Annual Report 2014 by Church Army

annualreport Church Armyâ&#x20AC;&#x2122;s report and accounts, for the year ending 31 March 2014, incorporating the Strategic Report.

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.

Our work includes:

• 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.

• homelessness • helping women involved in prostitution • housing estates • self-harm prevention • night-time street ministry • local church ministry • children and young people • schools outreach • drug and alcohol prevention • bus projects • older people • family breakdown prevention

Other key work includes: • research into evangelistic initiatives • church planting and fresh expressions • providing evangelism training and resources for the wider church • developing Centres of Mission nationwide

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

Report of the trustees and Strategic Review

31 Board members and officers

35 Statement of financial activities 36 Balance sheets 37 Cash flow statement

contents

33 Auditorsâ&#x20AC;&#x2122; report

38 Notes 54 Get involved

Church Army Annual Report 2013/2014

welcome

Welcome from the Chair and Chief Executive This past year has been one of real encouragement and challenge for Church Army and for those who we support. With increasing numbers of people struggling to afford rising food and energy costs as well as changes to the benefits system, our homeless projects have experienced a great demand providing 47,450 nights of accommodation to those most vulnerable in our society.

7% (£127k) this year from £1.8m to £1.9m. Breaking this figure down, income from trusts has increased by 3% (£45k), donations from individuals have increased by 6% (£36k), and income from other sources including the Church Commissioners has increased by 67% (£88k). The only area which has seen a fall in income is donations from churches which has reduced by 7% (£26k), £379k compared to last year £405k.

Yet, our homeless projects are not just about offering people temporary relief. As we demonstrate the gospel practically to people we journey with them for the long-term and we are pleased to have resettled 84 women back into independent living this year through our Marylebone Project in London. Praise God! If you turn to page 11 you can read Zoe’s story of transformation.

We’ve also been blessed to see income from legacies more than double this year from £550k to £1.4m after several years of decline. This is a real reflection of the sacrificial giving of our supporters who we are so grateful to God for.

This year has also seen us developing the DARE strategy as outlined in last year’s Annual Report; Doing evangelism, Advocating evangelism, Resourcing evangelism and Enabling evangelism. Highlights of this include me, as Church Army Chief Executive, joining the Archbishops’ Evangelism Task Group which is working hard to equip those in the Church of England to share the gospel and to bring people to a living faith in Jesus Christ (page 15). Alongside this our Research Unit has published their report on the impact of fresh expressions as part of the Church of England’s Church Growth Research Programme which has attracted significant attention national and internationally (page 16). We pray this research will be a blessing and challenge to the church. We have also been reimagining our MissionBased Training Programme and Xplore Training Programme for young adults to make them more accessible to greater numbers of people so that we can release more gifted evangelists into the wider church. You can read about our future plans on page 19.

We continue to implement a five-year plan to reduce the overall operating deficit. This was approved by Church Army’s Board and Senior Leadership in 2012. So, as we look ahead to 2014/2015, please do continue to pray for our work with those on the margins so that many more may come to know Jesus as their Lord and Saviour. It is only through a living relationship with Jesus that people can find true hope and everlasting peace. May all we do be for his glory and for the extension of his kingdom. Thank you once again for your partnership in the gospel. Yours in Christ,

The Rt Rev Stephen Cottrell, Canon Mark Russell, Bishop of Chelmsford and Chief Executive Chair of Church Army

Financially, there is good news to report, with our total income during the period 1 April 2013 to 31 March 2014 rising 18% from £5.7m in 2012/2013 to £6.8m. This is in part thanks to the generosity and faithfulness of our supporters as our donation income has increased by

Front cover image: Craig from Skelmersdale in Lancashire, who has become a Christian thanks to our Evangelist, Peter Bone.

Church Army Annual Report 2013/2014

Above Right: Mark Russell at The Marylebone Project for homeless women in London where they receive training in catering through our social enterprise

Our DARE strategy: doing, advocating, resourcing and enabling evangelism Three years ago, in 2011, Church Army’s Senior Leadership Team and Board launched the DARE strategy: doing evangelism, advocating evangelism, resourcing evangelism and enabling evangelism with the aim of better fulfilling Church Army’s mission: “to see people come to a living faith in Jesus Christ”. Through the DARE strategy we also hope to recapture the original vision of our founder, Wilson Carlile, to train and enable the wider church to do evangelism for themselves as well as training our own evangelists. Therefore, our main focus as a charity has been on implementing this strategy and our staff and evangelists have been working hard as they’ve endeavoured to turn it into operational reality. All of this has been done in the context of Church Army now being a Mission Community within the Anglican Church which is open to anyone with a passion for evangelism. You can read more about our Mission Community on page 21.

report of the trustees

Report of the trustees and Strategic Review

The following section of this Annual Report will look at each of the four DARE objectives and how we are fulfilling them.

Ellie and Leona at the Edward Street youth club in Sheffield

Church Army Annual Report 2013/2014

Objective 1: Doing evangelism report of the trustees

In last year’s Annual Report we set out the following four objectives: We will continue to undertake evangelism through our Centres of Mission, partnerships and opportunities provided through other organisations.

We will continue to demonstrate God’s love unconditionally to all; particularly through our work in communities, with the homeless and with vulnerable people.

We will measure the outcomes of our evangelism through the establishing and growing of new Christian communities and stories of changed lives.

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.

Where we are doing evangelism Activities in Scotland Four of our evangelists work in Scotland. We also run the Grafted Project, based in Newcastleton and Hawick in the Borders which is one of our Centres of Mission. Church Army is registered with the Office of the Scottish Charity Regulator.

Activities in Ireland Twenty seven of our evangelists 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 and Lisburn Centres of Mission.

Church Army Annual Report 2013/2014

The Bradford Centre of Mission - The Sorted Project Having dabbled in Satanism as a teenager, Carl Firth, 21, shares with us how he came to faith through our Sorted project in Bradford

One day at school, Immanuel Community College, my friends were in the playground when a Church Army Evangelist, Andy Milne, who was visiting the school, came and chatted with us. He told us about a new group he was starting on Friday evening for young people to get together and skate, play football, listen to music and talk about God. Andy himself was a great skateboarder and we wanted to learn from him, so a friend and I decided to go along. After that, my journey of coming to faith was a bit of a bumpy road. For a while I was in a really dark place and got in with a group of friends who were into Satanism. Things began spiralling out of control and eventually I reached a point where I realised it was messing my head up. One night at Sorted, when I was 16, I asked Andy to pray for me as I couldn’t keep living that way anymore. When he prayed for me it felt like I was being released from all the bad stuff and afterwards things seemed beautiful, light and joyful.

Life after that night was still up and down, but slowly God began to change me, and as my love for Jesus grew so did my love for others. My sense of self-worth also grew as I realised I was valuable to God. And my family, none of who are Christians, could see the change in me. At this point, Sorted as project had also been growing and had now become an established youth church run by the young people for young people. So as my faith grew I began to get involved in volunteering and helping to lead groups. Andy and another Church Army Evangelist at the project, James Hawksworth, really invested time in me and eventually taught me how to write and give talks for Sorted and how to pray for people. And this past year has also been really important for me, as I’ve been employed as a Sorted youth leader which is brilliant. I’m really excited about what the future holds for Sorted – it is providing young people with a fresh and relevant Christian community and a gateway for them to find out about Jesus. Most of those we work with have no clue about Christian things and many of them have troublesome home lives. My dream for each young person we work with is to see them come to faith and be nurtured into the Christian leaders of the future.

