## **MUSIC & WORSHIP FOUNDATION CIO**
## **Registered Charity 1175280**
## **REPORT AND ACCOUNTS**
## **for the period from**
**1 April 2020 to 31 March 2021**
Prepared on Accruals Basis - SORP 2015 (FRS 102) format
Page 1 of 11
## **Music & Worship Foundation CIO - 1175280 Balance Sheet detailed**
**----- Start of picture text -----**
As at As at
31/03/2021 31/03/2020
Fixed
400001: MacBook 3.0 GHz £0.00 £0.00
400002: MacBook Air 1.3 GHz £0.00 £0.00
400003: Apple Hard Drive £0.00 £0.00
400004: Acer Hard Drive £42.95 £58.58
400005: Bose S1 Pro P/A Unit £320.82 £437.49
400006: SE V7 Microphones (pair) £85.94 £117.19
400007: Allen & Heath ZED 6 Mixer £51.56 £70.31
£501.27 £683.57
Current
500300: Co-op Bank Current £80,821.44 £28,281.54
A t
501000: Gift-Aid Recoverable £312.50 £630.00
502000: Charity Vouchers Lodged £0.00 £0.00
502100: Items for Banking £0.00 £0.00
504000: Card Reader Sales £0.00 £0.00
P t A it d
504001: Bank Transfers Awaited £0.00 £245.00
505000: Expenses Pre-Paid £418.56 £0.00
Z05: Accounts Receivable £360.00 £1,677.60
£81,912.50 £30,834.14
Liabilities
601111: Payments due to £0.00 £0.00
H
602000: Charge Card Transactions £14.39 £26.00
M d
608000: National Insurance due £0.00 £0.00
from Employees
608011: NEST Payments due from £0.00 £0.00
E l
608100: National Insurance due £0.00 £0.00
f MWF CIO
608111: NEST Payments due from £0.00 £0.00
MWF CIO
608200: Income Tax Due £0.00 £0.00
608500: Student Loan Repayments £0.00 £0.00
D
Z04: Accounts Payable £0.00 £75.00
£14.39 £101.00
£82,399.38 £31,416.71
Reserves
Excess / (deficit) to date £50,564.11 -£15,603.91
Starting balances £31,835.27 £47,439.18
£82,399.38 £31,835.27
Represented by Funds:-
Unrestricted £45,349.38 £22,835.27
Designated £37,050.00 £9,000.00
Restricted £0.00 £0.00
Endowment £0.00 £0.00
Total £82,399.38 £31,835.27
**----- End of picture text -----**
Page 2 of 11
## **Music & Worship Foundation CIO - 1175280 Analysis of income and expenditure Selected period: 01 April 2020 to 31 March 2021**
|**Income and endowments**
**_Donations and legacies_**
110000 - Donations Gift-Aided
110004 - Donations non-Gift-Aided
110008 - Gifts from Churches
**_Donations and legacies Totals_**
**_Income from charitable activities_**
120104 - Sales of Engage DVD
120108 - Hartman Rhyming Bible CD
120112 - Hartman Rhyming Bible Book
120116 - Video Training Course USB Stick
120120 - Sales of Creative Journal
120122 - "Worship in the Woods" Service Pack
120124 - "Thy Kingdom Come" Sales
120128 - Sales of "How Would Jesus Lead
Worship?"
