Charity Number 1069357 Company Number 03485699 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** Howsons (Audit & Assurance) Limited PO Box 165 Winton House Stoke Road Stoke on Trent ST4 2RW 1 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 |CONTENTS|| |---|---| ||**Page**| |Charity information|3| |Trustees' annual report|4| |Independent examiner’s report|10| |Statement of financial activities|11| |Balance sheet|12| |Notes to the accounts|14| 2 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## CHARITY INFORMATION ## **Governance** The organisation is a charitable company limited by guarantee, incorporated and registered as a charity on 24 December 1997. The company was established under a Memorandum of Association. The serving trustees elect the trustees. |**Trustees and Directors**|Mr M A Barker| |---|---| ||Mr J Bowles| ||Mr R Andrews| ||Mr C Cole| ||Mr A Boyd| |**Chief Executive Officer**|Mr J Bellamy| |**Company secretary**|Mr J Bowles| |**Registered office**|Conway House| ||Cheapside| ||Hanley| ||Stoke on Trent| ||ST1 1HE| |**Principal office**|Conway House| ||Cheapside| ||Hanley| ||Stoke on Trent| ||ST1 1HE| |**Independent Examiner**|Howsons (Audit & Assurance) Limited| ||PO Box 165| ||Winton House| ||Stoke Road| ||Stoke on Trent| ||ST4 2RW| 3 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT) The Board of Directors and Trustees present their annual report, together with the financial statements for the period ended 31 December 2020. |**Principal activity for**|The trustees have referred to the guidance contained in the Charity| |---|---| |**the public benefit:**|Commission's general guidance on public benefit when reviewing the| ||charity's aims and objectives, and in planning future objectives.| ||Cross Rhythms continued its activities to promote the values of the| ||Christian faith for the benefit of the public, particularly young people,| ||through broadcast media and related initiatives of radio, internet, new| ||media and training courses.| |**Radio Station:**|The radio station continued broadcasting on 101.8FM across Stoke-on-| ||Trent and Newcastle-under-Lyme. The station is streamed worldwide on| ||our website. Programmes are also syndicated to secular and Christian| ||radio stations worldwide. We operate with the benefit of the OFCOM| ||(government agency for licensing of all communications granted) license.| ||In addition we support current and explore future partnerships with| ||groups in other cities keen to reproduce our FM Community Radio model.| ||We continued developing our new online media platform aimed at UK| ||teenagers called XRhythms.| |**Internet and New**|Our website continues to strongly present the ministry and interact with a| |**Media:**|global audience. The site has editorial content that is both music and| ||non-music focussed. We also run a variety of social media sites for the| ||different aspects, using Facebook, Twitter, YouTube and Instagram.| |**TV programmes:**|We produce online video content for our social media pages. Also for our| ||new XRhythms vision we produce Vlogs (video bloggers/contributors)| ||and other video content for our Visual Radio programming.| |**Media Training**|We launched our accredited Media Training Centre in 2012. In 2020 we| |**Centre:**|continued to offer training in media and office skills for local students, or| ||unemployed or retired volunteers, and local disadvantaged young people| ||not in employment, education or training. In addition this centre also| ||offers a pathway for aspiring young Christians from across the UK to| ||follow a direction in Christian media. However these offers were| ||drastically reduced due to Coronavirus restrictions.| Cross Rhythms is a member of the Community Media Association and also works with others with similar aims and objectives, including the Christian Broadcasting Council, other Christian broadcasters, local and national churches and ministries, and community leaders. We are still developing, where the opportunity arises, other associations and partnerships. 4 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT) **Organisation:** The Board of Directors meets regularly, most months, and is responsible for the ultimate strategic decisions, having regard to advice from the Chief Executive and senior management. All meetings are held by Skype Tele conference call, except two physical meetings in June and November held at the CR HQ in Stoke-on-Trent (although physical meetings were not possible this year). In addition the CEO holds regular discussions for information and guidance and updates with the Chairman of the board and relevant information is distributed to the members as appropriate by electronic means on at least a monthly basis. A formatted monthly reporting structure has been used to keep all trustees updated monthly. ## **Review of the year's activities** ## **Radio Station:** 2020 was shaped by the impact and restrictions of Coronavirus. Most employees worked from home or were