OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-07-31-accounts

REGISTERED CHARITY NUMBER: 1053047

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

CHAPTER TWO

Berringers LLP Chartered Accountants Lygon House 50 London Road Bromley Kent BRI 3RA

aESTEE

CHAPTER TWO

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 July 2023

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Page| |Reference and administrative|details|1| |Report of|the trustees|20|4| |Independent|examiner's|report|5| |Statement|of|financial activities|6| |Balance sheet|7| |Notes|to|the|financia)|statements|8|to|15| |Detailed statement of financial|activities|16|to|17|

----- End of picture text -----

----- Start of picture text -----
|
|
|
----- End of picture text -----

at

CHAPTER TWO

REFERENCE AND ADMINISTRATIVE DETAILS for the year ended 31 July 2023

TRUSTEES

S Attwood Mrs M E Cross H A Clark M D Grasso AF Warnes

PRINCIPAL ADDRESS

Fountain House Conduit Mews London SE18 7AP

REGISTERED CHARITY 1053047 NUMBER

INDEPENDENT EXAMINER

Berringers LLP Chartered Accountants Lygon House 50 London Road Bromley Kent BRI 3RA

Page |

———————————O_ LLL SLL

CHAPTER TWO

REPORT OF THE TRUSTEES for the year ended 31 July 2023

The trustees present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of 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) {effective 1 January 2019).

The present trustees, who all served throughout the year, are all listed on page 1.

OBJECTIVES AND ACTIVITIES

Objectives and aims The principal objective is the advancement of the Christian faith through the provision of literature, and by other means including preaching, conferences, and various forms of outreach.

The charity owns three freehold properties which are used to meet its objectives. The shop, situated at 199 Plumstead Common, is used to distribute literature to the general public. The main warehouse and distribution centre is situated in Fountain House, 3 Conduit Mews, and this property is also used as an administration centre. The property situated at 2 Plum Lane is used to give short term accommodation to volunteer workers from UK and overseas.

The shop and warehouse continue to distribute literature, both by sale and by gift. The provision of free literature to support Christian outreach and follow-up is funded by sales to the public and by donations received into the General Fund. To enable the provision of quality Christian literature, the Trust seeks continually to update its book catalogue and to raise its profile locally as well through more general advertising.

Public Benefit The Trustees have had regard to Charity Commission guidance on public benefit and consider that the objectives, aims and achievements of the charity described in the report enable it to meet its duty to the Charity Commission as per Section 17 of the Charities Act 2011 and to the benefit ofthe public.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The general activities of the Trust continue to be self-financing, with donations and profits on sales of literature, financing literature distribution and administration.

During the year, the value of literature distributed worldwide has increased by 14%; the full range ofactivities, including the publication of new books and leaflets, has continued. Facilities at Fountain House for storage and despatch have been fully utilised. Literature and correspondence courses have continued to be sent to customers and other contacts in the UK and overseas, and in particular to UK prisons and detention centres. The Trust was also able to source useful collections of second-hand books and use these to replenish its catalogue. It exhibited at the annual Christian Resources Exhibition which was held at Sandown Racecourse, Esher in October 2022.

A Christian conference - the annual Plumstead Bible Study Conference - was held at Yarnfield Park Training and Conference Centre in April 2023 afier a break from 2020 to 2022 caused by the Covid-19 pandemic. It was attended by nearly 300 persons and, as in earlier years, presented Christian truth, resulting in significant sales of literature on site. Income exceeded expenditure for the conference by £17,856. The trustees believe that it has contributed significantly to the overall objectives ofthe Trust of advancing the Christian faith. Outreach during the year included a visit to India, which involved teaching the Christian faith and pastoral care, and providing practical advice for people in various places. The Trust has also continued to support the Bibleway Camp and conferences in the UK. The trustees believe that persons attending these events have benefitted in a way consistent with the objectives of the Trust. The Trust has also been able to meet the needs of people in the local area and wider afield who were customers of Christian bookshops which have ceased trading since the Covid-19 pandemic.

During the year, the Trust undertook repair works to maintain its buildings including improvements to customer access at the shop at 199 Plumstead Common Road. It was also able to negotiate a two-year electricity supply contract at Fountain House that benefitted from the reduction in energy prices in 2023 after the initial hike in 2022 resulting from the war in Ukraine. It also implemented full fibre for its phone lines at Fountain House.

