Registered number: 01220696 Charity number: 270060
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Independent auditors' report on the financial statements | 10 - 14 |
| Consolidated statement of financial activities | 15 |
| Consolidated balance sheet | 16 |
| Company balance sheet | 17 |
| Consolidated statement of cash flows | 18 |
| Notes to the financial statements | 19 - 46 |
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2021
Trustees
| The Reverend Dr Simon M Jones, Chair | |
|---|---|
| Ben Andradi | |
| Christopher J H Adams | |
| Helen M K Couldrey | |
| The Very Reverend Jane Hedges | |
| Company registered number 01220696 Charity registered number 270060 Registered office 13a Hellesdon Park Road Norwich NR6 5DR Company secretary Dominic G Vaughan Chief executive officer Dominic G Vaughan Independent auditors Larking Gowen LLP Chartered Accountants King Street House 15 Upper King Street Norwich NR3 1RB Bankers Santander UK PLC Second Floor The Bell 5 Orford Hill Norwich NR1 3QB Solicitors Bates Wells 10 Queen Street Place London EC4R 1BE |
Page 1
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Hymns Ancient & Modern Limited (the company and the group) for the ended 30 September 2021. The Trustees confirm that the Annual Report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (FRS102) "Accounting and Reporting by Charities" (SORP (FRS102)).
Structure, governance and management
CONSTITUTION
Hymns Ancient and Modern Limited (HA&M) is a company limited by guarantee and accordingly does not have a share capital. The liability of the members is limited to an amount not exceeding £1 each. The company is governed by its Memorandum and Articles of Association formed in 1975 and amended in 2008. It is registered as a charity with the Charity Commission.
METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES
The Council of Management (Trustees), which should number not less than three nor more than seven, administers the charity. Trustees retire after three years but are able to be re-elected (up to three times plus 1 year). The Council of Management regularly reviews the range of skills amongst Trustees. The chairman is appointed by the Council of Management and there is no limit on the length of term the chairman can serve within the overall limit of a Trustee. New Trustees are found from the contacts and networks of existing Trustees, outside advisors and by advertising. When recruiting new Trustees, the Council of Management looks for individuals with skills and experience which are of value to the charity.
POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES
Potential Trustees are interviewed by the Council of Management and are provided with a pack of information including recent accounts and a copy of the Memorandum and Articles of Association. When a new Trustee joins the Council of Management they are provided with further information regarding finances, governance and charitable objectives including minutes of meetings for the previous year. They also receive documents on best practice taken from the Charity Commission website.
Trustees are highly experienced individuals and have a good understanding of what is involved in being a trustee of a charity. Where appropriate, the charity supports the training of Trustees including, for example, attendance at relevant seminars or events.
The Trustees are the directors of the company for the purposes of the Companies Act 2006. During the year these Trustees may receive remuneration within the limits set by the Articles of Association of Hymns Ancient & Modern Ltd.
ORGANISATIONAL STRUCTURE AND DECISION MAKING
The Council of Management meets quarterly. A Chief Executive is appointed by the Council of Management to manage the Charity. As a result of the size of the Charity, the Trustees delegate responsibility for day to day management to staff using planning and budgeting procedures, and delegation with segregation of duties.
Page 2
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
PAY POLICY FOR KEY MANAGEMENT PERSONNEL
Remuneration for all staff is set by the Council of Management annually. The annual amount is based on inflation and takes into account the final contribution figure in the annual accounts. Key management comprises the Senior Management Team:
Dominic Vaughan Sue Stapleford Stephen Rogers (retired December 2020) Stephen Dutton Paul Handley Genaro Santos (from November 2020) Christine Smith Michael Addison Aude Pasquier
RELATED PARTY RELATIONSHIPS
HA&M has one 100% subsidiary company, G J Palmer & Sons Limited, which is dormant.
RISK MANAGEMENT
The Council of Management has examined the principal areas of the Charity's operation and consider the major risks faced in each of those areas.
In the opinion of the Council of Management, the Charity has established resources and review systems which have been fully documented and which should allow these risks to be mitigated to an acceptable level in its day to day operations. In addition to procedures and process mitigation, where possible insurance has been purchased to mitigate financial risk. The key risk area for the organisation is potential change to the market resulting in challenges to sales.
There is a strategy for managing risk and this is supported by the Risk Assessment Document which rates risks according to their impact and probability. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.
A business continuity programme has been developed with Scenaris Ltd which will be implemented in the event of a major disaster. A test of the major elements of the plan has been carried out and lessons documented. It is intended to carry out occasional tests in the future.
HA&M have engaged Stallard Kane Associates Ltd to help ensure that best practice is followed in health and safety management and Bates Wells together with an HR consultant provide human resources support to ensure the safety and wellbeing of staff, customers and visitors to the charity's buildings and events. The organisation has qualified for a CyberEssentials certificate.
