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2021-07-31-accounts

REGISTERED COMPANY NUMBER: 06919051 (England and Wales) REGISTERED CHARITY NUMBER: 1131305 REGISTERED CHARITY NUMBER: SC042550 (Scotland)

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

FOR

ACTS 435

HPH

Chartered Accountants 54 Bootham York YO30 7XZ

ACTS 435 CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

CONTENTS Page
Trustees' Annual Report 1 - 4
Independent Auditor's Report 5 - 7
Statement of Financial Activities 8
Balance Sheet 9
Statement of Cash Flows 10
Note to the Statement of Cash Flows 11
Notes to the Financial Statements 12 - 22

ACTS 435 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The aim and objectives of Acts 435 is to directly connect those who want to give with those who are in genuine need of their help, through a network of local churches and charities. Each partner church or charity appoints an Acts 435 advocate who meets with the person struggling financially and posts onto the Acts 435 website the specific need they have such as clothes or a piece of furniture. People respond by giving online to that need and the money is transferred to the partner church or charity to purchase the item so desperately needed.

Scotland

We operate in all four countries of the United Kingdom with a growing number of churches and charities in Scotland where we are registered with the OSCR.

ACHIEVEMENT AND PERFORMANCE

Review of Activities

Acts 435 was launched as a pilot in the North Yorkshire and Humber Region in October 2009 and was then launched nationally by the patron, the Archbishop of York, on the 12th July 2010. During the course of the Covid-19 pandemic the charity was able to operate as normal given the employees all work from home. The charity saw immediate growth at the onset of the pandemic, increasing from helping on average 300 people a month to over 500 people a month. The charity fully funded its administration costs through Gift Aid in this and the prior year. The charity seeks to meet the needs of people in UK poverty quickly, and within one month at most. During the year 100% of requests were met within one month, with the average less than two weeks, many met in a matter of days.

Core Activities for Public Benefit

Acts 435 is a website that directly links those wanting to give with those needing their help. Acts 435 focuses on providing specific practical help for those people locally known to be in need in small but significant ways. For each request there is a limit of £150 and an overall limit per family of three requests in total with additional requests only in exceptional circumstances. 100% of donations to requests go to those in need with no percentage removed for administrative costs. Many individuals helped speak not only of the support of the actual item but also the wonderful experience of receiving the kindness of strangers. The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011 and they deem the charity to qualify as a public benefit entity.

External Partnership

Acts 435 works with over 600 churches and charities to help people in need in the community with many new partners joining in this financial year. It also works closely with other charities that work through churches to help people in UK poverty such as Christians Against Poverty, Trussell Trust, Community Money Advice and the St Vincent de Paul Society.

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ACTS 435 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL REVIEW

At 31 July 2021 the total reserves amounted to £105,615, of which £13,292 were restricted. Accordingly, the free reserves at the year-end were £92,323.

Reserves policy

The Charity's administrative costs were previously funded by a private donor who topped up the funds as needed and are now met by Gift Aid. The original private donor is still willing to fund this, as necessary, should there be any short-term cash flow issues.

In its twelfth year the core activities of Acts 435 have continued to increase with over £1,000,000 given to distribute to people in need, representing over 7,000 requests for help being met. As the word spreads, it is hoped this growth will continue. Restricted funds are passed onto individual applicants within 7 days of the full donation being received.

Unrestricted funds primarily represent Gift Aid receipts, from which all administrative costs are covered. The model enables requests for help to be met whilst funding the low administrative costs of the charity. In this financial year, work commenced on building a new website for Acts 435 that would support future growth and replace the site originally built in 2009. Initial payments, from unrestricted funds, are reflected in these accounts for the development of the site which is capitalised as an intangible asset.

As such the charity does not have a formal reserves policy at the current time. However, where the balance of unrestricted funds reaches a level that, in the opinion of the Trustees, will not be needed to underwrite operational expenditure, it is used to meet further requests for assistance that have been posted on the website. Although the Trustees have maintained a higher than usual year-end balance this year, in order to ensure that the costs of the new website can be met, £18,833 (2020: £350) of surplus Gift Aid was applied to website requests during the financial year.

