ear. They had heard of thecharity through bulletins, newspapersor TV and radio programmes.

GodllywoodThis is a specialist women’s ministryaimed at supporting feminine Christianwomanhood. It is led by the wives ofUCKG pastors and bishops on the basisof faith, and focuses strongly on establishing and maintaining strongself-esteem.

Individual spiritual supportThe UCKG’s DBS checked pastors andbishops are also available to provide

one-on-one spiritual support for anyone who is deeply troubled, even tothe extent of feeling suicidal.

Children’s Biblical Centre The CBC continues to work with children and parents to help instil principles and values that will benefitthem throughout their lives. Today’spre-school and primary school childrenare vulnerable to the increasing dangers facing the younger generations. In the 2016/17 financialyear the CBC held a special FriendshipDay party at each of the UCKG’s mainbranches, and many children invitedtheir friends and families. The eventwas a great success with dance, drama,music and competitions to engage thechildren and their guests in the specialwork of the CBC.

BookshopThe UCKG’s Christian Books Plus outletsare located in the full-time HelpCentresto supply material that supports thespiritual development of both congregants and members of the public who are interested.

Pilgrimage to IsraelThe UCKG organises a pilgrimage to Israel every few years, encouraging andinspiring the congregation to visit Biblical locations, thereby benefitingtheir faith. The UCKG believes that allmembers experience a great spiritualrevival when they visit the Holy Land.

Pilgrimage to Solomon’s TemplePilgrimages to the newly completedreplica Temple of Solomon in São Paulo, Brazil started in July 2014. By visiting the temple members of thecongregation experience a positive impact on their faith and benefit as


they become better able to appreciate and understand the TenCommandments and laws from the Oldand New Testaments.

Faith-based special eventsEach month the UCKG HelpCentreholds a number of faith-based specialevents, and this applied in the yearended 28 February 2017. Such eventsaddress the spiritual needs of differentsections of the congregation, includingwomen, parents, those consideringmarriage, youths and others. Theseevents can take place in the headquarters HelpCentre in FinsburyPark or may be conducted across thenation in all HelpCentres.

March 2016Get Clean – An event aimed at providing addicts and their families orfriends with prayerful support to overcome addictions.

Campaign of Justice – business meeting – This event sought to encourage business people to push forward in their endeavours.

Sideman – A VYG faith-led event heldat all HelpCentres that included adrama production, other performancesand a message to highlight key issuesaffecting young people today particularly the harmful effects of badinfluences.

April 2016Good Samaritan Sunday – Using theparable of the Good Samaritan, congregants were encouraged to inviteall those around them who have beenafflicted or are going through a hardtime in life, to receive prayer, supportand guidance.

Rebirth Night Vigil – This overnightVYG event was based around the concept of being a new person, leavingpast pains and traumas behind to become the young person that theybelieve they were originally meant tobe. It provided a powerful message,performances linked to that messageand opportunities to pray.

May 2016Reverse Day – A special Sunday morning meeting designed to giveguests the tools they would need to actively use their faith in God to reversenegative situations in their lives.

September 2016Afternoon of Power – 12 Apostles –These meetings drew on the Biblical account of the Apostles travelling fromplace to place, performing miracles andspreading the Gospel. The differentbranches were visited by 12 pastors ona weekly basis to hold special meetingsof faith for the alleviation of suffering.

Marriage Course – A seven weekcourse exclusively for married and engaged couples, giving them the tipsand tools they need for a successfulmarriage.

November 2016The Power of Enough – This event wasfor people who claimed to have hadenough of a particular situation in theirlives, and provided the church’s guidance and support to help themfind a way out of their situationthrough the power of their faith in God.

December 2016Retrospective 2016 – The ladies ofGodllywood held a special event to review the group’s activities and


achievements throughout that year.

ACT on the move – The AddictionCleansing Therapy meetings’ nationwide tour.

New Year’s Vigil – Special gathering in all HelpCentres promoting better decision making in the year ahead.

January 2017Independence Project – A series ofmeetings where people from all walksof life were encouraged to depend onGod and themselves, and look for achange of scenario in their professionallives and thereby achieve financial independence.

Self-awareness Course – Run by Godllywood, this course set out to helpwomen find the roots of problems thatare affecting them and learn how to become happier and well rounded.There was great emphasis on the effects of abuse and past hurts, andwomen were supported through thesessions by other women who haveovercome these things and could shareexperiences.

Youth of Greatness – Held as part of the Sunday morning service, VYG members pledged to commit themselves to excelling throughout theyear ahead.

The Day of the Decree – Drawing onthe Bible story of Queen Esther, thisevent focused on the way people areaffected by being stereotyped or thepreconceptions others have aboutthem. Attendees learnt how to breakthe moulds and create a new story fortheir lives, based on the word of God.

February 2017One Word – This event taught the attendees to use the Word of God toovercome the negative words they hadbeen given.

The HelpCentresThe UCKG requires suitable premises in which to hold its services of prayerand from which to deliver all its faith-led and other activities. Consequently,the charity has built up a portfolio offreehold and leasehold HelpCentres -defined as being more than traditionalchurches - in city centre and similar locations, along with hired venues forits special works.

Further, the charity is constantly seeking opportunities to extend itsservices throughout the nation, particularly in areas where demand hasbeen proven, in order to meet its visionof spreading the Gospel across the UKand beyond, enabling people to develop and integrate their faith intoevery aspect of their lives.

For the year ended 28 February 2017,the charity had 29 full-time branchesincluding the headquarters in FinsburyPark, north London, and 20 specialworks. The special works operate fromhired venues such as community andschool halls, church halls, cinemas or libraries. They are open just a few daysa week and offer a smaller range of spiritual and other services than a fullyfledged HelpCentre.

With the objective of re-investing its reserves into the communities served,the charity is constantly seeking opportunities to expand and developits existing HelpCentres. Refurbishments to existing HelpCentres


were made during the 2016/17 financial year at the headquartersin Finsbury Park and other branches including Sheffield, Manchester, Bullring (Birmingham), Catford andStamford Hill plus smaller scale worksin Edmonton. All of these brought theproperties up to the necessary healthand safety standards, making themmore user friendly and creating betterHelpCentres for the community.

During the year the charity has endeavoured to address the considerable need for its services in theWalthamstow area of east London andthis work is ongoing as the search continues for premises that will enableit to establish a HelpCentre in Walthamstow. The charity is hopeful fora breakthrough in 2018.

Support for Overseas ChurchesWith a world-wide presence, the charityis constantly maximising the donationsreceived by applying them to its workof helping church members in the UKand in sister churches overseas, to receive the spiritual support they needto turn their lives around.

In past years the charity has supportedits sister churches in Ireland, Belgium,Nigeria, Tanzania, Jamaica and Mauritius by means of loans enablingthem to further spread the Gospel. Support was provided to help the sisterchurch in Ireland with the purchase and refurbishment of a new church buildingfor its growing congregation. A loanwas provided for the purchase of aheadquarters building in Belgium to accommodate the expansion of localcommunity and spiritual works.

The loan to Nigeria was made to

support the building of the new Cathedral of Faith. As the Nigerian government has not allowed transfersof funds overseas since August 2015,the trustees decided to make an impairment against this loan in2015/16. A loan was provided duringthe 2014/15 financial year to the sisterchurch in Tanzania to help with the purchase of a plot of land for the construction of a new headquarters forthe church. In addition, a loan was provided to the sister church in Jamaicain the same financial year to help withthe construction of its first cathedraland thereby further advance theGospel. During 2016/17 a second loanwas provided for the sister church in Mauritius to help with its new churchand assembly hall construction.

Repayment of all loans is continuing as due, apart from the loan to Tanzaniawhere the local bank is not allowingpayments to be made and the loan toNigeria, which has been impaired. Partof the charity’s support for these sisterchurches is that loan repayment periods can be long term and areagreed in consultation with the sisterchurch to provide flexibility for its development.

During the 2016/17 financial year theUCKG has helped with the subsistenceand renovations of the sister church inIsrael, with a donation of £353,522, and£31,636 for the ongoing subsistence ofthe sister church in Dubai. A further£100,000 was provided for the sisterchurch in Jamaica to help with the construction of its first cathedral, and£11,278 was sent to the sister church inMalta to help with subsistence costs.Ongoing subsistence of £88,605 and£48,341 respectively, was provided for


the development of sister churches inCyprus and East Timor. Finally, £3,914was given in the form of donated booksfor various sister churches overseas.Further details of transactions with sister churches can be found in Notes11 and 21.

Depending on the level of available reserves and the nature of the projects,the charity will continue its support tohelp further the Christian faith throughits sister churches overseas.

Community Outreach In addition to prayer and spiritual support, HelpCentres offer practicalhelp and guidance via the charity’s outreach services, that include its community groups and many secularevents. The UCKG is highly adaptive, listening to and identifying the needsof its members and communities, andworks to help meet those needs in thebest ways possible.

All UCKG community activities are free,and include:

• One to one practical advice sessions.

• A 24-hour Helpline offering information and support from speciallytrained volunteers with relevant experience.

• An interactive website which providesaccess to its services online.

• Individual support in cases of personalcrisis for people currently resident athome or in care facilities, hospitals orprisons.

