ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2020
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE) COMPANY REGISTRATION No: 03603373 CHARITY REGISTRATION No: 1071600
Castle View Accounting Ltd Old Printing House Square Unit 16, Tarrant Street
Arundel West Sussex BN18 9JF
1
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
| Page 3 | Legal & Administrative Information |
|---|---|
| Pages 4 to 6 | Report of the Directors' |
| Page 7 | Statement of Financial Activities |
| Page 8 | Balance Sheet |
| Pages 9 to 19 | Notes to the Financial Statements |
| Page 20 | Independent Examiner's Report |
2
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY NUMBER
CHARITY NUMBER 1071600 COMPANY REGISTRATION NUMBER 03603373 DATE OF INCORPORATION 24th July 1998 START OF FINANCIAL YEAR 1st September 2019 END OF FINANCIAL YEAR 31st August 2020 DIRECTORS AT 31ST AUGUST 2020 M.D Greig M.A Harland S.P Thomas M.S Nash D.J Rolles (Appointed 19th November 2020) A. Moyo (Appointed 19th November 2020) N.S Strike (Appointed 19th November 2020) M.K Pearson (Resigned 13th September 2020)
GOVERNING DOCUMENT
Memorandum and Articles of Association Incorporated 24th July 1998.
OBJECTS
To advance the Christian Faith in accordance with the statement of beliefs appearing in the schedule hereto in such parts of the World as the Directors of the Charity may from time to time think fit.
REGISTERED ADDRESS 33 Lower Hall Lane Walsall West Midlands WS1 1RR
PRIMARY BANKERS
Barclays Bank Plc 20-22 Park Street Walsall West Midlands WS1 1NG
INDEPENDENT EXAMINERS
Castle View Accounting Ltd Old Printing House Square Unit 16, Tarrant Street Arundel West Sussex BN18 9JF
3
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
REPORT OF THE DIRECTORS'
FOR THE YEAR ENDED 31ST AUGUST 2020
Principal Activity
The principal activity of the company is the advancement of the Christian faith through the provision of training and support for Christian Ministries in a group of churches in the United Kingdom and internationally.
Charitable Status
The company has charitable status and is registered with the Charity Commission under registration number 1071600, and a company registered in England and Wales under registration number 3603373.
Governing Instrument
The company’s activities are regulated by the Memorandum and Articles of Association. The objects of the company are:
-
i) To advance the Christian faith.
-
ii) To relieve those who are in conditions of need, hardship or who are aged or sick.
-
iii) To advance education in accordance with Christian principles.
-
iv) To promote other charitable objects as decided by the directors from time to time.
Directors
-
M D Greig
-
M A Harland
-
M K Pearson (resigned 13/09/20)
-
S P Thomas
-
M S Nash
-
D J Rolles (appointed 19/11/20)
-
A Moyo (appointed 19/11/20)
-
N S Strike (appointed 19/11/20)
Apart from where noted, the above named have served during the year. The Directors of the company are also the trustees of the charitable activities. The Directors are kept informed of the activities and performance of the charitable company and provided with regular management information. The composition of the Board is kept under review and additional appointments will be made should the need arise. All Directors are made aware of their responsibilities.
Persons of Significant Control
In line with recent changes to legislation we have created a register of persons of significant control and submitted their details as part of our Companies House return. These persons (who hold the right to appoint or remove the majority of the board of directors of the company) are therefore identical to our Members.
Members
The Members of the charity are the leaders of the Spheres on whose behalf the national framework is run. They are:
-
A Barclay-Watt
-
S Thomas
-
M Dunkley
-
S Jones
-
P Norris
-
D Richards
-
M Mumford (resigned 19/10/20)
-
A Moyo (joined 19/11/20)
4
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
REPORT OF THE DIRECTORS' (Continued) FOR THE YEAR ENDED 31ST AUGUST 2020
Review of Activities
We aim to be a ‘family of families’ – churches together on mission, equipping the church, extending God’s kingdom, and blessing the nations. This is increasingly worked out practically by providing a point of connection, encouragement, accountability and networking for the key leaders in our five UK Spheres and the international regions
We have transferred much of the activity that in previous years the national body has done to these spheres and have focussed our attention on how to maximise their effectiveness.