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I first heard about the Sorted project when I was 13 years old – although at that point in my life I hadn’t ever really thought about God or faith.

Activities in Wales Nine of our evangelists are based in Wales, together with Church Army Residential Services for homeless young people and the Amber Project for young people who self-harm, both based in Cardiff. In addition the Valley of Hope project in the Welsh Valleys works mainly with homeless ex-prisoners.

Activities in England Throughout England we have 244 evangelists and nine Centres of Mission, these are located in Bradford, Chester, Greenwich, Newcastle, Selby, Southampton, Thanet, Warwick and a project in the North of England working with vulnerable women and those involved in prostitution. We also run The Marylebone Project in London, one of the largest homeless hostels for women in the United Kingdom.

Church Army Annual Report 2013/2014

The Craigavon Centre of Mission, Northern Ireland

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Bernie was helped by Church Army after his marriage broke up and he began drinking. “The first time I met Brian from Church Army was during a really low point in my life. My marriage had recently broken up and I found myself drinking a lot. My world felt pretty empty and I had little to fill my days with as I didn’t have a job. “During this time, Brian set up a lunch club at St Saviour’s Church in Craigavon, where people from the nearby estates could get together and share food. I decided to go along, and over the past year-and-a-half it has been a really good place to meet new friends. It is also one of the only times of the week that I can enjoy eating a meal with other people. “I’ve started going to the men’s breakfast each month and there have been some really interesting people telling us about their faith, including a rugby player, kick boxer and a former prisoner. Throughout all of this Brian has gone out of his way to visit me each week and

has helped me sort myself out. I can’t thank him enough.” These incredible words of hope from Bernie are just one story of a life impacted by our team at our Craigavon Centre of Mission in Northern Ireland. Our Craigavon Centre of Mission is based at St Saviour’s Church, which is surrounded by housing estates constructed in the 1960s as part of a new town development. However, sadly the development failed to meet expectations, with less than half of the building work being completed due to unemployment, a lack of new residents and the start of the troubles. All of this has left a legacy of hopelessness and deprivation. Yet our team of Evangelists, Myrtle Morrison, Matt Rowley, and until recently Brian Wisener, are working hard to change this as they share their faith through words and action. By working with the local church, Myrtle and Matt are continuing to reach and unite the community through ministries including school assemblies, hospital chaplaincy, children’s and youth work and house-to-house visiting.

Kids Alive in Guildford, Surrey In the past year children and families at Emmanuel Church in Guildford have been in a Jungle Adventure with Chip the Giant Chipmunk, trained the children to rescue their friends for Jesus in Rescue Rangers and been Under the Sea looking for deep questions with Terry the Turtle. Evangelist, John Marrow, tells us more about the Kids Alive service which he leads. Since 2006, I have been based in Guildford working with children and families in schools and through the local church. Part of my role includes leading Kids Alive, a weekly after school church gathering for families who don’t connect with the church on Sundays.

fun, not like the church I went to when I was young – much better! We don’t do many church things because my husband doesn’t believe. We can’t go to church on a Sunday so Kids Alive is my way of going to church for myself and the kids.”

It’s a fast moving, action-packed children’s church programme, full of energy and fun and very much Jesus-focused. We use drama, songs, puppets and storytelling to creatively explain the truths of the Bible.

“We’ve been coming for four years now; my children have grown up with John and Kids Alive. They have such a great time with the songs and the stories. It’s a fantastic way for the children to learn about God and the Bible. Kids Alive is an important part of our Christian lives.”

Our aim is to build Christian community, make church accessible and provide children and their parents with the opportunity to hear and respond to the gospel.

What the children say

What the parents say

“Kids Alive is a friendly place where I can learn about Jesus and God with cool songs and great stories.” Alexandra, age six

“Kids Alive is great, lively, silly and just what the children need to let off steam after a day at school. It’s a place to make friends. It’s made

“Kids Alive is fun. I like the praying and doing the actions to the songs. I like answering questions. I like the puppets doing a song.” Daniel, age five

Church Army Annual Report 2013/2014

report of the trustees Abigail at Kids Alive Church Army Annual Report 2013/2014

report of the trustees Marta (volunteer) and Luchia at The Marylebone Project taking part in the Munch social enterprise which provides women with catering training 10

Church Army Annual Report 2013/2014

Our homeless work During the past financial year, Church Army has remained committed to its homeless projects; namely The Marylebone Project in London, The Valley of Hope Project in Wales, Church Army Residential Services in Cardiff and Church on the Bus in Derbyshire.

Last year we reported that the project had successfully resettled 96 women back into independent living. This year this figure has fallen slightly to 84 women, yet we are still proud of this achievement as there is an on-going shortage of available move on accommodation in the London area. We are also pleased to report that last year we were able to offer 40,515 bed nights to women and our four emergency beds were occupied for 90 per cent of the time which equates to 1,314 nights of accommodation provided.

40,515

zz zz

90%

Spiritually the project remains committed to enabling women to find out more about Christianity through its chapel, regular visits from evangelists and chaplains and close connections with local churches.

* Name changed

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Alongside the accommodation element of The Marylebone Project, our day centre continues to provide women with practical advice, showers, laundry facilities and a luggage store. This year it had 7,128 visits in total and supported 480 new clients – this high figure is a stark reflection of the ongoing problem of homelessness in our society. Our social enterprise, Made in Marylebone, also continues to grow as we provide women with training and employment experience.

My name is Zoe* and I have lived in London for many years. I became homeless when I was 15 years old and have suffered with alcohol addiction and mental health problems since then. I’m now in my 40s and have lived at The Marylebone Project for three years. It is much better than other hostels I’ve stayed in and the staff are very helpful and really have time for you. I also like the fact I still have my freedom – for example I still cook for myself as I have access to a shared kitchen. I’m now in the process of moving into my own flat which my key worker at the project has helped me to find. She will continue to support me once I have moved. I am really thankful to everyone at the project – if it wasn’t for them I’d still be on the streets drinking.”

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The project comprises residential accommodation for 111 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.

Zoe’s story

The Marylebone Project in London is our homeless project for women and is one of the largest of its type in the United Kingdom.

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The Marylebone Project

of e m erg

bed nights offered to homeless women

women settled into independent living

480

new clients at the day centre which had 7,128 visits in total

Church Army Annual Report 2013/2014

Church Army Residential Services

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Church Army Residential Services in Cardiff provides accommodation to homeless young people, aged 16 to 21-year-olds, who have nowhere else to call home and no-one else to look after them. The project has two stages of accommodation, the first of which, 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. The second stage of accommodation, Ty Danescourt, sees the young people living more independently while still having the support of staff if needed. This year the project has supported 83 young people; 50 through Ty Bronna, 16 through Ty Danescourt and 17 through the DC2 Floating Support Scheme. The project also runs regular activities for the young people and this year these have included; ice skating, arts and crafts, pamper evenings, healthy cooking workshops, barbecues and bike rides as well as trips to the

Church on the Bus

Church Army Annual Report 2013/2014

pantomime, beach and Oakwood Theme Park. All of this helps provide the young people with new experiences they wouldnâ&#x20AC;&#x2122;t otherwise be able to afford and boosts their confidence and self-esteem.

