Charity number: 1170596 THE RELAY TRUST UNAUDITED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2020 LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB
THE RELAY TRUST CONTENTS Page Reference and Admlnlstratlve Detalls of the Charlty, Its Trustees and Advlsers Trustees. Report Independent Examiner's Report Statement of Financial Activities Balance Sheet Statement of Cash Flows Notes to the Flnanclal Statements 9-16
THE RELAY TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2020 Trustees Neil Smith Rogeria Mulrine Charity registered number 1170596 Principal office 54 Upper Monlagu Street London W1H 1SL Accountants Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 Sl Paul's Churchyard London EC4M 8AB Page 1
THE RELAY TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2020 The Trustees present their report together with the financial statements of The Relay Trust (the Charity) for the year from 1 April 2019 10 31 March 2020. The Trustees confirm that the financial slalements of the Charity comply with the current slalutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice ISORPI, applicable to charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. STRUCTURE. GOVERNANCE AND MANAGEMENT The Relay Trust is governed by a Trust Deed dated 19 March 2016. The Deed names the Initial Trustees and sets out the means by which further Trustees will be appointed Iclause 71. This sets out that the power of appointing new Iruslees is vested in the Settlor, and In the case of his death, in such person as Is nominated in his will or by the remaining Trustees. The only Iimilation on the choice of Trustees is that the total number cannot exceed eight. OBJECTWES AND ACTIVITIES In setting the objectives and planning the activity of the charity, the Trustees have given careful consideration lo the Charity Commission's general guidance on public benefit. The objectives of the Charity include to promote the education, including social and physical training, in leadership, ministry, agriculture, enterprise and governance of people, all in accordance with Christian principles of people in such ways as the Charity Trustees think fil, including (but not limited tol by.. awarding lo such persons scholarships, maintenance allowances or grants tenable at any university, college or institution by higher or further education., providing In their education (including the study of music or other arts), to undertake travel in furtherance of that education or to prepare for entry to any occupation, trade or profession on leaving any education establishment., supporting the construction, maintenance and operating costs of any university, college or institution of higher or further education,. supporting the further training of the staff of such institutions including ftjrther study, in service training and attending conferen$,. and providing grants to and co operating with others to assist with the above objects. Iv) The charity aims lo provide facilities, supplies and serviTrs lo advance health and lo save lives, this includes the prevention or relief of sickness, disease or human suffering. To advance citizenship and community development, lo include providing support for social and community infrastructure in such ways as the charity trustees think fit, including (but not limited tol.. the promotion of civic responsibility and good citizenship., the promotion of urban and rural regeneration., liiil the promotion of volunteering livl the promotion of the voluntary sector Iv) promoting the efficiency and effectiveness of charities and the effective use of charitable resources,. and Ivil the promotion of community capacity building. To advance the religion in such ways as the charity trustees think fil, including (but not limited tol.. the provision of places of worship., raising awareness and understanding of religious beliets and practices., carrying out religioLJS devotional acts," and carrying out missionary and outreach work. Page 2
THE RELAY TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2020 To prevent and relieve poverty, in such ways as the charity trustees think fit, including Ibul not limited lol.. grants of money., the provision of items {either outright or on loan) such as fvrniture, bedding, clothing, food, fuel, healing applianS, washing machines and fridges., liiil payment for serVIS such as essential house decorating, insulation and repairs, laundering, meals on wheels, outings and entertainment and utilities., livl the provision of facilities such as the supply of tools or books, payments of fees for Inslruclion, examination or other expenses connected with vocational training, language, literacy, numerical or technical skills, Iravelling expenses to help the recipients lo earn their living, equipment and funds for recreational pursuits or training Intended lo bring the quality of life of the beneficiaries lo a reasonable standard., and Iv) the provision of money management and debt counselling advice. ACHIEVEMENTS AND PERFORMANCE During the year to 31 March 2020 The Relay Trust structured the delivery of the Objectives and Activities around four key pillars.. Developing training methods appropriate for the African context., Providing structural support for churches with limited income operating in challenging environments., Implementing a long-term strategy lo support the development of training material In French., Supporting the operating and capital costs of training colleges. Develo Trainin Methods Led by Rev Mette Klausen, Relay Trust is developing a syllabus to train leaders in African churches. This syllabus focuses on the use of appropriate language