REGISTERED CHARITY NUMBER: 247761
Report of the Trustees and
Audited Financial Statements for the Year Ended 30 June 2023
for
The Order of The Cross
Town & Forest Chartered Accountants & Statutory Auditors First Floor, New Barnes Mill Cottonmill Lane St Albans AL1 2HA
The Order of The Cross
Contents of the Financial Statements for the Year Ended 30 June 2023
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 9 |
| Report of the Independent Auditors | 10 | to | 11 |
| Statement of Financial Activities | 12 | ||
| Balance Sheet | 13 | ||
| Notes to the Financial Statements | 14 | to | 19 |
| Detailed Statement of Financial Activities | 20 | to | 21 |
The Order of The Cross
Reference and Administrative Details for the Year Ended 30 June 2023
| TRUSTEES | Mr Richard Ashley (resigned 1.6.23) |
|---|---|
| Mrs Jacqueline Baillie (resigned 5.3.23) | |
| Mr Bernard Fallon | |
| Mrs Rayleen Finn (resigned 23.11.23) | |
| Mr Ian Heathcote | |
| Mr Roger Score | |
| Mrs Sarah Palmer | |
| Mr David Muir (appointed 1.5.23) | |
| Ms Cathy Jo Oerter (appointed 12.1.24) | |
| PRINCIPAL ADDRESS | 27 Old Gloucester Street |
| London | |
| WC1N 3AX | |
| REGISTERED CHARITY | 247761 |
| NUMBER | |
| AUDITORS | Town & Forest |
| Chartered Accountants & Statutory Auditors | |
| First Floor, New Barnes Mill | |
| Cottonmill Lane | |
| St Albans | |
| AL1 2HA | |
| SOLICITORS | Hewetts |
| 55 - 57 London Street | |
| Reading | |
| Berkshire | |
| RG1 4PS | |
| INVESTMENT MANAGERS | Brewin Dolphin Limited |
| 4 King Edward Street | |
| Oxford | |
| OX1 4HS | |
| CCLA Investment Management Ltd | |
| COIF Charity Funds | |
| 80 Cheapside | |
| London | |
| EC2V 6DZ |
Page 1
The Order of The Cross
Report of the Trustees
for the Year Ended 30 June 2023
The trustees present their report with the financial statements of the charity for the year ended 30 June 2023. 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).
AIM AND PURPOSE
The Order of the Cross is an informal Christian Fellowship, dedicated to the Compassionate Life and the realisation of the Christ within. Since its foundation in 1904 it has promoted a pacifist and vegetarian way of life.
Our aim is to offer support and encouragement to all who would espouse the Aims and Ideals expressed through the writings of the Founder, the Reverend J Todd Ferrier.
OBJECTIVES AND ACTIVITIES
Objectives and Activities
The Order seeks to achieve the purpose through:
a) the holding of worship services, meditations and meetings where the Founder's writings (referred to as "the Teachings") are read and studied in an elevated atmosphere conducive to spiritual aspiration and healing; and b) the publication, sale and dissemination of the literature that contains the Teachings.
The Order organises and provides financial support for regular "Gatherings" of Members and Enquirers (interested non-members) at retreat centres in the UK, North America and Australia. Central to the programmes of the Gatherings are worship services and meetings to study the Teachings. The programmes include times of informal fellowship for individuals to share experiences. Some of our services and Gatherings are for attendance by families with children.
Worship services and meetings for the study of the Teachings are held in a few localities in the United Kingdom, North America and Australia to which interested Enquirers may be invited. There are weekly services and readings by conference call and by videoconference that are particularly valued by isolated Members and Enquirers.
The Members in local Groups appoint representatives to Area Councils who meet annually as United Councils whose function is to support the spiritual culture of the Membership and to guide Enquirers in the Teachings and in the way of life of the Members.
The Order announces itself to the wider public by means of its website (orderofthecross.org) which is indicative of the nature of the Teachings, how contact may be made with the Order and how the Order's literature may be obtained.
The Trustees have considered the Commission's guidance on public benefit and, in particular, the specific guidance to charities for the advancement of religion. The Trustees seek to bring the Teachings to the attention of all those who may be drawn to their deeply spiritual message and to include in the religious and social activities of the Fellowship any who may wish to share in the personal development that such contact brings.
