## **Teachers’ Enterprise in Religious Education** ## **Annual Report and Financial Statements** ## 31 August 2022 Company Registration Number 06035087 (England and Wales) Charity Registration Number 1117900 ## **Contents** ## **Reports** |Reference and administrative information|1| |---|---| |Trustees’ report|2| |Independent examiner’s report|9| |**Financial Statements**|| |Statement of financial activities|10| |Balance sheet|11| |Statement of cash flows|12| |Principal accounting policies|13| |Notes to the financial statements|17| Teachers’ Enterprise in Religious Education **Reference and administrative information** |**Trustees**|G A Cooney| |---|---| ||B McArdle| ||K McSharry (Chair)| ||W M O’Rourke| ||M A Ruane| |**Secretary**|G A Cooney| |**Registered office**|40 Duncan Terrace| ||Islington| ||London| ||N1 8AL| |**Company registration number**|06035087 (England and Wales)| |**Charity registration number**|1117900| |**Independent examiner**|Amanda Francis| ||Buzzacott LLP| ||130 Wood Street| ||London| ||EC2V 6DL| |**Principal bankers**|Royal Bank of Scotland plc| ||40 Islington High Street| ||London| ||N1 8XB| ||Metro Bank plc| ||One Southampton Row| ||London| ||WC1B 5HA| |**Investment managers**|CCLA Investment Management Limited| ||Senator House| ||85 Queen Victoria Street| ||London| ||EC4V 4ET| |**Solicitors**|Stone King LLP| ||Upper Borough Court| ||Upper Borough Walls| ||Bath| ||BA1 1RG| Teachers’ Enterprise in Religious Education **1** **Trustees' report** 31 August 2022 The trustees present their report together with the financial statements of Teachers’ Enterprise in Religious Education (the charitable company) for the year to 31 August 2022. This report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation. The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 16 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). ## **Principal aim and objectives** The principal aim of the charitable company is to support teachers in Catholic schools and in the wider Christian community in their daily task of unfolding for pupils the mystery of God, the teaching of the Church and its application in daily life. The objectives that the trustees have set in order to achieve this aim are as follows: - To promote the teaching of religious education with the same academic rigour as other subjects in the curriculum; - To provide opportunities for teachers to deepen their theological understanding of the Christian Faith and its application to daily life; - To create a rich variety of resources, for example, textbooks, website with online interactive elements for classroom use, CD ROMS, etc. ## **Public benefit** In setting the charitable company’s objectives and planning its activities the trustees have given careful consideration to the Charity Commission’s guidance on public benefit. ## **Review of the year** Looking back over the last twelve months, the first consideration is to see to what extent Teachers’ Enterprise in Religious Education has met its aims and objectives. ## _**Opportunities for teachers to deepen their theological understanding of the Christian faith**_ The variants of COVID-19 continued to have a direct effect on our mission as we were unable to hold face to face meetings. Innovatively, rather than cancel our INSET workshops, we replaced face to face with Zoom meetings for in-service training for teachers. In the autumn term 2021 there were meetings for all primary year groups: Early Years Foundation Stage and Years 1 – 6. In addition, there were two INSETS for school with a high proportion of new teachers who were unfamiliar with _The Way, The Truth & The Life_ Programme (WTL). Telephone support is always available, and several head teachers took advantage of it to seek further support. The Way, The Truth & The Life Programme is now available in digital format. Uptake has been slow as most schools continue to use the printed copies of the WTL Books. Teachers’ Enterprise in Religious Education **2** **Trustees' report** 31 August 2022 ## **Review of the year** (continued) ## _**Opportunities for teachers to deepen their theological understanding of the Christian faith** (continued)_ Teachers continue to express appreciation for the wide range of free resources available for all age groups on our website: www.tere.org ||||| |---|---|---|---| |Reported period|Total Sessions|Total Users|Total page views| |September 2020 – August 2021|13,563|9,859|34,174| |September 2021 – August 2022|12,024|9,180|31,234| ## _**The religious education directory**_ For the last three years, the Catholic Education Service (CES) of the Bishops’ Conference of England and Wales has been developing a new Directory for Religious Education. As one of the leading