Page 3
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Objectives and Activities
POLICIES AND OBJECTIVES
HA&M's vision is to enable a greater engagement of the Christian religion worldwide through high quality publishing activities and targeted grant giving. It aims to build on its strong Anglican heritage to be the publisher and partner of choice in the world of Christian teaching, liturgy and music. It will provide products, services, events and financial support to achieve this goal.
More information about HA&M can be found on our website www.hymnsam.co.uk.
The objects of HA&M are:
-
to promote the advancement of religion;
-
to establish and support or aid in the establishment and support of any Charitable Corporation, Association, Institution, College, School, Society or Body whatsoever which in the opinion of the Hymns Ancient and Modern is connected with the work of the Church of England or any Church in communion with it, and to subscribe and guarantee money for any such charitable purpose;
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to aid and support any Charitable Corporation, Association, Institution, College, School, Society or Body which may not be in a direct relationship with the Church of England as aforesaid but whose aims and objects are, in the opinion of the Association, such as a Church of England organisation could properly aid and support.
The main objectives for the year continue to be those as stated above.
The means employed to achieve the Charity's objectives are as follows. The organisation engages in the publishing of religious journals, books, electronic products and provides publishing, distribution and related services to other religious organisations and publishers.
MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY'S PURPOSES FOR PUBLIC BENEFIT
Details of the main activities undertaken are included within Policies and Objectives (above) and Review of Activities (below).
Page 4
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
GRANT MAKING POLICIES
Grants are awarded based on the following criteria:
-
the project will be of real value and will make a difference to a substantial group of people. A project which is of limited interest or value will not normally be considered unless the project will clearly have a wider benefit;
-
The applicant is capable of carrying out the project;
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The applicant has a carefully budgeted project and has, and will, make full disclosure to the Trustees of the sources of other funding and if fortunate enough to be given more than sufficient for the project will immediately inform the Trustees to consider the surplus. The applicant should also supply a copy of their latest published financial statement if requested; and
-
In order to complete the successful grant process the Trustees will expect a report on completion of short term projects or an annual progress report for long term projects.
Proactive giving:
The Trustees will solicit ideas from others to help develop initiatives in our fields of interest. HA&M will seek advice on how it might be more proactive, rather than simply react to applications. Currently there are three main areas of interest:
-
Music and Education: the development of church music understanding, knowledge and related educational opportunities.
-
Liturgy (with special reference to training in liturgy).
-
Books (in print and electronic forms) - to provide training colleges and organisations, particularly in developing countries, with publications they need to further their work and develop their library.
The Trustees continue to reserve the right to vary the amount allocated in total and to each area and are solely responsible for accepting or rejecting requests. During the Covid-19 pandemic, grants have been reduced or not awarded. This is being reviewed regularly.
Staff have been encouraged to propose a single suitable charity, possibly local, that we would be able to work with directly, as well as provide grants for specific projects.
Details are shown on the company website (www.hymnsam.co.uk).
Page 5
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Group Strategic Report
Achievements and Performance
REVIEW OF ACTIVITIES
The general economy continues to be a challenge for publishers, booksellers and charities, and from March 2020 the effects of the Covid-19 Pandemic. Trading was affected by the lockdown and the effect of closure of bookshop, churches and many businesses. Advertising was also greatly reduced for at least 6 months when fewer jobs and church resources were being promoted. It was agreed by the trustees in March 2020 that no more grants to charities would be awarded until further notice to protect funds for the main activity of the promotion of religion. Hymnbook grants would continue.
Each division has clear financial objectives which reflect the overall annual budget.
The service divisions are expected to maintain or grow the service client base. All the divisions reflect the overall charitable aims and have achieved the financial and other related objectives set at the beginning of the year.
Grants of hymn books have been made amounting to £7,501. Grants to approved charities were £Nil. No funds have been designated for grants offered to charities which are contingent on future criteria. Since March 2020 no grants have been given to approved charities.
Church Times and Periodicals Division
Church Times continues to maintain its position as the leading Anglican weekly newspaper. Subscriptions continue to be positive and have increased over the year thanks to increased resources for readers and digital requirements during lockdown. The website and app are well used. All issues since the first in 1863 are available in digital format as part of the subscription or as a separate purchase. The cost of the app to users is part of the paper subscription, it can be purchased directly from Apple or from the HA&M website. Other publications are continuing to develop in print and digital form. Ordinands continue to get a free subscription during training.
Book Publishing and Distribution Division
Book publishing under the SCM Press and Canterbury Press imprints have continued to thrive over the year. Church House Publishing titles were published on behalf of The Archbishops' Council. St Andrew Press, published on behalf of The Church of Scotland, also contributed to book sales. Overall, titles have sold well. The bookselling website has done very well with direct sales and compensated for fewer trade outlets. Microsites have been developed as part of the services offered to several distribution and publishing clients. Sales were improved by providing titles in digital format. Apple and Android Apps and print on demand versions of many titles continue to be added to the list and are providing a significant contribution to sales. Some audio books are now being offered. Discounts for students and subscriber to Church Times are available. Hymnbooks have suffered from the closure of churches and other related pandemic restrictions.
