**Innervation Trust Limited** (A Company Limited by Guarantee)
## **Trustees’ Annual Report and Unaudited Financial Statements**
## **Year Ended 31[st] December 2021**
Company Number 06727979
Registered Charity Number 1131757
**Innervation Trust Limited**
|**Contents**|**Pages**|
|---|---|
|Trustees’ Annual Report|2 to 10|
|Report of the Independent Examiner|11 to 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Notes to the Financial Statements|15 to 28|
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**Innervation Trust Limited**
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
The Trustees present their report together with the financial statements of the charity for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 (page 15) and comply with the Charity’s Trust Deed, the Charities Act 2011 and 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 (FRS102) (effective January 2019) and applicable law.
## **Reference and Administrative Information**
Registered Name: Innervation Trust Limited Charity Number: 1131757 Registered and Principal Office: Unit 27 Cotteswold Dairy Dairy Way Tewkesbury Gloucestershire GL20 8JE Company Number: 06727979 Trustees/Directors: Bishop Roger Morris (Chairman) Helen Springett Rev Mark Badger Sarah Belcher (resigned 4[th] May 2021) William Mansell (appointed 17[th] March 2022) Phillip Simpson (appointed 29[th] June 2021) Bankers: National Westminster Bank 10 Great Underbank Stockport SK1 1LL Independent Examiner: Elizabeth Eyre FCA Elizabeth Eyre Limited 6 Bank Street Malvern WR14 2JN Key Management: Miriam Porter (Director of iSingPOP), Clare Morgan (Assistant Director) Sarah Haughan
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## **Innervation Trust Limited**
## (Senior Area Manager) Becki Ross (Senior Area Manager), Lorraine Pearson (Admin Lead) **Trustees’ Annual Report Year Ended 31[st] December 2021**
## **Objectives and Activities**
The object of the charity, as set out in the Memorandum and Articles of Association is the advancement of the Christian faith.
To deliver the charitable object, the Trust offers a range of music-related charitable services to churches and schools through its flagship schools programme, iSingPOP. The aim is to present the Christian message and the positive values it promotes in a way to which children and young people can relate.
There are 3 main values underpinning our projects. Firstly, it is about sharing the good news of our Christian faith. Secondly, we are passionate about great music. We use fun, modern pop songs specifically written for our projects which are based around great values and themes. Thirdly iSingPOP is about community. Our projects aim to bring school, church and home together through a community project that is uplifting and promotes joy and togetherness.
## **Achievements and Performance**
For the first 8 months of 2021, the pandemic continued to play havoc with the ‘normal’ running of schools, with a further lockdown in January and then the mandate of ‘bubble’ working from Easter. This significantly affected our core project “The Main Event’ as we were unable to work, in person, in any school before September.
During these 8 months, many of our administrative support team remained on furlough, though with some flexible working hours undertaken to continue to liaise with schools through the uncertainty.
Despite the difficulty of this period, these months did, however, give us the opportunity to further develop and promote our new digital resources.
## **Classroom Worship**
Due to popular demand from the schools, we decided to continue offering Classroom Worship throughout 2021. Classroom Worship was incredibly well received from an ever-growing number of schools as it provided an opportunity for all stakeholders to take part in, and engage with, fun and meaningful collective worship despite the fractured nature schools found themselves operating in. Classroom Worship became its own longer-term project this year, and we found that it has greatly enhanced the work of “The Main Event”. The children are so excited after watching the team each week that when our team arrive in school, they already feel like they already know
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**Innervation Trust Limited**
them. This means that the children are excited and engaged with the project before we even step foot into the school on day 1.
Classroom Worship is an exciting resource designed to unite the whole school, even though children may be working in smaller bubbles or learning from home.
Once-a-week, 20-minute sessions involve almost no preparation in advance and are differentiated for Key Stage 1 and Key Stage 2 where necessary.
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
Each act of collective worship includes:
- An animated Bible Story
- A reflection on the theme
- An interactive prayer activity
- An iSingPOP dance routine to learn and practice
- The Lord’s Prayer
On average in 2021, over 75,000 children, their parents and school staff worshipped with Classroom Worship each and every week.
