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2020-09-30-accounts

DIRECTORS REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020

INET TRUST LIMITED

A company limited by guarantee, not having share capital

UK Registered Company no. 5188360 UK Registered Charity no. 1105670

1

INET TRUST LIMITED

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Contents Page
Company Information 3
Report of the Directors 4
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10
Independent Examiner’s report 16

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INET TRUST LIMITED

COMPANY INFORMATION

Status INET TRUST LIMITED is a company limited by guarantee Directors Alison Allen Samuel P Corry Verena Forster (appointed 3[rd] December 2020) Nicola Harris (appointed 25[th] January 2021) Lewis Jackson (resigned 10th November 2019) Stephen Francis Nash Paul James Piper Fiona Putley (resigned 13th April 2020) Stephen John Russell-Smith Secretary Paul James Piper Registered office 17 Sydenham Road Sydenham LONDON SE26 5EX Principal office 17 Sydenham Road Sydenham LONDON SE26 5EX Registered Company No. 5188360 Registered Charity No. 1105670 Bankers HSBC 141 High Street Beckenham, KENT BR3 1BX

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INET TRUST LIMITED

REPORT OF THE DIRECTORS

The directors present their report and the financial statements for the period ended 30 September 2020.

PRINCIPAL ACTIVITY

iNet Trust Limited (“iNet”) supports local churches in global mission. Its mission is to work with churches and their cross-cultural workers (CCWs) to ensure that churches ‘do mission well’ and that workers feel secure in the care and expertise of their sending organisation, which is the local church. iNet uses its expertise and resources to ensure that:

ADMINISTRATIVE INFORMATION

Charitable objectives

iNet is governed by its Memorandum and Articles of Association. The charity’s objects are:

  1. To promote and advance the Christian Faith throughout the world generally including by the worship of God, the instruction and edification of Christians, the care and Christian instruction of young people and children and the evangelisation of non-Christians.

  2. To relieve poverty, hardship, sickness and distress among all peoples of the world.

  3. To promote education and training.

  4. To support such other charities and charitable purposes as the trustees shall decide.

Structure, governance and management

The ‘owners’ or ‘members’ of iNet, i.e. churches whose trusts have subscribed to the iNet Guarantee, regularly participate in consultations, both formal and informal, regarding the broader aims and objectives of the charity. They also receive the Directors Report annually at the AGM.

The Board of Directors who act as trustees of the charity are appointed by the members. They are responsible for the overall strategy and management of the charity and they delegate certain responsibilities to an operating team. The major risks to which the charity is exposed, as identified by the trustees, are reviewed from time to time and, if considered appropriate, systems or procedures are established to manage those risks

The operating team who are responsible for the day to day operations of the charity consist of a small group of part time paid staff and volunteers. Paid staff consist of

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two Member Care Officers and an Office Administrator. A number of volunteers (some of whom are Directors), support the team, including a number who were previously CCWs.

REVIEW OF THE YEAR

iNet provided support and assistance for the benefit of our member and other churches and their CCWs who have opted to receive that support, direction and assistance from the charity. The charity’s activities for the past year have included the following:

Regarding churches’ cross cultural workers

During the year iNet and its member churches supported over 40 CCWs and their children in 15 countries outside the UK. One new worker was prepared through the launch pad process and is now serving overseas. iNet also supported the children of CCWs studying in the UK.

Due to the Covid19 pandemic a number of CCWs returned to the UK while others have remained in country due to travel restrictions. The team have used video conferencing to maintain contact and provide support to CCWs both overseas and in the UK. The summer conference was held online due to the restrictions on social distancing.

Regarding churches

Three gap year students experienced cross cultural mission overseas during the year. One two day house party was held for those contemplating cross cultural mission.

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Due to Covid19, many meetings have been held utilising video conferencing in the second half of the year. This included an event for youth held on Zoom.

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Other activities

The trustees have complied with the duty imposed by Section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission in December 2008.