Page 2

SSS SS ee eeooooeoawana«anas»]

CHAPTER TWO

REPORT OF THE TRUSTEES for the year ended 31 July 2023

Approved ZN (2% igned on i by order ofthe board of trustees on .....42.-1/.u1, Lh Menlef and signed on its behalf by:

S Attwood - Trustee

Page 4

a

a ee

CHAPTER TWO

REPORT OF THE TRUSTEES for the year ended 31 July 2023

FINANCIAL REVIEW

Reserves policy

The level of reserves is continually under review to ensure that adequate reserves are always available. The total reserves at 31 July 2023 stood at £1,631,934 (2022 - £1,648,119}. This is to ensure that the Charity can meet its objectives and the Trustees are satisfied that the Charity has sufficient funds to fulfil its obligations.

The trustees have determined financial policies as set out below:

After meeting all the running costs of the charity, the final results from unrestricted activities, was a deficit of £10,799 (2022 - £26,015) Within the total figure for 2023, sales of literature showed an increase in tumover in comparison with the previous year.

The general fund at 31 July 2023 stood at £1,612,558 as compared with the balance at 31 July 2022 of £1,633,357.

FUTURE PLANS

The Trustees are reliant on God's provision and help in fulfilling the purposes of the Trust and are thankful to record His goodness in sustaining them and the charity in his service. Continuing this dependence, the Trustees intend to continue the same activities for the forthcoming year to further the main objectives ofthe Trust.

The Trust has plans for future publishing projects and the promotion of the Christian faith. there are adequate reserves available to meet existing on-going needs. It will also continue to maintain and improve its buildings and other facilities.

SFRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. Chapter Two is a trust governed by a constitution set out in November 1976 and revised in January 1995.

In the event of the charity being wound up, no liability in respect ofthe charity will vest in the members of the charity.

Recruitment and appointment of new trustees

New trustees are appointed as and when required by the board oftrustees.

Organisational structure

The trustees have delegated day to day management of the charity to the General Manager Mr S Attwood. The General Manager organises the teams of volunteers involved in the distribution of literature from the shop and the warehouse. No salaries are drawn by the staff, all of whom are unpaid volunteers.

Related parties

Mrs M Cross is also a trustee of the charity "Christian Outreach to the Handicapped”. In addition Chapter Two continues to provide support services and consequently considers itself to be a connected party. Mr S Attwood is a trustee of UK Foundation for Christian Service, a charity which makes donations to Chapter Two from time to time.

Page 3

ETT

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHAPTER TWO

Independent examiner's report to the trustees of Chapter Two

I report to the charity trustees on my examination of the accounts of Chapter Two (the Trust) for the year ended 31 July 2023.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust's accounts carried out under Section 145 ofthe Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5){b) of the Act. Independent examiner's statement Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. 1 confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

Paul Allan BSocSC FCA

The Institute of Chartered Accountants in England and Wales

Berringers LLP Chartered Accountants Lygon House 50 London Road Bromley Kent BR] 3RA

Page 5

VO

----- Start of picture text -----
SSS as
----- End of picture text -----

CHAPTER TWO

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 July 2023

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2023|2022| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |Notes|£|£|£|5| |INCOME AND ENDOWMENTS FROM| |Donations and|legacies|2|76,238|95,898|172,136|70,141| |Charitable activities|3|153,923|-|153,923|135,35]| |Investment income|4|641|-|641|87| |Total|230,802|95,898|326,700|205,579| |EXPENDITURE|ON| |Charitable|activities|5| |Costs of|charitable|activities|154,064|-|154,064|130,088| |Gifts & donations|-|23,242|23,242|21,520| |Support costs|97,177|-|97,177|76,152| |Conference|-|60,006|60,006|-| |Donated books|-|8,396|8,396|8,373| |Total|251,241|91,644|342,885|236,133| |NET ENCOME/(EXPENDITURE)|(20,439)|4,254|(16,185)|(30,554)| |Transfers between|funds|M4|9,640|(9,640)|-|-| |Net movement|in|funds|(10,799)|(5,386)|(16,185)|(30,554)| |RECONCILIATION OF|FUNDS| |Total|funds brought|forward|1,633,357|14,762|1,648,119|1,678,673| |TOTAL FUNDS CARRIED FORWARD|1,622,558|9,376|1,631,934|1,648,119|

----- End of picture text -----

a

The notes form part of these financial statements Page 6

<<

CHAPTER TWO

BALANCE SHEET 31 July 2023

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2023|2022| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |FIXED ASSETS|Notes|£|£|£|£| |Tangible assets|101,071,270|-|1,071,270|1,096,103| |CURRENT|ASSETS| |Stocks|ia|296,255|-|296,255|280,560| |Debtors|;|12|20,590|-|20,590|18,492| |Cash at bank and in hand|251,310|9,376|260,686|283,889| |568,155|9,376|577,531|582,941| |CREDITORS| |Amounts|falling due within one year|13|(16,867)|-|(16,867)|(30,925)| |NET CURRENT ASSETS|551,288|9,376|,|560,664|552,016| |TOTAL|ASSETS|LESS CURRENT| |LIABILITIES|1,622,558|9,376|1,631,934|1,648,119| |NET ASSETS|1,622,558|9,376|1,631,934|1,648,119| |FUNDS|14| |Unrestricted funds|1,622,558|1,633,357| |Restricted|funds|9,376|14,762| |TOTAL FUNDS|1,631,934|1,648,119|