furloughed; no radio interviewees visited the station and the building ran at a much slower pace. Despite this, the local FM station continued to build links with the local churches (supporting them with new live church services on air) and the wider community being able to engage with police, health, education, business, MPs, councillors, theatres etc. The local Sentinel Newspaper supplied us local news each hour. We halted our outside broadcasts, including the Civic Prayer Breakfast and live broadcasts from venues in the six towns. We continued to offer the station online and on Smartphone through Radio Player. Most radio content focussed on COVID 19. We were awarded the opportunity to double our FM transmitter power, and to add a second transmitter (both of which we will do in 2021). Our FM station in Stoke targets a 25-55 audience, in recognition that less teenagers use FM radio. Our dedicated Facebook and Twitter pages for the station continue. However, again reduced in content as, for both our FM and social media output we only had a handful of volunteers and student interns working in our production department. We did launch a new Rock show with a new presenter. The collaboration with other groups in other cities continues to deliver Cross Rhythms in Plymouth. We also continue to help develop and support an online community radio station in the Middle East. Our syndication of 10 unique weekly shows continues to about 50 stations worldwide. ## **xRhythms:** Having launched in Oct 2019, our new XRhythms media platform, aimed at UK teenagers, continued to develop online, on social media and on YouTube this year. A main focus was building a team of young contributors – bloggers, vloggers and video producers. We have about 20. 5 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT) ## **Internet:** Our website activity has continued throughout the year at around 250,000 unique users. Although, again, due to Coronavirus a reduced amount of content was published. The radio station is streamed online along with our Listen Again facilities. Additionally, we have continued to develop our Facebook and Twitter social networking options and to keep delivering our weekly Life Files to around 1,000 people. Off the back of establishing the new XRhythms vision we are planning a wider repositioning of the main CR website in 2021/22. **Media Training** We continue to offer training and work experience placements for **Centre:** unemployed youth, as well as university and college student interns. Our primary focus however is on developing the army of young contributors to our xRhythms vision. We have been recruiting and training new bloggers and vloggers for the new platform. This new vision offers many opportunities to a whole new swathe of young people to be trained in video production/presenting, editing, interviewing, journalism and social media skills. The number of volunteers working with the charity this year dropped to about 100 from a normal 160+. **Conway House:** Rental income for use of our premises is a key support to the charity. We saw a reduction in tenant income from the previous year however, as our restaurant lease came to an end just before Coronavirus and we were unable to replace them. Similarly, our new Business Community CoWorking Hub called Wheelhouse did not meet income projections, due to the stop/start nature of the year through lockdowns and work from home. Long term expectations however, still predict this as a significant income stream for the charity. We continued to make reparations and decorations within the building as required. The rental income is included in the Statement of Financial Activities under Income from non-charitable trading activities. **Marketing:** Much of our marketing is through partnerships, being at events, contra deals and through our own media platforms eg the monthly Email Communicator, social media etc. Our Artists Partnerships department builds with UK and foreign music artists who then promote us to their sphere of influence. We occasionally attend music festivals to profile the work in the exhibition areas, although not in 2020. **General:** We continued to campaign for more monthly partners (Friends), but we put on hold our 3 physical mailings to our donor base due to Coronavirus. **Board membership:** The Board continues to function well with trustees who have expertise in key areas and carry that as a specific area of responsibility in addition to their collective responsibility. In addition, we have a group of supportive consultants who support the organisation as unpaid volunteers. **Trustee Recruitment** Cross Rhythms selects known potential trustees to fulfil a specific role **and Training:** within the board to provide levels of expertise necessary for the oversight and guidance to comply with our role and responsibilities on behalf of the 6 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT) donors. To ensure that the potential trustee fully understands the role a