FUTURE PLANS

While the covid19 epidemic has impacted the charity financially and operationally, the charity plans to continue its activities in the forthcoming years. Training and meetings have been adapted to being held online with increased support utilising video conferencing to support CCWs. It is planned that iNet will continue to provide its support and services to CCWs and churches. It will actively seek new member churches and church networks.

Specific plans for the forthcoming year include:

FINANCIAL REVIEW

The Directors are grateful to the member churches and individuals for their continued financial support throughout the period and for their willingness to participate in this tangible way in the extension of God’s kingdom around the world.

During the year under review to 30[th] September 2020 total income increased by £32,034 to £106,818. This was due to raising finance for the emergency evacuation of a CCW taken ill overseas, increased donations for CCWs and a legacy received from the estate of Kathy McGuire for the Youth Bursary Fund. This was partially offset by significantly lower conference income due to Covid19. Total expenditure increased by £29,659 to £100,512 due to the cost of repatriating the CCW taken ill and higher grants to CCWs. There was considerable savings from the conference

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moving online as well as a five month rental holiday granted by our landlord due to not using the building during the “lockdown” period.

Overall, there was a surplus of £4,850 for the year prior to transfers between funds. This is attributable to a surplus of £1,728 on the general fund and a surplus of 4,850.

RESERVES POLICY

The trustees have reviewed the reserves policy and concluded that it is appropriate to maintain cash reserves equal to three months general expenses, approximately £12,500 if the costs of the summer conference is included. At the end of the financial year the general fund stood at £31,954.

GRANT MAKING POLICY

iNet operates a small Youth Bursary Fund from which grants may be made from time to time to young people from member churches to assist them to explore overseas mission work opportunities.

RISK MANAGEMENT

The Trustees have conducted their own review of the major risks to which the charity is exposed and systems designed to mitigate those risks. All major insurable risks are subject to commercially available charities and employers insurance. The most significant risk is considered to be a significant shortfall in donations from member churches which is mitigated by the reserving policy. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These procedures are reviewed periodically to ensure that they still meet the needs of the charity.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The law applicable to charities in England and Wales requires the directors to prepare accounts for each financial year which give a true and fair view of the company’s financial activities during the year and of the income and expenditure and financial position of the company as at the end of that period. In preparing these accounts, the directors are required to:-

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the accounts comply with the Companies Act 2006 and the Charities Act 1993. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors confirm that the accounts comply with current statutory requirements and those of the company’s governing documents

Approved by the directors on 22[nd] June 2021 and signed on its behalf by

Paul Piper Director

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INET TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30[TH] SEPTEMBER 2020

Note Unrestricted
Designated
Restricted		 2020
Total
2019
Total
Incoming Resources
Donations and Legacies
Income from Charitable Activities
Investments
Total Incoming Resources
Resources Expended
Charitable Activities
Net Incoming (Outgoing) Resources for
the Year Prior to Transfers
Gross transfers between funds - in
Gross transfers between funds - out
Net Incoming (Outgoing)
Resources for the Year
Total funds brought forward
Total funds carried forward		 3
4
5		 34,862
-
71,015
225
-
705
11
-
-		 105,877
57,988
930
16,780
11
16
35,098
-
71,720		 106,818
74,784
33,642
-
66,870		 100,512
70,853
1,456
-
4,850		 6,306
3,931
1,728
-
-
-
(1,728)
-		 1,728
2,864
(1,728)
(2,864)
3,184
(1,728)
4,850		 6,306
3,931
28,770
5,409
1,457
31,954
3,681
6,307		 35,636
31,705
41,942
35,636

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INET TRUST LIMITED

BALANCE SHEET AS AT 30[th] SEPTEMBER 2020

£
 2020 2019
Notes
Fixed Assets
Cash at bank and in hand
Debtors
7
Total Current assets
Creditors
8
Total Liabilities
Net Asset
Represented by funds
Unrestricted
Designated
Restricted
Total		 -
-
36,040
30,131
6,568
7,139
42,608
37,270
666
1,634
666
1,634
41,942
35,636
31,954
28,770
3,681
5,409
6,307
1,457
41,942
35,636

For the year ended 30[th] September 2020, the company was entitled to the exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.