56 homeless young people provided with accommodation Church on the Bus in Derbyshire Church on the Bus is a Christian community which meets each week in Chesterfield, Matlock and Clay Cross. The project uses a bus as a drop-in for those who are vulnerable and homeless, where the team provide friendship and prayer alongside food, hot drinks, clothes and toiletries. It supports around 60 people each week. This past year the project has set up a weekly Art Ministry Club for those who visit the bus where they can get involved in drawing and craft. The aim of this club is to restore peopleâ&#x20AC;&#x2122;s creativity, build their self-esteem and open up gospel conversations.

Objective 2: Advocating evangelism In last year’s Annual Report we set out the following three objectives:

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.

We will also measure the outcome through press and media opportunities.

Inspiring church leaders 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 50 events this past financial year both in the United Kingdom, Ireland and internationally. These have included speaking engagements at conferences, theological colleges and diocesan events.

Encouraging the wider church: Church Army speaking engagements Encouraging churches in evangelism and inspiring them about our work is achieved through regular speaking engagements by our evangelists nationwide, whether through Sunday services or events during the week. In last year’s Annual Report we stated that 230 such engagements had taken place with the aim of increasing this figure by 10 per cent during the next year. Unfortunately we didn’t quite reach that target, but thanks to the hard work of our mission support officers and evangelists, we did carry out 185 speaking engagements. To counter this drop and to actively engage with more churches, we’ve launched Church Army September, a dedicated month where churches will be given the opportunity to hear about and pray for our work, hold fundraising events and benefit from a visiting speaker. Therefore, next year we hope to carry out 250 speaking engagements in churches.

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We will continue to challenge individuals and the church to reach out to their communities, sharing their faith through words and action.

Here is some feedback we’ve received: We were blessed by the visit of Evangelist, James Wilkinson and his family. He was just the right person for our service, which was held in the open air just outside our church. The Word he gave was appropriate and very well received by all who braved the weather. St Michael’s would love to see him again. I can’t say better that that! Peter at St Michael’s Norton, Stourbridge

185 speaking engagements in churches

Church Army Annual Report 2013/2014

report of the trustees Chief Executive, Mark Russell, preaching at a conference in the Diocese of Cork, Cloyne and Ross in Ireland 14

Church Army Annual Report 2013/2014

Archbishops’ Evangelism Task Group Evangelism has been high on the agenda for the Church of England this year following the creation of the Archbishops’ Evangelism Task Group which Church Army’s Chief Executive, Mark Russell, has been invited to be a member of along with Beth Keith, an associate of Church Army’s Research Unit.

Archbishop Justin, who has identified evangelism and witness as one of the three priorities for his ministry, said: “It is the task of this group to see every church and every Christian embrace their calling to be those who proclaim the gospel in word and deed. Nothing quite brings energy and renewal to a church than seeing people come to faith.”

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. During the past year our work and evangelists have appeared 183 times in the Christian and secular media. Our partnership with Christian Publishing and Outreach (CPO) who produce Inspire magazine has also continued. Inspire has a circulation of 55,000 and is a free inter-denominational magazine which is full of practical outreach, encouragement and faith-building stories. As part of our partnership we are allocated 10.5 pages in the magazine across the year and during 2013/2014 we have used them to effectively promote our Inside Out campaign which focused on doing mission in community.

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The group, chaired by the Archbishop of Canterbury, Justin Welby, comprises about a dozen experienced practitioners in evangelism. It was set up following a debate on intentional evangelism at the General Synod in November 2013. It intends to encourage and equip every church and Christian to proclaim the Good News of Jesus Christ. It is expected the group will meet five times during its first 12 months.

183 appearances in the media

HOPE partnership The past year has seen us form an exciting new partnership with HOPE – a movement which wants to bring churches together across the United Kingdom to transform their communities through doing mission in word and action. Throughout 2014, HOPE is organising a nationwide year of mission with thousands of Christians getting involved. With a shared vision and values, we have been pleased to promote HOPE’s initiatives and resources among our existing supporter base and encourage them to get involved. HOPE Executive Director, Roy Crowne, said: “HOPE’s dream is to mobilise the whole church. Together with Church Army, we can make a real difference in 2014. Let’s pray that we see communities transformed by Jesus’ love.”

Church Army Annual Report 2013/2014

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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 continuing to develop appropriate evangelism resources and source existing materials for the wider church.

Through our partnerships with other Christian organisations where together we can add value to each other’s work.

Through our frontline evangelists and national training staff offering appropriate training.

We will measure the success of these through the uptake of our resources, the number of training opportunities and the impact of our partnerships.

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.

Church Growth Research Programme Since 2011, Church Army’s Research Unit has been working on a project as part of the Church of England’s Church Growth Research Programme, surveying all the fresh expressions of church in 10 dioceses. An overall report of the team’s findings was published in January 2014 which attracted significant amounts of media attention and revealed that fresh expressions of church are growing and having a real impact throughout the church in the United Kingdom, Ireland and internationally. Between January 2012 and October 2013, Church Army’s Research Unit spoke to the leaders of 518 fresh expressions in the dioceses of Liverpool, Canterbury, Leicester, Derby, Chelmsford, Norwich, Ripon and Leeds, Blackburn, Bristol and Portsmouth. To read the full report, visit www.churcharmy.org.uk/fxcresearch Our Research Unit were therefore very pleased when the Church Growth Research Programme granted them further funding to survey fresh expressions of church in an additional 10 dioceses. The team have now begun work on this next stage of the project and we are looking forward to hearing their discoveries and findings. * Church Army’s Research Unit worked as part of the Cranmer Hall, St John’s College, Durham Consortium.

Church Army Annual Report 2013/2014

report of the trustees The team from Church Armyâ&#x20AC;&#x2122;s Research Unit with their report into fresh expressions of church Church Army Annual Report 2013/2014

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Now a Christian Our Now a Christian online course was launched in 2009 and since then has helped more than 3,233 people find out more about the Christian faith. People can sign up for free by visiting the Now a Christian website and they then receive an email every day for five weeks which helps them discover what it means to follow Jesus. Last year we had 521 people sign up to the course and this year sign ups have increased by 23 per cent to 641. Now a Christian has also proved a valuable follow-up tool for churches and our evangelists. Visit www.nowachristian.org

The Christian Enquiry Agency (CEA) Church Army’s Peter Graystone manages the Christian Enquiry Agency (CEA), with who we have a valued partnership. He oversees the website Christianity.org.uk – an online ‘encyclopaedia’ of everything enquirers might want to know about Jesus and the Christian faith. This year it has on average around 6,000 visitors per week, a three-fold increase on last year. About forty people per week make personal contact through the website and can receive a Gospel of Luke, the answer to a question, or an ongoing conversation by email during which faith can grow. An equal number ask for prayer and an email group of about 200 people is committed to praying for them. Negotiations are underway for a redesign of the website to incorporate films of people talking about what aspects of the Christian faith mean to them. Visit www.christianity.org.uk

The Christian Enquiry Agency website has had visitors per week on average

6,000

641 people signed up to Now a Christian – an increase of 23%

Snapshots – stories from the edge Snapshots - stories from the edge, is a free downloadable series which was launched in January 2014 by our Research Unit. Each issue tells the story of a fresh expression of church and reflects on what can be learnt from it by the wider church. The debut edition examined a community called Holy Ground that meets in Exeter Cathedral each month using alternative styles of worship, café church and extended times of quiet prayer. It tackled questions including; Can cathedrals and larger churches do fresh expressions? Can monthly church be a good way forward? How can we build community and not just put on meetings? Three editions of Snapshots will be published each year. Visit www.churcharmy.org.uk/snapshots

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. One of the aims of the centre is that it is a resource for evangelism and the wider church. During the past financial year, 50 organisations have used the centre including local and national charities, churches and other Christian organisations. Visit www.wilsoncarlilecentre.org.uk 18

Church Army Annual Report 2013/2014

Objective 4: Enabling evangelism Through our training programmes, both local and national.