Bookshop Division
Church House Bookshop has continued to trade during the Covid-19 crisis and during periods of lockdown has been able to provide a much needed online and mail order service. Physical events have been very limited but virtual book launches and other online selling opportunities have been developed and have been very successful.
Page 6
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Key Performance Indicators
The main key performance indicators used by the council of management are performance against budget and related targets including contribution.
Financial review
RESERVES POLICY
The Council of Management has reviewed the reserves of the charity. The review concluded that HA&M needed to maintain adequate reserves to continue to be able to fund grants, as part of routine business risk and business continuity planning and as a contingency in the event of major disruption to the business. The target level of free reserves required to meet these objectives is estimated at three months operating costs. At 30 September 2021 this amounted to approximately £1,599,000.
Total unrestricted funds at the year end amounted to £6,829,867. This sum includes funds invested in the charity’s tangible and intangible fixed assets totalling £736,748. It also includes funds held as fixed asset investments of £4,327,311 and cash totalling £989,023 which the trustees regard as being ear marked for strategic investment opportunities. When these strategic investment funds and the charity’s fixed assets are excluded, unrestricted reserves amounted to £776,785, equivalent to approximately one and a half month’s operating costs. Taking into account the level of strategic investment funds that are readily available in cash should these be required at short notice the trustees consider this level of reserves to be adequate in the circumstances.
FINANCIAL REVIEW
There were net incoming unrestricted resources for the year ended 30 September 2021 for the group of £433,260 (2020: £222,712 net outgoing resources). The unrestricted fund balances at the year end were £6,829,867 (2020: £6,396,607). The net incoming restricted resources for the year were £NIL (2020: £NIL) and the restricted fund balances at the year end were £NIL (2020: £NIL).
The main source of funding for HA&M is the sale, distribution and publishing of books and periodicals and events attendance and management. Expenditure has been directly linked to these income sources.
CORPORATION TAX
HA&M is registered as a charitable organisation and has been granted exemption from corporation tax under the provisions of section 466 to 493 of the Corporation Tax Act 2010.
MATERIAL INVESTMENTS POLICY
Under the Memorandum and Articles of Association, the Trustees have wide powers of investment. Funds are held in short and longer term investments to provide for long term development, to provide working capital and to enable grant giving. The Charity is looking for investments to support the Charity's objects.
For long term investments, the Council has appointed investment managers, with a mandate to provide a real rate of return of 3%. Investments are held in accordance with the Church of England’s ethical investment exclusion policy.
Page 7
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Plans for future periods
FUTURE DEVELOPMENTS
The group remains in a strong financial and strategic position with its spread of products, customers and investments. HA&M has a good reputation as a charity, publisher, publishing service provider and partner. It will continue to develop relationships with like-minded organisations and provide its experience and expertise to help them succeed. Investments in new technologies has helped in keeping the organisation trading since the Covid19 virus struck. These will help to ensure that customers can obtain the religious information and music they need even though the number of specialist outlets is likely to be smaller than ever. There will be a continuing monitoring of performance to ensure all areas are contributing as budgeted, products are produced according to plan and services maintained at the current level.
KEY FINANCIAL PERFORMANCE INDICATORS
As mentioned in Review of Activities above, the main key financial performance indicators used by the Council of Management are performance against budget and related targets including contribution.
GOING CONCERN
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details of the circumstances surrounding this assumption can be found in the Review of Activities section of this report and the Accounting Policies.
TRUSTEES' RESPONSIBILITIES STATEMENT
The Trustees (who are also directors of HA&M for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
Page 8
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
DISCLOSURE OF INFORMATION TO AUDITORS
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
Approved by order of the members of the board of Trustees on 27 January 2022 and signed on their behalf by:
................................................ The Reverend Dr Simon M Jones
Page 9
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED
Opinion
We have audited the financial statements of Hymns Ancient and Modern Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 30 September 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 30 September 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent charitable company'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.
Page 10
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.
-
the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Page 11
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 Group's and the parent charitable company'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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Page 12
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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 an Auditors' report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The extent to which the audit was considered capable of detecting irregularities including fraud
Due to the field in which the group operates, we identified the following areas as those most likely to have a material impact on the financial statements: health and safety; employment law; environmental regulations; GDPR; and compliance with the UK Companies Act and Charities Act.
Our approach to identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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Enquiries with management about any known or suspected instance of non-compliance with laws and regulations, accidents in the workplace and fraud;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Challenging assumptions and judgements made by management in their significant account estimates, in particular in relation to depreciation calculations, recognition of legacy income and recoverability of debtors;
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Auditing the risk of management override of controls, including those through testing journals entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' report.