providers of Religious Education materials, we have been intensively involved in consultation meetings. The process has been long, drawn out and time consuming beyond words. The trustees have been indefatigable in attending numerous two-hour on-line consultations with the CES (Catholic Education Service) Lead on The Curriculum Education Directory. The trustees together with Angela Edwards have given even longer hours drafting suggested changes to each re-draft of the Curriculum Education Directory. Following a consultation with all schools in June 2022, the draft Curriculum Directory has been again re-drafted. Many of the suggestions we have been making are now in the most recent draft copy and it is looking as if the Religious Education Directory may soon be published. There is a tight schedule of three years for resource providers to make available resources for schools. Our plans are to publish a new programme _The Vine & The Branches_ . ## _**Our mission abroad**_ In autumn 2021 we had a visit from the Sisters of St Paul de Chartres in Thailand. They were eager to obtain copies of all our publications of The Way, The Truth & The Life Textbooks and CD/DVD ROMs. They have sixty Catholic schools in Thailand, so they requested permission to adapt our resources for them. Thus, WTL continues to attract a diverse worldwide number of schools eager to use the WTL programme. We have made a donation of £999 to the Nyumbani Mission in Kenya. Sister Mary Owens, Director, wrote to say that it would go towards providing food for the very needy children and the families in their community-based programme, Leo Toto, which endeavours to deliver a rigorous programme of education for the young people whom they support. Each month they must provide maize, beans, oil, and porridge flour for these families. Their economy has not yet recovered since COVID. Additionally, TERE has donated £500 to the Redemptorist mission in war-torn Ukraine. These donations underline TERE’s commitment to evangelisation by supporting Missions in the Developing World and elsewhere in promoting the teaching of Religious Education, directly and indirectly. Teachers’ Enterprise in Religious Education **3** **Trustees' report** 31 August 2022 ## **Future plans** Our plans now are to work on writing a new programme _The Vine & the Branches_ . We hope to be able to have resources ready for publication for Years 1, 2 and 3 in primary schools by July 2023. This will include textbooks for pupils and teachers, Power Point presentations and additional worksheets etc. In addition, in so far as it is possible, we will provide telephone support and in-service training for teachers. ## **Financial review** ## _**Results for the year**_ The charitable company’s total income amounted to £36,459 (2021 - £58,193) during the year and included £27,629 (2021 - £52,967) from publications, training materials and courses, royalties receivable of £5,748 (2021 - £1,425) and interest receivable of £3,082 (2021 - £3,801). Expenditure amounted to £74,187 (2021 - £52,270) and included £62,689 (2021 - £38,670) for publication and development of teaching materials, £11,498 (2021 - £10,100) of donations, and £nil (2021 - £3,500) in relation to investment advice. Further details about donations are given in note 3 to the financial statements. Net expenditure for the year, before net investment losses was £37,728 (2021 - net income before investment gains was £5,923). The net decrease in the charitable company’s funds during the year after net investment losses of £13,805 was £51,533 (2021 – the net increase in the charitable company’s funds during the year after net investment gains of £29,390 was £35,313). ## _**Reserves policy and financial position**_ The charitable company’s intention is to retain sufficient reserves to continue to finance the development of educational materials. The trustees are of the opinion that the charitable company should aim to have free reserves of approximately £750,000. The balance sheet shows total funds of £890,289 (2021 - £941,822) and of this £342 (2021 - £1,467) represents the tangible fixed assets used by the charitable company. Funds which are available to support the work of the charitable company in the future are shown on the balance sheet as general funds and amount to £889,947 (2021 - £940,405). The trustees are aware that this level of reserves is in excess of the amount required by the above policy. However, they are aware that due to the changes in the educational curriculum and costs associated with digitalisation of educational resources, costs are expected to increase and, therefore, the trustees believe that it is prudent to hold the high level of free reserves at the present time. Teachers’ Enterprise in Religious Education **4** **Trustees' report** 31 August 2022 **Financial review** (continued) ## _**Investment policy and performance**_ During the year to 31 August 2021, the trustees opted to invest £275,000 in investment funds managed by CCLA Investment Management Limited. The charitable company has invested in the CCLA COIF Ethical Investment Fund – Accumulation units and in the COIF Charities Fixed Interest Fund - Accumulation Units. At 31 August 2022 the charitable company had a portfolio of listed investments with a market value of £320,585. As noted above, the charitable company’s investments made an unrealised loss of £13,805 during the year, reflecting the volatility in investment markets as a result of the macroeconomic and geopolitical environment. The trustees are satisfied with the overall performance of the investments. There are no restrictions on the charitable company’s power to invest. ## **Governance, structure and management** ## _**Constitution**_ Teachers’ Enterprise in Religious Education (TERE) is a company limited by guarantee (Company Registration No 06035087 (England and Wales)) and is a charity registered for charitable purposes (Charity Registration No. 1117900). In the event of the charitable company being wound up, members and those within one year of ceasing to be members are required to contribute an amount not exceeding £1 per person. ## _**Trustees**_ The trustees constitute directors of the charitable company for the purposes of the company legislation. New trustees are elected by those trustees who are in office at the time of the new appointment. At each Annual General Meeting one third of the trustees retire in rotation, but are eligible for re-election. The trustees who served during the year were as follows: |**Trustees**|**Appointed / Resigned**| |---|---| |Betty Conboy|Resigned 10 June 2022| |G A Cooney|| |B McArdle|| |K McSharry (Chair)|| |W M O'Rourke|Appointed 3 December 2021| |M A Ruane|| |R L Smith|Resigned 1 May2022| No trustee received any remuneration for services as a trustee during the year. During the year ended 31 August 2022, no expenses were reimbursed to trustees (2021 - £nil). Teachers’ Enterprise in Religious Education **5** **Trustees' report** 31 August 2022 ## **Governance, structure and management** (continued) ## _**Trustees** (continued)_ Two of the charitable company’s trustees, G A Cooney (Sister Marcellina) and B McArdle and a former trustee, R L Smith, contribute to the research and writing of material for the publications produced by the charitable company. Under the terms of the contracts with the charitable company, and as permitted by the charitable company’s Memorandum of Association, they receive royalty payments for these services. Royalties payable for the year to 31 August 2022 to G A Cooney were £2.305 (2021 - £4,365), to B McArdle were £5 (2021 - £7) and to R L Smith £5 (2021 - £7). No other trustee had any beneficial interest in any contract with the charitable company during the year (2021 – none). ## _**Key management personnel**_ The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a dayto-day basis. The trustees are the members of the charitable company. They receive no remuneration in connection with their duties as trustees or their work as key management. Transactions with the trustees are disclosed in note 6 to the financial statements. ## _**Statement of trustees’ responsibilities**_ The trustees (who are also directors of Teachers’ Enterprise in Religious Education for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. Teachers’ Enterprise in Religious Education **6** **Trustees' report** 31 August 2022 ## **Governance, structure and management** (continued) ## _**Statement of trustees’ responsibilities** (continued)_ The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with 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. The trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## _**Structure and management reporting**_ The trustees are ultimately responsible for the policies, activities and assets of the charitable company. As the charitable company is fairly small in size, for much of the year the trustees were responsible also for much of the day-to-day work of the charitable company. They meet when necessary to review the charitable company’s activities, possible developments, make important decisions and to seek advice and support from the charitable company’s professional advisers including solicitors and accountants. ## _**Risk management**_ The trustees have assessed the major risks to which the charitable company is exposed. