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2022-03-31-accounts

www.christianbooksworldwide.org

WORLDWIDE S) Christian Books Company Registration Number: 05741613 Charity Registration Number: 1127503

Annual Report and Financial Statements

For the year ended 31 March 2022

Tandem Accounting Chartered Accountants 17 Heathville Road London N19 3AL

CHRISTIAN BOOKS WORLDWIDE

CHRISTIAN BOOKS WORLDWIDE Annual Report and Financial Statements S ChristianWORLDWIDEBooks For the year ended 31 March 2022 Contents

Page
Legal and administrative information 2
Annual Report of the Trustees 4
Independent Examiner's report to the Trustees 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10

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S ChristianWORLDWIDE Books

CHRISTIAN BOOKS WORLDWIDE

Annual Report of the Trustees For the year ended 31 March 2022

Charity Name Christian Books Worldwide.
Charity Registration no. 1127503. The Charity was registered with the Charity Commission on 13 January 1127503. The Charity was registered with the Charity Commission on 13 January
2009 as a charitable company.
Company Registration no. 05741613
Registered Office Christian Books Worldwide, Until 41, Berkeley House, Hunts Rise, South Marston
Park, Swindon, SN3 4TG
Governing Document Memorandum and Articles of Association dated 22ndAugust 2008
Objects To advance the Christian faith for the benefit of the public by, but not limited to, the
publishing, selling and distribution of Christian literature and other religious articles.
Trustees The Trustees who served during the year and who were serving at the date of this
report were:
Mr Jeremy Marshall (Chair)
Rev Robin Asgher
Mr Christopher Embleton-Smith
Rev Sukesh Pabari (Retired 30thSep 2021)
Mr Timothy Malton
Mr Jonathan Pountney
Rev Maybin Kabwe
Rev Olawale Akinrogunde (Appointed 16 Mar 2022)
Key Management Personnel Trustees have delegated the day-to-day planning, directing, controlling, running and
operating of the Charity, to the Executive Committee, comprised of members of
staff and volunteers who are the senior management personnel.
Executive Committee Mr James Stileman (Chair)
Mr Michael Taylor
Mr Adrian Jones
Mr Matthys Storm
Rev Mark O’Donoghue (Appointed 1stMay 2021)
Bankers Lloyds Bank plc,
1 Queens Square
Wolverhampton
PO Box 1000
BX1 1LT
Independent Examiner John Helm ACA
Simply Churches Limited
17 Heathville Road
London N19 3AL

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CHRISTIAN BOOKS WORLDWIDE

Annual Report of the Trustees For the year ended 31 March 2022

The Trustees submit their annual report and the financial statements of Christian Books Worldwide (“the Charity”) for the year ended 31 March 2022. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

1.1. Trustees

The Trustees meet five times a year to discuss a full range of matters relating to strategy, project work, recruitment, finance and general administration.

The induction process for any individual newly appointed to the board of Trustees comprises an initial meeting with the Chair of trustees and the Executive Director including the receipt of copies of:

1.2 Risk Management

The Trustees acknowledge that they have a responsibility for the identification and proper management of risks faced by the Charity in achieving its primary aims. The Trustees have therefore assessed the major risks to which the Charity is exposed in a ‘Risk Register’, in particular those relating to the specific operational areas of the Charity and its finances. The Trustees believe that by monitoring reserve levels, by developing controls over key financial systems, and by having the operational risks faced by the Charity reviewed, they have established systems and procedures to mitigate those risks.

2. Activities and Public Benefit

Christian Books Worldwide (CBW) is dedicated to advancing the Christian faith in the poorest segments of the Majority World through the publication, translation, and distribution of Bible-centred literature. This is achieved principally, but not exclusively, by equipping under-resourced pastors with appropriately selected books.

3. Achievements and Performance

The reporting period falls midway through the implementation of a three-year strategic plan. The focus of the first year was primarily consolidating operational practices, whereas this second year saw the implementation of more fundamental strategic developments, most notably the creation of regional hubs.

Regional Hubs:

The charity recognises the need to empower trusted partners in the Majority World to operate on CBW’s behalf by delegating day-to-day control from the UK to strategic locations worldwide. Several potential regional centres and partners were identified of which 6 were chosen for development in 2022/2023, the third year of the plan. They were Lagos (Nigeria), Nairobi (Kenya), Zomba (Malawi) in Africa; and Chennai (India), Yangon (Myanmar) and Negros Occidental (Philippines) in Asia. To resource the hubs effectively, the Charity began shifting operational focus from sending boxes of books direct to individual pastors, to despatching pallet size consignments to hubs. Although a slower process, the cost per book is significantly less.

