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2021-12-31-accounts

New Wlne Trust Tru•t••s Annual R•port and Accourrt• for s•ar •nd•d 31 D•c•mb•r 2021. Newwine

NEW WINE TRUST- TRUSTEES. ANNUALREPORT AND ACCOUNTS 2021

CONTENTS

Our Vision
Our Vision 02
Trustees’ report
1.Reference andadministration 03
2.Registeredofficeand professional advisors 04
3.Structure, governance andmanagement 05
4.Objectives and activities 09
5.Achievements andperformance 11
6.Financial review 15
Statement ofTrustees’ responsibilities 18
IndependentAuditor’s report 19
Accounts 22
Consolidated statement offinancialactivities 23
Consolidated and charity balancesheets 24
Consolidated and charity statement ofcashflows 25
Notes to theaccounts 26

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

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Our Vision is to see local churches changing nations

The vision and reason for New Wine has always been to equip the local Church to release confident, Spirit-filled disciples of Jesus. We want to see:

We are committed to making this vision a reality through:

New Wine does not insist on or promote one way of doing things nor advise everyone to use the same

materials. Instead, we acknowledge our similarities and teach principles, allowing others to decide the

most appropriate way to apply them in their areas of mission.

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TRUSTEES’ REPORT

The trustees, who are also directors of the charity for the purposes of company law, present their annual report and the audited consolidated financial statements for the year from 1 January 2021 to

31 December 2021.

The financial statements comply with the Companies Act 2006, the Charities Act 2011, the Charity’s Memorandum and Articles and the Statement of Recommended Practice applicable to charities preparing

their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) effective

from 1 January 2019. The group results combine the results of the charitable company with the results of New Wine Resources Limited, a wholly owned subsidiary, which runs the trading activities of the trust. The

subsidiary is not a registered charity.

REFERENCE AND ADMINISTRATION

TRUSTEES

COMPANY SECRETARY

Rev Preb John Coles (Chair)

Andrew Scott

Mr Robert Camp

Rt Revd Dr Jill Duff

Mr Patrick Dixon (Appointed 23 June 2021)

Mrs Elizabeth Fell

Mrs Christine Fuller

LEADERSHIP TEAM

There are various leadership groupings under

the direction of the National Leader: National Leadership Team, Regional Directors, and Heads of Ministry. These groups meet regularly separately, and altogether once a year. For more information see below under structure

and governance.

Mr David Lynch (Retired 15 December 2021)

NATIONAL LEADER

Mrs Sarah McHardie

Paul Harcourt

Rev Canon Ian Parkinson

EXECUTIVE DIRECTOR

Bishop Mike Royal

Jules Morgan

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National Leadership Conference – Harrogate, March 2020

REGISTERED OFFICE AND PROFESSIONAL ADVISERS

REGISTERED AND PRINCIPAL OFFICE

4a Ridley Avenue Ealing London W13 9XW

AUDITORS

Summers Morgan Sheraton House Lower Road Chorleywood Hertfordshire WD3 5LH

SOLICITORS

Morgan Lewis & Bockius Condor House 5-10 St Paul’s Churchyard London EC4M 8AL

BANKERS

Barclays Bank plc Pall Mall Corporate Banking Centre, 50 Pall Mall, London SW1A 1QA

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United Breaks Out, July/August 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

New Wine Trust is a registered charity no.

1084415 and a company limited by guarantee, governed by a memorandum and articles

of association. The charitable company’s registration number is 04126583. It was incorporated on 12th December 2000 and registered as a charity on 9th January 2001.

TRUSTEES

The trustees are all non-executive and are elected

by the members. None of the trustees had any interest in the charity or its subsidiary. The trustees are conscious of the need for the trustee body to embrace a broad variety of skills and new trustees are considered in the light of their ability

to contribute to the work of the trust. They are appointed by the members in accordance with the

Trust Deed and are provided with such background

and training as is agreed to be appropriate on an

individual basis. The Trust welcomed one new trustee during the year as part of its trustee

rotation plans and to progress the vision of a trustee body which is more representative of the network we serve on the basis of gender, geographical location, ethnicity and churchmanship.

A finance and investment committee oversees the charity’s investments. It also reviews the financial policies and key financial plans prior to submission to the trustee board.

CHARITY GOVERNANCE CODE

Trustees are committed to the principles of the Charity Governance Code and the charity’s governance arrangements follow the recommendations, so far as is possible, in respect of all aspects of good practice in governance for larger charities.

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ORGANISATION

The charity is overseen by the non-executive Board of Trustees shown above which decides upon strategic and policy matters. Trustees meet around five times each year with one meeting usually on-site at one of the United National Gatherings. For 2020 and 2021, all Trustee meetings were held via videoconference.

At the start of each year these individuals, except for the wider employed staff team, together with the Trustees participate in a strategic review and planning meeting as part of a two-day retreat. The same group also participate in a mid-year review meeting to monitor progress and consider any changes or corrective actions for the strategic priorities and direction of the charity.

The full-time Executive Director reports to the National Leader. Both of these key posts are supported by:

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RELATED PARTIES

New Wine has no formal association with other charities but works closely with several other

Christian charities to share best practice.

PAY POLICY FOR SENIOR STAFF

The pay of senior staff is reviewed annually, along with that of the whole staff team and any pay rises take account of a range of factors including cost of living increases. Salaries have been benchmarked against pay levels within similar sized charities in Greater London. New Wine has a remuneration principles and policy statement which was l a s t updated and approved by trustees in December 2019. The statement is in accordance with the recommendations of the National Council for Voluntary Organisations (of which New Wine has membership). A People and Remuneration sub-committee reviews all staff remuneration, contracting and welfare. Of material relevance for 2021, all staff, including senior staff, received a 0.5% pay award and the organizational pay ratio of highest to median salary is 2.2:1.

RISK FACTORS

The trustees consider the major risks to which the

charity is exposed and ensure that adequate systems are in place to mitigate exposure to these risks. The strategic risk register is updated and

reviewed annually, alongside procedures to ensure they continue to meet the needs of the charity.

The following are the key risks assessed as the

most significant for the charity :

  1. Loss of key staff. We do not hold key person insurance. However, we do structure ourselves so that responsibilities are spread across a wide number of key positions. Staff contracts are generally on two months’ notice to allow a smooth handover and some more senior key staff contracts require three months’ notice. The Executive Director’s contract has been increased to six months’ notice and the National Leader is on a 3-year renewable term of office allowing for good succession planning. Desktop procedure documentation in key functions is constantly updated to mitigate this risk.

