# _Annual Report and Accounts 2022-2023_ get alongside someone and see what God can do ## **Contents** **----- Start of picture text -----**
1. The Big Picture page 1
Introduction
Activities
Public Benefit
a e 3
. p g
2.Looking back.. Looking forwards
People and Places
The Intangible Impact
The Missing Generation
The Triple Bottom Line
Call to Movement
Passing the Baton
Five Strategic Outcomes
a e 13
3. Financial review p g
Income
Expenditure
Investment Policy
Reserves Policy
Fundraising Activity
Going Concern
a e 18
4. Governance and Administrative information p g
Governance
References and Administrative Information
Statement of Trustees’ Responsibilities
a e 23
5. Accounts p g
Independent Auditors Report
Statement of Financial Activities
Balance Sheet
Statement of Cash Flows
Notes to the Accounts
**----- End of picture text -----**
## 1. _The Big Picture_ _Simon Wroe_ ## s _Chair of Trustee_ Thank you for taking the time to read our annual report and accounts. ee yf | We hope it provides a good picture of the work that we do as a marks —— A a 8 charity and how it ‘builds the Kingdom of God’. fi ee The work described in this report is carried out by our representatives and members of our wider network and only made possible through the partnership of those who support us financially and in prayer. If you are reading this because you are already part of that story, thank you! If reading this story inspires you get involved, then please do look at our website or speak to one of our team. The main objective of the Navigators UK is the advancement of the Christian religion in the UK and overseas through evangelism, teaching, mentoring, training and the production and distribution of materials. We are committed to helping people come to know Christ, to live as Christ’s disciples in society and to be equipped to help others to do the same. This is expressed in our calling: _‘To advance the gospel of Jesus and his kingdom into the nations through spiritual generations of labourers living and discipling among the lost’._ **The term we use for those labourers is ‘alongsiders’.** The UK Navigators is part of a world-wide partnership operating in over 100 countries. We adhere to and support our global mission, vision and values statement which you - - can view here: https://navigatorsworldwide.org/calling values vision _p1_ ## **Activities** The Navigators UK’s principal activities to achieve our charitable objectives for the public benefit are: ## _Supporting People and Projects_ The support of self-employed Navigator representatives who are funded by donations made for their ministries. Within the UK these representatives are currently helping people to live out and pass on the Christian faith in a variety of contexts and situations, including: university students those beyond 50 years of age church small groups and leaders those of different cultures living in the UK those in their early working life who have graduated from our student ministries Some of our representatives do similar work in other countries, mostly in Europe but also in Africa, the USA and Asia. ## _National and Regional Initiatives_ National and regional initiatives that build on the work of individual representatives and self-funding associates, including the development of new discipleship resources for use both within the Navigator movement and by individuals and churches, and the provision of short-term overseas trips to provide younger Christians with experience of living and working in a cross-cultural context. ## _Training and Development_ Initiatives for the training, development and care of Navigator representatives and associates, including a graduate programme called Connect, and a NavEquip course for those wishing to develop a longer term association with the Navigators UK. ## _Events_ Events to connect and envision friends and supporters. These range from our flagship National conference to events for students, emerging leaders and entrepreneurs. ## **Public Benefit** The trustees have had due regard to the Charity Commission’s guidance on public benefit. _p2_ ## _2. Looking Back...Looking Forwards_ ## _Phil Boydell National Director_ This report covers a really exciting year for the Navigators UK. After a é year where our focus was on rebuilding work which was disrupted by the effects of the COVID pandemic, this year has provided opportunities to come together with Navigators across the UK and internationally and reflect on how we can develop our work for the future. **People and Places** The map on the next page gives you a sense of the diversity of Navigator work across the UK. At 31 August 2023 there were 45 associates and 77 representatives working with the Navigators UK, including six new representatives and three new associates who joined us over the course of the year. _77 representatives associates 45_ **----- Start of picture text -----**
4
4 > [~~]
11
c
i
t
i
e
s
**----- End of picture text -----**
Around a third of our representatives ministered to university students in eleven UK cities, with a particular ministry to international students in some of these universities. Other representatives are involved in the leadership of the projects described above and ministering in their local communities. Off the edge of the map, UK representatives continue to work in Poland and France and we were really excited to be able to send two representatives to minister in Asia at the end of the year. On a sadder note, during the year we saw the retirement and then death of Ron Finlay after 52 years of faithful service as a Navigator Rep. _p3_ **----- Start of picture text -----**
Navigators
across the UK
Inverness
e
Stirling Dundee
ee
CF 7 eco /cece
Glasgow St Andrews
000d rae , eee
Musselburgh
Edinburgh
eee ” By pl eee
Newcastle
Holmfirth
Belfast
O Me “e ee
Aston & BCU Dale Abbey
Lincoln
Manchester e Nottingham
,e@00ee yx ° ecce
Leicester
e000
Dublin
Cambridge
$ BIS eee
Wolverhampton
Boxford
a eee@
Coventry
Birmingham
ce |
London
Zt ed o..