Through our Xplore programme for 18 to 25-year-olds.

By offering volunteering opportunities in our Centres of Mission.

We will measure the success of these through the uptake of our volunteering and Xplore opportunities, and the success of our Mission-Based Training Programme in enabling those who complete it to be awarded a qualification that empowers them to get a post in ministry.

Mission-Based Training For the past six years Church Army has pioneered an innovative and exciting four-year MissionBased Training Programme to train the next generation of evangelists. Trainees are based in our Centres of Mission across the United Kingdom and Ireland and study for a foundation degree in evangelism accredited by the University of York St John. During the past year, 10 students have been enrolled on the programme. Training is a key part of our DARE strategy; to enable more people to be resourced and equipped to be evangelists. Therefore, the Church Army Board has decided to transition Mission-Based Training from a full-time, to a part-time programme, allowing students to train as Church Army Evangelists alongside their existing commitments. The Board’s vision is to empower more people to train with us, releasing more gifted evangelists into the wider church. This programme will begin in September 2014.

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Through our Mission-Based Training Programme.

Mission-Based Training is based on six key values, which will continue to underpin Church Army training, namely: training is rooted in missional context

the action/reflection learning model

training is accessible to all regardless of previous academic experience

Church Army formation

training for spiritual robustness

training embraces the breadths of the different traditions of the Anglican Church

Work has started to transition our training programme and we look forward to recruiting more people to train with Church Army, drawing on the riches of our Mission Community, and helping to resource the wider church.

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 readers, pastoral workers and parish evangelists. The team has taught modules in partnership with the diocese including: Ministry and Praxis, Leading Worship, Pastoral Care and Communicating the Christian Story.

Church Army Annual Report 2013/2014

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Xplorers attending an evangelism training weekend in Sheffield

Xplore Our Xplore training programme for 18 to 25-year-olds has been reimagined and relaunched this year to adapt to the changing gap year market and to make it more affordable and accessible to greater numbers of young adults. Previously the programme saw the Xplorers take part in mission placements in the United Kingdom, Ireland and Romania with residential teaching weeks built in. However, over the past few years Xplore Programme Leader, Neville Barnes, has been looking how to make evangelism training for young adults more accessible due to the financial difficulties many of them face, whether it’s student fees or unemployment. The result was the idea of developing a “year in” as part of our Xplore programme which offers an alternative to the traditional gap year. The Xplore “year in” allows young adults to remain living in their local community and to shape their evangelism around their own context, while receiving weekly online training and support from Xplore. Throughout the “year in” there’s also optional residential weekends and the opportunity to take part in mission placements in Romania and with Church Army evangelists across the United Kingdom and Ireland. In the first year of its new format, 15 young adults have taken part in Xplore. Visit www.xplore.org.uk Debs from Nottingham is an intern at St Nic’s church while working part-time as an administrator. She says: “Thanks to the Xplore year in, I’ve learnt how important prayer is to mission and reaching people in my community. Each week we have online Xplore groups where we receive teaching and can share stories, ideas and learn from each other’s experiences. It is a great encouragement to talk to the other Xplorers, who are excited about mission and who you know are praying for you and challenging you to act on what you’re learning. Day-to-day at St Nic’s church I lead an Alpha group and school kids’ club, teach people English in the community and help with the tea and toast outreach to clubbers on Friday nights.”

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Volunteering Across the country more than 1,000 Church Army volunteers are working alongside our evangelists, making a positive impact in their communities.

“The women we work with are some of the most vulnerable in our city: abused, sexually exploited, drug dependent and grieving for their children who have been taken into care. Faced with all of this, they are left heartbroken and desperate to see a change in their life. “At the project we aim to build long-term relationships with the women and share the Good News of Jesus and his radical grace. The project has its own house and weekly street outreach in the red-light district, as well as one-to-one visits. “The house is a place of refuge and belonging, a place where women experience sanctuary from the chaos of life on the streets. We aim to welcome, embrace and love unconditionally and without agenda. It is in reflecting the patient love of the gospel and walking alongside women in the valley and on the mountain, by being honest and real about pains and joys, that we see lives transformed by Jesus. “The house has a dedicated prayer room, living space, relaxation room and provides a drop-in facility with food, advice, craft activities, a listening ear and spiritual support. Just as God the Father welcomes us into his family through Jesus and prepares a place for us in the kingdom, we model a concept of ‘home’ and ‘family’ that is different to the one many women experience. It’s here they can realise their potential and are empowered to make positive choices, igniting hope for the future.”

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Becky’s story - a volunteer at our project in the North of England for vulnerable women and those involved in prostitution

Mission Community Church Army’s Mission Community exists to encourage, resource and enable Christians to share their faith with others through words and action. It is a movement of Christians across the United Kingdom and Ireland who are passionate about the Good News of Jesus Christ and who want to share it with their family, friends, neighbours, colleagues and with those in need in their communities. It is a place where people can be encouraged, resourced and gather together with other Christians who are committed to evangelism. During the past year the Mission Community has welcomed 74 new members and overall the Mission Community is now home to 426 members. Highlights for the Mission Community this year include: launching Discovery Days for people who are interested in joining the Mission Community

developing Fresh Bread teaching days for members

offering retreats for members

putting in place pastoral support for members

forming a strategy to promote Mission Community membership to the wider church

The appointment of Rt Revd Tim Thornton, Bishop of Truro, as the first Episcopal Visitor to the Mission Community. His role is to provide a critical friend who can journey with us and also ensure our Mission Community remains in good relationship with the wider church.

Church Army Annual Report 2013/2014

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Objectives for the coming year

2014-2015

Doing evangelism

We will continue to undertake evangelism through our Centres of Mission, partnerships and opportunities provided through other organisations.

We will continue to work with others to establish new Centres of Mission.

We will continue to demonstrate Godâ&#x20AC;&#x2122;s love unconditionally to all; particularly through our work in communities, with the homeless and with vulnerable people.

We will measure the outcomes of our evangelism through the establishing and growing of new Christian communities and stories of changed lives.

Advocating evangelism We will continue to challenge individuals and the church to reach out to their communities, sharing their faith through words and action.

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.

We will also measure the outcome through press and media opportunities.

We will measure the success of our advocating by it resulting in opportunities to enable people in evangelism.

We will measure success by the number of strategic engagements with church leaders and opinion makers, to encourage the wider church in evangelism.

The DNA youth club at our Selby Centre of Mission

Church Army Annual Report 2013/2014

The photography group at our Valley of Hope Project which works with ex-offenders

2014

By continuing to develop appropriate evangelism resources and source existing materials for the wider church.

Through our partnerships with other Christian organisations where together we can add value to each otherâ&#x20AC;&#x2122;s work.

Through our frontline evangelists and national training staff offering appropriate training.

We will measure the success of these through the uptake of our resources, the number of training opportunities and the impact of our partnerships.

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.

Enabling evangelism

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2015

Resourcing evangelism

Through our training programmes, both local and national.

