Unaudited financial statements for the year ended 31 July 2022
Charity number: 1167211
Crosslands
Unaudited financial statements for the year ended 31 July 2022
Contents
| Trustees' report for the year ended 31 July 2022 | 1 |
|---|---|
| Independent Examiner's Report to the Trustees of Crosslands | 7 |
| Statement of fnancial activities for the year ended 31 July 2022 | 8 |
| Balance sheet at 31 July 2022 | 9 |
| Cash fow statement for the year ended 31 July 2022 | 10 |
| Notes to the fnancial statements for the year ended 31 July 2022 | 11 |
Trustees' report for the year ended 31 July 2022
The trustees present their report together with the financial statements of Crosslands for the year ended 31 July 2022.
Objectives and activities
Crosslands exists to provide flexible, accessible, and trusted theological training and resources that support local churches’ health, growth and mission.
Crosslands’ objectives, as set out in the Constitution, are:
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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;
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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
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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.
Crosslands’ programmes provide leaders and other disciples with relevant and affordable resources for every stage of discipleship and leadership, through all of life. Our delivery model is designed to ensure our programmes will serve churches which have poor access to more traditionally delivered training and resources, either due to socioeconomic factors or location.
The main activities undertaken during the year in relation to these objectives were:
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Delivering and expanding an accredited Seminary programme for students throughout the UK and beyond (the most significant area of activity by some margin).
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Delivering a suite of flexible, accessible Foundation training materials to resource local church training.
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Delivering a range of short courses on cultural engagement and cultural leadership through Crosslands Forum.
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Designing and preparing for the launch of a new programme, 'Cultivate’ which will raise up a new cohort of biblical thought leaders able to create new resources and to train church leaders and members to engage confidently with current issues in society.
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Designing and preparing for the launch of a new Lifelong Learning programme to provide for the ongoing ministerial development of those with many years’ experience in ministry who need refreshment or support.
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Creating and running a new annual conference, ‘ Theology for Life’
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Providing expert speakers and trainers for other organisations to help resource local and specialist training initiatives.
Public benefit
When planning the activities, the trustees have applied the Charity Commission guidance in relation to public benefit, 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:
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The 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.
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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.
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The 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.
1
Trustees' report for the year ended 31 July 2022 (cont.)
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The retail prices of courses and resources are set to ensure that content is 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.
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Crosslands staff are made available to speak and run training courses in a wide range of communities and for a range of other organisations, regardless of their ability to pay for such services.
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Virtually all Crosslands students, course participants and alumni are utilising the benefits of this training to serve local communities both during and after their training with Crosslands This will include leading church communities, youth and children’s work, training younger leaders, providing counselling and pastoral care, and many other forms of community service, including many in very deprived areas.
Achievements and Performance
The Seminary programme remained our most significant activity by some margin, with total student numbers increasing by almost 20% during the year and the number of early withdrawals from the programme remaining very low. Enrolments for the next year (completed by the end of July 2022) were looking yet stronger again. This growth is particularly encouraging in the context of ongoing pandemic uncertainties and changes in the wider theological education landscape.
We continued to develop the diversity of our student body in terms of ethnicity, gender and international participation, with around 15% of students from BAME backgrounds and over 30% women being significantly more diverse than other similar organisations.
A complete redevelopment and launch of a new suite of Foundation courses was achieved during the year, with excellent core material further enhanced by the application of specialist learning design expertise for the first time. The courses were all created on an improved learning platform which adds to accessibility and flexibility, and they include resources designed to support different learning styles and abilities.
Our core staff team has expanded from four at the start of the year to nine by the end of the year giving us much greater depth and resilience. The number of contracted contributors (tutors and other specialist teaching and content producers) increased to 17, bringing the total to 26.
New faculty included the appointment of a new director to launch Crosslands Forum, starting in September 2021. In the first one hundred days of Crosslands Forum we directly engaged over 300 participants in events and short courses, and reached several thousand people through podcasts, radio interviews and publications.