Responsibilities of trustees:

These accounts are prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the board of Trustees on the 22[nd] June 2021 and signed on its behalf by:

P J Piper Trustee

Company number: 5188360 Charity number: 1105670

The notes on pages 10 to 15 form part of these accounts.

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INET TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2020

1. STATUTORY INFORMATION

2. ACCOUNTING POLICIES

These financial statements are prepared on a going concern basis, under the historical cost convention.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

a. Going Concern

The accounts have been prepared on the going concern basis, as there are no material uncertainties about the charity’s ability to continue. Based on the adequacy of the charity’s reserves as at the balance sheet date, along with their knowledge of the charity’s ability to meet bills, payments and other liabilities as they fall due, the directors have a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future. In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.

b. Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes:

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from the summer conference and other events and courses.

c. Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

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The cost of raising funds is not significant and has not been separately disclosed.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d. 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. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

e. Tangible Fixed Assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f. Pension Scheme Arrangements

The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds. For CCWs, payments are received from churches and CCWs and paid into an International Retirement Benefit Plan. Expenditure is accounted in the Statement of Financial Activities in the period to which it relates.

g. Taxation

The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

h. Financial Instruments

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).

i. Exemption from Preparing a Cashflow Statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

j. Critical Accounting Estimates and Areas of Judgement

The trustees do not consider that there any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

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3. DONATIONS AND LEGACIES

Donations and legacies comprise donations from member churches, individuals and from other charities. These are shown below:

£ 2020
Total
2019
Total
Individuals
Legacy
Member Churches
Non-Member Churches
Charities
Other Organisations
Total		 43,005
11,818
5,000
-
29,574
28,824
14,719
12,633
9,959
4,313
3,620
400
105,877
57,988

4. INCOME FROM CHARITABLE ACTIVITIES

£ 2020
Total
2019
Total
Received from CCWs
Conference Fees
Events and Trips
Sales
Total		 705
700
-
15,646
225
340
-
94
930
16,780

Received from CCWs represents payments from CCWs to the Global Connections International Retirement Annuity Plan and the Banner Insurance Life Insurance scheme. Conference fees comprise the payment for attendance at the CCWs’ summer conference. Events and trips in the year comprise the fees received for Going Global.

5. CHARITABLE ACTIVITIES

£ 2020
Total
2019
Total
CCWs
Church & Networks
Marketing & Communications
Conference and Seminars
Office
Independent Examination Costs
Total		 75,383
25,858
9,416
9,328
947
1,235
810
18,243
13,806
16,039
150
150
100,512
70,853

CCWs represents the costs associated with the care of CCWs, payments to the CCW Retirement Plan and payments of gifts received.

Church and Networks comprise the costs of supporting churches in the sending, caring and reentry of their CCWs together with advising churches in the sending of short term teams as well as the costs of trips arranged by the charity.

Marketing and Communications represents the cost of the charity’s website and the marketing of the charity’s services to churches and networks.

Conference and seminar costs comprise the direct costs of the annual CCW summer conference and other seminars held by the charity.

Office includes the costs associated with the administration of the charity including insurance and safeguarding.

There were no other fees payable to the independent examiner Mr Gordon Cowie other than for the independent examination of the accounts.

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6. ANALYSIS OF STAFF COSTS, THE COST OF KEY MANAGEMENT AND TRUSTEE REMUNERATION AND EXPENSES

The number of employees at the end of the year was three (all part time). One member of staff is seconded from a member church one day per week.