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HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Julie Grimmer FCA DChA (Senior statutory auditor)
for and on behalf of Larking Gowen LLP
Chartered Accountants Statutory Auditors
Norwich
N.B. The date of signing should be entered in 'ACCOUNTS COMPLETION' section Date: 27 January 2022
Page 14
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Other income 7 Total income Expenditure on: Charitable activities 8 Total expenditure Net (expenditure)/income before net gains on investments Net gains on investments Net income/(expenditure) Transfers between funds 22 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ - 6,238,541 4,565 115,268 6,358,374 6,395,354 6,395,354 (36,980) 426,933 389,953 43,307 433,260 6,396,607 433,260 6,829,867 |
Restricted funds 2021 £ 60,561 - - 43,307 103,868 60,561 60,561 43,307 - 43,307 (43,307) - - - - |
Total funds 2021 £ 60,561 6,238,541 4,565 158,575 6,462,242 6,455,915 6,455,915 6,327 426,933 433,260 - 433,260 6,396,607 433,260 6,829,867 |
Total funds 2020 £ 44,223 5,994,262 20,561 224,189 6,283,235 6,734,204 6,734,204 (450,969) 228,257 (222,712) - (222,712) 6,619,319 (222,712) 6,396,607 |
|---|---|---|---|---|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 19 to 46 form part of these financial statements.
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HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee) REGISTERED NUMBER: 01220696
CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2021
| Note Fixed assets Intangible assets 15 Tangible assets 16 Investments 17 Current assets Stocks 18 Debtors 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets Total net assets Charity funds Unrestricted funds 22 Total funds |
1,202,485 691,617 1,671,390 3,565,492 (1,799,684) |
2021 £ 649,030 87,718 4,327,311 5,064,059 1,765,808 6,829,867 6,829,867 6,829,867 |
1,176,354 718,290 1,550,176 3,444,820 (1,680,294) |
2020 £ 608,729 123,709 3,899,643 |
|---|---|---|---|---|
| 4,632,081 1,764,526 |
||||
| 6,396,607 | ||||
| 6,396,607 | ||||
| 6,396,607 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 27 January 2022 and signed on their behalf by:
................................................
The Reverend Dr Simon Jones
The notes on pages 19 to 46 form part of these financial statements.
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HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee) REGISTERED NUMBER: 01220696
COMPANY BALANCE SHEET AS AT 30 SEPTEMBER 2021
| Note Fixed assets Intangible assets 15 Tangible assets 16 Investments 17 Current assets Stocks 18 Debtors 19 Cash at bank and in hand Creditors: amounts falling due within one year 20 Net current assets Total net assets Charity funds Unrestricted funds 22 Total funds |
1,202,485 691,617 1,671,390 3,565,492 (1,822,019) |
2021 £ 649,030 87,718 4,349,311 5,086,059 1,743,473 6,829,532 6,829,532 6,829,532 |
1,176,354 718,290 1,550,176 3,444,820 (1,702,629) |
2020 £ 608,729 123,709 3,921,643 |
|---|---|---|---|---|
| 4,654,081 1,742,191 |
||||
| 6,396,272 | ||||
| 6,396,272 | ||||
| 6,396,272 |
The Company's net movement in funds for the year was £ 433,260 (2020 - £(222,712)) .
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 27 January 2022 and signed on their behalf by:
................................................ The Reverend Dr Simon Jones
The notes on pages 19 to 46 form part of these financial statements.
Page 17
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible and intangible fixed assets Purchase of investments Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 19 to 46 form part of these financial statements |
2021 £ 407,553 4,565 (288,547) (2,357) (286,339) - 121,214 1,550,176 1,671,390 |
2020 £ (425,855) 22,472 (290,645) (417) (268,590) - (694,445) 2,244,621 1,550,176 |
|---|---|---|
Page 18
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. General information
Hymns Ancient and Modern Limited is a company limited by guarantee incorporated in England, registration number 01220696. The registered office is 13a Hellesdon Park Road, Norwich, NR6 5DR.
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Hymns Ancient and Modern Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
2.2 Company Status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
2.3 Going concern
The Directors consider that the charity has sufficient financial resources to continue for the forseeable future. Current trading is at a level sufficient to support this assumption and therefore deem it appropriate to prepare the financial statements on a going concern basis.
Page 19
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For all book sales and distribution income is recognised at the point of dispatch.
Periodicals income is recognised on a straight line over the term of the subscription.
2.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
2.6 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.
2.7 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the Bank.
Page 20
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. Accounting policies (continued)
2.8 Intangible assets and amortisation
Intangible assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
No amortisation is charged on systems under development. On completion, they are transferred to website costs and depreciated in line with the policy stated below.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset, less their estimated residual value, on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following bases:
Website costs - 25 % of cost Computer software - 25 % of cost
2.9 Tangible fixed assets and depreciation
Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, on a straight line basis over their expected useful lives.
Depreciation is provided on the following bases:
Leasehold improvements - 7-20% of cost Fixtures, fittings, office - 20-25% of cost equipment & computer equipment Office equipment - 20-50% of cost Computer equipment - 25-33% of cost
Page 21
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. Accounting policies (continued)
2.10 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
2.11 Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.12 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.13 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.14 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
2.15 Financial instruments
The company has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fixed asset investments are not basic financial instruments and are initially recognised at transaction value and subsequently measured at fair value.