• A training centre.• One off events: ad hoc charitable

activities, which do not fall under any ofthe other charitable activity headings.

Training CentreThere is currently a single UCKG Training Centre at the Rainbow Theatre.

This centre opened in the year 2000and became an established project,providing vocational training, careeradvice and guidance, and business support to local residents in north andsouth London boroughs. Following the2008 recession, however, it became increasingly difficult to find funding foraccredited courses, and so the methodof operation has been modified.

Classes offered by the Training Centreare now only taught by volunteers whoare skilled in their professions, with theaim of helping attendees to learn thebasics of a new skill and improve theirconfidence. The classes taught are:

• Basic English.• Web design.• Graphic design.• IT.

These classes cannot provide attendeeswith qualifications but enable them toimprove their basic skills in some keyareas and increase their confidence intheir abilities. The Training Centre alsooffers help with CV updates.

Delight CaféThe Delight Café is a small café whichserves pastries and drinks to UCKG congregants. At present there are threeoutlets, in the Rainbow Theatre, Peckham HelpCentre and the LeedsHelpCentre. As new HelpCentrebranches open, more cafés will beopened in future


Community GroupsCommunity outreach is deliveredthrough a number of groups for specific sections of the community.Groups are based at the main HelpCentres, and focus locally on localand national needs.

CalebThis group helps and supports seniorsthrough advice sessions and home help(eg shopping, house cleaning etc) plussocial activities such as dinners, dancesand outings. The aim is to provide support, combat loneliness and makelater life enjoyable and rewarding, forthose who may be isolated and otherswho simply enjoy socialising.

The group is open to everyone of retirement age and above, recognisingthat the needs of active 50s and 60s arevery different from those of people intheir 80s, 90s and beyond.

Happy Parenting GroupThis group developed as growing numbers of young single mothersturned to VYG for support. Many lackedhope for the future and had abandoned their ambitions due to theearly pregnancy. The group encouragessingle mums to make the most of theirlives for the benefit of themselves andtheir children, and is open to young single mums, although attendees donot have to be members of the UCKGor VYG.

Patient Care GroupThe men and women of this group visitpatients on a voluntary basis, either attheir homes, in hospital, or in care facilities, with the aim of helping to alleviate pain and suffering both spiritually and physically. Anyone in

temporary or permanent care, or athome, and especially those withoutanyone close who can give them support and comfort can benefit.

Removing All Hurt And AbuseRAHAB was set up to reach out towomen who are victims of domestic violence and abuse, including coercivecontrol. It helps women by giving thema chance to express themselves and byproviding practical advice on how toregain their self-esteem and rebuildtheir lives and their families.

The volunteers who run this group aresurvivors of domestic abuse who drawon their own experience to supportothers. As necessary referrals can bemade to specialist groups. RAHAB welcomes all women who are victims ofdomestic violence and abuse and thoseaffected by someone else’s victimisa-tion.

Rescue of DignityROD supports remand and sentencedprisoners throughout the UK both practically and spiritually throughprison visits and regular letter writing.Families of inmates can also take part in support sessions. ROD’s volunteershelp inmates to reflect on their spirituallives and provide support on release tohelp with integration back into thecommunity.

Victory Youth Group The VYG is an active youth programmewith a regular attendance of 1,000 14 to25 year olds every week. An importantpart of the VYG’s work is providing a familiar place to which young peoplecan turn for practical, moral and ethicaladvice, mentoring and guidance. It alsoworks with young people to help them


achieve and be the best that they canbe.

During the year, VYG members ran the“Where U Going?” initiative for a ninthconsecutive year. This project aims toraise young people’s awareness ofwhere their behaviour and actions havebeen leading them and teaches youthsabout the consequences of acting inthe heat of the moment. Over 1,400young people attended this and otherevents. All VYG events include music,dance and drama performances basedon real life issues and help the youthsto take a good look at themselves andsee if they are being influenced by others. The purpose is to help theyouths develop a good character,changing their habits where necessary.

For the coming year, the youth programme aims to develop and growto reach more youths with a mixture ofpractical teaching and one to one advice sessions as well as fun activitiesto help young people reach their fullpotential.

UCKG in the CommunityOne of the challenges facing the UCKGin modern Britain is how to respond to the multi faith community. The answer is to take a highly practical approach and work together with a variety of other organisations for the benefit of the entire community. Hereare some examples.

March 2016Catch it Early, Know the Signs - ThePCG teamed up with a number of specialised charities – includingMacmillan Cancer Support, OvarianCancer Action and the South East Cancer Help Centre – to provide health

briefings on ovarian cancer. The eventwas prompted by the fact that March isOvarian Cancer Awareness Month andthe briefings were aimed at teachingwomen to recognise the symptomsthat are indicative of this potentially lifethreatening disease. Sessions were heldin a number of London boroughs, attracting hundreds of women.

Crafternoon Tea - Cupcake Decorating Class – The Happy Parenting Group ran a cupcake decorating class where single mumscould acquire new skills for their ownenjoyment and that of their children,and possibly for future business use.

April 2016Mind Body Spirit Wellbeing Festival –An official event where volunteers fromthe UCKG HelpCentre promoted the alternative of faith to those needing toturn their lives around.

June 2016Diabetes Awareness Day - The PCGhosted this event at Edmonton HelpCentre, attracting some 80 people.Two nurse consultants specialising indiabetes explained the causes and different types of the disease andmethods of prevention. Attendees represented the wide range of ethnicities living in the area, includingTurkish, Greek, English, African andCaribbean.

July 2016Over 55s Health and Fitness Education Day - Caleb organised thisevent at the Finsbury Park HelpCentre.Four guest speakers addressed some 85people on topics of key interest to olderpeople, including physical and mentalhealth, fitness and housing. There were


some light exercises for everyone tojoin in.

We Care! – Youth Engagement - VYGtook to London’s streets, parks, greenspaces, conservation areas, car parks,care homes, and a festival with its annual community support programme. As usual, the VYG teamedup with local authorities, other charities, park authorities and others tobenefit their local communities. Hundreds of VYG members across thecapital gave up a Saturday to sweepingstreets, litter picking, environmentalcleaning, gardening and helping to runa festival, with many from the communities that have benefitted, expressing their gratitude on the spot.

The Last Shot - On 31 July, the VYG wasagain active, hosting this event in collaboration with the Metropolitan Police. The centrepiece was a playspeaking out against violent crime, especially where it involves the use ofguns, knives and racial abuse. The eventdrew 1,300 youths from all over Londonto the Finsbury Park HelpCentre.

August 2016Jobs Fair - Over 200 job seekers attended the UCKG’s first jobs fair, organised by the Community Outreachdepartment. Islington Job Centre, ReedEmployment and Islington Councilwere among the 12 stallholders whoparticipated, with various opportunitieson offer including training, apprenticeships and real jobs. Attendees were encouraged to seek advice and wherever possible to signup for work and training. The event wasvery successful with some attendeessecuring new jobs as a result.

Seaside Trip – For the year to 28 February 2017, Caleb repeated thispopular annual event, which gives seniors an enjoyable day trip to the seaside.

September 2016Plaistow Youth Market – The local VYG branch provided an hour’s entertainment at Plaistow Youth Market. Their show included song,dance and spoken word entertainment,with solos, duets and group performances, in support of the youthmarket, which is designed to provideyoung entrepreneurs with a chance tosell their products and promote theirbusinesses. One VYG member was evena stall-holder at the market.

Body, Mind and Soul event – A furtherofficial event where volunteers fromthe UCKG HelpCentre promoted the alternative of faith to those needing toimprove their lives.

December 2016Christmas Lunch – Once again, Calebrepeated this annual event where seniors dine, tell stories, play gamesand have a lot of fun together – the antidote to isolation.

January 2017V-Day – VYG members who stood outin their commitment to change and tohelping others were acclaimed in thepresence of their families and friends.

Well and Warm – The Peckham branchof the VYG in south London ran thisevent at its local HelpCentre. The aimwas to brief the seniors on keepingwarm and taking care of themselvesthrough the cold of winter, when older


people are more vulnerable to serioushealth problems. VYG provided entertainment and led the seniors ingentle exercise. Southwark andLewisham Age UK provided funding.

Public BenefitThe trustees confirm that they have haddue regard to the public benefit guidance published by the CharityCommission, and are satisfied that theactivities described and listed in theTrustees Report provide public benefitto the public at large.

The UCKG provides activities that focuson helping individuals of all ages, fromall backgrounds, to get closer to Godand thereby live more fulfilled lives. Activities are provided free of chargeand are made accessible to everyonethrough extensive advertising on TV,radio, billboards, magazines, newspapers and also by word ofmouth. All the activities focus onincreasing personal confidence. Thishelps people to find employment; contributes to good mental, physicaland spiritual wellbeing; helps to resolvepersonal and family conflicts; and encourages people to have a more positive outlook on life, as well as providing solace and purpose.

As these values are put into practice inthe lives of those who attend UCKGHelpCentres, this in turn generates thewider public benefit of an improvedand improving society. The UCKG alsovisits people in hospitals, prisons orwho are otherwise housebound, takingpositive action to support those whoare unable to visit a HelpCentre.