  2. Risks posed by the increasing role of IT in all aspects of the trust’s activities. We carry out a full risk assessment and impact analysis each year with actions put in place to mitigate high risk areas.

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  1. Cancellation of the United Gatherings at short notice due to unforeseen circumstances. The global Coronavirus pandemic brought this into sharp relief, with powers given to Local Authorities to prevent or close events on grounds of public health or impact on key services, compounded by insurance policies excluding cover for such events. The current reserves policy requires the trust to hold sufficient funds to cover committed costs in the unlikely occurrence that we would have to cancel our summer events and issue refunds.

  2. Longevity of suppliers and volunteers. During 2019 and 2020, a complete review and update of contracts and service level agreements with suppliers was conducted to ensure that services were still fit for purpose, and contracting was sufficiently robust. This has been maintained and updated through 2021. Similarly, volunteer agreements were updated and issued, and volunteer policies and training were improved and updated.

The trustees acknowledge that they are responsible for the maintenance of an effective system of internal control. However, no system of internal financial control can provide absolute assurance against material misstatement or loss. The trustees have considered the major business risks and control objectives relevant to the trust and controls were found to be appropriate and generally satisfactory. As part of an overall and continuing drive for quality, an ongoing review of internal controls is addressing those areas where controls may be improved. The trust’s control objectives include:

SUBSIDIARY

New Wine Resources Limited is a 100% owned subsidiary of New Wine Trust and was incorporated on 17th October 2001. It exists to manage the commercial activities linked to the charity (including publishing books, music and the spoken word, selling advertising space in the conference programmes, running cafes and

renting space in the Market Place at conferences). It also provides a jobs board for organisations wishing to recruit new staff. The subsidiary pays all of its profits to the charity by way of a gift aid donation.

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OBJECTIVES AND ACTIVITIES

CHARITABLE OBJECTS AND PUBLIC BENEFIT

New Wine has three core charitable objectives which are:

  1. to promote for the public benefit the advancement of the Christian Religion in England and, where invited, throughout the world;

  2. to equip churches to see Jesus’ Kingdom grow; and

  3. to see the nation changed through Christians and churches being filled with the Spirit, alive with the joy of knowing and worshipping Jesus Christ, living out his word, and doing the works of the Kingdom of God.

through like-minded groups in other countries as well. Through the outworking of these activities, we see lives changed for good in spiritual, moral, ethical and practical ways. This includes relationships restored (within families and marriages), healing, both physical and spiritual, encouragement and support when experiencing difficulties, comfort to the bereaved or grieving, hope generated and a framework for life. We see people turning away and freed from damaging lifestyles including drug and alcohol dependency, pornography, gambling, bitterness and resentment, anger and violence, depression and despair and new life being generated in their place.

The United Gatherings are New Wine’s major annual activity. At these, amongst other things the charity;

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

We achieve these objectives by encouraging lives dedicated to expressing God’s love to individuals and communities throughout the country, and

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1,644

delegates of online Leadership Conference in 2021

In other areas New Wine offers:

(1,500+ attended National Leadership Conference in Harrogate, 2020)

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ACHIEVEMENTS AND PERFORMANCE

VOLUNTEERS

New Wine derives benefit from the services of unpaid volunteers whether the time is given by its’ trustees and members of the leadership team, or by the large number of individuals who assist with the running of conferences and other events. The United Gatherings in particular rely on many thousand volunteer team members, helping out in the areas of children and youth work, stewarding, hospitality and in a number of smaller specialised teams. We are so grateful for all those that use their gifts to support our work in these ways.

We estimate that more than 250,000 hours of volunteer work are contributed each year to help make our events a success. As there are children at the United Gatherings, we use the Disclosure and Barring Service and reference checks to screen volunteers and provide safeguarding training to all volunteers working with children and vulnerable individuals under a safeguarding policy which has an annual review.

REVIEW OF ACTIVITIES

The vision statement ‘Local churches, Changing Nations’ directs our strategy and planning. Its simplicity and challenge has caught the attention of both historic denominations and new church leaders; we are networking with an expanding breadth of denominations, knowing that only by working together can we achieve this vision.

Jesus is the hope of the world and we believe the only way our communities will get to see, understand and receive that hope is through the local Church - as we live out his new life in our everyday lives!

With the prayers and support of our New Wine family throughout 2021, we’ve seen acceleration of church planting; church leaders supported and released to lead renewal in their churches; and generous investment into our future with increased provision for emerging young leaders as we seek to better serve the move of God across

‘My local Leaders Network gather, share, discuss, encourage and pray for one another. We really value and appreciate New Wine’s input into our lives, specifically the care and support of our Regional Development Manager.’

the nation, and further bursary places for urban churches and missionaries.

Our success is measured through engagement of the local church, as delegates at conferences and users of content provided online, and as members of active networks. Key metrics for 2021 are included below.

The United gathering in 2021 was hosted online for the second year running, between 29 July and 3 August. ‘United Breaks Out’ (UBO) was broadcast live and livestreamed via YouTube. All main celebrations, our youth and children’s programmes and our Accessible Church stream were made available without charge.

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We saw over 20,000 unique online visitors during the course of the event, plus another 3,000 for our youth event, ‘Luminosity Streaming Live’. Over 700 young people joined the Luminosity mailing list and received a free event wristband and prayer card.

As restrictions were lifted to allow public gatherings during the time of the event, the total number of people joining UBO was far greater than the number of visitors to the website, due to communal viewing by families, churches and whole communities. We connected and resourced over 200 ‘Uniters’ before the event – representatives from local churches responsible for gathering people around the event.

We also offered a programme of seminars as part of UBO, which were available with paid membership to our online platform, New Wine Online. We saw 587 new members from 1 July – 3 Aug.

Due to the on-going impacts of the global pandemic, most events had to be cancelled or postponed in 2021. The events that could be held were:

New Wine receives many testimonies of the impact these events have on both the individual delegates and their local churches, when they return refreshed, energised and more aware of God’s plan for their role in the local church.

‘In the 6 days of United Breaks Out there have been many highlights. God has spoken powerfully and we've experienced his real and present presence. Some of the words the Holy Spirit gave the hosts have not just reinforced what had been said - but have been a catalyst to allow the Holy Spirit to take many of us further and deeper in Him. Thank you.’

(United Breaks Out 2021)

5,751

201

Views of United Kids Uniters connecting online sessions members of local churches during online summer gathering

3,000+

20k+

Youth & youth Joining United Breaks Out online summer groups joining Luminosity online gathering event

65+

1,644

charities and missional organisations represented at New Wine online events

Delegates at our online Leadership Conference 2021

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‘Reset’ Women’s Day, 2021

The church leaders’ network continues to flourish with over 2,070 active members; New Wine is providing invaluable support to local church leaders in their own contexts through the local area network groups as well as networking opportunities at larger conferences or gatherings.