In this year we intended to run a national camp, but due to the impact of Covid 19 were forced to cancel and refund delegates’ fees. We are grateful to the number of delegates who declined their refund and helped us to mitigate our loss.
We have a particular focus in investing in Training.
· We have brought King’s School of Theology to the point where it has been operating as an independent charity with its own trustees and reduced financial support.
· We have established a Training Grant process to distribute funding to training projects sponsored by one of the Spheres.
We also continue to handle a small number of regular donors to overseas development projects we initiated but which have be subsequently transferred to three UK charities who carry on that work (Henley Baptist Church, Basingstoke Community Churches and New Hope Uganda UK).
We continue to receive income from our fixed asset investment and in line with our focus on sphere maximisation have launched a new grant making scheme that aims to give away £70,000 to sphere-sponsored training initiatives over the next three years.
These changes are requiring us to ask for significantly less financial support from our member churches and to reduce accordingly our expenditure including on staffing.
Financial Review
During the year the charity has received donations and other income amounting to £214,601 and has incurred expenditure of £251,942. The charity is largely dependent on voluntary support from many individuals and the family of churches, and this is gratefully acknowledged by the Directors.
Reserves
The Directors seek to hold adequate reserves to meet three months operating costs including emergency property costs . At year end we had cash at hand of £28,167 to cover a 20/21 expenditure budget of £85,876.
Risk Management
The Directors have reviewed the major risks to which the charity is exposed and have taken steps to mitigate the potential impact of these.
Covid 19
We are in a fortunate financial position to weather the economic storm caused by the Covid 19 pandemic and, since we are clear that we can continue to be a going concern, are focussed on countercyclical investment back into churches and the communities they serve.
Safeguarding
The Directors have considered the implications on the charity of the revised and much widened Charity Commission guidance in October 2018 on ‘safeguarding’ and have taken steps they have deemed necessary.
Public Benefit
The Directors have considered the guidance provided by the Charity Commission regarding public benefit and the work of the charity (in particular the specific guidance on charities for the advancement of religion).
5
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
REPORT OF THE DIRECTORS' (Continued) FOR THE YEAR ENDED 31ST AUGUST 2020
Statement of Directors' Responsibilities:
The Charities Act and the Companies Act require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :-
-
a) select suitable accounting policies and then apply them consistently;
-
b) make judgements and estimates that are reasonable and prudent;
-
c) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
-
d) state whether applicable accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and explained in the financial statements.
The Directors are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for the contents of the Directors' report, and the responsibility of the independent examiner in relation to the Directors' report is limited to examining the report and ensuring that on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
I approve the attached statement of financial activities and balance sheet for the year ended 31st August 2020 and confirm that I have made available all information necessary for its preparation.
Approved by the Directors on the ……………………………………………………………………………………………………………
Signed on their behalf by Director …………………………………………………………………………………………………………
Printed Name:
6
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2020
(Incorporating Income and Expenditure Account)
| Notes INCOMING RESOURCES Incoming Resources from Generated Funds Donations, Grants & Legacies 3a Investment Income 3b Charitable Activities 3c Activities for Generating Funds 3d Other Incoming Resources 3e TOTAL INCOMING RESOURCES RESOURCES EXPENDED Cost of Generating Funds Charitable Activities 4a Cost of Generating Funds 4b Governance Costs 4c TOTAL RESOURCES EXPENDED NET INCOMING/ (OUTGOING) RESOURCES Balance Brought Forward Net Gains/(Losses) on Investments 16 Transfer Between Funds 5 & 6 TOTAL FUNDS CARRIED FORWARD |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ 4,758 34,202 21,299 60,259 55,171 62 - - 62 21 - 115,458 - 115,458 127,420 - 36,000 - 36,000 34,000 2,822 - - 2,822 1,291 7,642 185,660 21,299 214,601 217,903 8,225 200,851 21,070 230,146 208,803 - 19,902 - 19,902 4,620 1,425 694 - 2,119 5,699 9,650 221,447 21,070 252,167 219,122 (2,008) (35,787) 229 (37,566) (1,219) 761,201 37,875 12,881 811,957 794,176 - - - - 19,000 9,820 (15,259) 5,439 - - 769,013 (13,171) 18,549 774,391 811,957 |
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 9 to 19 form part of these financial statements.