ec6o _ eee
Oxford eee
Southampton
Bournemouth
Cardiff eco 8 «8
KEY ee @ eee
International missions
Student
e °
Young people
Community ministry
@ Second Half Living - aged 50 and over
Local church
Young families
City collective
. e
Young professionals
° Cross cultural - working with Muslims
Entrepreneurs
e Leadership
e Ireland project
p4
**----- End of picture text -----**
## **The Intangible Impact** The international global vision statement of the Navigators says ‘We see a vital movement of the Gospel, fuelled by prevailing prayer, flowing freely through relational networks and out . into the nations. Workers for the Kingdom are next door to everywhere!’ Before we dive in and look at some of our activities over the last year and plans for the future, I want to acknowledge that while it is easy to describe human activity in a report, it is much harder to capture the way the Holy Spirit is transforming lives, day-to-day through the relationships which alongsiders make with those around them- but this is and will remain the heart of our work. The outcome of this is hundreds of people who are equipped to withstand the turmoil of 21st Century life by developing greater emotional and spiritual resilience. ## **The Missing Generation** There is what has been called the ‘missing generation’ of young people aged 16-34 in church life who were reported as being only 13% of church attendees in 2017 (Ruth H Perrin, Changing Shape: The Faith Lives of Millennials (SCM Press, 2020) p.17). We believe that to reach this generation you have to invest deeply, transforming lives and raising up leaders who will grow to have _only 13%_ both the maturity and courage to make a real impact in their _in 2017_ generation for Christ and be a blessing to others. | © We have around 400 students involved in our various ministries across the UK. We are also developing a project _400 students_ in the Dundee area which is applying our experience of _across the UK_ relational work with young people outside a university context and supporting local church youth workers. Our aim is that we deeply invest in this emerging generation so that strong foundations of faith and life are established that will enable them to stand tall and help them to be able to be a blessing to others. _p5_ Alongside the day-to-day ministry, this year we have seen student retreats taking place from Shropshire to Stirling, an Emerging Leaders conference and student leaders coming together in our Student Forum. Each year, our Connect interns play a significant role in ministering to their peers while learning leadership skills which will make them assets to the church of the future. _10 interns 2023/24_ The strength of the work this year has been shown by the fact that at the end of this year the number of young people we are working with who have chosen to give a year of their life to join the Connect programme has doubled so we will have ten interns working with us in 2023/4. **----- Start of picture text -----**
NavMums
**----- End of picture text -----**
**----- Start of picture text -----**
Second Half Living
**----- End of picture text -----**
There are certain points in life where it is natural to seek out those with similar experiences for support and encouragement. Nav Mums is a ministry providing support to those trying to live out the calling of alongsiders while raising young families. At the other end of the spectrum, our Second Half Living team provide support and training to individuals and church groups looking at what it means to be a disciple maker in retirement. _p6_ Second Half Living has been seeking to finalise resources and materials in order to launch out and serve the wider church. Under new leadership they are exploring developing a whole new cohort of ‘trainers’ who can take the material across the UK. They are also developing partnerships with others in the church in this strategic area of helping people navigate the challenges of the second half of life. Multiple churches and groups throughout the UK have been part of trialling the resources. ## **Navigators Entrepreneurs Community** _56 businesses_ We believe that one of the primary ways in which the Kingdom of God will be displayed and advanced in this next generation is through ordinary Christians setting up businesses that shine the light of Jesus in our hungry and broken world. We are passionate about partnering through our Entrepreneurs Community with existing and aspiring Christian entrepreneurs to ‘do good by doing good business’ where we explore the implications of the Kingdom of God. It is hugely exciting to work with entrepreneurs to help them put God at the very centre of their businesses and explore how they can 'make disciples' in and through their lives and business platforms. We currently have 56 businesses _Kingdom_ connected in the UK and have run 3 weekends away as well as _Values_ regular online training gatherings helping these businesses work out a Triple Bottom Line vision of 'Kingdom' businesses. _Social Impact_ ## **Call to Movement** Over the year we have spent much time exploring how we can develop our work and in particular broaden our reach by encouraging and equipping those who share our vision to see spiritual generations of disciples and are living that out by coming alongside others in their workplace, community or family. To equip this movement we are investing significantly in our communications team, and over the year we have seen the fruit of this in four very successful NavNetwork events, bringing together hundreds of people who share our vision, equipping them through powerful teaching and the opportunity to share with each other. In March we were able to build on this face-to-face when we gathered 200 people together at our National Conference in Harrogate. _p7_ At the conference we also launched Alongside magazine, a bi-annual publication which will be a powerful resource for all those with a heart for making disciples. Alongside adds to the wide range of books on the topic we continue to sell through our online store which now lives within a shiny new website packed with resources which will equip and encourage Christians across the country. ## _Rois’ story_ “Sam was really patient with me as for a long time I wasn’t ready – I wasn’t ready to go to church and I wasn’t ready to ask questions, but at the right time I had this perfect conversation which changed my life as Sam was able to express something of God’s grace. It blew my mind as I thought God wouldn’t be interested in me because of everything I’d been up to.” By the last year of university, Rois hadn’t met one Christian other than her brother Sam, a Navigator rep. Her picture of what it meant to be a Christian was to be a goody-two-shoes and she decided that if she wanted to have fun she had to do it her way. After trying everything she was left with a feeling of dissatisfaction and a lonely longing for more… but as Sam got alongside Rois and exposed her to God’s goodness it meant that over time she found herself drawn towards God and experiencing his love. Rois joined a Navigator group where she got to hear more about who God is and his goodness. This revelation changed Rois’s _Click here to listen to Rois’ full story!