2020-07-31-accounts - Crosslands

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Crosslands Unaudited financial statements for the year ended 31 July 2020 Charity number: 1167211

Crosslands

Unaudited financial statements for the year ended 31 July 2020

Contents
Trustees’ report for the year ended 31 July 2020	1
Independent Examiner's Report to the Trustees of Crosslands	6
Statement of financial activities for the year ended 31 July 2020	7
Balance sheet as at 31 July 2020	8
Notes to the financial statements for the year ended 31 July 2020	9

Trustees’ report for the year ended 31 July 2020

The trustees present their report together with the financial statements of Crosslands for the year ended 31 July 2020.

Objectives and Activities

Crosslands aims to provide excellent in-context theological training and resources for churches and church leaders in the UK, Europe and 10:40 window. Crosslands provides accessible theological education through two core programmes, Foundation and Seminary.

The Foundation programme is well established. It is studied individually, in a learning site (open to anyone within a geographical area) or a study group (a closed group usually ran within a church or a para-church organisation) accessed through our online platform, BibleMesh. Both learning sites and study groups teach the content in accordance with specific guidelines determined by Crosslands. They operate autonomously but are bound by a contract signed by the leader. This contract confirms their commitment to our aims, objectives and values and outlines their responsibilities.

The Seminary programme is run in-house with content accessed through a combination of online resources and teaching at residentials and seminar days throughout the year. Students are allocated tutor groups of 5-7 students and hubs of 40 – 50 students.

The CIO’s objectives, as set out in the constitution are:

to provide for the public benefit Christian training to educate and equip church leaders, mainly but not exclusively in the UK, Europe and 10:40 window, to have the knowledge and skills required to care for the spiritual, moral and welfare needs of their churches and wider communities;
to provide for the public benefit Christian resources that educate church congregations and individuals in accordance with Christian beliefs as outlined in our Statement of Faith; and
to advance the Christian faith for the benefit of the public in such charitable ways as the Charity Trustees think fit from time to time.

The main activities undertaken during the year in relation to these objectives were:

establishing a recognised, strong and distinct brand for in-context theological training;
developing an excellent curriculum that equips people of all stages of Christian development;
attracting a growing body of enrolled and potential students from across Europe;
employing a strong, cohesive and diverse faculty of academics and practitioner-tutors;
establishing an operational business plan to become a financially sustainable not-for profit organisation.

When planning the activities of the charity, the trustees have considered the Charity Commission guidance in relation to public benefit and in particular the guidance on the Advancement of Religion for the Public Benefit. The ways that the charity operates for the benefit of the wider public are detailed below:

Curriculum is developed in such a way as to be contextually adaptable and appropriate. This is to equip and train Christians to intentionally invest in local communities.
Content is accessible and relevant to a wide variety of people, including the Foundation programme which is available to those will little or no formal education.
Delivery model is designed to make training accessible to people in remote and dispersed locations, who would not normally be able to access high quality training.
Retail price of modules are aggressively discounted to make content available to a wide variety of students, to allow people to integrate study into their current context and so encourage people to study in groups which we believe provide greater educational outcomes.

Trustees’ report for the year ended 31 July 2020 (cont.) Achievements and Performance

The trustees consider the achievements of the CIO during the year to be:

The number of students enrolled in our Seminary programme at the start of the academic year (September 2019) was 33% higher than in the prior year. In addition to this we introduced a January student intake. The rolling nature of our programme facilitated a smooth integration of these students with our existing student population.
10 students successfully completed their final year of our unaccredited seminary course and we had our first two student complete the four-year MA in Christian Ministry in partnership with South Eastern Baptist Theological Seminary.
A continued diversification of our Seminary student body, with more than 87% of students located outside of London and SE England including students from 15 countries outside the UK and a 13% increase in the proportion of female students enrolled in our Seminary Programme
11 students successfully completed the first year of our tailored Kids and Youth Ministry variant of our Seminary Core Programme.
The development and implementation of a Music Ministry and Women in Ministry variants of out Seminary Core Programme.
The continued development of the Crosslands brand and reputation has resulted in student applications for the academic year 2020/21 being on a par with the prior year despite the uncertainty resulting from the pandemic. There has been increased interest in our January 2021 intake.
The continued growth in the number of Foundation Learning sites and Study groups.
Steady growth in the number of tutors working with us. We were delighted to have Mel Lacy and Matt Searles join our tutor body in September 2019 with a further four new tutors starting in September 2020.
The flexible and innovative nature of our Seminary delivery model allowed us to respond to the global COVID 19 pandemic with minimal disruption to the student experience. The cancelation of several conferences, restrictions on travel, and taking our usual summer residentials online allowed cost savings to be made for the financial year ending 31 July 2020. The pandemic resulted in a small number of students being placed on furlough by their employer, however as furloughed employees are still permitted to continue with training this has not had further implications for Crosslands. In addition to this we had a small number of students working as key workers. Tailored study plans were created for those students allowing them to complete the work required of them and continue on their course.

Financial review

The results for the year and the financial position of the charity are shown on pages 6 to 14.

The Statement of Financial Activities shows a surplus of income over expenditure during the year of £89,144 (2019: deficit of £6,372) with total reserves of £114,095 (2019: £24,951).

The charity received support from its founding partner, Acts29, of £95,582 (2019: £56,000)

Trustees’ report for the year ended 31 July 2020 (cont.)

The trustees have considered the charity’s requirement for reserves in light of the main risks to the organisation. The purpose of the Operating Reserve Policy for Crosslands is to ensure the stability of the mission, programs, employment, and ongoing operations of the organisation. The Operating Reserve is intended to provide an internal source of funds for situations such as a sudden increase in expenses, onetime unbudgeted expenses, unanticipated loss in funding, or uninsured losses. The reserve may also be used for one-time, nonrecurring expenses that will build long-term capacity, such as staff development, research and development, or investment in infrastructure. Operating Reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget gap. It is the intention of Crosslands for Operating Reserves to be used and replenished within a reasonably short period of time. The Operating Reserve Policy will be implemented in concert with the other governance and financial policies of Crosslands and is intended to support the goals and strategies contained in these related policies and in strategic and operational plans.

The Trustees have set a target level of reserves equal to four months of average operating costs. Currently the charity holds reserves of £105,285 (2019: £16,223).

Structure, Governance and Management

The organisation is a Charitable Incorporated Organisation, incorporated and registered as a charity on 19th May 2016. Crosslands was created by two organisations – Acts 29 and Oak Hill.

The company is established under a constitution, which contains the objects and powers of the organisation.

At any time there must be a minimum of four trustees. The board of Trustees is responsible for the appointment of new Trustees.

Every Trustee must be appointed for a term of up to three years by a resolution passed at a properly convened meeting of the Charity Trustees.

All trustees work voluntarily and receive no salary from the charity. Any expenses reclaimed or royalties paid from the charity are described in notes 10 and 11 of the accounts.

All trustees appointed are in full support of the charity’s aims and objectives.

Any newly appointed trustees will be given a copy of the current version of the constitution and a copy of the CIO’s latest Trustees’ Annual Report and statement of accounts.

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud or error.

Reference and administrative details

Charity name: Crosslands

Trustees:

Mr R Cunnington (appointed 9 Jul ’20) Mr P Moore Mr I Roberts Dr D Strange (resigned 14 Sep ’20) Mr D Steel (appointed 20 Feb ’20) Mr S Timmis (resigned 4 Feb ’20)

Charity registration number: 1167211

Registered office: 26 Rothbury Terrace, Newcastle upon Tyne, NE6 5XH

Professional advisors

Stewardship Services (UKET) Limited (Examiners)

CAF Bank Ltd (Bankers)

Trustees’ report for the year ended 31 July 2020 (cont.)

Trustees’ Responsibilities

Charity law requires us as trustees to prepare financial statements for each financial period that give a true and fair view of the state of the affairs of the charity, as at the balance sheet date, and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, they will:

select suitable accounting policies and apply them consistently;
observe methods and principles in the applicable Charity SORP;
make judgements and estimates that are reasonable and prudent;
State whether the applicable account 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 not appropriate to assume that the company will not continue on that basis.