Larger Gifts

In October 2018 we started a Larger Gifts Fund in collaboration with Stewardship. This fund closed in October 2019 when the funds were used up, but was able to reopen in May 2020 on receipt of £50,000 from Stewardship’s Rapid Response Fund, set up in response to the Covid-19 pandemic. In the current financial year additional efforts were made to raise income for this Fund, and some donors gave to the Fund alongside the P27 Trust. Since the year-end, the decision was taken to close the Larger Gifts Fund until it can be incorporated into the main Acts 435 website rather than run separately.

The Larger Gifts fund meets needs of individuals struggling financially, identified by our network of partners, that are in excess of £150 up to a maximum of £1,000 covering such needs as rent arrears, bankruptcy fees and replacing items following a house fire.

Future Plans

Going forwards the charity plans to continue expanding its network of church and local charity partners. Its aim is to get to 1,000 partners by 2025 and be helping 1,000 people a month. With the constant pressure on the cost of living, many more churches and local charities are reaching out to the charity to see if they can partner with us. We have expanded the team to enable us to develop key partnerships with other church networks to achieve this aim.

As part of the charity’s plans for growth, it plans to launch a new website in 2022 which will support the next decade of growth and enhance the donor experience.

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ACTS 435 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Acts 435 was established by a Memorandum and Articles adopted on 29 May 2009, which has subsequently been amended by Special Resolutions dated 31 July 2009, 1 July 2011 and 21 January 2019. The Charity registered with the Charity Commission in England and Wales on 24 August 2009 and with the Office of the Scottish Charity Regulator (OSCR) on 31 August 2011.

Organisational structure

During the financial year the charity had a part-time Executive Director reporting to the Trustees, and three part-time officers covering Operations and Communications. Since the year-end, a fifth parttime member of staff has been added to the team. Collectively the FTE is 2.3.

The work was supported by over 600 volunteer Advocates based in local churches and Christian charities.

Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees have identified and assessed the major risks to which the charity is exposed, in particular those related to the operation and finances of the charity. They are satisfied that the charity's exposure to these risks is minimal.

Coronavirus (COVID-19)

Since the coronavirus pandemic impacted the United Kingdom, Acts 435 has seen an uplift in its donations which has been sustained beyond the year-end. There are increasing needs but donors continue to meet those needs. Gift Aid receipts each quarter comfortably cover the operating costs of the charity with some excess funds used to help meet the needs on the website.

Management of the charity

The Executive Director of the charity has been in post since it was launched and key decisions are delegated to her by the trustees. She is also a chartered accountant so leads on the financial decisions, including when to apply Gift Aid to requests and all information is reported to the trustees and analysed by them. The trustees receive both weekly and monthly reports.

Salaries of the small team are set by the Executive Director, and the Executive Director is line managed by the Chair of Trustees who sets her salary. As a small, unique charity, it is difficult to find clear benchmarks but all salaries are compared to general data available through charity recruiting websites.

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ACTS 435

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 06919051 (England and Wales)

Registered Charity number

1131305 (England and Wales) SC042550 (Scotland)

Registered office

The Gateway Centre Front Street York YO24 3BZ

Patron

Archbishop of York, Dr. John Sentamu

Trustees

Julian Richer (Chair) Margaret Sentamu (resigned 29 July 2021) Peter Warry Jonathan Day Malcolm Marshall Stephen Robertson Alison Tsang (appointed 30 November 2021)

Trustees shall serve in office for a period of three years but after that may be reappointed for two further terms of three years. At the end of their third term in office and in subsequent years a Trustee may be reappointed subject to a rigorous review, taking into account the need for progressive refreshing of the board.

The election of trustees is made with unanimous agreement of the other trustees and is based on skills as well as having a Christian faith. Each trustee completes an eligibility form and Charity Commission induction materials are made available to them. The charity is committed to having at least one advocate on the board to ensure the voice of the church and charity advocates is heard.

Company Secretary

Jennifer Herrera

Auditor Bankers HPH Chartered Accountants Yorkshire Bank 54 Bootham 46 Coney Street York York YO30 7XZ YO1 9NQ

AUDITORS

The auditors, HPH Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 26 April 2022 and signed on its behalf by:

.................................................................