_ **-** world and gave her a passion to come **Rois Alongsider Story YouTube** alongside other younger girls to help them know God’s goodness for themselves. _p8_ ## **Passing the Baton** The combination of a refreshed vision and the movement of some key people has led us to review how we will lead the work going forwards. This summer marked the winding down of the National Leadership Team and Regional Leadership Teams who have done so much to support and guide our work over the last two years. _Bernard Dishman_ We also saw Bernard Dishman, who has been our National Student Leader for many years, step up to the role of European Regional Director upon the retirement of Bill Sparks. We also saw the retirment this year of long serving representatives, Ted and Linda Pilling. _European Regional Director_ To take our work forwards, we are establishing a new National Leadership Council which will replace the regional teams, bringing more of our work and people together. A new National Director’s Team has been established to provide strategic direction to the work and along with the trustees, going forward, they will form the key management personnel of the charity. This team started in September 2023 and includes the following people: _Phil Boydell National Director_ _Stu Newland Assistant National Director (Scotland/Ireland focus)_ _Mike Spencer Assistant National Director (England/Wales focus)_ _Adam Simmonds Assistant National Director (City Collectives focus)_ _Rosalyn Boydell Nick Baker Assistant National Director Finance and Strategy (Comms, Resources and Eldership focus) Manager_ _p9_ ## **Five Strategic Outcomes** Looking forward as a movement we are going to focus on five strategic outcomes. Some of these are new, some are outcomes we have implicitly had for a while, but moving forward they will provide a great clarity and focus for our work in the coming years. We want to see: _1._ Alongsiders mobilised across all generations. _2._ Alongsider communities living and discipling among the lost. Engagement, equipping and partnering with the wider UK church in the Alongsider _3._ vision. _4._ The next generations engaged with and reached. _5._ A new generation of leaders identified, equipped and commissioned. _1._ mobilised across all Alongsiders generations: We believe that the central ‘who’ of our calling is alongsiders. The scarcity of active alongsiders in the UK church is palpable and, if we are to have any impact on our culture, we need a massive multiplication of people equipped to help others discover Jesus and grow in him. We need to grow people who live this vision across all generations, socioeconomic backgrounds and ethnic groups. _2._ Alongsider communities living and discipling among the lost: We want to see compassionate alongsider communities established, which overcome the problem of isolation and people losing focus on the disciple-making vision. We want to see communities in which people partner together to live and disciple among the lost. We see these communities as critical to our future fruitfulness. _p10_ _3._ Engagement, equipping and partnering with the wider UK church in the Alongsider vision:The church in the UK has huge potential for growing disciple-makers who make all the difference in the UK. We want to see Navigators UK playing a significant part in ‘shifting the dial’ on the whole disciple-making culture of the UK church through finding new ways of engaging and equipping the wider body of Christ. _4._ The next generations engaged with and reached: They are the ones on whom the future of our calling depends – lose the focus on them and we lose our generational impact. As we look forwards, we need to engage more and more creatively with the youth, student and 20s generations in order to flourish into the future. _5._ A new generation of leaders identified, equipped and commissioned: We want to see a new generation of leaders who can steward both the organisation and the movement in the years to come. Leaders are critical to the health of our organisation and our development of them will, to a large extent, determine our ability to facilitate and grow the movement. _p11_ From the day-to-day work of Alongsiders across the country to some of the activities I have described above that have taken place over the last year, we are already on the journey to achieving the objectives. Next year we have several new strategic initiatives planned which will take us further down that road. These include: **Commissioning City Collectives to provide centres of vision, prayer, training, innovation and movement mobilisation.** **Continuing the growth of our network and providing a deeper sense of connection with Navigators for those who share our vision. Developing our partnership with grant making bodies and other funders to enable us to continue to expand the Connect Internship scheme and make it easier to access by providing greater financial support to those participating.** ; **Deepening our engagement with local churches. With local churches we have a strategy of both a ‘bottom up’ mobilisation of everyday people in local churches to get alongside others, and a ‘top down’ approach of engaging with church leaders with our vision and seeing whole local churches impacted with our vision** Ga _p12_ _3. Financial Review Sze-Meng Kueh Chair of the Finance Committee_ Reviewing our finances always makes me grateful for God’s provision and the generosity of His people. The heart of our finances are our 9 1,156 mission partners who partner with one or more of our representatives. These faithful long term partnerships provide support to our work through prayer and financial giving which enables our representatives to sustain themselves in mission and provides a stable core to our finances. If you are one of one of our mission partners reading this, thank you! _the heart of our finances are our_ The other side of our financial strategy is that we want to invest in achieving the five outcomes _1,156 mission partners_ set out above by Phil Boydell. If we want to raise up CO a new generation of leaders working and labouring among the lost we need to be able to provide financial support to our Connect interns and new reps as they set out in ministry and build up a base of ministry supporters. If we are to mobilise a wider movement of disciple makers we need to develop our communication team who produce the resources that connect, inspire and support those who share our vision and our living it out in their day-to-day lives. Of our £1.7m income £1.5m is restricted to support particular workers or ministries. Our challenge is to increase these unrestricted funds to allow us to continue investing in our wider work. **----- Start of picture text -----**
unrestricted general funds