120132 - "Whole Life Worship" Book Sales
120136 - "Whole Life Worship" Journey Pack
120140 - Sales of WLW Study Guides
120144 - Sales of "Simple Worship"
120146 - Worship in Waiting (Church) Sales
120148 - "Outdoor Worship" Book Sales
120150 - Worship in Waiting (Personal) Sales
120152 - "Wilderness" Service Packs
120156 - "Wilderness" Personal Journals
120158 - Jesus & Emotions Sales
120160 - Harvest Worship Book Sales
120164 - Sales of Worship Colouring Book
120168 - Sales of "Together With God"
120172 - Outside Premium Content sold
120176 - Sales, Other
120180 - Dispatch Charges on Online Sales
120200 - Licenses Downloaded
120204 - Journal Page Downloads
120208 - "Thy Kingdom Come" Downloads
120212 - Video & Music Downloads
120300 - Royalties Income
120304 - Engage Fees Received
120308 - Bookings Income, Special Events
**_Income from charitable activitiesTotals_**
**_Investments_**
130000 - Bank Interest
**_Investments Totals_**
**_Other income_**
140000 - Gift-Aid Tax Recovered
140004 - Grants received
140008 - Professional Fees Received
140012 - Other Income
140016 - PayPal Bonus|**Totals**
**Notes**
**Unrestricted**
**Designated**
**Restricted**
**This year**
**Last year**
£11,747.50
£0.00
£2,808.00
£14,555.50
£7,567.00
£8,085.62
£4,010.00
£1,623.00
£13,718.62
£2,443.00
£740.00
£0.00
£250.00
£990.00
£170.00
£20,573.12
£4,010.00
£4,681.00
£29,264.12
£10,180.00
1
£84.00
£0.00
£0.00
£84.00
£180.00
£78.64
£0.00
£0.00
£78.64
£593.42
£162.36
£0.00
£0.00
£162.36
£1,168.58
£168.00
£0.00
£0.00
£168.00
£0.00
£0.00
£0.00
£0.00
£0.00
£1,872.00
£262.00
£0.00
£0.00
£262.00
£0.00
£975.00
£0.00
£0.00
£975.00
£1,395.00
£1,033.00
£0.00
£0.00
£1,033.00
£358.98
£158.00
£0.00
£0.00
£158.00
£873.85
£190.00
£0.00
£0.00
£190.00
£1,266.74
£176.00
£0.00
£0.00
£176.00
£81.60
£420.00
£0.00
£0.00
£420.00
£1,318.33
£4,766.80
£0.00
£0.00
£4,766.80
£0.00
£986.00
£0.00
£0.00
£986.00
£589.90
£4,813.00
£0.00
£0.00
£4,813.00
£0.00
£4,177.25
£0.00
£0.00
£4,177.25
£2,143.40
£4,596.05
£0.00
£0.00
£4,596.05
£2,447.00
£19,638.00
£0.00
£0.00
£19,638.00
£0.00
£1,014.93
£0.00
£0.00
£1,014.93
£2,050.00
£100.00
£0.00
£0.00
£100.00
£129.50
£27.96
£0.00
£0.00
£27.96
£42.93
£687.65
£0.00
£0.00
£687.65
£1,376.00
£3.00
£0.00
£0.00
£3.00
£20.36
£2,694.50
£0.00
£0.00
£2,694.50
£1,572.95
C
£4,049.00
£0.00
£0.00
£4,049.00
£129.00
£150.00
£0.00
£0.00
£150.00
£166.02
£60.00
£0.00
£0.00
£60.00
£23.00
£735.00
£0.00
£0.00
£735.00
£120.00
£162.29
£0.00
£0.00
£162.29
£278.04
£1,250.00
£0.00
£0.00
£1,250.00
£7,281.56
2
£1,621.00
£0.00
£0.00
£1,621.00
£520.00
£55,239.43
£0.00
£0.00
£55,239.43
£27,998.16
£0.00
£0.00
£0.00
£0.00
£0.14
£0.00
£0.00
£0.00
£0.00
£0.14
£2,883.13
£0.00
£672.00
£3,555.13
£1,891.75
£0.00
£25,050.00
£0.00
£25,050.00
£0.00
£6,535.00
£0.00
£0.00
£6,535.00
£5,670.60
3
£102.60
£0.00
£0.00
£102.60
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00|
|---|---|
**----- Start of picture text -----**
Other income Totals £9,520.73 £25,050.00 £672.00 £35,242.73 £7,562.35
Income and endowmentsGrand totals £85,333.28 £29,060.00 £5,353.00 £119,746.28 £45,740.65
Expenditure
Expenditure on charitable activities
300000 - Consultancy & Other Fees £108.00 £0.00 £0.00 £108.00 £233.00
300004 - Musicians' & Team Fees £0.00 £0.00 £0.00 £0.00 £80.00
300008 - Recording & Production Costs £0.00 £0.00 £0.00 £0.00 £6,810.46
300012 - Royalties Paid £310.00 £0.00 £2,250.00 £2,560.00 £48.00
300016 - Travel Expenses (Events) £0.00 £0.00 £0.00 £0.00 £1,141.46
