## **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. 

1 



**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. 

2 



**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. 

3 



**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 

4 



## **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: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 5005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. 

## **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 

- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements. 

## **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: 

- adequate accounting records have not been kept or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit 

- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. 

## **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**<br>**INCOME AND ENDOWMENTS FROM**<br>Donations, legacies and grants<br>3<br>Investment income<br>4<br>**TOTAL INCOME**<br>**EXPENDITURE ON**<br>Raising funds<br>5<br>**_Charitable activities_**<br>Grants payable to individuals<br>6<br>Charitable support and governance costs<br>7<br>**TOTAL EXPENDITURE**<br>**NET INCOME/(EXPENDITURE)**<br>Transfer between funds<br>16<br>**NET MOVEMENT BETWEEN FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**<br>**Funds**<br>**_£_**<br>128,373<br>8<br>128,381<br>14,032<br>-<br>61,935<br>75,967<br>52,414<br>(18,833)<br>33,581<br>58,742<br>**£ 92,323**|**Restricted**<br>**Funds**<br>**_£_**<br>925,553<br>-<br>925,553<br>-<br>971,131<br>-<br>971,131<br>(45,578)<br>18,833<br>(26,745)<br>40,037<br>**£ 13,292**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>**1,053,926**<br>689,395<br>**8**<br>47<br>**1,053,934**<br>689,442<br>**14,032**<br>29,518<br>**971,131**<br>551,858<br>**61,935**<br>35,983<br>**1,047,098**<br>617,359<br>**6,836**<br>72,083<br>**-**<br>-<br>**6,836**<br>72,083<br>**98,779**<br>26,696<br>**£ 105,615**<br>**£ 98,779**<br>**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**<br>**Fund**<br>**FIXED ASSETS**<br>Tangible fixed assets<br>12<br>99<br>Intangible fixed assets<br>13<br>28,800<br>28,899<br>**CURRENT ASSETS**<br>Debtors<br>14<br>34,931<br>Cash at bank and in hand<br>34,419<br>69,350<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>5,926<br>**NET CURRENT ASSETS**<br>63,424<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>92,323<br>**NET ASSETS/(LIABILITIES)**<br>**£ 92,323**<br>**REPRESENTED BY**<br>Unrestricted funds<br>16<br>92,323<br>Restricted funds<br>16<br>-<br>**£ 92,323**|**Restricted**<br>**Fund**<br>-<br>-<br>-<br>43,257<br>18,127<br>61,384<br>48,092<br>13,292<br>13,292<br>**£ 13,292**<br>-<br>13,292<br>**£ 13,292**|**2021**<br>**_£_**<br>99<br>28,800<br>28,899<br>78,188<br>52,546<br>130,734<br>54,018<br>76,716<br>105,615<br>**£ 105,615**<br>92,323<br>13,292<br>**£ 105,615**|**2020**<br>**_£_**<br>199<br>-<br>199<br>124,192<br>74,314<br>198,506<br>99,926<br>98,580<br>98,779<br>**£ 98,779**<br>58,742<br>40,037<br>**£ 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**<br>**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Cash generated from operations<br>1<br>Net cash provided by operating activities<br>**CASH FLOWS FROM INVESTING ACTIVITES**<br>Purchase of tangible fixed assts<br>Purchase of intangible fixed assts<br>Interest recevied<br>Net cash (used in)/provided by investing activities<br>**CHANGE IN CASH AND CASH EQUIVALENTS**<br>**IN THE REPORTING PERIOD**<br>Cash and cash equivalents at the beginning of<br>the reporting period<br>**CASH AND CASH EQUIVALENTS AT THE END**<br>**OF THE REPORTING PERIOD**|**2021**<br>**_£_**<br>7,024<br>7,024<br>-<br>(28,800)<br>8<br>(28,792)<br>**(21,768)**<br>**74,314**<br>**52,546**|**2020**<br>**_£_**<br>57,002<br>57,002<br>(299)<br>-<br>47<br>(252)<br>**56,750**<br>17,564<br>**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**<br>**£**|**57,002**<br>**£**|
||**ANALYSIS OF CASH AND CASH EQUIVALENTS**||||
||Cash at bank and in hand||52,546|74,314|
||||**52,546**<br>**£**|**74,314**<br>**£**|
||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|**_£_**<br>74,314|**_£_**<br>(21,768)|**_£_**<br>52,546|
||**Total**|**74,314**<br>**£**|**(£ 21,768)**|**52,546**<br>**£**|
||||||



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. 

12 



## **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 

- 33.3% straight line 

## **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. 

13 



## **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. 

14 



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

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



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

|**NVESTMENT INCOME**<br>Deposit account interest|**Unrestricted**<br>**Funds**<br>**_£_**<br>8<br>£ 8|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>£ -|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>8<br>47<br>£ 8<br>£ 47<br>**Total Funds**|
|---|---|---|---|



## **4. INVESTMENT INCOME** 

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

|**AISING FUNDS**<br>Staff costs<br>Public relations, marketing|**Unrestricted**<br>**Funds**<br>**_£_**<br>14,000<br>32<br>£ 14,032|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>£ -|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>14,000<br>22,182<br>32<br>7,336<br>£ 14,032<br>£ 29,518<br>**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**<br>Grants payable to individuals|**2021**<br>**_£_**<br>971,131<br>£ 971,131|**2020**<br>**_£_**<br>551,858<br>£ 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. 