pack of information is provided that directs them towards the Charity Commissions guidance for a well-run charity and guidance for a wellmanaged company. A probationary period is required to allow a time of becoming aware of the role and responsibilities and after a review the appointment is then considered. ## **Financial review** The results for the year and the charity's financial position at the end of the year are shown in the attached accounts. The performance of the charity over the year is a result of the actions taken as described in this report. The plans for the future include further consolidation of the position and eventual accumulation of reserves in accordance with the reserves policy as established by the trustees. This year showed incoming resources of £241,824 (2019- £255,824). As with last year, we again turned in a surplus, of £32,492 (2019- £15,025). ## **Future developments** After 38 years Cross Rhythms has developed a strong basis of operation. We are recognised at a local, national and international level for the quality and uniqueness of what we do. We continue to attract new donors, supporters, partners and Trust support. We have two primary foci for further growth: 1) First, aimed particularly at UK Youth through our new online media strategy XRhythms, along with social media, YouTube and Media Training aspects. 2) Second, we are engaging more significantly in the business marketplace in Stoke-on-Trent in order to promote our new co-working hub, The Wheelhouse. We expect to develop and extend our collaborations with existing and new partnerships. The board have identified that earned income will grow to supplement gifted income. We continue to carry a commitment to additional Cross Rhythms radio stations in UK cities and ongoing discussions with interested parties continue. 7 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT) ## **Volunteer involvement** During the year Cross Rhythms has supplemented 8 salaried staff with over 60 volunteers at any one time. This year we saw about 100 volunteers and work experience students including about 25 reviewers and writers for the website. We also have a local FM radio board of reference made up of 6 local church leaders, and an XRhythms Board of Reference. ## **Employee involvement** Cross Rhythms relies on the well-trained experienced commitment and hard work of 9 full or part time staff. We have retained a core team who are very motivated and increasingly mature to the vision of Cross Rhythms. Although most would identify a key area of expertise, all are responsible to serve the growing ministry when and where required. Particularly as Cross Rhythms is such a developing under-resourced ministry, each person has to 'multi-task' to cover it. Weekly prayer meetings and monthly gatherings are held to build relationships, support and communication between the departments. These meetings also help nurture the 'community' of a team with a vision of many components. ## **Risk policy** The trustees are considering the risks to which the charity is subject and continue to develop ways to mitigate the risks. The major risk areas identified by the Trustees are as follows: - Financial Risk. This is mitigated by the scope of regular supporters to the charity. - Loss of broadcasting licence. The licence is renewed every five years. Cross Rhythms have been broadcasting since 2002 and have a good reputation with Ofcom. We do not foresee an issue with the licence renewal. ## **Reserves policy** It is the intention of the trustees to maintain reserves sufficient to cover 3 months of expenses. The trustees have continued to reduce costs and constantly seek ways of increasing income. ## **The trustees** The trustees who served the charity during the period were as follows: - Mr R Andrews - Mr M A Barker - Mr J Bowles - Mr C Cole - Mr A Boyd ## **Responsibilities of the trustees/directors** The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charity at the end of the year and of the incoming 8 YEAR ENDED 31 DECEMBER 2020 TRUSTEES. ANNUAL REPORT CORPORATING DIRECTORS. ANNUAL REPOR resou￿$ and application of resour￿5, induding wKome and exwditure, of the charity for thal year. In preparing those finanaal statements the trustees have: - selected suitable accounting policAes and Ihen applied them u)nsistenty: - observed the methods and prinaples in the charities SORP; - made judgements and estimates that are reasonable and prudent stated whelher applicable UK accounting standards have been foll0v￿. subjed to any material departure disdosed and explained in the financial statements; and prepa￿d the financial statements on the g￿r0 ￿)n￿rn basis unless it is inappropriate to presume the charity will continue in opera'on. The trustees have overall responsibility for ensuring that the charity has appropriate systems of controls, financial and Othe￿ise. They are also responsible for keepin9 proper accounting r￿rdS ich disdose with reasonable a￿racY at any time the financaal