Our Discipleship Year programme now has 14 centres using the programme for interns in 2021/22. This programme continues to be extremely well received by churches and students alike. International ministry has been encouraged via an International Forum with 23 countries represented.

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2,074
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55
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active members of Leadership the Network area New Wine gatherings Leadership Network

83

Discipleship Year students in 14 hubs

Other achievements during 2021 include:

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‘United Breaks Out’ 2021 Children’s content

FUNDRAISING

New Wine raises funds from regular givers, major donors, offerings at conferences and one-off gifts and these represent the principal funding sources for the charity, alongside delegate fees for conferences run in the financial period. The Trust is registered with The Fundraising Regulator but does not use a professional fundraiser or commercial participator for this activity, other than in an advisory capacity.

No complaints were received during the year in relation to these fundraising activities.

The funds raised support the development activities aligned to raising generations and church planting, maintaining the church leaders’ networks and meeting the operational costs of running the charity and its associated ministries.

New Wine does not approach members of the general public for donations but periodically runs appeals to supporters of the conferences and other individuals on opt-in mailing lists. In 2021, a Christmas Appeal was run to support New Wine’s activities.

Our summer conference programme could not be run at the East of England Showground in 2021. A number of delegates generously donated the fees paid for the year in lieu of refunds or transfers to a future event.

‘I arrived at Reset exhausted and in desperate need of an encounter with God. I enjoyed every aspect of the day - the anointed worship, the prophetic visualisation, the tangible presence of the Holy Spirit. I had encouraging words for people I knew and others I had never met before. I had a nagging pain in the bottom of my left heel from running which I was worried was the start of a more serious condition. When Anne Coles asked if anyone had been healed during the day I realised that the pain was gone and it hasn't come back!’

(Reset Women’s Day 2021)

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FINANCIAL REVIEW

RESULTS

The results for the financial year are shown on

page 22. The group’s net movement in funds shows a deficit of £515,707 (2020: deficit of £276,546 (restated)). The charity’s operating performance is summarised on pages 23 to 25.

The trustees’ responsibilities for the financial statements are described on page 18.

A deficit was anticipated and planned for in anticipation of the ongoing effect of the global pandemic. The cancellation of the summer conference for the second year has maintained income at reduced levels for the period. New Wine was extremely grateful that many delegates chose to donate part or all of the fees paid to support the ongoing work of the charity. Through their support, it was possible to provide a digital conference online “free to air” on the YouTube platform with other seminars offered on a paid basis, as well as a digital conference for church leaders. The costs of production are captured within the conference expenditures, alongside deposits and cancellation payments made to our suppliers. The government’s Coronavirus Job Retention Scheme continued to be available for part of the year and was drawn upon to avoid the need for staff reductions, which would seriously impede the ability to plan and deliver future conferences.

REVIEW OF FINANCIAL POSITION

The trust continues to maintain a sound financial position, with cash reserves within the range considered by the trustees to be adequate for the

group’s overall operations. In 2021 the net deficit

before transfers and revaluations on unrestricted funds was £589,513 (2020 restated: £308,098). Unrestricted undesignated income of £1,119,445 (2020: £1,768,062) arose as detailed in notes 2 to 5

– largely from conference fees - and unrestricted undesignated expenditure totalling £1,701,458 (2020: £2,076,160) was made during the year (note 10).

The unrestricted fund includes items designated by the trustees for particular purposes – notably fixed assets and funds for the future development of New Wine including church planting, the move to new conference sites and investing in the next generation of leaders.

Note 19 details the restricted and designated

fund movements. The balance on restricted funds at

the start of 2021 was £4,399 and on designated funds

£685,520. The closing balances are £4,399 and £478,258 respectively. A restricted fund donation was received in 2021 towards the costs of a seminar series, which was fully expended in the year.

There was a very generous collection for the benefit of New Wine in 2021 at the United B r e a k s O u t digital event. The closing balance on unrestricted, undesignated reserves was £226,263 (2020 restated: £534,698).

The trustees consider that the market value of the assets and liabilities in the balance sheet are not materially different from those stated.

The trust’s subsidiary company, New Wine Resources Limited, traded profitably throughout the year and contributed £56,236 to the trust during the year (2020: £10,791).

Following publication of the 2020 accounts, an error was identified in the calculation of deferred income, resulting in a reduction of the charity’s reserves at the 2020 balance sheet date of £204,581. The comparative accounts have therefore been restated. More detail is given in note 3.

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RESERVES POLICY

New Wine is under a legal duty to apply charitable funds within a reasonable time of receiving them. It is also under an obligation to ensure that it is able to meet all its financial obligations as they fall due. In balancing these considerations, the trustees are aware that New Wine regularly commits itself to substantial expenditure for future conferences and events some time before they take place. They have formally adopted a policy to retain funds at a level that is sufficient to ensure that the charity’s financial commitments in promoting forthcoming conferences and events are fully covered at all times, together with a minimum of 3 months’ general office running costs.

GOING CONCERN

New Wine anticipated a financial deficit for 2021, due to the ongoing effect of the global pandemic that commenced in 2020. Expenditures have been managed to limit exposure to losses in the event of cancelling events, and on-line conferences have used a mix of freeto-view and paid content to provide a modest income stream. Significant balances have been held as prepayments for future events and Trustees have regard to these alongside in-year deficits when reviewing going concern and sustainability.

Whilst the 2022 United events were successful by a range of performance measures, the number of attendees at the summer conference was significantly lower than expected which put further strain on the charity's finances.

GRANTS

The majority of grants paid out relate to restricted income and are distributed as soon as conveniently possible. No grants were paid out during 2021. The restricted income is derived from offerings taken at a number of the conferences or individual donations which are to benefit other charities or to further the mission of New Wine and launch new initiatives.

INVESTMENT POLICY

The charity’s memorandum provides the Board with the power to invest monies not immediately required for its purposes in such investments, securities or property as maybe thought fit, subject to any conditions and with such sanction as may be required by law.

In view of the significant cash flow variations that arise due to the seasonal nature of the trust’s activities, the trust holds its surplus funds on short term deposit with its. The trustees have also decided that up to £1million can be held in charitable investment funds with an expectation of a minimum 5 year term.

In selection of the funds, the investment committee consider and balance risks attached to asset managers, asset class and individual stocks. The ethical stance of the charity is also a primary consideration in selection of the investment manager and funds.