Editorial Focus:

In May, Rev Mark O’Donoghue joined the charity as a part-time consultant to enhance CBW’s editorial focus by continuing the review in year 1 to refine ‘The Preachers Collection’, a mini library of 15 books for pastors educated to secondary school level as well as sourcing books for ‘The Pastor’s Toolbox’, a more basic set of 5 to 6 books for rural pastors educated to primary level. During the year the charity’s Editorial Board expanded and the number of books reviewed grew accordingly.

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CHRISTIAN BOOKS WORLDWIDE

Annual Report of the Trustees For the year ended 31 March 2022

Translation, Publication & E-Books:

Although the knock-on disruption of Covid-19 was still being felt during the reporting period, several books were translated and printed for distribution including: Manipuri/Meitei, Burmese, Mizo, Falim Chin, Swahili (2), Chichewa, Sinhalese, Malayalam, besides the printing of 3 English books. New collaborations with publishers were developed and the e-Books platform was enhanced, especially by the expansion of non-English content.

Operational Capacity:

Turn-over of books through the Swindon warehouse grew throughout the period resulting in the need to acquire an additional unit in Berkeley House Business Park in March. This extra space has enhanced efficiency and flexibility and has enabled the Charity to welcome more volunteers to join the Tuesday working group. The other significant operational development was the increased capabilities of the Charity’s database, which was launched the previous year. This has helped streamline processes and enabled CBW to record data and respond to trends more effectively, especially the cost of despatch.

Fundraising:

The growth of the Charity in recent years resulted in the need for more fundraising. During the reporting year there was a focused drive to make grant applications which the Charity had not previously actively pursued. The results were encouraging with £28,150 received.

4. Financial Review

Funding for the Charity comes mainly from donations from churches and individuals.

4.1 Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 8 and 9 respectively. The Charity’s reserves increased by £15,187 during the year (2021 – increased by £52,025). The balance sheet shows total net assets of £101,725 (2021: £86,538).

Included in total funds are amounts totalling £21,749 (2021: £20,103) which are restricted. These monies have either been raised for, and their use restricted to, specific purposes, or they comprise grants subject to grantor-imposed conditions. Full details of these restricted funds can be found in note 8 to the accounts together with an analysis of movements in the year.

4.2 Reserves Policy

The Trustees have examined the requirements for free reserves, ie those unrestricted funds not invested in tangible fixed assets. The Trustees consider that, given the nature of the Charity’s funding, free reserves should be equivalent to approximately 3 months’ worth of budgeted expenditure in order to provide sufficient flexibility to cover temporary shortfalls in incoming resources and allow the Charity to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 March 2022 the Charity had net free reserves of £42,019 (2021: £41,639) as follows:

2022 2021
£ £
Total reserves 101,725 86,538
Less: fixed assets (89) (134)
Less: stock (37,868) (24,932)
Less: restricted funds (21,749) (20,103)
Free reserves 42,019 41,369
Free reserves requirement:
3 month’s budgeted expenditure 30,000 20,000

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CHRISTIAN BOOKS WORLDWIDE

Annual Report of the Trustees For the year ended 31 March 2022

5. Going Concern Review

Each year it is the trustees’ responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 11). Going concern is the assumption that an entity, in this case the Charity, has the resources (financial or otherwise) needed to continue operating for the foreseeable future.

It is the trustees’ view that reserves and ongoing income are sufficient to maintain the ongoing operations of the Charity.

6. Plans for Future Periods

With the Charity now in the final year of a three-year strategic plan CBW has started to review future options. Chief among these is collaboration with like-minded organisations, particularly CBW’s sister charity, Pastor Training International (PTI).

PTI provides in-country training for pastors in the same situation that CBW seeks to help: under-resourced church leaders with little or no theological training. CBW was spun out of PTI in 2009 to focus on book distribution, translation and to develop digital books. The two charities have been working alongside one another for the past 15 years but in the last two years there has been informal collaboration with significant mutual benefit. There are plans underway to explore whether future collaboration might be extended and more formalised. The outcome of this review could make a significant difference to the following three-year plan (2023-2026).

In the meantime, future focus will be to:

7. Responsibilities of Trustees for the Financial Statements

The Trustees are responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period.

In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. The Trustees are also responsible for safeguarding the assets of the Charity 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 the Charity and financial information included in the Charity’s website.

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CHRISTIAN BOOKS WORLDWIDE

Annual Report of the Trustees For the year ended 31 March 2022

8. Approval

The report of the Trustees was approved by the Trustees on 29 September 2022 and signed on their behalf by:

Jeremy Marshall Chairman

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CHRISTIAN BOOKS WORLDWIDE

Report of the Independent Examiner to the Trustees of Christian Books Worldwide

I report on the accounts of the Christian Books Worldwide for the year ended 31 March 2022, set out on pages 8 to 15.

