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. 

4 



## **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. 

5 



## **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. 

7 



## **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. 

8 



**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: 

- 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). 

9 



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**<br>**Unrestricted**<br>**Restricted**<br>**2021**<br>**Note**<br>**£**<br>**£**<br>**£**<br>**Incoming resources from**<br>**generated funds**<br>Voluntary income<br>2<br>**154,439**<br>**59,990**<br>**214,429**<br>**Activities for generating**<br>**funds**<br>Income from non-charitable<br>trading activities<br>3<br>**48,180**<br>**0**<br>**48,180**<br>Income from charitable trading<br>activities<br>4<br>**8,419**<br>**0**<br>**8,419**<br>**56,599**<br>**0**<br>**56,599**<br>**Total incoming resources**<br>**211,038**<br>**59,990**<br>**271,028**<br>**Resources expended**<br>**Costs of generating funds**<br>Costs of generating voluntary<br>income<br>5<br>**7,245**<br>**0**<br>**7,245**<br>**Charitable activities**<br>Costs in furtherance of<br>charitable objects<br>6<br>**151,962**<br>**81,451**<br>**233,413**<br>Governance costs<br>7<br>**7,265**<br>**0**<br>**7,265**<br>**Other resources expended**<br>Loan interest payable<br>8<br>**10,014**<br>**0**<br>**10,014**<br>**Total resources expended**<br>8<br>**176,486**<br>**81,451**<br>**257,937**<br>**Net income/ (expenditure) for**<br>**the year**<br>9<br>**34,552**<br>**(21,461)**<br>**13,091**<br>**Net gain on investments**<br>**0**<br>**0**<br>**Transfers between funds**<br>**2,892**<br>**(2,892)**<br>**0**<br>**Other recognised gains and**<br>**losses**<br>**0**<br>**0**<br>**0**<br>Net movement in funds relating<br>to the year<br>**37,444**<br>**(24,353)**<br>**13,091**<br>Balances brought forward<br>**338,289**<br>**76,035**<br>**414,324**<br>Balances carried forward<br>**375,733**<br>**51,682**<br>**427,415**|**Total Funds**<br>**2020**<br>**£**<br>189,353<br>46,379<br>6,092|
|---|---|
||52,471<br>241,824|
||5,457<br>188,714<br>5,437<br>9,724|
||209,332|
||32,492<br>0<br>0<br>0|
||32,492<br>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**<br>**Unrestricted**<br>**Restricted**<br>**2021**<br>**Note**<br>**£**<br>**£**<br>**£**<br>**Fixed assets**<br>Intangible assets<br>10<br>**3,968**<br>**16,172**<br>**20,140**<br>Tangible assets<br>11<br>**362,690**<br>**1,324**<br>**364,014**<br>Investments<br>12<br>**336,000**<br>**0**<br>**336,000**<br>**702,658**<br>**17,496**<br>**720,154**<br>**Current assets**<br>Stock<br>**0**<br>**0**<br>**0**<br>Debtors<br>13<br>**7,637**<br>**9,832**<br>**17,469**<br>Cash at bank<br>**0**<br>**24,354**<br>**24,354**<br>**7,637**<br>**34,186**<br>**41,823**<br>**Creditors: Amounts falling due**<br>**within one year**<br>14<br>**(85,986)**<br>**0**<br>**(85,986)**<br>**Net current liabilities**<br>**(78,349)**<br>**34,186**<br>**(44,163)**<br>**Total assets less current**<br>**liabilities**<br>**624,309**<br>**51,682**<br>**675,991**<br>**Creditors: Amounts falling due**<br>**after more than one year**<br>15<br>**(248,576)**<br>**0 (248,576)**<br>**Net assets**<br>**375,733**<br>**51,682**<br>**427,415**<br>**Funds**<br>Restricted<br>16<br>**0**<br>**51,682**<br>**51,682**<br>Unrestricted<br>**65,513**<br>**0**<br>**65,513**<br>Revaluation reserve<br>**310,220**<br>**0**<br>**310,220**<br>**Total funds**<br>**375,733**<br>**51,682**<br>**427,415**|**Total**<br>**2020**<br>**£**<br>22,768<br>362,402<br>336,000|
|---|---|
||721,170|
||0<br>23,784<br>39,837|
||63,621<br>(117,219)|
||(53,598)|
||667,572<br>(253,248)|
||414,324|
||76,035<br>28,069<br>310,220|
||414,324|



- 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. 