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational risks faced by the charitable company, they have established effective systems to mitigate those risks. The charitable company’s material assets are its listed investments, its bank balances and its stock holding. The trustees obtain external financial advice in respect to the charity’s investments and advice to ensure that returns on the cash balances are maximised. The stock of publications is held and managed by Redemptorist Publications, a registered charity and private limited company based in Hampshire, England, which specialises in the distribution of Christian books, not only their own titles but books published by other UK and US religious publishers. The other principal financial risk faced by the charitable company remains the impact on schools of COVID-19 and the impact of the general economic conditions on the ability of schools to purchase its publications and teaching materials. Whilst the current level of activity for 2022/23 and beyond suggests that the targets set by trustees are achievable, they remain mindful that changes in general economic confidence can translate into reduced spending and, consequently, levels of income for the charitable company. The trustees continue to monitor results against budgets and expectations and their reserves policy (see above) reflects the potential risk. Teachers’ Enterprise in Religious Education **7** **Trustees' report** 31 August 2022 ## **Governance, structure and management** (continued) ## _**Conclusion**_ The pandemic triggered by COVID-19 has been a time of challenge for Teachers’ Enterprise in Religious Education. All the trustees have generously and unstintingly, in time, labour and ideas, risen to the challenge. Their maxim was business as usual: Zoom meetings replaced face to face encounters. TERE’s reserves have been invested ethically and diligently. Trustees elected to engage intensively, by way of consultation, with the development of the drafting of a new Religious Education Directory. We are writing a new Religious Education Programme _The Vine & The Branches_ to aid and enable teachers to deliver the new RE Directory. The digitalisation of TERE’s current Religious Education Programme _The Way, The Truth & The Life_ has been welcomed by schools as it provides a choice between the printed textbooks and digital books. A huge debt of gratitude is owed to Sister Marcellina whose drive, passion, commitment, and work ethos ensures the relevance and importance of TERE’s programmes in the teaching of Religious Education nationally and internationally. Sister Marcellina has been a pure gift to TERE and the development of Religious Education. Particular thanks to Angela Edwards, Religious Educationist extraordinaire, who has worked collaboratively with Sister Marcellina in developing resources for teachers. The trustees, their collaborators, and support staff are a truly amazing band of sisters and brothers whom we thank unreservedly for all that they do for the cause of Religious Education and evangelisation. Ad Majorem Dei Gloriam encapsulates the motivation and ethos of all the labourers in TERE’s vineyard. Signed on behalf of the trustees by: Marcellina Cooney CP Trustee ## Teachers’ Enterprise in Religious Education Company Registration Number 06035087 (England and Wales) Approved by the trustees on : 16/2/2023 Teachers’ Enterprise in Religious Education **8** **Independent examiner’s report** Year to 31 August 2022 ## **Independent examiner’s report to the members of Teachers’ Enterprise in Religious Education (the charitable company)** I report to the charitable company’s members on my examination of the financial statements of the charitable company for the year ended 31 August 2022. ## **Responsibilities and basis of report** The trustees and directors of the charitable company are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charitable company’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with my examination giving me cause to believe that in any material respect: -  accounting records were not kept in respect of the charitable company as required by section 130 of the 2006 Act; or -  the financial statements do not accord with those records; -  the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or -  the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Amanda Francis, Independent Examiner 17 February 2023 Buzzacott LLP 130 Wood Street London EC2V 6DL Teachers’ Enterprise in Religious Education **9** **Statement of financial activities** Year to 31 August 2022 (including the income and expenditure account) Unrestricted funds |Notes|**2022**
**£**|2021
£| |---|---|---| |**Income from:**
Interest receivable
Charitable activities
. Publications, training materials and courses
1
. Royalties receivable
1