Volunteering InvolvementOver 2000 volunteers dedicate

thousands of hours of their free time toserving others through the UCKG in allof its main activities.

There is no doubt their good work isthe heartbeat of all of the UCKG’s Community Outreach activities; theircontribution is invaluable.

The volunteers assist at the four timesdaily services, work in the bookshops,Training Centre, Delight Cafés and CBCand are central to all community groupactivities and fundraising events. Thetrustees would therefore, extend theirheartfelt appreciation and gratitude toall volunteers who have given freely oftheir time during the year and provedtheir commitment, strength and dedication towards helping to changethe lives of others.

Fund RaisingThe charity did not take part in any restricted fundraising activities in the financial year ending 28 February 2017,although specific appeals were madeduring church services in respect of thenew Manchester premises and theSheffield refurbishment.

Various other general fundraising activities took place during the year including door to door fundraising,store collections, Christmas Carolsinging and participation in a sponsored Tough Mudder obstaclecourse run in November 2016. For theninth consecutive year sponsored runners from the UCKG took part in aDoItForCharity! 5K run in May 2016,with 80 runners participating.


The Universal Church of the Kingdomof God (the charity), is also known asthe UCKG HelpCentre, UniversalChurch, Universal and UCKG. The governing document of the charity isits Constitution, which was amended,and the amended version adopted, inJanuary 2015. The charity was first registered in 1995 under the name, Universal Church of the Kingdom ofGod; its charity registration number is 1043985. The trustees were incorporated as a body in June 2004.

Objectives of the CharityThe charity exists to advance the Christian faith and for such charitablepurposes as the trustees shall from timeto time decide to support (page 07 ex-pands on this). Although the charity is autonomous as regards its financial, legal and administrative functions in the UK, it is part of a worldwide organisation of churcheswith a presence in over 100 countries.The sister churches abroad essentiallyshare the same objectives as the UKchurch, however this report andaccounts only covers the activities ofthe UCKG in the UK and does not reflectthe affairs of the church in any othercountry.

The UCKG is committed to helping people to discover their potential andlive life to the full, as well as working toexpand and to reach out to as manypeople as possible with the message ofthe Gospel. Evangelism, advertisingcampaigns and the opening of new

branches are central to this. The charityalso provides financial support to itssister churches in developing nationsby means of donations and/or loans,which are presented as programme related investments in the balancesheet.

Organisational StructureThe charity is governed by a Board ofTrustees, which forms the ExecutiveCommittee.

This committee is made up of not lessthan five members and not more thaneleven members including three honorary officers, namely the chair, secretary and treasurer. The committeemembers comprise at least:

• One and not more than three pastorsof the Universal Church of the Kingdomof God (the pastoral members) nominated by the Bishop in Charge inwhom is vested such power of nomination at the annual generalmeeting. The pastoral members are appointed for one year and hold officeuntil the following annual generalmeeting.

• One and not more than five memberselected at the annual general meeting,who hold office for one year from theconclusion of the meeting at whichthey were elected until the followingannual general meeting.

The Executive Committee holds at leasttwo ordinary meetings each year and

TRUSTEES’ REPORTStructure, Governance and Management


an annual general meeting after theend of the charity’s financial year. Theannual general meeting provides theoccasion to review performance overthe past year and agree key objectivesfor the coming year.

The charity purchased 100% of theshare capital of Liberty Radio Limitedon 28 March 2006 and continues to use this trading subsidiary to broadcastthe message of the Gospel. The trusteesare satisfied with Liberty Radio’s performance for the year, which is setout in Note 12.

Recruitment and Appointment ofTrusteesThe charity is governed by its Constitution. Details of the trusteeswho served during the 2016/17 financial year and those who were inpost at the date of this report are setout on page six.

Proposed new trustees are assessed inlight of the skills mix needed to supplement the current trustee body,and are elected at the annual generalmeeting by registered members of thecharity. If they are willing, trustees maybe re-elected or re-appointed at the annual general meeting, having completed their year of service. Charitymembers also elect from among themselves a chair, secretary and treasurer, who sit on the ExecutiveCommittee.

Induction and Training of TrusteesAll trustees are required to have abroad understanding of the charity’sobjectives, and possess pastoral andbusiness leadership skills. On appointment, each trustee undertakesa formal induction programme. This

outlines essential aspects of the charity,its governance, its objectives and howthese are to be achieved through its Vision and Purpose. Training is tailoredto meet each trustee’s needs, and ifnecessary, training is provided ontrustees’ responsibilities. Trustees arealso made aware of other sources of information and guidance on how tobe effective in their role.

The Trustees’ ResponsibilitiesThe trustees of the UCKG are responsible for preparing the annualTrustees' Report and Financial Statements in accordance with applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice).

The relevant law applicable to charitiesin England and Wales calls for thepreparation of financial statements foreach financial year that give a true andfair view of the state of affairs of thecharity and the group and of the income and expenditure of the groupfor the period in question. In preparingthese financial statements, the trusteesare required to:

• Select suitable accounting policiesand apply them consistently.

• Observe the methods and principlesin the Charities SORP (FRS 102).

• Make judgments and estimates thatare reasonable and prudent.

• State whether applicable accountingstandards have been followed, subjectto any material departures disclosedand explained in the financial statements.


• Prepare the financial statements onthe going concern basis unless it is inappropriate to presume that thegroup will continue in business.

The trustees are responsible for thekeeping of proper accounting recordsthat disclose the financial position ofthe charity and the group with reasonable accuracy at any time, andenable them to ensure that the financial statements comply with theCharities Act 2011, the Charity (Accounts and Reports) Regulations2008 and the provisions of the charity’s

Constitution. They are also responsiblefor safeguarding the assets of the charity and the group and for takingreasonable steps to prevent and/or detect fraud and other irregularities.

Similarly, the trustees are responsiblefor the maintenance and integrity ofoperational and financial informationincluded on all relevant websites. UKlegislation governing the preparationand dissemination of financial statements may differ from that ofother jurisdictions.


BOARD OF TRUSTEES

Trustees of the UCKG HelpCentre are responsible for the overall running of thecharity in the key areas of:

StrategyAgreeing objectivesand strategy for the charity and determining principles and policies to meet theoverall strategy.

FinanceSetting guidelinesfor and agreeingthe annual budget;deciding on appropriate financial monitoring procedures; authorising signatories on bankaccounts; agreeingborrowings and securities; approving the annual accounts;ensuring adequateresponse and action is taken following the annual audit;agreeing investment strategyand parametersand setting policiesfor reserves.

PersonnelDefining policy onemployment termsand conditions, including disciplinary andgrievance matters;agreeing employees’ remuneration packages.

GeneralSetting parametersfor the delegationof authority; electing honoraryand other officers;reviewing risk management withregular reporting,and giving notice ofmeetings to fellowtrustees, membersand others.

The trustees have overall responsibilityfor ensuring that the charity employsan appropriate system of controls, safeguarding the charity’s assets andtaking reasonable steps to prevent anddetect fraud by providing a reasonableassurance that:

• The charity is operating efficiently andeffectively.

• Its assets are safeguarded againstunauthorised use or deposition.

• Proper records are maintained and financial information used within thecharity or for publication is reliable.

• The charity complies with all relevantlaws and regulations.

The UCKG’s internal control systems aredesigned to provide reasonable, butnot absolute, assurance against material misstatement or loss. They include:

• A strategic plan and an annual budgetapproved by the trustees.

• Regular consideration by the trusteesof financial results, variances frombudgets and non-financial performance indicators.

• Delegation of authority and segregation of duties.

• Identification and management of issues of strategic and operational importance to the charity and group.

Power of AttorneyPower of Attorney is given to theBishop in Charge, who manages thespiritual affairs of the charity and

carries out related administrative activities. He is answerable to the Boardof Trustees in all matters.

Management and StaffThe management and organisation ofthe charity is defined by its spiritual andadministrative structures. The pastoralministry makes up the spiritual structure. The administrative structureis organised into departments coveringall the key areas of activity such asproperty management and buildingmaintenance, accounts, administrationand ancillary trading, publications,media and press. The trustees delegatethe operational and day-to-day administrative management to thegeneral and department managers.

The policy for key management remuneration is set and closely monitored by the trustees and is overseen by the Bishop in Charge. Thecharity has standard thresholds for remuneration at this level, and takesnote of the experience, skills and aptitude of the relevantemployee/pastoral staff member.

Risks and UncertaintiesAs part of the risk assessment process,the adequacy of the charity’s internaland external controls is reviewed annually. A formal risk assessmentprocess which identifies the charity’skey operational and financial risks isdocumented. During the year in question, policies were updated in relation to contingency plans on fraudprevention, child protection, health andsafety and employment legislation toensure compliance with statutory requirements. No high level risks havebeen identified.


The charity does not receive any government grants, its main incomebeing generated from service donations. This is not seen as a highlevel risk as the charity has a large loyalfollowing, is spread geographicallyacross England and Wales and is constantly expanding by opening newbranches to accommodate the need forHelpCentres across the UK.

Public perception of the charity is alsonot classed as a high level risk as complaints are dealt with and resolvedimmediately.

Continuing assessment is under way tostrengthen the UCKG’s resilience, usinga review process to identify, prioritiseand manage the charity’s risks.


