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2022-03-31-accounts

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2022

REGISTERED NUMBER - 3188730

29 Howard Street North Shields Tyne and Wear NE30 1AR

Tel : 0191 259 2743 Fax : 0191 257 2249 E-mail : info@essell.co.uk Ref: ACR/2267

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

CONTENTS

Legal and Administrative Information Page 1
Report of the Trustees Page 2 - 3
Report of the Independent Examiner Page 4
Statement of Financial Activities Page 5
Balance Sheet Page 6 - 7
Cash Flow Statement Page 8
Notes to the Financial Statements Page 9 - 14

The Appendix do not form part of the Statutory Financial Statements

Prepared by Essell Accountants Limited

29 Howard Street North Shields NE30 1AR Tel: 0191 259 2743 : Fax 0191 257 2249 E-mail: info@essell.co.uk Ref: ACR/2267

Page 1

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Legal and Administrative Information for the Year Ended 31 March 2022

Constitution

The North East Religious Learning Resources Centre Limited is a company limited by guarantee and a registered charity governed by its memorandum and articles of association. Company Number 3188730 (England and Wales), Charity Number 1055285.

Directors and Trustees

The Directors of the charitable company ("the charity") are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows :

Revd Dr David Bryan Mr Paul Rickeard Miss Sally Milner Mr Nicholas Brooker Revd Joanne Thorns Mr Andrew Barron Mrs Jo Warner Revd Alice Munns (resigned 13 October 2021) Mr Alistair Jenkins (resigned 13 October 2021) Dr Canon Alan Bennett Bartlett (appointed 12 May 2022) Mrs Catherine Jenkins Dr Jeremy Bonner (appointed 12 May 2022)

Trustees are appointed based on the objectives of the charity to advance religious education in the North East of England and are ex-officio representatives, or nominees, of the following bodies: the Durham Diocesan Board of Education, the Newcastle Diocesan Board of Education, Durham Bishops Council, Newcastle Bishops Council and the Lindisfarne College of Theology. In addition up to four members may be co-opted by the Board of whom one shall be a practising Anglican communicant and one from another Christian Denomination.

Registered Office

Cuthbert House, Stonebridge Lane, Durham, DH1 3RY

Independent Examiner

Alex Robinson, Essell Accountants Limited, 29 Howard Street, North Shields, Tyne and Wear, NE30 1AR

Bankers

National Westminster Bank plc, 12 Market Place, Durham, DH1 3NG.

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 2

Report of the Trustees for the Year Ended 31 March 2022

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2022.

Legal and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities.

Objects of the Charity

The principal activity of the company is the provision of the promotion of the charitable object as laid out in the memorandum and Articles of Association (1996): The advancement of religious education in the North East of England through the establishment and maintenance of resources centres; the provision of advice, guidance and assistance; the provision of courses, seminars and training.

The Board of Trustees have referred to the Charity Commission general guidance on public benefit when reviewing the aims and objectives of the North East Learning Resources Centre Limited NERLRC) and are satisfied that they meet the public benefit requirements. Further information within the achievements and performance section of this report provides details of the work done to meet these aims and objectives.

Structure, Governance & Management

The Board of Trustees meets twice a year and holds its AGM in October each year. The Board has delegated responsibility for the day to day management of the company to the Director, supported by their staff. No employee of the NERLRC Ltd is a Director or Trustee of the Board

Three sub-committees exist which provide strategic support to the Board:

Investment Powers

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the Trustees see fit.

Related Parties

The charity has a very close relationship with the St. Hild and St. Bede Trust and the Lord Crewe's Charity which provide funding to enable the charity to carry out its charitable objectives. In addition, we work in close partnership with the Dioceses of Newcastle & Durham as well as Lindisfarne College of Theology.

Financial Review

2022 showed an overall deficit of £15,324 compared to a surplus of £26,816 in 2021 Please note that, following their request, the grant from the St Hild & St Bede Trust is now a restricted fund.

There were no further Covid related grants received from HMRC this year; additional income was from an increase in charitable activities, predominately from membership. The increase in expenditure was intentional and strategic - developing the RRC infrastructure – and utilised cash reserves held, but in excess of, the 6-12 month recommendation of the RRC Reserves Policy. There would have been a greater deficit this year had it not been for an adjustment to the ground rent following overstating the creditors on last year’s accounts.

It is to be noted that the CCLA investment fund has continued to grow above expectation despite the economy but that the funds in this account are subject to market forces beyond the control of the RRC and may reduce at any time.