## Classroom Worship Feedback:
“We have been using the resources on our home learning platform and in school for class worship and from my perspective, they have saved me so much time, which has been a life saver. They are brilliant quality and really engaging for staff and pupils and I think they have also helped to break the stigma that collective worship is 'stuffy and dry' for parents.” **Headteacher** “First off, I sat in a meeting with RE Hub Leads from all over the Diocese and they were all raving about the iSingPOP Collective Worship resources and asked us to pass along a huge thank you! They say that siblings/parents and everyone at home are fully engaging.” **Collective Worship Lead** “Our children love iSingPOP, from Reception right through to Year 6. During the last year, when whole school worship was not possible it was nice to share a resource that the whole school could use but in our classroom bubbles - the next best thing to sharing as a whole school. We also shared the videos with families at home and they very much enjoyed watching the worship videos together and taking part in the activities. We have continued to use the resource even though we are back to whole school worship as the children enjoyed them so much.” **Headteacher**
Classroom Worship has now become a distinctive part of the iSingPOP brand and something we are keen to grow and develop further in the future.
## **Faithathome**
www.isingpop.org/faithathome
Seeing the quality of our digital work during the pandemic, we were invited by Andy Wolfe (Deputy Chief Education Officer) to partner with the Church of
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**Innervation Trust Limited**
England as primary lead to script and present a set of collective worship video resources called FaithatHome.
Our Media Team carried on working throughout Spring and Summer 2021 on series 3 & 4 of FaithatHome, a primary and secondary school offering which covered topics including Lent, Pentecost, Easter, Modern Day Slavery, Bullying, Diversity & Inclusion.
FaithatHome is a national campaign that builds on the work of Growing Faith and Everyday Faith to support the development of faith and pastoral care of children and young people.
https://youtu.be/2tYxqdbnLyc?t=11
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
## **Easter Watch Party**
After the success of the Christmas Watch Party we offered in 2020, we also decided to put together a set of interactive Easter digital resources so that schools could film their children to be able to put on their own Easter Watch Party, allowing families and community to engage with their school and church at this important time of year, despite high Covid cases, school closures and bubble working. At a time when people could not gather in groups iSingPOP’s Easter Watch Parties enabled families to hear the hope of Easter and the good news of Jesus in their own homes.
## **Diocese Leavers’ Services**
In Summer 2021 we helped both Chelmsford and Lincoln Dioceses produce digital resources for their Leavers’ Services. We also filmed and edited a service for over 100 Gloucester Diocese schools, including a live action/animation hybrid of Bob Hartman’s lost sheep story.
## **Back In School**
Periodically throughout the year, and as furlough ended, our Operations Team spent hours organising and reorganising the postponed schools' projects.
Finally in Autumn 2021, we started working back in schools. This was not all plain sailing due to various Covid outbreaks and numerous alterations and last-minute changes needing to be navigated. Having said this, we have been overwhelmed by the response to our work we have seen in the schools we have visited. After two years of lengthy separation, in many schools iSingPOP has been the event to reunite the school, home and church communities once again through our week-long projects, culminating in a community concert in the local church.
We had great feedback from the schools who were so happy to be able to celebrate and sing together after such a long time. It was very emotional as
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many concerts were the first opportunity communities had had to see each other that year.
## iSingPOP Main Event Feedback
"We really did have a fabulous time and I really felt everyone was much more connected afterwards. It was a truly wonderful experience and that was only because you were such a brilliant teacher. The parents absolutely loved it! We sing iSingPOP songs most days. The Y1 children always ask for... Wait for it... FEVER forever!!!!!!!!!! It makes me chuckle so much!" **- Helen Webb, Headteacher – Colwall**
## **Christmas Songs**
We introduced three brand new Christmas songs into our current Christmas set in 2021. It was wonderful to be able to use them to share the “Story of Christmas” with the children in school. Quite a few of the services had to be either postponed or filmed and watched from home as Covid was on the rise again at the end of the year and schools were being very cautious about **Trustees’ Annual Report Year Ended 31[st] December 2021**
larger gatherings. Despite these difficulties, our Christmas projects were hugely successful and we are already booking up for the Christmas period of 2022.
## **Summary**
In 2021, we were delighted to be able to work with 32 schools and shared the Christian faith with over 25,000 children, families and school staff through our in-person “Main Event” project in Autumn of 2021. When this is considered alongside the 75,000 children worshipping with Classroom Worship each week, we had an approximate impact on the lives of over 100,000 people in 2021. We are profoundly grateful for these opportunities and consider this fulfillment of our charitable objectives.
## **Strategic Report**
## Financial Results
Innervation Trust Limited receives its funding from three sources: voluntary income and grants, income from schools’ weeks projects and income from the sale of music and merchandise. This year we also took advantage of the government Coronavirus Support Package with the Job Retention Scheme.
Total donation and grant income, including Gift Aid amounted to £175,079 (2020: £204,243).
