annualreport Church Army’s report and accounts for the year ending 31 March 2013
Who is Church Army?
Our mission
Church Army is a mission-focused community of people who are transforming lives and neighbourhoods through the work of evangelists, staff and supporters. We are committed to sharing the Christian faith through words and action in a variety of contexts across the United Kingdom and Ireland. Our evangelists work beyond church buildings among some of the most broken, rejected and hurting people in society. We are also committed to building new forms of Christian community to reach people who have little or no experience of church.
To enable people to come to a living faith in Jesus Christ.
Working in the margins
• To base our ministry and decision making in prayer. • To live Christ-centred lives and ministry through dispersed community lifestyle. • To be accountable to God and to one another. • To be expectant and take risks for the gospel. • To empower others. • To value all people as equally significant.
Impacting lives in challenging situations is long-term work and requires a special commitment and focus. Here are some of the areas we work in, or have worked in recently: • Homelessness • Inner city housing estates • Self-harm prevention • Night-time street ministry • Local church ministry • Older people • Community allotments • Helping women involved in prostitution • Children and young people • Schools outreach • Drug and alcohol prevention • Bus-based youth and community projects • Church planting and fresh expressions • Family breakdown prevention
Other key work includes: • Research in evangelism • Training evangelists • Developing Centres of Mission • Xplore gap year programme for young adults • Developing online evangelism resources • Inspiring the church into evangelism
Our vision We seek to be a leading organisation in the training, equipping and deploying of evangelists to develop appropriate and relevant forms of Christian community for pioneering situations.
Our values
Contents 4
Welcome from the Chair and Chief Executive
5
Report of the trustees
27 Board members and officers 29 Auditors’ report 31 Statement of financial activities 32 Balance sheets 33 Cash flow statement
50 Get involved
Church Army Annual Report 2012/2013
contents
34 Notes
3
Welcome from the Chair and Chief Executive
welcome
We are delighted to introduce you to our Annual Report and to share with you how we’ve impacted the lives of thousands of people throughout the United Kingdom and Ireland with the Good News of Jesus Christ this past financial year. During this year under review, one of our main focuses has been the implementation of our DARE strategy which we launched in 2011; doing evangelism, advocating evangelism, resourcing evangelism and enabling evangelism. Therefore, our staff and evangelists have been working hard as they’ve endeavoured to convert this strategy into operational reality – particularly in relation to encouraging and challenging the wider church in evangelism. Yet, it is the individual lives changed that speak best of Church Army’s impact during 2012/2013. It is their names and faces, along with the statistics and finances, which will give you a real insight into our work. People like Jenny, from The Amber Project in Cardiff, who has struggled during her teenage years with self-harm but thanks to our support has found hope (page 7). Or Dot who lives on the deprived Flaxley Road housing estate in Selby and has come to faith through our Centre of Mission (page 8). We’ve also remained committed to resourcing and enabling others to share their faith through words and action; particularly through our Mission-Based Training Programme, Xplore gap year and volunteering. Currently we have more than 1,000 volunteers working alongside our evangelists in their local communities. We would like to take this opportunity to express our sincere thanks to our thousands of supporters and volunteers who selflessly give their time, money and prayer to make our work possible. And we’re pleased to say, that despite the tough economic climate, our donation income from individuals and churches has remained steady, as you can see from our financial review on page 22. However, there
Front cover image: Josh at our Craigavon Centre of Mission parent and toddler group in Northern Ireland.
4
Church Army Annual Report 2012/2013
are of course significant challenges, and like many other charities we have seen a drop in our legacy income from £692,000 to £550,000 and so we would like to encourage you to consider Church Army in your Will. Our fundraising team continue to work hard to promote the benefits of leaving a legacy to our supporters. In addition, we’ve made significant gains on our investment revaluations in the last quarter of the year, which ended 67 per cent up on the previous year. We’ve also worked hard to reduce our costs, and following a staff restructure at our central offices in Sheffield, we’ve made savings of £300,000 going forward for 2013/2014. Therefore, as we look ahead to the coming year, we hope and pray that our DARE strategy continues to be effectively implemented so that thousands more people on the margins of our society can be reached with the Good News about Jesus Christ. Thank you for standing with us in all of this. Yours in Christ,
The Rt Rev Stephen Cottrell, Canon Mark Russell, Bishop of Chelmsford and Chief Executive Chair of Church Army
Our DARE strategy: doing, advocating, resourcing and enabling evangelism In last year’s Annual Report 2011/2012, we introduced the DARE strategy which is being implemented across Church Army over the coming three years. DARE stands for; doing evangelism, advocating evangelism, resourcing evangelism and enabling evangelism. As we’ve reflected back on our charism and history and how it should be impacting our work today, we realised the importance of not only doing evangelism ourselves, but training and resourcing the wider church to undertake it in their own contexts. We will use both our central resources and Centres of Mission to achieve this, working in partnership with parishes and dioceses. The following section of this Annual Report will look at each of the four DARE objectives and how we are fulfilling them.
Evangelist, Tim Smith, with Saba and her family at our Sheffield Centre of Mission
report of the trustees
Report of the Trustees
Our Prayer Care outreach to care homes in Thanet, Kent Church Army Annual Report 2012/2013
5
report of the trustees
Objective 1: Doing evangelism We are committed to developing our Centres of Mission, our homeless projects and evangelists working across the United Kingdom and Ireland to do, and support others in mission. Currently Church Army has 285 evangelists and 148 retired evangelists. Here are examples and stories of how we are fulfilling this objective:
The Scottish Borders Centre of Mission: The Grafted Project The Grafted Project, based in Newcastleton, was set up eight years ago to work with people with chaotic lifestyles through outdoor activities. The project has since grown and formed Refresh Community Church. Grafted’s ministries include: children’s and youth work, men’s outreach, community drop-ins for those dealing with substance and alcohol misuse, and outreach to the elderly. The project is currently developing a mobile mission using the Grafted minibus, which will set up in towns and villages in the area offering refreshments and the chance for people to hear the gospel and take away Christian literature and DVDs. Grafted is led by Evangelist, Mick McTighe, and supported by staff, Julie Thompson and Evangelist-in-Training, Paul Smith, who aim to share the Good News about Jesus Christ with those they meet and build new forms of Christian community. Grafted works alongside the local churches and is supported by a team of more than 12 volunteers. One of the key focuses of the Grafted Project is the Windows of Time drop-ins held each week in the Scottish Border towns of Hawick and Galashiels, where people struggling with issues such as loneliness, depression, and substance misuse can access support.
Paul Smith (right) leading an away day for those who attend the community drop-ins
6
Church Army Annual Report 2012/2013
Kaz shares her experience of the drop-ins and how they have helped her: “All of us that use the services of the Window of Time drop-ins are in some way struggling and therefore any extra help is always welcome. I had seen leaflets at various places for Grafted, but felt I didn’t quite fit the profile! One of my counsellors suggested that I go to a drop-in meeting which indeed turned out to be the Grafted meeting. Before waxing lyrical about all the benefits that I found, let’s get the monster out of the closet. Yes, it is run by the Church Army but there is no religion forced upon you. It’s quite simply a place to find help and more importantly hope. It’s a chance to get together with other people who are willing to open up and share not just problems but triumphs too. “The key to all this lies in the non-judgmental attitude of the volunteers who give up time and patience to encourage positivity and well-being. Self-expression is a given factor as is acceptance of human frailties and fallibilities, all done in a non-intrusive way. As well as spiritual health, there is practical help readily available and lunch cooked by volunteers from the church.” To find out more visit www.churcharmy.org.uk/scottishborderscom
n
Grafted’s children and youth on an adventure camp
The Amber Project: Cardiff
Jenny*, who is 25 years old, has struggled with self-harming since she was a teenager – a problem which, according to research from the Mental Health Foundation, affects at least one in 15 young people in the United Kingdom. People can hurt themselves in all sorts of different ways and for all sorts of different reasons. But in Jenny’s case, physically harming herself was a way of coping with emotional pain and distress. She says: “Young people who self-harm can often feel very isolated, alone and misunderstood. They may feel judged by their friends and different from other people. Personally, throughout my teenage years, I spent most of my time trying to hide my problem. It was like constantly wearing a mask.” However, thanks to the staff and volunteers at the Amber Project in Cardiff, Jenny has received counselling and one-to-one support. Alongside this, she has had the opportunity to explore difficult issues within the safe environment of theatre workshops and to increase her feelings of self-worth and confidence through activity-based workshops such as craft and cookery. Jenny also got involved in the project’s annual pantomime where she was part of the backstage team. These activities have allowed Jenny to meet with other young people who have
experienced self-harming within a space that feels safe, warm and welcoming. This has helped her feel accepted and given her time to relax with people who understand her. Seeds of hope are gradually being sown back into Jenny’s life.
report of the trustees
A drama workshop
She says: “The Amber Project has played a major part in my life and at times has kept me alive. I know that sounds dramatic but, during the rough times, the staff have really been there for me. I remember waking up in hospital feeling really scared after taking an overdose, but Caryl from the project was right there, sitting beside me. Over the years I’ve benefited from the project’s counselling service and have been involved in its workshops. “The great thing about the project is that everyone treats you as an individual rather than a problem to be solved. Its work really is vital as there’s nothing else like it in the area for young people.” Health Minister, Anne Milton, revealed figures in December 2011 showing that over the past 10 years the number of children and young people under the age of 24 who have been hospitalised because of self-harm has risen by 68 per cent. To find out more visit www.amberproject.org.uk
n
* Name changed
Church Army Annual Report 2012/2013
7
report of the trustees
The Selby Centre of Mission: North Yorkshire
JAFFA after school club Six years ago, Evangelist Richard Cooke and his family moved to the Flaxley Road Estate in Selby, North Yorkshire – a place where there was no Christian witness and where residents often lacked hope for the future. Unemployment, family breakdown and debt problems impacted the community as people searched for shortterm solutions to fill the emptiness in their lives.
Stories from the community
Yet Richard and the local church had a vision to establish a new Christian community on the estate and with the help of a committed group of Christians from St James’ Church, The Edge Community was formed.
She said: “Richard and Neil are real assets to the community and have offered many families emotional support and parenting advice. They’ve also organised day trips for lowincome families, which have provided people with quality time to enjoy together. The Edge Community has helped people feel fulfilled and as if they belong – it has definitely had a positive effect on the area.”
