## **Norwich Christian Resources** ## **(a company limited by guarantee)** **Annual Report and Financial Statements Year ended 30 September 2020** |Company number|6675645| |---|---| |Charity number|1135412| ## **Norwich Christian Resources** **(a company limited by guarantee)** ## **Annual Report and Financial Statements Year ended 30 September 2020** ## **Contents** |**Contents**|| |---|---| ||Page| |Legal and administrative information|1| |Report of the Trustees|2-4| |Report of the Independent Examiner|5| |Statement of financial activities and income|| |and expenditure account|6| |Statement of financial position|7| |Notes forming part of the financial statements|8-10| 1 ## **Norwich Christian Resources** ## **Annual Report and Financial Statements Year ended 30 September 2020** ## **Legal and administrative information** Charity name Norwich Christian Resources Charity registration number 1135412 Company registration number 6675645 (England and Wales) Registered office and operational St Michael at Plea Church address Redwell Street Norwich NR2 4SN ## **Trustees** Rev Alaric Lewis Mrs L Marsh Mrs M Smith Mr P Talbot (Chairman) Rev Neil Walker All trustees are directors ## **Independent Examiner** John Mason ACMA, CGMA Mason Williams Limited 1 Hammond Place Lyng Norwich NR9 5RQ **Norwich Christian Resources** 2 ## **Report of the Trustees Year ended 30 September 2020** The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report and the unaudited financial statements for the year ended 30 September 2020. ## **Structure, governance and management** ## **Governing document** The organisation is a charitable company (hereafter referred to as the Trust), limited by guarantee, incorporated on 18 August 2008 and registered as a charity on 9 April 2010. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association. In the event of the company being wound up the members are required to contribute an amount not exceeding £1. ## **Appointment of Trustees** Under the terms of the Memorandum and Articles of Association, new Trustees may be appointed at the annual general meeting. Any new appointments are at the recommendation of the Board of Trustees. ## **Trustees induction and training** New Trustees are briefed on their legal obligations under charity law, the content of the Memorandum and Articles of Association and recent financial performance of the Trust. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. ## **Organisation** The Trustees administer the Trust and meet at least on a quarterly basis. The shop manager has been appointed by the Trustees to manage the day to day operations of the Trust. To facilitate effective operations, the manager has delegated authority, within the terms of delegation approved by the Trustees for operational matters including project activities and finance. ## **Objectives and principal activities** The primary objective of the Norwich Christian Resource Centre seeks to provide the following for the benefit of the citizens of Norwich and the surrounding areas: - Resources for all denominations and age groups of the Christian church,. - A welcome to people of all faiths or none, - Resources for those who work in the education community, - The centre's café as a quiet haven for shoppers, local business people, tourists and clergy, and - Events throughout the year such as lectures, book signings, discussion groups and debates. The principal activities of the Trust continue to be the running of the shop and café for charitable purposes. ## **Risk management** The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate systems and procedures are in place to mitigate major risks. The strategy also includes procedures to minimise the impact on the Trust should those risks materialise. ## **Public benefit** The Trustees confirm that, in exercising their powers and duties, they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission. ## **Volunteers** The centre provides a place for voluntary opportunities for people to enhance their working and social skills. The Trustees would also like to thank all volunteers for their contribution in the running of the centre. **Norwich Christian Resources** 3 ## **Report of the Trustees (continued) Year ended 30 September 2020** ## **Achievements and performance** ## **Review of activities, performance and future plans** The focus during the year concentrated on the impact of Covid-19. Sales in both the shop and café began to be affected soon after Christmas and in common with all businesses operating in the non-essential retail and hospitality sector we were required to close our doors in March. Shop and café income for the whole year totalled £146,358 (2019: £229,999) a fall of 36% year on year and nearer 45% when comparing the last nine months of trading to the previous year. Prior to the announcements of various government support schemes, the Trustees had been concerned about our financial position given the fall in sales leading up to lockdown. In April we applied for and received a Coronavirus Business Grant of £25,000. The government Job Retention Scheme allowed us to pay staff on furlough 80% of their wages. Subsequently we were able to maintain the rent, payments to our suppliers. and loan commitments. The shop reopened on 1 July and the café on 4 August. A full Covid-19 risk assessment was undertaken prior to the reopening to ensure staff and customer safety. In the meantime the Trustees appealed to our supporters for donations to help us through this difficult time and this raised a further £7,000 much of which was gift aided. We also continue to receive generous donations of second hand books. Sales figures post lockdown were down