The Group and Charity Statements ofFinancial Activities for the year are setout on pages 35 and 36 respectively.

The group’s income during the yearamounted to £14,952,607 (2015/16:£14,992,405) of which £12,405,064(2015/16: £11,797,029) represented donations from church services. The net movement in funds amounted to£2,134,975 (2015/16: £2,200,220) resulting in total fund balances carriedforward of £57,055,533 (2015/16:£54,920,558).

IncomeThe charity does not receive any government grants. Unrestricted donations from church services represent approximately 83% (2015/16:79%) of the total income.

ExpenditureExpenditure for the year totalled£12,988,945 (2015/16: £13,049,624) for continuing activities. This wasbroadly in line with previous years butsome of the main movements includeda one-off impairment provision of£359k in 2016, an increase in sisterchurch donations of £418k and a reduction in bookshop purchases of£115k in 2017.

Approximately 98% (2015/16: 98%) ofexpenditure is related to charitable activities with the balance being attributed to the costs of raising funds.A detailed analysis of expenditure isgiven in note 5 (page 44). Staff-relatedcosts amounted to 26% (2015/16: 25%)of expenditure. It is recognised that

staff are an invaluable resource andcentral to the way in which the charity’saims and objectives are delivered andsupported.

Balance SheetThe balance sheet shows an analysis ofthe funds of the group and the charity.Group funds totalled £57,055,533(2015/16: £54,920,558), while the Charity’s funds totalled £56,239,015(2015/16: £54,271,760). There were norestricted funds as at 28 February 2017.(2015/16: none).

Reserves PolicyAs the charity expands its works, a large part of its resources continue togo towards establishing new churchesand HelpCentre facilities so that it canexpand its activities and ensure that itswork continues to flourish and meetbeneficiary needs.

The total unrestricted net assets at theyear end were £57,055,533. Of thisamount, £40,569,136 is represented by fixed assets held for charitable use,principally being freehold and leasehold church and HelpCentre properties. The net book value of thecharity’s tangible fixed assets represented by freehold property is£38,858,862 (2015/16: £38,903,066), see note 10 (page 47). The charity alsocontinues to make loans to its sisterchurches, as programme related investments, in line with its charitableobjectives so that they may spread theGospel message. As a result, thesefunds are not freely available, as theloans are repayable by instalments over

TRUSTEES’ REPORTFinancial Review


a period of time. The total amount ofthese programme related investmentswas £4,957,812 (2015/16: £4,362,821)see note 11 (page 48). The group’s freereserves, which exclude freehold andleasehold properties and sister churchloans, at 28 February 2017 were£11,807,559 (2015/16: £10,557,827).

The reserves policy covers only thosefree income funds that are backed bynon-property assets and excludes restricted funds. This is in line with theguidance CC19 Charity Reserves, issuedby the Charity Commission. When deciding the level of reserves that is appropriate for the charity, the Board ofTrustees takes into consideration theforecasts for levels of income and expenditure for the coming year, thereliability of each source of income andthe prospects for opening up newsources.

The Board of Trustees believes that it isappropriate to maintain reserves at alevel of between three and four monthsof budgeted unrestricted expenditure,(£3,850,000) principally through voluntary income and fundraising activities, to cover the charity’simmediate working capital and capitalexpenditure requirements, to meet itscommitments, and also seasonal fluctuations in its budgeted incomeand expenditure. The charity currentlyholds more than this amount, which isbeing reserved for property acquisitions, refurbishments, community works and the continuingexpansion of the charity’s work. The charity has capital commitments authorised but not contracted out atthe year end as shown in Note 20 (page54).

The reserves policy seeks to continue to maintain at least this level of free reserves over the medium term.

Investment PolicyThe trustees have the power to investthe charity’s assets as they see fit. Theamount of investment will depend onthe level of reserves and commitmentsfor the year. The charity’s main methodof investing its surplus reserves isthrough the purchase or lease of buildings and converting them intoplaces of worship in order to carry outits aims of spreading the Gospel message.

All investment options take into account the relevant risk factors. Otheroptions will be considered and thecharity reserves the right to determinethe investment options of interest andreview them from time to time. Thecharity will never invest in the stockmarket or anything similar that doesnot guarantee a return on investment.Any surplus working capital is held ontreasury deposit with the bank. Thetrustees are satisfied with the investment income for the year, whichis set out in note 3 (page 43).


The charity has set out its core objectives in its strategic frameworkdocument for 2015-2020.

• Furthering the Gospel: to enable people to know God, to grow in understanding and commitment intheir faith and to integrate it into everyaspect of their lives.

• Evangelism: to spread the Gospelthrough effective evangelism.

• Discipleship: to support the training of ministers, leaders and disciples supporting the objectives of evangelism and furthering knowledgeof the Gospel.

• Family Unit Foundation: to encourage the establishment of goodand stable family units, this is paramount to a fulfilled Christian life.

• Working with Youths: to develop andimprove on the guidance and supportgiven to youths and children in securing their welfare.

• Cooperation: working with other organisations, churches and faithgroups for the benefit of the community.

• Staff Development: to encourage aworking culture, underpinned by Christian values, and based on efficientand effective structures and systems.

• Learning: To improve our ability to bea learning organisation.

The coming year will see further development in these areas and an extension of the UCKG’s services to itscongregations and local communities.

AuditorA resolution to reappoint RSM UK Audit LLP as auditor will be put by thetrustees at the Annual General Meeting.

Statement as to Disclosure of Information to AuditorThe trustees who were in office on thedate of approval of these financialstatements have confirmed, as far asthey are aware, that there is no relevantaudit information of which the auditoris unaware. Each of the trustees hasconfirmed that they have taken all thesteps that they ought to have taken astrustees in order to make themselvesaware of any relevant audit informationand to establish that it has been communicated to the auditor.

Approved by order of the trustees on18 December 2017 and signed on theirbehalf by:

Audrey Tung de MedeirosChair of Trustees

TRUSTEES’ REPORTPlans for Future Periods


INDEPENDENTAUDITOR


Opinion on financial statementsWe have audited the financial statements of UCKG HelpCentre (the‘charity’) and its subsidiary (the ‘group’)for the year ended 28 February 2017,which comprise the Group and CharityStatement of Financial Activities, theGroup and Charity Balance Sheets, theGroup and Charity Statements of CashFlows and notes to the financial statements, including a summary ofsignificant accounting policies. The financial reporting framework that hasbeen applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102“The Financial Reporting Standard applicable in the UK and Republic ofIreland”.

In our opinion the financial statements:

• give a true and fair view of the state ofthe group’s and charity’s affairs as at 28February 2017 and of their incomingresources and application of resourcesfor the year then ended;

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

• have been prepared in accordancewith the requirements of the CharitiesAct 2011.

Scope of the audit of the financialstatementsA description of the scope of an audit

of financial statements is provided onthe Financial Reporting Council’s website at http://www.frc.org.uk/au-ditscopeukprivate

Matters on which we are required toreport by exceptionWe have nothing to report in respect ofthe following matters where the Charities Act 2011 requires us to reportto you if, in our opinion:

• the information given in the Trustees’Report is inconsistent in any materialrespect with the financial statements;or

• sufficient accounting records have notbeen kept by the parent charity; or

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

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

Respective responsibilities oftrustees and auditorAs explained more fully in the Statement of Trustees’ Responsibilitiesset out on pages 24 to 25 the trusteesare responsible for the preparation ofthe financial statements and for being satisfied that they give a true and fairview.

We have been appointed as auditorsunder section 151 of the Charities Act2011 and report in accordance withregulations made under section 154 of

INDEPENDENT AUDITORIndependent Auditor’s Report to the Trustees


that Act. Our responsibility is to auditand express an opinion on the financialstatements in accordance with applicable law and International Standards on Auditing (UK and Ireland).Those standards require us to complywith the Auditing Practices Board’s(APB’s) Ethical Standards for Auditors.

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011.Our audit work has been undertaken sothat we might state to the charity’strustees those matters we are requiredto state to them in an auditor’s reportand for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the charity and thecharity’s trustees as a body, for ouraudit work, for this report, or for theopinion we have formed.

RSM UK Audit LLPStatutory AuditorChartered AccountantsSt Philips PointTemple RowBirminghamB2 5AF

20 December 2017

RSM UK Audit LLP is eligible to act as anauditor in terms of section 1212 of theCompanies Act 2006.