7
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT 31ST AUGUST 2020
| Note Fixed Assets Tangible Assets 2 Social Investment 8 Total Fixed Assets Current Assets Debtors & Prepayments 10 Cash at Bank and in Hand 9 Total Current Assets Creditors:amounts falling due within one year 11 NET CURRENT ASSETS Creditors:amounts falling due in more than 12 one year TOTAL ASSETSless current liabilities NET ASSETS Funds of the Charity General Funds Designated Funds 5 Restricted Funds 6 Total Funds |
Unrestricted Restricted Total Total Funds Funds 31-Aug-20 31-Aug-19 £ £ £ £ 719,000 - 719,000 719,000 30,000 - 30,000 40,000 749,000 - 749,000 759,000 - - - 4,520 9,618 18,549 28,167 64,583 9,618 18,549 28,167 69,103 2,776 - 2,776 16,146 6,842 18,549 25,391 52,957 - - - - 755,842 18,549 774,391 811,957 755,842 18,549 774,391 811,957 769,013 - 769,013 761,201 (13,171) - (13,171) 37,875 - 18,549 18,549 12,881 755,842 18,549 774,391 811,957 |
|---|---|
Directors' Responsibilities:
The Directors are satisfied that for the year ended on 31st August 2020 the charitable company was entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that no member or members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011, the accounts have been examined by an Independent Examiner whose report appears on page 20.
The Directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
The Directors acknowledge their responsibility for ensuring that the company keeps proper accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and if its profit and loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
Approved by the Directors on the ……………………………………………………………………………………………………………
Signed on their behalf by Director …………………………………………………………………………………………………………
Printed Name:
8
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2020
1. ACCOUNTING POLICIES
Basis of Preparation & Assessment of Going Concern
Basis of Preparation
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.
The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
Assessment of Going Concern
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
Incoming Resources
Recognition of Incoming Resources
These are included in the Statement of Financial Activities (SOFA) when:
▪ the charity becomes entitled to the resources;
▪ the Directors are virtually certain they will receive the resources; and
▪ the monetary value can be measured with sufficient reliability
Incoming Resources with Related Expenditure
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA.
Grants and Donations
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Tax Reclaims on Donations and Gifts
Incoming resources from tax reclaims are included in the SOFA in the same financial period as the gift to which they relate.
Contractual Income and Performance Related Grants
This is only included in the SOFA once the related goods or services has been delivered.
Gifts in Kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.
Donated Services and Facilities
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
Volunteer Help
The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report.
Investment Income
This is included in the accounts when receivable.
Investment Gains and Losses
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
9
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
1. ACCOUNTING POLICIES (Continued)
Expenditure and Liabilities
Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Governance Costs
Include costs of the preparation and examination of statutory accounts, the costs of the Directors' meetings and cost of any legal advice to Directors on governance or constitutional matters.
Changes in Accounting Policies and Previous Accounts
There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts.
Grants Payable without Performance Conditions
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
Taxation
The charity is exempt from tax on its charitable activities.
Legal Status of the Charity
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
Pension Scheme Arrangement
The Charity operates a defined contribution pension scheme for its employees. Obligations for contribution to these schemes are recognised as an expense wen the liability arises. The assets of these schemes are held separately from those of the Charity in independently administered funds.
Investments
Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at Directors' best estimate of market value.
Fixed Assets Investments
Fixed asset investments are held to generate income and/or for their investment potential. Fixed asset investments are investments that are held specifically for sale or are investments that the charity expects to sell by the next balance sheet date.
Investments, other than social investments (see below), are valued as follows:
i ) Investment property and listed investments are valued at their market value (fair value) at the balance sheet date.