Page 2
The Order of The Cross
Report of the Trustees for the Year Ended 30 June 2023
ACHIEVEMENT AND PERFORMANCE
Membership and Enquirers
Membership of the Order is available to those who show a deeply held interest in the Teachings and a commitment to the way of life described therein which includes non-violence and a strict vegetarian diet. Admission to Membership of the Order is at the Trustees' discretion. Anyone seeking Membership applies in writing indicating why he or she wishes to become a Member. The application must be supported in writing by two Members. We are willing to welcome new Members regardless of their colour, ethnicity, race, disability, sexual orientation or religion.
The Trustees provide a point of contact for members of the public through our website (orderofthecross.org). It includes attractively arranged material that indicates the nature of our values, literature and activities. We continually seek to improve and refresh the website.
We refer to individuals, non-members, who are interested in the Teachings as "Enquirers". Contact is usually made initially by email. Where an Enquirer shows strong interest and looks for personal contact we may be able to arrange this with a local Group if there is one close to the Enquirer or by videocall or after an initial meeting we may invite the Enquirer to attend one of our Gatherings. We send such Enquirers a regular publication, "Spiritual Reflections", that includes articles relating to the Teachings and the programme of forthcoming Gatherings. This serves as a form of contact with those seeking to understand more of the life to which the Order calls.
All Members worldwide receive a regular Newsletter of articles and information. There is no membership fee. Members and Enquirers may make financial contributions on an entirely voluntary basis. UK Members are encouraged (if eligible) to contribute under the Gift Aid Scheme. The Order does not conduct any public fund-raising.
Members may be invited to minister at worship services or to lead study meetings. Members sometimes minister at funerals and at blessings of babies and of marriages. Members train for this ministry initially through participating in the activities at local level, or at Gatherings, and then through leading services and study meetings in small groups and through informal guidance and feedback.
Offices held by Members are honorary. Members may claim travel and other incidental expenses necessary for the performance of their duties.
Groups and Councils
Where Members resident in a particular locality are sufficient in number, energy and experience to sustain a regular programme of worship and support for Enquirers they may be recognised as a "Group" or as a "Reading Circle".
The Groups and Reading Circles in the UK are divided into three Areas and, where Members are sufficiently numerous, a representative Area Council meets at least once a year to share the experiences of the work in the Area, to plan Area Gatherings of Members and Enquirers and to consider any other matters that may arise. Each of the three Areas sends one or more representatives for a similar annual sharing in a body known as the "United Councils" where there are also representatives sent from the Councils in North America and Australia.
A representative from each Area in the UK, North America, Australia and New Zealand together with an executive comprising Chairman, Treasurer and Clerk meet twice during the year in a committee known as the United Councils Committee. The Committee organises a meeting as the United Councils with Representatives and Members that in 2023 was held at the start of the Easter Gathering (see under Gatherings). Close liaison between the United Councils and the Trustees, including joint meetings between the United Councils Committee and the Trustees, ensures that the views and needs of all Members of the Order are taken into account.
The structure of the Councils is such that everyone who is deeply interested in and involved with The Order of the Cross as a Member or Enquirer can have their needs recognised, their ideas considered and their spiritual life nourished. Members of the Councils pay particular attention to keeping in contact with frail, isolated and new Members in their Areas. They contact Enquirers who have expressed the desire to know more of the Order Teachings and the way of life of the Members.
The Groups, Reading Circles and Area Councils are essential to the carrying out of the Order's charitable objectives and manage their own funds largely independently of the Trustees. The United Councils Committee receives income from the Order's restricted funds. They receive donations from Members. The Councils draw as and when needed from the Order's unrestricted funds. The financial reporting of the United Councils Committee are consolidated into this Annual Report and Accounts.
Page 3
The Order of The Cross
Report of the Trustees
for the Year Ended 30 June 2023
ACHIEVEMENT AND PERFORMANCE
Gatherings in the UK
Gatherings, where for a few days at a time Members and Enquirers, scattered geographically, come together at a retreat centre to share worship, study and fellowship, are central to the functioning of our community. In the year 2022 - 2023, the following such Gatherings were held in the UK:
o 21st July to 26th July 2022, Gathering at the Ammerdown Centre near Bath o 26th July to 1st August 2022, the Families Gathering at the Ammerdown Centre o 7th to 10th October 2022, Gathering at Sheldon Retreat Centre near Exeter o 16th to 23rd October 2022, Gathering at Glenthorne, Grasmere, Cumbria o 6th to 10th April 2023, Easter Gathering at Sarum College, Salisbury o 11th to 19th May 2023, Gathering at Glenthorne, Grasmere, Cumbria
The Easter Gathering, 6th to 10th April 2023, included the Members meeting as the United Councils, mentioned above. This Gathering also included the annual Members' Meeting arranged by the Trustees when consideration was given amongst other matters to the Order's finances, publications and website.