FINANCIALSTATEMENTS

FINANCIAL STATEMENTSGroup Statement of Financial Activitiesfor the year ended 28 February 2017


Notes

Unrestricted Funds

£

Restricted Funds

£

2017 Total Funds

£

2016 Total Funds

£ Income from: Donations Other trading activities Investments

1 2 3

14,001,999 376,110

94,565

15,965 -

49

14,017,964 376,110

94,614

13,628,153 452,622

81,543 14,472,674 16,014 14,488,688 14,162,318 Charitable activities: Provision of Church Services Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

180,863 1,305

42,332 114,757

18,232 106,430

- - - - - -

180,863 1,305

42,332 114,757

18,232 106,430

161,313 2,055

45,984 226,933

20,239 128,950

463,919 - 463,919 585,474 Other 4 - - - 244,613 Total Income 14,936,593 16,014 14,952,607 14,992,405 Expenditure on: Raising funds 6 250,530 - 250,530 287,879 Charitable activities: Provision of Church Services Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

11,712,533 648,187

72,848 33,499

126,550 19,686

109,385

15,727 - - - - - -

11,728,260 648,187

72,848 33,499

126,550 19,686

109,385

11,674,267 589,912

68,660 42,238

237,349 22,792

126,527 5 12,722,688 15,727 12,738,415 12,761,745 Total expenditure Net gains on Investments 11

12,973,218 171,313

15,727 -

12,988,945 171,313

13,049,624 257,439

Net income before transfers 2,134,688 287 2,134,975 2,200,220 Gross transfers between funds 18 287 (287) - - Net movement of funds in year 2,134,975 - 2,134,975 2,200,220 Reconciliation of funds Total funds brought forward 54,920,558 - 54,920,558 52,720,338 Total funds carried forward 19 57,055,533 - 57,055,533 54,920,558 All income and expenditure derive from continuing activities.

FINANCIAL STATEMENTSCharity Statement of Financial Activitiesfor the year ended 28 February 2017


Notes

Unrestricted Funds

£

Restricted Funds

£

2017 Total Funds

£

2016 Total Funds

£ Income from: Donations Other trading activities Investments

1 2 3

14,001,999 376,110

94,565

15,965 -

49

14,017,964 376,110

94,614

13,628,153 452,622

81,543 14,472,674 16,014 14,488,688 14,162,318 Charitable activities: Provision of Church Services Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

180,863 1,305

42,332 114,757

18,232 106,430

- - - - - -

180,863 1,305

42,332 114,757

18,232 106,430

161,313 2,055

45,984 226,933

20,239 128,950

463,919 - 463,919 585,474 Other 4 - - - 244,613 Total Income 14,936,593 16,014 14,952,607 14,992,405 Expenditure on: Raising funds 6 250,530 - 250,530 287,879 Charitable activities: Provision of Church Services Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

11,880,253 648,187

72,848 33,499

126,550 19,686

109,385

15,727 - - - - - -

11,895,980 648,187

72,848 33,499

126,550 19,686

109,385

11,827,967 589,912

68,660 42,238

237,349 22,792

126,527 5 12,890,408 15,727 12,906,135 12,915,445 Total expenditure Net gains on Investments 11

13,140,938 171,313

15,727 -

13,156,665 171,313

13,203,324 257,439

Net income before transfers 1,966,968 287 1,967,255 2,046,520 Gross transfers between funds 18 287 (287) - - Net movement of funds in year 1,967,255 - 1,967,255 2,046,520 Reconciliation of funds Total funds brought forward 54,271,760 - 54,271,760 52,225,240 Total funds carried forward 19 56,239,015 - 56,239,015 54,271,760 All income and expenditure derive from continuing activities.

FINANCIAL STATEMENTSGroup and Charity Balance Sheets28 February 2017


Group Charity

Notes 2017

£ 2016

£ 2017

£ 2016

£ Fixed assets Tangible assets Investments – programme related Investment in subsidiary undertaking

10 11 12

40,569,136 4,957,812

-

40,345,270 4,362,821

-

40,565,992 4,957,812

5,382

40,341,076 4,362,821

5,382 45,526,948 44,708,091 45,529,186 44,709,279 Current assets Stock Debtors Cash at bank and in hand

13

316,107 992,610

11,003,499

236,472 690,092

10,130,565

316,107 984,154

10,183,483

236,472 674,350

9,778,570 12,312,216 11,057,129 11,483,744 10,689,392 Creditors: Amounts falling due within one year 14 (748,190) (837,442) (738,474) (1,119,691) Net current assets 11,564,026 10,219,687 10,745,270 9,569,701 Total assets less current liabilities 57,090,974 54,927,778 56,274,456 54,278,980 Creditors: Amounts falling due after more than one year 15 (35,441) (7,220) (35,441) (7,220) Net assets 19 57,055,533 54,920,558 56,239,015 54,271,760 The funds of the group/charity Restricted income funds General unrestricted funds

18

- 57,055,533

- 54,920,558

- 56,239,015

- 54,271,760

57,055,533 54,920,558 56,239,015 54,271,760 Approved by the Trustees and authorised for issue on 18 December 2017 and signed on their behalf by Audrey Tung de Medeiros Chair of Trustees

FINANCIAL STATEMENTSGroup Statement of Cash Flowsfor the year ended 28 February 2017


2017 £

2016 £

NET CASH FLOW FROM OPERATING ACTIVITIES 2,513,244 2,818,114 CASH FLOWS FROM INVESTING ACTIVITIES Interest received Cash placed on fixed term deposit accounts > 90 days Net proceeds from sale of fixed assets Payments to acquire tangible fixed assets Loans to programme related investments Repayments of loans from programme related investments

57,731 (2,800,000)

18,633 (1,301,578)

(500,000) 113,206

61,605 (1,000,000)

2,467,493 (995,954)

(1,537,113) 135,017

NET CASH USED IN INVESTING ACTIVITIES (4,412,008) (868,952) CASH FLOWS FROM FINANCING ACTIVITIES Capital element of finance leases Interest element of finance leases

(27,518) (784)

(11,777) (553)

NET CASH USED IN FINANCING ACTIVITIES (28,302) (12,330) CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD (1,927,066) 1,936,832 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE REPORTING PERIOD 6,130,565 4,193,733 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 4,203,499 6,130,565 RECONCILIATION OF NET INCOME FOR THE REPORTING PERIOD TO NET CASH FLOW FROM OPERATING ACTIVITIES Net income for the reporting period Unrealised exchange gain Interest received Interest paid Gain on the sale of fixed assets Depreciation charges Impairment of Sister Church loan Conversion of loan to donation (Note 21) Increase in stock (Increase)/decrease in debtors (Decrease)/increase in creditors

2,134,975 (171,313)

(94,614) 784

(18,633) 1,150,540

- -

(79,635) (302,518) (106,342)

2,200,220 (257,439)

(81,544) 553

(244,524) 1,234,057

359,812 36,122

(89,850) (186,244) (153,049)

NET CASH FLOW FROM OPERATING ACTIVITIES 2,513,244 2,818,114 ANALYSIS OF CASH AND CASH EQUIVALENTS Fixed term deposit accounts < 90 days Cash at bank and in hand

3,275,000 928,499

5,385,000 745,565

Total cash and cash equivalents Fixed term deposits > 90 days

4,203,499 6,800,000

6,130,565 4,000,000

Cash at bank and in hand per balance sheet 11,003,499 10,130,565

FINANCIAL STATEMENTSCharity Statement of Cash Flowsfor the year ended 28 February 2017


2017 £

2016 £

NET CASH FLOW FROM OPERATING ACTIVITIES 2,045,223 2,653,142 CASH FLOWS FROM INVESTING ACTIVITIES Interest received Cash placed on fixed term deposit accounts > 90 days Net proceeds from sale of fixed assets Payments to acquire tangible fixed assets Loans to programme related investments Repayments of loans from programme related investments

57,731 (2,800,000)

18,633 (1,301,578)

(500,000) 113,206

61,605 (1,000,000)

2,467,493 (995,619)

(1,537,113) 135,017

NET CASH USED IN INVESTING ACTIVITIES (4,412,008) (868,617) CASH FLOWS FROM FINANCING ACTIVITIES Capital element of finance leases Interest element of finance leases

(27,518) (784)

(11,777) (553)

NET CASH USED IN FINANCING ACTIVITIES (28,302) (12,330) CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD (2,395,087) 1,772,195 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE REPORTING PERIOD 5,778,570 4,006,375 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 3,383,483 5,778,570 RECONCILIATION OF NET INCOME FOR THE REPORTING PERIOD TO NET CASH FLOW FROM OPERATING ACTIVITIES Net income for the reporting period Unrealised exchange gain Interest received Interest paid Gain on the sale of fixed assets Depreciation charges Impairment of Sister Church loan Conversion of loan to donation (Note 21) Increase in stock (Increase)/decrease in debtors (Decrease)/increase in creditors

1,967,255 (171,313)

(94,614) 784

(18,633) 1,149,490

- -

(79,635) (309,804) (398,307)

2,046,520 (257,439)

(81,544) 553

(244,524) 1,232,660

359,812 36,122

(89,850) (186,169) (162,999)

NET CASH FLOW FROM OPERATING ACTIVITIES 2,045,223 2,653,142 ANALYSIS OF CASH AND CASH EQUIVALENTS Fixed term deposit accounts < 90 days Cash at bank and in hand