This report is made solely to the Trustees in accordance with section 145 of the Charities Act 2011 (“the Act”). My independent examination has been undertaken so that I might state to the Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by the law, I do not accept responsibility to anyone other than the Trust and the Trustees for my independent examination, for this report, or the opinions I have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The Trustees consider that an audit is not required for this period (under section 144(2) of the Act) and that an independent examination is needed.

It is my responsibility to:

BASIS OF INDEPENDENT EXAMINER’S STATEMENT

My examination was carried out in accordance with 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 consideration of any unusual items or disclosures in the accounts and seeking explanations from the Trustees concerning any such matters. 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 accounts.

INDEPENDENT EXAMINER’S STATEMENT

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. 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.

John Helm ACA 29 September 2022

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CHRISTIAN BOOKS WORLDWIDE

Statement of Financial Activities (including the Income and Expenditure account) For the year ended 31 March 2022

Unrestricted Restricted Unrestricted Restricted
Funds Funds Total Funds Funds Total
Note 2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Income from: 2 2
Donations and legacies 135,511 127,435 262,946 117,019 77,022 194,041
Other trading activities 7,195 - 7,195 7,000 6 7,006
Total Income 142,706 127,435 270,141 124,019 77,028 201,047
Expenditure on:
Raising funds 3,506 - 3,506 39 - 39
Charitable activities 3 125,659 125,789 251,448 82,797 66,186 148,983
Total Expenditure 129,165 125,789 254,954 82,836 66,186 149,022
Net gains/(losses) on investments - - - - - -
Net income before tax 4 13,541 1,646 15,187 41,183 10,842 52,025
Tax payable
5		 - - - - - -
Net income after tax 13,541 1,646 15,187 41,183 10,842 52,025
Transfers between funds - - - - - -
Other recognised gains and losses - - - - - -
Net movement in funds 13,541 1,646 15,187 41,183 10,842 52,025
Total funds brought forward Total funds brought forward 66,435 20,103 86,538 25,252 9,261 34,513
Total funds carried forward
Total funds carried forward		 79,976 21,749 101,725 66,435 20,103 86,538

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CHRISTIAN BOOKS WORLDWIDE

Balance Sheet At 31 March 2022

S ChristianWORLDWIDE Books

Unrestricted Restricted
Funds Funds Total Total
Note 2022 2022 2022 2021
£ £ £ £
Fixed Assets
Tangible Assets 6 89 - 89 134
89 0 89 134
Current Assets
Stock 37,868 - 37,868 24,932
Debtors 7 6,043 - 6,043 6,502
Cash At Bank And In Hand 39,669 21,749 61,418 56,892
83,580 21,749 105,329 88,326
Creditors - Amounts Falling Due
Within One Year 8 3,693 - 3,693 1,922
Net Current Assets 79,887 21,749 101,636 86,404
Net Assets 79,976 21,749 101,725 86,404
Represented By:
Restricted Funds 9 - 21,749 21,749 20,103
Unrestricted Income Funds 79,976 - 79,976 66,435
Total Funds 79,976 21,749 101,725 86,538

These accounts 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. The company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31 March 2022 and no notice requiring an audit has been deposited under section 476.

The Trustees acknowledge their responsibilities for:

The financial statements were approved by the Trustees on 29 September 2022 and signed on their behalf by:

Jeremy Marshall Chairman

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

1. Accounting Policies

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

Basis of accounting

The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102) and the Charities Act 2011. The financial statements are drawn up on the historical cost basis of accounting with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements

The Charity meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Charity is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations.

Charitable expenditure includes those costs in fulfilling the Charity’s principal objects, as outlined in the Report of the Trustees. Charitable expenditure includes governance costs and an apportionment of support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

Rentals under operating leases are charged as incurred over the term of the lease.

Taxation

The Charity is a registered charity and qualifies for relief from Corporation Tax under s 505 of the Taxes Act.

Tangible Fixed Assets

The cost of equipment, less any expected residual value, is depreciated on a straight-line basis over the effective useful life of the asset, which has been estimated as four years.