restricted for specific reps and ministries
come
n i
i s
ur m
o a
d
w e
o
u
H
p
**----- End of picture text -----**
So far we have been done this through using our strong reserves and generous one off gifts and legacies. However, to securely fund this ambitious vision for the future, we will seek to increase the number of supporters giving regularly to our unrestricted general funds. _p13_ The balance sheet shows total net assets of £1,973,167; a reduction of £128,357 during 2022/23. There are no funds in deficit in the accounts. The key causes of this change were: **a planned investment in the charity’s operations from unrestricted reserves of £55,712.** **a grant of £45,802 to the Navigators of Africa for the development of a new school, expending the fund established for Navigator work in Africa from the legacy left by Miss Peggy Robinson.** **the net investment of £39,981 in repairs to the structure and fabric of the charity’s London House.** ## **Income** Voluntary donations were £1,409,728 (2022: £1,344,723). In addition the charity also recovered gift aid of £183,136 (2022: £193,637). This represents an increase of 4.8% in voluntary income excluding legacies. This reflects an increase in the charity’s central fundraising activities as part of its long term plan to move away from deficit budgets and also continued emphasis on a _4.8% increase in_ Ministry Partner Development programme to support the funding of our representatives’ work. _voluntary income_ Most of our voluntary income is restricted by the donors to support the ministries of particular Navigator representatives or projects. An 8% administration charge was levied on restricted gifts to help fund the activities by the national office to support the work of our frontline work. Despite the ongoing national economic challenges, the overall picture is one of stability and the trustees are very grateful for the faithful generosity of our supporters. They are continuing to actively monitor the monthly income for the support of individual Navigator representatives and for our general funds. In cases where particular representatives have suffered hardship, the Charity has made short-term discretionary grants to provide support. ## **Expenditure** The bulk of our expenditure continues to be payments made to support the ministries of self-employed Navigator representatives working in the UK and abroad. Unrestricted funds (including the 8% administration charge) were used to fund ministries and projects and to cover the central support costs of the national office and governance. These central support costs were £245,620 (2022: £229,356). _p14_ ## **Investment Policy** The majority of investments are maintained in a low-risk liquid position with competitive interest. In addition £175,000 is held in the CCLA COIF Ethical Investment Fund to better protect the charity’s strategic reserves from inflation. The placement of the remaining funds has been reviewed to maximise interest rates and is now divided between the CCLA COIF Charity Deposit Fund, a 90-day notice protected by the government Financial Services Compensation Scheme and the remainder held with the charity’s principal bankers. The amount invested, the spread over institutions and the interest rates earned are regularly reviewed by the Finance Committee of the Board. ## **Reserves Policy** Unrestricted funds are held in general funds to meet the costs of future ministries and projects and to underwrite current activities. Monitoring of reserve levels, resultant budget setting and review of actual financial performance are reviewed by both the Finance Committee and the Board. During the year the trustees reviewed the charity’s reserves policy to reflect the addition of the London House to the charity’s balance sheet which provides additional long term financial security to the charity and reduces the requirement for the charity’s current assets to be tied up in reserves. ## **Key elements of our reserve policy** Unrestricted free reserves (defined as unrestricted funds excluding designated funds) are held to protect against a sudden and catastrophic fall in donations and/or related tax relief. This is in order to protect the work of our representatives and enable the Charity to continue operating in the short term whilst evaluating and exercising options for survival or cessation and is consistent with good practice. Both minimum and maximum reserve levels are calculated to be used when monitoring performance and setting future budgets. These calculations use varying percentages of the next year’s budgeted costs for a minimum and maximum time period plus provision for an emergency fund, as set out below. Target unrestricted free reserve levels are expressed as a range calculated on the basis of 100% of staff costs for 3-9 months - 100% of non-staff based central administrative costs for 3-9 months - 100% of central ministry costs for 3-9 months - 30% of average Navigators UK representative support for 3-6 months - Emergency support of staff/representatives in exceptional circumstances - (minimum £25,000 and maximum £50,000) - We seek to stay broadly around the midpoint level of this unrestricted free reserve range and to never drop below the minimum. _p15_ ## **Our current reserve position and projections** Calculated target reserves under this policy based on 2023/24 budgeted costs result in a maximum unrestricted reserve level of £471,284 and a minimum unrestricted reserve level of £189,233 (giving a midpoint target of £330,258). At the end of 2022/23 free reserves stood at £390,205. The trustees have therefore felt confident to set a deficit budget of £132,142 for the 2023/24 financial year, supporting the continuing development of the charity’s work. To reflect their duty to act prudently the trustees have taken a cautious approach to the forecasting of income, however they have set a more ambitious fundraising target that would lead to a considerably smaller deficit if achieved. During the year the trustees will carefully monitor fundraising performance while carrying out a review of the charity’s financial strategy to ensure that a sustainable strategy is in place to provide financial support to the charity’s long term operations. ## _Size of unrestricted reserves compared with reserve margins_ **----- Start of picture text -----**
£700,000
£600,000
£500,000
£400,000
£300,000
£200,000
£100,000
£0
2024
(budget)
2015 2016 2017 2018 2019 2020 2021 2022 2023