3,275,000 108,483

5,385,000 393,570

Total cash and cash equivalents Fixed term deposits > 90 days

3,383,483 6,800,000

5,778,570 4,000,000

Cash at bank and in hand per balance sheet 10,183,483 9,778,570

FINANCIAL STATEMENTSPrincipal Accounting Policies


Basis of accounting The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities SORP (FRS 102), the Charities Act 2011 and applicable UK Accounting Standards. The principal accounting policies adopted in the preparation of the financial statements are set out below. The charity is an unincorporated registered charity and a public benefit entity. The charity’s registered office and principal place of business and its principal activities are set out on pages 8 and 9. The consolidated financial statements incorporate those of UCKG HelpCentre and Liberty Radio Limited. All financial statements are made up to 28 February 2017. All intra-group transactions, balances and unrealised gains on transactions between group entities are eliminated on consolidation. The group has prepared detailed budgets and cash flow forecasts which indicate that the group has sufficient resources to meet its liabilities as they fall due and on this basis, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. Early adoption of Charities SORP (FRS 102) The charity has early adopted the Charities SORP (FRS 102) issued in July 2014, rather than applying the Charities 2005 SORP which has been withdrawn but is still referred to in the extant Charities (Accounts and Reports) Regulations 2008. This departure has been necessary for the financial statements to show a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice effective for accounting periods beginning on or after 1 January 2015. Tangible fixed assets and depreciation Tangible fixed assets costing more than £5,000 are capitalised and included at cost less any necessary provision for impairment. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost over their expected useful economic lives as follows: Freehold properties 2% per annum straight line Leasehold improvements Over the term of lease Office and computer equipment 25% per annum straight line Motor vehicles 25% per annum straight line Fixtures and fittings 25% per annum straight line Plant and machinery 25% per annum reducing balance Impairments Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards. Where an impairment review is required, the charity assesses the carrying amount of the relevant assets to confirm that this does not exceed the higher of net realisable value and value in use. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of net realisable value and value-in-use, are recognised as impairments in the Statement of Financial Activities. If, after an impairment loss has been recognised, the recoverable amount of a fixed asset increases because of a change in the circumstances giving rise to the original impairment, the resulting reversal of the impairment loss is recognised in the Statement of Financial Activities (SOFA) to the extent that it increases the carrying amount of the fixed asset up to the amount that it would have been had the original impairment not occurred. Programme related investments Programme related investments, made directly in pursuit of the charity’s charitable objectives, are included in the balance sheet at the amount advanced, plus accrued interest, less any impairments and amounts repaid in respect of these loans.


Income Income in the form of donations from church services and appeal donations is recognised upon receipt and, unless the donor specifies a specific purpose for the donation, is used or retained for the general purpose of the charity. Any gift aid reclaims relating to these donations are recognised on an accruals basis. Income from the bookshop and Delight Café is recognised as earned (as related goods and services are provided). Investment income is recognised on a receivable basis, rental income is recognised on an accruals basis. Income from charitable activities (church services and CBC - Children’s Biblical Centre) is recognised on a receivable basis. Volunteers and donated services and assets No amounts are included in the Statement of Financial Activities in respect of the value of services donated by volunteers. Further details of the contribution made by volunteers can be found in the Trustees’ Report. Assets donated for use by the charity are capitalised and recognised as income when they are receivable. Where property is donated, an amount equal to an independent valuation is added to tangible fixed assets and an identical amount credited to the Statement of Financial Activities. Donations or gifts-in-kind are included in the Statement of Financial Activities at estimated fair value. Expenditure Expenditure is recognised when a liability is incurred. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Costs of raising funds are those costs incurred in attracting income (primarily donations), and those incurred in trading activities that raise funds, where applicable. Charitable activities include expenditure associated with the provision of church services, support for overseas churches, the operation of the CBC, training activities, Pilgrimages, the Delight Café and the bookshop. Both the direct costs and support costs relating to these activities are included. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources eg staff time. Costs of short term employee benefits are recognised as a liability within the financial statements. The charity’s holiday year ends at the reporting date and employees are not entitled to carry forward any unused holiday. Irrecoverable VAT Irrecoverable VAT is charged against the category of expenditure for which it was incurred. Leases Where assets are financed under leasing and hire purchase agreements that give rights approximating to ownership, the amount representing the outright purchase price of such assets is capitalised under tangible fixed assets, and the corresponding leasing commitments are shown as obligations to the lessor. The relevant assets are depreciated in accordance with the group’s depreciation policy. Net finance charges, calculated on a reducing balance basis, are included in interest charges. Where assets are financed under leasing agreements that do not give rights approximating to ownership, rent is recognised in the Statement of Financial Activities on a straight line basis over the term of the lease agreement. Benefits, such as rent-free periods, received and receivable as an incentive to enter into an operating lease are also spread on a straight line basis over the lease term. Foreign currencies Monetary assets and liabilities denominated in foreign currencies are converted at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are converted into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.


Stock Stock is valued at the lower of cost and net realisable value. Funds The charity’s restricted funds are to be used for specific purposes as laid down by the donor or where funds have been raised for a specific purpose. Expenditure, which meets these criteria, is charged to the fund. See note 18 for further details. All other funds are unrestricted income funds. The reserves policy is set out in the Trustees’ Report. Cash and cash equivalents These exclude deposits of more than three months or 90 days. Financial instruments The group has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102, in full, to all of its financial instruments. The group only has financial instruments that are considered to be basic. Financial assets Trade and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the SOFA for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the SOFA. Financial liabilities Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: As required by Charities SORP (FRS 102) the Trustees review all relevant assets for indicators of impairment. The principal class of asset relevant is the programme related investments – sister church loans (Note 11). Where these loans are not performing in accordance with the underlying loan agreements, an assessment is carried out as to the recoverability of amounts due to the charity. This assessment includes reviewing up to date financial information and other factors impacting on the ability of amounts to be repaid. Whether or not an impairment provision is required is determined on this basis.

FINANCIAL STATEMENTSNotes to the Financial Statementsfor the year ended 28 February 2017


1 INCOME FROM DONATIONS GROUP AND CHARITY

2017

£ 2016

£ Donations from Church Services

Gift Aid reclaim VYG Youth Group Income Media Sponsorship (Restricted Income) Leeds appeal donations (Restricted Income) Sheffield appeal donations (Restricted Income) Cyprus appeal donations (Restricted Income) Manchester appeal donations (Restricted Income)

12,405,064 1,558,317

38,618 13,858

- 287

- 1,820

11,797,029 1,627,626

47,244 48,165

438 3,921 9,103

94,627 14,017,964 13,628,153

2 INCOME FROM OTHER TRADING ACTIVITIES

GROUP AND CHARITY

2017

£ 2016

£ Fundraising

Rental income Advertising income Other income

339,995 32,507

185 3,423

400,343 46,559

153 5,567

376,110 452,622 3 INCOME FROM INVESTMENTS

GROUP AND CHARITY

2017

£ 2016

£ Bank interest

Interest receivable on programme related investments 42,916 51,698

43,850 37,693

94,614 81,543 4 OTHER INCOME

GROUP AND CHARITY

2017

£ 2016

£ Gain on sale of property - 244,613

- 244,613


5 ANALYSIS OF CHARITABLE EXPENDITURE – GROUP

Direct

costs £

Support costs

£

Total 2017

£

Total 2016

£ Provision of Church Services

Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

9,702,189 637,296

63,665 26,366

120,338 14,240

103,939

2,026,071 10,891

9,183 7,133 6,212 5,446 5,446

11,728.260 648,187

72,848 33,499

126,550 19,686

109,385

11,674,267 589,912

68,660 42,238

237,349 22,792

126,527 10,668,033 2,070,382 12,738,415 12,761,745

ANALYSIS OF CHARITABLE

EXPENDITURE – CHARITY

Direct

costs £

Support costs

£

Total 2017

£

Total 2016

£ Provision of Church Services

Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

9,869,909 637,296

63,665 26,366

120,338 14,240

103,939

2,026,071 10,891

9,183 7,133 6,212 5,446 5,446

11,895,980 648,187

72,848 33,499

126,550 19,686

109,385

11,827,967 589,912

68,660 42,238

237,349 22,792

126,527 10,835,753 2,070,382 12,906,135 12,915,445

ALLOCATION OF SUPPORT COSTS –

GROUP AND CHARITY

The charity allocates its support costs as shown in the table below and then further apportions those

costs between the seven charitable activities undertaken, where applicable. Support costs are allocated on a basis consistent with the use of resources. Staff costs are split according to head count and department. Utilities are allocated according to the percentage use of the cost concerned and audit fees are classified as governance.

Support Costs Charitable

activities £

Raising funds

£

Governance

£

Total 2017

£

Total 2016

£ Staff costs

Electricity and gas Telephone External audit fees Other non-audit fees

1,319,251 402,132

66,296 -

10,418

- 2,249 2,050

- -

240,553 - -

31,732 -

1,559,804 404,381

68,346 31,732 10,418

1,457,453 404,793

67,019 30,500 13,010

2017: 1,798,097 4,299 272,285 2,074,681 1,972,775 2016: 1,700,142 4,516 268,117 1,972,775

The total amount of stocks recognised as an expense in the year was £48,986 (2016: £145,646).


