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2020-12-31-accounts

Charity number: 277298

FIRM FOUNDATION TRUST

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FIRM FOUNDATION TRUST

CONTENTS
Page
Reference and administrative details of the charity, its trustees and advisers 1
Trustees' report 2 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 16

FIRM FOUNDATION TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees

Mr Simon Gardiner Mr David Greenslade Mr Derek Malcolm Mr Doug Jarvie Mr Andrew Blakeman Mr Andrew Bull (appointed 3 March 2020)

Charity registered number

277298

Principal office

Challenge House, 3B 29 Canal Street, Glasgow, G4 0AD

Independent Examiner

Peter R Willans, 26 Burney Street, London, SE10 8EX

Bankers

Lloyds TSB, 82 Mount Pleasant Road, Tunbridge Wells, Kent, TN1 1RP

Page 1

FIRM FOUNDATION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report together with the financial statements of the Firm Foundation Trust (the charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005..

OBJECTIVES AND ACTIVITIES

a. POLICIES AND OBJECTIVES

The charity is currently seeking to make Christian literature available within Turkey and the Turkish speaking diaspora, in the Turkish language.

b. ACTIVITIES FOR ACHIEVING OBJECTIVES

Through its association with a publishing company situated in Turkey, the charity has energetically pursued its objectives by promoting and facilitating the translation, production and distribution of Christian literature in the Turkish language which has been its principal focus during the year. The charity’s use of specialist translators, on which the progress of the work depends, has been sustained at an encouraging and productive level during 2020.

The directors have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake and, in particular, the special guidance on charities for the advancement of the Christian Faith.

c. MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY'S PURPOSES FOR PUBLIC BENEFIT

The charity considers that the translation work carried out results in the Turkish public having access to quality Christian literature which can be used for educational as well as religious purposes.

Page 2

FIRM FOUNDATION TRUST

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

a. KEY FINANCIAL PERFORMANCE INDICATORS

The Key Financial Performance Indicators are funding and facilitating the publication of titles and ensuring that support costs are kept to a minimum.

b. REVIEW OF ACTIVITIES

During the year the charity continued to support the publishing company in Turkey in producing Christian literature in Turkish.

In 2020, in spite of the significant impact of the Coronavirus in the UK and Turkey, the charity completed the production of the following titles in The Bible Speaks Today series:

In addition, the following books were published in 2020:

There is ongoing work on other titles in the BST series, at various stages of production.

Old Testament

The Old Testament is now complete

New Testament The Message of Revelation

As the Bible commentary series nears completion, the Trust is receiving a significant increase in requests from likeminded ministries, Turkish church leaders and theological educators for help in publishing the literature they require. Ongoing work on the following titles reflects this trend:

I Believe in the Holy Spirit The Call to Joy and Pain A Handbook of NT Exegesis Christ Centred Preaching The New Freedom of Forgiveness 70 Great Christians Gospel Centred Hermeneutics

Web presence

The updating and refreshing of the charity’s website www.firmfoundationtrust.org continues. While this still does not attract a large number of regular hits the analytics show visitors from different countries and it remains an essential feature of our proposal when approaching potential donors for fundraising.

The Turkish website from which prospective purchasers order physical copies or can download electronic

Page 3

FIRM FOUNDATION TRUST

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

versions of the titles continues to have new digitised titles being added to the current list. This is seen as a vital element in the strategy of our Turkish publishing partner to further the distribution reach to an increasing number of Turkish believers.

c. FUNDRAISING ACTIVITIES/INCOME GENERATION

The charity is dependent for the continuation of its work on the receipt of grants and donations. The Trustees have reviewed the position with regard to grants and reserves that are held at present and consider the financial position at 31st December to be satisfactory.

d. INVESTMENT POLICY AND PERFORMANCE

The trust seeks to make maximum use of donations received and consequently any funds are held in deposit accounts with High Street Banks. The return is consequently low but the funds are available to usage with minimal delay..

FINANCIAL REVIEW

a. GOING CONCERN

After making appropriate enquiries, the trustees have a reasonable expectation, despite the ongoing impact of COVID -19, that the charity 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 regarding the adoption of the going concern basis can be found in the Accounting Policies.

b. RESERVES POLICY

The Trustees consider it desirable to hold the equivalent of three months' expenditure in General Reserves. The level of General Reserves at the end of the year carried forward to 2021 exceeded this.

