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2021-12-31-accounts

Charity Number 1069357 Company Number 03485699

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 2021

CONTENTS
Page
Charity information 3
Trustees' annual report 4
Independent examiner’s report 11
Statement of financial activities 12
Balance sheet 13
Notes to the accounts 15

2

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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 2021

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 2021.

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. Radio Stations: The Cross Rhythms City Radio station continued broadcasting on 101.8FM across Stoke-on-Trent and Newcastle-under-Lyme. The station is streamed on our website. Programmes are also syndicated to secular and Christian radio stations worldwide. We operate under 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 UK teenage focussed platform XRhythms, this year launching a new DAB station across Tyneside & South Shields. 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. Video content: 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 2021 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. These offers were drastically reduced due to Coronavirus restrictions. However we also employed nine young people under the government’s Kickstart placement scheme, training them in various media skills.

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.

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CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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 only one physical meetings was possible this year due to Covid restrictions).

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 adopted to keep all trustees updated monthly.

Review of the year's activities

Radio Station:

2021 was shaped by the impact and restrictions of Coronavirus. Most employees returned from work from home or furlough; but we limited volunteers and radio interviewees visiting the station and as such the building ran at a much slower pace. Despite this, the local FM station continued to serve the local churches and Christian ministries through on air programming, and the wider community through engaging with police, health, education, business, charities, MPs, councillors, theatres etc. The local Sentinel Newspaper supplied us local news each hour. Once again 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 mobile through RadioPlayer.

This year we set up a second transmitter site in the south of the city, providing better coverage to the south and to Newcastle-under-Lyme with a second frequency. We also doubled our FM transmitter power across the whole city.

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 employed nine new placements under the government’s Kickstart scheme, four of which into our Radio station team – a Radio Production engineer, a new presenter (for our Saturday and Sunday afternoon shows), and two for our social media output.

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.

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CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT)

xRhythms: Having launched in October 2019, our XRhythms media platform, aimed at UK teenagers, took a big step forward this year online, on social media and on YouTube this year. As well as a small team of young contributors – bloggers, vloggers and video producers, five of our new Kickstart placements joined the XR team – a Music journalist, a video editor, a Life blogger, a Life Vlogger and a Social Media editor.

A huge step was taken end of the year when we launched the first of potentially numerous Small Scale DAB radio stations, covering Tyneside and South Shields. This new station is a first xRhythms station.

Internet: Our website activity has continued throughout the year at around 250,000 unique users. Although, again, due to Coronavirus, and the retirement of two core members of the music editorial team, a reduced amount of content was published. Similarly with our social media output. The radio station is streamed online along with our Listen Again facilities. Our plan is a full repositioning of the main CR website when funds allow.

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 in 2021 however was on our Kickstart placements and our 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 pre-covid level of 160+.

Conway House: Rental income for use of our premises is a key support to the charity. Having lost our restaurant tenant just before Coronavirus hit, in 2021 we were able to replace them with new tenants. Similarly, although our new business community co-working hub, Wheelhouse, did not meet income projections, due to Covid impact, we did secure a major client whose demand of our space has seen the addition of a major building income to the charity. Long term expectations for Wheelhouse still predict this as a significant income stream for the charity. For the first time since acquiring the building every area of usable space has been rented out to tenants. We continued to make reparations and decorations within the building as required, including stage one of major project to make outdoor concrete reparations. 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 2021.

6

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT)

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 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 £271,028 (2020- £241,824). As with last year, we again turned in a surplus, of £13,091 (2020- £32,492).

Future developments

After 39 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 three 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; now with the additional vision of multiple DAB radio stations.

2) Second, to maximise on the improvements to our FM station coverage in Stoke, with improved content and programming.

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CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT)

3) Third, to engage 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.

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CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

TRUSTEES’ ANNUAL REPORT (INCORPORATING DIRECTORS’ ANNUAL REPORT)

Volunteer involvement

During the year Cross Rhythms has supplemented 16 (including Kickstart) 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 8 full or part time staff. Over many years we have retained a core team who are very motivated and increasingly mature to the vision of Cross Rhythms. Most would identify a key area of expertise, but all are responsible to serve the growing ministry when and where required. Through the two Covid years however three of those core members have retired, with two becoming volunteers. With Cross Rhythms a developing but under-resourced ministry, the quality of this support and commitment is exemplary. We are however now at the beginning of a new season of seeing a new team of employees being added who can take the vision/ministry forward. 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:

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:

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).