Richard said: “When The Edge Community was first launched there were just 14 of us, seven adults and seven children, and we would meet together in the children’s centre on the estate. Connecting with the community, serving people practically and building relationships were our initial aims. “Since then, and more recently with the help of Evangelist Neil Walpole who joined us in 2011, we have set up a parents and toddlers group, a youth group, weekly assemblies and an after-school club in the local primary school, a parenting drop-in, holiday clubs and debt advice sessions. Through all of this we have been able to share our faith through words and action, and have seen our weekly church gatherings slowly grow.” To find out more visit www.churcharmy.org.uk/selbycom
n
8
Church Army Annual Report 2012/2013
Becky Railton, Home/School Support Worker for North Yorkshire Education, works with Richard and Neil at Selby Community Primary School. She is there to support parents/carers, pupils and school staff where children are having difficulties accessing education.
Dot: “I’ve lived on the estate for more than 10 years and am so pleased The Edge Community has been set up. When I first moved to the area I used to live next door to the pub and would regularly see young people taking drugs. Sadly my son also became involved. But The Edge Community’s work with children and teenagers is brilliant, as they are learning about Jesus and the hope that he brings, and will then be able to share that with others.” “I’ve also grown in my own faith since getting to know Richard and the team, and have taken part in an Alpha Course and a Road to Maturity course. I now attend the community’s gatherings and prayer meetings. Everyone is like family and there’s always a really welcoming atmosphere.”
Leading Street Pastors in Aberdeen – Gerry Bowyer tells us more
Here in Aberdeen, I work as the local Street Pastors Coordinator, overseeing 90 volunteers from churches across the city and, together, we endeavour to respond positively to the night time community each Friday and Saturday evening. This happens in a number of ways, whether it’s helping people get home safely, providing a listening ear for people going through tough times or exploring some of life’s big questions. We also have a Safe Space vehicle, which is a specially converted truck, where people can access warm drinks, first aid and support – particularly those suffering the effects of alcohol. All of this work is done in partnership with Grampian Police and Aberdeen City Council, and it has been an amazing way to connect with the wider community. Since taking up the role in 2007, I have had so many opportunities to share with people about our work and have spoken at numerous council meetings and to local businesses. Each time we go out on the streets we meet such a wide variety of people – many of them
struggling with relationship issues, grief and mental health problems. For example, a young man called Nathan* came to us for help after his mum became ill and then died. He was about to get into a fight but we were able to intervene and calm him down. He told us that he worked in the oil industry and spent a lot of time offshore as part of his job. He felt terribly guilty that he had been offshore when his mum died. He also told us he’d grown up in a Christian home. We were able to put him in touch with counsellors and, later on, a church. Nathan has now renewed his Christian faith and recently got married. We praise God for working in his life! Alongside the street outreach, I’ve also been busy training a team of volunteers to become School Pastors in a local secondary school. We want to be available at lunchtimes for the young people to listen, to care and to help. We’re developing a holistic approach to helping young people and, through our School Pastor Life Coaching initiative, helping young people develop positive attitudes towards lifestyle decisions. I’m excited to see how this scheme develops.
report of the trustees
Each weekend across the country, thousands of Christian volunteers take to the streets after dark to engage with people who are enjoying a night out and to practically demonstrate God’s love to them as part of the Street Pastors initiative which was pioneered in London back in 2003.
To find out more visit www.aberdeen.streetpastors.org.uk and www.aberdeenschoolpastors.org.uk
n
* Name changed
Church Army Annual Report 2012/2013
9
Our homeless work
report of the trustees
During the past financial year, Church Army has remained committed to its homeless projects; namely The Marylebone Project in London, Church Army Residential Services in Cardiff and Church on the Bus in Derbyshire.
The Marylebone Project
computer course and have helped out at a local church. I’m also taking part in a domestic violence course and one about confidence and awareness. “The Marylebone Project is so important and helps women from many different situations. It has saved me. My key worker has done everything she possibly can to help me and I am about to move into my own flat, which I’m really looking forward to. I’m going to miss all the new friends I’ve made here, but I will come back and visit them.” * Name changed
Church Army Residential Services The Marylebone Project in London is a homeless project for women and is one of the largest of its type in the United Kingdom. The project is a partnership between Church Army and the Portman House Trust (a trust for which Church Army is the sole trustee). The project comprises residential accommodation for 112 women including a specialist mental health unit, a women-only day centre and a social enterprise project. Its work is centred on the themes of spirituality, hospitality, empowerment and resettlement.
Church Army Residential Services in Cardiff has been providing accommodation to homeless young people for more than 25 years and its work is founded on the Christian principles of hope, justice and love. The project works with 16 to 21-year-olds from a variety of different backgrounds who have nowhere else to call home and no-one else to look after them.
This year the project has successfully resettled 96 women back into independent living and has provided 5,824 nights of accommodation for women. Its day centre has also had 7,266 visits during the year. The social enterprise project, Made in Marylebone, which aims to equip women with skills, experience and employment support has also remained a priority. Made in Marylebone includes a catering company, room hire service and jewellery making. To find out more visit www.churcharmy.org.uk/marylebone
n
Louise’s story “My name is Louise* and I fled from my home and husband after experiencing domestic violence. I came to London but ended up on the streets for nearly a month, which was really terrifying. I was then referred to The Marylebone Project and moved in straight away which was such a relief. Since arriving I have been involved in the jewellery making project, a 10
Church Army Annual Report 2012/2013
Young people from Ty Bronna enjoying a canoeing trip The first stage of its accommodation, Ty Bronna, provides up to 13 young people with 24-hour supported housing. It aims to equip them with the skills they need to move onto independent living and each of them has a personal development plan. As part of their tenancy, they are required to participate in some form of further training or education and the project also helps them acquire skills in areas such as tenancy rights, cooking and domestic skills, socialising and networking, developing interests and hobbies, and budgeting.
Chris says: “Church Army offered me a place to stay after becoming homeless and living in a tent in the woods. I was offered a home, a place of warmth and understanding and now that I have left the project I still have the support of Church Army to rely upon when things get tough.”
This year the project has supported 87 young people; 57 through Ty Bronna, 14 through Ty Danescourt and 16 through the DC2 Floating Support Scheme.
Church on the Bus in Derbyshire
Chris’ story: Chris became homeless after losing his tenancy in the private rented sector and was forced to sleep in a tent for a number of weeks in the local woods. During this time Chris was physically attacked. In August 2012, Chris was offered a room at Church Army Residential Services and support was put in place to help him regain his confidence and to get his life back on track. Church Army gave Chris the stability and security to grow and he was soon able to realise his potential by securing a job in a pub as a chef and then later in a factory in the South Wales Valleys. Chris demonstrated his determination to maintain employment and travelled a considerable distance to work each morning. It soon became evident that he no longer required the high level of support provided by Church Army’s accommodation and was helped to find privately rented accommodation.
Church on the Bus was set up in 2004 by Evangelist, Alan Park, and has grown to become a Christian community which meets each week in Chesterfield, Matlock and Clay Cross. Alan and his team of more than 45 trained volunteers use a bus as a drop-in for those who are vulnerable and homeless, where they provide friendship and prayer alongside food, hot drinks, clothes and toiletries. They support around 60 people each week.
report of the trustees
The second stage of accommodation, Ty Danescourt, sees the young people living more independently while still having the support of staff if needed. For example they have their own front door key, manage their own day-today routines and have a communal lounge and kitchen.
Doris serving refreshments at Church on the Bus
Activities in Scotland, Wales and Northern Ireland Activities in Scotland Four of our active evangelists and one evangelist-in-training work in Scotland. The Grafted Project, based in Newcastleton and Hawick in the Borders, is one of our Centres of Mission. Church Army is registered with the Office of the Scottish Charity Regulator.
Activities in Wales Eight of our active evangelists are based in Wales, together with Church Army Residential Services for homeless young people and the Amber Project for young people who selfharm, both based in Cardiff. In addition the Valley of Hope project in the Welsh Valleys works mainly with homeless ex-prisoners.
Activities in Ireland Twenty seven of our active evangelists and two evangelists-in-training are based in Ireland. This is an area where we’ve had a significant presence for a number of years, especially in inner Belfast and through our Craigavon, Lisburn and Willowfield Centres of Mission.
Church Army Annual Report 2012/2013
11
report of the trustees
Objective 2: Advocating evangelism We are passionate about encouraging the wider church to become more actively involved in mission. As the church is tempted to face inwards, we have been challenging it to remember those outside and for Christians to share their faith through words and action. This is how we’ve achieved this objective:
Inspiring church leaders
Campaigning
We have spoken at diocesan leadership conferences in: Bradford, Canterbury, Chelmsford, Derby, Dublin and Glendalough, Leicester, Liverpool, Portsmouth, Ripon and Leeds, Sheffield, Sodor and Man, Southwell and Nottingham, St Albans and Worcester.
Raising awareness about evangelism through our campaigns has been a key focus for us this year. In April 2012 we launched our year-long Hope on the Streets campaign following the summer riots of 2011. This focused on our grassroots outreach to the homeless, young people from chaotic backgrounds and our bus projects. It was widely reported in the Christian media
Advocating evangelism to church leaders is crucial to our DARE strategy and therefore our Senior Leadership Team, Research Team and Training Team have been involved in speaking at more than 120 events this past financial year both in the United Kingdom, Ireland and internationally. These have included:
National The Yorkshire Ministry Course The Church of England Church Growth Research Programme n Fresh Expressions Mission-Shaped Ministry Course n Cliff College’s Masters in Mission Course n Church of Scotland’s Emerging Ministries Conference n College of Evangelists study days n Signs of God national conference for the Christian deaf community n Faith in Research Conference n Church Mission Society’s Young Adults Gathering n Fresh Expressions Young Adults Round Table n The Oxford Ministry Course – Ripon College Cuddesdon n The Methodist Church Pioneers Venture FX programme n The Groves Book Conference n The Housing Justice Conference n New Wine n Soul Survivor n Church of England Leadership Development Conference n St Mellitus College n National Scouts Service n n
International Church of Ireland Continuing Ministerial Education Programme n IGW day for the free churches in Switzerland n Federation of Swiss Protestant Churches n Methodist Church Conference in Switzerland n
12
Church Army Annual Report 2012/2013
Its aim was to highlight the needs many in our society are facing and to inspire Christians to engage with those who are marginalised. We also hoped that by featuring the work of our evangelists and projects, we would show how Christians and the wider church can have a positive impact in their communities. Baroness Sherlock, who served as a member of the Riots Communities and Victims Panel which was set up by the three main political parties to investigate the causes of the 2011 riots, said: “I am delighted that Church Army has responded so positively to our report and congratulate Mark Russell and his team on the work they are doing to help marginalised individuals and communities in some of the most deprived parts of our country. It is only by ensuring that everyone has a stake in our society that we can hope to avoid a repeat of the riots of 2011.” Hope on the Streets was featured throughout all of our communications and marketing. The Hope on the Streets film was featured on the Church Army website, YouTube and was distributed on DVD to hundreds of churches. The film was shortlisted at the Christian Broadcasting Council Media Awards 2012 in the Best Short Film category.