by 45% compared to pre-Covid which led to the Trustees considering ways in reducing costs. Discussions took place resulting in making three staff members redundant including shop manager Steve Foyster. These were extremely difficult decisions to make given the commitment and loyalty shown by all three members over many years and we would wish to place on record our thanks for their understanding at this difficult time. We also approached our landlord, the Norwich Historic Churches Trust, for a rent reduction and they kindly agreed to a reduction of 40% to £1,100 per month with a review in April 2021. The full benefit of these cost cutting measurers should be seen in the next accounts. The Trustees met face to face for the first three meetings and then on Zoom a further five times. It has been a challenging year unlike anything before. Difficult decisions have had to be taken in an effort to preserve the Charity's very existence. We are grateful to all our staff for their patience and understanding through what has been an extremely uncertain time hoping that with the measures which have been taken to help reduce our costs we shall be able to pursue the Charity's aims again once the restrictions have been lifted. ## **Reserves policy** The Trustees have examined the Trust's requirements for reserves in the light of main risks to the organisation. They have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the Trust should not fall below a minimum of £10,000. At the end of the year, the free reserves amounted to a surplus of £19,642. ## **Statement of Trustees Responsibilities** The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the income and expenditure for the year. In preparing these financial statements the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the method and principles of the Charities SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. **Norwich Christian Resources** 4 ## **Report of the Trustees (continued) Year ended 30 September 2020** ## **Statement of Trustees Responsibilities (continued)** The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, 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. On behalf of the Board of Trustees P Talbot Chairman of the Trustees 22 June 2021 **Norwich Christian Resources Independent Examiner's report For the year ended 30 September 2020** 5 ## **Independent Examiner's report to the Trustees of Norwich Christian Resources** I report to the charity Trustees on my examination of the accounts of the company for the year ended 30 September 2020 which are set out on pages 6 to 10. ## **Responsibilities and basis of report** As the charity Trustees of the company (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 company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your company'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 Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the company'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 because I am a member of the Chartered Institute of Management Accountants which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - ●accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or - ●the accounts do not accord with those records; or - ●the accounts do not comply with the accounting requirements of 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 - ●the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with my examination to which attention should be drawn in this respect in order to enable a proper understanding of the accounts to be reached. This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report. John Mason ACMA, CGMA Mason Williams Limited 1 Hammond Place Lyng Norwich NR9 5RQ 6 ## **Norwich Christian Resources** ## **Statement of Financial Activities and Income and Expenditure Account Year ended 30 September 2020** |**Income**
Donations
Subscriptions and membership
Shop and café income
Government grants
**Total income**
**Expenditure (note 5)**
Charitable activities
Other
**Total expenditure**
**Net income/(expenditure)**
Funds at 1 October 2019
**Funds at 30 September 2020**|**Unrestricted**
Unrestricted
**funds**
funds
**2020**
2019
**£**
£
**11,551**
**20,116**
**18,544**
**16,750**
**146,358**
**229,999**
**58,890**
**-**
**235,343**
**266,865**
**221,811**
**267,818**
**750**
**750**
**222,561**
**268,568**
**12,782**
**(1,703)**
**6,860**
**8,563**
**19,642**
**6,860**| |---|---| The notes form part of these financial statements. 7 ## **Norwich Christian Resources** ## **Statement of financial position as at 30 September 2020** |Notes
**Fixed assets**
Tangible assets
8
**Current assets**
Stock
Debtors
9
Bank and cash
**Creditors:**
Amounts falling due within one year
10
**Net current assets**
**Net assets**
**General funds**
Unrestricted
**Total funds**|**2020**
**£**
**4,633**
**39,428**
**440**
**6,846**
**46,714**
**(31,705)**
**15,009**
**19,642**
**19,642**
**19,642**|2019
£
5,358| |---|---|---| |||47,329
1,087