Ibolh European and triball, supported by examples and Illustrations that are relevant lo the learning context. and adapted to the loftenl poor prior learning experience of the trainees. This syllabus Is designed to be delivered through multiple channels lelectronic and written) and leaching environments (village groups, colleges and on-line). Mette is supported by Issa Maguey (media applicalionsl and Fidele Eljeke IEnglishlFrench Iranslationl. They are both based in Cameroon. In parallel, Rev Alex Klausen leads the development on the On-Line Well, a small, portable WIFI transmitter that will deliver training materials directly lo mobile phones In the village context. These areas lack reliable and affordable Internel connections. The prototype deviTr was successfully tested in Sierra Leone and Guinea during 201912020, and development is now focussed on manufacturing and ulilising production models. Alex Is supported in software development by Lars Gunnarsson (based In Switzerlandl and Brian Ward, an e-learning specialist with experience in Papua New Guinea and now based in the United Slates. Relay Trust is supporting the construction of the Mount Zion Training Centre at Mortem, Sierra Leone. Mount Zion will become the centre for the distribution of training materials through the On-Line Well in West Africa, providing a location for training trainers and developing training resources. Relay Trust continues to develop a neOrk of organisations who have a similar focus, and five team members attended an international conference in The Nethedands in 2019_ Structural Su Relay Trust has developed strong partnerships with leaders of the Anglican Church in Sierra Leone, Guinea and the Democratic Republic of the Congo. These countries all suffer from poor national governance,. political and economic instability", weak education systems,. long-term health challenges,. a history of political violence and banditry., and great povety. Relay Trust works with the church leaders in these countries to enable them lo maintain organisalional integrity, including the payment of wages, and lo train and support the next generab'on of leaders. During 201912020 specific support was provided as follows.. Page 3
THE RELAY TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2020 In the Diocese of Freetown, Sierra Leone, lo provide salary support whilst a building that was the main source of income is reconstructed. Payment has also enabled the Bishop lo employ a PA, the Diocese to purchase a reliable FVVD vehicle, and set up a library lo support training Initiatives., In the Diocese of Bo, Sierra Leone, lo provide salary support during a period of significant Internal division, and the development of a prOsS lo assist in the election of a new bishop. A reliable vehicle was also purchased for the Bishop., In the Di0Se of Guinea, Guinea, lo provide salary and adminislralive support to enable the Di0Se lo maintain Income generating activities, including a medical clinic and a school., In the Anglican Province of the Congo and Brazzaville, to provide salary and administrative support for the national leader, Archbishop Masimango Katanda. Relay Trust also supports the training of church leadership through GAFCON Ilhe Global Anglican Futures Conference). GAFCON provided training opportunities for church leaders in Jerusalem, Dubai and Rio de Janeiro, and oversaw the Bishops Training Institute, which provided conferences during 2019-2020 attended principally by African bishops. The delivery and oversight of this support has been led by Rev Alex Klausen, supported in project management by Anders Nielsen and Maria Silkjaer {bolh based in Denmarkl. French Lan ua esu ort The development of training material in French Is limited by the resources of the Proleslanl churches in France. Relay Trust supports European Collaboration, through which new churches are supported in France. ortin Colle es erations and ca Relay Trust supported the construction of the Guil and Borana Training Centre in Adolla, Ethiopia. The Trust also provided for the salary of Rev Mesfin Birhanu, a national training co-ordinator for the Four Square Gospel Church. The Relay Trust believes that the most effective way for churches in difficult locations to become sustainable organisations that can continue lo deliver spiritual and community leadership is lo develop a well-educaled cadre of local leaders. Training will enable these leaders lo have a clear understsnding of the message of the Christian faith, the context in which their congregations live, and the capacity to apply this leaching to the challenges of their communibes. FINANCIAL REVIEW As at 31 March 2020 the Trust had £1,272 in the bank. During the year, income tolalled £676, 173, consisting of £676, 169 in donations and gift aid and £4 in interest. Expenditure was £1.342,253. consisting of £1,076,886 in direct grants lo partners in Africa, £246,974 in staff contracts and travel, £5,814 in legal and accounting fees. £2.237 in bank charges and £9, 160 in administrative costs. This resulted in carried forward nel liabilities of £573,595 arising from the unpaid committed donations lotalling £702,909 as at 31 March 2020 which will be funded by donations from Trustees and other related parties. The Charity does not have a reserves policy as sufficient funding is received from Trustees and related parties to cover expenditure for each year. This report was approved by the Trustees and signed on their behalf by.. Neil Smith Trustee Dale.. 28 January 2021 Page 4