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**Innervation Trust Limited**
‘Income from Charitable Activities’ in the accounts, shown as £113,805 (2020: £88,851).
Expenditure on Charitable Activities has increased to £256,865 in 2021 compared to £251,049 in 2020. This is due to steps taken by the trust to sure up finances during the pandemic, alongside the schools closing. Total income exceeded expenditure in the period by £23,351 (2020: £32,914). This all related to unrestricted funds.
## Principal Risks and Uncertainties
The Trustees have identified the major risks to which the charity is exposed and have put in place processes and procedures to ensure that such risks are mitigated as far as possible. The principal risks are identified as:
- Covid 2019 - When it became clear that the iSingPOP project was going to be a significant risk factor in spreading Covid 19 and the school's shutdown we realised we would have to hibernate the iSingPOP Experience. The trustees and key staff took steps immediately to sure up the finances. All staff apart from the director and one of our creative team were furloughed, a government small business grant was
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
sort and when it became clear that the pandemic was going to carry on into the new academic year the office and all the regional lock ups were closed. The director immediately contacted all major donors to share our vision and plans during the pandemic and the initial lockdown. This enabled us to utilise our freelancers, alongside our creative team to start online resources, initially this was in the form of a weekly YouTube episode, then we were given then working with the Church of England of their #faithathome initiative. When school bubbles arrived, and we realised the need for help with Collective Worship in a classroom setting Classroom Worship was born. This has enabled us to continue with our trusts aims, alongside bringing back some key staff and giving much needed work to our freelance project leaders. With the furlough scheme we have not needed to lay off any staff in 2020 or 2021.
- Retention of Key Staff - As we have a lot of freelancers in the arts industry, we were concerned that they would leave the industry, due to the restrictions Covid 19 has placed on their work. To mitigate this, we have where we can give them opportunity and drawn on the pool of talent to work with us on the on the new
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**Innervation Trust Limited**
digital media. This has been a wonderful experience as they have been crucial in the
scripting and production of our new digital media, and we are now built a creative/media team which just makes our project stronger.
- Retention of Supporters – We were concerned at the start of the pandemic that we would lose key support; we have endeavoured to send out regular clear communication, via mailouts, social media and zoom events. This has meant we have retained a lot of our key partners and in some cases, they have increased their support. We are so thankful for all our support partnerships.
## Resources
The key resources of the trust are its incredibly talented and motivated staff, project workers and technical assistants as well as excellent creative talent in the form of song writing ability. The iSingPOP Ambassadors are working well and increasing our reach in schools. The trust has a significant catalogue of songs tailored for use in the iSingPOP programme. In September 2021, the trust employed a videographer and partnered with a media consultant, this has been key to developing digital resources during the pandemic.
## Reserves Policy
Last year we committed to improving our financial position and building reserves to cover three months expenditure over the next three years, as soon as the pandemic hit, we shored up our finances, that alongside our extremely generous donors and support network has enabled us throughout the pandemic to continue towards this goal.
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
## The Future
We still have a large number of schools waiting for us to rebook postponed projects and enquiries for new bookings are starting to come in. We are looking forward to going back into schools in 2022 to run the core project, alongside building on the last year success of Classroom Worship.
We plan to continue creating fun, interactive, inspirational Christian resources to serve children, parents, teachers, and churches right across the UK. Both will work hand in hand creating a stronger project and giving us further reach to share to good news of the gospel and the hope it brings with more schools' churches and communities than ever before.
## **Going Concern**
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**Innervation Trust Limited**
Over the year, income exceeded expenditure by £23,351 resulting in unrestricted funds of £44,056 at 31[st] December 2021. There were no restricted funds at that date.
Due to the pandemic, and the kindness of our supporter we halted loan repayments in March, so the loans remain at £17,500, which we plan to start repaying once the project resumes.
The trustees have prepared projections of the income and expenditure of the charity for 2022 and 2023. The management team are confident that, with the resumption of projects, the new digital resources and the support of existing donors, the charity has sufficient cash to meet its liabilities as they fall due.
## **Structure, Governance and Management**
Innervation Trust Limited is a company limited by guarantee and is a registered charity governed by its Memorandum and Articles of Association and the compliance requirements of the Companies Acts and the Charities Act.
The governance of the Charity is provided through a group of appointed Trustees who are also company directors and who give their time, expertise and energies to ensure that the work of the Charity makes a positive difference in fulfilling its charitable objectives.
New Trustees are appointed by existing trustees and given appropriate induction and training on appointment.