300020 - Production of OwnedPublications £13,738.46 £0.00 £0.00 £13,738.46 £6,243.00
300024 - Dispatch Costs of Goods Sold £2,562.34 £0.00 £0.00 £2,562.34 £1,855.14 C
300026 - Realisation Contribution £1,919.56 £0.00 £0.00 £1,919.56 £0.00 D
300028 - Child Protection Costs £129.00 £0.00 £0.00 £129.00 £120.00
300036 - Copyright Fees £0.00 £0.00 £0.00 £0.00 £7.20
300044 - Catering Costs £0.00 £0.00 £0.00 £0.00 £23.48
300052 - Website & Online Costs £253.57 £0.00 £0.00 £253.57 £492.79
300056 - Venue Hire £0.00 £0.00 £0.00 £0.00 £166.00
Expenditure on charitableactivities Totals £19,035.33 £0.00 £2,250.00 £21,285.33 £17,220.53
Other expenditure
310100 - Accountancy Costs £156.00 £0.00 £0.00 £156.00 £150.00
310104 - Accounts Examiner's Fees £60.00 £0.00 £0.00 £60.00 £60.00
310108 - Travel Expenses (Admin) £0.00 £0.00 £0.00 £0.00 £704.06
310112 - Office Printing & Stationery £145.65 £0.00 £0.00 £145.65 £149.83
310116 - Office Postage & Telephone £427.21 £0.00 £0.00 £427.21 £332.60
310120 - Office Resources Bought £122.89 £0.00 £0.00 £122.89 £38.84
310124 - Equipment & Software Bought £358.02 £0.00 £0.00 £358.02 £964.17
310200 - PayPal charges £1,287.70 £0.00 £75.73 £1,363.43 £503.89
310204 - Card Reader Charges £0.67 £0.00 £0.00 £0.67 £66.90
310208 - Bank Charges £6.20 £0.00 £0.00 £6.20 £90.80
310300 - Freelance Fees £625.00 £0.00 £1,000.00 £1,625.00 £670.00
310304 - Albania Support Payments £3,597.34 £0.00 £0.00 £3,597.34 £2,000.00 4
310404 - Net Salaries £26,602.33 £2,499.37 £2,499.17 £31,600.87 £29,260.16
310408 - Nat Ins Employees £1,952.40 £0.00 £173.28 £2,125.68 £2,197.44
310412 - NEST Deductions Employees £1,100.45 £0.00 £99.35 £1,199.80 £1,164.60
310416 - Nat Ins MWF CIO £0.00 £0.00 £0.00 £0.00 £0.00
310420 - NEST Deductions MWF CIO £660.27 £0.00 £59.61 £719.88 £698.67
310424 - Income Tax £2,298.60 £0.00 £207.20 £2,505.80 £2,381.80
310428 - Student Loan Deductions £538.00 £0.00 £48.00 £586.00 £576.09
310436 - Contributions to Child-Minding £0.00 £0.00 £0.00 £0.00 £40.00
310500 - Purchase of Outside Premium Content £0.00 £0.00 £0.00 £0.00 £626.80
310504 - Public Liability Insurance £418.56 £0.00 £0.00 £418.56 £418.56
310512 - Stock Bought £695.54 £0.00 £0.00 £695.54 £950.05
310516 - Third Party Sales Commission £0.00 £0.00 £0.00 £0.00 £33.19
310520 - Depreciation £182.30 £0.00 £0.00 £182.30 £45.58 5
Other expenditure Totals £41,235.13 £2,499.37 £4,162.34 £47,896.84 £44,124.03
Expenditure Grand totals £60,270.46 £2,499.37 £6,412.34 £69,182.17 £61,344.56
Net Position £25,062.82 £26,560.63 -£1,059.34 £50,564.11 -£15,603.91
**----- End of picture text -----**
## **Music & Worship Foundation CIO**
## **Registered Charity Number: 1175280**
## **Trustees' Report for the Year Ended 31 March 2021**
Principal Office: 8A Horley Close, Bexleyheath, Kent DA6 7HS
Legal Structure: Charitable Incorporated Organisation
Governing Document: Constitution of Music & Worship Foundation CIO (incorporated 20 October 2017)
Trustees:- Damian Herbert, Ron Jones, Sylvia Kalisch, Andrew Mitchell, Rev. Eileen Osgood, Roger Peach. **See note on Trustee Resignations under "Structure" below.**
Chairman of Trustees: Roger Peach Secretary to Trustees: Andrew Mitchell Treasurer: Ron Jones
## OBJECTIVES
The objectives of the CIO ("MWF") are:-
1 The advancement of the Christian religion through music, media and other art forms;
2 To advance the education of the public in Christian worship and music.