No fees are charged for attendance at the Gatherings. Instead attendees are informed of the cost of accommodation and food and are invited to make a financial contribution.
Children and Young People
Although children are taught the way of life exemplified by our founder primarily in the home, special times of worship suitable for children are arranged by the Groups if they have young children in their area. The main event that catered specifically for children was:
Ammerdown Centre near Bath
The Family Gathering as held at the Ammerdown Centre near Bath was once again a most successful gathering open to Members and Enquirers and comprised times of worship and study of the teachings of the Order. The programme included music-making, art and crafts. The needs of the children were well catered for with a special programme of activities.
The Trustees have a policy for the protection of children that is brought to the attention of the organisers of gatherings and other activities. The Trustees regularly review their Safeguarding Policy and Procedures for children and vulnerable individuals.
Page 4
The Order of The Cross
Report of the Trustees for the Year Ended 30 June 2023
ACHIEVEMENT AND PERFORMANCE The Order's Work in North America
The membership in the United States and Canada are grouped in three regions by time zone: Eastern, Central and Western. There are a number of Enquirers in Canada and Florida. Members and Enquirers in the Western region meet regularly to share the message through the communal sharing and spiritual linking phone circles. Some Members in the Central region who join the Communal Sharing Circle also meet on zoom. Members in the Eastern Area meet on zoom and met in person at an East Coast gathering in Florida in December 2023. A number of Enquirers attended this gathering.
Twelve American Members plus two Trustees from England met in Council during a gathering at the Ojai Retreat Centre from 17-23 September 2023 and the offices of North American Area Clerk and Treasurer were confirmed. The Trustees reported on recent changes and developments in the Work of The Order of the Cross. Books continue to be distributed from the bookstore in the Western region and a North American Area newsletter is distributed from the Central region.
Australia and New Zealand
All the Australian gatherings took place in Western Australia in the year to 30 June 2023, with September in Busselton, a Christmas gathering in Dawesville, and a gathering in Nannup at Holberry House. This was the first time at this venue. It was felt to be most suitable for future gatherings. An international gathering planned for November 2023 takes place in Adelaide in a new venue, with attendees from various parts of Australia, from New Zealand, and from the UK.
International Conference Calls
The sharing of services and meetings by means of conference calls was initiated by Members in North America and now forms an international "virtual" community involving also Members in Europe, Australia and New Zealand. This is known as the Communal Sharing Circle and provides for those Members and Enquirers worldwide who wish to take part in a weekly service or reading of the Teachings.
Groups meeting by videoconference to read from the Teachings have multiplied and become global in recent years. A Virtual Area Clerk from UK has been created to liaise and coordinate this new unifying development.
Publications
Our main stock of printed books is maintained at a self-storage facility in Gloucestershire. This is close to, and accessible to, our Literature Secretary who responds to requests for copies of the books and sends them by post. We also have Literature Secretaries based in North America and Australia who keep stocks of books for distribution in their part of the world.
Whenever the stock of any book becomes low it is reprinted to replenish the stock. Six titles were reprinted and made available in 2021.
We recently reprinted our Reading Companion title, a useful reference book for those studying the writings of Our Founder and it was published in early 2023. Further work on updating it is ongoing.
We continue to apply the new pricing policy introduced in 2021 and have extended it to non-members. Members and non-members can obtain any of our publications free of charge, including postage and packing if ordered from one of our Literature Secretaries. A voluntary contribution is encouraged supported by a price guide.
Our books can still be purchased in the usual way by anyone from a range of public suppliers at commercial recommended retail prices.
Guaranteed authentic versions of our printed books are available worldwide from Gazelle via our website. Our printed books continue to be available from Amazon and Alibri and other distributers, but authenticity cannot be guaranteed.
PDF versions of five of our booklets continue to be available, free of charge, for download from our website.
We have six titles published as eBooks, available from most on-line bookstores.
Page 5
The Order of The Cross
Report of the Trustees for the Year Ended 30 June 2023
ACHIEVEMENT AND PERFORMANCE
Periodicals
Although based in the United Kingdom, the Order is a fellowship of like minded individuals dispersed around the globe, some in locations isolated from the main centres of activity. The periodicals produced by the Order are therefore central to maintaining the communication links which unify the Order as a fellowship. There are three periodicals:
1. Members' Newsletter
The Members' Newsletter is the principal periodical issued quarterly in an A5 full colour booklet format. The Newsletter continues to be distributed to every Member around the world, some of whom receive it electronically at their request. It always opens with a quotation from the Teachings and provides details of Order events around the world; notification and the means of application are provided before events and reports are published after events. The Newsletter is a forum for Members to contribute articles which reflect upon the Teachings and their relevance to contemporary living and the arts, and for Members to share their creative gifts, especially in the writing of poetry and in the visual arts, including colour photography.