Trustees who served in the period and up to the date of signing this report are listed on page 2.
Day to day management of the Trust's operations is delegated to the operational directors and senior staff who are not Trustees. The operational director and senior staff who served in the year
were: Miriam Porter, Becki Ross, Clare Morgan, Sarah Haughan and Lorraine Pearson. The Trust occasionally makes use of volunteers to ensure its projects are delivered successfully.
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
## **Related Parties**
There were a number of transactions with related parties during the year. These are more fully disclosed in note 22 on page 26.
In addition, the Trust has a subsidiary company, Innervation Trading Company Limited. Innervation Trading was set up to process commercial transactions
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arising out of the charitable activities of the Trust. Transactions with this company are more fully disclosed in note 22 on page 26.
## **Public Benefit**
The Trustees are aware of the Charity Commission’s guidance on public benefit. The work of the charity and the funds it raises are wholly directed towards the objectives as set out on page 3 and the Trustees hold the view that the charity meets the criteria laid down for meeting the public benefit test.
## **Trustees’ Responsibilities**
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP), including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year that 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 the financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable 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 Charity’s constitution. They 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.
## **Trustees’ Annual Report Year Ended 31[st] December 2021**
## **Trustees’ Responsibilities (Cont’d)**
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## **Innervation Trust Limited**
The trustees are responsible for the maintenance and integrity of the financial information included in the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.
The Trustees’ Report and the Strategic Report were approved by the Board on September 2022 and signed on its behalf by
Roger Morris Chair of Trustees
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**Innervation Trust Limited**
## **Independent Examiner’s Report Year Ended 31[st] December 2021**
I report to the charity trustees on my examination of the accounts of Innervation Trust Limited for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
As the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination by being a qualified member of Institute of Chartered Accountants, England and Wales.
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 386 of the 2006 Act and section 130 of the 2011 Act; or
- the accounts did not accord with those records; or
- the accounts did not comply with the applicable accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 and under section 396 of the 2006 Act 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; or
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- the accounts have not been prepared in accordance with the Charities SORP (FRS 102).
## **Independent Examiner’s Report Year Ended 31[st] December 2021**
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.
**Elizabeth Eyre Chartered Accountant** Elizabeth Eyre Limited Bank Street Business Centre 6 Bank Street Malvern WR14 2JN
Date 2022
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## **Innervation Trust Limited**
## **Statement of Financial Activities (Incorporating an Income and Expenditure Account) Year Ended 31[st] December 2021**
|NotesUnrestricted|NotesUnrestricted|NotesUnrestricted|Restricted|**Total**|Total|
|---|---|---|---|---|---|
|||Funds|Funds|**2021**|2020|
|||£|£|**£**|£|
|**INCOME FROM**||||||
|Donation and grant income|3|175,079|-|**175,079**|204,243|
|Charitable Activities|4|113,805|-|**113,805**|88,851|
|Other Trading Activities|5|-|-|**-**|-|
|Investment Income||-|-|**-**|-|
|**TOTAL INCOME**||288,884|-|**288,884**|293,094|
|**EXPENDITURE ON**||||||
|Raising Funds|6|8,668|-|**8,668**|9131|
|CharitableActivities|7|256,865|-|**256,865**|251,049|
|**TOTAL EXPENDITURE**||265,533|-|**265,533**|260,180|
|**NET INCOME**||||||
|**AND NET MOVEMENT IN FUNDS**|||23,351|-|**23,351**|
|32,914||||||
|**RECONCILIATION OF FUNDS**||||||
|Total funds brought forward||20,705|-|**20,705**|(12,209)|
|**TOTAL FUNDS**||||||
|**CARRIED FORWARD**|19|44,056|-|**44,056**|20,705|
The notes on pages 15 to 28 form part of these financial statements.