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. CONSTITUTION

The Firm Foundation Trust was established by Declaration of Trust dated 11 December 1978, which was subsequently amended by a Deed of Variation dated 1 October 2010. It is registered with the Charity Commission with a registered number 277298. The Trust is governed by a Board of Trustees.

The principal object of the charity is the advancement of the Christian faith throughout the world by the instruction and edification of Christians, the care and Christian instruction of young people and children and the evangelisation of non-Christians.

There have been no changes in the objectives since the last annual report.

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the trust deed.

c. ORGANISATIONAL STRUCTURE AND DECISION MAKING

Page 4

FIRM FOUNDATION TRUST

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees meet twice a year for the purpose of decision taking and governance.

Mr Derek Malcolm, a Turkish speaking Trustee, is responsible for arranging for the publishing of Christian literature in Turkish. Before work on any new title commences a grant has usually been received by the charity to cover the cost.

d. RISK MANAGEMENT

The Trustees have assessed the major risks, including COVID-19, to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate the exposure to the major risks.

PLANS FOR FUTURE PERIODS

a. FUTURE DEVELOPMENTS

As noted previously, the visibility of the charity on the web and the ever-growing range of available titles in the Bible Speaks Today series and other resources means that the charity continues to make a significant contribution to fulfilling its stated objective of ‘Developing vital biblical resources for the Turkish-speaking church’. The addition of titles from the ‘Bible Themes’ series during 2020 has helped to take this to the next step. Additionally, the growing number of digitised versions available has the potential to reach an ever widening audience. The Trust is increasingly approached by theological educators and church leaders for help to produce a wider range of Biblical resources. The Trustees view this as an exciting development in the support of the Turkish speaking church.

Page 5

FIRM FOUNDATION TRUST

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees 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).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees, on 9 March 2021 and signed on their behalf by:

Mr Andrew Blakeman

Page 6

FIRM FOUNDATION TRUST

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FIRM FOUNDATION TRUST (the 'charity')

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2020.

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.

RESPONSIBILITIES AND BASIS OF REPORT

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

Your attention is drawn to the fact that the charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

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

Signed:

Dated: 9 March 2021

Peter R Willans B.Sc. (hons) FCA.

Landergan & Company Limited 26 Burney Street, London, SE10 8EX

Page 7

FIRM FOUNDATION TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
funds
Note
2020
£
INCOME FROM:
Donations and legacies
2
5,229
Investments
3
681
TOTAL INCOME
5,910
EXPENDITURE ON:
Charitable activities
6
3,955
TOTAL EXPENDITURE
3,955
NET INCOME BEFORE OTHER
RECOGNISED GAINS AND LOSSES
1,955
NET MOVEMENT IN FUNDS
1,955
RECONCILIATION OF FUNDS:
Total funds brought forward
48,273
TOTAL FUNDS CARRIED FORWARD
50,228		 Restricted
funds
2020
£
59,041
-
59,041
32,029
32,029
27,012
27,012
73,824
100,836		 Total
funds
2020
£
64,270
681
64,951
35,984
35,984
28,967
28,967
122,097
151,064		 Total
funds
2019
£
96,335
559
96,894
59,968
59,968
36,926
36,926
85,171
122,097

The notes on pages 10 to 16 form part of these financial statements.

Page 8

FIRM FOUNDATION TRUST

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
CREDITORS:amounts falling due within
one year
9
NET CURRENT ASSETS
NET ASSETS
CHARITY FUNDS
Restricted funds
10
Unrestricted funds
10
TOTAL FUNDS		 £
1,000
150,964
151,964
(900)		 2020
£
151,064
151,064
100,836
50,228
151,064		 £
-
122,997
122,997
(900)		 2019
£
122,097
122,097
73,824
48,273
122,097

The financial statements were approved by the Trustees on 9 March 2021 and signed on their behalf, by:

Mr Andrew Blakeman

The notes on pages 10 to 16 form part of these financial statements.

Page 9

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

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.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.