----- End of picture text -----

Thewen DAfinancialel]statementsBealeswere were signedapproved on itsby behalftheby:Board of Trustees and authorised for issue on

S Atwood - Trustee

The notes form part ofthese financial statements

Page 7

----- Start of picture text -----
SSS S .._e_e__e__e__ Sa
----- End of picture text -----

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2023

ACCOUNTING POLICIES

Basis ofpreparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation ofcertain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations, legacies and gifts are recognised when received or when the charity becomes legally entitled to them, having been notified in writing of both the amount and settlement date. Donations are allocated specifically at the request of the donor, or to the general fund. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution.

Expenditure - Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% straight line Fixtures and fittings - 25% on reducing balance Motor vehicles - 25% on reducing balance

Tangible fixed assets were capitalised at cost including any incidental expenses of acquisition or in cases where they have been donated the value at the time the donated asset is received. The frechold land and buildings have been subsequently recorded at valuation as at 8 July 2020. The Trustees believe that there has been no material market movement since then.

Stocks

Stocks are valued at the lower ofcost or net realisable value after making due allowance for any obsolete or slow moving items. A provision based on the current level of stocks given away during the current year is made to reduce the carrying value of stocks in respect of stocks to be given away during the forthcoming year.

Taxation

The charity is exempt from tax on its charitable activities,

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The three restricted funds include;

Page 8

continued...

i

----- Start of picture text -----
SEE
----- End of picture text -----

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS- continued for the year ended 31 July 2023

1. ACCOUNTING POLICIES- continued

Fund accounting

1) General gifts and donations that are used as specified by the donor.

2) Gifts of Bibles for Prisons

3) The conference, held in Yarnfield Park Training and Conference Centre.

The conference surplus/deficit is netted off to the general fund, and the balance of the gifts and donations are carried forward. Gifts for Bibles for Prisons, if in deficit, will be supported by the general fund.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

  1. DONATIONS AND LEGACIES

  2. 3:

DONATIONS AND LEGACIES
2023 2022
£ £
Gifts
Legacies		 152,136
20,000		 65.441
4,700
172,136 70,141
CHARITABLE ACTIVITIES
2023 2022
£ £
Saleofliterature& relatedproducts 153,523 134,951
Managementcharges 400 400
153,923 135.35]

The sale of Christian literature is considered by the Trustees to be trade pursuant to the charity's objects.

  1. INVESTMENT INCOME

----- Start of picture text -----
2023 2022
£ £
Deposit account interest 641 87
----- End of picture text -----

----- Start of picture text -----
Page 9
----- End of picture text -----

continued...

————————————————e——eEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEeEee—eEeEEGeEeG—_eEc<QQQeEOOeeeE E eEeEe—eeEeEeEeEeEeEeE — eEeEeEeEeEE—————————————

  1. CHARITABLE ACTIVITIES COSTS

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS- continued for the year ended 31 July 2023

5. CHARITABLE ACTIVITIES COSTSACTIVITIES COSTSCOSTS
Support
Direct costs (see
Costs note6) Totals
£ £ £
Costsofcharitable activities 154,064 - 154,064
Gifts&donations 23,242 “ 23,242
Supportcosts
Conference
Donatedbooks		 -
60,006
8,396		 97,177
-
-		 97,177
60,006
8,396
245,708 97,177 342,885
6. SUPPORTCOSTS
Governance
Finance Other costs Totals
£ £ £ £
Support costs 4,437 84,850 7,890 97,177
Support costs, included inthe above, are as follows:
Other
2023 2022
Support
costs		 Total
activities
£ £
Ratesandwater 5,043 5,949
Insurance
Lightandheat
Telephone
Postageand stationery
Advertising
Travelling
Motorexpenses
Website&computer
Repairs&renewals
Cleaning&waste disposal
Sundries
Exchange ratemovement
Depreciationoftangible fixed assets
Leasing		 2,628
5,709
3,497
4,541
4,759
2,525
3,896
4,083
7,870
3,269
5,607
5,085
25,623
715		 2,393
§,005
3,102
3,579
8,032
$13
2,341
3,461
7,875
784
2,207
(10,223)
26,564
1,109
84,350 63,191

Page 10

continued...