**Total income**
**Expenditure on:**
Raising funds – investment advisory services
Publication and development of teaching materials
2
Donations and grants
3
**Total expenditure**
**Net (expenditure) income for the year before net**
**investment (losses) gains**
5
Net unrealised (losses) gains on investments
9
**Net movement in funds - net (expenditure) income**
**Reconciliation of funds:**
Fund balances brought forward at 1 September 2021
Fund balances carried forward at 31 August 2022|**3,082**
**27,629**
**5,748**|3,801
52,967
1,425| ||**36,459**|58,193| ||—
**62,689**
**11,498**|3,500
38,670
10,100| ||**74,187**|52,270| ||**(37,728)**
**(13,805)**|5,923
29,390| ||**(51,533)**
**941,822**|35,313
906,509| ||**890,289**|941,822| The charitable company has no recognised gains and losses other than those shown above. All of the charitable company’s activities derived from continuing operations during the above two financial periods. Teachers’ Enterprise in Religious Education **10** **Balance sheet** 31 August 2022 |Notes|
**2022**
**£**|**2022**
**£**|2021
£|2021
£| |---|---|---|---|---| |**Fixed assets**
Tangible fixed assets
8
Investments
**9**
**Current assets**
Stocks
10
Debtors
11
Current asset investments – short
term deposits
Cash at bank and in hand
**Liabilities**
Creditors: amounts falling due
within one year
12
**Total net assets**
**The funds of the charity:**
Unrestricted funds
. Tangible fixed assets fund
13
. General funds|


**27,218**

**3,866**
**463,840**
**85,593**|**342**
**320,585**|60,452
7,094
541,771
46,136|1,417
304,390| |||**320,927**
**569,362**||305,807
636,015| ||**580,517**

**(11,155)**||655,453
(19,438)|| |||||| |||**890,289**||941,822| |||**342**
**889,947**||1,417
940,405| |||**890,289**||941,822| For the year ended 31 August 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its financial statements for the year in accordance with section 476. The trustees as company directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime as set out in part 15 of the Companies Act 2006 and section 1A of Financial Reporting Standard 102 (FRS 102). Approved by the trustees and signed on their behalf by: Marcellina Cooney CP Trustee Teachers’ Enterprise in Religious Education Company Registration Number 06035087 (England and Wales) Approved by the trustees on: 16/2/2023 Teachers’ Enterprise in Religious Education **11** **Statement of cash flows** Year to 31 August 2022 |Notes|
**2022**
**£**|2021
£| |---|---|---| |**Cash flows from operating activities:**
Net cash (used in) provided by operating activities
A
**Cash flows from investing activities:**
Interest received
Purchase of tangible fixed assets
Purchase of investments
Cash withdrawn from short term deposits
**Net cash provided by (used in) investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 September 2021**
B
**Cash and cash equivalents at 31 August 2022**
B|
**(11,393)**|6,541| ||**2,919**
—
**(30,000)**
**77,931**|
6,482
(1,025)

(275,000)

192,401| ||**50,850**|
(77,142)| ||**39,457**

**46,136**|
(70,601)

116,737| ||
**85,593**|
46,136| ## **Notes to the statement of cash flows for the year to 31 August 2022.** ## **A Reconciliation of net movement in funds to net cash (used in) provided by operating activities** |**activities**||| |---|---|---| |**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Interest receivable
Net losses (gains) on investments
Depreciation
Decrease in stocks
Decrease (increase) in debtors
(Decrease) increase in creditors
**Net cash(used in) provided by operating activities**|**2022**
**£**|2021
£| ||**(51,533)**
**(3,082)**
**13,805**
**1,075**
**33,234**
**3,391**
**(8,283)**|35,313
(3,801)
(29,390)
1,075
3,070
(3,392)
3,666| ||**(11,393)**|6,541| ## **B Analysis of cash and cash equivalents** ||At 1
September
2021
£|Cash flows
£|**At 31**
**August**
**2022**
**£**| |---|---|---|---| |**Total cash and cash equivalents:**
Cash at bank and in hand|46,136|39,457|**85,593**| No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt). Teachers’ Enterprise in Religious Education **12** **Principal accounting policies** Year to 31 August 2022 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below. ## **Basis of preparation** These financial statements have been prepared for the year to 31 August 2022 with comparative information provided in respect to the year to 31 August 2021. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charitable company constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound. ## **Critical accounting estimates and areas of judgement** Preparation of the financial statements requires the trustees to make significant judgements and estimates. The principal areas in the financial statements where judgements and estimates have been made are in respect to assessing the value of any obsolete stock and estimating future income and expenditure flows for the purpose of assessing going concern. ## **Assessment of going concern** The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements. While it is anticipated that in the current macroeconomic and geopolitical climate may have some impact on the charitable company’s activities, the trustees believe that the charity’s financial position is robust given the level of reserves available. Therefore, the trustees of the charitable company have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees are of the opinion that the charitable company will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 August 2023, the trustees acknowledge that one significant area that may affect the carrying value of the assets held by the charity is the level of investment return and the performance of the investment markets. Teachers’ Enterprise in Religious Education **13** **Principal accounting policies** Year to 31 August 2022 ## **Income recognition** Income is recognised in the period in which the charitable company has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income is deferred only when the charitable company has to fulfil conditions before becoming entitled to it or where the provider of the income has specified that the income is to be expended in a future accounting year. Income comprises donations, interest receivable, royalties receivable, income from the sale of publications, training materials and courses and miscellaneous income. Donations are recognised when the charitable company has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charitable company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probable that those conditions will be fulfilled in the reporting period. In accordance with the Charities SORP FRS 102 volunteer time is not recognised. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank. Income in respect to publications, training materials and courses comprises income from the sale of such items together with income receivable in respect to royalties and license fees. Such income is accounted for when the charitable company has been informed that it has entitlement to the income (usually via notification from the Publishers Licensing Society), the amount is able to be quantified and where receipt is deemed probable. Other miscellaneous income is measured at fair value and accounted for on an accruals basis. ## **Expenditure recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows: -  Expenditure on provision of publications and teaching materials, their development and study visits for teachers enables the charitable company to perform its main charitable work. Teachers’ Enterprise in Religious Education **14** **Principal accounting policies** Year to 31 August 2022 ## **Expenditure recognition** (continued) -  Donations and grants include monies given to organisations with charitable objectives consistent with those of the charitable company are included in the statement of financial activities when approved for payment. Provision is made for any grants and donations approved but unpaid at the end of the financial year. All expenditure is stated inclusive of irrecoverable VAT. ## **Support and governance costs** Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charitable company it is necessary to provide support in the form of financial procedures, provision of office services and equipment. Governance costs comprise the costs involving the public accountability of the charitable company (including costs of independent examination) and costs in respect to its compliance with regulation and good practice. All expenditure on support and governance is attributed directly to the charitable activities of publications and development of teaching materials as any costs in relation to provision of donations and grants or raising funds is considered to be minimal. ## **Tangible fixed assets** All assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised. ## _Computer equipment_ Depreciation is provided at 33.33% per annum on a straight line basis in order to write off each asset over its estimated useful life. ## **Fixed asset investments** Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The charity does not acquire put options, derivatives or other complex financial instruments. As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise. Teachers’ Enterprise in Religious Education **15** **Principal accounting policies** Year to 31 August 2022 ## **Stocks** Stocks of books, pamphlets and CD ROMS for resale are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving stock. ## **Debtors** Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. ## **Cash at bank and in hand** Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. ## **Creditors and provisions** Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charitable company anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. ## **Fund accounting** The funds of the charitable company are unrestricted and, therefore, are available for use in furtherance of the charitable company’s objectives at the discretion of the trustees. Within the total unrestricted funds of the charity are amounts representing tangible fixed assets. ## **Services provided by trustees** For the purposes of these financial statements, no monetary value has been placed on the administrative and other services provided by the trustees. Teachers’ Enterprise in Religious Education **16** **Notes to the financial statements** Year to 31 August 2022 ## **1 Income from charitable activities** Of the total income in respect to publications, training materials and courses of £27,629 (2021 - £52,967), £1,138 (2021 - £5,235) is derived from outside the United Kingdom. All income from royalties in both 2022 and 2021 is derived from within the United Kingdom. ## **2 Expenditure on: Publication and development of teaching materials** ||**2022**
**£**|2021
£| |---|---|---| |Costs of publications; teaching materials and cost of training
. Writing, editing, proof reading, artwork, filming, digitalisation etc
. Printing of publications
. Provision for obsolete stock
. Royalties payable
. Costs of training
Distribution costs
. Distribution fees
. Advertising and promotional materials
Support costs
. Accountancy, secretarial and support services
. Website and development
. Professional fees
. Office and other sundry costs
. Depreciation
. Bank charges
. Governance costs (note 4)|**4,974**
**6,510**
**26,724**
**3,048**
—
**4,660**
—
**1,592**
**5,109**
**1,515**
**3,745**
**1,075**
**5**
**3,732**|575
4,996
910
5,400
160
7,504
140
3,179
5,600
979
1,997
1,075
35
6,120| ||**62,689**|38,670| ## **3 Expenditure on: Donations and grants** |**3**|**Expenditure on: Donations and grants**||| |---|---|---|---| |**4**||**2022**
**£**|2021
£| ||Donation to the Sisters of the Cross and Passion (note 6)
Other donations|**10,000**
**1,498**|10,020
80| |||**11,498**|10,100| ||**Governance costs**||| |**Governance costs**||| |---|---|---| ||**2022**
**£**|2021
£| |Legal and professional fees
Trustees’ indemnity insurance (note 6)
Trustees’ meeting expenses|**3,000**
**732**
—|5,300
732
88| ||**3,732**|6,120| Teachers’ Enterprise in Religious Education **17** **Notes to the financial statements** Year to 31 August 2022 - **5 Net movement in funds - net (expenditure) income** This is stated after charging: ||**2022**
**£**|2021
£| |---|---|---| |Depreciation
Independent Examiner’s (Buzzacott LLP’s) remuneration (excluding
VAT)
. Independent examination services
.. Current year
.. Previous year
. Other services
..General advisory
..Stock take attendance|**1,075**
**3,000**
—
**850**
—|1,075
4,000
300
945
1,000| In addition to the fees payable to Buzzacott LLP during the year to 31 August 2021, £3,500 was payable to Buzzacott Financial Services Limited in respect to the provision of advice on the investment of funds. No such fees were payable in the year to 31 August 2022. - **6 Staff costs, key management personnel and trustees’ remuneration** The charitable company employed no staff during the year (2021 - none). The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a day to day basis. No trustee received any remuneration in respect of their services as a trustee during the year (2021 - none). During the year ended 31 August 2022 no out of pocket expenses were reimbursed to trustees (2021 - none). Two of the charitable company’s trustees and one former trustee contribute to the research and writing of material for the publications produced by the charitable company. Under the terms of the contracts with the charitable company, and as permitted by the charitable company’s Memorandum of Association, these individuals receive royalty payments for these services. Royalties payable for the year to 31 August 2022 were as follows: ||**2022**
**£**|2021
£| |---|---|---| |R Smith
G A Cooney
B McArdle|**5**
**2,305**
**5**|7
4,365