13 



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<br>Gift aid<br>Grants<br>Government Kickstarter Scheme grants<br>Government Covid support and job retention grants<br>3 **Income from non-charitable trading**<br>Rents from Cross Rhythms' premises|**Total Funds**<br>**2021**<br>**£**<br>**103,441**<br>**13,959**<br>**40,500**<br>**56,406**<br>**123**<br>**214,429**<br>**Total Funds**<br>**2021**<br>**£**<br>**48,180**|**Total Funds**<br>**2020**<br>**£**<br>102,282<br>14,016<br>38,250<br>0<br>34,805|
|---|---|---|
|||189,353|
|||**Total Funds**<br>**2020**<br>**£**<br>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<br>Other charitable trading|**Total Funds**<br>**Total Funds**<br>**2021**<br>**2020**<br>**£**<br>**£**<br>**5,341**<br>4,625<br>**3,078**<br>1,467<br>**8,419**<br>6,092|
|---|---|



|5 **Activities for generating funds**<br>**Costs of generating voluntary income**<br>Marketing and fundraising costs<br>Staff costs|**Total Funds**<br>**Total Funds**<br>**2021**<br>**2020**<br>**£**<br>**£**<br>**1,852**<br>5<br>**5,393**<br>5,452<br>**7,245**<br>5,457|
|---|---|



|6 **Costs in furtherance of charitable objectives**<br>**Provision of charitable services**<br>Radio<br>Other charitable trading<br>XRhythms<br>Media training<br>Cross Rhythms Worldwide<br>Other charitable support<br>**Analysis of provision of charitable services**<br>**Staff costs**<br>**Depreciation/**<br>**Amortisation**<br>**Other costs**<br>**£**<br>**£**<br>**£**<br>Radio<br>**55,586**<br>**18,885**<br>**20,012**<br>Other charitable trading<br>**0**<br>**0**<br>**(374)**<br>XRhythms<br>**67,965**<br>**493**<br>**7,519**<br>Media training<br>**1,328**<br>**0**<br>**0**<br>Cross Rhythms Worldwide<br>**3,648**<br>**0**<br>**7,931**<br>Other charitable support<br>**22,985**<br>**0**<br>**27,435**<br>**151,512**<br>**19,378**<br>**62,523**|6 **Costs in furtherance of charitable objectives**<br>**Provision of charitable services**<br>Radio<br>Other charitable trading<br>XRhythms<br>Media training<br>Cross Rhythms Worldwide<br>Other charitable support<br>**Analysis of provision of charitable services**<br>**Staff costs**<br>**Depreciation/**<br>**Amortisation**<br>**Other costs**<br>**£**<br>**£**<br>**£**<br>Radio<br>**55,586**<br>**18,885**<br>**20,012**<br>Other charitable trading<br>**0**<br>**0**<br>**(374)**<br>XRhythms<br>**67,965**<br>**493**<br>**7,519**<br>Media training<br>**1,328**<br>**0**<br>**0**<br>Cross Rhythms Worldwide<br>**3,648**<br>**0**<br>**7,931**<br>Other charitable support<br>**22,985**<br>**0**<br>**27,435**<br>**151,512**<br>**19,378**<br>**62,523**|**Total Funds**<br>**2021**<br>**£**<br>**94,483**<br>**(374)**<br>**75,977**<br>**1,328**<br>**11,579**<br>**50,420**<br>**233,413**<br>**Total Funds**<br> <br>**2021**<br><br>**£**<br><br>**94,483**<br><br>**(374)**<br><br>**75,977**<br><br>**1,328**<br><br>**11,579**<br><br>**50,420**<br><br>**233,413**|**Total Funds**<br>**2020**<br>**£**<br>55,076<br>(97)<br>45,506<br>1,738<br>14,130<br>72,361|
|---|---|---|---|
||||188,714|
||||**Total Funds**<br>**2020**<br>**£**<br>55,076<br>(97)<br>45,506<br>1,738<br>14,130<br>72,361|
||**151,512**<br>**19,378**<br>**62,523**||188,714|



18 



## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** 

## YEAR ENDED 31 DECEMBER 2021 

## NOTES TO THE ACCOUNTS 

## 7 **Governance** 

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



## 8 **Total resources expended** 

|**Total Funds**<br>**Staff costs**<br>**Depreciation**<br>**Other costs**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>Direct charitable expenditure<br>**151,512**<br>**19,378**<br>**62,523**<br>**233,413**<br>Activities for generating funds<br>**5,393**<br>**0**<br>**1,852**<br>**7,245**<br>Governance costs<br>**3,784**<br>**0**<br>**3,481**<br>**7,265**<br>Other resources expended<br>**0**<br>**0**<br>**10,014**<br>**10,014**<br>**160,689**<br>**19,378**<br>**77,870**<br>**257,937**<br>**The aggregate payroll costs were:**<br>**2021**<br>**£**<br>Wages and salaries<br>**154,579**<br>Social security costs<br>**6,110**<br>**160,689**|**Total Funds**<br>**2020**<br>**£**<br>188,714<br>5,457<br>5,437<br>9,724|
|---|---|
||209,332|
||**2020**<br>**£**<br>128,335<br>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<br>Number of administrative staff<br>Number of management staff<br>Other direct charitable staff<br>**Other costs:**<br>Legal and Professional<br>Other<br>9 **Net outgoing resources**<br>Net outgoing resources after charging/(crediting)<br>Depreciation and amortisation<br>(Profit)/loss on disposal of fixed assets<br>Independent Examiner's remuneration - the independent<br>examination of the charity's accounts|**2021**<br>**No**<br>**0**<br>**2**<br>**1**<br>**7**<br>**10**<br>**2021**<br>**£**<br>**3,481**<br>**74,389**<br>**77,870**<br>**2021**<br>**£**<br>**19,378**<br>**(2,377)**<br>**1,181**|**2020**<br>**No**<br>1<br>2<br>1<br>4|
|---|---|---|
|||8|
|||**2020**<br>**£**<br>1,857<br>66,823|
|||68,680|
|||**2020**<br>**£**<br>6,587<br>0<br>1,205|



