2022-03-31-accounts - David Pawson Ministry CIO

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REGISTERED CHARITY NUMBER: 1189318

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

DAVID PAWSON MINISTRY CIO

HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

DAVID PAWSON MINISTRY CIO

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 March 2022

	Page
Report of the Trustees	1 to 3
Independent Examiner's Report	4
Statement of Financial Activities	5
Balance Sheet	6
Cash Flow Statement	7
Notes to the Cash Flow Statement	8
Notes to the Financial Statements	9 to 15
Detailed Statement of Financial Activities	16 to 17

DAVID PAWSON MINISTRY CIO

REPORT OF THE TRUSTEES

for the year ended 31 March 2022

The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the charity is the promotion of Christian teaching throughout the world.

Significant activities

In seeking to fulfil its principal charitable objective the trustees have focussed on the provision of books and pre-recorded material by the Reverend David Pawson M.A., BSc. In more recent years the trustees have recognised the opportunities provided by new technology, and investment has been made to create digital copies of many of David's works to make them available for download from the internet.

Public benefit

The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Trust has continued its trajectory to provide teaching at the highest possible quality, to the highest number of people at the lowest possible cost. Free of charge wherever possible.

FINANCIAL REVIEW

Financial position

At the balance sheet date the charity had accumulated funds of £901,620 (2021: £480,828). Of these amounts £35,085 (2021: £52,423) related to restricted funds.

The funds of the charity are primarily held in the form of bank balances. During the year donations to the charity increased by £349,364 and total expenditure has decreased by £38,064.

Reserves policy

Total reserves at the Balance sheet date amounted to £901,620 of which £35,085 was Restricted Funds. The Trustees have considered that there should be sufficient unrestricted funds to cover at least 6 months of operations should the need arise, that is approximately £100,000.

Current reserves are considerably in excess of this figure as a result of some substantial donations received in the past. The trustees are giving consideration as to these funds can be best applied in order that the actual reserves held will be nearer to the stated reserves policy.

Page 1

DAVID PAWSON MINISTRY CIO

REPORT OF THE TRUSTEES for the year ended 31 March 2022

FUTURE PLANS

The current priority for the Trust is to do with future proofing. This involves looking at upgrading our digital platform and our media into formats that will survive into the future. This includes video, eBooks and audiobooks.

The work of translating, digitising and sub titling continues at good pace as well as the growing move towards eBooks. We are currently looking into the development of audiobooks.

The Trustees remain very thankful for all its staff, volunteers and supporters.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Charity is controlled by its governing document, a CIO-Foundation.

On 4 May 2020 David Pawson Ministry CIO was registered under charity number 1189318 at the Charity Commission and on 30 September 2020 it took over all assets and activities of The David Pawson Teaching Trust. As the charity's objects and trustees are the same the Trustees have taken advantage of the concession in the Charities SORP to use merger accounting and present the accounts for the full year including the six months to 30 September 2020 when the activities were carried out by the predecessor charity. Similarly the comparatives are shown as if this was carried out by David Pawson Ministry CIO.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1189318

Principal address

Wishing Well Cottage The Ridges FINCHAMPSTED Berkshire RG40 3HS

Trustees

D Rebbettes M Tinling S C Dally Company Director

Independent Examiner

L Redman FCCA HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

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DAVID PAWSON MINISTRY CIO

REPORT OF THE TRUSTEES for the year ended 31 March 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Solicitors

Barlow Robbins LLP Concord House 165 Church Street East Woking Approved by order of the board of trustees on 3 December 2022 and signed on its behalf by:

D Rebbettes - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DAVID PAWSON MINISTRY CIO

Independent examiner's report to the trustees of David Pawson Ministry CIO

I report to the charity trustees on my examination of the accounts of David Pawson Ministry CIO (the Trust) for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity trustees of the Trust 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 Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to 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 Trust as required by Section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

L Redman FCCA HPCA Limited Chartered Accountants Station House Connaught Road Brookwood Woking Surrey GU24 0ER

