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2020-12-31-accounts

CHARITY REGISTRATION NUMBER: 1159568

ROSE CASTLE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

David Allen

Chartered Accountants & Statutory Auditor Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY

ROSE CASTLE FOUNDATION

CONTENTS

Trustees' report 1 to 11
Independent auditor's report 12 to 15
Statement of financial activities 16 to 17
Balance sheet 18
Notes to the financial statements 19 to 30

ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Right Reverend Bishop J Newcome (Co-chair)
Professor D Ford (Co-chair)
Dr S Burgess
Mr B Thompson
Mr C Townsend
Mr M Amersi
Mr J Casson
Principal Office Rose Castle Farm Cottage
Dalston
Carlisle
CA5 7BY
Charity Registration Number 1159568
Bankers CAF Bank Ltd
25 Kings Hill Avenue
West Malling
Kent
ME19 4JQ
Auditor David Allen
Chartered Accountants & Statutory Auditor
Dalmar House
Barras Lane Estate
Dalston
Carlisle
CA5 7NY

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.

OBJECTIVES AND ACTIVITIES

The vision:

In a world that is fractured by toxic division and disconnection, Rose Castle Foundation’s (RCF) vision is for a global network of reconciling leaders actively transforming conflict within their spheres of influence. This network will grow until every community around the world is equipped through all levels of their leadership to cross divides and manage disagreement well, able to live harmoniously with those around them in light of their differences rather than despite them. This network will inspire a movement of reconcilers who model The 'Rose Way', a holistic approach to crossing divides and disagreeing well within their own particular contexts. They lead as transformed individuals from the inside out, re-imagining their relationship with others and with the environment.

The mission: ‘To equip leaders to transform conflict’.

Charitable objects :

To promote religious harmony for the benefit of the public by:

The Rose Castle Foundation core values:

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

During the year under review, RCF delivered a number of reconciliation trainings and programmes, which varied in length from 1 to 6 days. However, this was limited due to the impact of Covid-19. The majority of programmes were aimed at emerging leaders, with many participants being under 30 years of age.

STRUCTURE, GOVERNANCE AND MANAGEMENT

RCF is a charitable incorporated organisation and received its charity registration on 10 December 2014.

Trustees are recruited on the basis of their professional and other skills, and to strengthen the capacity and diversity of the Board. They receive on-the-job training, using the guidelines prepared by the Charity Commission. The day to day running of the Foundation is carried out under the direction of RCF’s Founding Director, Mrs Sarah Snyder.

The trustees have met four times through the year to deliver strong governance and financial management. The trustees also provide valuable practical support for different aspects of RCF’s operations, including taking part in interviewing for new staff, ensuring robust financial controls and reporting systems are in place and developing fundraising capacity. A number of the trustees meet regularly with the Founding Director and staff members to discuss progress and offer advice.

ACHIEVEMENTS AND PERFORMANCE

Growing the impact of international peace and reconciliation

The Rose Castle Foundation is a UK charity co-chaired by Professor David Ford, Regius Professor of Divinity (Emeritus) at the University of Cambridge and Rt Reverend Bishop James Newcome, Bishop of Carlisle. Registered in 2014, as a charitable incorporated organisation (CIO) in England and Wales, RCF builds on the public inter-faith engagement developed by the Cambridge Interfaith Programme at the University of Cambridge, including facilitating the practice of Scriptural Reasoning and hosting annual summer schools for emerging faith leaders from contexts of conflict.

Equipping young and emerging leaders to transform conflict

Disagreement, misunderstanding and divisions exist at every level of society - within individuals, our families, communities, institutions and nations. While healthy disagreement contributes to innovation and change, destructive fractures tear lives and communities apart. Today’s communities and institutions need the skills, motivation and experience to navigate conflict in ways that build resilience and contribute to societal flourishing.

