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2021-06-30-accounts

Charity Registration No. 1024543

Company Registration No. 02837084 (England and Wales)

CREATION SCIENCE FOUNDATION (U.K.) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

CREATION SCIENCE FOUNDATION (U.K.)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R C Beckett
S C Burgess
K A Ham
A C McIntosh
D Morlan
P E Salmon
C M Simpson
Charity number 1024543
Company number 02837084
Principal address 16 Morris Road
Leicester
LE2 6BR
Registered office 167 London Road
Leicester
LE2 1EG
Independent examiner Philip John Dymond FCCA
Cheyettes Ltd
167 London Road
Leicester
LE2 1EG

CREATION SCIENCE FOUNDATION (U.K.)

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 16

CREATION SCIENCE FOUNDATION (U.K.)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2021

The trustees present their annual report and financial statements for the year ended 30 June 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (published in October 2019) .

Objectives and activities

The charitable company's objects are to promote the belief in the Biblical record of creation, showing it to be foundational to Christian belief. This is achieved through four principal aims:

The charity undertakes the following activities for achieving objectives:

The charity operates the UK ministry Answers in Genesis.

The trustees, having regard to the guidance issued, confirm that the public benefit of the charity is found in advancing the Christian religion through promoting, by all means of communication, belief in the whole of the Bible and in particular, the creation of the universe by God. The charity actively raises awareness and understanding amongst Christians and non-Christians of creation and the God behind it, using up to date scientific evidence as well as biblical evidence. A significant range of resources (layman and technical) are available to the public (adults and children), through books, DVDs, website and radio and television programmes and interviews. Meetings and conferences, which are open to all, are regularly held throughout the United Kingdom , when permitted .

The charitable company is most grateful for the many volunteer hours expended by helpers at events and at the main office and warehouse in Leicester.

Achievements and performance

As churches were closed or in restrictions due to the pandemic during the whole period, we had no physical, in-person meetings. However, we had various online events, reaching people in many countries across six continents. Highlights include :

CREATION SCIENCE FOUNDATION (U.K.)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Additional notes of significance:

Financial review

During the year ended 30th June 202 1 , the trustees continued to actively manage the financial position; during the year the charitable company achieved a general fund surplus of £ 779 (20 20 - £ 19 , 826 ). At the year end the total reserves of the charity were £2 46 , 705 (20 20 - £2 3 9, 259 ) of which £6,667 were restricted and £240,038 were unrestricted (2020 - all funds were unrestricted) being the equivalent of approximately 12 months operating costs, ensuring that the charitable company complied with the current reserves policy .

Income, expenditure and cash flow have been monitored monthly, assisted by an honorary treasurer , who is a retired accountant , until February 2021 . The trustees and staff have worked proactively and with some vigour to reduce costs and maintain income. The organisation is in a good position financially to enter the next financial year.

A realistic Business Plan was in place for the year ended 30th June 202 1 and has been monitored against monthly reported figures in order that any deviations can be identified in a timely manner and acted upon. The trustees are aware of the need, particularly in the current financial climate, to be prudent and regularly review measures to contribute to the financial stability of the charitable company. Reserves should be more than adequate to cover any short term increase in expenditure that this will entail. The charitable company has not needed any government support as a result of the Covid 19 pandemic either in the financial year to 30th June 2021 or in the subsequent year to date.

Funds are held in a separate account, accessible only by the trustees and bookkeeper, which would cover up to six months of normal operating costs. This reserve is reviewed regularly to ensure that the charity could function short term in an emergency or could be wound down if absolutely necessary. These reserves have not been used either in the year or up to the date of signing these accounts.

The trustees have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

CREATION SCIENCE FOUNDATION (U.K.)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Structure, governance and management

The entity, which is also known as Answers in Genesis, is a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

R C Beckett

S C Burgess

K A Ham

A C McIntosh

D Morlan

P E Salmon C M Simpson

The trustees may appoint any person who is willing to act to be a trustee of the charitable company. Trustees appointed during the year shall hold office until the next Annual General Meeting of the charitable company or for another period as specified (up to a maximum of two years) and shall be eligible for re-election at the appropriate AGM.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisation

The board of trustees must consist of a minimum of three members but is not subject to any maximum. The board meets quarterly and on such other occasions as shall be deemed necessary to ensure the effective functioning of the charity. Regular communication amongst all trustees is maintained between board meetings.