Achievements and Performance

Purchasing has resumed to normal following the reinstatement of all RRC services after the Covid Lockdowns. The biggest purchases this year were the Lindisfarne Gospels, and the St Cuthbert Gospel of John, facsimiles. These were for specific projects and long term educational use and the outputs of these projects have already been very exciting.

Other projects have included very well attended online courses for schools and churches, the continuation of the RE Places of Worship film project and significant work with other – national – RE project partners.

Staffing levels have been maintained until the RRC Review is complete; overtime was reintroduced to cover the ongoing a one-person staff member deficit. During the year, in order to support the significant output, the RRC has contracted temporary support to fill identified needs: for example, a specialist videographer and two consultants in the year for research and development work.

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 3

Report of the Trustees for the Year Ended 31 March 2022

Health and Safety

In accordance with the provision of the Health and Safety at Work Act 1974, the company has been aware of its legal responsibilities for carrying out an appropriate policy.

Risk Statement

The management committee has conducted a review of the major risks to which the charity is exposed and systems have been established to mitigate these risks. We hold a Board of Trustees risk management register which is reviewed quarterly.

Reserve Policy

The management committee has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be equivalent to between six and twelve months of the resources expended. At this level the Trustees feel they would be able to continue the current activities in the event of a drop in funding.

Statements of Trustees Responsibilities

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 surplus or deficit of the charity for that period. In preparing those financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the preventions and detection of fraud and other irregularities.

Independent Examiners

The independent examiner, Alex Robinson will be proposed for re-appointing in accordance with Section 485 of the Companies Act 2006.

In preparing this report, the trustees have taken advantage of special examinations applicable to small companies conferred by Part 15 of the Companies Act 2006.

ON BEHALF OF THE BOARD :

Name : Revd Joanne Thorns Date :

Position : Vice Chairperson

Page 4

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

I report on the accounts of the Trust for the year ended 31 March 2022 which are set out on pages 5 - 12.

Respective Responsibilities of the Trustees and Examiner

The Charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required this year (under section 144 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to :

Independent Examiner's Report

My examination was carried out in accordance with the General Directions given by the Charity Commission. That examination includes a review of the accounting records kept by the trustee's and a comparison of the accounts with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. The report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

Mr Alex Robinson FCCA Essell Accountants Limited 29 Howard Street, North Shields, NE30 1AR Date :

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 5

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Income and Endowments
Incoming Resources from
Generated Funds:
Donations and Legacies
Grant Received from
St. Hild and St. Bede
HMRC
Other Grants
Donations
Income from Investments:
Bank Interest
Income from Charitable Activities
Total Income and Endowments
Expenditure on :
Expenditure on Raising Funds
Expenditure on Charitable Activities
Total Expenditure on:
Net Income / (Expenditure) resources
before transfers
Transfers between funds
Net Movement in Funds
Balance as at 31st March 2021
Balance as at 31st March 2022
Notes
2
3
4
Unrestricted
Funds
£
0
0
0
1,015
1,015
25
1,039
20,212
21,251
466
36,448
36,914
(15,663)
98
(15,564)
357,363
341,799
Restricted
Funds
£
124,000
0
10,200
0
134,200
0
134,200
0
134,200
19
133,843
133,862
338
(98)
240
49,940
50,181
Total
Total
2022
2021
£
£
124,000
124,000
0
14,806
10,200
10,453
1,015
94
135,215
149,353
25
11
135,239
149,364
20,212
16,645
155,451
166,009
485
963
170,291
138,230
170,776
139,193
(15,324)
26,816
0
0
(15,324)
26,816
407,304
380,488
391,980
407,304

These notes form part of these financial statements

THE NORTH EAST RELIGIOUS LEARNING
RESOURCES CENTRE LIMITED
BALANCE SHEET AS AT
31 MARCH 2022
FIXED ASSETS
Tangible Assets (Note 8)
CURRENT ASSETS
CCLA Funds (Note 9)
Debtors (Note 10)
Cash at Bank and in Hand
CREDITORS : AMOUNTS FALLING DUE
WITHIN ONE YEAR (Note 11)
NET CURRENT ASSETS
NET ASSETS
CAPITAL AND RESERVES
Unrestricted Funds (Note 14)
Restricted Funds (Note 14)
Revaluation Reserve (Note 15)
Page 6
252,770
251,684
168,784
152,363
35,668
35,965
36,963
63,944
241,416
252,272
7,528
18,372
233,887
233,901
486,657
485,585
341,799
357,363
50,181
49,940
94,677
78,281
486,657
485,585
2022
2021
£
£
241,416
7,528

For the year ended 31 March 2022, the Company was entitled to exemption from the requirement to have an audit under the provisions of Section 477 of the Companies Act 2006. No notice has been deposited with the Company under Section 476 of that Act requiring an audit to be carried out.

