The Christopher Shoemaker Christian Centre (A company limited by guarantee)
Report and Financial Statements
Year ended: 31 January 2021
Charity no: 1099942 Company no: 04869811
| Contents | Page |
|---|---|
| Legal and Administrative Information | 1 |
| Report of the Trustees | 2 |
| Consolidated Statement of Financial Activities | 5 |
| Consolidated and Charity Balance Sheets | 6 |
| Notes forming part of the Financial Statements | 7 |
| Independent Examiner’s Report | 12 |
Legal and administrative information
Trustees
Christa McCormick Julian Gadsby Tony Pullin (Appointed 21 September 2020) Val Whorton Jill Wilson Maureen Whitworth (Resigned 16 October 2020)
Shop Manager Steve Wood
Registered Office
The Arcade, Market Place, Newbury, Berkshire RG14 4AD
Bankers National Westminster Bank, 20 Market Place, Newbury RG14 5BD
Independent Examiner
Emma Thomas ACA FCCA CTA
Registered Office: The Rectory, 1 Toomers Wharf, Canal Walk, Newbury. Berkshire. RG14 1DY.
Page 1
Report of the Trustees
For the period ended 31 January 2021
containing a directors’ report as required by company law
Objectives and Activities
The charity was set up on 18 August 2003 as a charitable company limited by guarantee and is governed by a memorandum and articles of association. Its objects are to advance the Christian faith in accordance with its Statement of Beliefs, to relieve persons who are in conditions of need or hardship or who are aged or sick and to relieve the distress caused thereby, to provide facilities for recreational and other leisure-time occupation in the interests of social welfare for persons who have need by reason of their youth, poverty, or social and economic circumstances and with the object of improving their conditions of life.
Two mechanisms were identified where the charity could achieve these objectives in Newbury:
-
The provision of a Christian bookshop; and
-
The operation of a coffee shop.
To this aim the charity took occupation of the present shop on 23[rd] December 2003 and through the magnificent efforts of teams of volunteers the shop was opened on 17[th] January 2004. A full-time manager has responsibility over the day-to-day running of the shop and the implementation of the trustees’ policies, otherwise the charity is being staffed by volunteers.
Achievements and Performance
2020 has been the most challenging year in the life of the Christian Book and Coffee shop due to the Covid epidemic resulting in an extended closure of the facility. Our normal effort to supply the Christian Community in Newbury and surrounding area with Christian literature and advising churches and individuals in their search for suitable resources was severely hampered.
From 23rd March 2020 to the 15th June 2020 the charity was completely closed and our paid manager furloughed. We were grateful for Government grants and donations to survive this difficult period. From June onwards we were able to operate our website and operate a click and collect system as well as take telephone orders and dispatching stock until we were able to open up again. We were pleased to see an increased use of the website, although the footfall in the Bookshop itself remained low. Due to the closure of the churches for most of the year, we were unable to hold our usual bookstalls and promotions of the charity. However, during this time we concentrated on constructing a completely new website - a process which continued well into 2021. We also attempted to stay in touch with our individual clients on social media and promote the charity as well as providing vital information on our progress.
The Coffee shop, which normally supports our Book shop financially, as well as providing a valuable service in the community, remained closed even when Covid regulations allowed cafes to open. We simply had no volunteers to run it and also lacked the space for social distancing. We are continuing to work on a solution to this problem.
Although this year has been the most difficult in the history of our Bookshop we are grateful to our ‘Friends of Shoemakers’ and the Churches in the Newbury area for their continuing support of this charity.
Financial Review
These financial statements cover the fifteenth trading period to 31 January 2021.
Page 2
Bookshop sales for this period were £24,874, (2020 £46,982).
The overall result for the year was a net income of £15,571 compared with a net income in the previous year of £7,298
The coffee shop, Christopher Shoemaker Ltd, which for many people is the presence of Shoemakers in Newbury, produced sales of £2,018 (2020 £11,677). Its profits are donated fully to the Charity (see ‘Fundraising’ below). We have continued our marketing effort over the year to advertise the coffee shop to the general public through events and social media and the conversion to a fully gluten-free menu. Government grants of £22,831 (2020 £0) relating to the Covid disruptions were received.
At the end of January 2021, the charity’s financial position showed an increase in general funds, which amounted to £39,476 (2020 £23,905)
Investment policy and returns
The charity’s funds are used as working capital and no investments have been made.
Fund-raising
The charity raised £23,746 (2020 £15,689) in the period and the charity thanks all its supporters for their work and generosity. We thank, in particular, those supporters who donate regularly through standing orders. This fundraising includes the donation of £790 (2020 £6,156) from the coffee shop operation.