Julian Richer – Chair of Trustee

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACTS 435.

Opinion

We have audited the financial statements of Acts 435 for the year ended 31 July 2021 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

5

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed

6

the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were Employment legislation, Charity Commission regulations and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and income recognition. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, proof in total testing of fee income, detailed substantive testing on the completeness of other sources of income, reviewing regulatory correspondence and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Adrian Rodaway, Senior Statutory Auditor

For and on behalf of

HPH, Statutory Auditor

26 April 2022

7

ACTS 435 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021

Note
INCOME AND ENDOWMENTS FROM
Donations, legacies and grants
3
Investment income
4
TOTAL INCOME
EXPENDITURE ON
Raising funds
5
Charitable activities
Grants payable to individuals
6
Charitable support and governance costs
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
Transfer between funds
16
NET MOVEMENT BETWEEN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
128,373
8
128,381
14,032
-
61,935
75,967
52,414
(18,833)
33,581
58,742
£ 92,323		 Restricted
Funds
£
925,553
-
925,553
-
971,131
-
971,131
(45,578)
18,833
(26,745)
40,037
£ 13,292		 2021
2020
£
£
1,053,926
689,395
8
47
1,053,934
689,442
14,032
29,518
971,131
551,858
61,935
35,983
1,047,098
617,359
6,836
72,083
-
-
6,836
72,083
98,779
26,696
£ 105,615
£ 98,779
Total Funds

CONTINUING OPERATIONS

Income and net movement in funds derive wholly from continuing operations.

The notes on pages 12 to 22 form part of these financial statements.

8

ACTS 435 BALANCE SHEET FOR THE YEAR ENDED 31 JULY 2021

Registration number: 06919051

Note Unrestricted
Fund
FIXED ASSETS
Tangible fixed assets
12
99
Intangible fixed assets
13
28,800
28,899
CURRENT ASSETS
Debtors
14
34,931
Cash at bank and in hand
34,419
69,350
CREDITORS
Amounts falling due within one year
15
5,926
NET CURRENT ASSETS
63,424
TOTAL ASSETS LESS CURRENT
LIABILITIES
92,323
NET ASSETS/(LIABILITIES)
£ 92,323
REPRESENTED BY
Unrestricted funds
16
92,323
Restricted funds
16
-
£ 92,323		 Restricted
Fund
-
-
-
43,257
18,127
61,384
48,092
13,292
13,292
£ 13,292
-
13,292
£ 13,292		 2021
£
99
28,800
28,899
78,188
52,546
130,734
54,018
76,716
105,615
£ 105,615
92,323
13,292
£ 105,615		 2020
£
199
-
199
124,192
74,314
198,506
99,926
98,580
98,779
£ 98,779
58,742
40,037
£ 98,779

These financial statement have been prepared in accordance with the provisions applicable to charitable companies subject to small companies regime.

The fiancial statement were approved by the Board of Trustees and authorised for issue on 26 April 2022 and were signed on it's behalf by:

Mr Julian Richer - Trustee

…...................................

Canon P J Warry - Trustee

…...................................

9

ACTS 435 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2021

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
1
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITES
Purchase of tangible fixed assts
Purchase of intangible fixed assts
Interest recevied
Net cash (used in)/provided by investing activities
CHANGE IN CASH AND CASH EQUIVALENTS
IN THE REPORTING PERIOD
Cash and cash equivalents at the beginning of
the reporting period
CASH AND CASH EQUIVALENTS AT THE END
OF THE REPORTING PERIOD		 2021
£
7,024
7,024
-
(28,800)
8
(28,792)
(21,768)
74,314
52,546		 2020
£
57,002
57,002
(299)
-
47
(252)
56,750
17,564
74,314

10

ACTS 435 NOTES TO THE STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOWS
FROM OPERATING ACTIVITIES 2021 2020
£ £
Net income for the reporting period (as per the
Statement of Financials Activities) 6,836 72,083
Adjustments for:
Depreciation charges 100 100
Interest received (8) (47)
Decrease/(Increase) in debtors 46,004 (66,878)
Increase/(Decrease) in creditors (45,908) 51,744
Net cash flow provided by operations 7,024
£		 57,002
£
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand 52,546 74,314
52,546
£		 74,314
£
Cash and cash equivalents amounting to £18,127 (2020:£42,492) related to restricted funds.
ANALYSIS OF CHANGES IN NET FUNDS At 01/08/20 Cash Flow At 31/07/21
Cash at bank £
74,314		 £
(21,768)		 £
52,546
Total 74,314
£		 (£ 21,768) 52,546
£