In July 2022, New Wine Trust was informed that the charity will not be able to hold a camping event at the East of England Showground in the summer of 2023, because of plans to develop the site. As a result of this, the launch of a United event for 2023 has been delayed, with a consequential detrimental effect on cash flow (since the charity traditionally relies on income from bookings paid in advance to fund both recurring expenditure and the cost of future events). The charity therefore instigated a major fundraising exercise in 2022 which has raised donations in excess of £0.9m to date and received additional substantial commitments of future support.

The impact of the pandemic and the current economic crisis has reduced our income and increased our costs. Significant donations were received in 2022 and New Wine is going through a period of restructuring which will impact both future income streams and future costs. At the time of preparation of the financial statements, the restructuring process has not been completed which creates a material uncertainty in relation to:

The Trustees consider these to be timing issues as plans are progressing as part of New Wine’s discernment process.

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The charity remains confident in its role supporting the network of churches and event delegates throughout the year, not just for the summer conference.

Sustainability and going concern are monitored carefully at a number of levels:

PLANS FOR FUTURE PERIODS

In addition to its usual programme of conferences and educational events, New Wine intends to continue to focus development in the following areas:

As noted above, plans are in place to ensure that summer conferences can be run in 2023 and beyond. These plans may require future investment in infrastructure at the selected site to support the numbers of delegates and will incur costs of relocating equipment during 2022 or 2023. No provision for these costs has been made in these financial statements.

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TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The charity trustees (who are also directors of the New Wine Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP). Company law requires the trustees to prepare such financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the financial activities of the group for that period and which comply with UK GAAP, the Companies Act 2006 and the Statements of Recommended Practice issued by the Charity Commission in England and Wales. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and

explain the company’s transactions and disclose with reasonable accuracy at any time the financial

position of the charitable company, for taking reasonable steps for the prevention and detection of fraud

and other irregularities and for the preparation of a trustees’ report which complies with the requirements

of the Companies Act 2006.

The trustees are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and that, where appropriate, the Director of Operations and their direct line reports are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

STATEMENT OF DISCLOSURE TO AUDITORS

In so far as the trustees are aware at the time of our approving the trustees’ annual report:

AUDITORS

A market-test and tendering exercise was conducted in 2021, from which the Trustees decided that the charity should change auditors in order to demonstrate good governance. A resolution proposing that Buzzacott LLP be appointed as auditors of the company will be presented to the Annual General Meeting.

On behalf of the Board of Trustees

John Coles (Chair) Dated: 21 October 2022

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INDEPENDENT AUDITOR’S REPORT

OPINION

We have audited the Group financial statements of

New Wine Trust for the year ended 31 December 2021, which comprise the Group Statement of

Financial Activities, the Group and the Charity Balance Sheets, the Group and the Charity Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

not yet identified a suitable site for running summer conferences in 2023.

As stated in Note 1.1 and in the going concern section of the Trustee report, this fact along with other matters as set forth in Note 1.1, indicate that a material uncertainty exists that may cast significant doubt on the charity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information.

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our

opinion on the financial statements does not cover the

other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Basis for opinion

We have conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK))

and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the

ethical requirements that are relevant to our audit of

the financial statements in the UK, including the

FRC’s Ethical Standard, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide

a basis for our opinion.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the

other information is materially inconsistent with the

financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in

the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report

in this regard.

Material uncertainty relating to going concern

We draw attention to note 1.1 Basis of preparation in the financial statements, which explains that the charity has

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Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by

exception

In the light of the knowledge and understanding of the Group and the Charity and its environment obtained in the course of the audit, we have not

identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’

responsibilities statement set out on page 18, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Group and the Charity’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using

the going concern basis of accounting unless the

trustees either intend to liquidate the Group or Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Use of our report

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to

them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than

the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

To address the risk of fraud through management bias and override of controls, we:

Nicholas Corden ACA (Senior Statutory auditor)

In response to the risk of irregularities and noncompliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and management and the inspection of regulatory and legal correspondence, if any.

For and on behalf of

Summers Morgan, Statutory Auditor

Chartered Accountants Registered Auditor

Sheraton House, Lower Road, Chorleywood Hertfordshire

WD3 5LH

Dated:

25 October 2022

Summers Morgan is eligible to act as an auditor under section 1212 of the Companies Act 2006

A further description of our responsibilities for

the audit of the financial statements is located on

the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

21

NEW WINE TRUST Accounts NEW WINETRUST-TRUSTEES. ANNUALREPORT AND ACCOUNTS 2021 22

NEW WINE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations, grants and legacies
Donations
2
Love offerings at conferences

Income from charitable
activities
Conferences & networks
3,19
Income from other trading
activities
Commercial trading operations
4
Investment income
5
Total income
Expenditure on:
Raising funds
Commercial trading operations
4
Fundraising and publicity costs
8
Charitable activities:
Conferences & networks
7
Grants payable
6
Total expenditure
Net outgoing\ resources before transfers
and revaluations (net income /
expenditure
for the year)
Net gains/(losses) on
investment assets
13
Net movement in funds
Transfers between funds
Reconciliation of funds
Fund balances at 1 January
Fund balances at 31 December
18,19		 Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
636,150
7,500
643,650
36,140
-
36,140
672,290
7,500
679,790
131,144
-
131,144
293,008
-
293,008
15,503
-
15,503
1,111,945
7,500
1,119,445
236,807
-
236,807
13,533
-
13,533
250,340
-
250,340
1,451,118
7,500
1,458,618
-
-
-
1,451,118
7,500
1,458,618
1,701,458
7,500
1,708,958
(589,513)
-
(589,513)
73,806
-
73,806
(515,707)
-
(515,707)
-
-
-
(515,707)
-
(515,707)
1,220,218
4,399
1,224,617
704,511
4,399
708,910		 Unrestricted
Restricted
Total
Funds
(restated)
Funds
2020
(restated)
£
£
£
1,210,865
-
1,210,865
19,886
-
19,886
1,230,751
-
1,230,751
373,102
-
373,102
137,540
-
137,540
26,669
-
26,669
1,768,062
-
1,768,062
127,511
-
127,511
8,562
-
8,562
136,073
-
136,073
1,935,087
-
1,935,087
5,000
-
5,000
1,940,087
-
1,940,087
2,076,160
-
2,076,160
(308,098)
-
(308,098)
31,552
-
31,552
(276,546)
-
(276,546)
-
-
-
(276,546)
-
(276,546)
1,496,764
4,399
1,501,163
1,220,218
4,399
1,224,617

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. See note 10 for detail of prior year Statement of Financial Activities.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

23

NEW WINE TRUST

CONSOLIDATED AND CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Fixed Assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due
within one year
16,19
Net current assets
Net assets
Income funds
Restricted funds
Unrestricted funds:
General funds
Designated funds
Total funds
18,19		 Group
2021
2020
restated
£
£
32,560
94,539
594,103
520,297
626,663
614,836
14,535
21,667
196,841
163,153
942,837
912,868
1,154,213
1,097,688
1,071,966
487,907
82,247
609,781
708,910
1,224,617
4,399
4,399
226,253
534,698
478,258
685,520
708,910
1,224,617		 Charity
2021
2020
restated
£
£
32,560
94,539
594,105
520,299
626,665
614,838
-
-
288,896
553,145
622,978
442,399
911,874
995,544
885,866
396,556
26,008)
598,988
652,673
1,213,826
4,399
4,399
170,016
523,907
478,258
685,520
652,673
1,213,826

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006.