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## **Innervation Trust Limited**
## **Balance Sheet At 31[st] December 2021**
||Notes|**2021**|2020|
|---|---|---|---|
|||**£**|£|
|**FIXED ASSETS**||||
|Intangible fxed assets|||12|
|**2,115**-||||
|Tangible fxed assets|||
13|
||**3,824**|2,038||
|Investments|14|**100**|100|
|||**6,039**|2,138|
|**CURRENT ASSETS**||||
|Stock||**19,844**|15,993|
|Debtors|15|**55,079**|47,198|
|Cashatbankandin hand||**57,850**|32,920|
|||**132,773**|96,111|
|**CREDITORS: Amounts falling due within one year**||16|**(83,256)**|
||(66,044)|||
|**NET CURRENT ASSETS**||**49,517**|30,067|
|**TOTAL ASSETS LESS CURRENT LIABILITIES**||**55,556**|32,205|
|**CREDITORS: Amounts falling due after more**||||
|**than one year**|18|**(11,500)**|(11,500)|
|**NET ASSETS**||**44,056**|20,705|
|**FUNDS**||||
|Restricted income funds|19|**-**|-|
|Unrestrictedincomefunds|19|**44,056**|20,705|
|||**44,056**|20,705|
For the year ending 31[st] December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its financial statements for the year in accordance with section 476 of the Companies Act 2006. The Trustees acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. These financial statements were approved and authorised for issue by the Board of Trustees on September 2022 and signed on their behalf by:
Roger Morris Chair of Trustees
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**Innervation Trust Limited**
The notes on pages 15 to 28 form part of these financial statements.
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## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **1. Company information**
Innervation Trust Limited was incorporated in England and Wales as a company limited by guarantee (registered no. 06727979) and has no share capital.
The liability of members in the event of winding up is limited to an amount not exceeding £1 per member; the number of members as at 31[st] December 2021 was 5.
Innervation Trust Limited is also registered as a charity with the Charity Commission (registered no. 1131757).
The registered office of Innervation Trust Limited is Unit 27, Cotteswold Dairy, Dairy Way, Tewkesbury GL20 8JE.
## **2. Accounting policies**
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable company’s financial statements:
## **Basis of accounting**
The financial statements have been prepared under the historical cost convention.
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 and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Innervation Trust Limited meets the definition of a public benefit entity under FRS 102.
## **Going concern**
Over the year, income exceeded expenditure by £23,351 resulting in an overall surplus in funds of £44,056 at 31[st] December 2021. There were no restricted funds at that date.
Of the surplus of £44,056 at 31[st] December 2021, £17,500 is represented by loans, which are to be repaid in total monthly instalments of £500.
The Trustees have prepared projections of the income and expenditure of the charity for 2022 and 2023. The management team are confident that, with the resumption of projects, the new digital resources are the support of existing donors, the charity has sufficient cash to meet its liabilities as they fall due.
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## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **2. Accounting policies (Cont’d)**
## **Group accounts**
The Charity is exempt from the requirement to prepare consolidated accounts by the virtue of the size of the group. These financial statements therefore present information about the charity as an individual company rather than as a group.
## **Statement of cash flows**
The charitable company has taken advantage of the small company exemption and has not included a Statement of cash flows within the financial statements.
## **Income**
Income is included in the Statement of Financial Activities when the charity is legally entitled to it, receipt is probable and the amount can be quantified with reasonable accuracy.
Investment income is accounted for the period in which the charity is entitled to receipt.
## **Expenditure**
Expenditure is included in the Statement of Financial Activities on an accruals basis.
Costs of raising funds comprise those costs incurred in generating donations and legacies.
The Trust’s charitable activity is the advancement of the Christian faith worldwide. Costs incurred in furthering these aims are related to running schools weeks, including costs of merchandising and organising events. It also includes governance costs which are costs incurred for running the charity itself as an organisation, including costs related to the independent examination and accountancy.
## **Allocation of support costs**
All costs are directly attributable to specific activities.
## **Pension scheme**
The costs of providing defined contribution pensions are charged to the SOFA as they fall due. The difference between contributions payable in the period and those actually paid are shown as accruals in the balance sheet. The
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pension costs are allocated to the unrestricted funds as this is where staff costs are allocated.
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **2. Accounting policies (Cont’d)**
## **Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation, with assets greater than the de-minimis of £500 being capitalised.
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value over their expected useful lives on the following basis:
Fixtures, fittings and equipment 25% reducing balance Motor Vehicles 25% reducing balance
## **Stock**
Stocks are valued at the lower of cost and net realisable value. The stock held is merchandise for resale.
## **Debtors**
Trade debtors and accrued income are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
## **Cash at bank and in hand**
Cash is represented by cash in hand and deposits with financial institutions.
## **Creditors**
Creditors 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.
## **Funds**
Funds held by the charity are either:
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## _Unrestricted general funds_
These are funds that can be used in accordance with the charitable objects at the discretion of the Trustees.
## _Restricted funds_
These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **2. Accounting policies (Cont’d)**
## **Financial instruments**
Innervation Trust Limited 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.
## **Operating lease**
Rentals applicable to operating leases are charged to the SOFA on a straightline basis over the term of the lease.
## **Recognition of liabilities**
Liabilities are recognised once there is a legal or constructive obligation that commits the charity to the obligation.