Page 22
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. Accounting policies (continued)
2.16 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rate of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the last day of the preceeding month.
Exchange gains and losses are recognised in the Statement of financial activities.
2.17 Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
2.18 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statementsfinancial statements.
Page 23
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
3. Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Useful economic lives of tangible and intangible assets
The annual depreciation charge for tangible and intangible assets is sensitive to changes in the useful economic lives and residual values of the assets. These useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 15 and 16 for the carrying amounts of tangible and intangible assets and accounting policies 2.8 and 2.9 for the useful economic lives for each class of assets.
Stock provisioning
The charity sells books and periodicals and is subject to consumer demands and trends. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the inventory provision, management considered the nature and condition of stock, as well as applying assumptions around anticipated saleability or finished goods and recoverability of work in progress. See note 18 for the net carrying amount of the stocks and the associated provision.
4. Income from donations and legacies
| Donations Donations |
Restricted funds 2021 £ 60,561 Restricted funds 2020 £ 44,223 |
Total funds 2021 £ 60,561 |
|---|---|---|
| Total funds 2020 £ 44,223 |
Page 24
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
5. Income from charitable activities
| Unrestricted funds 2021 £ Bookshop 333,159 Books 2,808,237 Distribution 407,525 Church Times 2,495,001 Periodicals 138,211 Major events 56,408 Total 2021 6,238,541 Unrestricted funds 2020 £ Bookshop 466,954 Books 2,523,614 Distribution 412,010 Church Times 2,395,683 Periodicals 154,101 Major events 41,900 Total 2020 5,994,262 6. Investment income Unrestricted funds 2021 £ Investment income 4,565 |
Total funds 2021 £ 333,159 2,808,237 407,525 2,495,001 138,211 56,408 |
|---|---|
| 6,238,541 | |
| Total funds 2020 £ 466,954 2,523,614 412,010 2,395,683 154,101 41,900 |
|
| 5,994,262 | |
| Total funds 2021 £ 4,565 |
Page 25
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
6. Investment income (continued)
| Unrestricted | Total | |
|---|---|---|
| funds | funds | |
| 2020 | 2020 | |
| £ | £ | |
| Investment income | 20,561 | 20,561 |
7. Other incoming resources
| Unrestricted funds 2021 £ Other income 92,413 Small Business grant 22,855 Coronavirus Job Retention Scheme income - 115,268 |
Restricted funds 2021 £ - - 43,307 43,307 |
Total funds 2021 £ 92,413 22,855 43,307 158,575 |
|---|---|---|
During the year the Charity received exceptional Government funding as part of the Coronavirus Job Retention Scheme. Funding represents the costs of employing certain staff unable to carry out their duties as a result of the Coronavirus crisis.
| Other income Small Business grant Coronavirus Job Retention Scheme income |
Unrestricted funds 2020 £ 104,434 21,431 - 125,865 |
Restricted funds 2020 £ - - 98,324 98,324 |
Total funds 2020 £ 104,434 21,431 98,324 |
|---|---|---|---|
| 224,189 |
Page 26
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
8. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2021 £ Governance costs 57,122 Cost of sales 3,375,183 Distribution 394,882 Administrative expenses 2,560,666 Train A Priest - Grants of books 7,501 Total 2021 6,395,354 Unrestricted funds 2020 £ Governance costs 58,418 Cost of sales 3,458,555 Distribution 334,164 Administrative expenses 2,807,433 Grants payable to approved charities 6,735 Train A Priest - Grants of books 24,676 6,689,981 |
Restricted funds 2021 £ - - - - 60,561 - 60,561 Restricted funds 2020 £ - - - - - 44,223 - 44,223 |
Total funds 2021 £ 57,122 3,375,183 394,882 2,560,666 60,561 7,501 |
|---|---|---|
| 6,455,915 | ||
| Total funds 2020 £ 58,418 3,458,555 334,164 2,807,433 6,735 44,223 24,676 |
||
| 6,734,204 |
Page 27
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
9. Analysis of grants
| Train A Priest Grants of books Grants payable to approved charities Train A Priest Grants of books |
Grants to Institutions 2021 £ - 7,501 7,501 Grants to Institutions 2020 £ 6,735 - 24,676 31,411 |
Grants to Individuals 2021 £ 60,561 - 60,561 Grants to Individuals 2020 £ - 44,223 - 44,223 |
Total funds 2021 £ 60,561 7,501 |
|---|---|---|---|
| 68,062 | |||
| Total funds 2020 £ 6,735 44,223 24,676 |
|||
| 75,634 |
Page 28
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
£Nil Grants were paid to the followng approved charities during the year (2020 - £6,735):
| All Souls Orchestra Anglican Centre in Rome Anglican Communion Fund Books Christians Against Poverty Ipswich Deanery Ipswich Deanery - books Norwich Youth for Christ Oddments Theatre Sansara Choir Norwich Cathedral St Andrew's Church, Spratton Winchester School Mission - books |
2021 £ - - - - - - - - - - - - - |
2020 £ (2,000) 5,000 (2,000) 175 2,000 2,000 2,000 1,900 (1,000) (3,000) (340) 2,000 6,735 |
|---|---|---|
Grants of books totalling £7,501 (2020: £24,676) were made to 23 organisations (2020: 95). These grants are typically in the region of £270.