£ 2020
2019
Gross Pay
Pension costs (employer’s contribution)
Social security costs (refund of Statutory Maternity
Pay)
Total		 26,514
31,696
1,076
960
-
(4,352)
27,590
28,304

No staff received salaries at a rate of more than £60,000 per annum.

One member of staff is seconded from a member church.

The company operates a defined contribution scheme for certain of its employees. Pension premiums are charged as they are paid.

The average monthly number of employees during the year was 3 (2019:3). Approximately, half of the charity’s activities are carried out by volunteers.

No director received remuneration or reimbursed personal expenses during the year. The wife of a trustee, Samuel Corry is employed and continues to be employed by iNet.

7. DEBTORS

£ 2020
2019
HMRC - Recovery of Statutory Maternity Pay
HMRC – Gift Aid
Conference Prepayment
Insurance Prepayments
Other
Total		 4,629
5,251
124
1,590
1,512
-
259
258
44
40
6,568
7,139

The deposit paid for the summer conference moved online due to Covid19 has been rolled over to 2021.

8. CREDITORS

£ 2020
2019
Accounting costs
Short Term Mission Payments
Other creditors
Total		 300
150
40
334
326
1,000
666
1,634

9. PENSION COMMITTMENTS

During the year employer’s pension contributions totalling £1,076 (2018: £960) were payable to defined contribution personal pension schemes. No pension contributions were owing at the balance sheet date (2019: £nil).

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10. FUNDS

2020

Fund
£		 Balance at
1/10/19
Incoming
Resources
Outgoing
Resources
Transfers		 Balance at
30/9/20
CCW Conference Fund
CCW Donations
CCW Pension Payments
CCW Repatriation Fund
Youth Bursary Fund
Short Term Overseas Trips
Total Restricted Funds
General
Donations - Designated
MD - Designated
Total Unrestricted Funds
Total Funds		 13
250
250
-
-
18,869
18619
-
-
700
700
-
-
46,901
46,901
-
1,444
5,000
400
-
-
-
-
-
1,457
71,720
66,870
-
28,770
35,098
33,642
1,728
4,890
-
-
(1,728)
519
-
-
-
34,179
35,098
33,642
-		 13
250
-
6,044
--
6,307
31,954
3,162
519
35,635
35,636
106,818
100,512
-		 41,942
£ General Designated Restricted Total Analysis of net
assets
Funds Funds Funds Funds between funds.
Debtors 6,464 - 104 6,568
Cash at Bank 26,116 3,681 6,243 36,040
Creditors (626) - (40) (666)
Total 31,954 3,681 6,307 41,942

2019

Fund
£		 Balance at
1/10/18
Incoming
Resources
Outgoing
Resources
Transfers		 Balance at
30/9/19
CCW Conference Fund
CCW Donations
CCW Pension Payments
Youth Bursary Fund
Short Term Overseas Trips
Other
Total Restricted Funds
General
Donations - Designated
MD - Designated
Total Unrestricted Funds
Total Funds		 -
2,683
2,670
-
516
16,083
16,599
-
-
700
700
-
1,644
-
200
-
-
-
-
-
70
-
70
-
2,230
19,466
20,239
-
28,956
49,564
50,614
864
-
5,754
-
(864)
519
-
-
-
29,475
55,318
50,614
-		 13
-
-
1,444
-
-
1,457

28,770
4,890
519
34,179
31,705
74,784
70,853
-		 35,636

Analysis of net assets between funds

General Designated Restricted Total
Funds Funds Funds Funds
Debtors 5,939 1,037 163 7,139
Cash at Bank 24,131 4,372 1628 30,131
Creditors (1,300) - (334) (1,634)
Total 28,770 5,409 1,457 35,636

Conference Fund

This fund was set up to receive gifts to contribute to the costs of CCWs attending the conference, and to receive donations for the running of the conference.

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CCWs Donations

These are gifts given for individual CCWs or their work; either for general or specific needs, and are paid on to the CCW concerned.