20 



## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** 

## YEAR ENDED 31 DECEMBER 2021 

## NOTES TO THE ACCOUNTS 

|10 **Intangible Fixed Assets**<br>**Cost or valuation**<br>At 1 January 2021<br>Additions<br>Disposals<br>**At 31 December 2021**<br>**Amortisation**<br>At 1 January 2021<br>Charge for the year<br>**At 31 December 2021**<br>Net book value<br>**At 31 December 2021**<br>At 31 December 2020|**Website**<br>**£**<br>26,272<br>0<br>0|
|---|---|
||**26,272**|
||3,504<br>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**<br>**Cost or valuation**<br>At 1 January 2021<br>Additions<br>Disposals<br>Transfer to investment property<br>Revaluation<br>**At 31 December 2021**<br>**Depreciation**<br>At 1 January 2021<br>Charge for the year<br>Eliminated on disposal<br>**At 31 December 2021**<br>Net book value<br>**At 31 December 2021**<br>At 31 December 2020|**Freehold**<br>**Property**<br>**Improvements**<br>**to Property**<br>**Equipment**<br>**£**<br>**£**<br>**£**<br>324,000<br>3,995<br>131,732<br>0<br>0<br>18,362<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>**324,000**<br>**3,995**<br>**150,094**<br>0<br>540<br>96,785<br>0<br>270<br>16,480<br>0<br>0<br>0<br>**0**<br>**810**<br>**113,265**<br>**324,000**<br>**3,185**<br>**36,829**<br>324,000<br>3,455<br>34,947|**Total**<br>**£**<br>459,727<br>18,362<br>0<br>0<br>0|
|---|---|---|
|||**478,089**|
|||97,325<br>16,750<br>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**<br>**Cost or valuation**<br>At 1 January 2021<br>Transfer from Tangible fixed assets<br>Revaluation<br>**At 31 December 2021**|**£**<br>336,000<br>0<br>0|
|---|---|
||**336,000**|



22 



## **CROSS RHYTHMS COMPANY LIMITED BY GUARANTEE** 

## YEAR ENDED 31 DECEMBER 2021 

## NOTES TO THE ACCOUNTS 

## 13 **Debtors** 

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



## 14 **Creditors: Amounts falling due within one year** 

|**2021**<br>**£**<br>Bank loans and overdrafts<br>**9,227**<br>Trade creditors<br>**7,394**<br>Taxation and social security<br>**6,511**<br>Other creditors<br>**24,715**<br>Gross wages and employers national insurance accrual<br>**13,348**<br>Accruals and deferred income<br>**24,791**<br>**85,986**<br> **Creditors: Amounts falling due after more than one year**<br>**2021**<br>**£**<br>Bank and other loans<br>**248,576**<br>**248,576**<br>Of the above loan amounts the following amount is due in instalments after 5 years:<br>**2021**<br>**£**<br>Bank and other loans<br>**208,268**|**2020**<br>**£**<br>6,061<br>7,945<br>10,073<br>35,215<br>25,833<br>32,092|
|---|---|
||117,219|
||**2020**<br>**£**<br>253,248|
||253,248|
||**2020**<br>**£**<br>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<br>fund<br>Churches Media<br>Trust<br>UK Youth<br>Broadcasting<br>Infrastructure<br>Other Restricted<br>gifts funds|**Brought**<br>**Forward**<br>**Incoming**<br>**resources**<br>**Outgoing**<br>**resources**<br>**Transfers**<br>**Balance**<br>**carried**<br>**forward**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>8,342<br>0<br>0<br>0<br>8,342<br>7,657<br>0<br>0<br>0<br>7,657<br>37,904<br>45,739<br>(56,326)<br>(2,712)<br>24,605<br>20,000<br>0<br>(12,314)<br>0<br>7,686<br>2,132<br>14,251<br>(12,811)<br>(180)<br>3,392<br>76,035<br>59,990<br>(81,451)<br>(2,892)<br>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