Through our Mission-Based Training Programme.

Through our Xplore programme for 18 to 25-year-olds.

By offering volunteering opportunities in our Centres of Mission.

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. Church Army meets the criteria through: the advancement of the Christian religion

provision of services for homeless people

its youth and community work

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 all faiths and no faith. Examples of how we do this can be found on pages 6 to 21.

Church Army Annual Report 2013/2014

£ £

Financial review report of the trustees

Income £6,791,000 Investments £747,000 Housing Benefit for our homeless projects £1,434,000 Supporting People Grants for our homeless projects £1,168,000 Other fees for our homeless projects £62,000 Legacies £1,426,000 Donations from parishes £377,000 Individuals' donations £602,000 Donations from trusts £186,000 Donations to The Marylebone Project £228,000 Other £561,000

11%

3% 3% 9% 21% 6%

21%

17%

Expenditure £8,028,000 Centres of Mission Fresh expressions Other field evangelism Training Homeless projects Generating funds Governance

0.5% £1,509,000 £994,000 £527,000 £566,000 £3,383,000 £1,007,000 £42,000

13%

19%

12%

42% 7%

Church Army Annual Report 2013/2014

Church Army’s total income during the period 1 April 2013 to 31 March 2014 was £6.8m (2012/2013: £5.7m) a rise of 19%.

Our donation income has increased by 7% (£125k) this year from £1.8m to £1.9m. Breaking this figure down, income from trusts increased by 3% (£45k), donations from individuals increased by 6% (£36k), and income from other sources including the Church Commissioners increased by 67% (£70k). The only area which saw a fall in income was donations from churches which reduced by 7% (£26k), £379k compared to last year £405k.

Gift Aid income has reduced this year by 33% (£40k). In response, over the coming year, we will work hard to maximise the number of donors who Gift Aid.

The biggest proportion of our fee income, 41% (£2.6m), is made up of housing benefit and Supporting People Grants from Westminster and Cardiff Councils, which funds our homeless projects. The homeless projects are also our largest area of expenditure at 49% (£3.4m).

87% (£7.0m) of our total expenditure is spent on our charitable activities with the remaining 13% (£1m) spent on governance costs, investment management and fundraising. Although this compares favourably with similar organisations it remains our objective to reduce the amount spent on supporting our work and instead to direct more into charitable activities.

Our Centres of Mission are our second largest area of expenditure and account for 19% (£1.5m).

Total expenditure is in line with the five-year plan to reduce the overall operating deficit. This strategy was approved by Church Army’s Board and Senior Leadership in 2012.

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Income from legacies has more than doubled this year from £550k to £1.4m.

Volunteers Denise and Faye helping at a community cafe in Sheffield

Church Army Annual Report 2013/2014

Reserves policy

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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

The Group’s reserves have been analysed in note 16 between: Restricted funds (£5.7m), which may only be used for specific purposes;

Unrestricted designated funds (£16.7m), 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;

Free reserves £10.2m, which is above our target of £6.5m.

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 and other investments.

Fundraising activities Our fundraising activities are largely overseen by the Marketing Team which is based in our central office at the Wilson Carlile Centre in Sheffield. The Marketing Team, which is responsible for fundraising and communications, have continued to develop new campaigns alongside tried and tested methods built up over the years. They have also continued to focus on creating a culture of fundraising throughout the entire organisation, particularly among evangelists and staff. This year’s fundraising highlights include:

such as a picnic, Harvest Supper, barbecue or afternoon tea. The production of a fundraising pack and supporting materials such as posters, sponsorship forms and invitations which are available to download from our website and in print.

An increased number of sponsored events including entering a team into the London 10K run.

A focus on promoting fundraising opportunities and resources via social media to reach a new and growing audience.

The launch of Church Army September with the aim of increasing church engagement and donations by having a focused month of prayer and fundraising. This is achieved through visiting Church Army speakers, fundraising events and the distribution of Church Army promotional materials to churches.

The launch of Menu for Change in June 2013 – a fundraising initiative which encourages individuals and churches to host a food-related event in support of us

Church Army Annual Report 2013/2014

The Inside Out fundraising campaign which was launched in April 2013 and highlighted our evangelists’ work in communities. It included a spring appeal and autumn appeal which raised £31,766 in total. The Inside Out promotional film was shortlisted at The Jerusalem Awards 2013 in the best short form film category.

Investment policy and performance

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. 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 at a similar level. 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.

Structure, governance and management

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Investment returns, in a continuing fluctuating market, have ended the year poorly with the outlook as unpredictable as ever. Growth returns on the Ruffer portfolios for the year were 0.75% cent with the general fund and subsidiary trust portfolios performing similarly. Dividend interest on these investments did increase slightly over last year and the total return on the investments did meet the criteria laid down by Ruffer and accepted by the Board.

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 (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 32. 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.

Church Army Annual Report 2013/2014

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:

advises the Board on financial policy and its implications

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monitors the development of financial systems

approves the purchase and sale of properties and other capital expenditure within parameters determined by the Board

recommends to the Board the appointment and remuneration of external auditors

The Investment Committee monitors and reviews the policy and performance of the Societyâ&#x20AC;&#x2122;s investment managers.

The Senior Management Team is responsible for implementing Board decisions throughout the Society and the executive management of its operations and resources through its Management Team.

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.

The Society also has a President and Vice Presidents, who have no formal powers but act in an advocacy role within the wider church.

discuss and agree with the external auditors the nature and scope of their activities

considers with the Chief Executive and Deputy Chief Executive the implications of the auditorsâ&#x20AC;&#x2122; recommendations as set out in their management letter and monitors progress against agreed action.

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.

The wider church 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 secular and Christian organisations in the fulfilment of our objectives. Sometimes these are short-term cooperationâ&#x20AC;&#x2122;s 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.

Church Army Annual Report 2013/2014

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: An annual budget approved by the trustees and detailed monthly management accounts which report actual performance compared to budget.

Internal policies and procedures.

A process for the identification and management of risks.

An agreed level of delegated authority to committees and management.

Checks to ensure that transactions are properly authorised and recorded.

The principal risks identified in the Boardâ&#x20AC;&#x2122;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 voluntary income, light of income and available reserves. investments and properties. Five-year plan in place to reduce deficit. Volatility of the investment market and the The Boardâ&#x20AC;&#x2122;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.

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A strategic statement of the Societyâ&#x20AC;&#x2122;s purpose, values and vision supported by more detailed goals and objectives.

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 2013/2014

report of the trustees

Trustees’ responsibilities

Auditors

The Trustees are responsible for preparing the Annual Report the Financial Statements and the Strategic Report 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.

Observe the methods and principles of the Charities SORP.

Make judgments and estimates that are reasonable and prudent.

State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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.

Church Army Annual Report 2013/2014

In accordance with company law, as the trustee directors of the charitable company, we certify that: So far as we are aware there is no relevant audit information of which the Society’s auditors are unaware; and

We have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the Society’s auditors are aware of that information.