## STRUCTURE
The aims of the CIO are advanced through the operations of MWF’s ministry engageworship. MWF employs Sam and Sara Hargreaves to lead this work, under the supervision of the Trustees. It also emplys Gemma and Timo Scharnowski (as from 22 February 2021) as team members. The Trustees meet on average four times per year, and because of the Covid-19 pandemic this could only be via video call this year. They also keep in contact with each other, and with the team, by email.
No new Trustees were appointed during the year. Rev. John Leach retired as a Trustee on 21 October 2020. Timo Scharnowski resigned as Trustee on 21 February 2021 prior to taking up employment with MWF.
## WORK AND ACTIVITIES OF THE CIO
These have included:-
- 1:Production of publications. During this financial year engageworship have produced two major publications. **Jesus and Emotions** is a family creative journal, helping people process challenging emotions in the company of Jesus. This has been very well received, including an order of 5,000 distributed for free by the Presbyterian Church in Ireland. Feedback has included: “ _So well written and brilliant for those journeying this #PandemicSeason with children_ .” (Kate Middleton, Mind & Soul Foundation).
**Worship in the Waiting** was our other major project in 2020, a Church Service Pack and accompanying Personal Devotions book which helped churches to journey through Advent during the pandemic. We updated our **Lent Worship in the Wilderness** resource for 2021, and began working on **Worship in the Woods** (released April 2021).
- 2:Leading and participating in conferences, seminars and meetings. The Covid-19 pandemic led to the cancellation of all of our live events, prompting the adapting of this work to the new online environment. We have run leaders' retreats and worship training over Zoom, with small courses in Digital Design and larger events on Engaging Worship Over Zoom. We have also contributed to webinars run by organisations such as A Rocha, the Salvation Army, and Baptist, Church of Scotland and Church of England networks. We also adapted our free Video training course based on How Would Jesus Lead Worship to be usable via Zoom discussion.
3:-
Continuing to resource the public for Christian worship through the engageworship.org website. The pandemic has seen the demand for our free online resources increase. At the beginning of the lockdown we immediately began producing daily #EngageAtHome worship and prayer ideas for families. These were accessed by over 6,000 visits to our webpage and countless more to our social media accounts. These continued over 70 days, and feedback included: “ _Your Children and Family daily worship activities have been invaluable for ideas with our Zoom Children's Club. I thank you for all the resources you have made available free of charge during this pandemic and I pray that you may flourish in all you future work to share the gospel in this way_ .” (Angela Cooper)
At the same time we were sharing free “living room” song videos for those adapting to online gatherings, free from concerns around copyright infringement. Later in the year we released over 15 free Christmas carol videos in a variety of styles. These were very well received: “ _My musician had to step back from recording music due to Coronavirus concerns and these videos will prove to be a lifesaver! Thank you SO MUCH!_ ” (Rev. Jason Coulter).