A key goal was to diversify sources of funding for new programmes. During the year further funding was secured to move Crosslands Forum beyond the initial start up phase and new funding was secured for the Cultivate programme, enabling Crosslands to continue to deliver a range of specialist courses on cultural engagement and biblical ethics, and to move ahead into detailed planning, faculty recruitment and launch of new programmes for the start of the following year. Plans were created for the establishment of a new level of smaller partnerships which will continue to broaden out that funding base into the following year.
By the end of 2021-22 Crosslands had achieved all the key financial and growth goals in its original strategic plan (first set out in 2017), and at least one other more recently identified strategic goal (the creation of Crosslands Forum) despite having navigated the pandemic and other significant challenges in that period. This achievement demonstrates that Crosslands is effectively meeting important needs for those we exist to serve; it also brings with it a level of reputational, financial and institutional health that enables us to continue to pursue our longer-term objectives with confidence.
2
Trustees' report for the year ended 31 July 2022 (cont.)
Financial review
The results for the year and the financial position of the charity are shown on pages 8 to 20.
We are pleased to report continued financial health and growth.
During the year income increased by £175,565, to £636,740, and expenditure increased by £255,399, to £569,838. It is worthy of note that the previous year’s expenditure included some substantial cost savings due to online working during covid. As a result, the surplus for the year decreased by £79,834 to £66,902 and the charity's net assets increased by the same amount, to £327.734. Net current assets increased by £66,189 to £320,738.
Principal risks
The trustees maintain a strategic risk register which is reviewed at least annually and also when new risks are identified or changes to risks become known.
Any damage to key strategic relationships that enable the delivery and accreditation of our seminary programme is recognised as a risk for ongoing operations and we therefore actively manage our relationships with those key partners.
Loss or shortage of key staff has the potential to impact our ability to deliver key programmes, whether operationally or academically. This risk has become significantly lower over the past year with our larger staff team, and is further reduced by maintaining a wide base of contractors and associate staff who are able to contribute to programme development and delivery. Codification of course content and improvements to the integration and automation of business processes further mitigates this risk.
Sustaining income and a healthy cash flow has been a strength of the organisation thus far but will become more challenging as costs increase. Appropriate fee increases, continued careful management of costs, and the development of new sources of funding are all helping to limit the impact of cost increases.
Reserves policy
The trustees have considered the charity's requirement for reserves in light of the main risks to the organisation. The Operating Reserve Policy for Crosslands aims to ensure the stability of the organisation's mission, programs, employment, and ongoing operations. The Operating Reserve is intended to provide an internal source of funds for situations such as a sudden increase in expenses, one-time 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 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 unrestricted net current assets of £236,485 (2021: £192,992) and is complying with its reserves policy.
The trustees have not identified any significant events that have had a material effect on the financial performance or position of the organisation.
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Trustees' report for the year ended 31 July 2022 (cont.)
Plans for future periods
Our key aims for the next two years are:
To continue the growth and maturation of the Crosslands Seminary programme, including the establishment of new partnerships that will expand the reach of the programme outside of UK and Europe.
To extend the reach of our Foundation resources into new markets, enabling us both to serve a wider constituency of churches and to benefit from a return on the investment made in this programme over the past year.
To create a new programme that bridges our Foundation and Seminary programmes, providing an accessible route into more advanced theological education for those without prior tertiary education.
To launch the first cohort of the new Cultivate programme and see new resources being generated by programme participants, thus extending the scope and reach of Crosslands Forum into new subject areas and reaching new audiences.
To extend the new Lifelong and Forum short course offerings in both scope and number.
To extend the application of specialist learning design input (including learning needs support) into more of our courses.
To invest in the streamlining, integration and automation of key business processes to help us maintain high standards of service for learners at an affordable cost.
Structure, Governance and Management
The organisation is a Charitable Incorporated Organisation, incorporated and registered as a charity on 19th May 2016. The charity is established under a constitution, which contains the objects and powers of the organisation. The constitution was updated on 6th May 2021 to reflect a change in the involvement of the two founding charities.