2. American Newsletter
In America the Members have continued to produce great newsletters with informative and inspiring articles directed mainly to American Members and Enquirers though they are sent all over the world.
3. Spiritual Reflections
The periodical Spiritual Reflections is sent to interested non-members and Enquirers. In parallel with the Members' Newsletter, four issues a year are produced. It opens with the same quotation from the Teachings as the Members' Newsletter and provides details of the Order events around the world where seekers and friends are encouraged to attend; notification and the means of application are provided before such events and reports are published after events.
Items and articles from the Members' Newsletter are included in Spiritual Reflections that are of interest to this wider readership, including colour features. Comment and interpretation is provided to introduce the extracts from the teachings and make them accessible to newcomers.
General Data Protection Regulation (GDPR)
In May 2018, in compliance with GDPR, the Trustees sought formal written confirmation from all Members that they wish to continue to have their contact details held by the Trustees for contact by other members for pastoral reasons, and to receive the Members' Newsletter. The Trustees sought similar written confirmation from Enquirers to receive the Spiritual Reflections. Virtually all Members and a majority of Enquirers affirmed their wish to continue to have their contact details held.
Website
Considerable time has been spent in evaluating the role of a website in the future of The Order of the Cross. This has resulted in the decision to employ a professional website development company. A brief was created, and a number of companies contacted. Proposals were received and three companies were interviewed by the web group. Resulting from these interviews a company was selected, and work starts at the end of 2023.
The principal purpose of the website will be a point of contact and reference for The Order of the Cross and to create an atmosphere such that anyone visiting the site should leave feeling more uplifted. It is an important part of the brief that the site is future-proofed as much as possible and that it should be easy to manage thus minimising the involvement of Members to run it.
Premises
Page 6
The Order of The Cross
Report of the Trustees
for the Year Ended 30 June 2023
ACHIEVEMENT AND PERFORMANCE
The Order owned premises in London used primarily for the provision of public worship services until 2012 when the property was sold. After consultation with the Order's Membership and a working group set up to explore the possibility of new premises, the Trustees concluded that due to the geographical dispersion of the active members and the limitations in the practical support that they can give, the interests of the membership and the work of the Order were best served if, for the time being, the Order did not acquire premises. This has released resources so that Members can give greater support to their local areas and focus on a rich spiritual programme of meetings and gatherings, without the distraction of managing human and physical resources associated with property ownership.
The Order's literature stock and any essential artefacts used for Gatherings are held in conveniently located secure self-storage. Artwork and a few special furnishings that could be used for new premises are in long term storage.
Based on experience since 2012 the Order has continued to be satisfactorily administered without the need for a headquarters property.
FINANCIAL REVIEW
Financial Review
The major part of our income is from investments and deposits. Particular attention is given to investing ethically, consistent as far as possible with the Order's Aims and Ideals. We adopt a moderate degree of risk in our investment policy, though our investment portfolio is on the more volatile side of moderate as our ethical policy steers us away from large conglomerates and defensive stocks that are generally incompatible with our ethical criteria. We seek a balance between income and capital growth. Approximately 10% of our advised investments are in fixed interest stocks and bonds and the remainder are mainly in equities. The major part of our equity and bond holdings are in ethically guided collective funds. Much of the remainder of our invested funds are in directly held UK shares selected from a list supplied by EIRIS (Ethical Investment Research and Information Service) based on our ethical criteria. The selection of collective and listed investments is advised by our investment manager, Brewin Dolphin. 8% of our total funds are held in the CCLA Property Fund. 1.5% of our total funds are held in a high yield bond issued on behalf of a registered housing charity. Subject to prudent limits, our deposits are held with banks that have ethical policies and with building societies.
Major Risks
The possible risks associated with the Order's activities are reviewed regularly by the Trustees and where necessary addressed proportionately.
Review of the Accounts (1 July 2022 to 30 June 2023)
The following comments are intended to indicate the main reasons for significant year-on-year changes to income and expenditure shown in the Statement of Financial Activities included with this Report. The previous financial year was for 11 months only so some increase in income and expenditure would be expected on changing back to a normal financial year of 12 months.
However total income was very considerably higher compared with the previous year. This increase was across all forms of income, namely, investment income, interest on deposits and financial contributions from the membership. A legacy was received and added to the large increase in income.