11

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. ACCOUNTING POLICIES

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

a) Legal entity

Acts 435 is regulated by the Charity Commission (1131305), limited by guarantee and is registered in England and Wales. The address of the registered office and principal place of business is Gateway Church, The Gateway Centre, Front Street, Acomb, York, YO24 3BZ. The Charity is also registered in Scotland (SC042550).

b) Basis of preparing the 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 accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK, the Companies Act 2006, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

ACTS435 meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The accounts are presented in UK Sterling pounds (£).

c) Going concern

As described in the Annual Report of the Trustees, special consideration has been given to the COVID-19 pandemic impact. The Trustees/Directors have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the Charitable Company to continue in operational existence for the foreseeable future, and have adequate contingency plans in the event that income streams are reduced. Consequently the financial statements have been prepared on the basis that the Charitable Company is a going concern.

d) Income

Donations

Donations receivable for the general purpose of the Charity are credited to "unrestricted funds". Donations for purposes restricted by the wishes of the donor are taken to "restricted funds" where these wishes are legally binding on the Trustees.

Other trading activities

All other incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Investment income

Investment income has been accounted for on a cash receipt basis.

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ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. ACCOUNTING POLICIES - continued

e) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate.

Governance costs are costs associated with constitutional and statutory requirements. They include audit fees and estimated costs linked to the strategic management of the Charity. Support costs are those incurred directly in support of expenditure on the objects of the Charity.

Grants payable to individuals are recognised as payable from the point at which the corresponding donation is received via the charity's website. Details of the specific requests pending receipt of the full amount of the donation, and amounts held by churches to dispense to applicants are disclosed in the notes to the financial statements.

f) Tangible fixed assets

Tangible fixed assets are included in the financial statements at their historical cost.

Depreciation is calculated to write off the cost of fixed assets over their expected useful lives on a straight line basis. The rates used are as follows:

Computer equipment

g) Intangible fixed assets

Intangible fixed assets are included in the financial statements at their historical cost.

Amortisation is calculated to write off the cost of fixed assets over their expected useful lives on a straight line basis. The rates used are as follows:

Website - 20% straight line

Amortisation is included within support costs under charitable activities on the Statement of Financial Activity.

h) Taxation

As a registered charity, Acts 435 is exempt from the tax on income falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to its charitable objects. No tax charges have arisen in the Company.

i) Fund accounting

Funds comprise unrestricted funds which have not been designated for other purposes, and are available for use at the discretion of the Trustees in accordance with the charitable objectives. Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

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ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. ACCOUNTING POLICIES - continued

j) Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

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

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting 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 normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

3. DONATIONS AND LEGACIES
Donations
Gift aid		 Unrestricted
Funds
£
-
128,373
£ 128,373		 Restricted
Funds
£
925,553
-
£ 925,553		 2021
2020
£
£
925,553
590,365
128,373
99,030
£ 1,053,926
£ 689,395
Total Funds

In 2020 the amount of donations and legacies which related to restricted funds was £590,365.

NVESTMENT INCOME
Deposit account interest		 Unrestricted
Funds
£
8
£ 8		 Restricted
Funds
£
-
£ -		 2021
2020
£
£
8
47
£ 8
£ 47
Total Funds

4. INVESTMENT INCOME

In 2020 the amount of investment income which related to restricted funds was £Nil.

AISING FUNDS
Staff costs
Public relations, marketing		 Unrestricted
Funds
£
14,000
32
£ 14,032		 Restricted
Funds
£
-
-
£ -		 2021
2020
£
£
14,000
22,182
32
7,336
£ 14,032
£ 29,518
Total Funds

5. RAISING FUNDS

In 2020 the amount of expenditure on raising funds which related to restricted funds was £Nil.