The fundraising activities organised by Shoemakers supporters continue to be well supported and provide enjoyable evenings such as an International evening, a coffee morning and a number of Author evenings with book signings. As always, we give our thanks to those who have worked so hard to make those events successful.
Relationship with other organisations
The charity is a member of ‘Christians Together in the Newbury Area’ (CTNA) and the Trustees regularly meet with other members. The charity is grateful for the encouragement and support given to it by CTNA, and that from the local churches.
Reserves
The Trustees have reviewed the reserves of the charity. All of the funds are unrestricted and the directors feel that, given the economies referred to above, they are adequate to meet the working capital needs of the charity.
Risk Review
The Trustees have conducted a review of the major risks to which the charity is exposed and systems have been established to mitigate those risks.
Structure, Governance and Management
The Trustees are the directors of the company. One third of the trustees retire by rotation at each Annual General Meeting. Trustees are recruited through word of mouth and personal recommendation and are selected to provide a diversity of skills, age, sex, race and background. An induction programme for new Trustees provides the key information they need to play their part in the management of Shoemakers.
The Trustees have overall responsibility for ensuring that the charity has appropriate systems of controls, financial and otherwise. They are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006 and subsequent Regulations. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable
Page 3
steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:
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the charity is operating efficiently and effectively;
-
its assets are safeguarded against unauthorised use or disposition;
-
proper records are maintained and financial information used within the charity or for publication is reliable;
-
the charity complies with relevant laws and regulations.
Trustees meet monthly and make daily monitoring visits to the shop.
Volunteers
The charity is grateful for the wonderful efforts of its volunteers who help in the shop. It is estimated that over 162 volunteer hours were provided during the year. If this is valued at £8.72 an hour the volunteer effort amounts to over £1,412. The shop manager ensures that best value is derived from the sterling efforts of our volunteers.
Employee involvement and employment of the disabled
Employees have been consulted on issues of concern to them by means of regular staff meetings and have been kept informed on specific matters directly by the shop manager.
This report was approved by the Board on the 22nd October 2021
C McCormick (Trustee)
Page 4
Consolidated Statement of Financial Activities (incorporating an Income and Expenditure Account) for the year ended 31 January 2021
Notes
| Total | |||
|---|---|---|---|
| Funds | |||
| (Unrestricted) | |||
| 2021 | 2020 | ||
| £ | £ | ||
| Incoming resources | |||
| Donations and gifts | 2 | 22,957 | 9,533 |
| Activities for generating funds: | |||
| Bookshop | 47,705 | 46,982 | |
| Coffee shop | 2,018 | 11,677 | |
| Bank Interest | 4 | 7 | 13 |
| Total incoming resources | 72,687 | 68,205 | |
| Resources expended | |||
| Charitable expenditure: | |||
| Costs of activities in furtherance of the charity’s objects: | |||
| Operation of the bookshop | 55,887 | 69,983 | |
| Operation of the coffee shop | 1,229 | 5,521 | |
| Total resources expended | 57,116 | 75,504 | |
| Net movement in funds | 15,571 | (7,299) | |
| Fund brought forward at 1 February | 23,905 | 31,204 | |
| Fund balances carried forward at 31 January | 13 | 39,476 | 23,905 |
All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. Page 10 gives details of changes in resources applied for fixed assets for charity use.
Page 5
Consolidated and Charity Balance Sheets as at 31 January 2021
| Group | Charity | Group | Charity | ||
|---|---|---|---|---|---|
| Notes | 2021 | 2020 | |||
| £ | £ | £ | £ | ||
| Fixed assets | |||||
| Tangible assets | 7 | - | - | 129 | 129 |
| Investments | 8 | - | 1 | - | 1 |
| - | 1 | 129 | 130 | ||
| Current assets | |||||
| Stocks | 15,615 | 15,615 | 18,017 | 18,017 | |
| Debtors | 9 | 4,392 | 4,392 | 4,383 | 4,383 |
| Cash at bank and in hand | 37,026 | 37,025 | 11,439 | 10,133 | |
| 57,033 | 57,032 | 33,839 | 32,533 | ||
| Creditors: Amounts falling due within | Creditors: Amounts falling due within | ||||
| one year | 10 | (17,557) | (17,557) | (10,063) | (10,063) (8,758) |
| Net current assets | 39,476 | 39,475 | 23,776 | 23,775 | |
| Total assets less current liabilities | Total assets less current liabilities | 39,476 | 39,476 | 23,905 | 23,905 |
| Net assets | 39,476 | 39,476 | 23,905 | 23,905 | |
| Funds: | |||||
| General funds (Unrestricted) | 13 | 39,476 | 39,476 | 23,905 | 23,905 |
The financial statements on pages 4 to 12 were approved by the Trustees on 22nd October 2021and signed on their behalf by:
C McCormick (Trustee)
Company no: 04869811
Page 6
Notes forming part of the financial statements for the year ended 31 January 2021
1. Accounting policies
(a) Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the Charities SORP (FRS 102) together with relevant Update Bulletins and applicable accounting standards.