Responsibility for setting policy and for determining the parameters within which the charity should operate rests with the trustees who meet regularly to monitor the activities of the charity. The trustees have a duty to identify and review the risks to which the charity is exposed, be they operational, financial or reputational, and ensure appropriate controls are in place to provide reasonable assurance against fraud or error. Responsibility for the day-to-day operation of the charity has been delegated to a senior management team led by Jen Charteris.
Recruitment and appointment of new trustees
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 appointed fully support the charity's aims and objectives.
All trustees work voluntarily and receive no salary from the charity. Any expenses reclaimed or royalties paid from the charity are described in note 7 of the accounts.
Most trustees bring prior experience of governance. Upon appointment, they are provided with key documents and participate in at least two conversations with other trustees. Essential information on how governance works in practice at Crosslands is provided in the form of a governance manual. The trustees conduct a board effectiveness evaluation approximately once every two years.
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Trustees' report for the year ended 31 July 2022 (cont.)
Organisational structure
The board of trustees governs Crosslands and meets at least three times a year (usually four). The trustees appoint the directors and delegate the day-to-day running of the charity to them. Directors report to the board jointly and participate in an annual review with trustee representatives individually.
The Head of Finance also serves as company secretary and is a member of the executive leadership team.
Pay and remuneration
The trustees adopted a salary scale linked to higher education pay scales in 2020. The trustees set and review pay for directors according to this benchmark. Directors in turn set staff salaries accordingly.
Reference and administrative details
Charity name: Crosslands Key Management: Mrs J Charteris (Executive Director) Dr D Strange (Director of Crosslands Forum) Mrs C Carvel (Head of Finance & Company Secretary) Trustees: Mr R Cunnington Mrs M Hendry (appointed 8 February 2023) Mr S McKay (appointed 6 June 2022) Mr P Moore (resigned 29 November 2022) Mr I Roberts Dr D Strange (resigned 14 September 2021) Mr D Steel Mrs R McLaughlin (appointed 5 May 2022) Charity registration number: 1167211 Registered office: MEA House, Newcastle upon Tyne, NE1 8XS Professional advisors Stewardship Services (UKET) Limited ( Independent Examiners) CAF Bank Ltd (Banker) Wise (Banker)
Trustees' Responsibilities
The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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:
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select suitable accounting policies and apply them consistently;
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observe methods and principles in the applicable Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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Trustees' report for the year ended 31 July 2022 (cont.)
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State whether the applicable account standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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.
Approval
This report was approved by the trustees and signed on their behalf by:
Mr I Roberts (Trustee)
12 May 2023
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Independent Examiner’s report to the Trustees of Crosslands for the ended 31 2022 year July
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 July 2022 on pages 8 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 11 to 13.
Responsibilities and basis of the 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:
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accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Lourens du Plessis ACA CA (SA)
19 May 2023
Member of the Institute of Chartered Accountants in England and Wales
Stewardship 1 Lamb's Passage London EC1Y 8AB
7
Statement of financial activities for the ended 31 2022 year July
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | ||
|---|---|---|---|---|---|---|---|
| Funds | funds | funds | Funds | funds | funds | ||
| Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||
| 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘21 | 31 Jul ‘21 | 31 Jul ‘21 | ||
| Description by activity | Note | £ | £ | £ | £ | £ | £ |
| Incoming resources | |||||||
| Income & endowments from: | |||||||
| Donations & legacies | 3 | 46,519 | 123,492 | 170,011 | 57,840 | 72,850 | 130,690 |
| Charitable activities | 4 | 466,730 | 0 | 466,730 | 330,485 | 0 | 330,485 |
| Total | 513,249 | 123,492 | 636,740 | 388,325 | 72,850 | 461,175 | |
| Resources expended | |||||||
| Expenditure on: | |||||||
| Raising funds | 5 | 10,019 | 377 | 10,396 | 970 | 3,850 | 4,819 |
| Charitable activities | 5 | 404,713 | 154,728 | 559,442 | 295,700 | 13,920 | 309,619 |
| Total | 414,733 | 155,105 | 569,838 | 296,669 | 17,769 | 314,439 | |
| Net income/expenditure | 98,516 | (31,614) | 66,902 | 91,656 | 55,081 | 146,736 | |
| Transfer between funds | (53,509) | 53,509 | 0 | 0 | 0 | 0 | |
| Net movement in funds | 45,007 | 21,895 | 66,902 | 91,656 | 55,081 | 146,736 | |
| Reconciliation of funds: | 14 | ||||||
| Total funds brought forward | 196,941 | 63,891 | 260,832 | 105,285 | 8,810 | 114,095 | |
| Total funds carried forward | 241,948 | 85,786 | 327,734 | 196,941 | 63,891 | 260,832 |
There were no other recognised gains other than those noted above.