- 4:Commitment to higher education contexts. Sam Hargreaves has taught a number of modules for London School of Theology online, including “Multimedia and Multisensory Worship”, “Youth and Worship” and “Theology of Worship”.
New Staff. Coming into 2021, the Trustees were encouraged by the growth in the ministry and began to ask how we could be investing in the next generation of leadership. Gemma and Timo Scharnowski were employed from 21st February, (1 and 2 days per week respectively), and they have already made significant contributions towards projects, Zoom workshops, free online resources and more. They bring gifts in music, theology, arts and technology, and open up more possibilities for engageworship to connect with younger leaders in the church. Timo had previously been a trustee, so the board was careful to exclude him from discussions and decisions around his future employment.
In the ways stated above MWF CIO serves the public benefit. Our resources are downloaded and purchased in their thousands and hundreds of people have attended seminars, workshops and services run by engageworship. These are primarily churches and church-goers, but our material is also benefiting schools, family groups and youth settings.
## SOURCES OF FUNDING
Apart from the sale of resources as detailed above, the CIO's income comes from donations from individuals and churches and from the charges made for visits by our employees. In addition a generous grant was received from Gilderdale Trust, for the expressed purpose of "enabling the ministry of engageworship.org".
## POLICIES
Public Benefit: this is served by the activities described above. The Trustees take into account the CIO Commission's guidance on Public Benefit in all relevant decisions.
Reserves: the Trustees' policy is that if the level of reserves should fall below £10,000 immediate consideration would be given to reducing costs in whatever way possible, including curtailing the employees' hours of work. Part of the Reserves are retained against a requirement _in extremis_ to make redundancy payments.
Conflict of Interest: for all decisions taken involving a conflict of interest for any Trustee, the Trustee affected by the conflict is absent from the room and takes no part in the voting.
This report was approved by the Trustees at a meeting on <>, and was signed on their behalf by:-
## **Roger Peach (Chair of Trustees)**
**Andrew Mitchell (Secretary to Trustees)**
## **Music & Worship Foundation CIO - 1175280 Fund movement by type Selected period: 01 April 2020 to 31 March 2021**
**----- Start of picture text -----**
Fund Balances Incoming Outgoing Gains & Journal Fund Balances
Fund & Type Brought Forward Resources Resources Transfers Losses entries Carried Forward
Gilderdale £0 £25,050 £25,050
Designated
Sub-totals £0 £25,050 £0 £0 £25,050
Worship in Waiting & Advent
Designated £0 £4,010 £2,499 -£1,510 £0
Restricted £0 £5,353 £6,412 £1,059 £0
Sub-totals £0 £9,363 £8,911 -£451 £0
Worship Video
Designated £0 £0 £0 £0 £0
Restricted £0 £0 £0 £0 £0
General
Unrestricted £22,835 £85,333 £60,270 -£2,548 £45,349
Sub-totals £22,835 £85,333 £60,270 -£2,548 £45,349
Harvest £0 £0 £0 £0 £0
Restricted £0 £0 £0 £0 £0
Reserve
Designated £9,000 £0 £0 £3,000 £12,000
Sub-totals £9,000 £0 £0 £3,000 £0 £0 £12,000
Totals £31,835 £119,746 £69,181 £0 £82,399
**----- End of picture text -----**
**Note: Minor discrepancies in above figures are the result of pence not being shown.**
## **Notes to the Accounts**
## General
- A The Charity has no Endowment Funds.