Rose Castle Foundation’s life-changing programmes and workshops train and equip participants across multiple divides, including religious and ideological, political, racial, cultural, socio-economic and generational. Participants come from diverse contexts and their differences are valued and respected; indeed the aim is to better understand their differences in order to live and work together for the common good. RCF recruits them through close relationships with faith communities, public organisations and educational institutions across the UK and worldwide. Under the guidance of professional facilitators, participants challenge negative stereotypes and misunderstanding, build trust across difficult divides, practise cross-border engagement and prepare transformative action for their home and work contexts. RCF’s methodology of holistic immersion in reconciliation, including shared meals, outdoor activities and informal conversations, helps to build relational resilience, individually, with others across deep divides, communally and with their wider environment.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Working with local and sector-specific partners, participants continue their formation through online peer-to-peer interaction and with local partner organisations, supporting one another in the face of conflict, sharing examples of best practice, and continuing dialogue around difficult conversations. They are accompanied through a series of 12 tried and tested practical habits, adapted for their own contexts, that form them as reconcilers for the long haul.

The programme offering

RCF prioritises:

RCF programmes comprise four key streams: Encounter; Engage; Restore; Reimagine.

Encounter programmes remain the flagship offering that creates the space to bring groups together across a divide to offer a first introduction to reconciliation, giving a taster of each stream of RCF’s Encounter-Engage-Restore-Reimagine journey: encountering others, engaging with difference, restoring broken relationships and reimagining a shared future. RCF facilitates encounters between two or more groups who have lived their lives back to back, supporting them as they come face to face, and equipping them to leave shoulder to shoulder, as reconcilers within their own local communities.

Engage programmes offer a deep dive into reconciliatory tools and themes. They are available to anyone with an interest in applying a practice or toolkit to their personal and professional environments. RCF offers programmes on Mediation, Forgiveness, Scriptural Reasoning, Hallmarks of Reconciliation, Difficult Dialogue and Non-Violent Communication.

Restore programmes offer space for practitioners and others directly impacted by conflict to reflect on the inner journey of reconciliation, recognising trauma and the need for personal healing. Restore programmes gather field practitioners for peer-to-peer learning in a space facilitated and hosted by RCF with a core element of radical hospitality.

Reimagine programmes are inter-disciplinary gatherings serving the field of reconciliation by connecting silos and differing disciplines to collaborate across diverse sectors.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance over the year

Activity was severely curtailed by Covid-19. Headline achievements in the year to 31 December 2020 were:

Activities during the year

In 2020 RCF continued with its 3-year strategy: ‘Crossing divides - Disagreeing Well (2019-2021)’. This identifies ten key milestones to strengthen and grow the RCF global network of reconcilers, enabling them to be active within their own local contexts and remained relevant, despite the impact of Covid-19:

  1. Build and strengthen the team

  2. Strengthen financial sustainability

  3. Develop efficient and sustainable work patterns and systems

  4. Model the ‘Rose Way’ – RCF’s hallmark values and approach

  5. Enlist the right partners

  6. Access and include the right participants

  7. Equip peace builders and reconcilers

  8. Engage alumni in ongoing formation

  9. Expand and strengthen the network

  10. Evaluate and communicate RCF impact.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

As part of its commitment to equipping peace builders and reconcilers (the 7th milestone), and engaging alumni in ongoing formation (8th milestone) RCF hosted five intensive online training programmes, including:

The Founding Director delivered online reconciliation training for Women on the Frontline (an initiative of the Archbishop of Canterbury); spoke at international conferences and symposiums (online) on the role of religious actors in peacebuilding and reconciliation, and facilitated online dialogues convening governmental and non-governmental leaders in the field of peace-building.

Organisational capacity

The work of RCF is made possible by an active team of trustees, staff and volunteers, including a business advisory group. An additional role was added to the staff team early in 2020, with the appointment of a dedicated Programmes Coordinator.