Social Investments
Social investments are investments where the primary motive is to further the charity's objects, not to generate an investment return.
Concessionary Loans
These are initially recognised as the amount paid and thereafter the carrying value at every balance sheet date is adjusted for repayments, interest charges and provisions for impairment if the amount owed may not be fully recoverable.
Impairment Losses
Impairment losses and losses arising on the disposal of social investments are included in the Statement of Financial Activities
10
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
Critical accounting estimates and areas of judgement
ln preparing financial statements certain judgements, estimates and assumptions have to be made that affect the amounts recognised
i ) The valuation of fixed asset investments and the recoverability of social investments. These estimate are reassessed annually and the valuations are adjusted to reflect current expectations of the fair value of each.
ii ) The constructive obligation for grants payable is based on an assessment of the likely duration of the supported activity. Again this estimate is re-assessed annually and the obligation is adjusted to reflect current expectations.
Tangible Fixed Assets
These are capitalised if they can be used for more than one year, and cost at least £5,000. They are valued at cost or, if gifted, at the value to the charity on receipt.
Depreciation Expense
Depreciation is calculated at a rate to write off the cost of tangible fixed assets over their estimated useful lives. The rates applied per annum are as follows:
Equipment Cost 25% - Reducing Balance Basis Fixtures and Fittings 25% - Reducing Balance Basis
Amortisation
No amortisation is charged to freehold Land and Buildings as the Land and Buildings is maintained to such a standard that the estimated residual value is not less than cost.
Land & Buildings
Land and Buildings have been valued and included within the accounts at cost value as at the 31st August 2016 in accordance with FRS 102 - Previous revaluation as deemed cost.
Valuation of Land and Building
During the financial year ended 31st August 2016 the Director of Salt and Light Ministries sough guidance and advice regarding the current market value of the Land and Building held by the Charity at 88 Pinnocks Way, Botley, OX2 9DQ and 161 Southern By-Pass, North Hinksey, OX2 0LN. The Land and Buildings have been included in the accounts at market value as at the 31st August 2016 and are included in the accounts in accordance with FRS102 Previous Valuation Deemed Cost.
2. TANGIBLE FIXED ASSETS
| Cost 01-Sep-19 Additions Cost at 31-Aug-20 Depreciation 01-Sep-19 Charge Depreciation at 31-Aug-20 Net Book Value 31-Aug-20 Net Book Value 31-Aug-19 |
Pinnocks Southern Total Way By-Pass 2019/20 £ £ £ 365,000 354,000 719,000 - - - 365,000 354,000 719,000 - - - - - - - - - 365,000 354,000 719,000 365,000 354,000 719,000 Land & Buildings |
|---|---|
The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st August 2020 : None
31st August 2019 : None
11
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
3. INCOMING RESOURCES
| a) Donations, Grants & Legacies Gifts & Donations Gift Aid Tax Recovered b) Investment Income Interest c) Charitable Activities Conference & Events King's School of Theology d) Activities for Generating Funds Rental Income Fundraising Income e) Other Incoming Resources Sundry Income |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ - 34,103 21,299 55,402 54,945 4,758 99 - 4,857 226 4,758 34,202 21,299 60,259 55,171 62 - - 62 21 62 - - 62 21 - 85,090 - 85,090 63,959 - 30,368 - 30,368 63,461 - 115,458 - 115,458 127,420 - 36,000 - 36,000 34,000 - - - - - - 36,000 - 36,000 34,000 2,822 - - 2,822 1,291 2,822 - - 2,822 1,291 |
|---|---|
12
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
4. RESOURCES EXPENDED
| a) Charitable Activities Advertising & Publicity Bank Charges Conference & Events Gifts & Donations Insurance Costs International Church Relief Fund King's School of Theology New Hope Uganda Office Costs Pearls Expenditure Rooted Youth Camp Staff Costs Training Costs Travel & Subsistence UK Meeting Costs Weekend Costs Youth Development Fund |