599| |||49,015| |||(47,513)| |||1,502| |||6,860| |||6,860| |||6,860| For the financial period ended 30 September 2020 the company was entitled to exemption from audit under section 477 Companies Act 2006. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006. The Trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of the affairs of the company as at the end of the financial period and of its profit or loss for the financial period in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company. These financial statements were approved and authorised for issue by the Trustees on 22 June 2021 and are signed on its behalf by: P Talbot Chairman Company registration number 6675645 The notes form part of these financial statements. **Norwich Christian Resources** 8 ## **Notes to the financial statements Year ended 30 September 2020** ## **1 Statutory information** Norwich Christian Resources is a private charitable company, limited by guarantee, domiciled in England and Wales, registration number 6675645. The registered office is St Michael at Plea Church, Redwell Street, Norwich, NR2 4SN. ## **2 Compliance with accounting standards** The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006. Norwich Christian Resources meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. ## **3 Accounting policies** The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous financial year, and also have been consistently applied within the same accounts. The financial statements have been prepared under the historical cost convention. The presentation currency is £ sterling. ## **(a) Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherence of the general objectives of the Trust and which have not been designated for other purposes. ## **(b) Income** - Grants are recognised in the statement of Financial Activities (SOFA) in the period in which the conditions have been met. Grants received to finance activities in future accounting periods are included within deferred income and recognised in the period in which those activities are undertaken. - All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. - Donations and memberships receivable are recognised in the SOFA in the period in which they are received. - Donated services and facilities are included at the value to the Trust where this can be quantified. ## **(c) Expenditure** Expenditure is recognised on an accruals basis excluding any Value Added Tax - Charitable expenditure comprises those costs incurred by the Trust in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. - Other costs include those costs associated with meeting the constitutional and statutory requirements of the Trust and include the examiner's fees and costs linked to the strategic management of the Trust. ## **(d) Tangible fixed assets** Tangible fixed assets are stated at cost less depreciation and any provision for impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Plant and machinery etc. 25% on a straight line balance **Norwich Christian Resources** 9 ## **Notes to the financial statements (continued) Year ended 30 September 2020** ## **3 Accounting policies (continued)** ## **(e) Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. ## **(f) Taxation** The charity is exempt from corporation tax on its charitable activities. ## **(g) Leasing commitments** Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease. ## **(h) Pensions** The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid are shown as a liability in the Statement of financial position. The assets of the plan are held sepatately from the Company in independently administered funds. ## **4 Going concern** Following the Coronaviirus pandemic, the charity temporarily ceased trading in March 2020 as advised by H M Government. The Trustees have considered the charity's position at the time of signing the financial statements, and in particular the impact of Covid-19 and lockdown on the ability to generate funding from the shop and café. Under the current circumstances, it is difficult to produce precise forecasts for the remainder of the financial year and medium term. Nevertheless, the Trustees have considered the current position of the charity, and have concluded that they have a reasonable expectation that the charity will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statements. They therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |**5 Expenditure**
**Charitable activities**
Advertising
Purchases
Property expenses
Subscriptions
Salaries and national insurance
Pension contributions
Professional fees
Office costs
Travel and subsistence
Finance charges
Depreciation of plant and machinery
**Other**
Examiner's fee|**2020**
**£**
**80**
**79,713**
**36,880**
**450**
**94,072**
**451**
**1,081**
**4,895**
**297**
**2,362**
**1,530**|2019
£
884
119,494
40,343
660
95,247
429
1,081
4,613
497
2,871
1,699| |---|---|---| ||**221,811**|267,818| ||**750**|750| ||**222,561**|268,568| ## **6 Trustees' remuneration and benefits** The Trustees received no remuneration, benefits or expenses during the year (2019: £nil). There were no related party transactions. **Norwich Christian Resources** 10 ## **Notes to the financial statements (continued) Year ended 30 September 2020** |**7**
**Staff costs**
Wages and salaries
Social security costs
Employer pension contributions
During the year the average number of employees was 7 (2019: 9)
**8**
**Tangible fixed assets**
**Cost**
At 1 October 2019
Additions
At 30 September 2020
**Depreciation**
At 1 October 2019
Charge for the year
At 30 September 2020
**Net book value at 30 September 2020**
Net book value at 30 September 2019
**9**
**Debtors**
Prepayments
**10 Creditors: amounts falling due within one year**
Bank overdraft
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors|**2020**
**£**
**92,790**
**1,282**
**451**|2019
£
94,546
701
429| |---|---|---| ||**94,523**|95,676| ||**2020**
**£**
**440**|Plant and
machinery
£
18,087
805| |||18,892| |||12,729
1,530| |||14,259| |||**4,633**| |||5,358| |||2019
£
1,087| ||**2020**
**£**
**-**
**22,845**
**4,097**
**1,613**
**3,150**|2019
£
4,392
36,385
3,873
1,613
1,250| ||**31,705**|47,513| ## **11 Commitments under operating lease** Under the terms of the lease, the company has a commitment to pay £21,000 in the year to 30 September 2021. Due to the coronavirus pandemic the Trustees have negotiated a temporary rent reduction of 40% with a review in April 2021.