- B No remuneration was paid to Trustees. They were, however, recompensed for expenses incurred, and the details are given in an accompanying sheet. During this year, with no travel to Trustees' meetings, the only such expenses were incurred by the Treasurer, who handles the office work. A gift of £60.00 was made to the Accounts Examiner in lieu of a fee: this gift was purchased by the Treasurer and included in his expenses, as authorised by the Chair of Trustees.
- C The postage and packaging of materials bought online is handled by JM Supplies, a company owned by Mr Andrew Mitchell, one of the MWF Trustees. The income account "Dispatch Charges on Online Sales" is an element of the web price quoted for each commodity, to offset the cost of post and packing. The actual costs of postage and packing, "Dispatch Costs of Goods Sold", totalled £2,562.34, and were paid to JM Supplies on a monthly invoice basis. .
- D The labour of realising the online orders is also handled by JM Supplies. Up to 2020 the costs of this were absorbed by JM Supplies as a gift to the charity. However, during 2020 the trustees began to be concerned about the amount of staff time JM Supplies needed to allocate to realise our orders. Research was undertaken into various distribution solutions, which revealed that the facility offered by JM Supplies was easily the most cost-effective and efficient dispatch service available to us. As a result of discussions by the Trustees (in which Mr Mitchell took no part) a decision was taken to reimburse JM Supplies a sum of 10% of the value of sales, as a contribution towards the costs of realisation. This features in the accounts as “Realisation Contribution”, and payments commenced in September 2020. Neither JM Supplies nor Mr Mitchell derive a profit from these arrangements.
## Notes to individual SOFA items
- 1 Fluctuations in sales figures reflect new items coming on-stream, usually resulting in a large volume of sales early in their availability; other peaks can occur where the material is seasonal.
- 2 The large drop in Engage Fees Received is caused by the year in question almost exactly covering the Covid 19 restrictions.
- 3 "Professional fees received" refers to Sam Hargreaves' activities in tutoring and marking for London School of Theology, and in submitting articles to a Christian magazine covering youth work.
- 4 The CIO pays quarterly support payments to a charity in Albania, Selah WAM, which is engaged in similar work. The proper application of these payments is checked through receipt of regular quarterly reports from their Trustees.
- 5 Fixed Assets are depreciated at an annual rate of 25% of the original purchase cost.
Page 9 of 11
## **MUSIC & WORSHIP FOUNDATION CIO : 1175280**
## **Expenses paid to Trustees: year ended 31 March 2021**
**----- Start of picture text -----**
Office Office Software & Paid to
Printing & Postage Equipment Accounts
Stationery & Telephone Bought Examiner TOTALS
Ron Jones (Treasurer) £47.14 £58.68 £60.00 £60.00 £225.82
**----- End of picture text -----**
## **See Section B of "Notes to the Accounts".**
Page 10 of 11
## **Music & Worship Foundation CIO : Charity No. 1175280 Financial year ended 31 March 2021**
**Independent Examiner's Report to the Trustees of Music & Worship Foundation CIO on the Accounts for the above period**
## Respective Responsibilities of Trustees and Examiner
The charity's Trustees are responsible for the preparation of the accounts. The charity's Trustees consider that an audit is not required for this year under Section 144 of the Charities Act 2011 ("the Charities Act") and that an independent examination is needed.
It is my responsibility:> to examine the accounts under Section 145 of the Charities Act, > to follow the procedures laid down in the general directions given by the Charity Commission (under Section 145(5)(b) of the Charities Act), and > to state whether particular matters have come to my attention.
Basis of Independent Examiner's Statement My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair" view.
## Independent Examiner's Statement
In connection with my examination, no matter has come to my attention:1 which gives me reasonable cause to believe that, in any material respect, the requirements > to keep accounting records in accordance with Section 130 of the Charities Act; > to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act - have not been met; or 2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. (Signed) Date
Name:- **Yohan Keerthiratna** Relevant professional qualifications:-
MSc, PGCE, ACMA, CGMA, BA, HND
Address:-
2A Fairlawn Avenue, Bexleyheath, Kent DA7 4TG
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