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 

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CHAPTER TWO 

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


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|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|

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## 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 | 

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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. 

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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 

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## 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: 

* the distribution of free literature, as well as other resources within the charity, continues to follow the principle laid down in 1 Peter 4:10 - 'As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God.' 

* cash resources not required for current needs are placed on bank deposit accounts prior to their being used to fund the Charity's activities. 

* the charity is funded by both restricted and unrestricted funds. 

* unrestricted funds are allocated to the general operations and activities. Donations are allocated to unrestricted funds unless specified otherwise by the donor. Assets representing unrestricted funds are managed by the General Manager and his staff. 

* unrestricted funds (excluding designated funds) are to be maintained at a level sufficient to fund the stocks held for sale or distribution and to meet the costs of provision of further literature and governance costs for at least six months. 

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. 

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## 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: 

- 1, accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities {Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a truc and fair view which is not a matter considered as part of an independent examination. 

- 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 accounts to be reached. 

## 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 

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## CHAPTER TWO 

## STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 July 2023 


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||||||||
|---|---|---|---|---|---|---|
|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|

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a 

The notes form part of these financial statements Page 6 

<< 



## CHAPTER TWO 

BALANCE SHEET 31 July 2023 


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|---|---|---|---|---|---|---|
|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|

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> 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 

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CHAPTER TWO 

1. 

## 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; 

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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. 

2. DONATIONS AND LEGACIES 

- 3: 

|DONATIONS AND LEGACIES|||
|---|---|---|
||2023|2022|
||£|£|
|Gifts<br>Legacies|152,136<br>20,000|65.441<br>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. 

4. INVESTMENT INCOME 


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5. 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<br>Conference<br>Donatedbooks||-<br>60,006<br>8,396|97,177<br>-<br>-|97,177<br>60,006<br>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<br>costs|Total<br>activities|
|||||£|£|
||Ratesandwater|||5,043|5,949|
||Insurance<br>Lightandheat<br>Telephone<br>Postageand stationery<br>Advertising<br>Travelling<br>Motorexpenses<br>Website&computer<br>Repairs&renewals<br>Cleaning&waste disposal<br>Sundries<br>Exchange ratemovement<br>Depreciationoftangible fixed assets<br>Leasing|||2,628<br>5,709<br>3,497<br>4,541<br>4,759<br>2,525<br>3,896<br>4,083<br>7,870<br>3,269<br>5,607<br>5,085<br>25,623<br>715|2,393<br>§,005<br>3,102<br>3,579<br>8,032<br>$13<br>2,341<br>3,461<br>7,875<br>784<br>2,207<br>(10,223)<br>26,564<br>1,109|
|||||84,350|63,191|



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CHAPTER TWO 

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

## 6. SUPPORT COSTS - continued Governance costs 

|||2023|2022|
|---|---|---|---|
|||Support<br>costs|Total<br>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<br>funds|Restricted<br>funds|Total<br>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)<br>Transfers between funds|(18,069)<br>(7,946)|(12,485)<br>7,946|(30,554)<br>-|
||Netmovementin funds|(26,015)|(4.539)|(30,554)|
||RECONCILIATIONOFFUNDS||||
||Totalfundsbroughtforward|1,659,372|19,301|1,678,673|



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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: 


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|||||||
|---|---|---|---|---|---|
|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)|

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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. 

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