The notes on pages 26 to 43 form part of these accounts.

The accounts were approved by the Board on 21 October 2022.

......................................................................... Sarah McHardie – Trustee 21 October 2022

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

24

NEW WINE TRUST

CONSOLIDATED AND CHARITY STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Statement of cash flows
Cash flows from operating activities
Net cash provided by/(used in) operating activities
22
Cash flow from investing activities
Interest from investments
Purchase of fixed assets
Proceeds from the sale of investments
Net cash provided by/(used in) investing activities
Change in cash, cash equivalents and net debt in the reporting
period
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December		 Group
2021
2020
£
£
40,849
(993,102)
15,503
26,669
(26,383)
(41,047)
-
655,000
(10,880)
640,622
29,969
(352,480)
912,868
1,265,348
942,837
912,868		 Charity
2021
2020
£
£
191,495
(911,709)
15,467
25,906
(26,383)
(41,047)
-
655,000
(10,916)
639,859
180,579
(271,850)
442,399
714,249
622,978
442,399

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

25

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty the preparation in the financial statements are as follows:

1.1. Basis of preparation

The financial statements comply with the

New Wine Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The functional currency is Pound Sterling and all financial results are reported in Pound Sterling.

The accounts have been prepared on a going concern basis and the Trustees consider New Wine to be a going concern. As explained more fully in the Trustees' Report on page 16, the Trustees acknowledge that there is material uncertainty in relation to the future income and expenditure streams beyond 2022 due to the lack of a confirmed site for a summer conference in 2023 and the completion of a restructuring exercise.

1.2. Basis of consolidation

These financial statements consolidate the results of the charity and its wholly-owned subsidiary, New Wine Resources Ltd (a company registered in England and Wales under number 04306296) on a line- by- line basis. A separate Statement of Financial Activities, or Income and Expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

1.3. Income and expenditure

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable the income will be received, and the amount can be measured reliably. Specifically:

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

26

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

1.4. Donated services

Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of the economic benefit from the use by the charity of the items is probable and that economic benefit can be measure reliably. In accordance with the Charities SORP (FRS 102) the volunteer time from the many thousands of volunteers noted in the trustees report is not recognised.

Professional services are received ad hoc from our solicitors and this is recognised at the amount the charity would have been willing to pay to obtain services of equivalent economic benefit on the open market; a corresponding amount is also recognised in expenditure.

1.5. Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Assets costing less than £1,000 are expensed rather than capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Leasehold Improvements 10% per annum on cost (over the term of the lease) Plant and machinery 33% and 50%

1.6. Investment policy

The trustees can invest surplus funds and they have decided that up to £1million can be held in charitable investment funds with an expectation of a minimum 5 year term. In selection of the funds, the investment committee consider and balance risks attached to asset managers, asset class and individual stocks. The ethical stance of the charity will also be a consideration. The trust also holds surplus funds on fixed term deposit with its bankers on the money market as current assets.

1.7. Stocks

Stocks are valued at the lower of cost and net realisable value.

This includes cash in hand and short term highly liquid deposits with a short maturity of three months

or less from the date of acquisition.

1.10. Support costs

Support costs are allocated between the principal activities of the trust for charitable activities, generating income and governance. Where costs are not directly attributable, the allocation is based on an estimation of the time spent or by reference to the income generated on the various activities.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

27

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1.11. Pensions

The charity auto-enrolled employees into the People’s Pension – a Defined Contribution Scheme (DCS) in April 2015 and a re-enrolment exercise was undertaken in 2020. Employer contributions are accounted for on an accruals basis.

1.12. Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

  1. Income from donations and grants (there were no legacies)
Unrestricted donations
Grants received
Designated donations
Restricted donations
Total donations		 2021
£
448,673
219,867
3,750
7,500
679,790		 2020
£
994,068
236,683
-
-
1,230,751

Included in the above amounts is £50,539 (2020: £51,981) gift aid recoverable. The majority of the donations are from individuals and are below £5,000 each. Love offerings received at conferences, other than the specific charities restricted collections, are classified as unrestricted funds.

Grants receivable included £144,867 from the government Coronavirus Job Retention Scheme (£2020: £111,683), and a grant with restricted purposes from a charitable body sharing common objectives with New Wine (two unrestricted grants were received in 2020).

  1. Income from charitable activities
e from charitable activities
National gatherings
Less free of charge places and discounted places offered
Net National Gatherings
Other conferences
Training		 2021
£
397
-
397
98,149
32,598
131,144		 2020
(restated)
£
184,512
-
184,512
146,037
42,553
373,102

Free of charge and discounted places are made available under the New Wine Urban Bursary Fund to delegates and missionaries who may otherwise not be able to afford to attend the summer conference. No in-person events took place in the year; accordingly no such contributions were payable for the years under review.