Trustees and staff also benefited from the input of external experts in a voluntary capacity, including a highly experienced business advisory group, which offers regular input on strategic and operational growth and financial sustainability. During the year, this included advice relating to RCF’s brand and marketing scope and identity; USP and priority audiences; digital development including website, database and alumni platform; and sales expertise. Volunteers are an integral part of RCF’s staff team and the volunteer base continues to grow. These volunteers freely give their time and talents to support all facets of RCF’s work. Volunteers are recruited to specific roles and are supported by dedicated staff within the RCF team.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Rose Castle

RCF operates from rented offices in the grounds of the Rose Castle in Cumbria. The castle estate is itself owned, maintained and operated by Rose Castle Company (a limited company that does not pay dividends to shareholders). The castle underwent a full renovation programme throughout 2020 (which will continue into 2021), following two years of design and planning preparations, and is due to re-open in Autumn 2021. Rose Castle Company provides use of the castle to a range of groups on a commercial basis, with trading proceeds deployed to maintain the fabric and operating costs of the castle on an ongoing, sustainable basis. It is mutually envisaged that RCF’s residential reconciliation programmes will be one of the regular users of Rose Castle.

Partners

RCF is deeply committed to collaborative partnerships, including the following:

UK:

International :

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

A thank you to our donors, supporters and volunteers

The achievements of RCF over the year would not have been possible without the generosity of our donors, supporters and volunteers. We are immensely grateful for all that they provide, whether through financial donations, time shared volunteering, wisdom, encouragement or prayer. This generosity, in whatever form and however large or small, has a huge cumulative impact on the ability of RCF to deliver its mission.

Review of the Year

During the year under review, The Rose Castle Foundation has been limited in undertaking charitable activities as a result of the COVID pandemic. They have received support from the Government under the Coronavirus Job Retention Scheme with total grants received of £121,529.

The unrestricted deficit for the year was £43,203 (2019: deficit £75,787). The restricted surplus for the year was £97,020 (2019: surplus £1,380). Reserves have increased in the year from £181,424 to £235,241 of which £101,703 was unrestricted and £133,538 was restricted.

Risk Analysis

The major risks to which RCF is exposed have been identified and reviewed. A summary of the major risks to RCF and their mitigating controls is held on a risk register, which is reviewed annually by the trustees.

Reserves Policy

The trustees have agreed the reserves policy after taking into account planned activity for the year. The purpose of the reserve is to enable RCF to continue with the delivery of core services during a period of unforeseen difficulty or financial uncertainty; to provide an appropriate period to replace funding that has been withdrawn or is no longer available; or to ensure that RCF can meet overhead costs in the event of severe reduction in the organisation’s charitable services, or in the event of closure of the charity. RCF will hold, in cash, or in another readily releasable form such as underwriting, the sum of overheads for the three proceeding months of expenditure, on a rolling basis. This ensures that planned growth in expenditure over the year does not impinge on the reserves level. Reserve levels are reviewed quarterly by the Finance and Remuneration committee and the reserves policy is reviewed annually.

At the year end the free reserves were £101,703 (2019: £144,906).

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Public benefit

The trustees, in setting their objectives, have had due regard to the public benefit guidance issued by the Charity Commission.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Plans for the future

Looking ahead to 2021, whilst remaining mindful of the likely ongoing impact of Covid-19, the trustees and staff, supported by the business advisory group, will continue to focus on growing RCF’s capacity to deliver online programmes, whilst also planning for residential programmes post-pandemic, and to support a growing network of active alumni serving as reconcilers and peace builders within their own local contexts. RCF will develop and implement new programmatic content around the Habits of a Reconciler series, whilst also preparing a renewed vision for Scriptural Reasoning delivery across diverse audiences (for example schools, universities, seminaries, chaplaincy teams, and places of worship). The focus will be on maintaining a strong financial position, prioritising activity which will deliver greatest charitable impact in a post-Covid world, implementation of efficient processes and building of staff and organisational capability and experience. RCF will expand and deepen relationships with its partner and collaborator network, implement targeted marketing, fundraising and content development, along with continued steps to support lasting alumni engagement and impact. RCF will continue to invest in staff development and training to support programme content delivery and operational capacity.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL INSTRUMENTS

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

The charity's principal financial assets are cash at bank and trade and other receivables.