## **Taxation**
The company is a registered charity and as such is entitled to tax exemption on all its income and gains, properly applied for its charitable purposes.
## **VAT**
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **Critical accounting judgements and key sources of estimation uncertainty**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The annual depreciation charges for the tangible assets are sensitive to changes in the estimated useful lives and residual values of the assets. See
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note 13 for the carrying amount of the tangible assets and note 2 for the depreciation policies.
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## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **3. Income from Donations and Grants**
||UnrestrictedRestricted|UnrestrictedRestricted|UnrestrictedRestricted|**Total**|Total|
|---|---|---|---|---|---|
|||Funds|Funds|**2021**|2020|
|||£|£|**£**|£|
||Regular donations|44,784|-|**44,784**|47,406|
||One-of donations|94,126|-|**94,126**|92,912|
||Gift aid|6,874|-|**6,874**|11,468|
||Furlough CJRS grant|29,295|-|**29,295**|42,457|
||Small Business Grant Fund|-|-|**-**|10,000|
|||175,079|-|**175,079**|204,243|
|**4.**|**Income from Charitable Activities**|||||
||Unrestricted||Restricted|**Total**|Total|
|||Funds|Funds|**2021**|2020|
|||£|£|**£**|£|
||Project income|50,506|-|**50,506**|57,636|
||Digital resources||52,082||-|
||**52,082**14,180|||||
||Income from CD sales||-||-|
||**-**5,937|||||
||Other merchandising income||10,467||-**10,467**|
||10,775|||||
||Royalties|750|-|**750**|323|
|||113,805|-|**113,805**|88,851|
## **5. Income from Other Trading Activities**
||Unrestricted|Restricted|**Total**|Total|
|---|---|---|---|---|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Bank refund|-|-|**-**|-|
|Sale of song licences||-|-||
|**-**-|||||
|Loans written of||-|-||
|**-**-|||||
|Other income|-|-|**-**|-|
||-|-|**-**|-|
22
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
|**6.**|**Expenditure on Raising Funds**|||
|---|---|---|---|
|||**2021**|2020|
|||**£**|£|
||Travel and subsistence|**-**|-|
||Printing|**-**|-|
||Postage|**-**|-|
||Dancing|**-**|-|
||Leafets|||
||**-**-|||
||London Marathon|||
||**-**-|||
||Church presentation|||
||**-**-|||
||Fundraising consultancy|**8,668**|9,131|
|||**8,668**|9,131|
|**7.**|**Expenditure on Charitable Activities**|||
|||**2021**|2020|
|||**£**|£|
||Purchase of merchandise|**3,421**|11,343|
||Project and equipment expenses|**57,628**|62,712|
||Motor and travel expenses|**9,067**|6,869|
||Entertainment and hospitality|**1,610**|1,156|
||Publicity|**7,834**|2,323|
||Keep on Singing|**-**|-|
||Support costs (note 8)|**172,567**|161,276|
||Governance Costs (note 8)|**4,738**|5,370|
|||**256,865**|251,049|
23
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **8. Governance and support costs**
||Support Governance|Support Governance||
|---|---|---|---|
||Costs|Costs|**2021**|
||£|£|**£**|
|Salaries, wages and related costs|(note 9)151,937|-|**151,937**|
|Training|965|-|**965**|
|Administrative expenses|13,377|-|**13,377**|
|Premises expenses|5,526|-|**5,526**|
|Professional fees|-|-|**-**|
|Insurances|-|999|**999**|
|Gifts|-|-|**-**|
|Bank Charges|762|-|**762**|
|Independent Examiner’s fees|-|1,200|**1,200**|
|Accountancyfees|-|2,539|**2,539**|
||172,567|4,738|**177,305**|
No support costs have been allocated to grant making activities (2020: nil).
## **9. Staff costs and numbers**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Salaries|**146,695**|131,685|
|National Insurance|**3,264**|1,436|
|PensionCosts|**1,978**|1,586|
||**151,937**|134,707|
The average headcount number of staff during the year was 12 (2020: 12).
The remuneration of the key management personnel was £70,074 (2020: £65,557).
No employee was paid more than £60,000 in the current or previous financial year.
## **10. Trustee remuneration**
Trustee expenses of £0 (2020 – £0) were reimbursed in the current financial year.
24
**Innervation Trust Limited**
During the year donations of £600 were given by the Trustees to the charity (2020: £600).