The statement of financial activities (SoFA) and balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line-by-line basis.
The charity has availed itself of Paragraph 3 (3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities. No separate SoFA has been presented for the charity alone as permitted by Section 408 of the Companies Act 2006.
(b) Company status
The charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
(c) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Investment income and gains are allocated to the general funds.
(d) Incoming resources
All incoming resources are included in the SoFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
(e) Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources. Premises overheads have been allocated on a floor area basis and payroll administration costs have been allocated on the basis of payroll cost.
Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
(f) Tangible fixed assets and depreciation
Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition.
Page 7
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:
Shop fittings over 10 years Office equipment over 10 years Shop equipment over 10 years Computer equipment over 10 years
(g) Stock
Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Items donated for resale are not included in the financial statements until they are sold or distributed.
(h) Finance and operating leases
Rentals applicable to operating leases are charged to the SoFA over the period in which the cost is incurred. Assets purchased under finance lease are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charges. Finance charges are written-off to the SoFA over the period of the lease so as to produce a constant periodic rate of charge.
2. Donations and gifts
Donations and gifts excluding the donation of £790 (2020 £6,156) received from the trading subsidiary:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Individuals & Churches | 22,957 | 9,533 |
Page 8
3. Fundraising Trading income and costs
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|Coffee shop|Coffee shop|
|sales through|sales through|
|Christopher|Christopher|
|Bookshop Shoemaker|Bookshop|Shoemaker|
|sales|Ltd|Total|sales|Ltd|Total|
|(see note 14)|(see note 14)|
|2021|2020|
|£|£|£|£|£|£|
|Fundraising Trading: income|47,705|2,018|49,723|46,982|11,677|58,659|
|Fundraising Trading:|
|costs of goods sold and other costs|53,482|1,228|54,710|67,601|4,577|72,178|
|Administrative expenses|2,405|-|2,405|2,382|944|3,326|
|Deficit/Surplus|(8,182)|790|(7,392)|(23,001)|6,156|(16,845)|
----- End of picture text -----
Fundraising trading income and costs include trading between the Charity and its subsidiary.
----- Start of picture text -----
||||
|---|---|---|
|Administration Expenses include:|2021|2020|
|£|£|
|Reporting Accountants’ remuneration:|
|Fee for external scrutiny|200|200|
|Other services|0|0|
|4.|Other Income|
|2021|2020|
|£|£|
|Government Grants|23,832|13|
|Bank Interest|7|13|
----- End of picture text -----
5. Trustees’ remuneration
The trustees neither received nor waived any emoluments during the year (2020: £Nil).
6. Staff costs
----- Start of picture text -----
||||
|---|---|---|
|2021|2020|
|£|
|Wages and salaries|22,078|22,822|
|Social security costs|0|
|22,078|22,822|
----- End of picture text -----
There were no employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year (2020 none)
The average number of employees, calculated on a full-time equivalent basis, analysed by function was:
----- Start of picture text -----
||||
|---|---|---|
|2021|2020|
|Number|
|Fundraising|0|0|
|Charitable Activities|1|1|
----- End of picture text -----
Page 9
7. Tangible fixed assets
| Bookshop Coffeeshop Computer | Bookshop Coffeeshop Computer | Bookshop Coffeeshop Computer | ||
|---|---|---|---|---|
| fittings | fittings | equipment | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| At 31 February 2020 | 4,325 | 8,638 | 4,401 |
17,364 |
| Disposals | - | - | - | - |
| At 31 January 2021 | 4,325 | 8,638 | 4,401 |
17,364 |
| Depreciation | ||||
| At 1 February 2020 | 4,325 | 8,509 | 4,401 |
17,235 |
| Disposals | - | - | - | - |
| Charge for the year | - | 129 | - | 129 |
| At 31 January 2021 | 4,325 | 8,638 | 4,401 |
17,364 |
| Net book value at 31 January 2021 | - | - | - | - |
Capital expenditure contracted for, but not provided in the financial statements was £nil. (2020 £nil)
8. Fixed asset investments
Investments held by the charity consist of a £1 investment in the subsidiary company at cost (see note 14).