Church Army speakers: reaching the local church Church Army Evangelists and staff regularly visit churches across the United Kingdom and Ireland to speak, whether it’s at a Sunday service, mid-week group or for a one-off event or mission. People often find that hearing about Church Army’s work first-hand can bring inspiration to them and encourage them in their own personal evangelism. Last year more than 230 such engagements took place. This coming financial year we hope to increase this figure by 10 per cent.
St James’ Church Christleton in Cheshire
Bolton Abbey
“Everyone at St James’ was delighted to see Evangelist, Rob Barker, and his wife, and the message he gave was thought provoking. He spoke about the work of Church Army generally and then more specifically about his role in Chester where he reaches out to young people from chaotic backgrounds. We have a member of our congregation who is very much committed to a ministry of working with those who fall into the trap of drug/alcohol abuse and who struggle with the stresses of daily life. To this end, he’s asked if he may contact Rob and talk with him about how he may be of service. Thank you.”
We really appreciated Evangelist, Andy Milne’s visit and to hear about his work with young people at the Sorted Project in Bradford. He spoke really well and stayed for ages chatting with people. As our youth worker left last year, Andy had helpful advice for those who are trying to maintain our work in that area and we have been in touch since his visit to take things forward. It was also helpful receiving Church Army’s literature in advance of his visit.”
St Chad’s Parish Church Poulton-le-Fylde in Lancashire
Parish of Penn Street with Holmer Green in Buckinghamshire
“It was good to have Peter Bone with us on Sunday and to hear about his work in challenging circumstances in Skelmersdale, Lancashire. I appreciated the fact that you were pro-active in offering the services of a visiting preacher as it helps to reinforce the link between Church Army and its parish support base and it reminds us of your work in the mission field of contemporary Britain.”
report of the trustees
Here is some feedback we’ve received from churches:
“Evangelist, Sheila Samuels, was an exceedingly good speaker and her talk was very informative and interesting. Please thank her again for us.”
Communications and media strategy Our Marketing Team has continued to play an important role in advocating evangelism through the Christian media and through social networking via Facebook and Twitter. Our partnership with Christian Publishing and Outreach (CPO) who produce Inspire magazine has also continued this financial year. Inspire has a circulation of 55,000 and is a free interdenominational magazine which is full of practical outreach, encouragement and faith-building stories. It aims to encourage its readers to make a difference to today’s world. As part of our partnership we are allocated 10.5 pages in the magazine across the year and during 2012/2013 we have used them to effectively promote our Hope on the Streets campaign. Church Army Annual Report 2012/2013
13
report of the trustees
Objective 3: Resourcing evangelism In last year’s Annual Report we set out in our objectives that we would aim to resource evangelism in the following ways: By developing our existing evangelism resources and creating new ones as the need arises.
n
By building partnerships with other Christian organisations and together offer resources and support to those involved in mission.
n
Through our Centres of Mission and evangelists working in the field.
n
Internet resources Now a Christian
The Christian Enquiry Agency (CEA)
Our Now a Christian online course was launched back in 2009 and since then has helped thousands of people find out more about the Christian faith. People can sign up for free by visiting the Now a Christian website and they will then receive an email every day for five weeks which helps them discover what it means to follow Jesus. During the past financial year, we’ve had 521 people sign up for the course. It has also proved a valuable follow-up tool for churches and our evangelists.
This year we have continued to build on our relationship with the Christian Enquiry Agency which is managed by Church Army’s Peter Graystone. The website now has 1,000 visitors each week and gives free, confidential and reliable information about the Christian faith as well as the opportunity to chat with someone directly or request a gospel.
To find out more visit www.nowachristian.org.uk
n
Here is some feedback we received from them: “Thank you so very much for Now a Christian. Through it I have learnt, started to read my Bible, prayed, cried and tonight I opened my heart to God who I have rejected and been angry with for so long. And he still loves me! I am safe with Him again.” “The Bible readings, the teaching, the encouragement and the wise words in Now a Christian has brought me back to my Lord. I shall miss receiving the Now a Christian email each day. Thank you from the bottom of my heart and thank you dear Jesus for directing me towards you.” “I am not sure if you still remember me. I’m the young man from Poland who wrote a message about how I was losing my faith. Now, I’ve almost finished Now a Christian and I feel thoroughly changed and challenged. It is a decision that changes a man’s life.”
14
Church Army Annual Report 2012/2013
At the beginning of 2013, the CEA marked its 25th anniversary with a campaign, Fully Alive, inviting people to visit the website and to send for a free Gospel of Luke in a magazine format. Fifty thousand postcards were placed in cinema foyers and churches placed thousands more in parent and toddler groups, outreach events and clubs for the community that meet on church premises. At the height of the campaign the weekly website statistics were as follows; 2,899 people visited the CEA website, 36 people directly contacted the CEA and 16 people sent prayer requests. Also, as a specific result of Fully Alive the CEA sent out 112 gospels to people who requested them. To find out more visit www.christianity.org.uk
n
Encounters on the Edge
Encounters on the Edge 53: Crossnet was released in May 2012 and focuses on the story of a network church in Bristol.
n
Encounters on the Edge 54: A Spare Part? was released in August 2012 and looks at volunteers who lead fresh expressions of church in their spare time.
n
Encounters on the Edge 55: Thirst was released November 2012 and finds out what can be learnt from school-based fresh expressions.
n
Encounters on the Edge 56: Sweaty Church was released in January 2013 and looks at the new concept of Sweaty Church as an alternative to Messy Church. This new form of church uses sports and physical activities to explore the Christian faith and particularly appeals to boys and their dads.
n
Sweaty Church
Fresh expressions diocese research In late 2011, Church Army’s Research Unit began work on a new project as part of the Church of England’s Church Growth Research Programme to survey all the fresh expressions of church in particular representative dioceses. The study considers whether and how the church planting and fresh expressions movement has started to generate net growth, to suggest good practice and successful patterns. Such research will enable evaluation of whether certain sorts of church plants or fresh expressions are more effective than others in producing church growth and the evaluation of the effectiveness of pioneer ministry as opposed to existing patterns of ordained ministry in producing church growth. From all this it will be possible for the wider church to draw out funding and policy implications.
The research will examine fresh expressions/ church planting in a variety of dioceses. These are from north and south, urban and rural, strongly disposed to fresh expressions and not, and so offer a representative picture of what is happening nationally.
report of the trustees
Since 1999, Church Army’s Research Unit has published a series of booklets, Encounters on the Edge, which explore church planting and new forms of church. The booklets aim to spot emerging trends, identify good practice and offer strategic thinking for pioneers. In the past financial year they have published four such booklets.
At the end of this financial year, Church Army’s Research Unit has surveyed six dioceses while still working on further ones. From their research so far the team has found that fresh expressions of church are making a striking contribution, reversing decline in all the dioceses surveyed, and they are drawing de-churched and nonchurched attendees at proportions that parish churches do not achieve. An overall report of their findings will be written in the autumn of 2013.
Resourcing our supporters Our Marketing Team has continued to find ways of resourcing our supporters in evangelism through our existing communications including our Shareit! magazine, website and InTouch email newsletter. This has included developing a series of “top tip” resources for summer evangelism, personal evangelism, Christmas evangelism, Easter evangelism, community events and community outreach. We also direct people towards useful resources produced by others drawing on the wealth of material already available.
Church Army Annual Report 2012/2013
15
report of the trustees
The Wilson Carlile Centre Church Army’s home, The Wilson Carlile Centre (WCC) in Sheffield, is a multi-purpose centre for the community and includes a café, theological library with more than 15,000 books, 30 en suite bedrooms, day and residential conference facilities, chapel and a garden. It is also home to Church Army’s national office staff.
To find out more visit www.wilsoncarlilecentre.org.uk
n
One of the aims of the centre is that it will become a resource for evangelism and the wider church. During the past financial year, these are just some of the organisations and charities that have used the centre: Diocese of Sheffield School of Ministry Housing Justice n CPAS n Salvation Army n Sheffield Sports Chaplaincy n The Mother’s Union n St Thomas’ Crookes Church n Partnership for World Mission n Langham Trust n Eden Network n Christian Coalition for Urban Mission n Sheffield Children’s NHS Hospital Trust n n
WCC library
Evangelists resourcing the local church Church Army is committed to resourcing evangelism through our evangelists and our Centres of Mission which are situated in: Bradford, Chester, Craigavon in Northern Ireland, Greenwich, Lisburn in Northern Ireland, Newcastle, Selby, Dawn Hudson Sheffield, Southampton, Thanet, the Scottish Borders, Warwick and Willowfield in Northern Ireland. Teams of evangelists work at our Centres of Mission where they seek to bring people to a living faith in Jesus Christ through developing relevant and appropriate Christian communities. Alongside this, with the development of the DARE strategy, they train future evangelists and resource the wider church. Evangelist, Dawn Hudson, who was based at our Warwick Gates Centre of Mission up until July 2013 and who has now moved to a new role in Sheffield, tells us about the Connect2God community she established for people with learning difficulties and how she raised up and resourced a group of Christian volunteers to
16
In January 2013 the Archbishop of York visited the WCC and enjoyed lunch with Church Army Evangelists and staff, encouraging them in their work.
Church Army Annual Report 2012/2013
sustain the project long-term. “One of the main areas of work I pioneered during my time in Warwick was a new Christian community for people with learning difficulties - Connect2God. The group meets at St Margaret’s Old School House and worships through prayer, art, dance and drama. Before establishing the group I spent time networking locally with other support agencies and I also recruited a team of Christian volunteers to help me lead the project. An additional Connect2God group has also been set up in The Kings Table Café in Kenilworth. “When establishing the group I worked with the volunteers to develop their evangelism skills and to empower them so they could run the groups for themselves. Through observing me in my communication, teaching, preaching and art, they were encouraged to try things for themselves. I also helped them establish good networks in the community and accompanied them when visiting other projects. “With both Connect2God teams there was a real sense of community – of sharing, caring and growing together in our need to work with God and each other in expanding His Kingdom. We met together regularly to plan, pray and to learn and the excitement in the room was always contagious as we discussed new ideas!”