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **11. Net income**
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Rentals under operating leases|**2,529**|9,244|
|Depreciation|**1,289**|779|
|Amortisation|**235**|-|
|Accountancy Costs|**2,539**|2,329|
|Independent Examiner’s Fees|**1,200**|1,200|
## **12. Intangible fixed assets**
|||**Website**|
|---|---|---|
|||**£**|
|Cost:|At 1stJanuary 2021|-|
||Additions in year|2,350|
||Disposals|-|
||**At 31st December 2021**|**2,350**|
|Depreciation:|At 1stJanuary 2021|-|
||Charge for the year|235|
||Disposals|-|
||**At 31st December 2021**|**235**|
|Net Book Value:|**At 31st December 2021**|**2,115**|
||At 31stDecember 2020|-|
The website is amortised on a straight line basis over 10 years.
25
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **13. Tangible fixed assets**
||**Fixtures,**|**Fittings and**|**Equipment**|
|---|---|---|---|
||||**£**|
|Cost:|At 1stJanuary 2021||20,204|
||Additions in year||3,303|
||Disposals||(800)|
||**At 31st December 2021**||**22,707**|
|Depreciation:|At 1stJanuary 2021||18,166|
||Charge for the year||1,289|
||Disposals||(572)|
||**At 31st December 2021**||**18,883**|
|Net Book Value:**At 31st December 2021**|||**3,824**|
||At 31stDecember 2020||2,038|
|**vestment in subsidiary**||||
|||**2021**|2020|
|||**£**|£|
|Cost at 1st Januaryand 31stDecember||**100**|100|
## **14. Investment in subsidiary**
The subsidiary is Innervation Trading Company Limited, company number 05653870, which is 100% owned by the Trust and registered in England and Wales at 4 & 5 Cygnet Business Park, Worcester Road, Hanley Swan, Worcester WR8 0EA.
## **15. Debtors**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Trade debtors|**51,755**|41,013|
|Owed by subsidiary|||
|**28**-|||
|Prepayments and accruedincome|**3,296**|6,185|
||**55,079**|47,198|
26
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **16. Creditors: amounts falling due within one year**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Trade Creditors|**9,537**|4,443|
|Loans|**6,000**|7,750|
|Taxation and social security|**7,260**|2,042|
|Accruals|**3,168**|2,964|
|Other creditors|||
|**466**1,760|||
|Deferredincome (note16)|**56,825**|47,085|
||**83,256**|66,044|
The loans are unsecured, interest-free and repayable in equal monthly instalments of £500.
## **17. Deferred income**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Amounts brought forward|**47,085**|38,555|
|Amounts received in the year|**(47,085)**|(38,555)|
|Amounts utilised duringthe year|**56,825**|47,085|
||**56,825**|47,085|
Deferred income arises when schools and churches are invoiced in advance for future projects.
## **18. Creditors: amounts falling due after more than one year**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Loan|**11,500**|11,500|
The loan is unsecured, interest-free and repayable in equal monthly instalments of £500.
27
## **Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **19. Movement in funds**
**2021**
|**ovement in funds**|**ovement in funds**||||
|---|---|---|---|---|
|Balance at||Movement in Resources||**Balance at**|
|1stJanuary 2021||Income Expenditure**31st December**|||
||£|£|£|**£**|
|Restricted Funds:|||||
|Old Town Christian Trust|-|-|-|**-**|
|Mr and Mrs Drew|-|-|-|**-**|
||-|-|-|**-**|
|UnrestrictedFunds|20,705|288,884|(265,533)|**44,056**|
|Total Funds|20,705|288,884|(265,533)|**44,056**|
## **20. Net assets by fund**
Intangible and Creditors Tangible Fixed Net current Due After Assets Investments Assets One Year **Total** £ £ £ £ **£** Unrestricted Funds 5,939 100 49,517 (11,500) **44,056** Restricted Funds - - - - **-** Total Funds 5,939 100 49,517 (11,500) **44,056**
## **21. Financial instruments**
**2021** 2020 **£** £ Financial assets measured at settlement value **112,901** 80,118 Financial liabilities measured at settlement value **(30,205)** (26,657)
Financial assets measured at settlement value comprise cash, trade debtors and accrued income.
Financial liabilities measured at settlement value comprise trade creditors, grant commitment, loans and accruals.
28
## **Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **22. Related party transactions**
Innervation Trading Company Limited (“Trading”) is a related party as it is a subsidiary of Innervation Trust Limited (“the Trust”).
The Trust has a related ministry called iSingWorship. This is a smartphone and tablet application (“App”) which makes worship and music in small groups easy to deliver. iSingWorship itself is partly owned by Movation Productions Limited and Kingdom Apps Limited, both entities in which Anthony Porter and Mark Pennells have an interest.