The Strategic Report is approved by the Trustees as Directors of Church Army. The Annual Report was approved by the Board on 12th September 2014 and signed on behalf of the Board of Trustees by:

The Rt Rev Stephen Cottrell, Bishop of Chelmsford and Chair of Church Army’s Board

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Coffee Stop at the Greenwich Centre of Mission led by Evangelist, Nick Russell Church Army Annual Report 2013/2014

Board Members and Officers

board members and officers 32

Patron HM The Queen President The Most Revd Desmond Tutu Vice-Presidents

The Rt Revd Bruce Cameron The Rt Revd Lord Eames of Armagh The Most Revd David Chillingworth The Most Revd Richard Clarke The Most Revd Alan Harper The Rt Revd & Rt Hon Lord Carey of Clifton The Rt Revd & Rt Hon Lord Hope of Thornes (Retired November 2013) 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 Most Revd Justin Welby (from November 2013)

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

* Employed by the Society throughout the time in office

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 2013/2014

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

board members and officers

Chief Executive and Chief Secretary

Registered number 37169 Charity numbers 226226/SC040457

Church Army Annual Report 2013/2014

Auditors’ Report

auditors’ report 34

Independent Auditors’ report to the Members and Trustees of Church Army We have audited the financial statements of The Church Army for the year ended 31 March 2014 which 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees and members as a body, for our audit work, for this report, or for the opinions we have formed.

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 Financial Reporting Council’s (FRC’s) Ethical Standards for Auditors.

Church Army Annual Report 2013/2014

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the FRC’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 2014 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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).

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report, incorporating the Strategic 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:

auditors’ report

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

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

the parent charitable company financial statements are not in agreement with the accounting records or returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or

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

Andrew Stickland Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor Gatwick United Kingdom Date: 16 September 2014 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).

Church Army Annual Report 2013/2014

Statement of Financial Activities

statement of financial activities 36

Consolidated statement of financial activities for the year ended 31 March 2014

Income and Unrestricted Restricted Total Total expenditure account funds funds 2014 2013 Note £000 £000 £000 £000 Incoming resources from generated funds: Voluntary income Donations 696 1,244 1,940 1,815 Legacies 1,360 66 1,426 550 Activities for generating funds 40 - 40 82 Investment income 2 549 48 597 451 Incoming resources from charitable activities: Fees for services 696 1,942 2,638 2,712 Trading income 113 - 113 33 Other incoming resources 3 37 - 37 49 Total incoming resources 5 3,491 3,300 6,791 5,692 Resources expended: Charitable activities: Field evangelism 5 2,001 1,029 3,030 3,573 Training evangelists 5 498 68 566 975 Homeless projects 5 1,378 2,005 3,383 2,831 Total charitable expenditure 5 3,877 3,102 6,979 7,379 Costs of generating funds 4 971 36 1,007 979 Governance costs 5 42 - 42 40 Total resources expended 5 4,890 3,138 8,028 8,398 Net expenditure for the year 7 (1,399) 162 (1,237) (2,706) Gains and losses on revaluation of operational fixed assets 11 866 105 971 473 Gains and losses on revaluation and disposal of investment assets 12 204 26 230 772 Actuarial gains and losses on defined benefit pension schemes 10(c) 90 - 90 (222) Net movement in funds (239) 293 54 (1,683) Funds at start of year 27,173 5,376 32,549 34,232 Funds at end of year 17, 18, 19 26,934 5,669 32,603 32,549 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 39 to 54 form part of these financial statements.

Church Army Annual Report 2013/2014

Balance Sheets

Balance Sheets at 31 March 2014

Group Society

balance sheets

2014 2013 2014 2013 Note £000 £000 £000 £000 Fixed assets Tangible assets 11 20,901 21,381 19,480 19,903 Investments 12 11,278 11,687 8.777 9,111 32,179 33,068 28,257 29,014 Current assets Debtors 13 1,035 716 993 697 Cash at bank and in hand 964 664 926 647 1,999 1,380 1,919 1,344 Creditors: amounts falling due within one year 14 (711) (790) (1,424) (1,444) Net current assets/(liabilities) 1,288 590 495 (100) Total assets less current liabilities 33,467 33,658 28,752 28,914 Creditors: amounts falling due after more than one year 15 (945) (1,100) (945) (1,100) Net assets excluding pension asset 32,522 32,558 27,807 27,814 Pension asset 10(c) 81 (9) 81 (9) Net assets 32,603 35,549 27,888 27,805 Funds Restricted 16 5,324 5,376 1,523 1,523 Unrestricted Investment revaluation reserve Designated funds 16 16,703 17,153 16,703 17,153 General funds 10,494 10,029 9,580 9,138 Total funds excluding pension reserve 32,522 32,558 27,807 27,814 Pension reserve 10(c) 81 (9) 81 (9) Total funds 17, 18 32,603 32,549 27,888 27,805 These financial statements were approved and authorised for issue by the Board on 12 September 2014 and were signed on its behalf by: Peter Ridge Stephen Cottrell Trustee Trustee The notes on pages 39 to 54 form part of these financial statements.

Church Army Annual Report 2013/2014

Consolidated Cash Flow Statement

cash flow statement 38

Consolidated cash flow statement for the year ended 31 March 2014

2014 2013 Note £000 £000 £000 £000 Net outgoing resources before other recognised gains and losses 20 (1,391) (2,588) Returns on investments and servicing of finance Property rentals received 344 256 Dividends received 175 169 Interest received 12 15 Interest paid (24) (27) Costs of property and investment income (339) (314) 168 99 Capital expenditure and financial investment Purchase of tangible fixed assets (66) (52) Purchase of investments (1,159) (1,624) Sale of tangible fixed assets 1,102 2,549 Sale of investments 1,943 2,188 Cash outflow on disposal of subsidary trust - 1,820 3,061 Net cash flow before financing 597 572 Management of net liquid resources Movement on cash deposits (145) (247) Financing New loans received - Repayment of loans (152) (149) (152) (149) Movement in cash balances 21 300 176

Church Army Annual Report 2013/2014

Notes

1 Accounting policies 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

notes

(a)

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. Based on historic performance, the rate at which income

Church Army Annual Report 2013/2014

from legacies is accrued prior to actual receipt, has been increased from 70% to 85% for residual legacies and remains 100% for pecuniary legacies.

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.

notes

(f) Expenditure

All expenditure, including irrecoverable VAT, is accounted for on an accruals basis, and is allocated directly to the Societyâ&#x20AC;&#x2122;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 auditorsâ&#x20AC;&#x2122; 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 schemeâ&#x20AC;&#x2122;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.

(j) Taxation

The Society is not liable to corporation tax since all profits are exempt.

Church Army Annual Report 2013/2014

2 Investment income

2014 2013

£000 £000

Investment income

Listed investments

Unlisted investments

6 6

Bank interest income

6 9

Net returns from pension scheme assets (see note 10(c))

175 169

66 11

Property rental income

344 256

597 451

3 Other incoming resources

2014 2013

£000 £000

Other income

37 49

notes

4 Costs of generating funds

2014 2013

£000 £000

Costs of generating voluntary income

181 258

Costs of generating trading income

487 408

Investment and investment properties management costs

339 313

1,007 979

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 a relatively early stage.

Investment management costs include rent collection, repairs and maintenance costs in relation to investment properties.

Church Army Annual Report 2013/2014

5 Allocation of income and expenditure

Income Expenditure 2014 2013 Direct Support Total Net Net

£000 £000 £000 £000 £000 £000

Field evangelism Centres of Mission

459

1,187

322

1,509

(1,050) (1,221)

Fresh expressions

308

781

213

994

(686) (1,112)

Other field evangelism

174

361

166

527

(352) (382)

941 2,329

701 3,030 (2,088) (2,715)

Training of evangelists 40 502 64 566 (526) (878)

notes

Homeless projects 2,892 2,853 531 3,383 (491) 85 Total charitable activities

3,874

5,683

1,296

6,979

(3,105) (3,508)

Cost of generating funds

920

1,007

(1,007) (979)

Governance costs

(42) (40)

General income

2,917

2,917 1,821

Net expenditure

6,791

6,646

1,382

8,028

(1,237) (2,706)

Support costs are analysed by category in Note 6 below.