Negative grants are amounts that were awarded in previous years, but that were not claimed and have therefore expired.
Page 29
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
10. Governance costs
| Unrestricted funds 2021 £ Auditors' remuneration 13,800 Trustees' remuneration including national insurance 42,390 Trustees' reimbursed expenses for attendance at meetings and meeting costs 932 57,122 Unrestricted funds 2020 £ Auditors' remuneration 13,800 Trustees' remuneration including national insurance 38,746 Trustees' reimbursed expenses for attendance at meetings and meeting costs 5,872 58,418 |
Total funds 2021 £ 13,800 42,390 932 |
|---|---|
| 57,122 | |
| Total funds 2020 £ 13,800 38,746 5,872 |
|
| 58,418 |
11. Analysis of expenditure by activities
| Governance Cost of sales Distribution Administrative expenses Train A Priest Grant of books |
Activities undertaken directly 2021 £ - 3,375,183 394,882 - - - 3,770,065 |
Grant funding of activities 2021 £ - - - - 60,561 7,501 68,062 |
Support costs 2021 £ 57,122 - - 2,560,666 - - 2,617,788 |
Total funds 2021 £ 57,122 3,375,183 394,882 2,560,666 60,561 7,501 |
|---|---|---|---|---|
| 6,455,915 |
Page 30
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
11. Analysis of expenditure by activities (continued)
| Governance Cost of sales Distribution Administrative expenses Grants payable to approved charities Train A Priest Grant of books |
Activities undertaken directly 2020 £ - 3,458,555 334,164 - - - - 3,792,719 |
Grant funding of activities 2020 £ - - - - 6,735 44,223 24,676 75,634 |
Support costs 2020 £ 58,418 - - 2,807,433 - - - 2,865,851 |
Total funds 2020 £ 58,418 3,458,555 334,164 2,807,433 6,735 44,223 24,676 |
|---|---|---|---|---|
| 6,734,204 |
12. Auditors' remuneration
- The auditors' remuneration amounts to an auditor fee of £13,000 (2020 £12,600) , and other assurance services of £1,200 ( 2020 - £1,200 ).
13. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Group 2021 £ 1,792,463 171,113 174,061 2,137,637 |
Group 2020 £ 1,922,584 182,563 183,808 2,288,955 |
Company 2021 £ 1,792,463 171,113 174,061 2,137,637 |
Company 2020 £ 1,922,584 182,563 183,808 |
|---|---|---|---|---|
| 2,288,955 |
Page 31
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
13. Staff costs (continued)
The average number of persons employed by the Company during the year was as follows:
| Group | Group |
|---|---|
| 2021 | 2020 |
| No. | No. |
| 61 | 66 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | |
|---|---|---|
| 2021 | 2020 | |
| No. | No. | |
| In the band £60,001 - £70,000 | 1 | 3 |
| In the band £70,001 - £80,000 | 3 | - |
| In the band £130,001 - £140,000 | 1 | 1 |
Employer pension contributions totalling £38,439 (2020 - £32,617) were made in the year for the provision of a defined contribution scheme for the higher paid employees.
Key management personnel consists of the Senior Management Team (as disclosed on page 3) and the Trustees. The total remuneration payable to these 9 key personnel members including employers national insurance (2020 - 13) was £699,173 (2020 - £689,269).
Page 32
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
14. Trustees' remuneration and expenses
During the year ended 30 September 2021, expenses totalling £ 932 were reimbursed or paid directly to 5 Trustees (2020 - £5,920 to 5 Trustees) .
During the year 1 (2020: 2) Trustee was paid royalties and other fees totalling £408 (2020: £532).
The Memorandum and Articles of Association authorise the reasonable and proper remuneration of the Council of Management. Authorised remuneration for the period was as follows.