Objective 4: Enabling evangelism Mission-Based Training Church Army has been training evangelists for more than 130 years. Throughout this time, we have remained committed to four core principles: Integrating practical experience and academic study.
n
Being innovative with both methods and contents to be relevant and appropriate to the contexts our evangelists will be working in.
n
Being professional in delivering the training.
n
Working together with the wider church.
n
Our four-year Mission-Based Training Programme was launched in 2008, replacing the previous residential model of training. Instead our evangelists-in-training are based at one of our Centre of Missions and are apprenticed to an experienced evangelist who provides coaching and supervision. The evangelists-intraining are closely involved in local mission
and have opportunities to practice what they are learning. As part of their training, they also attend regular residential study weeks at Church Army’s Wilson Carlile Centre in Sheffield. The programme is validated as a Foundation Degree in Evangelism by York St John University and approved by the Church of England Ministry Division. Currently we have 14 evangelists-in-training enrolled on the course. In line with the DARE strategy and with the changes in training happening across the Anglican Church we are reviewing how we most effectively utilise the resources we have available to us. The importance of training and equipping the wider church will play a central tenet in that, together with the on-going training of those who will go into full-time ministry. Once the building blocks are in place we will begin recruiting people at all levels through our missional and vocational processes.
report of the trustees
In last year’s Annual Report in our objectives, we committed to continuing with our Mission-BasedTraining Programme, Xplore gap year and volunteering and local placement schemes to enable others in evangelism. This is how we’ve achieved this.
Evangelist-in-Training, Stephen Ramshaw (left) and Tutor, Steve Hollinghurst, (right)
Church Army Annual Report 2012/2013
17
Xplore gap year
report of the trustees
Xplore students 2012/2013
During the past financial year, our Xplore gap year has continued to enable 18 to 25-year-olds in mission. The programme starts with a six-week placement in Romania where the students work among some of the poorest people in Europe. On returning to the United Kingdom and Ireland, they are then placed in a mission base to work with those who are marginalised. Alongside this the students receive teaching which helps them explore the Bible further and understand what it means to make disciples of Jesus. During this financial year, we’ve had 15 students take part in Xplore. Here, two of them share their experiences. Peter Coombs, 19, is from Wantage in Oxfordshire and is in his second year of Xplore. “I joined Xplore in September 2011 after hearing about it at the Next Generation youth conference in Oxford. I’ve had a brilliant time so far with Xplore where I’ve been given the space and opportunity to discover my gifts and grow in them. During both of my trips to Romania I have been part of the building team helping some of Europe’s poorest communities. I have also been working at Church Army’s Southampton Centre of Mission on the Weston housing estate where I’ve got involved in a variety of ministries. These include a renovations project where we decorate people’s homes who are struggling physically or financially and a weekly lunch club for the elderly and isolated. The Xplore teaching sessions have also been helpful and one of the biggest things I’ve learnt is the need and importance to be in a right relationship with God before going about evangelism to others.”
18
Church Army Annual Report 2012/2013
Rosie Elwood, 19, from Nottingham “Spending time in Romania was really encouraging and I worked at the social enterprise, DECE, where vulnerable women are taught to crochet hats and scarves which are then sold online. As well as spending time with the women, I also helped with the administrative side of the project; writing letters to potential customers and editing photos for the website. The teaching I’ve received as part of Xplore has also been really challenging as we’ve tackled subjects such as prayer, obedience and idolatry. Back in the United Kingdom, I’ve been working at Church Army’s Greenwich Centre of Mission in south London, helping with kids clubs, community drop-ins and outreach services for the nearby housing estates. My involvement with Superkidz has been a highlight for me – it is just great to see how much the kids enjoy it and how they share their hearts with you in such an honest way.”
Volunteering Across the country more than 1,000 Church Army volunteers are working alongside our evangelists, making a positive impact in their communities. Emily Ferry, 56, lives in Newmills, Northern Ireland, where she volunteers with Church Army’s Zacchaeus Outreach Project, which works with marching bands through a café-bus. She shares with us how Church Army is enabling her in evangelism.
Emily Ferry
Mission Community Church Army’s Mission Community was launched in September 2012. Its members are committed to sharing their Christian faith through words and actions. It is a home for people with a passion for evangelism and who want to reach out to their communities beyond the walls of church. It is a family where members can be resourced and encouraged. It is not an organisation so much as a movement that focuses on relationships rather than rules. It is held together by a commitment to Christ, to the gospel and to holiness of life. Though coming from within the Anglican Church, it has an inclusive ethos and is open to those from other churches. It is a vision of a community of love sustained by prayer and the grace of God.
Vanessa Kirby
report of the trustees
“For the past year I have been a volunteer on the café-bus, which travels to band parades and events to engage people in the Christian faith. While on the bus, I spend my time serving refreshments and chatting with people so they feel welcome – all done with a big smile! Each time I step onto the bus there is such joy in my heart as I serve the Lord and other people. It has also been wonderful to work alongside Val Thom who leads the project and to make friends with the other volunteers. I first heard about the project at church and thought it was such a brilliant idea. I love going out beyond the church and into the community.”
This year the Mission Community team has been formed under the leadership of our Dean of Community, Vanessa Kirby. Its main focus has been to put internal structures in place ready for the public recruitment of members into the Mission Community which is planned for 2013/2014.
School of Ministry Church Army’s Training Team has continued to work with the Diocese of Sheffield’s School of Ministry which, during this financial year, has trained more than 60 children’s ministers, readers, pastoral workers and parish evangelists. The team has taught modules in partnership with the diocese including: Children and the Church, Communicating the Christian story, Introduction to Christian mission and ministry, Working with children and young people, The New Testament, Ministry and Praxis and The development of Christian faith through history.
Church Army Annual Report 2012/2013
19
Objectives for the coming year Doing evangelism We will continue to undertake evangelism through our Centres of Mission, partnerships and opportunities provided through other organisations.
report of the trustees
n
We will continue to demonstrate God’s love unconditionally to all; particularly through our work in communities, with the homeless and with vulnerable people.
n
We will measure the outcomes of our evangelism through the establishing and growing of new Christian communities and stories of changed lives.
n
We will measure the success of our work with vulnerable people through the support we offer them in their existing situations, provision of accommodation for those who are homeless, preparing people for independent living and through resettlement.
n
Advocating evangelism We will continue to challenge individuals and the church to reach out to their communities, sharing their faith through words and action.
n
We will measure the success of this through the number of speaking engagements we do and the number of invitations from dioceses to help them in their evangelism.
n
We will also measure the outcome through press and media opportunities.
n
Resourcing evangelism By continuing to develop appropriate evangelism resources and source existing materials for the wider church.
n
Through our partnerships with other Christian organisations where together we can add value to each other’s work.
n
Through our frontline evangelists and national training staff offering appropriate training.
n
We will measure the success of these through the uptake of our resources, the number of training opportunities and the impact of our partnerships.
n
We will seek to increase the numbers of people engaging with the Church Army Mission Community and will measure its success through enquiries and applications made.
n
20
Church Army Annual Report 2012/2013
Enabling evangelism Through our training programmes, both local and national.
n
Through our Mission-Based Training Programme.
n
By offering volunteering opportunities in our Centres of Mission.
n
We will measure the success of these through the uptake of our volunteering and Xplore opportunities, and the success of our MissionBased Training Programme in enabling those who complete it to be awarded a qualification that empowers them to get a post in ministry.
n
Public benefit The trustees have considered the Charity Commission guidance on public benefit and are satisfied that both the aims of the Society and what it delivers meet the public benefit test.
report of the trustees
Through our Xplore programme for 18 to 25-year-olds.
n
Church Army meets the criteria through: The advancement of the Christian religion.
n
Provision of services for homeless people.
n
Its youth and community work.
n
Church Army does not discriminate between those who profess a Christian faith and those of no faith. Our work is also open to those of other faiths. Examples of how we do this can be found on pages 6 to 19.
Church Army Annual Report 2012/2013
21
7%
report of the trustees
Financial review Eighty eight per cent of our total expenditure of £8.4m is spent on our charitable activities, with the remaining 12 per cent spent on fundraising, investment management and governance costs. Our charitable expenditure of £7.4m is incurred across the range of our activities as shown in the chart (for further details see note five). Income received for specific charitable activities amounted to £3.9m, so the balance of charitable expenditure (£3.5m) has been funded from general income and reserves. The largest proportion of our income is fees for our homeless projects, which are approximately matched by the costs of running those projects. The vast majority of the rest of our income comes from donations, including grants from trusts and legacies. These gifts, supported by income from investments given in the past, enable us to pay and train our evangelists to reach people who are marginalised and have little experience of church. Donation income has held up well this year given the economic climate, reflecting the sacrificial dedication of many of our supporters, but we have not had the level of legacies, property gains and investment income to make up for our operating deficit as it did in previous years. As set out in last year’s report the Board has undertaken a financial review during the year and identified significant savings and put in place a new management structure to help deliver the plan over the coming five years. Because of the current state of the housing market, we have not been able to sell some of our properties which are surplus to operational requirements without making losses on the current value. The intention remains to sell these when practicable to fund our ongoing activities. Most of our properties are used for operational purposes and are not therefore available to be sold without damaging our work.
How we raised the money Income £5,692,000 £5,692,000 Investments and Other 11% Donations 32%
Legacies 10%
Fees 47%
Projects we funded this year Charitable Expenditure £7,378,000 £7,379,000 Centres of Mission 22%
Homeless projects 38%
Fresh expressions 20% Training 13%
Other field evangelism 7%
How each £ is spent Fundraising 11.7%
Governance 0.5%
Income £5,692,000
Investments and Other 11% Donations 32%
Charitable activities 87.9%
22
Church Army Annual Report 2012/2013
Fees 47%
Legacies 10%
Reserves policy The Board aims in the long-term to have base reserves to provide adequate working capital and to allow the Society to make long-term funding commitments. Base reserves are calculated as follows:
£m
Contingency for shortfalls in voluntary income – 20% p.a. over 5 years 2.4 Contingency for unexpected costs 1.0 Contingency for falls in value of unrestricted investments and investment properties - 15% of value 1.3 Budgeted operating deficit for the forthcoming year 1.8
6.5
Restricted funds (£5.4m), which may only be used for specific purposes;
n
Unrestricted designated funds (£17.1m), which are allocated at the discretion of the trustees and comprise amounts tied up in operational property, including housing for evangelists, homeless projects and the Wilson Carlile Centre;
n
Free reserves (£10.0m), which is above our target of £6.5m.
n
The Board manages the difference between free reserves and base reserves by making adjustments to the long-term plans for deficits and by managing the sales of properties.