The charity's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

GOING CONCERN

The charity aims to retain sufficient cash reserves necessary to meet liabilities and expenses for a period of three months based on the proceeding three months, reserve levels are monitored quarterly by the Finance and Remuneration Committee and the reserves policy is reviewed annually. Presently, the charity has no going concern problems. Unrestricted funds at the year end were £101,703.

See note 17 for details on our response to the COVID-19 global pandemic.

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ROSE CASTLE FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the trustees of the charity on 9 June 2021 and signed on its behalf by:

......................................... Right Reverend Bishop J Newcome Co-Chair of Trustees

......................................... Professor D Ford Co-Chair of Trustees

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ROSE CASTLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROSE CASTLE FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2020

OPINION

We have audited the financial statements of Rose Castle Foundation (the 'charity') for the year ended 31 December 2020, which comprise the Statement of financial activities, Balance sheet, and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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. 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.

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ROSE CASTLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROSE CASTLE FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2020

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of Trustees' Responsibilities set out on page 11, the trustees 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 charity'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 charity 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 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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ROSE CASTLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROSE CASTLE FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2020

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:

• Discussing with the Trustees their policies and procedures regarding compliance with laws and regulations;

• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the charity which were contrary to the applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the Trustees on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

We are not responsible for detecting fraud and preventing non-compliance and cannot be expected to detect all fraud and non-compliance with all laws and regulations. The primary responsibility for the prevention and detection of irregularities including fraud rests with both the Trustees and Management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities is available 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 charity trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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ROSE CASTLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ROSE CASTLE FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2020

...................................... ALISON WELTON (Senior Statutory Auditor) For and on behalf of David Allen Chartered Accountants & Statutory Auditor

Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY

Date:.............................

David Allen is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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ROSE CASTLE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Total Total
Unrestricted Restricted 2020 2019
Note £ £ £ £
Income from:
Donations and legacies 2 107,397 103,750 211,147 60,322
Charitable activities 3 15,659 - 15,659 114,134
Investment income 4 151 - 151 238
Other income 5 121,529 - 121,529 -
Total income 244,736 103,750 348,486 174,694
Expenditure on:
Raising funds - - - (3,506)
Charitable activities 6 (287,939) (6,730) (294,669) (245,595)
Total expenditure (287,939) (6,730) (294,669) (249,101)
Net movement in funds (43,203) 97,020 53,817 (74,407)
Reconciliation of funds
Total funds brought forward 144,906 36,518 181,424 255,831
Total funds carried forward 15 101,703 133,538 235,241 181,424

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ROSE CASTLE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Total
Unrestricted Restricted 2019
Note £ £ £
Income from:
Donations and legacies 2 47,092 13,230 60,322
Charitable activities 3 114,134 - 114,134
Investment income 4 238 - 238
Total income 161,464 13,230 174,694
Expenditure on:
Raising funds (3,506) - (3,506)
Charitable activities 6 (233,745) (11,850) (245,595)
Total expenditure (237,251) (11,850) (249,101)
Net movement in funds (75,787) 1,380 (74,407)
Reconciliation of funds
Total funds brought forward 220,693 35,138 255,831
Total funds carried forward 15 144,906 36,518 181,424

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 and 2019 is shown in note 15.

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ROSE CASTLE FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2020

2020 2019
Note £ £
Fixed assets
Tangible assets 12 6,653 8,245
Current assets
Debtors 13 12,356 10,226
Cash at bank and in hand 267,641 169,367
279,997 179,593
Creditors: Amounts falling due within one year 14 (51,409) (6,414)
Net current assets 228,588 173,179
Net assets 235,241 181,424
Funds of the charity:
Restricted 133,538 36,518
Unrestricted income funds
Unrestricted 101,703 144,906
Total funds 15 235,241 181,424

The financial statements on pages 16 to 30 were approved by the trustees, and authorised for issue on 9 June 2021 and signed on their behalf by:

......................................... Right Reverend Bishop J Newcome Co-Chair of Trustees

......................................... Professor D Ford Co-Chair of Trustees

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES

Statement of compliance

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)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Rose Castle Foundation 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 notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Investment income is accounted for in the year in which it is received.