| The Reverend Dr Simon Jones The Right Reverend Stephen Platten Christopher Adams Helen Couldrey Ben Andradi The Very Reverend Jane Hedges |
2021 £ 11,546 - 7,498 7,498 7,498 7,498 41,538 |
2020 £ 9,773 3,662 7,344 7,344 4,896 4,896 |
|---|---|---|
| 37,915 |
Page 33
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
15. Intangible assets
Group and Company
| Cost At 1 October 2020 Additions Disposals Transfers At 30 September 2021 Amortisation At 1 October 2020 Charge for the year On disposals At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
Website £ 970,293 12,048 (44,992) 105,915 1,043,264 714,587 120,518 (44,992) 790,113 253,151 255,706 |
Systems being developed £ 39,408 99,484 - (105,915) 32,977 - - - - 32,977 39,408 |
Computer software £ 410,415 156,342 - - 566,757 96,800 107,055 - 203,855 362,902 313,615 |
Total £ 1,420,116 267,874 (44,992) - 1,642,998 811,387 227,573 (44,992) 993,968 649,030 608,729 |
|---|---|---|---|---|
Page 34
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
16. Tangible fixed assets
Group and Company
| Cost or valuation At 1 October 2020 Additions Disposals At 30 September 2021 Depreciation At 1 October 2020 Charge for the year On disposals At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
Long-term leasehold property £ 214,567 - - 214,567 170,031 16,385 - 186,416 28,151 44,536 |
Fixtures and fittings £ 110,749 - (725) 110,024 97,283 7,653 (725) 104,211 5,813 13,466 |
Office equipment £ 184,508 20,672 (24,933) 180,247 118,801 32,626 (24,934) 126,493 53,754 65,707 |
Total £ 509,824 20,672 (25,658) 504,838 386,115 56,664 (25,659) 417,120 87,718 123,709 |
|---|---|---|---|---|
Page 35
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
17. Fixed asset investments
| Group Cost or valuation At 1 October 2020 Additions Revaluations At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
Listed investments £ 3,890,972 2,357 425,311 4,318,640 4,318,640 3,890,972 |
Other fixed asset investments £ 8,671 - - 8,671 8,671 8,671 |
Total £ 3,899,643 2,357 425,311 |
|---|---|---|---|
| 4,327,311 | |||
| 4,327,311 | |||
| 3,899,643 |
Page 36
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
17. Fixed asset investments (continued)
The historical cost of listed investments is £3,505,322 (2020: £3,150,620).
The historical cost of other fixed asset investments is £8,644 (2020: £8,644).
All the fixed asset investments are held in the UK.
Investments
| Investments | ||||
|---|---|---|---|---|
| Company Cost or valuation At 1 October 2020 Additions Revaluations At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
in subsidiary companies £ 22,000 - - 22,000 22,000 22,000 |
Listed investments £ 3,890,972 2,357 425,311 4,318,640 4,318,640 3,890,972 |
Other fixed asset investments £ 8,671 - - 8,671 8,671 8,671 |
Total £ 3,921,643 2,357 425,311 |
| 4,349,311 | ||||
| 4,349,311 | ||||
| 3,921,643 |
All the fixed asset investments are held in the UK.
Included within other investments at 30 September 2021 are shares in group undertakings of £22,000 (2020: £22,000). Details of the subsidiary company are included in note 31.
Listed securities are shown at market value on the balance sheet date. Unlisted securities are held at cost less impairment.
Group material investments
The following investments are considered to be material:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Sarasin Endowment Fund Class A (Acc) | 4,318,640 | 3,890,972 |
Page 37
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
18. Stocks
| Packaging Work in progress Finished goods and goods for resale |
Group 2021 £ 7,897 156,938 1,037,650 1,202,485 |
Group 2020 £ 7,127 150,034 1,019,193 1,176,354 |
Company 2021 £ 7,897 156,938 1,037,650 1,202,485 |
Company 2020 £ 7,127 150,034 1,019,193 |
|---|---|---|---|---|
| 1,176,354 |
Stock recognised in cost of sales during the year as an expense was £846,356 (2020: £764,638).
19. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
Group 2021 £ 330,701 134,666 226,250 691,617 |
Group 2020 £ 419,589 103,373 195,328 718,290 |
Company 2021 £ 330,701 134,666 226,250 691,617 |
Company 2020 £ 419,589 103,373 195,328 |
|---|---|---|---|---|
| 718,290 |
Page 38
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
20. Creditors: Amounts falling due within one year
| Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 October 2020 Resources deferred during the year Amounts released from previous periods |
Group 2021 £ 352,771 - 176,009 584,168 686,736 1,799,684 Group 2021 £ 638,364 686,736 (638,364) 686,736 |
Group 2020 £ 297,146 - 184,824 538,880 659,444 1,680,294 Group 2020 £ 630,589 638,364 (630,589) 638,364 |
Company 2021 £ 352,771 22,335 176,009 584,168 686,736 1,822,019 Company 2021 £ 638,364 686,736 (638,364) 686,736 |
Company 2020 £ 297,146 22,335 184,824 538,880 659,444 1,702,629 Company 2020 £ 630,589 638,364 (630,589) 638,364 |
|---|---|---|---|---|
Deferred income is made up of subscription fees for various periodicals.
Page 39
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
21. Financial instruments
| Financial assets Financial assets measured at fair value through income and expenditure Financial assets that are debt instruments measured at amortised cost Financial liabilities Financial liabilities measured at amortised cost |
Group 2021 £ 4,327,311 465,367 4,792,678 936,939 |
Group 2020 £ 3,899,643 522,962 |
|---|---|---|
| 4,422,605 | ||
| 836,026 |
Financial assets measured at fair value through income and expenditure comprise listed fixed asset investments. The fair value is taken as the market value of the investments based on the portfolio valuation report obtained from Sarasin & Partners at the balance sheet date.