THE RELAY TRUST INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2020 Independent Examlner's Report to the Trustees of The Relay Trust I'the charlty'l I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2020. Responslbllltles and 8asls of Report As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 I'the 2011 ACVI. I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent Examlner's Ststement 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 l am qualified lo undertake the examination because l am a member of the Institute of Chartered Accounlanls in England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come lo my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act., or the accounts do not accord with those records,. or the accounts do not comply with the applicable requirements concerning the fomi and conlenl of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and faiv view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other mallers in connection with the examination to which attention should be drawn in this report in order lo enable a proper understanding of the accounts to be reached. This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might stsle lo the charity's Trustees those mallers l am required lo slate to them in an Independent Examiner's Report and for no other purpose. To the fullest exlenl permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report. LL Fa4 Lee FaY Independent examiner Lubbock Fine LLP Chartered Accountants Palernosler House 65 St Paul's Churchyard London EC4M 8AB Dale..28 January 2021 Page 5
THE RELAY TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020 Unrestrlcted funds 2020 Total funds 2020 Total funds 2019 Note Income from: Donations 676,169 676,169 541,556 Investment income Total income 676,173 676,173 541,564 Expenditure on: Charitable activities 1,342,253 1,342,253 504,533 Total expenditure 1,342,253 1,342,253 504,533 Net movement in funds Reconciliation of funds: 1666,0801 1666,0801 37,031 Total funds brought forward Nel movement in funds 92,484 1666,0801 92,484 1666,0801 55,453 37,031 Total funds carried fop•vard 1573,5961 1573,5961 92,484 The Ststement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 9 10 16 form part of these financial ststements. Page 6
THE RELAY TRUST BALANCE SHEET AS AT 31 MARCH 2020 2020 2019 Note Fixed assets Intangible assets Current assets 20,785 Debtors Cash al bank and in hand 110,617 1,272 84,699 9,585 111,889 94,284 Creditors.. amounts falling due within one year 1706,2691 11,8001 Net current liabilities l assets 1594,3801 92,484 Total net assets 1573,5951 92,484 Charity funds Unreslricled funds 1573,5951 92,484 Total funds 1573,5951 92,484 The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. tsmd Neil Smith Trustee Dale.. 28 January 2021 The notes on pages 9 10 16 form part of these financial statements. Page 7
THE RELAY TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2020 2020 2019 Note Cash flows from operating activities Nel cash provided by operating activities 10 12,467 8,876 Cash flows from investing activities Interest income App development costs 120,7841 Net cash (used inyprovided by investing activities 120,7801 Chango in cash and cash equivalonts in thg ygar Cash and cash equivalents al the beginning of the year 18,3131 9,585 8,884 701 Cash and cash equivalents at the end of the year 11 1,272 9,585 The notes on pages 9 10 16 form part of these financial statements Page 8
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Accountlng pollcles 1.1 Basis of preparation of financial statements The financial slalements have been prepared in accordan with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The Relay Trust meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy. 1.2 Going concern The accounts have been prepared under the going concem basis, which assumes that current and future sources of funding will be adequate for the charity's needs. The charity meets ils running costs from donations received. The Trustees continuously review the funding prospects and expenditure levels and take action should funding expectations and reserves appear inadequate. On the basis of this policy, the Trustees consider that the charity will continue in operational existence for the forseeable future. In forming this assessment the Iruslees have taken into consideration the impact of COVID-19. 1.3 Fund accounting General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 1.4 Income All income is recognised On the charity has entitlement lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations received with imposed reslriclions are classified as reslricled funds. 1.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity., this is normally upon notification of the interest paid or payable by the Bank. Page 9
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Accountlng pollcles Icontlnuedl 1.6 Expendlture Donations payable are charged in the year when the offer is made except in those cases where the offer is conditional, such donations being recognised as expenditure when the conditions allaching are fulfilled. Donations offered subject to conditions which have not been mel at the year end are noted as a commitment, bul not accrued as expenditure. Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, il is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs are allocated to the applicable expenditure headings and activities of the charity. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include governan costs. 