6 EXPENDITURE ON RAISING FUNDS GROUP AND CHARITY

2017

£ 2016

£ Staff costs

Fundraising expenses Depreciation Support costs

230,988 6,087 9,156 4,299

253,114 19,720 10,529

4,516 250,530 287,879

7 EMPLOYEES

GROUP AND CHARITY

2017

No. 2016

No. The average number of employees during the year

was: Church Services – Ministers of Religion Church Services – Other Church Administration Gift Aid Training Centre Bookshop Governance Fundraising Graphics/Webteam Property/Legal/Press Community Outreach TV/Production Helpline

93 25 18

2 1 4

11 1

17 4 1

28 2

91 22 20

2 1 4

12 1

20 5 1

27 1

207 207 2017

£ 2016

£ Staff costs for above persons:

Wages and salaries Social security costs Pension costs

3,137,823

221,485 9,500

2,996,743

207,393 8,609

3,368,808 3,212,745 Termination payments paid in full in the year were £3,117 (2016: nil). These are included in wages

and salaries above. 2017

No. 2016

No. The number of employees with emoluments over

£60,000 were:

£60,000 - £69,999 1 - The total remuneration (including employer’s national insurance and employer’s pension payments)

of the 4 pastoral staff / employees and 5 trustees (2016: 5 pastoral staff / employees and 6 trustees) who are considered to be key management was £178,341 (2016: £229,041).


8 TRUSTEES’ REMUNERATION

No trustee received remuneration for their services as trustees (2016: none). One trustee received

remuneration of £33,810.96 for their services as Deacon (2016: £51,361.24). These payments were made according to a provision stated in the Charity’s constitution. No spouses of trustees (2016: 2) were paid for administrative and pastoral duties (2016: £48,478.36). These payments were made according to a provision stated in the Charity’s constitution. During the year, no trustees (2016: none) were reimbursed travel or incidental expenses incurred in respect of their services.

9 TAXATION

As a registered charity, tax exemption applies to the income arising and expended on charitable

activities.


10 TANGIBLE FIXED ASSETS – GROUP

Freehold land and buildings

£

Leasehold improve-

ments £

Motor vehicles

£

Plant and machinery

£

Office and computer

equipment £

Furniture and

fittings £

Total £

Cost 1 March 2016 Additions Disposals

46,247,998 718,817

-

2,177,373 507,256

-

227,083 81,926

(12,720)

71,308 - -

1,704,869 66,407

(97,168)

224,877 -

(5,140)

50,653,508 1,374,406 (115,028)

28 February 2017 46,966,815 2,684,629 296,289 71,308 1,674,108 219,737 51,912,886

Depreciation 1 March 2016 Charged in year Disposals

7,344,932 763,021

-

1,080,529 172,800

-

110,938 61,137

(12,720)

67,503 951

-

1,490,106 142,022 (97,168)

214,230 10,609 (5,140)

10,308,238 1,150,540 (115,028)

28 February 2017 8,107,953 1,253,329 159,355 68,454 1,534,960 219,699 11,343,750

Net book value

28 February 2017 38,858,862 1,431,300 136,934 2,854 139,148 38 40,569,136

29 February 2016 38,903,066 1,096,844 116,145 3,805 214,763 10,647 40,345,270 The trustees are of the opinion that the market value of properties at 28 February 2017 would

significantly exceed the net book values included in the financial statements, but they are unable to quantify this excess in the absence of a professional valuation, the costs of which are not considered justifiable in view of the charity’s intention to retain ownership of its existing properties for the provision of church services for the foreseeable future. The net book value of motor vehicles for both the group and the charity includes £68,459 (2016: £23,301) in respect of assets held under finance leases. The depreciation charge for the year on these assets was £27,671 (2016: £9,464).

TANGIBLE FIXED ASSETS – CHARITY

Freehold land and buildings

£

Leasehold improve-

ments £

Motor vehicles

£

Office and computer

equipment £

Furniture and fittings

£ Total

£

Cost 1 March 2016 Additions Disposals

46,247,998 718,817

-

2,177,373 507,256

-

227,083 81,926

(12,720)

1,703,722 66,407

(97,168)

222,005 -

(5,140)

50,578,181 1,374,406 (115,028)

28 February 2017 46,966,815 2,684,629 296,289 1,672,961 216,865 51,837,559

Depreciation 1 March 2016 Charged in year Disposals

7,344,932 763,021

-

1,080,529 172,800

-

110,938 61,137

(12,720)

1,489,295 141,938 (97,168)

211,411 10,594 (5,140)

10,237,105 1,149,490 (115,028)

28 February 2017 8,107,953 1,253,329 159,355 1,534,065 216,865 11,271,567

Net book value

28 February 2017 38,858,862 1,431,300 136,934 138,896 - 40,565,992

29 February 2016 38,903,066 1,096,844 116,145 214,427 10,594 40,341,076


11 PROGRAMME RELATED INVESTMENTS

The group/charity has previously made loans to its sister churches in Ireland, Belgium, Sweden,

Nigeria, Tanzania, Jamaica and Mauritius in line with its charitable objectives. It has made a further loan to its sister church in Mauritius during this financial year. The loans bear interest at 1% per annum apart from Ireland, which is at 2% per annum. Further details are given in note 21.

2017

£ 2016

£ Cost

At 1 March 2016 New loans issued Repayments Exchange rate movement Increase in interest receivable Loan converted to donation (Note 21)

4,722,633

500,000 (113,206)

287,615 36,884

-

3,079,281 1,537,113 (135,017)

257,439 19,939

(36,122) At 28 February 2017 5,433,926 4,722,633

Impairment

At 1 March 2016 Impairments in the year Exchange rate movement

359,812

- 116,302

-

359,812 -

At 28 February 2017 476,114 359,812 Carrying value

28 February 2017 4,957,812 4,362,821 29 February 2016 4,362,821 3,079,281

Loan terms are variable ranging up to a maximum of 25 years. The majority of loans are denominated in foreign currency and therefore subject to currency fluctuations. The exchange rate movement is shown in the Statement of Financial Activities under net gains on investments.

12 TRADING SUBSIDIARY

The charity’s trading subsidiary Liberty Radio Limited, is wholly owned by the charity and is

incorporated in England and Wales and operates as a radio broadcaster (Company Registration no. 02803478). The charity uses Liberty Radio Limited’s satellite licence to broadcast the message of the Gospel. Liberty Radio Limited provides airtime for the broadcasting of religious programmes of the UCKG HelpCentre and also production facilities to enable the charity to carry out its charitable objectives. The charity acquired the entire capital of 11,445,439 ordinary shares of £1 each on 28 March 2006 for a consideration of £5,382 from Universal Difusão (its Portuguese sister church). A summary of the trading results for the year ended 28 February 2017 is shown overleaf.


12 TRADING SUBSIDIARY (continued)

2017

£ 2016

£ Turnover

Cost of sales 245,023 (65,757)

233,463 (67,635)

Gross profit 179,266 165,828 Administrative expenses (11,546) (12,128)

Surplus for the year 167,720 153,700

Net assets at 1 March 654,177 500,477 Net assets at 28 February 2017 / 29 February 2016 821,897 654,177

27 Properties Limited (Company Registration no. 08788057) is also a wholly owned subsidiary of the charity and is incorporated in England and Wales and is dormant. Its net assets at 28 February 2017 and 29 February 2016 were £1.

13 DEBTORS

Group Charity 2017

£ 2016

£ 2017

£ 2016

£ Trade debtors

VAT recoverable Prepayments and accrued income Other debtors

19,771 12,915

826,001 133,923

43,584 5,202

546,850 94,456

19,771 12,915

817,545 133,923

31,584 5,202

543,108 94,456

992,610 690,092 984,154 674,350

14 CREDITORS: amounts falling due within one year

Group Charity 2017

£ 2016

£ 2017

£ 2016

£ Trade creditors

Obligations under finance leases and HP contracts (note 17) Other taxes and social security Other creditors Accruals and deferred income Amounts received from subsidiary undertaking

357,744

26,672 67,201 18,619

277,954

-

432,335

9,582 45,498 31,764

318,263

-

355,113

26,672 67,201 16,285

273,203

-

422,802

9,582 45,498 29,097

312,265

300,447 748,190 837,442 738,474 1,119,691


15 CREDITORS: amounts falling due after more than one year

Group Charity 2017

£ 2016

£ 2017

£ 2016

£ Obligations under finance leases

and HP contracts (note 17)

35,441

7,220

35,441

7,220 35,441 7,220 35,441 7,220

16 FINANCIAL INSTRUMENTS

Group Charity FINANCIAL ASSETS 2017

£ 2016

£ 2017

£ 2016

£ Programme related instruments –

At cost (less impairment) plus accrued interest Financial assets at amortised cost

4,957,812

153,694

4,362,821

138,040

4,957,812

153,694

4,362,821

126,040 5,111,506 4,500,861 5,111,506 4,488,861 Group Charity FINANCIAL LIABILITIES 2017

£ 2016

£ 2017

£ 2016

£ Financial liabilities at amortised

cost

713,571

799,164

703,855

1,081,413 713,571 799,164 703,855 1,081,413


17 LEASE COMMITMENTS

At 28 February 2017, the charity and the group had annual commitments made under non-

cancellable operating leases as set out below:

Land and buildings

The total future minimum lease payments are payable:

2017 £

2016 £

Less than one year Between one and five years After five years

647,357 2,338,743 2,389,948

737,361 2,273,209 2,544,594

5,376,048 5,555,164

Other


2017 £

2016 £

Less than one year Between one and five years

145,106 200,697

135,980 199,149

345,803 335,129

The annual cost charged in this year in respect of operating lease rentals was £901,059 (2016:

£780,455) for Land and Buildings and £169,505 (2016: £162,688) for Other Leases.