Fundraising activities Our fundraising activities have become increasingly concentrated on a small team based mainly in our central office at the Wilson Carlile Centre in Sheffield. Voluntary income is below the previous year, due mainly to the drop in legacy giving, which is disappointing but not easily addressed in the short-term. This would have fallen further but for a number of efforts during the year.
report of the trustees
The Group’s reserves have been analysed in note 17 between:
Investment policy and performance Investment returns in fluctuating market conditions have ended the year positively, but the outlook remains uncertain with concerns over sustaining the recent growth trends. Total returns on the Ruffer portfolios for the year were seven per cent with the general fund and subsidiary trust portfolios performing similarly. Other investments held by subsidiary trusts (restricted funds) are invested in managed funds which allow a reasonable spread of risk on these smaller portfolios. The total return for the year was seven per cent. Ruffer LLP is the Society’s general investment manager. The Board’s investment policy in the light of the current climate is to achieve a total net return twice that obtainable from cash while minimising the risk of the loss of capital value.
Ruffer’s approach is different from that of many investment managers and is fairly cautious, spreading risks globally to insure against various possible investment scenarios, including further major financial dislocation and easing monetary policy to ward off recession leading to inflation. The trustees have continued their ethical investment policy, for example no direct investment in companies with significant turnover from arms, tobacco, gambling, alcohol or pornography. While the trustees would prefer to avoid investment in these areas altogether, the complexity and interconnectedness of business means that such an approach would rule out almost all forms of equity investment, which the directors do not believe would be in the interests of the Society or its beneficiaries.
Church Army Annual Report 2012/2013
23
Structure, governance and management The Society is both a registered charity and a company limited by guarantee governed by its Articles of Association, which specify that its legal objects are “to bring people to a personal faith in Jesus Christ by: (i) providing trained evangelists and lay agents to assist the advancement of the Christian religion
report of the trustees
(ii) preaching the need of conversion, holiness of life and church membership (iii) relieving poverty and distress.” The directors of the company are the trustees for the purpose of charity law and comprise the members of the Board as set out on page 27. The Society has been registered additionally with the Office of the Scottish Charity Regulator.
Appointment of trustees The Board of Trustees comprises people with appropriate expertise including Church Army Evangelists and members of General Synod of the Church of England. Trustees are appointed by the Board following a search based on filling identified gaps in skills and experience and must be confirmed in office by the next Annual General Meeting. Good governance is vital to the effectiveness of the organisation and so training and induction programmes for new trustees are tailored for each individual.
The Board and its committees The Board carries overall responsibility for all decisions within the Society and has delegated certain powers to the following committees: The Finance Committee:
n
advises the Board on financial policy and its implications
n
monitors the development of financial systems
n
approves the purchase and sale of properties and other capital expenditure within parameters determined by the Board
n
recommends to the Board the appointment and remuneration of external auditors
n
considers with the Chief Executive and Deputy Chief Executive the implications of the auditors’ recommendations as set out in their management letter and monitors progress against agreed action.
n
24
Church Army Annual Report 2012/2013
The Investment Committee monitors and reviews the policy and performance of the Society’s investment managers.
n
The Senior Management Team is responsible for implementing Board decisions throughout the Society and the executive management of its operations and resources through its newly formed Management Team.
n
The Marylebone Project Board formulates and implements strategy and oversees all operational matters relating to the Marylebone Project for homeless women on behalf of the Portman House Trust.
n
The Training Advisory Group monitors the development of training and advises the Board on training matters.
n
The Society also has a President and Vice Presidents, who have no formal powers but act in an advocacy role within the wider church.
Church Army International Church Army in the United Kingdom is a separate legal entity but has equivalent societies in Australia, Barbados, Canada, Denmark, Jamaica, Kenya, Malawi, New Zealand, Uganda, the United States of America and Vanuatu, each of which is separately constituted and legally independent of the others. Leaders of the different societies support one another and maintain contact through email, regular conference calls and occasional international conferences.
Church Army Evangelists are commissioned by Church Army, admitted to the office of evangelist in the Anglican Church and are licensed by the bishop in whose diocese they work. The majority of evangelists are employed and funded by dioceses rather than by Church Army. Church Army works in partnership with a variety of Christian organisations in the fulfilment of its objectives. Sometimes these are short-term
cooperations on specific initiatives, whereas others are long-term relationships which evolve over time. Particular mention should be made of our involvement with the Christian Enquiry Agency, an ecumenical initiative in evangelism, and the College of Evangelists, a Church of England association of those involved in national evangelistic ministry.
Risk management and internal controls The Board has overall responsibility for ensuring that the Society has appropriate systems of internal control, whether strategic, operational, financial, or with regard to legal compliance. Systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:
report of the trustees
The wider church
An annual budget approved by the trustees and detailed monthly management accounts which report actual performance compared to budget.
n
A strategic statement of the Society’s purpose, values and vision supported by more detailed goals and objectives.
n
Internal policies and procedures.
n
A process for the identification and management of risks.
n
An agreed level of delegated authority to committees and management.
n
Checks to ensure that transactions are properly authorised and recorded.
n
The principal risks identified in the Board’s annual risk review and the response to them is: Risk Response Ongoing operating deficit not eliminated by Ongoing review of budgets and costs in the performance of investments and properties. light of income and available reserves. Five-year plan in place to reduce deficit. Volatility of the investment market and the The Board’s investment policy in the light of the impact on reserves. current climate is to achieve a total net return twice that obtainable from cash while minimising the risk of the loss of capital value. Ageing prayer and financial supporter base. Constant review of our fundraising strategy and recruitment to our donor base. Each year there is a formal review of the risks to which Church Army is exposed and the systems established by the Senior Leadership Team to mitigate them as recommended as best practice. Church Army Annual Report 2012/2013
25
report of the trustees
Trustees’ responsibilities
Auditors
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Trustees are also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
A resolution to reappoint BDO LLP as auditors of the Society will be proposed at the forthcoming Annual General Meeting.
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently.
n
So far as we are aware there is no relevant audit information of which the Society’s auditors are unaware; and
n
We have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the Society’s auditors are aware of that information.
n
Approved by the Board and authorised for issue on 14 September 2013
Observe the methods and principles of the Charities SORP.
n
Make judgments and estimates that are reasonable and prudent.
n
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
n
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
n
The Trustees are responsible for keeping adequate accounting records that show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the society’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
26
In accordance with company law, as the trustee directors of the charitable company, we certify that:
Church Army Annual Report 2012/2013
The Rt Rev Stephen Cottrell, Bishop of Chelmsford and Chair of Church Army’s Board
Board Members and Officers
Vice-Presidents
The Rt Revd Bruce Cameron The Rt Revd Lord Eames of Armagh The Most Revd David Chillingworth The Most Revd Alan Harper The Rt Revd & Rt Hon Lord Carey of Clifton The Rt Revd & Rt Hon Lord Hope of Thornes The Most Revd Dr Michael Jackson Dr Bill Lattimer Mrs Ann Marsh The Most Revd Barry Morgan Ms Pam Rhodes The Most Revd & Rt Hon John Sentamu Miss June Simpson Mr Roy Totten The Rt Revd Michael Turnbull
The Board
Chair The Rt Revd Stephen Cottrell
Vice-Chair The Revd Bonnie Appleton Honorary Treasurer Mr Peter Ridge
The Ven Dr John Applegate *Captain Robert Barker Ms Joanna Cox Mr Steve Eccleston The Revd Canon Sarah James Sister Canon Dorothy Needham Captain Graham Nunn *Canon Mark Russell The Revd Wendy Saunders The Rt Revd David Wilbourne (appointed December 2012)
* Employed by the Society throughout the time in office
board members and offices
Patron HM The Queen President The Most Revd Desmond Tutu
The directors of the company shown here are the trustees for the purpose of charity law and comprise the members of the Board. Any reference to either Directors or Trustees in this report should be interpreted as meaning both. The Society has been registered additionally with the Office of the Scottish Charity Regulator.
Church Army Annual Report 2012/2013
27
board members and officers
Chief Executive and Chief Secretary
Canon Mark Russell
Senior Leadership Team
Canon Mark Russell (Chief Executive) Mr Des Scott (Deputy Chief Executive) Sister Vanessa Kirby (Dean of Community)
Auditors
BDO LLP
Bankers Barclays Bank PLC Unity Trust Bank PLC Investment managers Ruffer LLP Solicitors
Cooper Burnett LLP Anthony Collins Solicitors LLP
Actuaries First Actuarial PLC Company Secretary Mr Des Scott Registered office
Wilson Carlile Centre, 50 Cavendish Street, Sheffield, S3 7RZ Telephone: 0300 123 2113 E-mail: info@churcharmy.org.uk
Registered number 37169 Charity numbers 226226/SC040457
28
Church Army Annual Report 2012/2013
We have audited the financial statements of Church Army for the year ended 31 March 2013 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charity’s trustees and members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees and members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees and members as a body, for our audit work, for this report, or for the opinions we have formed.
auditors’ report
Auditors’ Report
Independent Auditors’ report to the Members and Trustees of Church Army
Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Church Army Annual Report 2012/2013
29
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2013 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
auditors’ report
n
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
n
have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
n
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: the parent charitable company has not kept proper and adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or
n
the parent charitable company financial statements are not in agreement with the accounting records or returns; or
n
certain disclosures of trustees’ remuneration specified by law are not made; or
n
we have not received all the information and explanations we require for our audit.
n
Andrew Stickland Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor Gatwick United Kingdom Date: 19 September 2013 BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
30
Church Army Annual Report 2012/2013
Statement of Financial Activities
for the year ended 31 March 2013
statement of financial activities
Consolidated statement of financial activities
Income and Unrestricted Restricted Total Total expenditure account funds funds 2013 2012 Note £000 £000 £000 £000 Incoming resources from generated funds: Voluntary income Donations 668 1,147 1,815 1,871 Legacies 530 20 550 692 Activities for generating funds 82 - 82 38 Investment income 2 408 43 451 388 Incoming resources from charitable activities: Fees for services 728 1,984 2,712 2,596 Trading income 33 - 33 16 Other incoming resources 3 43 6 49 46 Total incoming resources 5 2,492 3,200 5,692 5,647 Resources expended: Charitable activities: Field evangelism 5 2,544 1,029 3,573 4,055 Training evangelists 5 907 68 975 980 Homeless projects 5 826 2,005 2,831 3,199 Total charitable expenditure 5 4,277 3,102 7,379 8,234 Costs of generating funds 4 943 36 979 759 Governance costs 5 37 3 40 39 Total resources expended 5 5,257 3,141 8,398 9,032 Net expenditure for the year 7 (2,765) 59 (2,706) (3,385) Gains and losses on revaluation of operational fixed assets 11 491 (18) 473 1,118 Gains and losses on revaluation and disposal of investment assets 12 575 197 772 451 Actuarial gains and losses on defined benefit pension schemes 10(c) (222) - (222) 133 Net movement in funds (1,921) 238 (1,683) (1,683) Funds at start of year 28,207 6,025 34,232 35,915 Funds at end of year 16, 17, 18 26,286 6,263 32,549 34,232 All of the above results are derived from continuing activities. There were no recognised gains and losses other than those stated above. The notes on pages 34 to 49 form part of these financial statements.