Stock

Stock of books is valued at the lower of cost and net realisable value.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

1. Accounting Policies (continued)

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

2. Income

2. Income
Unrestricted Restricted
Funds Funds Total Total
2022 2022 2022 2021
£ £ £ £
Donations & legacies
Donations 124,433 127,066 251,499 184,121
Gift Aid 11,078 369 11,447 9,920
135,511 127,435 262,946 194,041
Other trading income
Sale of books 7,195 - 7,195 7,006
Investment income
Bank Interest - - - -
142,706 127,435 270,141 194,041

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

S ChristianWORLDWIDE Books

3. Expenditure on Charitable Activities

3. Expenditure on Charitable Activities
Unrestricted Restricted
Funds Funds Total Total
2022 2022 2022 2021
£ £ £ £
Direct charitable costs
Book development (translation, publishing, printing) 13,730 28,866 42,596 29,655
Book purchases, storage & distribution 36,094 20,750 56,844 37,539
Ministry, evangelism and education
Gifts (see note 4a below) 231 28,377 28,608 19,351
Communications 6,595 - 6,595 8,987
Personnel (see note 4b below) 53,794 42,668 96,462 45,334
Office, administration & support 14,315 5,128 19,443 7,277
Governance costs
Independent examination 900 - 900 840
125,659 125,789 251,448 148,983

3a. Gifts

Included within expenditure are the following gifts:

Unrestricted Restricted
Funds Funds Total Total
2022 2022 2022 2021
£ £ £ £
Education - Serbia - 6,000 6,000 5,500
Relief - Serbia - 8,800 8,800 8,000
Relief - Ukraine - 5,902 5,902 3,351
Relief - Nepal 28 972 1,000 2,500
Relief - Myanmar 6,703 6,703 -
Relief - Pakistan 203 - 203 -
231 28,377 28,608 19,351

3b. Personnel

Included within expenditure on personnel are the following salaried costs in respect of 4 employees (2021: 3):

Unrestricted Restricted
Funds Funds Total Total
2022 2022 2022 2021
£ £ £ £
Gross salaries 33,412 30,168 63,580 19,185
Pension contributions 2,756 - 2,756 863
36,168 30,168 66,336 2,262,131 66,336 2,262,131
Of which the following was paid in respect of key
management personnel 33,075 - 33,075 11,813

Two trustees received reimbursement of expenses totalling £380 during the year (2021: £690) relating to travel and equipment.

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

4. Taxation

As a charity, Christian Books Worldwide is exempt from tax on income and gains falling within the provisions of the Corporation Taxes Act 2010 or the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen on the Charity.

5. Tangible Fixed Assets

Office
Equipment
£
Cost
At 1 January 2022 460
Additions -
Disposals -
At 31 March 2022 460
Depreciation
At 1 January 2022 326
Charge For Year 45
Disposals -
At 31 March 2022 371
Net Book Value
At 31 March 2022 89
At 31 March 2021 134

All of the fixed assets are used for charitable purposes.

6. Debtors

6. Debtors
2022 2021
£ £
Tax recoverable 3,091 5,722
Prepayments 1,512 -
Other debtors 1,440 780
6,043 6,502

7. Creditors – Amounts Falling Due Within One Year

7. Creditors – Amounts Falling Due Within One Year
2022 2021
£ £
Accruals 1,050 1,440
Other creditors 2,643 482
3,693 1,922

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

S ChristianWORLDWIDE Books

8. Restricted Funds

At 1 At 31
8a Current year April March
2021 Income Expenditure Transfers 2022
£ £ £ £ £
Translation works 18,903 5,937 (10,212) - 14,628
Serbia 0 14,800 (14,800) - 0
Nepal 0 972 (972) - 0
Ukraine 1,200 5,902 (6,355) - 747
Myanmar 0 7,049 (6,799) - 250
Hub (Malawi) 0 10,300 (7,422) - 2,878
Hub (India) 0 1,250 (1,250) 0
Dino Moga 0 10,400 (10,400) 0
Great Truths 0 11,500 (8,254) - 3,246
Staff 0 28,775 (28,775) - 0
Consultant 0 12,000 (12,000) - 0
Shipping/Delivery 0 18,550 (18,550) - 0
20,103 127,435 (125,789) 0 21,749
At 1 At 31
8b Prior year April March
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Translation works 2,738 28,445 (12,280) - 18,903
Serbia 0 14,850 (14,850) - 0
Nepal 0 2,500 (2,500) - 0
Ukraine 1,200 3,351 (3,351) - 1,200
Staff 0 32,000 (32,000) - 0
Swahili 5,323 (4,118) (4,118)
(1,205)		 - 0
9,261 77,028 (66,186) 0 20,103

Descriptions of the restricted funds are as follows:

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CHRISTIAN BOOKS WORLDWIDE

Notes to the Financial Statements For the year ended 31 March 2022

8. Restricted Funds (continued)

9. Related Party Transactions

The aggregate total amount of donations by trustees to the charity during the year was £79,147 (2021: £53,479).

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