Financial assets measured at amortised cost comprise trade and other debtors.
Financial liabilities measured at amortised cost comprise trade and other creditors.
Page 40
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
22. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Restricted funds Train a Priest Government Grants Total of funds |
Balance at 1 October 2020 £ 6,396,607 - - - 6,396,607 |
Income £ 6,358,374 60,561 43,307 103,868 6,462,242 |
Expenditure £ (6,395,354) (60,561) - (60,561) (6,455,915) |
Transfers in/out £ 43,307 - (43,307) (43,307) - |
Gains/ (Losses) £ 426,933 - - - 426,933 |
Balance at 30 September 2021 £ 6,829,867 |
|---|---|---|---|---|---|---|
| - - |
||||||
| - | ||||||
| 6,829,867 |
Page 41
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
22. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Restricted funds Train A Priest Government Grants Total of funds |
Balance at 1 October 2019 £ 6,619,319 - - - 6,619,319 |
Income £ 6,110,633 44,223 98,324 142,547 6,253,180 |
Expenditure £ (6,659,926) (44,223) - (44,223) (6,704,149) |
Transfers in/out £ 98,324 - (98,324) (98,324) - |
Gains/ (Losses) £ 228,257 - - - 228,257 |
Balance at 30 September 2020 £ 6,396,607 |
|---|---|---|---|---|---|---|
| - - |
||||||
| - | ||||||
| 6,396,607 |
23. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 October 2020 £ 6,396,607 - 6,396,607 |
Income £ 6,358,374 103,868 6,462,242 |
Expenditure £ (6,395,354) (60,561) (6,455,915) |
Transfers in/out £ 43,307 (43,307) - |
Gains/ (Losses) £ 426,933 - 426,933 |
Balance at 30 September 2021 £ 6,829,867 - |
|---|---|---|---|---|---|---|
| 6,829,867 |
Page 42
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
23. Summary of funds (continued)
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 October 2019 £ 6,619,319 - 6,619,319 |
Income £ 6,110,633 142,547 6,253,180 |
Expenditure £ (6,659,926) (44,223) (6,704,149) |
Transfers in/out £ 98,324 (98,324) - |
Gains/ (Losses) £ 228,257 - 228,257 |
Balance at 30 September 2020 £ 6,396,607 - 6,396,607 |
|---|---|---|---|---|---|---|
24. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 87,718 Intangible fixed assets 649,030 Fixed asset investments 4,327,311 Current assets 3,565,492 Creditors due within one year (1,799,684) Total 6,829,867 |
Total funds 2021 £ 87,718 649,030 4,327,311 3,565,492 (1,799,684) 6,829,867 |
|---|---|
Page 43
HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
24. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 123,709 608,729 3,899,643 3,444,820 (1,680,294) 6,396,607 |
Total funds 2020 £ 123,709 608,729 3,899,643 3,444,820 (1,680,294) 6,396,607 |
|---|---|---|
25. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation and amortisation charges Unrealised gains on investments Dividends, interests and rents from investments Increase in stocks Decrease in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities |
Group 2021 £ 433,260 284,237 (425,311) (4,565) (26,131) 26,673 119,390 407,553 |
Group 2020 £ (222,712) 209,152 (226,346) (22,472) (98,344) 155,009 (220,142) (425,855) |
|---|---|---|
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HYMNS ANCIENT AND MODERN LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
26. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
Group 2021 £ 1,671,390 1,671,390 |
Group 2020 £ 1,550,176 |
|---|---|---|
| 1,550,176 |
27. Analysis of changes in net debt
| Cash at bank and in hand | At 1 October 2020 £ 1,550,176 1,550,176 |
Cash flows £ 121,214 121,214 |
At 30 September 2021 £ 1,671,390 |
|---|---|---|---|
| 1,671,390 |
28. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £174,061 (2020 - £183,808). Contributions totalling £18,236 (2020 - £19,878) were payable to the fund at the balance sheet date and are included in creditors.
29. Operating lease commitments
At 30 September 2021 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Amounts payable for leases on land and buildings and other leases: Within 1 year In years 2 to 5 |
Group 2021 £ 285,307 504,180 789,487 |
Group 2020 £ 320,390 697,389 1,017,779 |
Company 2021 £ 285,307 504,180 789,487 |
Company 2020 £ 320,390 697,389 |
|---|---|---|---|---|
| 1,017,779 |
Page 45
HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
30. Related party transactions
During the year £6,350 (2020 - £6,350) was received for services provided to The English Hymnal Company Limited a company in which Hymns Ancient and Modern Limited has a minority shareholding.
31. Principal subsidiaries
The following was a subsidiary undertaking of the Company:
| Name | Company | Holding | Included in |
|---|---|---|---|
| number | consolidation | ||
| G.J.Palmer and Sons Limited | 00291335 | 100% | Yes |
| The financial results of the subsidiary for the year were: | |||
| Name | Net assets | ||
| £ | |||
| G.J.Palmer and Sons Limited | 22,335 |
Page 46