During 2018 there was a loan of £2,000 to the Trust by Movation Productions Limited. During the year the loan was written off and the balance as at 31[st] December 2021 was £nil (2020: £1,000).
## **23. Statement of Financial Activities – prior year**
|NotesUnrestricted|NotesUnrestricted|Restricted|**Total**|Total|
|---|---|---|---|---|
||Funds|Funds|**2020**|2019|
||£|£|**£**|£|
|**INCOME FROM**|||||
|Donation and grant income|204,243|-|**204,243**|130,399|
|Charitable Activities|88,851|-|**88,851**|268,474|
|Other Trading Activities|-|-|**-**|14,055|
|Investment Income|-|-|**-**|3|
|**TOTAL INCOME**|293,094|-|**293,094**|412,931|
|**EXPENDITURE ON**|||||
|Raising Funds|9,131|-|**9,131**|10,665|
|CharitableActivities|251,049|-|**251,049**|374,851|
|**TOTAL EXPENDITURE**|260,180|-|**260,180**|385,516|
|**NET INCOME**|||||
|**AND NET MOVEMENT IN FUNDS**||32,914|-|**32,914**|
|27,415|||||
|**RECONCILIATION OF FUNDS**|||||
|Total funds brought forward|(12,209)|-|**(12,209)**|(39,624)|
|**TOTAL FUNDS**|||||
|**CARRIED FORWARD**|20,705|-|**20,705**|(12,209)|
29
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **24. Income from Donations and Grants – prior year**
|UnrestrictedRestricted|UnrestrictedRestricted|UnrestrictedRestricted|**Total**|Total|
|---|---|---|---|---|
||Funds|Funds|**2020**|2019|
||£|£|**£**|£|
|Regular donations|47,406|-|**47,406**|45,234|
|One-of donations|92,912|-|**92,912**|75,781|
|Gift aid|11,468|-|**11,468**|9,384|
|Furlough CJRS grant|42,457|-|**42,457**|-|
|Small Business Grant Fund|10,000|-|**10,000**|-|
||204,243|-|**204,243**|130,399|
|**25.**|**Income from Charitable Activities – prior year**
Unrestricted
Restricted
**Total**
Total
Funds
Funds
**2020**
2019
£
£
**£**
£
Project income
57,636
-
**57,636**
178,161
Digital resources 14,180 -
**14,180**-
Income from CD sales 5,937 -
**5,937**35,898
Other merchandising income 10,775 -**10,775**
54,083
Royalties
323
-
**323**
332|
|---|---|
||88,851
-
**88,851**
268,474|
## **26. Expenditure on Raising Funds – prior year**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Fundraising consultancy|**9,131**|10,665|
||**9,131**|10,665|
30
**Innervation Trust Limited**
## **Notes to the Financial Statements Year Ended 31[st] December 2021**
## **27. Expenditure on Charitable Activities – prior year**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Purchase of merchandise|**11,343**|43,733|
|Project and equipment expenses|**62,712**|127,315|
|Motor and travel expenses|**6,869**|38,227|
|Entertainment and hospitality|**1,156**|4,167|
|Publicity|**2,323**|11,950|
|Keep on Singing|**-**|-|
|Support costs|**161,276**|143,567|
|Governance Costs|**5,370**|5,892|
||**251,049**|374,851|
## **28. Governance and support costs – prior year**
||Support|Governance||
|---|---|---|---|
||Costs|Costs|**2020**|
||£|£|**£**|
|Salaries, wages and related costs|134,707|-|**134,707**|
|Training|364|-|**364**|
|Administrative expenses|10,468|-|**10,468**|
|Premises expenses|14,492|-|**14,492**|
|Professional fees|-|-|**-**|
|Insurances|-|1,841|**1,841**|
|Gifts|8|-|**8**|
|Bank Charges|1,237|-|**1,237**|
|Independent Examiner’s fees|-|1,200|**1,200**|
|Accountancyfees|-|2,329|**2,329**|
||161,276|5,370|**166,646**|
## **29. Movement in funds – prior year**
## **2020**
||Balance at|Movement in Resources|**Balance at**|
|---|---|---|---|
|1stJanuary 2020||Income Expenditure**31st December**||
||£|£
£|**£**|
|UnrestrictedFunds|(12,209)|293,094
(260,180)|**20,705**|
|Total Funds|(12,209)|293,094
(260,180)|**20,705**|
31