8 December 2022

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DAVID PAWSON MINISTRY CIO

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2022

Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 606,577 Investment income 3 27 Other income 8,741 Total 615,345 EXPENDITURE ON Charitable activities 4 Direct Charitable Expenses 142,985 Administration 34,230 Other - Total 177,215 NET INCOME/(EXPENDITURE) 438,130 RECONCILIATION OF FUNDS Total funds brought forward 428,405 TOTAL FUNDS CARRIED FORWARD 866,535	Restricted funds £ - - - - 17,338 - - 17,338 (17,338) 52,423 35,085	2022 Total funds £ 606,577 27 8,741 615,345 160,323 34,230 - 194,553 420,792 480,828 901,620	2021 Total funds £ 109,570 265 20,365 130,200 224,138 8,479 - 232,617 (102,417) 583,245 480,828

The notes form part of these financial statements

Page 5

DAVID PAWSON MINISTRY CIO

BALANCE SHEET

31 March 2022

Unrestricted fund Notes £ FIXED ASSETS Intangible assets 9 4,520 CURRENT ASSETS Debtors 10 174,093 Cash at bank 704,363 878,456 CREDITORS Amounts falling due within one year 11 (16,441) NET CURRENT ASSETS 862,015 TOTAL ASSETS LESS CURRENT LIABILITIES 866,535 NET ASSETS 866,535 FUNDS 12 Unrestricted funds Restricted funds TOTAL FUNDS	Restricted funds £ - - 35,085 35,085 - 35,085 35,085 35,085	2022 Total funds £ 4,520 174,093 739,448 913,541 (16,441) 897,100 901,620 901,620 866,535 35,085 901,620	2021 Total funds £ 6,026 23,247 469,214 492,461 (17,659) 474,802 480,828 480,828 428,405 52,423 480,828

The financial statements were approved by the Board of Trustees and authorised for issue on 3 December 2022 and were signed on its behalf by:

D Rebbettes - Trustee

The notes form part of these financial statements

Page 6

DAVID PAWSON MINISTRY CIO

CASH FLOW STATEMENT

for the year ended 31 March 2022

Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2022 £ 270,207 270,207 27 27 270,234 469,214 739,448	2021 £ (103,430) (103,430) 265 265 (103,165) 572,379 469,214

The notes form part of these financial statements

Page 7

DAVID PAWSON MINISTRY CIO

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Increase in debtors (Decrease)/increase in creditors Net cash provided by/(used in) operations	2022 £ 420,792 1,506 (27) (150,846) (1,218) 270,207	2021 £ (102,417) 1,506 (265) (9,508) 7,254 (103,430)

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash Cash at bank and in hand Total	At 1.4.21 Cash flow At 31.3.22 £ £ £ 469,214 270,234 739,448 469,214 270,234 739,448 469,214 270,234 739,448

The notes form part of these financial statements

Page 8

DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Intangible fixed assets

Depreciation is provided at the following annual rates in order to write off intangible assets.

Website - 3 years Repurchase of rights to written works - 10 years

After the passing of David and Enid Pawson, all rights and royalties are owned by David Pawson Ministry CIO.

Taxation

The charity is exempt from income tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

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continued...

DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

2021 £ 105,921 3,649 -	2021 £ 105,921 3,649 -	2021 £ 105,921 3,649 -
109,570
2021 £ 265 Totals £ 160,323 34,230		2021 £ 265
194,553
	Totals £ 481 34,230
	34,711

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DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

7. EXCEPTIONAL ITEMS

David and Enid Pawson left a legacy of 50% of their net estate to David Pawson Ministry CIO. The current estimate of the final net value of the estate, is approximately £985,000, Of this, £340,000 was received during the year by the trust. Therefore, we have included a debtor of £150,000 for the remainder.

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 109,570 Investment income 265 Other income 20,365 Total 130,200 EXPENDITURE ON Charitable activities Direct Charitable Expenses 224,138 Administration 8,479 Total 232,617 NET INCOME/(EXPENDITURE) (102,417) RECONCILIATION OF FUNDS Total funds brought forward 530,822 TOTAL FUNDS CARRIED FORWARD 428,405	Restricted funds £ - - - - - - - - 52,423 52,423	Total funds £ 109,570 265 20,365 130,200 224,138 8,479 232,617 (102,417) 583,245 480,828

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continued...

DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

9. INTANGIBLE FIXED ASSETS

Patents and licences £ COST At 1 April 2021 and 31 March 2022 15,064 AMORTISATION At 1 April 2021 9,038 Charge for year 1,506 At 31 March 2022 10,544 NET BOOK VALUE At 31 March 2022 4,520 At 31 March 2021 6,026 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Other creditors	Website costs £ 17,688 17,688 - 17,688 - - 2022 £ 174,093 2022 £ 4,014 12,427 16,441		Totals £ 32,752
			26,726 1,506
			28,232
			4,520
			6,026
			2021 £ 23,247
			2021 £ - 17,659
			17,659

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DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

12. MOVEMENT IN FUNDS

At 1.4.21 £ Unrestricted funds General fund 428,405 Restricted funds Work of the Trust in China 52,423 TOTAL FUNDS 480,828 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 615,345 Restricted funds Work of the Trust in China - TOTAL FUNDS 615,345 Comparatives for movement in funds At 1.4.20 £ Unrestricted funds General fund 530,822 Restricted funds Work of the Trust in China 52,423 TOTAL FUNDS 583,245	Net movement in funds £ 438,130 (17,338) 420,792 Resources expended £ (177,215) (17,338) (194,553) Net movement in funds £ (102,417) - (102,417)	At 31.3.22 £ 866,535 35,085 901,620 Movement in funds £ 438,130 (17,338) 420,792 At 31.3.21 £ 428,405 52,423 480,828

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continued...

DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

12. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
130,200
(232,617)
TOTAL FUNDS
130,200
(232,617)
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 1.4.20
in funds
£
£
Unrestricted funds
General fund
530,822
335,713
Restricted funds
Work of the Trust in China
52,423
(17,338)
TOTAL FUNDS
583,245
318,375

Movement
in funds
£
(102,417)
(102,417)
At
31.3.22
£
866,535
35,085
901,620

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds Work of the Trust in China TOTAL FUNDS	Incoming resources £ 745,545 - 745,545	Resources expended £ (409,832) (17,338) (427,170)	Movement in funds £ 335,713 (17,338) 318,375

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DAVID PAWSON MINISTRY CIO

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

13. RELATED PARTY DISCLOSURES

A significant channel of distribution for the works of David Pawson is David Pawson Publishing Limited (DPPL), a charitable company (registered charity no : 224579). The charity met DPPL's accountancy costs and Independent Examination fees up to 2019. It has now been agreed that the charity will make an annual contribution to DPPL to contribute towards its costs of distributing the works of David Pawson. The total paid in the year to 31 March 2022 was £79,000 (2021: £91,667).

Royalties received from DPPL totalled £7,774 (2021: £11,246) in the financial year. At the balance sheet date the charity was owed £19,158 by DPPL (2021: owed £17,390 by DPPL).

14. CHARITABLE INCORPORATED ORGANISATION

The income and expenditure of the charity accrue fairly evenly throughout the year so it is reasonable to assume that approximately 50% of the income and expenditure would have been attributable to the first 6 months when the activities were carried out by David Pawson Teaching Trust. Therefore the net assets transferred at 30 September 2020 would have been approximately £530,000.

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DAVID PAWSON MINISTRY CIO

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2022

INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Exceptional items Investment income Deposit account interest Other income Royalty income Other income Total incoming resources EXPENDITURE Charitable activities Website costs Telephone Other Charitable Gifts Printed media Video Transcription costs Travelling Equipment costs Television broadcast Computer and software Distribution costs Royalties Support costs Management Insurance Carried forward	2022 £ 115,283 1,294 490,000 606,577 27 7,774 967 8,741 615,345 3,730 - 79,000 43,107 11,111 394 - 5,951 9,360 1,797 5,392 - 159,842 1,123 1,123	2021 £ 105,921 3,649 -
		109,570 265 20,365 -
		20,365
		130,200 1,083 484 92,049 37,415 4,738 - 1,878 4,406 37,440 374 19,713 20,365
		219,945 - -

This page does not form part of the statutory financial statements

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DAVID PAWSON MINISTRY CIO

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2022

Management Brought forward Sundries Title amortisation Finance Bank charges Legal fees Accountancy Governance costs Independent Examination fee Total resources expended Net income/(expenditure)	2022 £ 1,123 481 1,506 3,110 1,739 23,600 4,182 29,521 2,080 194,553 420,792	2021 £ - 1,793 1,506 3,299 1,922 - 5,406 7,328 2,045 232,617 (102,417)

This page does not form part of the statutory financial statements

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