6. GRANTS PAYABLE

RANTS PAYABLE
Grants payable to individuals		 2021
£
971,131
£ 971,131		 2020
£
551,858
£ 551,858

Grants to individuals comprises £876,073 (2020: £538,865) given to meet specific requests - limited to £150 - listed on the Acts 435 website and £95,058 (2020: £12,993) for the Larger Gifts programme run in partnership with Stewardship.

In 2020 the amount of grants payable which related to restricted funds was £551,858.

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ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

7. SUPPORT COSTS
Governance
Administration
Costs
£
£
Charitable support and governance costs
56,432
5,503
£ 56,432
£ 5,503
Administration
Unrestricted
Restricted
Funds
Funds
£
£
Wages
41,405
-
Pensions
697
-
Office facility fee
-
-
Bank and online donation fees
10,887
-
IT and technical support
1,992
-
Telephone
183
-
Printing, postage & stationery
1,017
-
Sundries
55
-
Travelling
96
-
Depreciation of tangible assets
100
-
£ 56,432
£ -		 2021
2020
£
£
61,935
£ 35,983
£ 61,935
£ 35,983
2021
2020
£
£
41,405
19,834
697
206
-
316
10,887
6,966
1,992
3,131
183
359
1,017
589
55
25
96
84
100
100
£ 56,432
£ 31,610
Total Funds
Total

In 2020 the amount of administation costs which related to restricted funds was £Nil.

Governance costs
Accountancy and external scrutiny fees
Legal fees
Insurance		 Unrestricted
Funds
£
4,520
63
920
£ 5,503		 Restricted
Funds
£
-
-
-
£ -		 2021
2020
£
£
4,520
3,523
63
13
920
837
£ 5,503
£ 4,373
Total Funds

In 2020 the amount of governance costs which related to restricted funds was £Nil.

16

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Depreciation - owned assets 100 100
Audit fees 4,251 3,163
Other accountancy/payroll fees 269 270

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no Trustees' renumeration or other benefits for the year ended 31 July 2021 (2020: Nil).

Trustees' expenses

There were no Trustees' expenses paid for in the year ended 31 July 2021 (2020: Nil).

10.
STAFF COSTS
Wages and salaries
Other pension costs		 2021
£
55,269
832
56,101		 2020
£
41,648
574
42,222

The average monthly number of employees during the year was as follows:

2021 2020
Employees 5 4

No employees received emoluments in excess of £60,000.

The Executive Director is considered to represent the key management personnel of the charity.

Total compensation of £19,625, inclusive of employer national insurance and pension contributions was paid in the year (2019: £19,312).

17

ACTS 435 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021 - continued

11. COMPARITIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations, legacies and grants
Investment income
TOTAL INCOME
EXPENDITURE ON
Raising funds
Charitable activities
Grants payable to individuals
Charitable support and governance costs
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
Transfer between funds
NET MOVEMENT BETWEEN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
99,030
47
99,077
29,518
-
35,983
65,501
33,576
(350)
33,226
25,516
£ 58,742		 Restricted
Funds
£
590,365
-
590,365
-
551,858
-
551,858
38,507
350
38,857
1,180
£ 40,037		 2020
2019
£
£
689,395
518,333
47
-
689,442
518,333
29,518
14,488
551,858
449,885
35,983
46,692
617,359
511,065
72,083
7,268
-
-
72,083
7,268
26,696
19,428
£ 98,779
£ 26,696
Total Funds

18

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

12. TANGIBLE FIXED ASSETS
Cost:
At 1 August 2020
Additions
At 31 July 2021
Depreciation:
At 1 August 2020
Charge for the year
At 31 July 2021
Net book values:
At 31 July 2021
At 31 July 2020
13. INTANGIBLE FIXED ASSETS
Cost:
At 1 August 2020
Additions
At 31 July 2021
Amortisation:
At 1 August 2020
Charge for the year
At 31 July 2021
Net book values:
At 31 July 2021
At 31 July 2020		 Existing
Website
£
16,214
-
16,214
16,214
-
16,214
£ -
£ -		 Computer
equipment
£
4,827
-
4,827
4,628
100
4,728
£ 99
£ 199
New
Website
-
28,800
28,800
-
-
-
£ 28,800
£ -		 Total
£
4,827
-
4,827
4,628
100
4,728
£ 99
£ 199
Total
£
16,214
28,800
45,014
16,214
-
16,214
£ 28,800
£ -