Resources expended were also generally much higher than in the previous year, though as usual expenditure increased in some areas and reduced in others. Always our largest item of expenditure is for Gatherings in the UK where we bring together, usually at a residential retreat centre, members and enquirers for a few days of worship, meditation, study and fellowship. The increase in this item of expenditure was commensurate with the additional month in the financial year. The second largest item of expenditure was travel subsidies and these increased considerably as we assisted more members to travel between the UK, USA and Australia to minister and otherwise assist at or attend overseas Gatherings. As our numbers of members gradually reduce, our international contacts, virtually and in person, have increased.
Other items of expenditure showing substantial increase were: Trustee meetings - these included an additional weekend meeting with the United Councils Committee to bring the two main decision bodies together to work more closely; Trustee travel included more visits to overseas gatherings and members; a larger donation to Australia because of increased activity during the year; and professional charges partly because of a large increase in the fee charged by the firm that performs research into ethical investment and partly because of the additional month of investment management fees.
Page 7
The Order of The Cross
Report of the Trustees for the Year Ended 30 June 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Charity constitution
The Order is administered by a Council of Trustees who have ultimate responsibility for carrying out the work of the Order and for dealing with its finances. The governing document of the Order is the Declaration of Trust drawn up by the Trustees of the Order in August 1944. This document incorporates a Letter concerning the Future Administration of the Order, written by the Founder in 1942. The charitable purposes of the Order of the Cross are set out in a Supplemental Trust Deed executed in 1972 prior to registration with the Charity Commission.
The Schedule to the Supplemental Trust Deed reads:
"The primary purposes of the Order are as follows:
(1) The advancement of the Christian Religion in accordance with the Founder's vision and interpretation
(2) The holding of regular Services of Public Worship
(3) The giving of instruction in the Christian Religion as interpreted by the Founder to the young and in furtherance of the aforesaid primary purposes:
(i) The practice of Christian healing by spiritual means
(ii) The provision of facilities for and the promotion of religious conferences and retreats
(iii) The publication of the Works of the Founder and other books and periodicals descriptive of the Work of the Order
(iv) The training of members to act as ministrants for the Order in public worship and in spiritual healing."
Overseas, The Order of the Cross USA is a Registered Corporation, tax exempt, which attends to financial and legal matters concerning the Order in the USA and works in close cooperation with the Trustees. In Australia our Australia and New Zealand Area Committee went through a legal process of incorporation becoming a formally recognised Charity and Non Profit known as Australian Council of The Order of the Cross Ltd. This provides our organising committee in Australia with certain financial and legal safeguards.
Recruitment and appointment of new trustees
The Founder's Letter concerning the Future Administration of the Order stipulates that the number of Trustees continues to be nine. When a vacancy occurs (normally as the result of retirement) the continuing Trustees, who are all Members of the Order of the Cross, appoint another representative Member to fill the vacancy. The current number of Trustees has reduced to six. The contraction of the membership and scale of activities in recent years have led us to the view that six Trustees are sufficient to encompass the Order's administration. We take the view that our governing document allows us the flexibility to take this pragmatic view of the number of Trustees who may be appointed.
Responsibilities for the various aspects of the work and administration of the Order are assigned to individual Trustees. The Trustees keep in touch frequently, partly virtually by videoconference, and partly by in-person working weekends at a retreat centre. A time of prayer and meditation is an integral part of every Trustee meeting. The weekend meetings, held two or three times a year, provide valuable opportunities for extended consideration of the Order's work.
The names of the current Council of Trustees are listed at the start of this report. Since the last Annual Report there have been the retirement of two Trustees and the appointment of one new Trustee. At the time of writing there are vacancies for two Trustees.