Church Army Annual Report 2012/2013
31
Balance Sheets
Balance Sheets at 31 March 2013
balance sheets
Group Society
2013 2012 2013 2012 Note £000 £000 £000 £000 Fixed assets Tangible assets 11 21,381 23,926 19,903 22,392 Investments 12 11,687 11,357 9,111 8,875 33,068 35,283 29,014 31,267 Current assets Debtors 13 716 495 697 590 Cash at bank and in hand 664 488 647 456 1,380 983 1,344 1,046 Creditors: amounts falling due within one year 14 (790) (860) (1,444) (1,413) Net current assets/(liabilities) 590 123 (100) (367) Total assets less current liabilities 33,658 35,406 28,914 30,900 Creditors: amounts falling due after more than one year 15 (1,100) (1,249) (1,100) (1,249) Net assets excluding pension asset 32,558 34,157 27,814 29,651 Pension (liability)/asset 10(c) (9) 75 (9) 75 Net assets 32,549 34,232 27,805 29,726 Funds Restricted 16 5,376 6,025 1,523 1,519 Unrestricted Designated funds 16 17,153 19,650 17,153 19,650 General funds 10,029 8,482 9,138 8,482 Total funds excluding pension reserve 32,558 34,157 27,814 29,651 Pension reserve 10(c) (9) 75 (9) 75 Total funds 16, 17, 18 32,549 34,232 27,805 29,726 These financial statements were approved and authorised for issue by the Board on 14 September 2013 and were signed on its behalf by: Peter Ridge Stephen Cottrell Trustee Trustee The notes on pages 34 to 49 form part of these financial statements.
32
Church Army Annual Report 2012/2013
for the year ended 31 March 2013
2013 2012 Note £000 £000 £000 £000 Net outgoing resources before other recognised gains and losses 20 (2,588) (2,545) Returns on investments and servicing of finance Property rentals received 256 233 Dividends received 169 173 Interest received 15 15 Interest paid (27) (29) Costs of property and investment income (314) (154) 99 238 Capital expenditure and financial investment Purchase of tangible fixed assets (52) (800) Purchase of investments (1,624) (2,110) Sale of tangible fixed assets 2,549 768 Sale of investments 2,188 3,914
cash flow statement
Consolidated Cash Flow Statement
Consolidated cash flow statement
3,061 1,772 Net cash flow before financing 572 (535) Management of net liquid resources Movement on cash deposits (247) 244 Financing New loans received - 310 Repayment of loans (149) (142) (149) 168 Movement in cash balances 21 176 (123)
Church Army Annual Report 2012/2013
33
Notes notes 34
1 Accounting policies (a)
Basis of preparation
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of land, buildings and investments, and in accordance with the Companies Act, the Statement of Recommended Practice “Accounting by Charities”, other applicable legislation and United Kingdom accounting standards.
(b)
Basis of consolidation
The consolidated financial statements represent the results and state of affairs of the Society and all of its subsidiary undertakings, which are consolidated on a line by line basis. Subsidiary undertakings comprise companies and trusts of which the Society and/or its nominees are sole members or trustees.
(c)
Fund accounting
The Society distinguishes between unrestricted funds, which can be used in accordance with the Society’s objects at the discretion of the trustees, and restricted funds which have been received by the Society or are held in trust for specific purposes. Further explanations of the nature and purpose of funds are set out in Note 16.
(d)
Tangible fixed assets and investments
Land, buildings and investments are revalued every year at the balance sheet date to reflect market value. Land and buildings have been valued at open market value on an ‘existing use’ basis by Mr Geoffrey Box, a member of the Society’s staff, and the directors have adopted this valuation. Listed and other traded investments have been valued at the middle market price at the close of business on the valuation date. Other investments are at directors’ valuation. Other tangible fixed assets are stated at cost less accumulated depreciation. Assets with a cost or value of less than £500 are not capitalised.
Unrealised surpluses and deficits arising on the revaluation of land, buildings and investments are taken to revaluation reserves and reflected in the Statement of Financial Activities. Revaluation surpluses and deficits are transferred to the income and expenditure account when they are realised. The profit or loss on disposal is the difference between sales proceeds and book value.
Depreciation is calculated so as to write off the cost or valuation of tangible fixed assets (other than freehold land and investment properties) on a straight line basis over their estimated useful economic lives as follows:
Freehold property
Leasehold property
50 years 50 years (or lease term if shorter)
Freehold improvements
10 to 20 years
Other tangible fixed assets
3 to 7 years
Fixed assets and investments are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the year in which it occurs.
(e)
Income
Donations and dividends are accounted for when received. Interest and tax recoverable are accounted for on an accruals basis.
Legacies notified to the Society are accounted for when they can be quantified with reasonable certainty and any related conditions have been met.
Church Army Annual Report 2012/2013
Income for the provision of services is recognised in the period to which it relates, and when received in advance is treated as deferred income.
Grant income, whether to fund revenue or capital expenditure, is recognised when it is receivable.
All of the income arises in the United Kingdom and Ireland.
(f) Expenditure All expenditure, including irrecoverable VAT, is accounted for on an accruals basis, and is allocated directly to the Society’s areas of work wherever possible. Support costs which cannot be directly allocated are apportioned to the areas of work on the basis of headcount, by reference to the particular constituencies served by each support function and making allowance for any specific services provided at project level.
Governance costs comprise auditors’ remuneration and expenses of Board members incurred in that capacity.
(g)
Pensions costs
The Society makes contributions to a defined benefit pension scheme administered by the Church of England but has no additional liability or asset in respect of any deficit or surplus in this scheme. Contributions in respect of this scheme are charged to the Statement of Financial Activities when they fall due.
The Society also operates a defined benefit pension scheme for certain staff, and has fully adopted Financial Reporting Standard 17: Retirement Benefits, the impact of which has been reflected throughout the financial statements. The difference between the fair value of the assets held in the scheme and the scheme’s liabilities measured on an actuarial basis using the projected unit method is recognised in the balance sheet as an asset or liability as appropriate. The carrying value of any asset is restricted to the extent that the Society can recover the surplus either through reduced contributions in the future or through refunds from the scheme. Changes in the pension asset or liability arising from factors other than cash contributions by the Society are charged to the Statement of Financial Activities in accordance with the standard.
The Society also operates a defined contribution pension scheme for certain staff. Contributions in respect of this scheme are charged to the Statement of Financial Activities when they fall due.
(h)
Foreign currencies
Transactions of foreign currencies are recorded using the closing rate of exchange at the year end. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date. Gains or losses on translation are included in the Statement of Financial Activities.
(i)
Operating leases
Rental charges are charged to the Statement of Financial Activities on a straight line basis over the life of the lease.
notes
(j) Taxation
The Society is not liable to corporation tax since all profits are exempt.
Church Army Annual Report 2012/2013
35
2 Investment income
2013 2012
£000 £000
Investment income
Listed investments
Unlisted investments
6 7
Bank interest income
9 8
Net returns from pension scheme assets (see note 10(c))
169 173
11 (33)
Property rental income
256 233
451 388
notes
3 Other incoming resources
2013 2012
£000 £000
Other income
49 46
49 46
4 Costs of generating funds
2013 2012
£000 £000
Costs of generating voluntary income
258 327
Costs of generating trading income
408 278
Investment and investment properties management costs
313 154
979 759
Costs of generating voluntary income include expenditure on the production and distribution of publications which have an educational as well as a fundraising purpose. Costs of generating trading income represent costs associated with the conference centre and social enterprise project which are both at an early stage. Investment management costs include rent collection, repairs and maintenance costs in relation to investment properties.
36
Church Army Annual Report 2012/2013
5 Allocation of income and expenditure
Income Expenditure 2013 2012 Direct Support Total Net Net
£000 £000 £000 £000 £000 £000
Field evangelism Centres of Mission
362
1,093
490
1,583
(1,221) (1,197)
Fresh expressions
335
1,054
393
1,447
(1,112) (1,480)
Other field evangelism
161
366
177
543
(382) (497)
858 2,513 1,060 3,573 (2,715) (3,174)
Training of evangelists 97 859 116 975 (878) (885) Homeless projects 2,916 2,613 218 2,831 85 (392) 3,871
5,985
1,394
7,379
(3,508) (4,451)
Cost of generating funds
-
912
67
979
(979) (759)
Governance costs
-
40
-
40
(40) (39)
General income
1,821
-
-
-
1,821 1,864
Net expenditure
5,692
6,937
1,461
8,398
(2,706) (3,385)
Support costs are analysed by category in Note 6 below.
notes
Total charitable activities
6 Analysis of support costs
2013 2012
£000 £000
Function
Senior management
485 308
Frontline project management
360 442
Communications
Property management
Administration (Finance/Personnel/IT)
164 179 74 184 349 549
Welfare
29 281
Total support costs
1,461 1,943
Administration costs includes exceptional restructuring costs, mainly redundancy of £121,000 (2012: £60,000). Support costs for each of the above functions are apportioned on the basis of headcount as described in note 1(f).
Church Army Annual Report 2012/2013
37
7 Net expenditure
2013 2012
£000 £000
Net expenditure is stated after charging/ (crediting):
Depreciation of fixed assets
486
524
Loss/(gains) on disposal of tangible fixed assets
(Profit) on disposal of investments
- (1,521)
Exceptional restructuring and pensions costs (see note 6)
-
60
Auditors’ remuneration for audit
31
30
Foreign exchange movements
Interest payable on other loans
36 43
- (4) 27 29
notes
8 Emoluments of directors/trustees and employees and related party transactions All 13 (2012: 12) members of the Board who are not Church Army employees (including the Chair) provide their services free of charge, but incurred expenses totalling £3,222 (2012: £3,417). As permitted by the Society’s Articles of Association, during the year 2 (2012: 3) members of the Board who are Church Army employees received emoluments (including benefits in kind but excluding pension contributions) of £75,687 in total (2012: £94,514). One director also benefitted from contributions to the defined benefit Church of England Funded Pensions Scheme, and one from contributions of £4,495 (2012: £4,495) to a defined contribution scheme. One employee had emoluments exceeding £60,000 in the current year (2012: nil). This long serving employee’s role was made redundant during the year and the emoluments include statutory notice and an enhanced redundancy payment in line with Church Army policy and applied to all redundancy situations. M K Russell, a director, received a loan from the Society of £11,000 in 2011 under the Society’s car loan scheme on the same terms as are available to other employees. The loan bears interest at 4.75% per annum, and the interest charged during the year was £338. The balance outstanding at 31 March 2013 was £7,217 (2012: £9,311). There are no other related party transactions that require disclosure. The Society does not have an ultimate parent undertaking.