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YEAR ENDED 31 DF£EMBEEi 2021 Company Law requires the trustees to PreP￿e fmant?al stateffents for eath finanaal year that gi￿ a true and fair view of the state of affair5 of Ihe charity at the ￿ of the >par and of the incoming resources and application of reswces. induding inctsmo aTrJ expth1di￿ of the charlty for that year. In prepanrKJ those financial statements the trustees have: - Selected suitable accounting pol￿[eS and then apFAi￿ them ￿r￿ISten￿ . observed the methods and winL?ples in the chafities SORP: - made judgements estimates that are reas(Thble Fyudentr. - stated whether applicable UK accounting stsndards have been follty￿1. Su￿.8¢1 to any material departure disdosed and explained in the financial statemenls; and . prepared the financial statements on the goirKJ concam basis urless it ss inappropriats to presume the thartty will continue in o[Ernti￿. The trustees have overall responsibilty for ensuring that the tharity has appropriate systems of controls. financkql and otheThvi5e. They are also responsiNe for keepiryJ proper accx)unting rec￿d5 which disclose with reasonable aC￿racY at any time th6 financ4al Fosthl of the charity and enable them to ensure that the financial statements will ￿Y with The ccynpan￿S Act 2006. They a￿ also responsible for safeguarding the assets ol thè dwrity and hence ftx takfftg reasonable steps for the preventlon and detect￿n of fraud and other irregulafities. Trustees have ￿mplied bmth the duty in Section 17(5) of the Charities 2011 to have ward to guidance published by the Charity Commission. The Directors are also responsible for the maintenance arKI integrity of the Corporate and finandal infomation induded on the Comp￿￿$ vthite. In so far as the trustees are ￿re there is no relevant ￿rf￿rn8kn of Mthich the ¢hariVs Indewndont Examiner is unaware and tho trustees haN¢ taken all sty that they ought to have taken to make thèrnsel￿ aware of any relevant infomiation and to e&ab￿Sh that the Independent Examinor is aware of Ihat irrformation. Tho report is prepared in accordanc• with tl* srrAU (Thipany rgJime (section 419{2) of the Companles Act 2006). Audltor The charitys trustees COn￿der that an audit is not required for this year urKler section 144 of the Charitses Aci 20111lhe Charities Acr) and that an exaThunation is needed. R6gistered office: cOn￿Y House Cheapside Hantey Stoke-on-Trent s￿n￿l by ord¥ of the twstees ST1 1HE rMABvker D4rector

CROSS RHYTllMS COMPANY LIMITED BY GUARANTEE YEAR ENDED 31 DECEMBER 2021 INDEPENDENT EXAMtNER'S REPORT TO THE TRUSTEES/ MEMBERS OF CROSS RHYTHMS COMPANY LIMITED B Y GUARANfEE Independent examlnefs rnport to the trustees of Cr088 Rhythms. I report on the accounts of the company for the year ended 31 December 2021. which are s8t out on pages 12 to 25. Responslbllltles and basls of report As th8 charivs trustees, you are responsible fcy the preparats'on of accounts in accordance wrth the requirements of the Charities Act 2011 fthe Acn. I report in respect of my examination of Ihe Trusfs accounts carried out under section 145 of the 2011 Act and in carrying out my examination. I have follow￿1 all the applicable Directions given by the Charrty Commission under se(knn 145(5)(b) of the A¢#. Independent examlnets Statement I have completed my examinab'on. I confim that no material matters have come to my attention In connection with the examination which gives me cause to believe that in, any material respect: the accountlng records were not kept In ￿)rdance wrth sedlon 130 of the Charities Act., or the accounts did not accord with the accounting records; or the accounts did not comply with the applicable requirements conc8mlng the fom and content of accounts set out in the Charrt￿$ {AcvJunts and Reports) Regulations 2008 other Ih8n any requirement that the aiuunts give a 'true and f81rf view which Is not matter ¢onsidefed as part of an Indepe￿nI examlnation. I have no concems 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 reached. James Parr (FCCAI Relevant Profes8lonal 8ody: ACCA nton House Stoke Road Stok&orkTrent ST4 2RW Date 2d22