15 



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

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



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

|**Governance costs**<br>Accountancy and external scrutiny fees<br>Legal fees<br>Insurance|**Unrestricted**<br>**Funds**<br>**_£_**<br>4,520<br>63<br>920<br>£ 5,503|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>£ -|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>4,520<br>3,523<br>63<br>13<br>920<br>837<br>£ 5,503<br>£ 4,373<br>**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.**<br>**STAFF COSTS**<br>Wages and salaries<br>Other pension costs|**2021**<br>**_£_**<br>55,269<br>832<br>56,101|**2020**<br>**_£_**<br>41,648<br>574<br>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**<br>Donations, legacies and grants<br>Investment income<br>**TOTAL INCOME**<br>**EXPENDITURE ON**<br>Raising funds<br>**_Charitable activities_**<br>Grants payable to individuals<br>Charitable support and governance costs<br>**TOTAL EXPENDITURE**<br>**NET INCOME/(EXPENDITURE)**<br>Transfer between funds<br>**NET MOVEMENT BETWEEN FUNDS**<br>Total funds brought forward<br>**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**<br>**Funds**<br>**_£_**<br>99,030<br>47<br>99,077<br>29,518<br>-<br>35,983<br>65,501<br>33,576<br>(350)<br>33,226<br>25,516<br>**£ 58,742**|**Restricted**<br>**Funds**<br>**_£_**<br>590,365<br>-<br>590,365<br>-<br>551,858<br>-<br>551,858<br>38,507<br>350<br>38,857<br>1,180<br>**£ 40,037**|**2020**<br>**2019**<br>**_£_**<br>**_£_**<br>**689,395**<br>518,333<br>**47**<br>-<br>**689,442**<br>518,333<br>**29,518**<br>14,488<br>**551,858**<br>449,885<br>**35,983**<br>46,692<br>**617,359**<br>511,065<br>**72,083**<br>7,268<br>**-**<br>-<br>**72,083**<br>7,268<br>**26,696**<br>19,428<br>**£ 98,779**<br>**£ 26,696**<br>**Total Funds**|
|---|---|---|---|



18 



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

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



19 



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

|**14.DEBTORS**<br>Other debtors - Amounts held by churches/local charities<br>Tax - Gift Aid receivable<br>**15. CREDITORS amounts falling due within one year**<br>Trade creditors<br>Social security and other taxes<br>Other creditors<br>Accrued expenses<br>Grants payable<br>**16. MOVEMENT IN FUNDS**<br>**Balance**<br>**b/f at**<br>**Incoming**<br>**01/08/20**<br>**Resources**<br>**£**<br>**£**<br>**Unrestricted funds**<br>General funds<br>58,742<br>128,381<br>**Restricted funds**<br>Donations<br>1,850<br>855,390<br>Larger Gifts<br>38,187<br>70,163<br>40,037<br>925,553<br>**Total funds**<br>£ 98,779<br>£ 1,053,934<br>**Balance**<br>**b/f At**<br>**Incoming**<br>**01/08/19**<br>**Resources**<br>**£**<br>**£**<br>**Unrestricted funds**<br>General funds<br>25,516<br>99,077<br>**Restricted funds**<br>Donations<br>-<br>540,365<br>Larger Gifts<br>1,180<br>50,000<br>1,180<br>590,365<br>**Total funds**<br>£ 26,696<br>£ 689,442<br>**Comparatives for**<br>**movement in funds**|**Resourced**<br>**Expenditure**<br>**£**<br>(75,967)<br>(876,073)<br>(95,058)<br>(971,131)<br>(£ 1,047,098)<br>**Resourced**<br>**Expenditure**<br>**£**<br>(65,501)<br>(538,865)<br>(12,993)<br>(551,858)<br>(£ 617,359)|**2021**<br>**_£_**<br>43,257<br>34,931<br>£ 78,188<br>**2021**<br>**_£_**<br>580<br>371<br>187<br>4,788<br>48,092<br>£ 54,018<br>**Transfers**<br>**Between**<br>**Funds**<br>**£**<br>(18,833)<br>18,833<br>-<br>18,833<br>£ -<br>**Transfers**<br>**Between**<br>**Funds**<br>**£**<br>(350)<br>350<br>-<br>350<br>£ -|**2020**<br>**_£_**<br>93,190<br>31,002<br>£ 124,192<br>**2020**<br>**_£_**<br>-<br>361<br>139<br>3,781<br>95,645<br>£ 99,926<br>**Balance**<br>**c/f at**<br>**31/07/21**<br>**£**<br>92,323<br>-<br>13,292<br>13,292<br>£ 105,615<br>**Balance**<br>**c/f at**<br>**31/07/2020**<br>**£**<br>58,742<br>-<br>1,850<br>38,187<br>40,037<br>£ 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_**<br>Unrestricted funds<br>Restricted funds<br>**_Prior Year_**<br>Unrestricted funds<br>Restricted funds|**Tangible**<br>**fixed**<br>**assets**<br>**£**<br>99<br>-<br>99<br>199<br>-<br>199|**Intangible**<br>**fixed**<br>**assets**<br>**£**<br>28,800<br>-<br>28,800<br>-<br>-<br>-|**Current**<br>**assets**<br>**£**<br>69,350<br>61,384<br>130,734<br>158,469<br>40,037<br>198,506|**Current**<br>**liabilities**<br>**£**<br>(5,926)<br>(48,092)<br>(54,018)<br>(99,926)<br>-<br>(99,926)|**Total**<br>**£**<br>92,323<br>13,292<br>105,615<br>58,742<br>40,037<br>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