Unrestricted Designated Restricted TOTAL TOTAL Funds Funds Funds 2019/20 2018/19 £ £ £ £ £ - 25 - 25 2,685 - 1,575 - 1,575 2,100 5,499 74,688 - 80,187 73,781 538 147 - 685 351 - 1,613 - 1,613 1,487 - - 1,230 1,230 2,630 1,413 55,130 - 56,543 27,477 - - 19,700 19,700 332 775 547 - 1,322 1,285 - - 140 140 550 - - - - 16,238 - 42,968 - 42,968 36,657 - 15,000 - 15,000 37,967 - 1,088 - 1,088 4,876 - 3,629 - 3,629 202 - 4,441 - 4,441 - - - - - 184 8,225 200,851 21,070 230,146 208,803 |
|---|---|
| b) Cost of Generating Funds Property Costs b) Governance Costs Independent Examiners Fee Legal & Professional Fees |
19,902 - 19,902 4,620 - 19,902 - 19,902 4,620 1,425 - - 1,425 3,520 - 694 - 694 2,179 1,425 694 - 2,119 5,699 |
|---|---|
13
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
5. DESIGNATED FUNDS
CURRENT FINANCIAL YEAR
| Transform Summer Camp King's School of Theology KST Bursary International Operations Youth Development Fund UK Operations Eph 4 Weekend UK Team Meetings Housing Pot Training Grants |
Balance Balance 01-Sep-19 Income Expenditure Transfers 31-Aug-20 £ £ £ £ £ - 78,487 88,807 (4,520) (14,840) 7,012 30,368 56,536 18,621 (535) 18,621 - - (18,621) - 6,803 3,879 11,657 3,000 2,025 5,439 - - (5,439) - - 30,223 21,261 (8,300) 662 - 4,325 4,441 - (116) - 2,378 3,843 - (1,465) - 36,000 19,902 (15,000) 1,098 - - 15,000 15,000 - 37,875 185,660 221,447 (15,259) (13,171) |
|---|---|
PREVIOUS FINANCIAL YEAR
| Rooted UK Leaders' Conference International Leaders Transform Summer Camp Impact King's School of Theology KST Bursary International Operations Youth Development Fund |
Balance Balance 01-Sep-18 Income Expenditure Transfers 31-Aug-19 £ £ £ £ £ 15,344 6,142 16,238 (5,248) - - 7,779 8,416 637 - - 21,371 19,368 (2,003) - 1,825 - - (1,825) - - 27,868 26,039 (1,829) - 17,138 49,562 76,481 16,793 7,012 8,776 13,920 - (4,075) 18,621 10,691 5,510 1,418 (7,980) 6,803 - - 184 5,623 5,439 53,774 132,152 148,144 93 37,875 |
|---|---|
Designated Funds are mainly training related courses or events where any final surplus or deficit are transferred to general funds.
Designated Funds are mainly training related courses or events where any final surplus or deficit is transferred to the General Fund.
Transfers include both these final balance transfers and a management charged levied on the event to cover central costs.
International Operations Fund includes costs incurred to support the international branch of the Church Family.
The Designated Funds held are wholly represented by the Charity's Cash Reserves. The Designated Funds in deficit are classed as continued operations and funds will be replenished in the coming financial period.
14
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
6. RESTRICTED FUNDS
CURRENT FINANCIAL YEAR
| Balance | Balance | ||||
|---|---|---|---|---|---|
| 01-Sep-19 | Income | Expenditure | Transfers | 31-Aug-20 | |
| £ | £ | £ | £ | £ | |
| Ministry Support - UK Development Fund | 5,218 | - | - | - | 5,218 |
| Ministry Support - International Development Fund | 1,941 | - | - | - | 1,941 |
| Church Relief Fund | 5,722 | 375 | - | - | 6,097 |
| New Hope Uganda | - | 19,774 | 19,700 | - | 74 |
| Pearls of Africa | - | 120 | 140 | - | (20) |
| International Church Relief Fund | - | 1,030 | 1,230 | - | (200) |
| Youth Development Fund | - | - | - | 5,439 | 5,439 |
| 12,881 | 21,299 | 21,070 | 5,439 | 18,549 |
PREVIOUS FINANCIAL YEAR
| Ministry Support - UK Development Fund Ministry Support - International Development Fund Church Relief Fund New Hope Uganda Pearls of Africa International Church Relief Fund |
Balance Balance 01-Sep-18 Income Expenditure Transfers 31-Aug-19 £ £ £ £ £ 5,441 - 7,097 6,874 5,218 1,941 - - - 1,941 5,657 970 1,000 95 5,722 - 332 332 - - - 615 550 (65) - - 1,660 1,630 (30) - |
|---|---|
| 13,039 3,577 10,609 6,874 12,881 |
Ministry Support Funds are monies given for a) Support for Barney Coombs, the founder of Salt & Light and b) Development Funds for both the UK and International branches of the Church Family.