Income from charitable activities is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charity for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Office equipment

Depreciation method and rate 25% Straight line

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the statement of financial activities in the period to which they relate.

Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2 INCOME FROM DONATIONS AND LEGACIES

Unrestricted Total Total
General Restricted 2020 2019
£ £ £ £
Donations and legacies;
Donations 107,397 103,750 211,147 60,322
107,397 103,750 211,147 60,322
**3 INCOME FROM CHARITABLE ** ACTIVITIES
Unrestricted Total Total
General 2020 2019
£ £ £
Courses and training 15,659 15,659 114,134
4 INVESTMENT INCOME
Unrestricted Total Total
General 2020 2019
£ £ £
Bank interest receivable 151 151 238
5 OTHER INCOME
Unrestricted
funds Total
General 2020
£ £
Coronavirus Job Retention Scheme income 121,529 121,529

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6 EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Total Total
General Restricted 2020 2019
Note £ £ £ £
Bank charges 100 - 100 150
Travelling and subsistence 4,204 - 4,204 11,222
Grants payable 7 - - - 3,059
Wages and salaries 227,118 - 227,118 129,417
Programmes and events 13,810 1,731 15,541 55,895
Consultants and research
costs 1,641 4,999 6,640 6,743
Computer costs 1,819 - 1,819 1,851
Telephone 573 - 573 372
Printing, postage and
stationery 514 - 514 2,545
Training 265 - 265 1,873
Trustees meetings - - - 781
Accountancy 3,904 - 3,904 1,400
Audit fees 1,200 - 1,200 1,000
Professional fees 15,867 - 15,867 2,663
Premises and related
costs 11,897 - 11,897 4,552
Recruitment costs 1,935 - 1,935 18,819
Exchange rate loss - - - 504
Depreciation of furniture
and equipment 3,092 - 3,092 2,749
287,939 6,730 294,669 245,595

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7 GRANTS PAYABLE

Grants payable

**Grants ** to institutions
2020 2019
£ £
-
3,059

There were no grants paid in the year ended 31 December 2020.

Grants payable last year relate to Al Amarna International who are a partner organisation. The grant went towards the employment costs of a programme coordinator working throughout the USA.

8 NET INCOMING/OUTGOING RESOURCES

Net incoming/(outgoing) resources for the year include:

2020 2019
£ £
Audit fees 1,200 1,000
Other non-audit services 3,904 1,400
Depreciation of fixed assets 3,092 2,749

9 TRUSTEES' REMUNERATION AND EXPENSES

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

10STAFF COSTS

The aggregate payroll costs were as follows:

2020 2019
£ £
Staff costs during the year were:
Wages and salaries 201,375 116,888
Social security costs 19,121 10,249
Pension contributions 6,622 2,280
227,118 129,417

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

2020 2019
No No
Average number of employees 9 6

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

No employee received emoluments of more than £60,000 during the year

The total employee benefits of the key management personnel of the charity were £65,813 (2019 - £20,504).

11TAXATION

The charity is a registered charity and is therefore exempt from taxation.