The notes on pages 11 to 20 form part of these accounts.
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Balance Sheet as at 31 July 2022
| Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
Unrestricted Funds Restricted funds Total funds Unrestricted Funds Restricted funds Total funds 31 Jul ‘22 31 Jul ‘22 31 Jul ‘22 31 Jul ‘21 31 Jul ‘21 31 Jul ‘21 Note £ £ £ £ £ £ |
|---|---|---|---|---|---|---|---|---|
| Non-current assets | ||||||||
| Intangible assets 8 1,533 1,533 3,067 2,333 2,333 4,667 Tangible assets 9 3,930 0 3,930 1,616 0 1,616 |
||||||||
| Total non-current assets 5,463 1,533 6,996 3,950 2,333 6,283 Current assets Stock 210 0 210 0 0 0 Debtors 10 27,586 0 27,586 16,578 0 16,578 |
||||||||
| Cash at bank and in hand | 254,523 | 85,375 | 339,898 | 249,794 | 64,549 | 314,342 | ||
| Total current assets | 282,319 | 85,375 | 367,694 | 266,371 | 64,549 | 330,920 | ||
| Creditors: amounts falling due within oneyear |
11 | (45,834) | (1,122) | (46,956) | (73,380) | (2,991) | (76,371) | |
| Net current assets | 236,485 | 84,253 | 320,738 | 192,991 | 61,558 | 254,549 | ||
| Total assets less current liabilities | 241,948 | 85,786 | 327,734 | 196,941 | 63,981 | 260,832 | ||
| Total net assets | 241,948 | 85,786 | 327,734 | 196,941 | 63,891 | 260,832 | ||
| Fund Balances Restricted income funds |
14 0 85,786 85,786 0 63,891 63,891 |
|||||||
| Unrestricted funds | 14 | 241,948 | 0 | 241,948 | 196,941 | 0 | 196,941 | |
| Total funds | 241,948 | 85,786 | 327,734 | 196,941 | 63,891 | 260,832 |
The notes on pages 8 to 20 form part of the accounts.
Approved by the Trustees for issue on 12 May 2023
Mr I Roberts (Trustee)
Charity registration number 1167211
9
Cash flow Statement as at 31 July 2022
| Year ended | Year ended | ||
|---|---|---|---|
| 31 Jul ‘22 | 31 Jul ‘21 | ||
| Note | £ | £ | |
| Cash fows from operating activities: | |||
| Net cashprovided by (used in)operatingactivities | 15 | 29,597 | 186,140 |
| Cash fows from investing activities: | |||
| Purchase ofproperty, plant and equipment | (4,042) | (6,955) | |
| Net cash provided by (used in) investing activities | (4,042) | (6,955) | |
| Cash fows from fnancing activities: | |||
| Net cashprovided by(used in) financingactivities | 16 | 0 | 0 |
| Change in cash and equivalents in the reporting period | 25,555 | 179,185 | |
| Cash and equivalents at the beginning of theyear | 314,342 | 135,157 | |
| Cash and cash equivalents at the end of the year | 339,897 | 314,342 | |
| Analysis of change in net debt: | |||
| At start of year | Cash-fows | At end of year | |
| £ | £ | £ | |
| Cash | 314,342 | 25,555 | 339,897 |
| Total net funds/ (debt) | 314,342 | 25,555 | 339,897 |
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Notes to the financial statements for the ended 31 2022 year July
1. Basis of preparation
These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value. These 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 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 trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity, therefore, continues to adopt the going concern basis in preparing its financial statements.