EEE ES SSS SSS

SS SS SSS

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 July 2023

6. SUPPORT COSTS - continued Governance costs

2023 2022
Support
costs		 Total
activities
£ £
Accountancy 3,165 2,800
Independent examination 4,725 4,500
7,890 7,300

ds

TRUSTEES' REMUNERATION AND BENEFITS

Expenses during the year paid on behalf of a trustee amounted in total to £1,492 (2022 - £nil) for travel costs on behalf of Chapter Two.

Trustees’ expenses

Included within restricted funds are those donations of £4,408 (2022 - £4,531} that were received by Chapter Two to be distributed to specific Trustees as per the donors instructions. In addition, £5,412 was paid toa trustee relating to donations in prior years.

In the year accommodation was provided for a few days a week in one of the properties owned by the charity to one trustee to enable him to more effectively fulfil his duties as a trustee in furthering the sale and distribution of Christian literature. The trustee lives at such a distance from the charity that daily commuting would be both costly to the charity and impractical.

8. COMPARATIVES FORTHESTATEMENTOFFINANCIAL ACTIVITIES COMPARATIVES FORTHESTATEMENTOFFINANCIAL ACTIVITIES
Unrestricted
funds		 Restricted
funds		 Total
funds
£ £ £
INCOMEAND ENDOWMENTS FROM
Donations and legacies $2,733 17,408 70,141
Charitable activities 135,351 - 135,351
Investment income 87 - 87
Total 188,171 17,408 205,579
EXPENDITUREON
Charitable activities
Costs ofcharitable activities 130,088 - 130,088
Gifts& donations - 21,520 21,520
Supportcosts 76,152 - 76,152
Donated books - 8,373 8,373
Total 206,240 29,893 236,133
NETINCOME/(EXPENDITURE)
Transfers between funds		 (18,069)
(7,946)		 (12,485)
7,946		 (30,554)
-
Netmovementin funds (26,015) (4.539) (30,554)
RECONCILIATIONOFFUNDS
Totalfundsbroughtforward 1,659,372 19,301 1,678,673

Page 11

continued...

NN SS SS

SSS SSeSs“——~qx«0—_00009$S$sS a

gg ee

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS- continued for the year ended 31 July 2023

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted funds| |General fund|230,802|(251,241)|(20,439)| |Restricted|funds| |Gifts and Donations|17,856|(23,242)|(5,386)| |Conference|77,862|(60,006)|17,856| |Bibles and Prison|180|(8,396)|(8,216)| |95,898|(91,644)|4,254| |TOTAL FUNDS|326,700|(342,885)|(16,185)| |Comparatives for movement|in funds| |Net|Transfers| |movement|between|At| |At|1.8.21|in funds|funds|31.7.22| |£|£|£|£| |Unrestricted|funds| |General|fund|$17,908|(18,069)|(7,946)|791,893| |Revaluation|reserve|$41,464|-|-|841,464| |1,659,372|(18,069)|(7,946)|1,633,357| |Restricted|funds| |Gifts and Donations|19,301|(4,539)|-|14,762| |Bibles and Prison|-|(7,946)|7,946|-| |19,301|(12,485)|7,946|14,762| |TOTAL FUNDS|1,678,673|(30,554)|-|1,648,119| |Comparative|net movement|in funds, included|in the above are as follows:| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted|funds| |General|fund|188,171|(206,240)|(18,069)| |Restricted|funds| |Gifts|and Donations|16,981|(21,520)|(4,539)| |Bibles and Prison|427|(8,373)|(7,946)| |17,408|(29,893)|(12,485)| |TOTAL FUNDS|205,579|(236,133)|(30,554)|

----- End of picture text -----

Page 14

continued...

nn i Emma mEEEmEEmEEEEEEE EERE

CHAPTER TWO

NOTES TO THE FINANCIAL STATEMENTS- continued for the year ended 31 July 2023

14. MOVEMENT IN FUNDS - continued

Both the Gifts and Donations fund and the Conference fund are restricted, but are supported, where necessary, by the unrestricted fund. Any shortfall or surplus in the Conference fund for the year is netted off to zero at the end of the year via a transfer from/to the unrestricted fund.

The expenditure relating to Bibles donated exceeded the donations received, and therefore a contribution was required from the general fund of £8,216 (2022: £7,946). The donations relating to the conference exceeded the expenditure by £17,856, therefore this has been transferred to the unrestricted fund.

15. RELATED PARTY DISCLOSURES

The charity has received £400 (2022 - £400) from Christian Outreach to the Handicapped by way of a management charge, which is considered a related party transaction,

UK Foundation for Christian Service, a related party due to a common trustee, donated £500 (2022: £900) to Chapter Two. CMI AID, a related party due to a common trustee, was invoiced £225 (2022: £774) during the year for postage and delivery charges.

Page 15

rr._____s_. iii