**----- End of picture text -----**
_Minimum reserves Maximum reserves Mid-point_ _p16_ ## **Fundraising Activity** The Charity’s fundraising approach is based on building personal relationships with donors and potential donors, inspiring those who share our goals to want to partner in our work both financially and through prayer. Self-employed Navigator representatives are responsible for raising funds for the Charity that can be used to support the costs of their ministries; the Charity can provide them with information packs and fundraising materials to help them in this. Fundraising to support central Charity costs is co-ordinated by a core group including members of the NDT and staff members and is overseen by the trustees’ Finance Committee. The Charity does not use commercial fundraisers. Supporters are thanked appropriately and their data is kept secure. We do not sell or share supporter data for marketing purposes. We have not received any complaints about our fundraising activity. ## **Going Concern** In the light of the continuing generous support of our donors and the charity’s strong balance sheet and reserves, the trustees are confident it is appropriate to prepare the annual accounts on a going concern basis. _p17_ ## _4.Governance and Administrative Information_ ## **Governing Document** Navigators UK is a company limited by guarantee with charitable status which was incorporated on the 1st May 2002. In the event of the company being wound up, the members are liable to contribute such an amount as may be required (not exceeding £10) in respect of the guarantee. The Charity was registered in Scotland in July 2007. The governing document is its Memorandum and Articles of Association, these were last amended by a special resolution in 2011. ## **Appointment of Trustees** Navigators UK is a company limited by guarantee with charitable status which was incorporated on the 1st May 2002. In the event of the company being wound up, the members are liable to contribute such an amount as may be required (not exceeding £10) in respect of the guarantee. The Charity was registered in Scotland in July 2007. The governing document is its Memorandum and Articles of Association, these were last amended by a special resolution in 2011. ## **Organisation** Responsibility for the governance of the Charity lies with the Board of Trustees, which meets at least three times a year. During the year Steve Wexler was appointed to join the board. The Finance Committee met three times last year and comprised three trustees and the Country Leader, with responsibility for budget setting, monitoring of income and expenditure and the overview of the year-end accounts and audit. The Board has also established a Representative and Pastoral Committee, which met three times last year. This committee deals with pastoral matters relating to representatives and associates in order to better aid the fulfilment of trustee responsibility in these important areas. The Board see it as part of their responsibility to be in direct contact with the representatives and associates around the UK in order to be aware of the developments in the ministry and the needs and opportunities that arise. Trustees are encouraged to attend local Navigator events and meetings to have contact with representatives, associates and supporters when this is possible. Navigators UK belongs to the European Navigator region (NavEurope) and is part of the worldwide Navigator partnership, which has its international office in Colorado Springs, USA. _p18_ ## **Related Parties** None of the trustees receive remuneration or other benefit from their work with the Charity. The opportunity to declare any potential conflicts of interest is presented at the commencement of each Board meeting. ## **Risk Management** The trustees continue to identify the major risks to which the organisation is exposed and ensure that risk is managed to a satisfactory level. Risks are identified and reviewed during the regular programme of Board and Board Committee meetings, where existing and new ministry activities, financial developments and regulatory changes are considered in the context of the risk they bring to the organisation. Once identified, risks are formally documented within a Risk Register and, where appropriate, controls are implemented so as to seek to reduce the residual risk to an acceptable level commensurate with the Charity’s resources. The principal risks identified are the impact of the cost of living crisis on donations, reduction in reserve values due to poor investment decisions, the continuing the impact of Covid-19 on relational ministry and current legislative uncertainties around the definitions of employment status. A process of monitoring income levels for both individual representatives and central funds was put in place during the Covid-19 process and this has been kept in place to allow early identification of any significant reduction in donations due to the current economic situation. In common with many charities with a small number of employees, the loss of key office staff through illness or resignation poses a risk to the day-to-day functioning of the Charity. The trustees have in place measures to detect emerging issues in good time but accept there will still be a residual risk. In relation to employment status, the trustees have continued to review the legislation and recent court judgements and have taken professional advice. The trustees continue to ensure a regular focus on our reserve levels as an integral part of our budgeting process. _p19_ ## **Reference and administrative information** Charity Registered in England & Wales No. 1099148 Charity Registered in Scotland No. SC038484 Company No. 04429021 Registered Office Turner House 54 The Avenue Southampton SO17 1XQ **Key Management Personnel** Key management personnel for the 2022/23 financial year comprised the trustees and the National Director. From September 2023 Key management personnel comprised the trustees and the National Director’s Team (see page 9 above). ## **Trustees** The trustees, who are also directors for the purposes of Company law, who served during the year and since the year end are: M Osborn (Chair to 1/11/22 after which resigned) *† S Wroe*† (Chair from 1/11/22) L de Caestecker H Heron† S-M Kueh* A Jones† A Craig S Wexler (appointed 26/06/2023)* *Finance committee †Representative and pastoral committee _p20_ P. Boydell ## **National Director** ## **Bank** NatWest plc 5 Market Place Kingston upon Thames KT1 1JX **Solicitors** Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES **Auditors** Burton Sweet Ltd The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR _p21_ ## **Statement of Trustees’ Responsibilities** The trustees (who are also directors of The Navigators UK Limited for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with 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 Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: O **select suitable accounting policies and then apply them consistently;** O **observe the methods and principles in the Charities SORP;** O **make judgments and accounting estimates that are reasonable and prudent;** O **state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and** O **prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.** The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and ensuring that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: O **there is no relevant audit information of which the charitable company’s auditors are unaware; and** O **the trustees have taken all steps that they ought to make themselves aware of that information.