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
Income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations includes donated facilities, services, and goods. Facilities, services, and goods donated for the charity's own use are recognised as income when receivable at their value to the charity.
When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year-end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from seminary fees and other events and courses.
11
Notes to the financial statements for the ended 31 2022 year July (cont.)
Grants and donations are only included in the SoFA when the general income recognition criteria are met.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure on raising funds comprises the costs incurred on fundraising.
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the charity is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the strategic management of the charity.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
Intangible fixed assets
The cost of software is capitalised and amortised on a straight-line basis over its expected useful life, which is expected to be three years.
Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Equipment: 3 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
Stocks
Stocks of goods purchased for re-sale are stated at the lower of cost and net realisable value
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.
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Notes to the financial statements for the ended 31 2022 year July (cont.)
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 charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
Financial instruments
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).
Foreign currency translation
These financial statements are presented in sterling, which is the charity's functional currency.
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Income and expenditure denominated in a foreign currency are translated into sterling at the exchange rate prevailing on the date of the transaction.
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Monetary assets and liabilities denominated in a foreign currency are re-translated at the exchange rate prevailing at the balance sheet date.
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Non-monetary assets are measured at historic cost at the rate of exchange prevailing on the date of the transaction and are not subsequently re-translated.
All differences arising from the application of the above policy are charged (or credited) to the Statement of Financial Activities.
Critical accounting estimates and areas of judgement
The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
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Notes to the financial statements for the ended 31 2022 year July (cont.)
3. Donations
| 3. Donations | ||||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total funds | |
| Funds | funds | funds | Funds | funds | ||
| Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |
| 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘21 | 31 Jul ‘21 | 31 Jul ‘21 | |
| £ | £ | £ | £ | £ | £ | |
| Donations of cash & similar | 4,201 | 34,051 | 38,253 | 600 | 29,850 | 30,450 |
| Donations in kind | 1,103 | 0 | 1,103 | 1,654 | 0 | 1,654 |
| Othergrants receivable | 41,215 | 89,440 | 130,655 | 55,586 | 43,000 | 98,586 |
| Total donations | 46,519 | 123,492 | 170,011 | 57,840 | 72,850 | 130,690 |
Donations in kind comprise of donated facilities, namely an office that was made available rent-free between May 2022 and September 2022 for administrative activities.
£123,492 of donations received were restricted in nature (2021: £72,850). £49,000 and £40,440 were given to be used to help launch and run Crosslands Forum and the Cultivate programme respectively (2021: £68,000/£0). £34,000 was given to fund salaries associated with Partnership development (2021: £0). A further £51 was received to supplement the fees of any student who suffers financial hardship (2021: £4,850).
4. Income from charitable activities
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| Funds | funds | funds | Funds | funds | funds | |
| Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |
| 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘21 | 31 Jul ‘21 | 31 Jul ‘21 | |
| £ | £ | £ | £ | £ | £ | |
| Fee income | 458,597 | 0 | 458,597 | 311,126 | 0 | 315,127 |
| Online sales | 2,651 | 0 | 2,651 | 16,682 | 0 | 16,682 |
| Other | 5,481 | 0 | 5,481 | 2,676 | 0 | 2,676 |
| Total charitable activities | 466,730 | 0 | 466,730 | 330,485 | 0 | 330,485 |
14
Notes to the financial statements for the ended 31 2022 year July (cont.)