9. Debtors
| Group | Charity | Group | Charity | |
|---|---|---|---|---|
| 2021 | 2021 | 2020 | 2020 | |
| £ | £ | £ | £ | |
| Trade debtors | 201 | 201 | 1,662 | 1,662 |
| Other debtors | 3,620 | 3,620 | 821 | 821 |
| Prepayments and other accrued income | 571 | 571 | 1,900 | 1,900 |
| Amount owed by subsidiary | - | - | - | - |
| 4,392 | 4,392 | 4,383 | 4,383 |
10. Creditors: amounts falling due within one year
| Group | Charity | Group | Charity | |
|---|---|---|---|---|
| 2021 | 2021 | 2020 | 2020 | |
| £ | £ | £ | £ | |
| Trade creditors | 10,427 | 10,427 | 8,024 | 6,696 |
| Taxation and social security costs | 362 | 362 | 22 | 22 |
| Other creditors | - | - | - | - |
| Accruals and deferred income | 6,768 | 6,768 | 2,017 | 2,017 |
| Amount owed to subsidiary | - | - | - | - |
| 17,557 | 17,557 | 10,063 | 8,735 |
Creditors: amounts falling due after more than one year
There are no amounts falling due after more than one year.
Page 10
11. Obligations under finance leases
There are no obligations under finance leases.
12. Financial commitments
There is an annual commitment for the lease (incl service charge) of the shop premises of £10,117 (2020 £10,117).
13. Movement of funds
| At 31 Jan | At 31 Jan | Incoming | Outgoing | At 31 Jan | |
|---|---|---|---|---|---|
| 2020 | resources | resources | 2021 | ||
| £ | £ | £ | |||
| General Reserve | 23,905 | 72,687 | 57,116 | 39,476 |
The General Reserve represents the free funds of the charity.
14. Subsidiary company
The charity owns the whole of the Issued ordinary share capital of Christopher Shoemaker Ltd, a company registered in England. The subsidiary is used for non-primary purpose trading activities, namely the operation of the coffee shop retail business. All activities have been consolidated on a line-by-line basis in the SoFA. The total net profit is gifted to the charity. A summary of the results of the subsidiary is shown below:
| Christopher Shoemaker Ltd | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Turnover | 2,018 | 11,677 |
| Cost of sales | 1,228 | 4,577 |
| Gross profit | 790 | 7,100 |
| Administrative expenses | - | 944 |
| Net Trading Profit (Fully donated to the parent company) | 790 | 6,156 |
| The aggregate of the assets, liabilities and funds was: | ||
| Assets | 1 | 1,328 |
| Liabilities | - | (1,327) |
| Funds (representing 1 ordinary share of £1) | 1 | 1 |
Page 11
INDEPEP4DENT EX.4MINER'S REPORT TO THE TRLISTF.E% OF THE CHRISTOPFIER SHOENI.4KER CHRISTIA) CENTRF. I report ¢)n the accounts for the vear ended 31 January 2021 set out on pages one to eleven. Respective responsibilities of trustees 8Dd examiner The charii%'s trustees Iwho ate a150 the directors for the PUTposes of company law) are responsible for the prepardiion of the aceounis. The charity'5 trusttts consider that on audÉi is noi required for ihis year {und¢r Seciion 144{2) of the Chariiies Aci 2011 (the 2011 Act}1 and that an independeni exaMIn70n is required. Having satisfied myself that the ¢hariry' is noi subjeci to audit under company law and is eligible for independent examination. it 15 my respS]bilIty. lO_' examine the accounts nder Se¢iion 145 of the 2011 Aci to follow the pr(K¢dures laid doM"n in the General Directions given by the Charity Commission (under Section 14515Kb} of the ?0 I l Aci): and to stale whether particular matter5 have come lo my attention. Basis of the independent eiminer'5 report My examination wa5 carried out in accordance with the General Directions given bN' the Chariry Commi55ion. An examination includes a rel'ie of the accounling record5 kept by the charity and a compa¥i50n of the accounts presenied with those records. It also include5 consid¢rarion of any unusual items or disclosure5 in the account& and seeking explanations from N'ou trust¢es concerning any such matters. The procedures undertaken do noi provide all the evidence thai would be required in an audiL and consequently no opinion is given as to whether the accounts present a Irue and fair view ' and the report is limited to those matters set out in the stsiements below. Independent exarniner's slatement In connection wilh m) examinaiion. no matter come to my attention= Which 8ive5 m¢ reasonable cause io believe that. in any marial respe the requirem¢nts to keep accounting records in accordance with Section 386 and 387 of the Companies Act )006: and to prepare accounts which accord with the accounting record& comply with the accounting requirernents of Seciions 394 and 39) of the Cotnpanies Act 2006 and with the methods and principles of ihe Statement of Recommended Practice." Accounting and Rewning by Charities have not been mei.. to which. in my opinion. attention should be drawn ift order to enable a proper understanding of the acci)unts to be reached. Emma omas ACA FCCA CTA Jeibc Regi51ered oifice.. The Rectory, l Toomers Wharf. caTr Walk. Newbury. Berkshire. RG14 IDY. Date.. Page 12