CCW Pension Payments

This fund was set up to receive payments from individual churches and CCWs to pay into a retirement plan administered by Global Connections with funds placed with Zurich International .

CCW Repatriation Fund

A fund set up following an appeal to enable the repatriation of a CCW taken ill overseas during the coronavirus crisis. The surplus over and above the cost of repatriation was paid to the CCW concerned for their ministry.

Youth Bursary Fund

These are gifts received from churches and individuals to be used to help fund young people travelling overseas to participate in cross cultural mission work.

Short Term Overseas Trips

The receipt and payment of funds for the arrangement of trips overseas for members of iNet churches to experience cross cultural mission.

MD

A designated fund from donations received to be used towards summer conference costs.

Donations

A designated fund resulting from a large donation to be released over three years.

11. TRANSACTIONS WITH RELATED PARTIES

During the year the charity received donations totalling £3,600 (2019: £1,020) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

During the year the charity also made the following payments to one related party, Melissa Corry, who is closely related to Sam Corry, who is a trustee. Melissa received employment benefits totalling £8,640 (2019: £3,314) for providing administrative services to the charity.

12. MEMBERS

Each member of the company commits to contribute if the charity is wound up an amount of £1.

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

General General Designated Designated Restricted Restricted Total Total
Note 2020 2019 2020 2019 2020 2019 2020 2019
Incoming resources from
generated funds
Donations and Legacies 3 34,862 33,518 - 5,754 71,015 18,716 105,877 57,988
Charitable Activities 4 225 16,030 - - 705 750 930 16,780
Investment Income 11 16 - - - - 11 16
Total Income 35,098 49,564 - 5,754 71,720 19,466 196,817 74,784
Resources Expended
Charitable Activities 5 33,642 50,614 - - 66,870 20,239 100,512 70,853
Net Incoming Resources for
the Year		 1,456 (1,050) - 5,754 4,850 (773) 6,306 6,927
Transfers 1,728 864 (1,728) (864) - - - -
Reconciliation of Funds
Total Funds Brought Forward 28,770 28,956 5,409 519 1,457 2,230 35,636 24,778
Total Funds Carried Forward 31,954 28,770 3,681 5,409 6,307 1,457 41,942 31,705

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF INET TRUST LIMITED

I have examined the accounts for the year ended 30th September 2020 on pages 8 to 15 following which have been prepared on the basis of the accounting policies set out on page 10.

Respective responsibilities of the Directors/Trustees and Examiner

The directors/trustees of the company are responsible for the preparation of accounts; they consider that the audit requirements under Section 144 of the Charities Act 2011 do not apply but that an independent examination is needed. I have been appointed to conduct an Independent Examination required by Section 145 of the Charities Act, 2011 and to report in accordance with the regulations made under Section 145 of that Act. It is my responsibility to examine the accounts, without performing an audit, and to report to the trustees.

Having satisfied myself that the company is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

(1) examine the accounts under Section 145 of the Charities Act 2011;

(2) follow the procedures laid down in the general Directions given by the Charity Commission under Section 145(5)(b) of the Charities Act 2011;

(3) state whether particular matters have come to my attention.

Basis of Examiner’s Statement

This report is in respect of an examination carried out under Section 145 of the Charities Act 2011, and in accordance with the general directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity, and a comparison of the accounts presented with those records. It also includes a review of the accounts and making such enquiries as are necessary for the purpose of this report. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Examiner’s Statement

In my opinion:-

Based on my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respect, accounting records have not been kept in accordance with section 386 of the Companies Act 2006, or that the accounts presented do not accord with those records, or comply with the accounting requirements of section 396 of the Companies Act 2006. No matter has come to my notice in connection with my examination to which, in my opinion, attention should be drawn to enable a proper understanding of the accounts.

Gordon Cowie

Address: 134 Foxberry Road, London SE4 2SH

Date: 22[nd] June 2021

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