Potential trustees are usually invited to attend board meetings and participate in the running of the charity for a period of six to twelve months prior to being approved for appointment as trustees. In addition, new trustees are invited and encouraged to attend a series of short training sessions to familiarise themselves with the charity and the context within which it operates. These sessions relate to the following:

A question and answer pack is available drawing on information from the various Charity Commission publications signposted through the Commission's guide "the Essential Trustee" as a follow up to these sessions. This is distributed to all new trustees along with the Memorandum and Articles of Association and the latest financial statements.

CREATION SCIENCE FOUNDATION (U.K.)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

This Report has been prepared having taken advantage of the small companies exemption in the Companies Act 2006.

The trustees' r eport was approved by the Board of Trustees.

R C Beckett

Dated: 8 March 2022

CREATION SCIENCE FOUNDATION (U.K.)

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CREATION SCIENCE FOUNDATION (U.K.)

I report to the trustees on my examination of the financial statements of Creation Science Foundation (U.K.) (the charitable company) for the year ended 30 June 2021.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Philip John Dymond FCCA

Cheyettes Ltd 167 London Road Leicester LE2 1EG

Dated: 14 March 2022

CREATION SCIENCE FOUNDATION (U.K.)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
2
133,218
20,000
Charitable activities
3
101,915
-
Investments
4
170
-
Total income
235,303
20,000
Expenditure on:
Charitable activities
5
234,524
13,333
Other
8
-
-
Total resources expended
234,524
13,333
Net income for the year/
Net movement in funds
779
6,667
Fund balances at 1 July 2020
239,259
-
Fund balances at 30 June
2021
240,038
6,667		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
153,218
150,562
-
101,915
164,263
-
170
745
-
255,303
315,570
-
247,857
295,730
200
-
14
-
247,857
295,744
200
7,446
19,826
(200)
239,259
219,433
200
246,705
239,259
-		 Total
2020
£
150,562
164,263
745
315,570
295,930
14
295,944
19,626
219,633
239,259

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CREATION SCIENCE FOUNDATION (U.K.)

BALANCE SHEET

AS AT 30 JUNE 2021

Notes
Fixed assets
Tangible assets
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds		 2021
£
34,093
9,951
217,273
261,317
(23,553)		 £
8,941
237,764
246,705
6,667
240,038
246,705		 2020
£
37,790
15,442
202,103
255,335
(27,200)		 £
11,124
228,135
239,259
-
239,259
239,259

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2021. No member of the charitable company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements , so far as applicable to the charitable company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 8 March 2022

R C Beckett Trustee

Company Registration No. 02837084

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

Charity information

Creation Science Foundation (U.K.) is a private company limited by guarantee incorporated in England and Wales. The registered office is 167 London Road, Leicester, LE2 1EG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (issued in October 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.

The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charitable company . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable company.

1.4 Incoming resources

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is included in the Statement of Financial Activities on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be attributed directly to particular headings they have been allocated to activities on a basis consistent with use of the resources.

Expenditure on charitable activities relates to the direct costs associated with merchandising income, which is recognised when the associated sale is made.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 15% per annum on a reducing balance basis Fixtures and fittings 15% per annum on a reducing balance basis Computers 25% per annum on a reducing balance basis Vehicles 25% per annum on a reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company 's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
111,039
20,000
Legacies receivable
8,355
-
Refund of tax (Gift Aid)
13,824
-
133,218
20,000
For the year ended 30 June 2020
150,562
-		 Total
2021
£
131,039
8,355
13,824
153,218		 Total
2020
£
136,824
-
13,738
150,562
150,562

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

3 Charitable activities

Charitable activities
Unrestricted Total
funds
2021 2020
£ £
Literature sales 51,704 41,726
Audio visual sales 25,149 33,587
Subscriptions 14,321 13,147
Conference income 6,501 65,965
Other income 4,240 9,838
101,915 164,263
Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 170 745