1.7 Intanglble assets and amortlsatlon Intangible assets are initially recognised at cost. After recognition, under the cost model, intsngible assets are measured al cost less any accumulated amorti'salion and any accumulated impairment losses. All intsngible assets are considered to have a finite useful life, which must be reviewed al each reporting dale. If a reliable estimate of the useful life cannot be made, it is presumed to be no more than len years. Amortisalion is provided on intangible assets al rates calculated to write off the cost of each asset on a straighl-line basis over its expected useful life. 1.8 Debtors Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.9 Cash at bank and In hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.10 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in setdement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised al the amount that the charity anlicipales it will pay lo settle the debt or the amount il has received as advanced payments for the goods or seNices it musl provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Page 10
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Accountlng pollcles Icontlnuedl 1.11 Flnanelal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments a initially recognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 1.12 Taxatlon The Relay Trust is a registered charity and based on the activities undertaken is not liable for UK corporation tax. The charity was not VAT registered during the year and therefore all expenses are inclusive of any VAT which cannot be recovered. Income from donatlons Unrestrlcted funds 2020 Total funds 2020 Total funds 2019 Donations and gift aid 676,169 676,169 541,556 Total 2019 541,556 541,556 Analysis of expenditure by activities Activities undertaken directly 2020 Support ost5 2020 Total funds 2020 Total fvnds 2019 Charitable activity costs 1,295,343 46,909 1,342,252 504,533 Total 2019 486,876 17,657 504,533 Page 11
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Analysls of expendlture by actlvltles lcontlnuedl Analysls of dlrect costs Total funds 2020 Total funds 2019 Wages and Salaries Donations payable staff travel expenses Other staff expenses 203,983 1,076,886 13,293 1,181 164,305 288,889 32,593 1,089 1,295,343 486,876 Donations payable is made up of donations to institutions of £749,559 12019 £146,231). This includes a donation to the Mount Zion Project lotslling £466,461 12019 - £nill, Bishops, Training Institute totalling £145,197 12019 - £119,2801, a donation to The Europe Collaboration of £42,000 12019 - £12,5001, donation lo The Relay Trust DK of £22,871 12019 - £nill, a donation lo Youthscape of £50,000 12019 £nill and a donation to Kolo Group of £22,729 12019 - £nill. All of these donations were in line with the Charity's objectivies as sel out in the Trustees. report. Analysls of support costs Total funds 2020 Total funds 2019 Wages and Salaries Bank charges Independent examiner fees Igovernancel Legal and professional fees Administrative fees 29,698 2,237 4,920 894 2,122 3,900 432 9,180 11,203 46,909 17,657 Page 12
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Staff costs 2020 2019 Wages and salaries 233,681 164,305 The average number of persons employed by the charity during the year was as follows.. 2020 No. 2019 No. Average number of employees The number of employees whose employee benefits (excluding employer pension costs) exeded £60,000 was.. 2020 No. 2019 No. In the band £60,001- £70,000 Total remuneration paid to key management personnel was £124.75812019 - £nill. Intangible assets App under develop ment Cost Additions 20,785 At 31 March 2020 20,785 Net book value At 31 March 2020 20,785 At 31 March 2019 The additions in the year relate lo the development of an online learning application which was not opererational by 31 March 2020 and therefore has not been amortised. Page 13
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Debtors 2020 2019 Due within one year Other debtors 110,617 84,699 Creditors: Amounts falling due within one year 2020 2019 Accruals and deferd income 3,360 702,909 1,800 Donations payable 706,269 1,800 Statement of funds Statement of funds - current year Balance at 31 March 2020 Balance at 1 Aprll 2019 Income Expendlture Unrestrlcted funds General Funds 92,484 676,174 11,342,253) 1573,5951 Statement of funds - prior year Balance at 31 March 2019 Balance at 1 April 2018 Incc>me Expenditure Unrestricted funds General Funds 55,453 541,564 1504,5331 92,484 Page 14
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Analysls of net assets between funds Analysls of net assets between funds - current perlod Unrestricted funds 2020 Total funds 2020 Intsngible fixed assets Current assets Creditors due within one year 20,785 111,889 1706,2691 20,785 111,889 1706,2691 Total 1573,5951 1573,5951 Analysis of net assets between funds - prior period Unrestricted funds 2019 Total funds 2019 Current assets Creditors due within one year 94,284 11,8001 94,284 11,8001 Total 92,484 92,484 10. Reconciliation of net movement in funds to net cash Ilow from opgrating activitlOS 2020 2019 Nel incomelexpendilure for the period las per Statement of Financial Aclivitiesl 1666,0801 37,031 Adjustments for: Interest income 141 125,9181 704,469 181 128,1471 Increase in debtors Increase in creditors Net cash provlded by operatlng a¢tlvltles 12,487 8,876 Page 15
THE RELAY TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 11. Analysls of cash and cash equlvalents 2020 2019 Cash in hand 1,272 9,585 Total cash and cash equivalents 1,272 9,585 12. Analysis of changes in net debt At 1 April 2019 Cash flows At 31 March 2020 Cash al bank and in hand 9,585 18,3131 1,272 9,585 18,3131 1,272 13. Related party transactions During the year, unreslricled donations lotalling £565,42912019 - £472,231) were recieved from Trustees and other related parties. Page 16