7| During the year a donation of £10,000 was made to Sisters of the Cross and Passion CIO, a registered charity (Charity Registration No 1185348) (2021 - £10,020 to Sisters of the Cross and Passion (Charity Registration No 1038483) which administers certain of the assets of St Paul’s Province of the Sisters of the Cross and Passion, a Roman Catholic religious congregation. G A Cooney is a member of the Congregation. Teachers’ Enterprise in Religious Education **18** **Notes to the financial statements** Year to 31 August 2022 ## **6 Staff costs, key management personnel and trustees’ remuneration** (continued) The charitable company has purchased insurance to protect the charitable company from any loss arising from negligent acts, errors or omissions on the part of the trustees, employees or agents and to indemnify the trustees or other officers against the consequences of any neglect or default on their part. The insurance premium paid by the charitable company during the year totalled £732 (2021 - £732) and provides cover of up to a maximum of £1 million (2021 - £1 million). The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a day to day basis. All trustees are members of the charitable company and they receive no remuneration in connection with their duties as trustees or work as key management. ## **7 Taxation** Teachers’ Enterprise in Religious Education is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities as they fall within the exemptions available to registered charities. ## **8 Tangible fixed assets** |**Tangible fixed assets**|| |---|---| ||**Computer**
**equipment**
**£**| |**Cost**
At 1 September 2021 and at 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
At 31 August 2022
**Net book values**
At 31 August 2022
At 31 August 2021|**3,225**| ||**1,808**
**1,075**| ||**2,883**| ||**342**| ||1,417| Teachers’ Enterprise in Religious Education **19** **Notes to the financial statements** Year to 31 August 2022 ## **9 Fixed asset investments** |**Fixed asset investments**||| |---|---|---| ||**2022**
**£**|**2021**
**£**| |**Listed investments**
Market value at 1 September 2021
Additions at cost
Net unrealised investment (losses) gains
Market value at 31 August 2022
Cost of listed investments at 31 August 2022|**304,390**
**30,000**
**(13,805)**|—
275,000
29,390| ||**320,585**|304,390| ||**305,000**|275,000| All listed investments were dealt in on a recognised stock exchange. At 31 August 2022, listed investments included the following holdings: ||**2022**|**2022**| |---|---|---| |Holding|**Market**
**value of**
**holding**
**£**|**Percentage**
**of**
**portfolio**
**%**| |CCLA COIF Ethical Investment Fund - Accumulation units
COIF Charities Fixed Interest Fund - Accumulation Units|**266,409**
**54,176**|**83.10**
**16.90**| ||**320,585**|**100.00**| ## **10 Stocks** ||**2022**
**£**|2021
£| |---|---|---| |Publications and related items for sale|**27,218**|60,452| ## **11 Debtors** |**Debtors**||| |---|---|---| |Deposit on digital books
Publication sales
VAT recoverable
Bank interest receivable|**2022**
**£**|2021
£| ||—
**1,570**
**570**
**1,726**|1,000
2,871
1,660
1,563| ||**3,866**|7,094| ## **12 Creditors: amounts falling due within one year** |**Creditors: amounts falling due within one year**||| |---|---|---| |Expense creditors
Accruals|**2022**
**£**|2021
£| ||**8,155**
**3,000**|15,188
4,250| ||**11,155**|19,438| Teachers’ Enterprise in Religious Education **20** **Notes to the financial statements** Year to 31 August 2022 ## **13 Tangible fixed assets fund** ||**2022**
**£**|

**2021**
**£**| |---|---|---| |At 1 September 2021
Net movements in the year
At 31 August 2022|**1,417**
**(1,075)**|—
**1,417**| ||**342**|**1,417**| The tangible fixed assets fund has been established to represent the net book value of the charity’s tangible assets. A decision was made to separate this fund from the general funds of the charity in recognition of the fact that the tangible fixed assets were essential to the day-to-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies. ## **14 Unrealised gains on investments** The total unrealised gains as at 31 August 2022 constitute movements on revaluation of listed investments and were as follows: ||**2022**
**£**|

**2021**
**£**| |---|---|---| |**Total unrealised gains on investments included above:**
**Reconciliation of movements in unrealised gains**
Unrealised gains at 1 September 2021
Add: net (losses) gains arising on revaluation in the year
Unrealisedgains at 31 August 2022|**15,585**|**29,390**| ||**29,390**
**(13,805)**|—
29,390| ||**15,585**|29,390| ## **15 Members’ liability** In the event of the charitable company being wound up, members and those within one year of ceasing to be members, are required to contribute an amount not exceeding £1 per person towards the costs of dissolution and the liabilities incurred by the charitable company while he or she was a member. ## **16 Related party transactions** Details of transactions with the charitable company’s trustees are provided in note 6. There were no other related party transactions requiring disclosure (2021 – none). Teachers’ Enterprise in Religious Education **21**