Page 8
STATEMKNf OFTRUSTEFS. RESPONSIBILrriES The tr$¢8 are rew51ble for Preparing the R¢FQrt of the Tr41¢¢5 the financid statements in accord8nc¢ wth applicle 14w United kn'n8&Trm Accounbng St&ThdArds (UnitsA "n8{rn cer[Y Accepted Accounting Prxtice) In¢l'ng Fin¢1 Rew)rt]'n8 Standard 102 "The Fin4ncid Rewjrting Sthndard applicable in the UK and Republic of I[•ld.. The low 8pplic•bl¢ to th¢$ in Englwhd and we1 the Charittes Act 2011, ChArity IAccowJts and Rwrts) Re8ulatsons 2(K)8 And the PTovi&ons of the trust deed require5 the tre¢S to pr¢paTQ financi staments for fllwLCiat year Mthith give a and fair view of the 5t4t¢ of affwrs of the chAnty and of the incomin8 resources And applicthon of resy)ur. Incluth"rt8 the income and exrrtndiDJre. of the tharity for that period. In preparin8 those finanal sithm&)ts. the tswstees are requirod w.. selrxt suitsble C0'n8 wli¢ie5 4nd then p]Y them consistently., - obseThe th¢ m¢th(Kls and principles in the Chty SORP; - makejudgements ¢sts'MeS that are renable and pnKieni. and Prepare the financiat ststements on the going concern bayi5 unless it is inappTOPriat¢ to presume the chwity will ¢orttinu¢ in busin. The trustees u¢ resp¢ble for kewng proper aceow]tsnB records 1£h th'sclose with Tel¥b]e accuracy at any tsrne the fin&ncia] position of the tharity Ind enable them to ensure that the financi81 ststem¢n¢s comply with the Charitses Act 2011. the Charity (Accounts thd Rep)Ytsl Regulatio 2008 and the prowsion% of the twl deed. Thty are 80 resFonsJble for sgfe8wding the ets of the chlnty and hence for ¢akin8 r¢&son8ble steps for the preventt(ffi and detKtson of md other irresti¢s. ApprDved by orderof the Erf)Ard of mte$ on .. ... d on its behf by.. g¢r SLxsr¢. Tnut•e
Report of the Independent Auditors to the Trustees of The Order of The Cross
Opinion
We have audited the financial statements of The Order of The Cross (the 'charity') for the year ended 30 June 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 30 June 2023 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Page 10
Report of the Independent Auditors to the Trustees of The Order of The Cross
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the Charities Act 2011 and FRS 102.
We assessed the risks of material misstatement in respect of fraud as follows: we made full enquiries with management and those charged with governance. As part of our fraud discussions, we discussed particular areas we believed to be susceptible to misstatement. Also, during our audit, we paid particular attention to looking for any related party transactions, however there were no related party transactions in this entity.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
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. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Town & Forest Chartered Accountants & Statutory Auditors First Floor, New Barnes Mill Cottonmill Lane St Albans AL1 2HA
Date: ............................................. 29 April 2024
Zara Dunster FCA (Senior Statutory Auditor)
Page 11
The Order of The Cross
Statement of Financial Activities
for the Year Ended 30 June 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Activities for generating funds 2 Investment income 3 Total EXPENDITURE ON Costs of raising funds Charitable activities Other Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 23,753 11,097 252,512 287,362 575 225,879 112,534 338,988 176,571 124,945 11,468,900 11,593,845 |
Restricted funds £ - - - - - - - - - - 53,706 53,706 |
Year Ended 30.6.23 Total funds £ 23,753 11,097 252,512 287,362 575 225,879 112,534 338,988 176,571 124,945 11,522,606 11,647,551 |
Period 1.8.21 to 30.6.22 Total funds £ 3,813 2,571 151,326 157,710 358 187,518 74,435 262,311 (720,293) (824,894) 12,347,500 11,522,606 |
|---|---|---|---|---|
The notes form part of these financial statements
Page 12
30.6.23 Total fimdg unre8tti¢t R¢5trict¢d 30.6.22 Totsl fimds Note8 FIXED A&SETS TInble &ssets Investsnents J.068 6.813.527 3.068 6.865.973 3.709 6.697,617 51446 6.816,595 51446 6,869.041 6.701,326 CURRENf A&SEI8 Stocks Debfr)t5 Cath •t bank 2,078 144.149 4,638.222 2.078 145.409 4,638.222 2,112 106,185 4,718.053 4.784.449 1,260 4.785.7Tr3 4,826,350 cRED01L Amounts failin8 due within oney¢ar (7.19)) (7.199) {5.070) NET CiJRRENf A&srTs 4.777,250 1,260 4,778,510 4,821,280 rAL A&sfis LLSS CURREJ LIABILMES 11.593.845 53.706 11,647.551 11.522,606 NET ASSETS 11,593.845 53,706 11,&17.551 11.522,f 10 Unre5tricd fimd5 Re5th¢t fund4 11.593.845 53,706 11.468.gKJ 53.71 11.647,551 11,$22,606 Th¢ financial statemts were •pwoYod by th¢ Board of Tntst¢es and authori51 for i¥uD 7.. SirA on its behrIty. Mr Rog¢r Scor¢. Tnth¢ Pw13
The Order of The Cross
Notes to the Financial Statements
for the Year Ended 30 June 2023
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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
Voluntary Income
Legacies are accounted for in the period in which the legacy is received or if, before receipt, there is sufficient evidence to provide the necessary certainty that the legacy will be received and the value can be measured with sufficient reliability.