position of the thanty and enable Ihem lo ensure that the financ4al statements Viill comply with The Companies Ad 20CE. They are also responsible for safeguarding the assets of the thaiity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other rregularities. Trustees have complied wth the duty in Section 17(5) of th8 Charities Act 2011 to have due regard to guidance published by the Charity Commission. The Directors are also responsible for the maintenance and integrtty of thè corporate and finanoal infomiation induded on the CoMpan￿S website. In so far as the trustees are avAre there is no relevant infomialion of hthich the tharivs Independent Examiner is Unaw9￿ and the trustees have tsken all steps that they ought to have tsken to make themselves aware of any relevant infomation and to establish that the Independent Examiner is aware of that infonnation. The report is prepared in a¢xordance ￿1th the small conyary regime (se(aion 419(2) of the Companies Act 20(b). Auditor The charitys trustees COn￿der that an audit is not required for this year under section 144 of the Charrties Act 2011 ('Ihe Charities Acf) a￿1 Ihal an independent examination is needed. Registered offi￿. Conway House Cheapside Hanley Stoke-on-Trent ST1 1HE &gned by order of the trustees Mr M A Bark8r Approved by the trustees on YEAR EY4DED 31 DECEMBER 2020 INDEPENDENf EXAMINER'S REPORT TO THE 1RUSIEESI MEMBFRS OF CROSS Indo￿nd•￿ •xamln8ts r•Mto tho tru8iMB of Cro•• Rhythm•. l rnport pn the ac￿Unts of tho coThyny for th8 year 31 Decart￿ 2020. Ththk* are 8et oul on pag88 11 24. R•5pon•lbllltl￿ and Ixls af roport A8 the charty's trustees, you are re8p(m￿le tr the wepAralkn of the aLY4Junts in accordance with the requirements of the Ch8rii88 2011 fthe W. I report In r8spe(X of my 8xwnlnatk)n of th8 Tn￿¥ occount8 carrigd out under ￿clIc￿ 145 of th• 2011 Act and in carrylng out my ay2mlnotk)n, I ￿Ve f01b)v￿d al the akwlkablè Dlr•ctlon8 g￿en by tha Charity Commlssitin urKler ¥eraion 145(5Xb) of the fv Ind•pendont exaThlD•f• •latom• I hav8 complot•d my èxaminat￿. l thal rteAlal mattor8 hav8 ￿me to my attantlon in connecllon vllh tho ex7min8tk¥) whk* g1￿ m• c•u8e to bellm that In. 8ny mgtor]&l r8sp8Ct.' th? accwnimg recMds *•re not kqrt In arxwdgnca vAth soc￿n 130 of the Charlt Art. or thè a¢¢ounts did I￿1 a(xord w*h the accounthw rKord•,' or Ihg a￿Ounts not compty with the applicabb rwuwements concemlng the form and ntent of aea)unts set In the Charth8 (A￿unIS and Reports) Regulatlon8 2008 other than any r9qu1ro￿nt thgt th8 ac￿Unt8 gN8 a 'trug ond fairf viow whlch 18 not a matter ￿n$￿￿er8d a$ part ofan ty￿pend￿l examination. Ihav no concems and havg 8(YOS8 no other matter8 in connthn wtth the 8xamlnatlon to lorf. •hoLskl be dr￿￿ in Ihb Teport In othr to enabl8 a propgr und•r81gnding of the Jam98 R•lev•nt Prof•8ilonal Body.. ICAEW nlon House Stoke Road StOk￿n-TrenI ST4 2RW 12 io ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** ## YEAR ENDED 31 DECEMBER 2020 ## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) |**Total Funds**
**Unrestricted**
**Restricted**
**2020**
**Note**
**£**
**£**
**£**
**Incoming resources from**
**generated funds**
Voluntary income
2
**129,303**
**60,050**
**189,353**
**Activities for generating**
**funds**
Income from non-charitable
trading activities
3
**46,379**
**0**
**46,379**
Income from charitable trading
activities
4
**6,092**
**0**
**6,092**
**52,471**
**0**
**52,471**
**Total incoming resources**
**181,774**
**60,050**
**241,824**
**Resources expended**
**Costs of generating funds**
Costs of generating voluntary
income
5
**5,457**
**0**
**5,457**
**Charitable activities**
Costs in furtherance of
charitable objects
6
**121,369**
**67,345**
**188,714**
Governance costs
7
**5,437**
**0**
**5,437**
**Other resources expended**
Loan interest payable
8
**9,724**
**0**
**9,724**
**Total resources expended**
8
**141,987**
**67,345**
**209,332**
**Net income/ (expenditure) for**
**the year**
9
**39,787**
**(7,295)**
**32,492**
**Net gain on investments**
**0**
**0**
**Transfers between funds**
**2,928**
**(2,928)**
**0**
**Other recognised gains and**
**losses**
**0**
**0**
**0**
Net movement in funds relating
to the year
**42,715**
**(10,223)**
**32,492**
Balances brought forward
**295,574**
**86,258**
**381,832**
Balances carried forward
**338,289**
**76,035**
**414,324**|**Total Funds**
**2019**
**£**
186,948
65,501
3,375| |---|---| ||68,876
255,824| ||9,305
215,720
5,311
10,463| ||240,799| ||15,025
81,000
0
79,000| ||175,025
206,807| ||381,832| All of the activities of the charity are classed as continuing. 11 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## BALANCE SHEET |**Total**
**Unrestricted**
**Restricted**
**2020**
**Note**
**£**
**£**
**£**
**Fixed assets**
Intangible assets
10
**3,968**
**18,800**
**22,768**
Tangible assets
11
**360,814**
**1,588**
**362,402**
Investments
12
**336,000**
**0**
**336,000**
**700,782**
**20,388**
**721,170**
**Current assets**
Stock
**0**
**0**
**0**
Debtors
13