9 Staff numbers and costs The average number of employees and their remuneration were as follows: Direct charitable activities Support for charitable activities Cost of generating funds
2013 2012 Numbers Numbers 118
33 25 7 11 158 169
2013 2012
£000 £000
Wages and salaries
3,904 4,057
Social security costs
345 372
Other pension costs (see note 10)
619 654
4,868 5,083
The above numbers include commissioned officers who are employed by the diocese in which they work but are partly funded by the Society. Part-time or part-funded staff are counted as appropriate fractions of a full-time or fully-funded post. 38
133
Church Army Annual Report 2012/2013
10 Pension costs Church of England Funded Pensions Scheme
Commissioned staff are members of the Church of England Funded Pensions Scheme administered by the Church of England Pensions Board. The Society makes contributions to this defined benefit scheme, but is unable to identify its share of the underlying assets and liabilities. The most recent actuarial valuation of this scheme was carried out as at 31 December 2009 and although contribution rates have subsequently increased, no additional liability falls on the Society in respect of pension provision for employees in this scheme. The total contribution to this scheme during the year was £482,000 (2012: £500,000).
(b)
Church Workers’ Pension Fund
Certain non-commissioned staff were until 30 September 2010 members of the Church Workers’ Pension Fund which is also administered by the Church of England Pensions Board. On that date, the Church Army sections of that fund were transferred to the Church Army Pension Scheme (see (c) below). The Society’s part of this scheme was closed to new members in 1997. The total cost of current service up to the date of transfer during the previous year was £10,000.
(c)
Church Army Pension Scheme
The Society operates a defined benefit scheme. Pension benefits are linked to the members’ final pensionable salaries and service at retirement (or date of leaving if earlier). The scheme was closed to new members in December 2003 and contributions for employees and employer are 6.5% and 18.9% of pensionable salary respectively.
The most recent formal actuarial valuation was carried out as at March 2011. The results have been updated to 31 March 2013 by a qualified independent actuary. The assumptions used were as follows:
notes
(a)
2013 2012 Annual rate of interest used for discounting
4.30% 4.60%
Annual rate of increase in salaries
3.80% 3.40%
Annual rate of increase in deferred pensions linked to RPI
3.30% 2.90%
Annual rate of increase in deferred pensions linked to CPI
2.30% 1.90%
Annual rate of increase in pensions in payment (RPI maximum 5%)
3.70% 3.60%
Annual rate of increase in pensions in payment (CPI maximum 5%) Mortality pre-retirement Mortality in retirement
2.70% 2.60%
AMC00/AFC00
AMC00/AFC00
S1PMA/SPFMA CMI Model
S1PMA/SPFMA CMI Model
2012 M/F [1%](yob)
2010 M/F [1%] (yob)
Life expectancy for a current 65 year old (years) Life expectancy at age 65 for a current 45 year old (years)
Male
22.0 22.0
Female 24.3 24.1 Male
23.4 23.4
Female 25.9 25.7
Expected annual return on assets
5.10% 4.70%
The overall expected return on assets assumption of 5.1 % as at 31 March 2013 has been derived by calculating the weighted average of the expected rate of return for each asset class. The following approach has been used to determine the expected return for each asset class: -
for fixed interest securities, current market yields
-
for equities, net dividend yield on the FTSE All Share Index plus RPI inflation plus 1% pa future dividend growth net of investment expenses
-
for cash, current Bank of England base rate. Church Army Annual Report 2012/2013
39
The assets of the scheme are invested in a diversified portfolio:
31 March 2013 Value
Proportion
31 March 2012 Value
Proportion
£000 £000
Equities
4,508
47% 3,859
47%
Bonds
3,646
44% 3,619
44%
Cash Total assets at market value The actual return on assets over the period was
576 8,730
9% 711 100% 8,189
9% 100%
785 407
Reconciliation to the balance sheet 2013 2012
notes
£000 £000 Market value of assets
8,788 8,189
Present value of liabilities
(8,797) (8,114)
Pension (liability)/asset recognised on the balance sheet
(9) 75
Irrecoverable surplus
- -
Pension (liability)/asset
(9) 75
Analysis of changes in the value of the Scheme liabilities over the year
2013 2012
£000 £000 Value of liabilities at start of year
8,114 7,534
Service cost
118 150
Interest cost
368 400
Member contributions
23 25
Benefits and expenses paid
(370) (419)
Actuarial losses/(gains)
544 424
Value of liabilities at end of year
8,797 8,114
Analysis of changes in the value of the Scheme assets over the year 2013 2012 £000 £000
40
Market value of assets at start of year
8,189 8,051
Expected return on Scheme assets
379 367
Actuarial gains/(losses)
406 40
Employer contributions
103 125
Member contributions
23 25
Benefits paid
(370) (419)
Market value of assets at end of year
8,730 8,189
Church Army Annual Report 2012/2013
The following amounts have been recognised in the performance statements for the year to 31 March 2013: Analysis of amount chargeable to operating deficit: 2013 2012 £000 £000 Current service cost
118 150
Total operating charge 118 150 Analysis of amount creditable to other finance income:
2013 2012
£000 £000 Expected return on pension scheme assets
379 367
Interest on pension scheme liabilities
(368) (400)
Net (charge)/credit
11
(33)
Analysis of amount recognisable in Statement of
Total Recognised Gains and Losses: 2013 2012 £000 £000 406
(40)
Actuarial (losses)/gains on liabilities
(544) (424)
Provision against amount to be recognised in balance sheet
(84) 517
Total amount recognised
(222)
133
notes
Actuarial gains/(losses) on assets
Movement in surplus during year: 2013 2012 £000 £000 75
Surplus recognised in scheme at beginning of year Movement in year:
Current service cost
(118) (150)
Contributions 103 125
Other finance income
11 (33)
Actuarial gains/(losses)
Provision against amount to be recognised
Surplus recognised in scheme at end of year
(138)
(384)
(84)
517
(151) 75
Church Army Annual Report 2012/2013
41
History of assets, liabilities, experience gains and losses 2013 2012 2011 2010 2009
£000 £000 £000 £000 £000
Market value of Scheme assets
8,788 8,189 8,051 2,696 2,253
Value of Scheme liabilities Surplus in the Scheme
(8,797) (8,114) (7,534) (2,466) (1,956) (9) 75 517 230 297
Gains/(losses) arising on Scheme liabilities: Due to experience
85 358 (14) 124 (130)
% of liabilities
1% 4% 0% 5% (7%)
Due to change of basis % of liabilities
(629)
(782)
(7%) (10%)
282
(476)
7
4% (19%) 0%
Experience gains/(losses):
notes
Arising on Scheme assets % of assets
406 5%
40
(6)
339
(21)
0% 0% 13% (1%)
The amounts shown in the table above of assets at the earliest date have not been restated to include quoted securities valued at bid-price rather than mid-market value. The cumulative amount of net actuarial gains and losses recognised since 1st April 2002 is £9,000. Future funding obligation The last actuarial valuation of the Scheme was performed by the Actuary for the Trustees as at 31 March 2011. The Company agreed to pay annual contributions of 18.9% of members’ pensionable salaries together with contributions of £3,000 each month to cover the expenses and levies paid from the Scheme from 1 January 2012 (previously 25.4% of members’ pensionable salaries plus £2,500 per month for expenses). Based on the current salary roll, the employer expects to pay approximately £91,000 to the Scheme during the accounting year beginning 1 April 2013. (d) Church Army stakeholder scheme
42
The Society also has a defined contribution stakeholder scheme. The total contribution to this scheme during the year was £34,000 (2012: £29,000).
Church Army Annual Report 2012/2013
11 Tangible fixed assets
notes
Group Land and Freehold Other fixed buildings improvements assets Total £000 £000 £000 £000 (valuation) (cost) (cost) Cost or valuation At beginning of year 21,142 2,310 1,407 24,859 Additions 6 - 46 52 Revaluation in year 323 - - 323 Disposals (2,566) (18) (45) (2,629) At end of year 18,905 2,292 1,408 22,605 Depreciation At beginning of year - 99 834 933 Charge for year 248 111 127 486 Revaluation in year (150) - - (150) Disposals - - (45) (45) At end of year 98 210 916 1,224 Net book value At 31 March 2013 18,807 2,082 492 21,381 At 31 March 2012 21,142 2,211 573 23,926
Society Land and Freehold Other fixed buildings improvements assets Total £000 £000 £000 £000 (valuation) (cost) (cost) Cost or valuation At beginning of year 19,801 2,310 762 22,873 Additions 6 - 45 51 Revaluation in year 323 - - 323 Disposals (2,566) (19) (45) (2,630) At end of year 17,564 2,291 762 20,617 Depreciation At beginning of year - 99 382 481 Charge for year 230 111 88 429 Revaluation in year (151) - - (151) Disposals - - (45) (45) At end of year 79 210 425 714 Net book value At 31 March 2013 17,485 2,081 337 19,903 At 31 March 2012 19,801 2,211 380 22,392 The basis of valuation of land and buildings is set out in note 1(d). Other fixed assets comprise furniture, fixtures and fittings, motor vehicles and computer equipment.