The Fees from National gatherings for 2020 have been restated to correct a prior period error. Fees collected for certain cancelled conferences scheduled for 2021 were erroneously included within fees for the period. A total of £204,581 has been adjusted, transferring the sum into current liabilities (income received in advance) and the unrestricted reserves balance at 31 December 2020 have been reduced by this sum. (See also Note 18)

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

28

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Income earned from other activities

Commercial trading activities of trading subsidiary

The charity owns 2 shares of £1 each in its wholly owned subsidiary New Wine Resources Ltd, which is incorporated in the United Kingdom, publishes Christian music and other resources and pays all of its profits to the charity by way of Gift Aided donation. A summary of the trading results is set out below:

results is set out below:
Summary profit and loss account
Turnover
Cost of sales and administrative expenses
Interest receivable
Net income from trading
Donation to the Charity
Retained in the subsidiary
The assets and liabilities of the subsidiary were:
Fixed assets
Current assets
Creditors: amounts falling due within one year
Total net assets
Aggregate share capital and reserves
5.
Investment income
Interest receivable
Investment income		 2021
£
293,008
(236,807)
36
56,237
(56,237)
-
-
397,546
(397,544)
2
2
2
2021
£
75
15,429
15,503		 2020
£
137,540
(127,511)
762
10,791
(10,791)
-
-
578,889
(578,887)
2
2
2
2020
£
3,318
23,351
26,669

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

29

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

6.
Grants payable
Church Planting
Eden, Stockton		 2021
£
-
-		 2020
£
5,000
5,000

Grants payable are predominantly made out of restricted funds (see note 18). Attendees at the United Gatherings and some other conferences are invited to contribute to specific Christian charities selected by the Leadership Team. Those chosen have aims which are compatible with New Wine's overall objectives. No charities’ collections were taken in 2021 nor 2020 due to the absence of a physical gathering in the summer.

Additional travel bursaries will typically be payable out of designated development funds in years that a summer conference takes place, meeting together on site. No such bursaries were payable for 2021 nor 2020.

7. Analysis of expenditure on charitable objectives

Unrestricted funds
Site costs/direct event costs
Teams & Activities
Marketing
Direct office costs
Governance Costs
Support costs
Total unrestricted
Designated funds
Salaries and related costs
Teams & Activities
Support costs
Total designated
Subtotal – General funds
Restricted funds
Support costs
Total		 Leadership
Network &
Discipleship
Year, Training &
National
Other
International
development
Gatherings
Conferences
Ministry
of New Wine
£
£
£
£
104,348
15,648
-
-
31,124
1,070
2,175
15,205
15,062
-
174
237
-
-
1,152
1,508
31,287
3,475
728
3,523
770,063
85,522
10,410
86.706
951,884
105,715
14,639
107,179
-
-
244,751
25,000
-
-
-
1,950
-
-
-
-		 2021
Total
£
119,996
49,574
15,473
2,660
39,013
952,701
1,179,417
269,751
1,950
-
-
-
244,751
26,950
951,884
105,715
259,390
134,129
-
-
7,500
-
951,884
105,715
266,890
134,129		 271,701
1,451,118
7,500
1,458,618

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

30

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Analysis of expenditure on charitable objectives (cont.)
Unrestricted funds
Site costs/direct event costs
Teams & Activities
Marketing
Direct office costs
Governance Costs
Support costs
Total unrestricted
Designated funds
Salaries and related costs
Support costs
Total designated
Subtotal – General funds
Restricted funds
Support costs
Total		 Leadership
Network &
Discipleship
Year, Training &
National
Other
International
development
Gatherings
Conferences
Ministry
of New Wine
£
£
£
£
270,485
120,444
-
-
276,825
4,530
15,158
23,929
16,752
85
7,785
199
-
-
5,821
1,141
34,669
7,687
1,768
1,553
675,626
149,794
34,453
30,267
1,274,357
282,540
64,985
57,089
-
-
232,366
23,750
-
-
-
-
-
-
232,366
23,750
1,274,357
282,540
297,351
80,839
-
-
-
-
1,274,357
282,540
297,351
80,839		 2020
Total
£
390,929
320,442
24,821
6,962
45,677
890,140
1,678,971
256,116
-
256,116
1,935,087
-
1,935,087

Costs are allocated directly to an activity where possible and otherwise in the same proportion as the direct costs. Designated fund developments include investing in younger leaders and encouraging church planting, urban development and other church growth initiatives.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

31

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

8. Allocation of governance and support costs

Audit
Other fees paid to auditor
Salaries and related costs
Depreciation
Office expenses & marketing
Total
Audit
Other fees paid to auditor
Salaries and related costs
Depreciation
Office expenses & marketing
Total		 Charitable
Activities
support costs
Fundraising &
Publicity Costs
Charitable
Activities
Governance
£
£
£
-
-
5,030
-
-
-
720,087
10,472
14,910
85,711
884
1,767
154,403
2,177
17,306
960,201
13,533
39,013
Charitable
Activities
support costs
Fundraising &
Publicity Costs
Charitable
Activities
Governance
£
£
£
-
-
9,948
-
-
-
614,977
6,340
12,680
83,617
862
1,724
191,546
1,360
21,325
890,140
8,562
45,677		 2021
Total
£
5,030
-
745,469
88,362
173,886
1,012,747
2020
Total
£
9,948
-
633,997
86,203
214,231
944,379

During the year the group paid their auditors £7,643 (2020: £14,983) for the audit of the group. Other support costs are allocated on the basis of time use.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

32

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Summary analysis of expenditure and related income for charitable activities

This table shows the undesignated general fund costs of the four main charitable activities and sources of income directly to support those activities.

Analysis of
support
Note
Income
3
Costs
7
Analysis of
support
Note
Income
3
Costs
7		 Leadership
Discipleship
National
Other
Network &
International
Year Training &
development
Gatherings
Conferences
Ministry
of New Wine
£
£
£
£
397
104,009
-
32,598
(951,884)
(105,715)
(22,139)
(107,179)
(951,487)
(1,706)
(22,139)
(74,581)
Leadership
Discipleship
National
Other
Network &
International
Year Training &
development
Gatherings
(restated)
Conferences
Ministry
of New Wine
£
£
£
£
389,093
146,037
-
42,553
(1,209,583)
(268,178)
(61,682)
(54,187)
(820,490)
(122,140)
(61,682)
(14,536)		 2021
Total
£
137,004
(1,186,917)
(1,049,913)
2020
Total
(restated)
£
577,683
(1,593,630)
(1,015,947)

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

33

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

10. Detail of current year Statement of Financial Activities

General
Designated Total
Restricted
funds
funds
Unrestricted
funds
£
£
£
£
Income from:
Donations and legacies
Donations
632,400
3,750
636,150
7,500
Love offerings at
conferences
36,140
-
36,140
-
668,540
3,750
672,290
7,500
Income from charitable activities
Conferences & networks
131,144
-
131,144
-
Income from other trading activities
Commercial trading
operations
293,008
-
293,008
-
Investment income
15,503
-
15,503
-
Total income
1,108,195
3,750
1,111,945
7,500
Expenditure on:
Raising funds
Commercial trading operations
236,807
-
236,807
-
Fundraising and publicity
costs
13,533
-
13,533
-
250,340
-
250,340
-
Charitable activities:
Conferences & networks
1,179,417
271,701
1,451,118
7,500
Grants payable
-
-
-
-
1,179,417
271,701
1,451,118
7,500
Total expenditure
1,429,757
271,701
1,701,458
7,500
Net outgoing resources before transfers
and revaluations (net income / expenditure
for the year)
(321,562)
(267,951)
(589,513)
-
Transfer between funds
13,117
(13,117)
-
-
Net gains/(losses) on
investment assets
-
73,806
73,806
-
Net movement in funds
(308,445)
(207,262)
(515,707)
-
Reconciliation of funds
Fund balances at 1 January
534,698
685,520
1,220,218
4,399
Fund balances at 31 December
226,253
478,258
704,511
4,399		 2021
Total
funds
£
643,650
36,140
679,790
131,144
293,008
15,503
1,119,445
236,807
13,533
250,340
1,458,618
-
1,458,618
1,708,958
(589,513)
-
73,806
(515,707)
1,224,617
708,910