**7,974**
**15,810**
**23,784**
Cash at bank
**0**
**39,837**
**39,837**
**7,974**
**55,647**
**63,621**
**Creditors: Amounts falling due**
**within one year**
14
**(117,219)**
**0 (117,219)**
**Net current liabilities**
**(109,245)**
**55,647**
**(53,598)**
**Total assets less current**
**liabilities**
**591,537**
**76,035**
**667,572**
**Creditors: Amounts falling due**
**after more than one year**
15
**(253,248)**
**0 (253,248)**
**Net assets**
**338,289**
**76,035**
**414,324**
**Funds**
Restricted
16
**0**
**76,035**
**76,035**
Unrestricted
**28,069**
**0**
**28,069**
Revaluation reserve
**310,220**
**0**
**310,220**
**Total funds**
**338,289**
**76,035**
**414,324**|**Total**
**2019**
**£**
25,396
365,775
336,000| |---|---| ||727,171| ||0
27,388
44,150| ||71,538
(157,475)| ||(85,937)| ||641,234
(259,402)| ||381,832| ||86,258
(14,646)
310,220| ||381,832| - The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies. - The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 12 YEAR ENDED 31 DECEMBER 2020 BALAN￿ SHEET The diredors ac*novAedge their respOnsib￿lI1eS frJr Comp￿ wilh Ihe requirements of th8 Companies AL* wth respect to acuunting recths and the preparation of accounts. These acc£*unts have been Prepa￿ in aCa)rdan￿ ￿fjth the provisions applicabte to small companies subjed to the small companies regime and in accordance with the Charities SORP (FRS102). These accounts ￿￿re approved by the members of th8 U)M￿88 on ...... are signed on their behalf by". and Director Company Number 03485699 13 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## 1 **Accounting Policies** The charity is a public benefit entity. ## **Basis of accounting** The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" (SORP FRS102), the Charities Act 2011 and the Companies Act 2006. The accounts have also been prepared in accordance with the Financial Reporting Standard 102. The charity's functional and presentational currency is the pound sterling. Therefore these financial statements are presented in pounds sterling. ## **Cash flow statement** The trustees have taken advantage of the exemption in Financial Reporting Standard 102 from including a cash flow statement in the accounts on the grounds that the charity is small. ## **Fixed Assets** Fixed assets are recorded at cost or, in cases where fixed assets have been donated to Cross Rhythms, at estimated market value at the time of acquisition. The Charity’s policy is only to capitalise items with an individual or collective value (where it is a group of assets) exceeding £250. ## **Depreciation** Depreciation is calculated so as to write off the cost or value of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Equipment - 15% Reducing balance Improvements to property - 5% Straight line Website (Intangible asset) - 10% Straight line Freehold property is not depreciated as any charge made would be offset by the effect of a revaluation. This is a departure from the Companies Act 2006 and the SORP (FRS102) which require depreciation to be applied to all assets (other than investment properties and heritage assets) which require the cost or valuation of an asset less residual value to be depreciated over the useful economic life. In the opinion of the trustees, this departure is necessary in order for the financial statements to give a true and fair view. Freehold property is not depreciated as the estimated residual value of the asset is not materially different from the carrying amount of the asset. An impairment review is undertaken annually. The property was professionally revalued on 11 May 2020 and the valuation considered appropriate and adopted for these accounts. This property value has also been split between investment property and in use property. Had depreciation been applied to the property at, say, 2% (as is commonly applied to freehold property), a depreciation charge in the current year would have been £6,480 (2019 - £6,480).The effect on net assets would have been a reduction of £6,480 (2019 £nil due to the revaluation). ## **Investment Property** Investment Property is included at Market Value. An impairment review is undertaken annually and a professional valuation was conducted on 11 May 2020. 14 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## **Website** A new xRhythms website is included under intangible assets. The costs have been capitalised as the new website is a key requirement for the future direction of the charity and a significant investment. The website is stated at cost less accumulated amortisation and accumulated impairment losses. The costs are amortised over 10 years on a straight line basis from when the new website is brought into use being 28 September 2019. The amortisation period is based on the expected useful life of the website and has taken into account continued use and maintenance of the website. Where factors, such as technological advancement indicate that the useful life has changed, the useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the