Balance Sheet continues on page 7

Page 7

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

BALANCE SHEET AS AT 31 MARCH 2022

(Continued)

The Directors acknowledge their responsibilities for :-

1) ensuring that the Company keeps accounting records which comply with Section 386 and 387 of the Companies Act 2006, and

2) preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its profit for the financial year in accordance with the requirements of Section 394 and 395 of the Companies Act 2006 and which otherwise comply with the requirements of that Act relating to financial statements so far as applicable to the Company.

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and the Financial Reporting Standard For Smaller Entities.

In the Directors' opinion the Company is entitled to the exemptions as a small company.

Approved by the Board

Revd Joanne Thorns

Vice Chairperson

Date :

Page 8

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Notes
Net Cash (Outflow) / Inflow from Charitable
Activities
1
Less Transferred to Deposit Account
Less Capital Expenditure during Period
Less Investment Income Received
(Decrease) / Increase in Cash in Period
31.03.22
£
(24,483)
0
(2,473)
(25)
(26,981)
31.03.21
£
8,568
0
(8,499)
(11)
58

1. Reconciliation of Operating Surplus / (Deficit) to Net Cash Outflow from Charitable Activities

Operating (Deficit) / Surplus
Add : Depreciation
Decrease / (Increase) in Receivables
(Decrease) / Increase in Creditors
Net Cash (Outflow) / Inflow from Charitable Activities
2.
Analysis of Changes in Net Funds
Cash at Bank and In Hand as at 31 March 2021
CCLA Investment Revalue
Cash Flow
Cash at Bank and In Hand as at 31 March 2022
£
£
£
£
(15,324)
26,816
1,387
1,213
297
(29,623)
(10,843)
10,162
(9,159)
(18,248)
(24,483)
8,568
31.03.22
31.03.21
63,944
63,887
0
0
(26,981)
58
36,963
63,944
31.03.22
31.03.21
£
£
£
£
(15,324)
26,816
1,387
1,213
297
(29,623)
(10,843)
10,162
(9,159)
(18,248)
(24,483)
8,568
31.03.22
31.03.21
63,944
63,887
0
0
(26,981)
58
36,963
63,944
31.03.22
31.03.21
8,568
31.03.21
63,887
0
58
63,944

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 9

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Accounting Convention

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable accounting standards and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are as follows:

Financial Reporting Standard Number 1

Exemption has not been taken from preparing a cash flow statement on the grounds that the company qualifies as a small company as it is seen as enhancing the information provided by the financial statements.

Incoming Resources

Incoming Resources represents grants, sales and other work done during the year. It is prepared on an accrual basis.

Tangible Fixed Assets

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

Computer - 33% Reducing Balance Fixtures and Fittings - 10% Reducing Balance

The Trustees consider that the useful economic lives of the religious books are in excess of fifty years and that the recoverable amount on these books would be no lower than cost price. As a consequence any depreciation charged and accumulated would not be material to the accounts. In accordance with FRS 15, annual impairment reviews are undertaken to confirm that there is no change to the anticipated economic lives of these assets. New books purchased are charged directly to the SOFA, such that the value of books held remains constant.

Where assets are purchased with funds given for that specific purpose the Trustees may elect that the asset is written off in full in the year of acquisition in order to match expenditure with income.

Fund Accounting

Fund held by the charity are either :

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds - these funds are grants or donations received that require the funds to be used in a specific way or for a specific purpose.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Funds
£
Retail Sales - Books
245
Retail Sales - Cards
0
Retail Sales - Others
33
Membership
18,489
Book Fines
572
Royalties
104
Sundry Income
768
20,212
3.
EXPENDITURE ON RAISING FUNDS
Unrestricted
Funds
£
Advertising and Marketing
300
Cost of Retail Sales
166
466
4.
EXPENDITURE ON CHARITABLE ACTIVITIES
Unrestricted
Funds
£
Staff Costs
4,329
Resources Purchased
12,693
Subscriptions
0
Travel and Subsistence Costs
1,276
Health and Safety
0
Cleaning
42
Insurance
2,035
Sundry Expenses
637
Office Accommodation
0
Depreciation
1,387
Telephone
1,294
Postage
147
Printing and Stationery
1,698
Computer and Software
2,398
Repairs and Renewals
460
Treasurers Fees
6,181
Legal and Professional fees
1,017
Independent Examiner
840
Bank Charges
16
36,448
Restricted
Funds
£
0
0
0
0
0
0
0
0
Restricted
Funds
£
0
19
19
Restricted
Funds
£
116,768
6,562
1,492
255
75
0
0
39
1,760
0
973
0
1,188
4,696
0
0
0
0
35
133,843