No amounts are included in the financial statements for services donated by volunteers.
Donations are recognised once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured reliability.
Activities in furtherance of charity's objects Income is accounted for on a accruals basis.
Activities for generating funds Income is accounted for on an accruals basis.
Investment Income
Investment Income is included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Other Income
All other income is accounted for on a accruals basis.
Expenditure
Resources expended are included in the statement of financial activities on an accruals basis.
Due to the nature of the charity's activities, the distinction between administration and charitable activities cannot be precisely measured because much of the work undertaken by the members is directly related to the various charitable and welfare activities.
For accounting purposes, expenditure is allocated as follows:
Charitable activities
All direct expenditure is in respect of promoting the aims of the charity including, the newsletter and various publications and subsidies and donations to other groups.
Governance costs
All other expenditure not directly allocated above including financial expenses and professional expenses.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 15% on reducing balance Computer equipment - 25% on reducing balance
continued...
Page 14
The Order of The Cross
Notes to the Financial Statements - continued for the Year Ended 30 June 2023
1. ACCOUNTING POLICIES - continued
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost is based on the cost of purchase on a first in first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Funds held by the charity are either:
Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds - these are funds that 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 a particular restricted purpose.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Provisions and accruals
Provisions are recognised when there is a present legal or constructive obligation as a result of past events and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Investments
Investments are included in the financial statements at market value. Movements in market value are recognised in the statement of financial activities as unrealised gains or losses.
2. ACTIVITIES FOR GENERATING FUNDS
| ACTIVITIES FOR GENERATING | FUNDS | |||
|---|---|---|---|---|
| Period | ||||
| 1.8.21 | ||||
| Year Ended | to | |||
| 30.6.23 | 30.6.22 | |||
| Unrestricted | Restricted | Total | Total | |
| funds | funds | funds | funds | |
| £ | £ | £ | £ | |
| Accommodation | 10,967 | - | 10,967 | 2,475 |
| Publications and literature | 130 | - | 130 | 96 |
| 11,097 | - | 11,097 | 2,571 |
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continued...
The Order of The Cross
Notes to the Financial Statements - continued for the Year Ended 30 June 2023
3. INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| Unrestricted funds £ UK Listed investments 151,759 Non Listed investments 3,517 Interest receivable 97,236 252,512 |
Year Ended 30.6.23 Restricted Total funds funds £ £ - 151,759 - 3,517 - 97,236 - 252,512 |
Period 1.8.21 to 30.6.22 Total funds £ 115,798 359 35,169 |
| 151,326 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 June 2023 nor for the period ended 30 June 2022.
Trustees' expenses
During the period Trustees and United Councils Committee were reimbursed travel and other expenses of £34,131 (2022 - £12,701).
5. TANGIBLE FIXED ASSETS
| Plant and | Computer | ||
|---|---|---|---|
| machinery | equipment | Totals | |
| £ | £ | £ | |
| COST | |||
| At 1 July 2022 and 30 June 2023 | 5,805 | 2,478 | 8,283 |
| DEPRECIATION | |||
| At 1 July 2022 | 2,939 | 1,635 | 4,574 |
| Charge for year | 430 | 211 | 641 |
| At 30 June 2023 | 3,369 | 1,846 | 5,215 |
| NET BOOK VALUE | |||
| At 30 June 2023 | 2,436 | 632 | 3,068 |
| At 30 June 2022 | 2,866 | 843 | 3,709 |
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continued...
The Order of The Cross
Notes to the Financial Statements - continued for the Year Ended 30 June 2023
6. FIXED ASSET INVESTMENTS
| Listed investments £ MARKET VALUE At 1 July 2022 6,635,595 Additions 440,055 Disposals (466,449) Revaluations 182,142 Dividends received 18,180 At 30 June 2023 6,809,523 NET BOOK VALUE At 30 June 2023 6,809,523 At 30 June 2022 6,635,595 There were no investment assets outside the UK. Cost or valuation at 30 June 2023 is represented by: Listed investments £ Valuation in 2023 6,809,523 7. STOCKS Stocks 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Held by Brewin Dolphin Ltd Held by Canaccord Genuity Wealth Managment Other debtors Income tax recoverable Prepayments |
Unlisted investments £ 62,022 - - (5,572) - 56,450 56,450 62,022 Unlisted investments £ 56,450 30.6.23 £ 2,078 30.6.23 £ 81,667 1,398 55,030 80 7,234 145,409 |
Totals £ 6,697,617 440,055 (466,449) 176,570 18,180 6,865,973 6,865,973 6,697,617 Totals £ 6,865,973 30.6.22 £ 2,112 30.6.22 £ 79,426 1,607 20,539 75 4,538 106,185 |
|---|---|---|
continued...