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

Total Funds
Unrestricted
Restricted
2021
Note
£
£
£
Incoming resources from
generated funds
Voluntary income
2
154,439
59,990
214,429
Activities for generating
funds
Income from non-charitable
trading activities
3
48,180
0
48,180
Income from charitable trading
activities
4
8,419
0
8,419
56,599
0
56,599
Total incoming resources
211,038
59,990
271,028
Resources expended
Costs of generating funds
Costs of generating voluntary
income
5
7,245
0
7,245
Charitable activities
Costs in furtherance of
charitable objects
6
151,962
81,451
233,413
Governance costs
7
7,265
0
7,265
Other resources expended
Loan interest payable
8
10,014
0
10,014
Total resources expended
8
176,486
81,451
257,937
Net income/ (expenditure) for
the year
9
34,552
(21,461)
13,091
Net gain on investments
0
0
Transfers between funds
2,892
(2,892)
0
Other recognised gains and
losses
0
0
0
Net movement in funds relating
to the year
37,444
(24,353)
13,091
Balances brought forward
338,289
76,035
414,324
Balances carried forward
375,733
51,682
427,415		 Total Funds
2020
£
189,353
46,379
6,092
52,471
241,824
5,457
188,714
5,437
9,724
209,332
32,492
0
0
0
32,492
381,832
414,324

All of the activities of the charity are classed as continuing.

12

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

BALANCE SHEET

Total
Unrestricted
Restricted
2021
Note
£
£
£
Fixed assets
Intangible assets
10
3,968
16,172
20,140
Tangible assets
11
362,690
1,324
364,014
Investments
12
336,000
0
336,000
702,658
17,496
720,154
Current assets
Stock
0
0
0
Debtors
13
7,637
9,832
17,469
Cash at bank
0
24,354
24,354
7,637
34,186
41,823
Creditors: Amounts falling due
within one year
14
(85,986)
0
(85,986)
Net current liabilities
(78,349)
34,186
(44,163)
Total assets less current
liabilities
624,309
51,682
675,991
Creditors: Amounts falling due
after more than one year
15
(248,576)
0 (248,576)
Net assets
375,733
51,682
427,415
Funds
Restricted
16
0
51,682
51,682
Unrestricted
65,513
0
65,513
Revaluation reserve
310,220
0
310,220
Total funds
375,733
51,682
427,415		 Total
2020
£
22,768
362,402
336,000
721,170
0
23,784
39,837
63,621
(117,219)
(53,598)
667,572
(253,248)
414,324
76,035
28,069
310,220
414,324

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YEAR ENDED 31 DEfEMBER W21 BALANCE SHEET The directOT5 aCk￿￿￿e their respO￿b￿tIl8S for o)mplyirKJ vrith the rtyuirements of tt)e compan￿ Ad vrith resp&t to ac£￿n11r￿￿ recfyds the weparation of acojunts. These aCC￿nIS have been wepared in a¢xor(knce V*ith the provisKJns applicable to small companies sthiect to the srftqll (xxrpanies regbrn and in acurdarte with the Charities SORP (FRS102). and are signed on their behalf by. Mr M A Barker Director Company NunKber 03485699

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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 (2020 - £6,480).The effect on net assets would have been a reduction of £12,960 (2020 £6,480 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.

15

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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.

16

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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 Kickstarter Scheme grants
Government Covid support and job retention grants
3 Income from non-charitable trading
Rents from Cross Rhythms' premises		 Total Funds
2021
£
103,441
13,959
40,500
56,406
123
214,429
Total Funds
2021
£
48,180		 Total Funds
2020
£
102,282
14,016
38,250
0
34,805
189,353
Total Funds
2020
£
46,379

Rents from Cross Rhythms' premises

17

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

4 Income from charitable trading activities

Trading: Radio and website advertising
Other charitable trading		 Total Funds
Total Funds
2021
2020
£
£
5,341
4,625
3,078
1,467
8,419
6,092
5 Activities for generating funds
Costs of generating voluntary income
Marketing and fundraising costs
Staff costs		 Total Funds
Total Funds
2021
2020
£
£
1,852
5
5,393
5,452
7,245
5,457
6 Costs in furtherance of charitable objectives
Provision of charitable services
Radio
Other charitable trading
XRhythms
Media training
Cross Rhythms Worldwide
Other charitable support
Analysis of provision of charitable services
Staff costs
Depreciation/
Amortisation
Other costs
£
£
£
Radio
55,586
18,885
20,012
Other charitable trading
0
0
(374)
XRhythms
67,965
493
7,519
Media training
1,328
0
0
Cross Rhythms Worldwide
3,648
0
7,931
Other charitable support
22,985
0
27,435
151,512
19,378
62,523		 6 Costs in furtherance of charitable objectives
Provision of charitable services
Radio
Other charitable trading
XRhythms
Media training
Cross Rhythms Worldwide
Other charitable support
Analysis of provision of charitable services
Staff costs
Depreciation/
Amortisation
Other costs
£
£
£
Radio
55,586
18,885
20,012
Other charitable trading
0
0
(374)
XRhythms
67,965
493
7,519
Media training
1,328
0
0
Cross Rhythms Worldwide
3,648
0
7,931
Other charitable support
22,985
0
27,435
151,512
19,378
62,523		 Total Funds
2021
£
94,483
(374)
75,977
1,328
11,579
50,420
233,413
Total Funds