12TANGIBLE FIXED ASSETS

12TANGIBLE FIXED ASSETS
Furniture
and
equipment Total
£ £
Cost
At 1 January 2020 10,994 10,994
Additions 1,500 1,500
At 31 December 2020 12,494 12,494
Depreciation
At 1 January 2020 2,749 2,749
Charge for the year 3,092 3,092
At 31 December 2020 5,841 5,841
Net book value
At 31 December 2020 6,653 6,653
At 31 December 2019 8,245 8,245
13DEBTORS
2020 2019
£ £
Trade debtors 1,597 -
Prepayments 241 2,634
Tax recoverable 10,518 7,592
12,356 10,226

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14CREDITORS: amounts falling due within one year

14CREDITORS: amounts falling due within one year
2020 2019
£ £
Trade creditors 168 -
Accruals 2,400 6,414
Deferred income 48,841 -
51,409 6,414

15FUNDS

Balance at
Balance at 31
1 January Incoming Resources December
2020 resources expended 2020
£ £ £ £
Unrestricted funds
Unrestricted funds 144,906 244,736 (287,939) 101,703
Restricted funds
Global Covenant of Religions fund 28,472 - - 28,472
Story Tent 8,046 - (4,999) 3,047
Finnis Scott Foundation - 2,500 (1,731) 769
E L Rathbone Trust - 1,250 - 1,250
John Snyder - 100,000 - 100,000
Total restricted funds 36,518 103,750 (6,730) 133,538
Total funds 181,424 348,486 (294,669) 235,241

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Balance at
Balance at 1 31
January Incoming Resources December
2019 resources expended 2019
£ £ £ £
Unrestricted funds
Unrestricted funds 220,693 161,464 (237,251) 144,906
Restricted
Global Covenant of Religions
fund 28,518 - (46) 28,472
Scriptural Reasoning salary 6,620 - (6,620) -
Story Tent - 13,230 (5,184) 8,046
Total restricted funds 35,138 13,230 (11,850) 36,518
Total funds 255,831 174,694 (249,101) 181,424

Unrestricted funds consists of the General Fund which meets the day to day running expenses of the foundation.

Restricted funds consists of:

Reduce religion-related violence and promote peace and reconciliation across the world.

Donation received to cover the payroll costs of the scriptural reasoning co-ordinator in the prior year.

Donation received for Scriptural Reasoning initiatives in primary schools.

Grant received towards delivering cost of conflict resolution course to Toxteth residents.

Donation received to cover the on-going core costs of the Charity through planned organisational growth.

Grant received towards the cost of the White Border restoration.

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16ANALYSIS OF NET ASSETS BETWEEN FUNDS

Total funds
Unrestricted at 31
funds Restricted December
General funds 2020
£ £ £
Tangible fixed assets 6,653 - 6,653
Current assets 146,459 133,538 279,997
Current liabilities (51,409) - (51,409)
Total net assets 101,703 133,538 235,241
Unrestricted
funds Restricted Total funds
General funds 2019
£ £ £
Tangible fixed assets 8,245 - 8,245
Current assets 143,075 36,518 179,593
Current liabilities (6,414) - (6,414)
Total net assets 144,906 36,518 181,424

17EFFECTS OF THE CORONAVIRUS PANDEMIC

In January 2020, COVID-19 was declared a global pandemic. Rose Castle Foundation took a number of steps in 2020 in order to reduce the impact on income and make cost savings, including:

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ROSE CASTLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18RELATED PARTY TRANSACTIONS

During the year the charity had the following related party transactions:

Mrs Sarah Snyder

(Charity's founding director)

The charity received a donation of £6,000 towards the cost of the digital platform project. At the balance sheet date the amount due to Mrs Sarah Snyder was Nil (2019 - £Nil).

Mr John Snyder

(Husband of Mrs Sarah Snyder)

The charity received a donation of £6,000 towards the cost of the digital platform project. An additional £100,000 restricted donation (inclusive of gift aid relief) was received to cover the charity's on-going core costs. At the balance sheet date the amount due to Mr John Snyder was Nil (2019 - £Nil).

Rose Castle Company Limited

(Mr John Snyder and Mrs Sarah Snyder are directors)

During the year, rent of £7,200 (2019 - £420) was paid to Rose Castle Company Limited. At the balance sheet date the amount due to Rose Castle Company Limited was Nil (2019 - £Nil).

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