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The Order of The Cross
Notes to the Financial Statements - continued for the Year Ended 30 June 2023
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other creditors 10. MOVEMENT IN FUNDS Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS Net movement in funds, included in the above a Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS |
re as follows: Incoming resources £ 287,362 287,362 At 1.8.21 £ 12,289,213 58,287 12,347,500 |
At 1.7.22 £ 11,468,900 53,706 11,522,606 Resources expended £ (338,988) (338,988) Net movement in funds £ (820,553) (4,341) (824,894) |
30.6.23 £ 7,199 Net movement in funds £ 124,945 - 124,945 Gains and losses £ 176,571 176,571 Transfers between funds £ 240 (240) - |
30.6.22 £ 5,070 At 30.6.23 £ 11,593,845 53,706 11,647,551 Movement in funds £ 124,945 124,945 At 30.6.22 £ 11,468,900 53,706 11,522,606 |
|
|---|---|---|---|---|---|
continued...
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The Order of The Cross
Notes to the Financial Statements - continued
for the Year Ended 30 June 2023
10. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Restricted TOTAL FUNDS |
Incoming resources £ 156,964 746 157,710 |
Resources expended £ (260,691) (1,620) (262,311) |
Gains and Movement losses in funds £ £ (716,826) (820,553) (3,467) (4,341) (720,293) (824,894) |
|---|---|---|---|
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 June 2023.
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The Order of The Cross
Detailed Statement of Financial Activities for the Year Ended 30 June 2023
| Period | ||
|---|---|---|
| 1.8.21 | ||
| Year Ended | to | |
| 30.6.23 | 30.6.22 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 543 | 3,250 |
| Offertory | 1,299 | 563 |
| Legacies | 21,911 | - |
| 23,753 | 3,813 | |
| Activities for generating funds | ||
| Accommodation | 10,967 | 2,475 |
| Publications and literature | 130 | 96 |
| 11,097 | 2,571 | |
| Investment income | ||
| UK Listed investments | 151,759 | 115,798 |
| Non Listed investments | 3,517 | 359 |
| Interest receivable | 97,236 | 35,169 |
| 252,512 | 151,326 | |
| Total incoming resources | 287,362 | 157,710 |
| EXPENDITURE | ||
| Other trading activities | ||
| Publications and literature | 575 | 358 |
| Charitable activities | ||
| Gatherings | 121,642 | 108,979 |
| Worship facilities | 1,298 | 1,233 |
| Travel subsidies | 49,038 | 29,053 |
| Donations to Order of the Cross USA | 19,532 | 22,628 |
| Donations to United Councils | 1,500 | - |
| Donations to Order of the Cross Australia | 23,323 | 15,364 |
| Newsletter, website and announcements | 9,546 | 10,261 |
| 225,879 | 187,518 | |
| Other | ||
| Storage costs | 12,278 | 12,855 |
| Plant and machinery | 430 | 457 |
| Computer equipment | 211 | 251 |
| 12,919 | 13,563 |
This page does not form part of the statutory financial statements
Page 20
The Order of The Cross
Detailed Statement of Financial Activities for the Year Ended 30 June 2023
| Period | ||
|---|---|---|
| 1.8.21 | ||
| Year Ended | to | |
| 30.6.23 | 30.6.22 | |
| £ | £ | |
| Support costs | ||
| Management | ||
| Telephone | 764 | 1,694 |
| Printing, postage and stationery | 10,780 | 6,272 |
| Sundries | 469 | 364 |
| Accountancy fees | 3,505 | 944 |
| Trustees meetings | 9,749 | 2,968 |
| Trustees travel and telephone | 32,294 | 15,556 |
| Professional charges | 37,742 | 28,462 |
| Auditors' remuneration | 4,200 | 4,470 |
| 99,503 | 60,730 | |
| Finance | ||
| Bank charges | 112 | 142 |
| Total resources expended | 338,988 | 262,311 |
| Net expenditure before gains and losses | (51,626) | (104,601) |
| Realised recognised gains and losses | ||
| Realised gains/(losses) on fixed asset investments | 176,571 | (720,293) |
| Net income/(expenditure) | 124,945 | (824,894) |
This page does not form part of the statutory financial statements
Page 21