5. Analysis of expenditure
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total funds | |
|---|---|---|---|---|---|---|
| Funds | funds | funds | Funds | funds | ||
| Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |
| 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘22 | 31 Jul ‘21 | 31 Jul ‘21 | 31 Jul ‘21 | |
| £ | £ | £ | £ | £ | £ | |
| Expenditure on raising funds: | ||||||
| Advertising,marketing&publicity | 10,019 | 377 | 10,396 | 970 | 3,850 | 4,819 |
| Total expenditure on raising funds | 10,019 | 377 | 10,396 | 970 | 3,850 | 4,819 |
| Expenditure on charitable | ||||||
| activities: | ||||||
| Course delivery | 164,506 | 0 | 164,506 | 98,954 | 0 | 98,954 |
| Course development | 7,940 | 0 | 7,940 | 8,884 | 0 | 8,884 |
| Consumable equipment | 11,042 | 898 | 11,940 | 2,974 | 0 | 2,974 |
| Royalties | 2,365 | 0 | 2,365 | 1,143 | 0 | 1,143 |
| Translation costs | 0 | 0 | 0 | 3,542 | 0 | 3,542 |
| Employment costs | 199,478 | 139,993 | 339,471 | 161,811 | 12,520 | 174,331 |
| Staff training | 535 | 376 | 911 | 1,177 | 0 | 1,177 |
| Offce rental and utilities | 4,385 | 3,081 | 7,466 | 2,152 | 91 | 2,243 |
| Travel and subsistence | 4,368 | 3,283 | 7,651 | 811 | 113 | 925 |
| Governance costs | 0 | 0 | 0 | 409 | 34 | 443 |
| Administrative costs | 10,095 | 7,097 | 17,192 | 13,845 | 1,161 | 15,006 |
| Total expenditure on charitable | ||||||
| activities | 404,713 | 154,728 | 559,442 | 295,700 | 13,920 | 309,619 |
| Total expenditure | 414,733 | 155,105 | 569,838 | 296,669 | 17,769 | 314,439 |
All restricted expenditure in the year related to Crosslands Forum, with the exception of £898 of consumable equipment which was purchased or use on the Cultivate programme. In the prior year all expenditure that was restricted in nature related to Crosslands Forum.
6. Fees for examination or audit of the accounts
Fees of £2,820 were paid in relation to the independent examiner's fees for reporting on the accounts (2021: £2,100). In addition, the charity paid £945 (2021: £702) to Stewardship for payroll bureau services.
15
Notes to the financial statements for the ended 31 2022 year July (cont.)
- Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses
| Year ended | Year ended | |
|---|---|---|
| 31 Jul ‘22 | 31 Jul ‘21 | |
| Wages and salaries | 285,673 | 158,476 |
| Social security costs | 25,815 | 9,806 |
| Otherpension costs | 22,056 | 5,275 |
| 333,544 | 173,557 |
The average monthly number of employees during the year was eight (2021: four).
| Employee’s emoluments exceeding £60,000 | Year ended | Year ended |
|---|---|---|
| (including pension contribution) | 31 Jul ‘22 | 31 Jul ‘21 |
| £70,000 - £80,000 | 1 | 0 |
| £60,000 - £70,000 | 1 | 1 |
The key management personnel of the charity comprise the trustees named on page 6, the Executive Director of Crosslands, the Director of Crosslands Forum and the Head of Finance.
During the year, key management received employee benefits totalling £169,396 (2021: £65,000).
No expenses were paid to trustees in the current year (2021: none).
8. Intangible fixed assets
| 8. Intangible fixed assets | ||
|---|---|---|
| Website | Total | |
| £ | £ | |
| Cost | ||
| At 1 August 2021 | 4,800 | 4,800 |
| Additions | 0 | 0 |
| At 31 July 2022 | 4,800 | 4,800 |
| Amortisation | ||
| At 1 August 2021 | 133 | 133 |
| Charge for theyear | 1,600 | 1,600 |
| At 31 July 2022 | 1,733 | 1,733 |
| Net book value | ||
| At 31 July 2022 | 3,067 | 3,067 |
| At 31 July2021 | 4,667 | 4,667 |
16
Notes to the financial statements for the ended 31 2022 year July (cont.)