factors indicate that the carrying amount may be impaired. ## **Stock** Stock is shown at the lower of cost and net realisable value. ## **Financial Instruments** ## **Financial instruments classification** Basic financial assets, including trade and other debtors, cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Basic financial liabilities, including trade and other trade creditors, bank and other 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 receipts discounted at a market rate of interest. ## **Financial Instruments recognition and measurement** At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Financial Activities. ## **Impairment of financial assets** If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised in the Statement of Financial Activities. Financial assets are derecognised when a) the contractual rights to the cash flows from the asset expire or are settled, or b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. ## **Income** Income is recognised in the Statement of Financial Activities when the conditions for receipt have been met and there is reasonable assurance of receipt. Grants are recognised once the resource is receivable by the charity and can be measured with reasonable reliability. Gifts in kind, such as assets given for use by the charity are recognised as income when received and are recorded at their estimated market value. Assets given for distribution by the charity are recognised as income when distributed. Voluntary help is not recognised in the Statement of Financial Activities. 15 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## **Expenditure** Expenditure incurred directly in the fulfilment of the charity's objectives is included in direct charitable expenditure. ## **Fund accounting** Unrestricted fund incoming resources have been received or generated for expenditure in furtherance of the general objectives of the charity. Designated funds are unrestricted funds which have been designated for specific purposes by the trustees. Restricted funds are to be used for specific purposes laid down by the donors. ## **Allocation of costs between activities** Staff costs have been allocated based on job roles and time spent between activities. ## 2 **Voluntary income** |Gifts and donations
Gift aid
Grants
Government Covid support and job retention grants
3 **Income from non-charitable trading**
Rents from Cross Rhythms' premises|**Total Funds**
**2020**
**£**
**102,282**
**14,016**
**38,250**
**34,805**
**189,353**
**Total Funds**
**2020**
**£**
**46,379**|**Total Funds**
**2019**
**£**
122,325
16,549
48,074
0| |---|---|---| |||186,948| |||**Total Funds**
**2019**
**£**
65,501| 16 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS > 4 **Income from charitable trading activities** |Trading: Radio and website advertising
Other charitable trading
5 **Activities for generating funds**
**Costs of generating voluntary income**
Marketing and fundraising costs
Staff costs
6 **Costs in furtherance of charitable objectives**
**Provision of charitable services**
Radio
Other charitable trading
XRhythms
Media training
Cross Rhythms Worldwide
Other charitable support|**Total Funds**
**2020**
**£**
**4,625**
**1,467**
**6,092**
**Total Funds**
**2020**
**£**
**5**
**5,452**
**5,457**
**Total Funds**
**2020**
**£**
**55,076**
**(97)**
**45,506**
**1,738**
**14,130**
**72,361**
**188,714**|**Total Funds**
**2019**
**£**
3,375
0| |---|---|---| |||3,375| |||**Total Funds**
**2019**
**£**
3,453
5,852| |||9,305| |||**Total Funds**
**2019**
**£**
58,731
(106)
32,787
2,035
14,334
107,939| |||215,720| 17 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## **Analysis of provision of charitable services** |Radio
Other charitable trading
XRhythms
Media training
Cross Rhythms Worldwide
Other charitable support|**Total Funds**
**Total Funds**
**Staff costs**
**Depreciation/**
**Amortisation**
**Other costs**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**
**33,195**
**6,094**
**15,787**
**55,076**
58,731
**0**
**0**
**(97)**
**(97)**
(106)
**40,437**
**493**
**4,576**
**45,506**
32,787
**1,738**
**0**
**0**
**1,738**
2,035
**3,556**
**0**
**10,574**
**14,130**
14,334
**46,107**
**0**
**26,254**
**72,361**
107,939
**125,033**
**6,587**
**57,094**
**188,714**
215,720| |---|---| ## 7 **Governance** |Salaries
Accountancy fees
Independent examination fees
Legal fees
Professional fees|**Total Funds**
**Total Funds**
**2020**
**2019**
**£**
**£**
**3,580**
4,170
**0**
0
**1,205**
1,087
**50**
54
**602**
0
**5,437**
5,311| |---|---| > 8 **Total resources expended** |**Total Funds**
**Staff costs**
**Depreciation**
**Other costs**
**2020**
**£**
**£**
**£**
**£**
Direct charitable expenditure
**125,033**
**6,587**
**57,094**
**188,714**
Activities for generating funds
**5,452**
**0**
**5**
**5,457**
Governance costs
**3,580**
**0**
**1,857**
**5,437**
Other resources expended
**0**
**0**
**9,724**
**9,724**
**134,065**
**6,587**
**68,680**
**209,332**
**The aggregate payroll costs were:**
**2020**
**£**
Wages and salaries