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

34

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

10. Detail of prior year Statement of Financial Activities (Restated)

General
Designated Total
Restricted
funds
funds
Unrestricted
funds
£
£
£
£
Income from:
Donations and legacies
Donations
1,210,865
-
1,210,865
-
Love offerings at
conferences
19,886
-
19,886
-
1,230,751
-
1,230,751
-
Income from charitable activities
Conferences & networks
373,102
-
373,102
-
Income from other trading activities
Commercial trading
operations
137,540
-
137,540
-
Investment income
26,669
-
26,669
-
Total income
1,768,062
-
1,768,062
-
Expenditure on:
Raising funds
Commercial trading operations
127,511
-
127,511
-
Fundraising and publicity
costs
8,562
-
8,562
-
136,073
-
136,073
-
Charitable activities:
Conferences & networks
1,678,972
256,115
1,935,087
-
Grants payable
-
5,000
5,000
-
1,678,972
261,115
1,940,087
-
Total expenditure
1,815,045
261,115
2,076,160
-
Net outgoing resources before transfers
and revaluations (net income / expenditure
for the year)
(46,983)
(261,115)
(308,098)
-
Transfer between funds
(31,063)
31,063
-
-
Net gains/(losses) on
investment assets
-
31,552
31,552
-
Net movement in funds
(78,046)
(198,500)
(276,546)
-
Reconciliation of funds
Fund balances at 1 January
612,744
884,020
1,496,764
4,399
Fund balances at 31 December
534,698
685,520
1,220,218
4,399		 2020
Total
funds
£
1,210,865
19,886
1,230,751
373,102
137,540
26,669
1,768,062
127,511
8,562
136,073
1,935,087
5,000
1,940,087
2,076,160
(308,098)
-
31,552
(276,546)
1,501,163
1,224,617

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

35

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

11.
Staff costs
Number of employees
Average number of employees during the year
Wages and salaries
Social security costs
Other pension costs
Total staff costs		 2021
30
£
873,908
73,558
85,827
1,033,293		 2020
33
£
953,761
80,264
86,475
1,120,500

There was one employee whose emoluments (gross pay excluding pension and national insurance) was over £60,000 (2020: one). The total employee benefits paid to key management personnel (of which there were 2 in 2021) amounted to £109,289 (2020: £94,706). In addition, New Wine makes donations to several churches in recognition of the involvement of their own staff in the wider leadership team of New Wine.

The charity operated a Defined Contribution Pension Scheme provided by the People's Pension. The charity contributes 10% of basic salary with no requirement for the employee to contribute. The total employer contributions to this scheme for the year were £85,827 (2020: £86,475) with the final month’s contributions outstanding at the year end, totalling £6,468 (2020: £nil).

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

36

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

12. Tangible Fixed Assets

Summary for accounts
Cost
At 1 January 2021
Additions
Disposals
Revaluations
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Tangible assets -
Leasehold
Improvements
Tangible assets -
Plant & machinery
£
£
487,342
568,455
-
26,383
-
(195,077)
-
-
487,342
399,761
487,342
473,916
-
88,362
-
(195,077)
487,342
367,201
-
32,560
-
94,539		 Total
£
1,055,797
26,383
(195,077)
-
887,103
961,258
88362
(195,077)
854,543
32,560
94,539

The trading company did not own any fixed assets.

13.
Fixed Asset investments
CCLA investment fund
Market value at 1 January
Disposal proceeds
Unrealised gains/(losses)
Market value at 31 December
Historic cost		 2021
£
520,297
-
73,806
594,103
261,226		 2020
£
688,745
(200,000)
31,552
520,297
368,745

New Wine Trust holds 2 shares of £1 each in its wholly owned trading subsidiary company New Wine Resources Ltd, which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The activities and results of this company are summarized in note 4.

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

37

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

14. Stock Group Charity
2021 2020
 2021 2020
£ £ £ £
Trading stock - books and resources 14,535 21,667 - -

Stock is valued at the lower of acquisition cost and realisable value. All stock is owned by the subsidiary trading company.

15.
Debtors
Trade Debtors
Other debtors
Prepayments and accrued income
Amount due from subsidiary undertaking
16.
Creditors - amounts falling due within one year
Trade Creditors
Other creditors and accruals
Income in advance
17
Taxation and social security costs
Pensions
Amount owing to subsidiary undertaking		 Group
2021
2020
£
£
74,926
102,264
5.191
10,043
116,724
50,846
-
-
196,841
163,153
Group
2021
2020
£
£
39,965
19,828
75,455
20,421
926,937
424,418
23,083
23,240
6,526
-
-
-
1,071,966
487,907		 Charity
2021
2020
£
£
20,094
16,210
5,191
6,544
113,881
50,146
149,730
480,245
288,896
553,145
Charity
2021
2020
£
£
26,458
15,583
36,644
15,015
796,687
342,718
19,551
23,240
6,526
-
-
-
885,866
396,556

17. Deferred income - Group and Charity

Deferred income comprises advance fee income for conference and events in the subsequent financial year and charity partnerships extending over 12 months.

Total deferred income at 1 January
Amounts received/(refunds issued) in year
Amounts credited to statement of financial activities
Total deferred income at 31 December		 2021
£
424,418
633,663
(131,144)
926,937		 2020
£
1,190,379
(392,859)
(373,102)
424,418

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

38

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Prior period error and adjustment of opening balances

As reported under note 3, a prior period error was discovered whereby fees presented for National gatherings in 2020 erroneously includes fees collected for certain conferences scheduled for 2021. A total of £204,581 has been adjusted, representing fees collected for 2021 events which had been cancelled by the time at which the 2020 accounts were drawn up. A prior period adjustment is recognised within these financial statements, reducing the 2020 National conference fees transferring the sum into current liabilities (income received in advance) and the unrestricted reserves balance at 31 December 2020 have been reduced by this sum.