** Signed on behalf of the Board of Trustees Simon Wroe – Chair Date 22/11/2023 _p22_ ## _5. Accounts_ ## **Independent Auditor’s Report** ## **Opinion** We have audited the financial statements of The Navigators UK Limited (the “Charity”) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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: give a true and fair view of the state of the Charity’s affairs as at 31 August 2023 and of its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; have been prepared in accordance with the requirements of the Companies Act 2006 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulation 2006 (as amended). ## **Basis for opinion** We conducted out audit in accordance with international Standards in 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 Charity 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. _p23_ ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors 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 out 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. 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 the fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors’ report has been prepared in accordance with applicable law requirements. _p24_ ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; the financial statements are not in agreement with the accounting records and returns; certain disclosures of trustees’ remuneration specified by law are not made; or we have not obtained all the information and explanations necessary for the purposes of our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement, 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 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 Charity or to cease operations, or have no realistic alternative but to do so. _p25_ ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. 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 of 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: we identified the laws and regulations applicable to the charity through discussions with those charged with governance and other management, and from our knowledge and experience of the sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements of the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, pensions, environmental and health and safety legislation; and we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence and remaining alert during the audit for any indications of non-compliance. Our audit procedures in relation to fraud included but were not limited to: making enquiries of those charged with governance and other management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; discussing amongst the engagement team the risks of fraud; gaining an understanding of the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; testing journal entries to identify unusual transactions; assessing whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and investigating the rationale behind significant or unusual transactions. _p26_ 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 non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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/auditors/audit - - - - - assurance ethics/auditors responsibilities for the audit. This description forms part of our auditor’s report. ## **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 and section 44(1)c of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state in 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. ## **Joshua Kingston ACA (Senior Statutory Auditor)** For and on behalf of Burton Sweet Limited Statutory Auditor The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton 22nd November 2023 Bristol BS48 1UR Date: ......................... _p27_ **The Navigators Limited** ## **Statement of Financial Activities for the Year ended 31 August 2023 (Including Income and Expenditure Account)** The Charity has no other recognised gains or losses other than the results for the year as set out above. All the activities of the Charity are classed as continuing. Prior year fund comparatives are disclosed in note 18. The notes on pages 31-46 form part of these financial statements. _p28_ ## **The Navigators Limited** ## Registered in England & Wales (1099148) and Scotland (SC038484) ## **BALANCE SHEET AS AT 31 AUGUST 2023** These financial statements have been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006. Approved by the Trustees on 22nd November 2023 and signed on their behalf by: S. Wroe The notes on pages 31-46 form part of these financial statements. _p29_ **The Navigators Limited** ## **Statement of Cash Flows** ## **for the Year ended 31 August 2023** Charity law prohibits the use of net cash flows on any restricted fund to offset net cash outflows on any fund outside of its own purposes, except on special authority. In practice, this restriction has not had any effect on cash flows for the year. The notes on pages 31-46 form part of these financial statements. _p30_ ## **Notes to the Accounts** ## **1. Accounting Policies** The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year. ## _a. Basis of accounting_ The Charity is a public benefit entity. The financial statements have been prepared in accordance with the historical cost convention (except for investments which have been included at fair value) and 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 (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019. ## _b. Going Concern_ The trustees regularly review whether going concern is the correct basis for the preparation of the accounts. They are confident that this is the case based on a review of anticipated future cash flows and the Charity's strong balance sheet. They consider that there are no material uncertainties related to events or conditions that cast significant doubt on the Charity's ability to continue as a going concern. ## _c. Fund accounting_ Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity. Unrestricted designated funds are unrestricted funds set aside by the trustees for particular purposes. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. _p31_ ## _d. Income_ All income is included in the Statement of Financial Activities when the Charity is entitled to it and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Income from donations and legacies is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable, including the related tax recoverable under the Gift Aid scheme. Donated assets, services and facilities are included at the value to the Charity where this can be quantified. The value of services provided by volunteers has not been included in these financial statements. Income from investments is included when receivable and is allocated to unrestricted general funds. Income from legacies is recognised when there is entitlement to the income (the charity has been notified of the terms of the will after the death of the benefactor), it is probable that the asset will be receivable and it is measurable. ## _e. Expenditure_ Expenditure is recognised on an accrual basis, as a liability is incurred. Expenditure includes VAT, which cannot be recovered and is reported as part of the expenditure to which it relates. Expenditure related to raising funds comprises the costs associated with attracting voluntary income. Expenditure related to charitable activities comprises those costs incurred by the Charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Central support costs are allocated to the different charitable activities on the basis of estimated time spent by the support staff. These estimates are reviewed annually. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs. _p32_ ## _f. Tangible fixed assets_ Assets costing more than £1,000 are capitalised. Assets are initially recognised at cost or value to the Charity, and then held at this value less subsequent depreciation. An annual review for indicators of impairment is carried out on the property of the Charity by the Trustees. Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life (a full year's depreciation is calculated in the year of purchase and none in the year of disposal): Office and computer equipment - 25% p.a. straight line Real Property - Due to the current policy of investing significantly in the fabric of the Charity's London House the trustees believe it is appropriate not to make a depreciation charge on this property. However new solar panels have been installed which are being depreciated at 5% p.a. straight line. ## _g. Stock_ Stocks of literature and merchandise are stated at the lower of cost and net realisable value. Provision is made for slow-moving stock when appropriate. ## _h. Debtors_ Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts due. ## _i. Cash at bank and in hand_ Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. _p33_ ## _j. Creditors_ Creditors are recognised as soon as there is a legal or constructive obligation committing the Charity to pay out resources. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due. ## _k. Pensions_ The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity and are independently administered. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme. ## _l. Leasing commitments_ Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. ## _m. Investments_ Investments are initially recognised within fixed assets at cost, then subsequently at market value with any gains or losses recognised in the Statement of Financial Activities. _p34_ ## **2. Income from Donations and Legacies** ## **3. Income from Charitable Activities** To reflect the transition of our Reps Conference to a National Conference income figures for this which were reported under Training Development and Care in 2022 have been restated under Events and Trips. **4. Expenditure on Charitable Activities and Raising Funds** To reflect the transition of our Reps Conference to a National Conference expenditure figures for this which were reported under Training Development and Care in 2022 have been restated under Events and Trips. Central support costs are analysed in note 5. Central support costs were divided on the basis of support staff time, with the split between charitable activities for each member of staff reflecting the particular activities they are involved with. _p35_ ## **4. Expenditure on Charitable Activities and Raising Funds** ## **(continued)** National and regional initiatives includes central support costs related to work of the European Navigator Region of £11,374 (2021: £12,084). Within payments to representatives & projects (direct costs), institutional grants of £121,065 (2021: £92,854) were paid to Navigator projects in UK, Africa and North America. The remaining payments of £1,296,300 (2021:1,279,441) consisted of grants to individuals. ## **5. Central Support Costs** ## **6. Net Income before Transfers** This is stated after charging: ## **7. Staff Costs and Numbers** No employee received emoluments of more than £60,000 p.a. The average number of employees was five (2022: five). No employment benefits were paid to key management personnel (2022: nil). _p36_ ## **8. Fixed Assets** ## **9. Investment Assets** ## **10. Prepayments and Debtors** _p37_ ## **11. Creditors: Amounts Falling Due Within One Year** ## **12. Movement in Funds** ## Prior year comparatives are disclosed in note 19. _p38_ ## **12. Movement in Funds (continued)** - **(i) Libby Hinton Fund** holds part of a legacy that has been designated by the trustees for the provision of counselling, spiritual direction and retreats. - **(ii) Tithe Fund** held money designated by the trustees to be used as grants for projects and individuals associated with other Navigator organisations worldwide in line with the Charity's objectives. Following a review of how we support the worldwide partnership, the fund was closed during the year. - **(iii) Fixed Assets Fund** is a fund designated by the trustees to hold the value of fixed assets. - **(iv) Central Services Fund** holds part of a legacy that has been designated by the trustees to contribute towards central support costs. - **(v) London House Fund** (designated) holds a legacy relating to the London House and rental income. The fund has been designated to allow monitoring of the costs of operating and maintaining the property. - **(vi) Representative Funds** represents restricted donations to The Navigators UK Limited for the support of individual self-employed Navigator representatives or their ministry funds. - **(vii) Admin Fund** is a fund to receive restricted donations for administration costs. **(viii) Scottish Admin Fund** is a fund to receive restricted donations for administration costs associated with events and initiatives in Scotland. During the year in consultation with the donors the fund was closed and monies held used to offset the costs to the general fund of operating the Scottish Office. - **(ix) Robinson Africa Fund** is a restricted fund comprising a legacy left to The Navigators UK Limited to be used for work in Africa. During the year the fund was exhausted by a grant to the Navigators of Africa to enable them to set up a school in Nairobi. - **(x) Second Half Living** is a fund to receive restricted donations for Second Half Living initiatives. - **(xi) Student Ministries** is a fund to receive restricted donations for Student Ministries initiatives. - **(xii) Church Ministries** is a fund to receive restricted donations for Church Ministries initiatives. _p39_ ## **12. Movement in Funds (continued)** **(xiii) Other restricted gifts** represents small restricted donations for specific events or national initiatives. **(xiv) Other restricted grants** represents grants received during the year 2022/23 that have not been entirely expended and which are anticipated to be spent as projects are completed in 2023/24 **Transfers