6 Analysis of support costs

2014 2013

£000 £000

Function

Senior management

382 485

Frontline project management

157 360

Communications

Property management

Administration (Finance/Personnel/IT)

296 164 41 74 209 349

Welfare

297 29

Total support costs

1,382 1,461

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 2013/2014

7 Net expenditure

2014 2013

£000 £000

Net expenditure is stated after charging/ (crediting):

Depreciation of fixed assets

468

486

Loss/(gains) on disposal of tangible fixed assets

(53) 36

(Profit) on disposal of investments

32 -

Auditors’ remuneration for audit

Interest payable on other loans

24 27

8 Emoluments of directors/trustees and employees and related party transactions All 12 (2013: 12) members of the Board who are not Church Army employees (including the Chair) provide their services free of charge, but incurred expenses totalling £2,342 (2013: £3,222). As permitted by the Society’s Articles of Association, during the year 2 (2013: 2) members of the Board who are Church Army employees received emoluments (including benefits in kind but excluding pension contributions) of £75,687 in total (2013: £75,687). One director also benefitted from contributions to the defined benefit Church of England Funded Pensions Scheme, and one from contributions of £4,790 (2013: £4,495) to a defined contribution scheme.

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 £252. The balance outstanding at 31 March 2014 was £5,027 (2013: £7,217).

notes

T he number of employees whose remuneration for the period fell within the following bands were £60,000 to £69,999 1 (2013: 1)

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

2014 2013 Numbers Numbers 112

118

Support for charitable activities

27 33

Cost of generating funds

10 7

149 158

2014 2013

£000 £000

Wages and salaries

3,674 3,904

Social security costs

314 345

Other pension costs (see note 10)

550 619

4,538 4,868

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.

Church Army Annual Report 2013/2014

notes

10 Pension costs (a)

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 (2013: £482,000).

(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:

2014 2013 Annual rate of interest used for discounting

4.40% 4.30%

Annual rate of increase in salaries

3.20% 3.80%

Annual rate of increase in deferred pensions linked to RPI

3.20% 3.30%

Annual rate of increase in deferred pensions linked to CPI

2.20% 2.30%

Annual rate of increase in pensions in payment (RPI maximum 5%)

3.70% 3.70%

Annual rate of increase in pensions in payment (CPI maximum 5%) Mortality pre-retirement Mortality in retirement

2.70% 2.70%

AMC00/AFC00

S1PMA/SPFMA CMI Model

2013 M/F [1%](yob)

2012 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

21.9 22.1

Female 24.1 24.4 Male

23.3 23.4

Female 25.7 25.9

Expected annual return on assets

5.40% 5.10%

The overall expected return on assets assumption of 5.4 % as at 31 March 2014 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.

n n

Church Army Annual Report 2013/2014

The assets of the scheme are invested in a diversified portfolio:

31 March 2014 Value

Proportion

31 March 2013 Value

Proportion

£000 £000

Equities

4,475

47% 4,508

47%

Bonds

3,406

44% 3,646

44%

Cash Total assets at market value The actual return on assets over the period was

816 8,697

9% 576 100% 8,730

9% 100%

218 785

Reconciliation to the balance sheet 2014 2013 £000 £000 8,697 8,788

Present value of liabilities

(8,616) (8,797)

Surplus in the Scheme

81 (9)

Irrecoverable surplus

- -

Pension asset recognised in the balance sheet

81 (9)

Analysis of changes in the value of the Scheme liabilities over the year

2014 2013

notes

Market value of assets

£000 £000 Value of liabilities at start of year

8,797 8,114

Service cost

103 118

Interest cost

373 368

Member contributions

18 23

Benefits and expenses paid

(359) (370)

Actuarial losses/(gains)

(316) 544

Value of liabilities at end of year

8,616 8,797

Analysis of changes in the value of the Scheme assets over the year 2014 2013 £000 £000 Market value of assets at start of year

8,730 8,189

Expected return on Scheme assets

439 379

Actuarial gains/(losses)

(221) 406

Employer contributions

90 103

Member contributions

18 23

Benefits paid

(359) (370)

Market value of assets at end of year

8,697 8,730

Church Army Annual Report 2013/2014

The following amounts have been recognised in the performance statements for the year to 31 March 2014: Analysis of amount chargeable to operating deficit: 2014 2013 £000 £000 Current service cost

103 118

Total operating charge 103 118 Analysis of amount creditable to other finance income:

2014 2013

£000 £000 Expected return on pension scheme assets

439 379

Interest on pension scheme liabilities

(373) (368)

Net (charge)/credit

Analysis of amount recognisable in Statement of

Total Recognised Gains and Losses: 2014 2013

notes

£000 £000 Actuarial gains/(losses) on assets

(221)

406

Actuarial (losses)/gains on liabilities

316 (544)

Provision against amount to be recognised in balance sheet

(5) (84)

Total amount recognised

(222)

Movement in surplus during year: 2014 2013 £000 £000 Surplus recognised in scheme at beginning of year

(151) 75

Movement in year:

Current service cost

(103) (118)

Contributions

90 103

Other finance income

66 11

Actuarial gains/(losses)

(138)

Provision against amount to be recognised

(5)

(84)

Surplus recognised in scheme at end of year

(8) (151)

Church Army Annual Report 2013/2014

History of assets, liabilities, experience gains and losses 2014 2013 2012 2011 2010

£000 £000 £000 £000 £000

Market value of Scheme assets

8,697 8,788 8,189 8,051 2,696

Value of Scheme liabilities Surplus in the Scheme

(8,616) (8,797) (8,114) (7,534) (2,466) 81 (9) 75 517 230

Gains/(losses) arising on Scheme liabilities: Due to experience

(9)

% of liabilities

0% 1% 4% 0% 5%

Due to change of basis % of liabilities

325

85 (629)

358 (782)

4% (7%) (10%)

(14) 282

124 (476)

4% (19%)

Experience gains/(losses): Arising on Scheme assets

406

(6)

339

(3%) 5% 0% 0% 13%

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.

notes

% of assets

(221)

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 . Based on the current salary roll, the employer expects to pay approximately £90,000 to the Scheme during the accounting year beginning 1 April 2014. (d) Church Army stakeholder scheme

The Society also has a defined contribution stakeholder scheme. The total contribution to this scheme during the year was £34,000 (2013: £34,000).