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Account and Reports) Regulations, and the provision 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 trustees confirm that the accounts comply with current statutory requirements and those of the organisation’s governing document.

ON BEHALF OF THE BOARD:

Mr I Roberts (Trustee) 25 March 2021

Independent Examiner's Report to The Trustees of Crosslands ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 July 2020 on pages 7 to 15 following, which have been prepared on the basis of the accounting policies set out on pages 9 to 10.

Responsibilities and basis of report

As the charity’s trustees of the Charitable Incorporated Organisation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since 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 because I am a member of the Institute of Chartered Accountants in England and Wales, 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:

accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

Jacob Farley ACA

14 April 2021

Institute of Chartered Accountants in England and Wales

Stewardship 1 Lamb's Passage London EC1Y 8AB

Statement of financial activities for the year ended 31 July 2020

			Restricted			Restricted
		Unrestricted	income	Total	Unrestricted	income	Total
		Funds	funds	funds	Funds	funds	funds
		Year	Year	Year		Year	Year
		ended	ended	ended	Year ended	ended	ended
		31 Jul ‘20	31 Jul ‘20	31 Jul ‘20	31 Jul ‘19	31 Jul ‘19	31 Jul ‘19
Description by
activity	Note	£	£	£	£	£	£
Incoming resources	3
Income and endowments
from:
Donations and legacies		95,645	82	95,727	101,635	1,746	103,381
Charitable activities		290,329	0	290,329	201,345	0	201,345
Total		385,974	82	386,056	302,980	1,746	304,726
Resources expended	4
Expenditure on:
Raising funds		4,583	0	4,583	5,355	0	5,355
Charitable activities		292,329	0	292,329	302,600	3,143	305,743
Total		296,912	0	296,912	307,955	3,143	311,098
Net income/expenditure		89,062	82	89,144	(4,975)	(1,397)	(6,372)
Net movement in funds		89,062	82	89,144	(4,975)	(1,397)	(6,372)
Reconciliation of funds:	9
Total funds brought
forward		16,223	8,728	24,951	21,198	10,125	31,323
Total funds carried
forward		105,285	8,810	114,095	16,223	8,728	24,951

No transfers were made between funds in the current or prior period. There were no other recognised gains other than those noted above.

The notes on pages 8 to 14 form part of these accounts.

Balance sheet as at 31 July 2020

			Restricted			Restricted
		Unrestricted	income		Unrestricted	income
		Funds	funds	Total funds	Funds	funds	Total funds
		31 Jul ‘20	31 Jul ‘20	31 Jul ‘20	31 Jul ‘19	31 Jul ‘19	31 Jul ‘19
	Note	£	£	£	£	£	£
Current assets
Debtors	7	8,661	0	8,661	72,486	0	72,486
Cash at bank and in hand		126,346	8,810	135,156	83,180	8,728	91,908
Total current assets		135,007	8,810	143,817	155,666	8,728	164,394
Creditors: amounts falling
due within oneyear	8	(29,722)	0	(29,722)	(139,443)	0	(139,443)
Net current assets		105,285	8,810	114,095	16,223	8,728	24,951
Total assets less current
liabilities		105,285	8,810	114,095	16,223	8,728	24,951
Total net assets		105,285	8,810	114,095	16,223	8,728	24,951
Fund Balances	9
Restricted income funds		0	8,810	8,810	0	8,728	8,728
Unrestricted funds		105,285	0	105,285	16,223	0	16,223
Total funds		105,285	8,810	114,095	16,223	8,728	24,951

The notes on pages to 14 form part of the accounts.

Approved by the Trustees for issue on 25 March 2021.

Mr I Roberts (Trustee)

Charity registration number 1167211

Notes to the financial statements for the year ended 31 July 2020

1. Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value. The accounts 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 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) issued on 16 July 2014 and with the Charities Act 2011 and UK Generally Accepted Practice as it applies from January 2015.

The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective since 2005 which has since been withdrawn.