Income from charitable activities:
National gatherings
Other conferences
Training
Total
Creditors: amounts falling due within one year
Trade Creditors
Other creditors and accruals
Income in advance
Taxation and social security costs		 As originally
reported
2020
£
Adjustment
£
Restated
balance
2020
£
389,093
146,037
42,553
(204,581)
-
-
184,512
146,037
42,553
577,683
(204,581)
373,102
19,828
-
19,828
20,421
-
20,421
219,837
204,581
424,418
23,240
-
23,240
283,326
204,581
487,907

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

39

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

19.
Fund details and other notes
General funds
Designated funds
Fixed assets
Development of New Wine
Total unrestricted funds
Restricted funds
Seed money
Course preparation		 Balance at 1
Jan 2021
(restated)
Income
Expenditure
Transfers
and
unrealised
gains
£
£
£ £
534,698
1,108,195
(1,429,757)
13,117
94,539
-
(88,362)
26,383
590,981
3,750
(183,339)
34,306
685,520
3,750
(271,701)
60,689
1,220,218
1,111,945
(1,701,458)
73,806
4,399
-
-
-
-
7,500
(7,500)
-
4,399
7,500
(7,500)
-
1,224,617
1,119,445
(1,708,958)
73,806		 Balance at
31 Dec 2021
£
226,253
32,560
445,698
478,258
704,511
4,399
-
4,399
708,910

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

40

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

20.
Analysis of consolidated net assets between funds
General
Designated
Restricted
Funds
Funds
Funds
£
£
£
Fund balances at 31 December 2021
are represented by:
Fixed Assets
594,103
32,560
-
Current assets
704,116
445,698
4,399
Creditors: amounts falling due within
one year
(1,071,966)
-
-
226,253
478,258
4,399
General
Designated
Restricted
Funds
Funds
Funds
£
£
£
Fund balances at 31 December 2020
are represented by:
Fixed Assets
520,297
94,539
-
Current assets
502,308
590,981
4,399
Creditors: amounts falling due within
one year
(487,907)
-
-
534,698
685,520
4,399		 20.
Analysis of consolidated net assets between funds
General
Designated
Restricted
Funds
Funds
Funds
£
£
£
Fund balances at 31 December 2021
are represented by:
Fixed Assets
594,103
32,560
-
Current assets
704,116
445,698
4,399
Creditors: amounts falling due within
one year
(1,071,966)
-
-
226,253
478,258
4,399
General
Designated
Restricted
Funds
Funds
Funds
£
£
£
Fund balances at 31 December 2020
are represented by:
Fixed Assets
520,297
94,539
-
Current assets
502,308
590,981
4,399
Creditors: amounts falling due within
one year
(487,907)
-
-
534,698
685,520
4,399		 2021
Total
Funds
£
626,663
1,154,213
(1,071,966)
708,910
2020
Total
Funds
£
614,836
1,097,688
(487,907)
534,698
685,520
4,399		 1,224,617

21. Financial Commitments

At 31 December 2021 the company had outstanding commitments for future minimum lease payments under noncancellable leases which fall as follows:

cancellable leases which fall as follows:
Photocopiers
Future minimum operating lease payments
In less than one year
Between one and five years
Total
Land and Buildings
Future minimum operating lease payments
In less than one year
Between one and five years
Total		 2021
£
-
1,638
1,638
35,000
43,750
78,750		 2020
£
6,558
1,638
8,196
35,000
78,750
113,750

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

41

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

NEW WINE TRUST

  1. Reconciliation of movement in funds to net cashflow from operating activities
Net expenditure for the reporting period
Add back depreciation
Gains on investments
Dividends, interest and rents
(Increase)/Decrease in stocks
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Net cash provided by/(used in) operating
activities		 Group
2021
2020
£
£
(515,707) (326,956)
88,362
86,203
(73,806) (31,552)
(15,503)
(26,669)
7,132 6,447
(33,688)
27,855
584,059(728,430)
40,849
(993,102)		 Charity
2021
2020
£
£
(561,153)
(291,070)
88,362
86,203
(73,806)
(31,552)
(15,467)
(25,907)
-
-
264,249
228,707
489,310
(878,091)
191,495 (911,710)

23. Notes to the consolidated cash flow movement

Analysis of the consolidated cash flow movement

At 31 December At 31 December
2020 Cash flows 2021
£ £ £
Cash at bank and in hand 912,868 29,969 942,837
Total cash at bank and in hand 912,868 29,969 942,837

24. Trustees

None of the trustees received any remuneration during the year for services as trustee.

Travel and meeting expenses for all trustees amounted to £nil (2020: £nil); no trustee received expenses to reimburse travel costs (2020: no trustee incurred expenses). No trustee received honoraria for speaking at the United National Gatherings in the year or prior year.

At the year-end there were no outstanding payments to trustees and their related parties for services other than as a trustee (2020: £nil)

Aggregate donations received from the trustees or related parties without conditions was £1,590 (2020: £1,212)

NEW WINE TRUST – TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2021

42

NEW WINE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

  1. Related party relationships and transactions

Royalty payments

During the year, royalty payments of £17 were payable to Rev J and Mrs Coles (2020: £nil) in connection with books authored by them.

Service provision

During the year, New Wine contracted with FreelyGive Ltd, a key supplier, for IT services. One of our trustees, David Lynch is a consultant for FreelyGive Ltd. He has declared an interest and excludes himself from any Trustee discussions related to this. In 2021 expenditure with FreelyGive Ltd was £45,840 (2020: £60,996).

During the year, a number of the Trustees purchased access to New Wine Online from the subsidiary company at the standard prices for this service.

26. Contingent Liabilities

No contingent liabilities were recognised at 31 December 2021 (2020: nil).

  1. Events after the reporting date

Restrictions imposed in response to the global pandemic were being relaxed in the early months of 2022, allowing in-person conferences to take place again, with certain precautions being exercised. New Wine have reviewed the financial statements for 2021 and consider that these circumstances do not warrant any adjustment of values presented.

An error in the prior year accounts relating to deferred income was identified after the reporting date and a prior year adjustment prepared as described in note 18. Further in-year adjustments have been reflected within these accounts to correct the carrying values of liabilities at the balance sheet date.

Following the reporting date, the East of England Showground advised that New Wine will be unable to hold a camping event based at its site in 2023 or thereafter. The financial implications of a move of site will be recognised in future accounting periods. The planned events for 2022 were not affected by the change.

In response to the continued financial pressures, the Trustees are considering a proposed staff restructuring.

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43