2021

£

94,483

(374)

75,977

1,328

11,579

50,420

233,413		 Total Funds
2020
£
55,076
(97)
45,506
1,738
14,130
72,361
188,714
Total Funds
2020
£
55,076
(97)
45,506
1,738
14,130
72,361
151,512
19,378
62,523		 188,714

18

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

7 Governance

Salaries
Accountancy fees
Independent examination fees
Legal fees
Professional fees		 Total Funds
Total Funds
2021
2020
£
£
3,784
3,580
0
0
1,181
1,205
0
50
2,300
602
7,265
5,437

8 Total resources expended

Total Funds
Staff costs
Depreciation
Other costs
2021
£
£
£
£
Direct charitable expenditure
151,512
19,378
62,523
233,413
Activities for generating funds
5,393
0
1,852
7,245
Governance costs
3,784
0
3,481
7,265
Other resources expended
0
0
10,014
10,014
160,689
19,378
77,870
257,937
The aggregate payroll costs were:
2021
£
Wages and salaries
154,579
Social security costs
6,110
160,689		 Total Funds
2020
£
188,714
5,457
5,437
9,724
209,332
2020
£
128,335
5,730
134,065

19

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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 £316 (2020 £0).

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
9 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		 2021
No
0
2
1
7
10
2021
£
3,481
74,389
77,870
2021
£
19,378
(2,377)
1,181		 2020
No
1
2
1
4
8
2020
£
1,857
66,823
68,680
2020
£
6,587
0
1,205

20

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

10 Intangible Fixed Assets
Cost or valuation
At 1 January 2021
Additions
Disposals
At 31 December 2021
Amortisation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Website
£
26,272
0
0
26,272
3,504
2,628
6,132
20,140
22,768

21

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

11 Tangible Fixed Assets
Cost or valuation
At 1 January 2021
Additions
Disposals
Transfer to investment property
Revaluation
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Eliminated on disposal
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
Property
Improvements
to Property
Equipment
£
£
£
324,000
3,995
131,732
0
0
18,362
0
0
0
0
0
0
0
0
0
324,000
3,995
150,094
0
540
96,785
0
270
16,480
0
0
0
0
810
113,265
324,000
3,185
36,829
324,000
3,455
34,947		 Total
£
459,727
18,362
0
0
0
478,089
97,325
16,750
0
114,075
364,014
362,402

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 2021
Transfer from Tangible fixed assets
Revaluation
At 31 December 2021		 £
336,000
0
0
336,000

22

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

13 Debtors

Trade debtors
Income tax recoverable
Other debtors
Prepayments		 2021
2020
£
£
1,460
2,346
225
228
11,838
17,218
3,946
3,992
17,469
23,784

14 Creditors: Amounts falling due within one year

2021
£
Bank loans and overdrafts
9,227
Trade creditors
7,394
Taxation and social security
6,511
Other creditors
24,715
Gross wages and employers national insurance accrual
13,348
Accruals and deferred income
24,791
85,986
Creditors: Amounts falling due after more than one year
2021
£
Bank and other loans
248,576
248,576
Of the above loan amounts the following amount is due in instalments after 5 years:
2021
£
Bank and other loans
208,268		 2020
£
6,061
7,945
10,073
35,215
25,833
32,092
117,219
2020
£
253,248
253,248
2020
£
212,878

15 Creditors: Amounts falling due after more than one year

Included in loans due after more than one year is a loan from Triodos Bank for £248,576 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 £9,227 (2020 - £6,061) on this loan which is due in less than one year. This is included within Bank loans and overdrafts in note 14.

23

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

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
37,904
45,739
(56,326)
(2,712)
24,605
20,000
0
(12,314)
0
7,686
2,132
14,251
(12,811)
(180)
3,392
76,035
59,990
(81,451)
(2,892)
51,682

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 2019 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.

24

CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 DECEMBER 2021

NOTES TO THE ACCOUNTS

(£16,647 (2020 - £19,359) 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 £4,391 (2020 - £3,585) of which £NIL (2020 - £680) was outstanding at the year end.

Undrawn net wages jointly by Jonathan Bellamy and his wife, Heather Bellamy, a member of Executive Management at the year end totalled £12,377 (2020 - £16,969). 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 £11,729 (2020 - £22,700).

All outstanding amounts stated above will be settled in cash.

Aggregate gifts in the year from related parties was £3,882 (2020- £5,585).

18 Going concern

The charity has net current liabilities of £44,163 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 lingering 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.

25