**128,335**
Social security costs
**5,730**
**134,065**|**Total Funds**
**2019**
**£**
215,720
9,305
5,311
10,463| |---|---| ||240,799| ||**2019**
**£**
142,233
6,757| ||148,990| 18 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## 8 **Total resources expended (continued)** As Charity Trustees, the Board of directors, who are not employees, are not included above. They receive no remuneration for their services. Expenses were reimbursed or paid directly to third parties for Travel and Accommodation on behalf of two Trustees to enable them to attend Trustee meetings. The total paid in the year was £0 (2019 £343). No employee received emoluments in excess of £60,000 during the period. ## **Particulars of employees:** The average number of staff employed by the charity during the financial year amounted to: |Number of fundraising staff
Number of administrative staff
Number of management staff
Other direct charitable staff
**Other costs:**
Legal and Professional
Other
**Net outgoing resources**
Net outgoing resources after charging/(crediting)
Depreciation and amortisation
(Profit)/loss on disposal of fixed assets
Independent Examiner's remuneration - the independent
examination of the charity's accounts|**2020**
**No**
**1**
**2**
**1**
**4**
**8**
**2020**
**£**
**1,857**
**66,823**
**68,680**
**2020**
**£**
**6,587**
**0**
**1,205**|**2019**
**No**
1
2
1
5| |---|---|---| |||9| |||**2019**
**£**
1,141
85,309| |||86,450| |||**2019**
**£**
5,359
(198)
1,087| ## 9 **Net outgoing resources** 19 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** ## YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS |10 **Intangible Fixed Assets**
**Cost or valuation**
At 1 January 2020
Additions
Disposals
**At 31 December 2020**
**Amortisation**
At 1 January 2020
Charge for the year
**At 31 December 2020**
Net book value
**At 31 December 2020**
At 31 December 2019|**Website**
**£**
26,272
0
0| |---|---| ||**26,272**| ||876
2,628| ||**3,504**| ||**22,768**| ||25,396| 20 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** ## YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## 11 **Tangible Fixed Assets** |**Cost or valuation**
At 1 January 2020
Additions
Disposals
Transfer to investment property
Revaluation
**At 31 December 2020**
**Depreciation**
At 1 January 2020
Charge for the year
Eliminated on disposal
**At 31 December 2020**
Net book value
**At 31 December 2020**
At 31 December 2019|**Freehold**
**Property**
**Improvements**
**to Property**
**Equipment**
**£**
**£**
**£**
324,000
3,995
131,146
0
0
586
0
0
0
0
0
0
0
0
0
**324,000**
**3,995**
**131,732**
0
270
93,096
0
270
3,689
0
0
0
**0**
**540**
**96,785**
**324,000**
**3,455**
**34,947**
324,000
3,725
38,050|**Total**
**£**
459,141
586
0
0
0| |---|---|---| |||**459,727**| |||93,366
3,959
0| |||**97,325**| |||**362,402**| |||365,775| The trustees completed the purchase of a freehold building previously occupied by BBC Radio Stoke on 31 May 2002 at a purchase price including equipment and transaction costs of £306,010. The property was professionally valued by Rory Mack Limited who are members of RICS professional body and external to the charity, on 11 May 2020, on a market value basis, and their valuation has been adopted in the accounts. As the property is mixed use, it has been split between Investment Property at £336,000 (note 12) and Freehold Property in use at £324,000 (note 11). (The previous external valuation to this was on 22 September 2014). |12 **Investment Property**
**Cost or valuation**
At 1 January 2020
Transfer from Tangible fixed assets
Revaluation
**At 31 December 2020**|**£**
336,000
0
0| |---|---| ||**336,000**| 21 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** ## YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## 13 **Debtors** |Trade debtors
Income tax recoverable
Other debtors
Prepayments|**2020**
**2019**
**£**
**£**
**2,346**
3,021
**228**
499
**17,218**
20,563
**3,992**
3,305
**23,784**
27,388| |---|---| ## 14 **Creditors: Amounts falling due within one year** |Bank loans and overdrafts
Trade creditors
Taxation and social security
Other creditors
Gross wages and employers national insurance accrual
Accruals and deferred income|**2020**
**2019**
**£**
**£**
**6,061**
2,905
**7,945**
13,490
**10,073**
4,934
**35,215**
40,900
**25,833**
40,369
**32,092**
54,877
**117,219**
157,475| |---|---| Within accruals and deferred income above, £10,764 (2019 - £11,353) comprises rental income charged in advance. ## 15 **Creditors: Amounts falling due after more than one year** |Bank and other loans|**2020**
**2019**
**£**
**£**
**253,248**
259,402