Church Army Annual Report 2013/2014

notes

11 Tangible fixed assets Group Land and Freehold Other fixed buildings improvements assets Total £000 £000 £000 £000 (valuation) (cost) (cost) Cost or valuation At beginning of year 18,905 2,292 1,408 22,605 Additions - - 66 66 Revaluation in year 971 - - 971 Disposal of subsidiary Disposals (1,049) - - (1,049) At end of year 18,827 2,292 1,474 22,593 Depreciation At beginning of year 98 210 916 1,224 Charge for year 244 111 113 468 Revaluation in year - - - Disposals - - - At end of year 342 321 1,029 1,692 Net book value At 31 March 2014 18,485 1,971 445 20,901 At 31 March 2013 18,807 2,082 492 21,381 Society Land and Freehold Other fixed buildings improvements assets Total £000 £000 £000 £000 (valuation) (cost) (cost) Cost or valuation At beginning of year 17,564 2,291 762 20,617 Additions 66 66 Revaluation in year 824 - - 824 Disposal of subsidiary Disposals (1,049) - - (1,049) At end of year 17,339 2,291 828 20,458 Depreciation At beginning of year 79 210 425 714 Charge for year 226 111 74 411 Revaluation in year (141) - - (141) Disposals (6) - - (6) At end of year 158 321 499 978 Net book value At 31 March 2014 17,181 1,970 329 19,480 At 31 March 2013 17,564 2,081 337 19,903 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 2013/2014

The value of land and buildings can be analysed as follows:

notes

Group Society 2014 2013 2014 2013 £000 £000 £000 £000 Operational properties (included above) Freehold 17,320 17,712 16,014 16,371 Long leasehold 1,167 1,194 1,167 1,194 18,487 18,906 17,181 17,565 Investment properties (included in investments) Freehold 892 991 892 991 Short leasehold 16 17 16 17 908 1,008 908 1,008 Total 19,395 19,914 18,089 18,573 If the land and buildings (including investment properties) were stated on a historical cost basis the amounts would be: Group Society 2014 2013 2014 2013 £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 2014 2013 2014 2013 £000 £000 £000 £000 At beginning of year 11,687 11,357 9,111 8,875 Additions 1,159 1,624 852 1,327 Disposals (1,798) (2,066) (1,406) (1,665) Disposal of subsidiary trust Gains on revaluation 230 772 220 574 At end of year 11,278 11,687 8,777 9,111 Group Society 2014 2013 2014 2013 £000 £000 £000 £000 UK listed investments at market value 3,923 3,933 3,024 2,998 Overseas listed investments at market value 5,382 5,772 4,036 4,338 Unlisted traded investments at market value 417 471 232 305 Investment properties (see note 11) 908 1,008 908 1,008 Cash deposits 533 388 463 348 Equity share mortgages at cost 115 115 114 114 11,278 11,687 8,777 9,111

Church Army Annual Report 2013/2014

The cost of the Group’s investments is £8,425,000 (2013: £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 70,250 (2013: 60,250) 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 £70,000. The Society’s share received during the year was £47,000 (2013: £35,000) and is included within donation income, and £70,000 is expected to be received in September 2014 based on the results for the year ended 31 December 2013 The net assets of this company at the year end were £140,000 (2013: £120,000). 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 2014 were as follows:

1.25% Index-linked Treasury 2017

13 Debtors

£000 Society 596

1.25% Index-linked Treasury 2017

£000 447

notes

Group

Group Society 2014 2013 2014 2013 £000 £000 £000 £000 Amounts falling due within one year Trade debtors 94 182 30 68 Amounts owed by subsidiary undertakings - - 24 100 Other debtors 159 127 157 122 Prepayments and accrued income 753 342 753 342 1,006 651 964 632 Amounts falling due after one year Other debtors 29 47 29 47 Prepayments and accrued income - 18 - 18 1,035 716 993 697 372

Church Army Annual Report 2013/2014

14 Creditors: amounts falling due within one year

Group Society 2014 2013 2014 2013 £000 £000 £000 £000 Bank loan (see note 15 below) 164 161 164 161 Trade creditors 142 180 130 172 Tax and social security 84 94 82 92 Amounts owed to subsidiary undertakings - - 757 687 Other creditors 59 65 33 45 Accruals and deferred income 262 290 258 287 711 790 1,424 1,444

Group Society 2014 2013 2014 2013 £000 £000 £000 £000 Bank loan payable between 2 and 5 years 657 645 657 645 Bank loan payable after 5 years 288 455 288 455 945 1,100 945 1,100 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.

notes

15 Creditors: amounts falling due after more than one year

Church Army Annual Report 2013/2014

notes

16 Movement in funds

Balance Movement in resources Balance 1 April Incoming Outgoing Reval- Transfers 31 March 2013 uations 2014 £000 £000 £000 £000 £000 £000 Unrestricted funds Operational property and other fixed assets net of loans 17,153 - (346) 879 (983) 16,703 Contingencies and commitments - - - - - Set aside for new initiatives - - - - - Total designated funds 17,153 - (346) 879 (983) 16,703 Pension reserves - - - - - Free reserves 10,020 3,491 (4,655) 281 1,094 10,231 Total unrestricted funds 27,173 3,491 (5,001) 1,160 111 26,934 Restricted funds Subsidiary trusts: Portman House Trust 1,206 1,833 (1,732) - - 1,307 Discretionary Grants Fund 975 20 (94) (20) - 881 Gurney Trust 1,348 23 (20) 16 - 1,367 Others 324 5 (12) 4 - 321 Total subsidiary trusts 3,853 1,881 (1,858) - - 3,876 Retirement property fund 1,141 - - - - 1,141 Other restricted funds 382 1,419 (1,169) 131 (111) 652 Total restricted funds 5,376 3,300 (3,027) 131 (111) 5,669 Total funds for the Society 28,696 4,910 (6,170) 1,291 - 28,727 Total funds in subsidiary trusts 3,853 1,881 (1,858) - - 3,876 Total funds for the Group 32,549 6,791 (8,028) 1,291 - 32,603

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 2013/2014

17 Reserves

Group Society 2014 2013 2014 2013 £000 £000 £000 £000 Income and expenditure account 17,429 16,709 15,490 15,318 Revaluation reserve 15,174 15,840 12,398 12,487 Pension reserve - - - 32,603 32,549 27,888 27,805

18 Analysis of funds

19 Commitments and contingencies

notes

General Designated Restricted Total £000 £000 £000 £000 Tangible fixed assets - 17,812 3,089 20,901 Investments 8,777 - 2,501 11,278 Current assets 1,919 - 80 1,999 Current liabilities (546) (164) (1) (711) Long-term liabilities - (945) - (945) Pension asset 81 - - 81 Pension liability - - - Net assets 10,231 16,703 5,669 32,603

Lease commitments At 31st March 2014 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: 2014 2013 £000 £000 Within one year 34 79 Within two to five years 43 32 77 111

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 2014 would be £305,000 (2013: £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.

Church Army Annual Report 2013/2014

20 Reconciliation of net expenditure to net cash outflow from operating activities

notes

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 Decrease in stocks Decrease in debtors Increase/(decrease) in creditors (Decrease) in provisions for liabilities and charges Reduction in funds on transfer of subsidiary trust to other trustees Net outgoing resources before other recognised gains and losses

2014 2013 £000 £000 (1,237) (2,724) 24 27 (597) (451) 339 314 468 486 (53) 36 66 15 - (319) (221) (82) (70) - - (1,391) (2,588)

21 Analysis of net funds and reconciliation to cash flow Balance Balance 1 April Cash 31 March 2013 flow 2014 £000 £000 £000 Cash at bank and in hand 664 300 964 Cash deposits 388 145 533 Net cash balances 1,052 445 1,497 Debt due within one year (161) (3) (164) Debt due after 1 year (1,100) 155 (945) Net funds (209) 597 388

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 £3,491,000 (2013: £2,492,000) and its retained deficit was £1,399,000 (2013: £2,675,000).

Church Army Annual Report 2013/2014

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Church Army Annual Report 2013/2014

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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