The accounts have been prepared on the going concern basis, as there are no material uncertainties about the charity’s ability to continue. Based on the adequacy of the charity’s reserves as at the balance sheet date, along with their knowledge of the charity’s ability to meet bills, payments and other liabilities as they fall due, the directors have a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future. In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.

The charity constitutes a public benefit entity as defined by FRS 102.

There have been no changes in the accounting policies in the reporting year. No changes to accounting estimates have occurred in the reporting year. No material prior year errors have been identified in the reporting year.

2. Accounting policies

Recognition of income

These are included in the Statement of Financial Activities (SoFA) when:

The charity becomes entitled to resources;
It is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity; and
The monetary value can be measured with sufficient reliability.

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses.

Donations

Grants and donations are only included in the SoFA when the general income recognition criteria are met.

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay our resources and the amount of the obligation can be measured with reasonable certainty.

Deferred income

Material items of deferred income have been expressly included in the accounts.

Notes to the financial statements for the year ended 31 July 2020 (cont.)

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

Tangible fixed assets for use by charity

These are capitalised if they can be used for more than one year, and cost at least £1,000. Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life.

Debtors

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

Cash flow statement

The trustees have taken advantage of the exemption in S1a of FRS 102 from including a cash flow statement in the financial statements on the grounds that the charity is small.

Pension scheme arrangements

The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

Taxation

The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

Notes to the financial statements for the year ended 31 July 2020 (cont.)

3. Analysis of incoming resources

	Unrestricted	Restricted		Unrestricted	Restricted
	Funds	funds	Total funds	Funds	funds	Total funds
	y/e 31 Jul ‘20	y/e 31 Jul ‘20	y/e 31 Jul ‘20	y/e 31 Jul ‘19	y/e 31 Jul ‘19	y/e 31 Jul ‘19
	£	£	£	£	£	£
Donations:
Donations and gifts	63	0	63	40,269	0	40,269
General grants provided
byother charities	95,582	82	95,664	61,366	1,746	63,112
Total donations	95,645	82	95,727	101,635	1,746	103,381
Charitable activities:
Fee income	271,439	0	271,439	185,105	0	185,105
Online sales	18,091	0	18,091	9,400	0	9,400
Other	799	0	799	6,840	0	6,840
Total charitable activities	290,329	0	290,329	201,345	0	201,345

Total income	385,974	82	386,056	302,980	1,746	304,726

All income in the current year was unrestricted except for £82 (2019: £1,746) received in order to fund the translation of foundation material from English into the Turkish language (2019: Polish and Turkish languages).

Notes to the financial statements for the year ended 31 July 2020 (cont.)

4. Analysis of expenditure

	Unrestricted	Restricted		Unrestricted	Restricted
	Funds	funds	Total funds	Funds	funds	Total funds
	y/e 31 Jul ‘20	y/e 31 Jul ‘20	y/e 31 Jul ‘20	y/e 31 Jul ‘19	y/e 31 Jul ‘19	y/e 31 Jul ‘19
	£	£	£	£	£	£
Expenditure on
raising funds:
Advertising,
marketing, direct mail
andpublicity	4,583	0	4,583	5,355	0	5,355
Total expenditure on
raising funds	4,583	0	4,583	5,355	0	5,355
Expenditure on
charitable activities:
Seminary course
delivery	100,411	0	100,411	84,363	0	84,363
Seminary course
curriculum	12,044	0	12,044	9,843	0	9,843
Study days	0	0	0	20	0	20
Consumable
equipment	932	0	932	1,943	0	1,943
Foundation course
development	0	0	0	2,809	0	2,809
Foundation course
delivery	5,853	0	5,853	1,253	0	1,253
Royalties	858	0	858	990	0	990
Translation costs	8,649	0	8,649	8,936	3,143	12,079
Employment costs	149,736	0	149,736	167,563	0	167,563
Staff training	731	0	731	2,392	0	2,392
Office rental and
utilities	1,320	0	1,320	5,734	0	5,734
Travel and
subsistence	2,322	0	2,322	4,738	0	4,738
Governance costs	731	0	731	776	0	776
Administrative costs	8,741	0	8,741	8,871	0	8,871
Other Acts 29
academies	0	0	0	2,369	0	2,369
Total expenditure on
charitable activities	292,329	0	292,329	302,600	3,143	305,743

Total expenditure	296,912	0	296,912	307,955	3,143	311,098

5. Fees for examination or audit of the accounts

Fees of £1,920 were paid in relation to the independent examiner’s fees for reporting on the accounts (2019: £1,440). In addition to this fee for payroll service of £631 (2019: £1,200) were paid to the independent examiner.