**253,248**
259,402| |---|---| Of the above loan amounts the following amount is due in instalments after 5 years: ||**2020**|**2019**| |---|---|---| ||**£**|**£**| |Bank and other loans|**212,878**|220,601| Included in loans due after more than one year is a loan from Triodos Bank for £253,248 that has been secured by a legal charge over the company's freehold premises and other assets with interest at 3% above the Bank of England base rate per annum. The loan has been measured at the principal amount payable. There is also a balance of £6,061 (2019 - £2,905) on this loan which is due in less than one year. This is included within Bank loans and overdrafts in note 14. 22 ## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS ## 16 **Restricted funds** |Media Training
fund
Churches Media
Trust
UK Youth
Broadcasting
Infrastructure
Other Restricted
gifts funds|**Brought**
**Forward**
**Incoming**
**resources**
**Outgoing**
**resources**
**Transfers**
**Balance**
**carried**
**forward**
**£**
**£**
**£**
**£**
**£**
8,342
0
0
0
8,342
7,657
0
0
0
7,657
47,066
48,561
(54,996)
(2,727)
37,904
20,000
0
0
0
20,000
3,193
11,489
(12,349)
(201)
2,132
86,258
60,050
(67,345)
(2,928)
76,035| |---|---| Sufficient resources are considered to be held in an appropriate format to enable each fund to be applied. ## **Fund purposes:** ## The Churches Media Trust: The Churches Media Trust grant has been provided for making bursaries available for students and to contribute towards the work for the Media Training Community Courses. ## Media Training fund: Launched in September 2012, the Cross Rhythms Media Training Centre is a base to train, equip and disciple the next generation of 'media missionaries'. Young people from across the UK explore a 'call' to serve God in media, gaining training in a variety of media courses, as well as invaluable work experience in a live FM radio setting. In addition, training in media, journalism, reception, administration and business skills are offered to local disadvantaged youth in partnership with groups such as Job Centre Plus. The fund balances above incorporate restricted giving towards various aspects of this work. ## UK Youth: Reaching a youth generation through XRhythms. 61% of young people feel that adults are out of touch with their relationships; 46% believe that sexting is part of everyday teenage life; 43% experience bullying at least once a week; 20% selfharm on a regular basis and 41% believe religion is more often the cause of evil in the world. XRhythms will change the diet of what a youth generation is consuming through media! To offer them a Christian response to the issues affecting their lives. xRhythms was launched on 28 September and is a brand new online Visual Radio station complete with its own dedicated website, YouTube channel, and specialist use of social media platforms like Instagram, Snapchat and Facebook, aimed at the 13’s-20’s. 23 **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** YEAR ENDED 31 DECEMBER 2020 ## NOTES TO THE ACCOUNTS (£22,086 (2018 - £25,078) of the fund balance is spent but still shown as a restricted fund balance as it is represented by restricted intangible and tangible fixed assets.) Broadcasting Infrastructure: Cross Rhythms were awarded a grant towards capital expenditure enabling improvement of broadcasting infrastructure. ## 17 **Related Parties** Spirit of Plymouth (Radio) Limited is a radio station that uses the Cross Rhythms template and has a common trustee in Christopher Cole. During the year Cross Rhythms received income for support services totalling £3,585 (2019 - £3,107) of which £680 (2019 - £250) was outstanding at the year end. Gilead Foundations has a common trustee in Christopher Cole. Included in the accruals figure is an amount owing to Gilead Foundations of £nil (2019 - £4,808). Undrawn net wages jointly by Jonathan Bellamy and his wife, Heather Bellamy, a member of Executive Management at the year end totalled £16,969 (2019 - £15,636). There are also gross wages that Jonathan Bellamy and Heather Bellamy are contractually entitled to. They have decided to defer payment until the charity is in a good position to clear this. The amounts have been accrued for in the accounts and total £22,700 (2019 - £35,474). All outstanding amounts stated above will be settled in cash. Aggregate gifts in the year from related parties was £5,585 (2019- £6,460). ## 18 **Going concern** The charity has net current liabilities of £53,598 and its income is substantially dependent upon gifts and donations which, by their very nature, are uncertain and would impact on the charity’s loan covenants and its ability to continue as a going concern. The charity has reviewed the effects of COVID on its income and forecasts and projections continue to show that the charity will be able to operate as a going concern for the foreseeable future. Accordingly, the trustees continue to adopt the going concern basis in preparing the annual report and financial statements. ## 19 **Company limited by guarantee** Cross Rhythms is incorporated as a company limited by guarantee and is registered in England and Wales. The members are each liable to contribute up to £10 in the event of the company being wound up. There were 5 directors at the year end and 5 at the beginning of the year. No directors were appointed during the year. 24