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 11

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. STAFF COSTS

Total
Total
2022
2021
£
£
Wages, Salaries and social security costs
109,032
87,261
Pension Contributions
12,065
11,610
121,097
98,871
The average weekly number of employees during the year was :
6
7
No Employee received remuneration amounting to more than £60,000 in either year.
Mrs Jenkins received fees for being treasurer during the year, this is shown separately in Note 4.
Total
2021
£
87,261
11,610
98,871
7

Other Trustees received no remuneration and were not reimbursed for any of their expenses in either year.

6. NET OUTGOING RESOURCES

The Net Outgoing Resources are stated after charging :
Independent Examiner
Total
2022
£
840
Total
2021
£
840

7. TAXATION

No liability to UK Corporation Tax arose on activities for the period ended 31 March 2022.

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 12

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

(Continued)

8. TANGIBLE FIXED ASSETS

COST
As at 1 April 2021
Additions in the Year
Disposals in the Year
As at 31 March 2022
DEPRECIATION
As at 1 April 2021
Disposals in the Year
Charge for the Year
As at 31 March 2022
NET BOOK VALUE
As at 31 March 2022
As at 1 April 2021
9.
INVESTMENT ACCOUNT
CCLA CBF Deposit Fund
CCLA Investment Fund at valuation
10. DEBTORS
Amounts falling due within one year
Trade Debtors
Prepayments
11. CREDITORS : AMOUNTS FALLING DUE
WITHIN ONE YEAR
Trade Creditors
Accruals
Other Creditors
Computer
£
14,208
1,587
0
Other
Equipment
Books
£
£
35,374
239,460
886
0
0
0
Total
£
289,042
2,473
0
15,795 36,260
239,460
291,515
4,725
0
1,054
32,633
0
0
0
333
0
37,358
0
1,387
5,779 32,966
0
38,745
10,016 3,294
239,460
252,770
9,483 2,741
239,460
251,684
2022
£
9,107
159,677
168,784
2022
£
31,370
4,298
35,668
2022
£
1,598
840
5,091
7,528
2021
£
9,082
143,281
152,363
2021
£
31,426
4,539
35,965
2021
£
15,719
557
2,095
18,372

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

Page 13

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

(Continued)

12. CHARITABLE STATUS

The North East Religious Learning Resources Centre Limited is a Registered Charity (1055285)

13. SHARE CAPITAL

The North East Religious Learning Resources Centre Limited is a company limited by guarantee. (03188730)

14. RECONCILIATION OF MOVEMENTS IN RESERVES

General Funds
Unrestricted Funds - Current Assets
Unrestricted Funds - Fixed Assets and Books
Total General Funds
Restricted Funds
Lord Crewe's Charity Library - Book Stock
Lord Crewe's Charity Library - Journals
Lord Crewe's Charity Library - Staff
St. Hild and St. Bede Trust
Total Restricted Funds
Total Funds
Balance at
Transfer
Incoming
Resources
Balance at
1 April 2021
Between
Resources
expended
31 March 2022
Funds
£
£
£
£
£
154,916
98
18,778
(35,527)
138,266
202,447
0
2,473
(1,387)
203,533
357,363
98
21,251
(36,914)
341,799
48,896
0
3,000
(3,066)
48,830
1,044
0
1,200
(894)
1,350
0
0
6,000
(6,000)
0
0
(98)
124,000
(123,902)
0
49,940
(98)
134,200
(133,862)
50,181
407,304
0
155,451
(170,776)
391,980

15. REVALUATION RESERVE

The revaluation reserve shows the movement in value over the year of the CCLA investment fund.

Page 14

THE NORTH EAST RELIGIOUS LEARNING RESOURCES CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

(Continued)

16. PENSION COSTS

The North East Religious Learning Resources Centre (PB Classic) participates in the Pension Builder Scheme section of the Church Workers Pension Fund (CWPF) for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section know as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonus declared, is payable from member's Normal Pension Age.

There is no sub-division of assets between employer in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions payable (2022: £4,120, 2021: £4,120).

A valuation of the scheme is carried out once every three years. The most recent scheme valuation completed was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, The North East Religious Learning Resources Centre Ltd could become responsible for paying a share of the failed employer’s pension liabilities.