Firm Foundation Trust constitutes a public benefit entity as defined by FRS 102.

1.2 Income

All income is recognised once the charity 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 legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Page 10

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

1.3 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 charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

1.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.5 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.

1.6 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.7 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 charity 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 within interest payable and similar charges.

Page 11

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

1.8 Financial instruments

The charity only 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.

1.9 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 charity 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 charity 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 statements.

2. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2020
£
Donations
5,229
Total 2019
10,171		 Restricted
funds
2020
£
59,041
86,164		 Total
funds
2020
£
64,270
96,335		 Total
funds
2019
£
96,335

3. INVESTMENT INCOME

Unrestricted
funds
2020
£
Investment income
681
Total 2019
559		 Restricted
funds
2020
£
-
-		 Total
funds
2020
£
681
559		 Total
funds
2019
£
559

Page 12

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. DIRECT COSTS

Publishing Grants
Publishing House
Website Development
Total 2019		 Website
£
-
-
249
249
1,485		 Publishing
£
16,461
15,568
-
32,029
50,304		 Total
2020
£
16,461
15,568
249
32,278
51,789		 Total
2019
£
30,137
20,167
1,485
51,789

5. SUPPORT COSTS

Office Costs
Postage and Stationery
Bank Charges
Travelling
Trustees Expenses
Total 2019		 Activities
£
666
150
332
1,555
103
2,806
7,279		 Total
2020
£
666
150
332
1,555
103
2,806
7,279		 Total
2019
£
911
280
406
5,236
446
7,279

6. GOVERNANCE COSTS

GOVERNANCE COSTS
Unrestricted Restricted Total Total
funds funds funds funds
2020 2020 2020 2019
£ £ £ £
Independent Examiner's fees 900 - 900 900

7. NET INCOME/(EXPENDITURE)

During the year, no Trustees received any remuneration (2019 - £NIL). During the year, no Trustees received any benefits in kind (2019 - £NIL). During the year, 2 Trustees received reimbursement of expenses of £1,701 (2019 - £4,014).

Page 13

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8.
DEBTORS
Other debtors
9.
CREDITORS: Amounts falling due within one year
Other creditors
10.
STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR		 2020
£
1,000
2020
£
900		 2019
£
-
2019
£
900
Unrestricted funds
General Funds - all funds
Restricted funds
Specific Titles
Turkish Web
Total of funds
STATEMENT OF FUNDS - PRIOR YEAR
General Funds - all funds
Restricted funds
Specific Titles
Turkish Web		 Balance at
1 January
2020
£
48,273
70,931
2,893
73,824
122,097
Balance at
1 January
2019
£
45,722
35,071
4,378		 Income Expenditure
£
£
5,910
(3,955)
59,041
(32,029)
-
-
59,041
(32,029)
64,951
(35,984)
Income
Expenditure
£
£
10,730
(8,179)
86,164
(50,304)
-
(1,485)		 Balance at
31
December
2020
£
50,228
97,943
2,893
100,836
151,064
Balance at
31
December
2019
£
48,273
70,931
2,893

Page 14

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SUMMARY OF FUNDS - CURRENT YEAR

General funds
Restricted funds
SUMMARY OF FUNDS - PRIOR YEAR
General funds
Restricted funds		 Balance at
1 January
2020
£
48,273
73,824
122,097
Balance at
1 January
2019
£
45,722
39,449
85,171		 Income Expenditure
£
£
5,910
(3,955)
59,041
(32,029)
64,951
(35,984)
Income
Expenditure
£
£
10,730
(8,179)
86,164
(51,789)
96,894
(59,968)		 Balance at
31
December
2020
£
50,228
100,836
151,064
Balance at
31
December
2019
£
48,273
73,824
122,097

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2020
£
Current assets
51,128
Creditors due within one year
(900)
50,228		 Restricted
funds
2020
£
100,836
-
100,836		 Total
funds
2020
£
151,964
(900)
151,064

Page 15

FIRM FOUNDATION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Unrestricted
funds
2019
£
Current assets
49,173
Creditors due within one year
(900)
48,273		 Restricted
funds
2019
£
73,824
-
73,824		 Total
funds
2019
£
122,997
(900)
122,097

Page 16