4 Investments

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

5 Charitable activities

Unrestricted
funds
2021
£
Direct costs:
Staff costs
118,318
Depreciation
2,510
Purchasing and merchandising costs
59,502
Conference costs
7,552
Support costs:
Lease of land and buildings
16,500
Printing, postage, stationery and IT costs
18,295
Other office management costs
15,392
Motor, travel and subsistence
(62)
Other allocated costs
2,694
Legal and professional
401
Independent examiner's fees
1,969
Bank charges
4,786
247,857
Analysis by fund
Unrestricted funds
234,524
Restricted funds
13,333
247,857		 Total
2020
£
106,904
3,182
80,440
41,938
15,283
15,789
17,445
1,771
6,428
401
1,924
4,425
295,930
295,730
200
295,930

The above negative expenses for motor, travel and subsistence have arisen from a road tax refund due to the van being off road during the pandemic.

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

None of the trustees were reimbursed for expenses during the year (2020 - £1,318 reimbursed to three trustees for travel, subsistence and stocks) .

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

7 Employees

Number of employees

The average monthly number of employees during the year was:

Management and administration
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
5
2021
£
109,001
4,481
4,836
118,318		 2020
Number
5
2020
£
98,086
4,536
4,282
106,904

There were no employees whose annual remuneration was £60,000 or more.

8 Other

Other
Unrestricted Total
funds
2021 2020
£
Net loss on disposal of tangible fixed assets - 14

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

9
Tangible fixed assets
Plant and
equipment
Fixtures and
fittings
Computers

£
£
£
Cost
At 1 July 2020
10,422
22,728
17,516
Additions
-
179
148
At 30 June 2021
10,422
22,907
17,664
Depreciation and impairment
At 1 July 2020
10,042
19,755
11,835
Depreciation charged in the year
57
473
1,457
At 30 June 2021
10,099
20,228
13,292
Carrying amount
At 30 June 2021
323
2,679
4,372
At 30 June 2020
380
2,973
5,681
10
Stocks
Finished goods and goods for resale
11
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Vehicles
£
15,658
-
15,658
13,568
523
14,091
1,567
2,090
2021
£
34,093
2021
£
3,767
-
6,184
9,951		 Total
£
66,324
327
66,651
55,200
2,510
57,710
8,941
11,124
2020
£
37,790
2020
£
197
22
15,223
15,442

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

12 Creditors: amounts falling due within one year

2021 2020
£ £
Other taxation and social security 1,923 1,405
Trade creditors 2,711 1,812
Other creditors 1,166 222
Accruals and deferred income 17,753 23,761
23,553 27,200
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of
donations and grants held on trust for specific purposes:
Movement in funds
Balance at
Resources		 Balance at Incoming Resources Balance at
1 July 2019
expended		 1 July 2020 resources expended 30 June 2021
£
£		 £ £ £ £
European Ministry Fund 200
(200)		 - - - -
Answers in Genesis US -
-		 - 20,000 (13,333)
6,667
200
(200)		 - 20,000 (13,333)
6,667

13 Restricted funds

All restricted funds are held for the charitable company’s primary objectives and have arisen for the following specific purposes:

European Ministry Fund: relates to visits, translations etc from European Ministry ;

Answers in Genesis US: relates to support provided to assist funding salary increases.

14 Analysis of net assets between funds

Unrestricted Restricted
2021
2021
£
£
Fund balances at 30 June 2021 are
represented by:
Tangible assets
8,941
-
Current assets/(liabilities)
231,097
6,667
240,038
6,667		 Total
2021
£
8,941
237,764
246,705		 Total
2020
£
11,124
228,135
239,259

CREATION SCIENCE FOUNDATION (U.K.)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

15 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
5,258
122
5,380		 2020
£
5,258
1,472
6,730

16 Related party transactions

Transactions with related parties

During the year the charitable company entered into the following transactions with related parties:

A. McIntosh and S. Burgess are trustees of the charitable company for which they have undertaken separate speaking engagements and were paid a total of £400 (2020 - £660).