9. Tangible fixed assets
| 9. Tangible fixed assets | ||
|---|---|---|
| Computer Equipment | Total | |
| £ | £ | |
| Cost | ||
| At 1 August 2021 | 2,155 | 2,155 |
| Additions | 4,042 | 4,042 |
| At 31 July 2022 | 6,197 | 6,197 |
| Accumulated depreciation | ||
| At 1 August 2021 | 539 | 539 |
| Charge for theyear | 1,729 | 1,729 |
| At 31 July 2022 | 2,268 | 2,268 |
| Net book value | ||
| At 31 July 2022 | 3,930 | 3,930 |
| At 31 July2021 | 1,616 | 1,616 |
| 10. Debtors |
||
| 31 July 2022 | 31 July 2021 | |
| £ | £ | |
| Trade debtors | 4,714 | 0 |
| Other debtors | 2,759 | 0 |
| Prepayments and accrued income | 20,113 | 16,578 |
| 27,586 | 16,578 | |
| 11. Creditors: amounts falling due within one year |
||
| 31 July 2022 | 31 July 2021 | |
| £ | £ | |
| Trade creditors | 8,263 | 6,810 |
| Accruals | 11,571 | 26,680 |
| Deferred income (note 12) | 27,121 | 42,880 |
| 46,956 | 76,371 |
17
Notes to the financial statements for the ended 31 2022 year July (cont.)
12. Deferred Income
| 12. Deferred Income |
||
|---|---|---|
| 31 July 2022 | 31 July 2021 | |
| £ | £ | |
| Balance at the beginning of the reporting period | 42,880 | 22,201 |
| Amount released to income | (39,130) | (22,201) |
| Amount deferred in year | 23,371 | 42,880 |
| Balance at the end of the reporting period | 27,121 | 42,880 |
All deferred income related to student fees paid in advance for the following academic year. The income deferred at the period end will be released to income over the following periods:
| 31 July 2022 | 31 July 2021 | |
|---|---|---|
| £ | £ | |
| Within one year | 27,121 | 39,130 |
| After oneyear | 0 | 3,750 |
| 27,121 | 42,880 |
13. Pension commitments
During the year employer's pension contributions totalling £22,056 (2021: £5,275) were payable to defined contribution personal pension schemes. No pension contributions were owing at the balance sheet date (2021: £nil).
14. Charity funds
During the year the movements in the charity’s funds were as follows:
| 1 Aug ‘21 | Income | Expenditure | Transfers | 31 July ‘22 | |
|---|---|---|---|---|---|
| Fund name | £ | £ | £ | £ | £ |
| Restricted - Turkish translation project | 1,074 | 0 | 0 | 0 | 1,074 |
| Restricted - Polish translation project | 954 | 0 | 0 | 0 | 954 |
| Restricted - Russian translation project | 6,782 | 0 | 0 | 0 | 6,782 |
| Restricted - Seminary bursary | 4,850 | 51 | (1) | (3,000) | 1,900 |
| Restricted – Crosslands Forum | 50,231 | 49,000 | (154,206) | 56,509 | 1,533 |
| Restricted – Cultivate | 0 | 40,440 | (898) | 0 | 39,542 |
| Restricted – Partnership | 0 | 34,000 | 0 | 0 | 34,000 |
| Unrestricted funds | 196,941 | 513,249 | (414,733) | (53,509) | 241,948 |
| 260,832 | 636,740 | (569,838) | 0 | 327,734 |
The restricted funds represent funds made available for:
-
the translation of foundation material from English into Russian, Polish and Turkish;
-
costs incurred in relation to setting up and running Crosslands Forum;
-
costs incurred in relation to setting up and running the Cultivate programme;
-
employment costs associated with the development of Partnerships and fundraising; and
-
a student bursary to supplement the fees of any student who suffers financial hardship in order to allow them to continue on the seminary programme.
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Notes to the financial statements for the ended 31 2022 year July (cont.)
£3,000 of the Restricted - Seminary Bursary fund was utilised in the year. The corresponding transfer relates to the movement of funds to accommodate this. The transfer of £56,590 from Unrestricted funds to Restricted - Crosslands Forum is to offset the deficit in the fund as a result of a deficit in the fund at the year-end.