Church Relief International and Church Relief International Education Funds include monies given specifically given to support overseas aid and education projects, the biggest of which is the Children's Centre - New Hope Uganda. The grants giving is made to institutions and individuals who undertake activities that further the Charity's objects. These funds are gradually being transferred to other organisations who will continues to administer the funds to intended recipients.
The Youth Development Fund has been set to provide for Charitable work with young people in furthering the Charity's objects.
The Restricted Funds held are wholly represented by the Charity's Cash Reserves. The Restricted Fund in deficit are classed as continued operations and funds will be replenished in the coming financial period.
15
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
7. GRANTS PAYABLE
| Grants for UK and Overseas Missions Grants for the Relief of Poverty Grants for Education, including Ministry Training The Charity's principle grants to institutions comprised: |
Grants to Grants to TOTAL TOTAL Institutions Individuals 2019/20 2018/19 £ £ £ £ 685 - 685 15,178 21,030 - 21,030 1,332 15,000 - 15,000 - 36,715 - 36,715 16,510 |
|---|---|
| New Hope Uganda Basingstoke Community Churches Kings School of Theology Salt & Lights Spheres Henley Baptist Church Kiwoko Hospital Grants to institutions below £1,000 each |
TOTAL TOTAL 2019/20 2018/19 £ £ 19,398 - 5,767 948 10,000 - - 12,249 1,230 1,630 - 1,000 320 683 36,715 16,510 |
|---|---|
8. SOCIAL INVESTMENT
CURRENT FINANCIAL YEAR
| Concessionary Loans PREVIOUS FINANCIAL YEAR Concessionary Loans |
Balance Loans Loans Provision for Balance 01-Sep-19 Made Repaid Impairment 31-Aug-20 £ £ £ £ £ 40,000 - 10,000 - 30,000 40,000 - 10,000 - 30,000 Balance Loans Loans Provision for Balance 01-Sep-18 Made Repaid Impairment 31-Aug-19 £ £ £ £ £ 20,000 20,000 - - 40,000 20,000 20,000 - - 40,000 |
|---|---|
Social investments comprise a concessionary loans made to a Charity to help it expatriate a Church Leader into a new UK Church.
16
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
9. CASH AT BANK AND IN HAND
| Cash at Bank and in Hand 10. DEBTORS AND PREPAYMENTS Sundry Debtors |
Unrestricted Restricted Total Total Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ 9,618 18,549 28,167 64,583 9,618 18,549 28,167 64,583 Unrestricted Restricted Total Total Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ - - - 4,520 - - - 4,520 |
|---|---|
11. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Independent Examiners Fees Sundry Creditors Grant Obligations |
Unrestricted Restricted Total Total Fund Fund 31-Aug-20 31-Aug-19 £ £ £ £ 1,425 - 1,425 3,120 1,351 - 1,351 7,726 - - - 5,300 2,776 - 2,776 16,146 |
|---|---|
12. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
The Charity held no long term liabilities during this or the previous financial year.