19

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

14.DEBTORS
Other debtors - Amounts held by churches/local charities
Tax - Gift Aid receivable
15. CREDITORS amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
Grants payable
16. MOVEMENT IN FUNDS
Balance
b/f at
Incoming
01/08/20
Resources
£
£
Unrestricted funds
General funds
58,742
128,381
Restricted funds
Donations
1,850
855,390
Larger Gifts
38,187
70,163
40,037
925,553
Total funds
£ 98,779
£ 1,053,934
Balance
b/f At
Incoming
01/08/19
Resources
£
£
Unrestricted funds
General funds
25,516
99,077
Restricted funds
Donations
-
540,365
Larger Gifts
1,180
50,000
1,180
590,365
Total funds
£ 26,696
£ 689,442
Comparatives for
movement in funds		 Resourced
Expenditure
£
(75,967)
(876,073)
(95,058)
(971,131)
(£ 1,047,098)
Resourced
Expenditure
£
(65,501)
(538,865)
(12,993)
(551,858)
(£ 617,359)		 2021
£
43,257
34,931
£ 78,188
2021
£
580
371
187
4,788
48,092
£ 54,018
Transfers
Between
Funds
£
(18,833)
18,833
-
18,833
£ -
Transfers
Between
Funds
£
(350)
350
-
350
£ -		 2020
£
93,190
31,002
£ 124,192
2020
£
-
361
139
3,781
95,645
£ 99,926
Balance
c/f at
31/07/21
£
92,323
-
13,292
13,292
£ 105,615
Balance
c/f at
31/07/2020
£
58,742
-
1,850
38,187
40,037
£ 98,779

20

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

16. MOVEMENT IN FUNDS - continued

Restricted funds

Donations

Restricted donations are those given towards requests posted online. Where a specific request has been donated to, the funds will go to that specific individual. Where a general donation towards requests has been given, Acts 435 allocates these funds to specific requests. Each request is a maximum of £150.

As at 31 July 2021 there was £4,835 (2020: £2,455) of donations given to specific requests pending receipt of the full amount before sending to the appropriate church or local charity, and a further £39,757 (2020: £91,577) held by, or in the process of being transferred to, different churches or local charities to dispense to applicants.

Larger gifts

A special appeal was run with the help of Stewardship in October 2018, to meet 5 needs larger than those run on the normal Acts 435 website. This appeal was generously supported, and extra funds were raised and have continued to be given. A Larger Gifts fund has therefore been established whereby advocates can apply to Acts 435 for help with a larger need for someone in their local community where there are no funds to help them, and the need exceeds those they can post directly onto the Acts 435 website.

As as 31 July 2021 there was £3,500 (2020: £1,613) of donations held by different churches or local charities to dispense to applicants.

Transfers between funds

Where requests are expiring and the full amount has not been met by external donors, the Acts 435 team applies general funds to make up these amounts, using a debit card and making the donation online in the same way external donors do. This is shown as a transfer from unrestricted to restricted funds which is considered to most accurately reflect the substance of these transactions.

Similarly, transfers have been made from general funds to support needs met from the Larger Gifts fund.

21

ACTS 435 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 - continued

17. ANALYSIS OF FUNDS

Current Year
Unrestricted funds
Restricted funds
Prior Year
Unrestricted funds
Restricted funds		 Tangible
fixed
assets
£
99
-
99
199
-
199		 Intangible
fixed
assets
£
28,800
-
28,800
-
-
-		 Current
assets
£
69,350
61,384
130,734
158,469
40,037
198,506		 Current
liabilities
£
(5,926)
(48,092)
(54,018)
(99,926)
-
(99,926)		 Total
£
92,323
13,292
105,615
58,742
40,037
98,779

18. RELATED PARTY DISCLOSURES

During the year Acts 435 received a charitable grant of £Nil (2020: £4,988) from The Persula Foundation, a charity of which Julian Richer is also a Trustee.

There have been no transactions with related parties in the current year.

22