Church Army Annual Report 2012/2013
43
notes
The value of land and buildings can be analysed as follows: Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Operational properties (included above) Freehold 17,712 19,710 16,371 18,369 Long leasehold 1,194 1,432 1,194 1,432 18,906 21,142 17,565 19,801 Investment properties (included in investments) Freehold 991 980 991 980 Short leasehold 17 17 17 17 1,008 997 1,008 997 Total 19,914 22,139 18,573 20,798 If the land and buildings (including investment properties) were stated on a historical cost basis the amounts would be: Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Cost 11,882 11,882 11,882 11,882 Depreciation (3,647) (3,647) (3,647) (3,647) Net book value 8,235 8,235 8,235 8,235
12 Fixed asset investments Group Society 2013 2012 2013 2012 £000 £000 £000 £000 At beginning of year 11,357 12,954 8,875 10,436 Additions 1,624 2,110 1,327 1,679 Disposals (2,066) (4,158) (1,665) (3,612) Gains on revaluation 772 451 574 372 At end of year 11,687 11,357 9,111 8,875 Group Society 2013 2012 2013 2012 £000 £000 £000 £000 UK listed investments at market value 3,933 3,681 2,998 2,897 Overseas listed investments at market value 5,772 5,985 4,338 4,550 Unlisted traded investments at market value 471 439 305 267 Investment properties (see note 11) 1,008 997 1,008 997 Cash deposits 388 141 348 50 Equity share mortgages at cost 115 114 114 114 11,687 11,357 9,111 8,875
44
Church Army Annual Report 2012/2013
The cost of the Group’s investments is £9,209,000 (2012: £9,209,000). Unlisted traded investments represent units in approved Charities Unit Trusts and in a commodities fund. There are no programme-related or mixed-purpose investments - all are for investment purposes only. There are also investments which represent 60,250 (2012: 50,250) shares of £1 each representing a 50% interest in Bekonscot Limited which operates a model village and is incorporated in England. Half of the net profit of this company after prior charges is covenanted to the Society up to a maximum of £50,000. The Society’s share received during the year was £35,000 (2012: £35,000) and is included within donation income, and £46,000 is expected to be received in September 2013 based on the results for the year ended 31 December 2012. The net assets of this company at the year end were £100,500 (2012: £100,500). The Society has no responsibility for the management of this company and it has been accounted for as an associated undertaking. The Society has two subsidiary companies which have been dormant since incorporation and which have no paid-up share capital. All of the Society’s other subsidiary undertakings are trusts of which the Society is sole trustee. Accordingly, the Society has no investment in subsidiary undertakings. Investments representing more than 5% of the portfolio by value at 31 March 2013 were as follows: Group
£000 Society
£000
887
1.25% Index-linked Treasury 2017
654
1.25% Index-linked Treasury 2055
524
1.25% Index-linked Treasury 2055
417
CG Portfolio
598
CG Portfolio
462
13 Debtors
notes
1.25% Index-linked Treasury 2017
Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Amounts falling due within one year Trade debtors 182 81 68 46 Amounts owed by subsidiary undertakings - - 100 134 Other debtors 127 70 122 66 Prepayments and accrued income 342 279 342 279 651 430 632 525 Amounts falling due after one year Other debtors 47 47 47 47 Prepayments and accrued income 18 18 18 18 716 495 697 590 372
Church Army Annual Report 2012/2013
45
14 Creditors: amounts falling due within one year
Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Bank loan (see note 15 below) 161 161 161 161 Trade creditors 180 228 172 221 Tax and social security 94 97 92 97 Amounts owed to subsidiary undertakings - - 687 562 Other creditors 65 42 45 42 Accruals and deferred income 290 332 287 330 790 860 1,444 1,413
notes
15 Creditors: amounts falling due after more than one year
46
Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Bank loan payable between 2 and 5 years 645 645 645 645 Bank loan payable after 5 years 455 604 455 604 1,100 1,249 1,100 1,249 The bank loan is repayable by instalments until 2021, carries interest at bank base rate plus 1.5% pa, and is secured over certain properties of the Society which have a book value of £2,650,000. The Society holds a variety of normal financial instruments as part of its day to day activities, principally investments, bank deposits and accounts and trade creditors and debtors. The investment managers at times use hedges as part of a cautious investment strategy to reduce the underlying risks in the portfolio, but do not actively seek to invest in hedge funds. The Society has no significant exposure to credit risk, liquidity risk or cash flow risk, and its price risk exposure largely relates to the value of investments. Investments are monitored by an investment committee and cash flow is monitored as part of the financial management of the Society’s operations.
Church Army Annual Report 2012/2013
16 Movement in funds
notes
Balance Movement in resources Balance 1 April Incoming Outgoing Reval- Transfers 31 March 2012 uations 2013 £000 £000 £000 £000 £000 £000 Unrestricted funds Operational property and other fixed assets net of loans 19,650 - (447) 484 (2,534) 17,153 Contingencies and commitments - - - - - Set aside for new initiatives - - - - - Total designated funds 19,650 - (447) 484 (2,534) 17,153 Free reserves 8,557 2,514 (4,344) 759 2,534 10,020 Total unrestricted funds 28,207 2,514 (4,791) 1,243 - 27,173 Restricted funds Subsidiary trusts: Portman House Trust 1,891 1,372 (1,654) (403) - 1,206 Discretionary Grants Fund 964 17 (92) 86 - 975 Gurney Trust 1,338 (10) (87) 107 - 1,348 Others 313 11 - - - 324 Total subsidiary trusts 4,506 1,390 (1,833) (210) - 3,853 Retirement property fund 1,189 - (38) (10) - 1,141 Other restricted funds 330 1,788 (1,736) - - 382 Total restricted funds 6,025 3,178 (3,607) (220) - 5,376 Total funds for the Society 29,726 4,302 (6,565) 1,233 - 28,696 Total funds in subsidiary trusts 4,506 1,390 (1,833) (210) - 3,853 Total funds for the Group 34,232 5,692 (8,398) 1,023 - 32,549
The designated funds comprise the amounts tied up in fixed assets (net of any related borrowing) which would otherwise be in general funds, plus any amounts which need to be set aside for contingencies and commitments. There are no longer funds designated for new initiatives. Transfers in the table above represent transfers between specific funds and reclassifications when funds are used for or released from a designated use. Portman House Trust operates the project for homeless women at Marylebone. The Discretionary Grants Fund is an amalgamation of various restricted funds for the welfare benefit of current and retired officers and staff. The Gurney Trust is for the benefit of women in need, and the income from its investments provides additional income for the Marylebone Project. Other restricted funds and other trusts are used to fund specific projects in accordance with the instructions of the donors, settlors or trustees.
Church Army Annual Report 2012/2013
47
17 Reserves
Group Society 2013 2012 2013 2012 £000 £000 £000 £000 Income and expenditure account 16,709 19,058 15,318 17,328 Revaluation reserve 15,840 15,174 12,487 12,398 32,549 34,232 27,805 29,726
18 Analysis of funds
notes
General Designated Restricted Total £000 £000 £000 £000 Tangible fixed assets - 18,414 2,967 21,381 Investments 9,111 - 2,576 11,687 Current assets 1,548 - (168) 1,380 Current liabilities (630) (161) 1 (790) Long-term liabilities - (1,100) - (1,100) Pension asset (9) - - (9) Net assets 10,020 17,153 5,376 32,549
19 Commitments and contingencies
Lease commitments At 31st March 2013 the Group had lease agreements in respect of various properties, for which the payments extend over a number of years. The annual commitments were as follows: 2013 2012 £000 £000 Within one year 79 79 Within two to five years - 32 79 111
Contingencies Portman House Trust has received Social Housing Grant and similar capital grants, part of which would be repayable if the accommodation to which they relate were sold or closed. The maximum amount repayable at 31 March 2013 would be £305,000 (2012: £305,000). This has not been provided since the Group has no intention of triggering a repayment. In 2010, Westminster City Council provided a grant of £194,000 for the refurbishment of part of the ground floor of Elgood House under their “Places of Change” scheme. This has created a legal charge over the building, under the terms of which we have to continue to use the building as a homeless project until 2015, otherwise a repayment will be triggered.
48
Church Army Annual Report 2012/2013
20 Reconciliation of net expenditure to net cash outflow from operating activities Net expenditure Interest payable Investment and property income Costs of investment and property income Depreciation Loss/(gain) on disposal of operational fixed assets Movements in defined benefit pension scheme funding (Increase)/decrease in debtors Increase/(decrease) in creditors Net outgoing resources before other recognised gains and losses
2013 2012 £000 £000 (2,724) (3,385) 27 29 (451) (388) 314 154 486 524 36 43 15 25 (221) 306 (70) 147 (2,588) (2,545)
21 Analysis of net funds and reconciliation to cash flow
notes
Balance Balance 1 April Cash 31 March 2012 flow 2013 £000 £000 £000 Cash at bank and in hand 488 176 664 Cash deposits 141 247 388 Net cash balances 629 423 1,052 Debt due within one year (161) - (161) Debt due after 1 year (1,249) 149 (1,100) Net funds (781) 572 (209)
22 Results for the Society only No separate Statement of Financial Activities has been prepared for the Society as permitted by Section 408 of the Companies Act 2006 and paragraph 397 of the Statement of Recommended Practice for charities. The Society’s gross income for the year was £3,304,000 (2012: £3,508,000) and its retained deficit was £1,696,000 (2012: £2,041,000).
Church Army Annual Report 2012/2013
49
Get involved
There are many ways you can partner with us as we share our faith through words and action
Get involved
Pray for us
Prayer support is absolutely vital to our work and we want to pour out our hearts to God to see this nation changed. Please partner with us in this. You can sign up to our Prayer Diary which is available at www.churcharmy.org.uk/prayers or by calling 0300 123 2113.
Sign up for resources
Church Army produces a range of resources, all of which are distributed free of charge to a wide readership throughout the United Kingdom and Ireland. Our main publication is Shareit! magazine, which is published twice a year and is full of inspirational stories about our work. To find out more, visit www.churcharmy.org.uk/resources or telephone 0300 123 2113
Follow us
Keep in touch with what we’re doing and what you can do to help: Follow us on Twitter:@ChurchArmy Join our growing Facebook group for the latest news: www.facebook.com/churcharmy
Volunteer with us
Giving your time, skills and creativity can make an amazing difference to people’s lives – why not get involved? Across the country we have hundreds of volunteers working alongside our evangelists. For more information, please contact our Vocations and Volunteering Team by telephoning 0300 123 2113 or visiting www.churcharmy.org.uk/volunteering
Become a parish representative
We need as many people as possible to become parish representatives within their churches – to tell the story of what we do and how our work is impacting people. Whether it’s distributing literature, encouraging prayer support or fundraising, if you would like to help, please email caa@churcharmy.org.uk or telephone 0300 123 2113.
Give to us
Church Army relies on voluntary donations to continue its pioneering work. No matter how you are able to support us, and whatever you can afford, you can be assured that your partnership contributes to transforming lives with the joy and hope of Christ’s love. To donate, please visit www.churcharmy.org.uk/donate or call 0300 123 2113.
50
Church Army Annual Report 2012/2013
Barbara from our Church on the Bus project in Derbyshire which supports the homeless. This year Barbara has made a commitment to follow Jesus and has been baptised.
Church Army Annual Report 2012/2013
51
Contact us Church Army Wilson Carlile Centre 50 Cavendish Street Sheffield S3 7RZ Tel: 0300 123 2113 Email: info@churcharmy.org.uk Web: www.churcharmy.org.uk Church Army is a Registered Charity Nos. 226226 & SC040457 A Company Limited by guarantee, registered in England & Wales No: 37169