Notes to the financial statements for the year ended 31 July 2020 (cont.)

6. Staff costs

*. Staff costs*
	y/e 31 Jul ‘20	y/e 31 Jul ‘19
	£	£
Wages and salaries	140,421	156,400
Social security costs	8,140	10,106
Otherpension costs	1,175	1,057
	149,736	167,563

During the year there was one (2019: one) staff working for the charity whose contracts were with and were paid by related parties with whom Crosslands had secondment agreements with. The total amount reimbursed was £17,731 (2019: £16,416).

One employee received total employee benefits in excess of £60,000 and not more than £70,000 in the year (2019: 0).

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

y/e	31	Jul ‘20	y/e	31	Jul ‘19
		£			£
		2			2
		1			1
		3			3

Charitable activities Governance Total

7. Debtors

	31 July 2020	31 July 2019
	£	£
Trade debtors	507	60,412
Prepayments and accrued income	8,154	12,074
	8,661	72,486

Notes to the financial statements for the year ended 31 July 2020 (cont.)

8. Creditors: amounts falling due within one year

	31 July 2020	31 July 2019
	£	£
Trade creditors	1,402	14,024
Accruals and deferred income	28,320	122,415
Taxation and social security	0	3,004
	29,722	139,443

At the year end the charity had deferred income of £22,201 (2019: £120,102) relating to student fees paid in advance for the following academic year. All deferred income from 2019 has been released to income in 2020.

9. Charity funds

Fund name	1 Aug‘19	Income	Expenditure	At 31 July‘20
Restricted - Turkish translation project	992	82	0	1,074
Restricted - Polish translation project	954	0	0	954
Restricted - Russian translation project	6,782	0	0	6,782
Unrestricted funds	16,223	385,974	296,912	105,285
	24,951	386,056	296,912	114,095

Fund name	1 Aug‘18	Income	Expenditure	At 31 July‘19
Restricted - Turkish translation project	200	792	0	992
Restricted - Polish translation project	0	954	0	954
Restricted - Russian translation project	9,925	0	3,143	6,782
Unrestricted funds	21,198	302,980	307,955	16,223
	31,323	304,726	311,098	24,951

The restricted funds represent funds made available for the translation of foundation material from English into Russian, Polish and Turkish.

10. Trustee and key management personnel remuneration and benefits

The key management personnel of the charity comprise the trustees and the Executive Director of Crosslands.

During the year Mr S Timmis received royalty payments from the charity totalling £840 (2019: £489) for coauthoring course material used by the charity.

During the year Mrs J Charteris received total employee benefits totalling £65,000 (2019: £65,000) in her role as Executive Director.

Notes to the financial statements for the year ended 31 July 2020 (cont.)

10. Trustee expenses

The following amounts were reimbursed to trustees during the period:

	y/e 31 Jul ‘20	y/e 31 Jul ‘19
	£	£
Mr J Woodrow	0	304
Mr D Steel	33	0

11. Related party disclosures

Related parties are defined as trustees, key management and their connected persons.

A former trustee, Mr S Timmis, although not a trustee of Acts 29, was CEO of that charity. During the period, the charity received donations totalling £82,000 (2019: £56,000) from Acts 29.

The charity shares a trustee (Mr P Moore) with another charity, A29 Europe. During the period, the charity received donations totalling £13,582 (2019: £0) from Acts 29. The charity did not make any payments during the year (2019: £2,620) to A29 Europe.

A trustee, Mr I Roberts, although not a trustee of Oak Hill, is a member of the Oak Hill Council and is regarded as senior management. During the period, the charity made payments to Oak Hill totalling £17,731 (2019: £16,416) for reimbursement of salary costs relating to the secondment of faculty member Dr T Ward.