Analysis of net assets by fund
The assets and liabilities of the various funds were as follows:
| Unrestricte | Restricted | Restricted | Restricted | Restricted | Restricted | ||
|---|---|---|---|---|---|---|---|
| d funds | Partnership | Cultivate | Forum | Bursary | Translation | Total | |
| £ | £ | £ | £ | £ | £ | £ | |
| Intangible fxed assets | 1,533 | 0 | 0 | 1,533 | 0 | 0 | 3,067 |
| Tangible fxed assets | 3,930 | 0 | 0 | 0 | 0 | 0 | 3,930 |
| Stock | 210 | 0 | 0 | 0 | 0 | 0 | 210 |
| Debtors | 27,586 | 0 | 0 | 0 | 0 | 0 | 27,586 |
| Cash at bank and in hand | 254,523 | 34,000 | 39,542 | 1,122 | 1,900 | 8,810 | 339,897 |
| Creditors due within 1year | (45,834) | 0 | 0 | (1,122) | 0 | 0 | (46,956) |
| 241,948 | 34,000 | 39,542 | 1,533 | 1,900 | 8,810 | 327,324 |
In the previous year the movements in the charity’s funds were as follows:
| 1 Aug ‘20 | Income | Expenditure | Transfers | 31 July ‘21 | |
|---|---|---|---|---|---|
| Fund name | £ | £ | £ | £ | £ |
| Restricted - Turkish translation project | 1,074 | 0 | 0 | 0 | 1,074 |
| Restricted - Polish translation project | 954 | 0 | 0 | 0 | 954 |
| Restricted - Russian translation project | 6,782 | 0 | 0 | 0 | 6,782 |
| Restricted - Seminary bursary | 0 | 4,850 | 0 | 0 | 4,850 |
| Restricted – Crosslands Forum | 0 | 68,000 | (17,769) | 0 | 50,231 |
| Unrestricted funds | 105,285 | 388,325 | (296,669) | 0 | 196,941 |
| 114,095 | 461,175 | (314,439) | 0 | 260,832 |
Analysis of net assets by fund
In the previous year the assets and liabilities of the various funds were as follows:
| Unrestricted | Restricted | Restricted | Restricted | ||
|---|---|---|---|---|---|
| funds | Forum | bursary | translation | Total | |
| £ | £ | £ | £ | £ | |
| Intangible fxed assets | 2,333 | 2,333 | 0 | 0 | 4,666 |
| Tangible fxed assets | 1,616 | 0 | 0 | 0 | 1,616 |
| Debtors | 16,578 | 0 | 0 | 0 | 16,578 |
| Cash at bank and in hand | 249,794 | 50,889 | 4,850 | 8,810 | 314,343 |
| Creditors fallingdue within oneyear | (73,380) | (2,991) | 0 | 0 | (76,371) |
| 196,941 | 50,231 | 4,850 | 8,810 | 260,832 |
19
Notes to the financial statements for the ended 31 2022 year July (cont.)
15. Reconciliation of net income to net cash flow from operating activities
| 31 July 2022 | 31 July 2021 | |
|---|---|---|
| £ | £ | |
| Net income for the reporting period | 66,902 | 146,736 |
| Adjustments for: | ||
| Depreciation charges and provisions for impairment | 3,329 | 672 |
| (Increase)/decrease in stocks | (210) | 0 |
| (Increase)/decrease in debtors | (11,008) | (7,917) |
| Increase/(decrease)in creditors | (29,415) | 46,649 |
| Net cash provided by (used in) operating activities | 29,597 | 186,140 |
16. Analysis of cash and cash equivalents
| 31 July 2022 | 31 July 2021 | |
|---|---|---|
| £ | £ | |
| Cash at bank with immediate access | 339,897 | 314,342 |
| Total cash and cash equivalents | 339,897 | 314,342 |
17. Related party disclosures
Related parties are defined as trustees, key management and their connected persons.
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 £0 (2021: 18,072) for reimbursement of salary costs relating to the secondment of faculty member Dr T Ward.
Except as disclosed in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.
20