13. NET ASSETS BETWEEN FUNDS
| Fixed Asset Investments Net Current Assets Long Term Liabilities |
Unrestricted Restricted Total Total Funds Funds 31-Aug-20 31-Aug-19 £ £ £ £ 749,000 - 749,000 759,000 6,842 18,549 25,391 52,957 - - - - 755,842 18,549 774,391 811,957 |
|---|---|
17
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
14. RECONCILIATION OF MOVEMENT ON CAPITAL AND RESERVES
The Company is Limited by Guarantee (03603373) and is a Charity registered with the Charity Commission (1071600) and does not have a Share capital and has no income subject to Corporation Tax.
| Note Profit / Deficit for the financial year Other Recognised Gains Balance Brought Forward Net Gains/(Losses) on Investments 16 Closing Funds at 31st August 2020 15. STAFF COSTS AND NUMBERS Gross Wages, Salaries & Fees Employer's National Insurance Costs Pension Contributions Employees who were engaged in each of the following activities: Charitable Activities |
TOTAL 2019/20 £ (37,566) - (37,566) 811,957 - 774,391 TOTAL 2019/20 £ 42,663 87 218 42,968 TOTAL 2019/20 3 |
TOTAL 2018/19 £ (1,219) - (1,219) 794,176 19,000 811,957 TOTAL 2018/19 £ 34,437 705 1,515 36,657 TOTAL 2018/19 3 |
|---|---|---|
The Charity operates PAYE scheme to pay all employed members of staff and no members of staff received emoluments of over £60,000 (2018/19:None).
The charity's key management comprise the trustees and the key staff named in the administrative details of the Trustees Annual Report. During the year no key management received employment benefits directly from Salt and Light Ministries, but other organisations were reimbursed £40,310 for work carried out by key management (2018/19: £16,812).
18
SALT AND LIGHT MINISTRIES
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST AUGUST 2020
16. FIXED ASSET INVESTMENTS
The Charity owns two houses that had previously been used for bible college student accommodation. The houses are currently rented to another Charity and ongoing usage is kept under review. As at the 31st August 2019 the Directors consider the values of the properties to be £719,000. The last valuation from a local estate agent was carried out during the year ended 31st August 2016.
| Cost or Fair Value Brought Forward Change in Value of Investments Cost or Fair Value Carried Forward |
Pinnocks Southern Total Total Way By-Pass 31-Aug-20 31-Aug-19 £ £ £ £ 365,000 354,000 719,000 700,000 - - - 19,000 365,000 354,000 719,000 719,000 Land & Buildings |
|---|---|
17. DIRECTORS AND OTHER RELATED PARTIES
No payments were made to Directors or any persons connected with them during this financial period. No material transaction took place between the organisation and a Director or any person connected with them.
18. RISK ASSESSMENT
The Directors actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Directors have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
19. RESERVES POLICY
The Directors have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily.
20. PUBLIC BENEFIT
The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
19
INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS
Report to the trustees/ members of Salt and Light Ministries on the accounts for the year ended 31st August 2020 set out on pages 7 to 19.
Respective responsibilities of trustees and examiner
The Charity's trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statements. The trustees are satisfied that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the governing document or constitution of the Charity for the conducting of an audit. As a consequence, the trustees have elected that the financial statements be subject to independent examination.
Having satisfied myself that the charity is not subject to audit, and is eligible for independent examination, it is my responsibility to:-
a) examine the accounts under section 145 of the Act;
b) to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act; and;
c) to state whether particular matters have come to my attention.
Basis of independent examiner's statement
I conducted my examination in accordance with the General Directions given by the Charity Commissioners for England & Wales in relation to the conducting of an independent examination, referred to above. An independent examination includes a review of the accounting records kept by the Charity and of the accounting systems employed by the Charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of the Charities legislation and that the financial statements comply with the SORP, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the trustees in the course of the examination is not subjected to audit tests or enquiries, and consequently I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.
I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtain written assurances from the trustees of all material matters.
Independent examiner's statement
In the course of my examination, no matter has come to my attention:
-
which gives me reasonable cause to believe that in, any material respect, the trustees requirements:
-
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
· to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of recommended Practice: Accounting and Reporting by Charities.
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Castle View Accounting Ltd Old Printing House Square Unit 16, Tarrant Street Arundel West Sussex BN18 9JF
Date:
20