Obligations under finance lease and hire purchase contracts:

2017 £

2016 £


Less than one year (note 14) Between one and five years (note 15)

26,672 35,441

9,582 7,220

62,113 16,802

18 RESTRICTED FUNDS

As at 1 March

2016 £

Income £

Expenditure £

Transfers £

As at 28 February

2017 £

Media Sponsorship Sheffield Manchester

- - -

13,907 287

1,820

(13,907) -

(1,820)

- (287)

-

- - -

- 16,014 (15,727) (287) -

The Media Sponsorship fund is a specific appeal to support the TV and radio programmes and the

church publications. These monies have been fully spent for the 2016-17 financial year.


18 RESTRICTED FUNDS (continued)

The Sheffield appeal is a specific appeal towards the refurbishment of our new Sheffield premises

that were purchased in January 2015. These monies have been fully spent in this financial year and are included within Fixed Asset additions in Note 10 (page 41); therefore a transfer has been made to reflect the restriction being fulfilled. This fund is now closed. The Manchester appeal is a specific appeal towards the refurbishment of our new Manchester premises that were acquired in November 2015. These monies have been fully spent in this financial year.

RESTRICTED FUNDS

As at 1 March

2015 £

Income £

Expenditure £

Transfers £

As at 29 February

2016 £

Media Sponsorship Leeds Sheffield Cyprus Manchester

- -

5,833 - -

48,830 438

3,921 9,103

94,627

(48,830) (438)

- (9,103)

-

- -

(9,754) -

(94,627)

- - - - -

5,833 156,919 (58,371) (104,381) -

The Leeds appeal is a specific appeal towards the refurbishment of our new Leeds premises.

These monies were fully spent in the 2015-16 financial year and the fund is now closed. The Cyprus appeal is a specific appeal to help with preliminary expenses for our sister church in Cyprus, which opened in May 2015. This money was fully spent in 2015/16. (See Note 21.)


19 ANALYSIS OF GROUP/CHARITY NET ASSETS BY FUND

GROUP 2016-17

Unrestricted Funds

£

Restricted Funds

£

Total Funds

£

Fixed Assets Investments-Programme Related Net Current Assets Obligations under finance leases and HP contracts

40,569,136 4,957,812

11,564,026

(35,441)

- - -

-

40,569,136 4,957,812

11,564,026

(35,441)

Total 57,055,533 - 57,055,533

CHARITY 2016-17

Unrestricted Funds

£

Restricted Funds

£

Total Funds

£

Fixed Assets Investments-Programme Related Investment in subsidiary undertaking Net Current Assets Obligations under finance leases and HP contracts

40,565,992 4,957,812

5,382 10,745,270

(35,441)

- - - -

-

40,565,992 4,957,812

5,382 10,745,270

(35,441)

Total 56,239,015 - 56,239,015

GROUP 2015-16

Unrestricted Funds

£

Restricted Funds

£

Total Funds

£

Fixed Assets Investments-Programme Related Net Current Assets Obligations under finance leases and HP contracts

40,345,270 4,362,821

10,219,687

(7,220)

- - -

-

40,345,270 4,362,821

10,219,687

(7,220)

Total 54,920,558 - 54,920,558

CHARITY 2015-16

Unrestricted Funds

£

Restricted Funds

£

Total Funds

£

Fixed Assets Investments-Programme Related Investment in subsidiary undertaking Net Current Assets Obligations under finance leases and HP contracts

40,341,076 4,362,821

5,382 9,569,701

(7,220)

- - - -

-

40,341,076 4,362,821

5,382 9,569,701

(7,220)

Total 54,271,760 - 54,271,760


20 CAPITAL AND OTHER COMMITMENTS

There were no property repairs/refurbishment commitments authorised by the Trustees and

contracted at 28 February 2017 (2016: £2,325,253) and £525,061 authorised but not yet contracted (2016: £116,512): totalling £525,061 at 28 February 2017 (2016: £2,441,765).

21 RELATED PARTY AND SISTER CHURCH TRANSACTIONS

At the year-end, the following loans were outstanding from sister churches and are included within

programme related investments (fixed assets) as required under FRS 102:

SISTER CHURCHES

2017 £

2016 £

Ireland Belgium Nigeria (after impairment of £359,812 during 2016 – included in Support for Overseas Churches in note 5) Tanzania Jamaica Mauritius

1,552,617 901,086

-

409,763 67,714

2,026,632

1,485,785 871,530

64,379

364,277 68,820

1,508,030

4,957,812 4,362,821

Included within programme related investments are amounts receivable from sister churches in

respect of interest as follows: 2017

£ 2016

£

Ireland Belgium Nigeria Tanzania Jamaica Mauritius

143,318 64,543

- 8,921

671 26,617

119,545 59,802 21,957

4,400 681

8,014

Donations to sister churches during the year amounted to £637,296 (2016: £219,375): £31,636 to

Dubai (2016: £47,257), £48,341 to East Timor (2016: £43,106), nil to Sweden (2016: £36,122 comprising loan and accrued interest converted to a donation in the year), £88,605 to Cyprus (2016: £35,187), £353,522 to Israel (2016: £30,893), £100,000 to Jamaica, £11,278 to Malta and a total of £3,914 (2016: £26,810) sent in books to various sister churches. RELATED PARTIES During the year the charity has purchased advertising services of £245,023 (2016: £233,463) from its trading subsidiary Liberty Radio Limited. During the year the charity paid £300,447 to Liberty Radio in relation to gift aid distributions that became repayable. Liberty Radio Limited operates from premises, which are provided rent-free by Record TV Network Limited. During 2016/17 the charity purchased £498,843 (2016: £492,209) of programmes and advertisements from Record TV Network Limited. One of the trustees, Rui Pedro da Cunha Silva is head of Universele Kerk van het Koninkrijk Gods, which is the sister church in Belgium. The transactions between the charity and the sister church in Belgium are as follows: Repayments of the loan made during the year were !45,000 (2016: !105,000). Interest incurred on the loan in 2016-17 is !2,478.29 (2016: !nil). The amount outstanding at the year end is as shown above and in Note 11. During the year book sales to sister churches totalled £18,832 (2016: £7,810). Amounts sold to individual churches are not considered material.


22 GROUP STATEMENT OF FINANCIAL ACTIVITIES for the year ended 29 February 2016

Unrestricted Funds

£

Restricted Funds

£

2016 Total Funds

£

Income from:

Donations Other trading activities Investments

13,471,899 452,622

80,878

156,254 -

665

13,628,153 452,622

81,543

14,005,399 156,919 14,162,318

Charitable activities Provision of Church Services Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

161,313

2,055 45,984

226,933 20,239

128,950

- - - - - -

161,313

2,055 45,984

226,933 20,239

128,950

585,474 - 585,474

Other 244,613 - 244,613

Total Income 14,835,486 156,919 14,992,405

Expenditure on:

Raising funds 287,879 - 287,879

Charitable activities Provision of Church Services Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

11,615,896

589,912 68,660 42,238

237,349 22,792

126,527

58,371

- - - - - -

11,674,267

589,912 68,660 42,238

237,349 22,792

126,527

12,703,374 58,371 12,761,745

Total expenditure Net gains on Investments

12,991,253 257,439

58,371 -

13,049,624 257,439

Net income before transfers 2,101,672 98,548 2,200,220

Gross transfers between funds 104,381 (104,381) -

Net movement of funds in year 2,206,053 (5,833) 2,200,220

Reconciliation of funds

Total funds brought forward 52,714,505 5,833 52,720,338

Total funds carried forward 54,920,558 - 54,920,558

All income and expenditure derive from continuing activities.


23 CHARITY STATEMENT OF FINANCIAL ACTIVITIES for the year ended 29 February 2016

Unrestricted Funds

£

Restricted Funds

£

2016 Total Funds

£

Income from:

Donations Other trading activities Investments

13,471,899 452,622

80,878

156,254 -

665

13,628,153 452,622

81,543

14,005,399 156,919 14,162,318

Charitable activities Provision of Church Services Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

161,313

2,055 45,984

226,933 20,239

128,950

- - - - - -

161,313

2,055 45,984

226,933 20,239

128,950

585,474 - 585,474

Other 244,613 - 244,613

Total Income 14,835,486 156,919 14,992,405

Expenditure on:

Raising funds 287,879 - 287,879

Charitable activities Provision of Church Services Support for Overseas Churches Training Centre Children’s Biblical Centre Bookshop Delight Café Pilgrimage to Solomon’s Temple

11,769,596

589,912 68,660 42,238

237,349 22,792

126,527

58,371

- - - - - -

11,827,967

589,912 68,660 42,238

237,349 22,792

126,527

12,857,074 58,371 12,915,445

Total expenditure Net gains on Investments

13,144,953 257,439

58,371 -

13,203,324 257,439

Net income before transfers 1,947,972 98,548 2,046,520

Gross transfers between funds 104,381 (104,381) -

Net movement of funds in year 2,052,353 (5,833) 2,046,520

Reconciliation of funds

Total funds brought forward 52,219,407 5,833 52,225,240

Total funds carried forward 54,271,760 - 54,271,760

All income and expenditure derive from continuing activities.

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