shown are net movements between funds and consist of:** **Transfer of designated funds:** movement of funds set aside by the trustees for specific purposes from unrestricted general funds into designated funds. **Central Support Costs Transfer:** Transfer of Central Support Costs relating to the London House from designated fund to General Unrestricted Funds. **Fixed Asset Transfers:** Transfer the value of newly acquired fixed assets from unrestricted funds to the designated fund **Depreciation Transfers:** Transfers the cost of depreciation of Fixed Assets from the designated fund to unrestricted funds **Administration charge transfers:** a levy on donations received transferred from various restricted funds to unrestricted general funds. **Ministry transfers:** movement of funds from various restricted and designated funds to unrestricted general funds to contribute towards expenditure in line with their restrictions and designations. **General Fund transfers:** donations that in the past have been restricted and have been redirected by the donor to unrestricted general funds. _p40_ ## **13. Analysis of Net Assets between Funds** ## **14. Commitments under Operating Leases** At 31 August 2023 the charitable company had future minimum lease payments under non-cancellable operating leases for each of the following periods: Expenditure on the Statement of Financial Activities for the year ended 31 August 2023 relating to these leases was £25,209 (2022: £25,418). ## **15. Trustees’ Remuneration** None of the trustees received any remuneration in the year (2022: £nil). £1,046 travel expenses were reimbursed to two trustees (2022: £209). ## **16. Donations from Related Parties** Aggregate donations (including tax refunds) received from trustees, key management personnel and their close family members was £33,525 (2022: 30,825). _p41_ **17. Related Party Transactions** Related party transactions during the year relate to grants made to the self-employed representatives to further the purposes of the charity. Helen Heron is a trustee of The Navigators UK Limited and is a close family member of a self-employed representative of the charity. The daughter of Helen Heron (a Trustee of the Charity) is a self-employed representative of the charity and received grants totalling £20,716 to further the purposes of the charity (2022: £17,088). Philip Boydell is the National Director of The Navigators UK Limited, a role that is considered to be key management personnel, and is a close family member of Rosalyn Boydell. As described in the Trustees Report, the National Director operates as a selfemployed representative of the charity and as such grants totalling £72,461 (2022: £75,160) were made to Philip and Rosalyn Boydell to further the purposes of the charity. ## **18. Prior Year Fund Comparatives for the Statement of Financial Activities** The Charity has no other recognised gains or losses other than the results for the year as set out above. All the activities of the Charity are classed as continuing. _p42_ ## **19. Prior Year Fund Comparatives for** ## **the Movement in Funds** **Libby Hinton Fund** holds part of a legacy that has been designated by the trustees for the provision of counselling, spiritual direction and retreats. **Tithe Fund** holds money designated by the trustees to be used as grants for projects and individuals associated with other Navigator organisations worldwide in line with the Charity's objectives. **Fixed Assets Fund** is a fund designated by the trustees to hold the value of fixed assets. **Central Services Fund** holds part of a legacy that has been designated by the trustees to contribute towards central support costs. **London House Fund (designated)** holds a legacy relating to the London House and rental income. The fund has been designated to allow monitoring of the costs of operating and maintaining the property. **Representative Funds** represent restricted donations to The Navigators UK Limited for the _p43_ ## **19. Prior Year Fund Comparatives for the Movement in Funds (continued)** **Admin Fund** is a fund to receive restricted donations for administration costs. **Scottish Admin Fund** is a fund to receive restricted donations for administration costs associated with events and initiatives in Scotland. **Robinson Africa Fund** is a restricted fund comprising a legacy left to The Navigators UK Limited to be used for work in Africa. **Second Half Living** is a fund to receive restricted donations for Second Half Living initiatives. **Connect** is a fund to receive restricted donations for the Connect graduate training programme. **Student Ministries** is a fund to receive restricted donations for Student Ministries initiatives. **Church Ministries** is a fund to receive restricted donations for Church Ministries initiatives. **Other restricted gifts** represent small restricted donations for specific events or national initiatives. **Other restricted grants** represents a grant received from the Ardbarron Trust towards Navigator work in Ireland that will be expended in Financial Year 2022/23. **Transfer of designated funds:** movement of funds set aside by the trustees for specific purposes from unrestricted general funds into designated funds. **Administration charge transfers:** a levy on donations received transferred from various restricted funds to unrestricted general funds. **Ministry transfers:** movement of funds from various restricted funds to unrestricted general funds to contribute towards expenditure in line with their restrictions. **General Fund transfers:** donations that in the past have been restricted and have been redirected by the donor to unrestricted general funds. _p44_ ## **19. Prior Year Fund Comparatives for the Movement in Funds (continued)** **Transfer of designated funds:** movement of funds set aside by the trustees for specific purposes from unrestricted general funds into designated funds. **Administration charge transfers:** a levy on donations received transferred from various restricted funds to unrestricted general funds. **Ministry transfers:** movement of funds from various restricted funds to unrestricted general funds to contribute towards expenditure in line with their restrictions. **General Fund transfers:** donations that in the past have been restricted and have been redirected by the donor to unrestricted general funds. ## **Transfers shown are net movements between funds and consist of:** _p45_ ## **20. Reconciliation of the Statement of Financial Activities** ## **21. Analysis of Changes in Cash and Cash Equivalents** _p46_ ## _Your support for the Navigators can help us change lives_ **‘… through us your generosity will result in thanksgiving to God’ (2 Cor 9:11).** The Navigators UK Ltd is a charity registered in www.navigators.co.uk 54 The Avenue England and Wales (1099148) and Scotland info@navigators.co.uk Southampton (SC038484) and is a company limited by 023 8055 8800 SO17 1XQ guarantee registered in England and Wales