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2020-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

GOSPORT CORNERSTONE TRUST

CHARITY REGISTRATION No: 282517

Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Bosham Delling Lane Bosham PO18 8NF

GOSPORT CORNERSTONE TRUST

CONTENTS

Page 3 Legal and Administrative Information
Page 4 to 6 Trustees' Report
Page 7 Independent Examiner's Report to the Trustees
Page 8 Statement of Financial Activities
Page 9 Balance Sheet
Pages 10 to 15 Notes to the Financial Statements

2

GOSPORT CORNERSTONE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER

282517

START OF FINANCIAL YEAR 1st January 2021 END OF FINANCIAL YEAR 31st December 2021

TRUSTEES 31st DECEMBER 2021

Mr C R Atkinson (chair) Mr B H Cossins Ms L Pettersen

New Trustees are appointed by the existing Trustees.

LEGAL STATUS

Unincorporated Charity

GOVERNING INSTRUMENT

Declaration of Trust dated 14th April 1981, amended 20th February 1996

OBJECTS

The advancement of the Christian faith.

CORRESPONDENCE ADDRESS

9 Bemisters Lane Gosport Hampshire PO12 1HB

PRIMARY BANKERS

Santander UK Plc 301 St Vincent Street Glasgow G2 5NT

INDEPENDENT EXAMINER

Kim Gomes MAAT Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

3

GOSPORT CORNERSTONE TRUST

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

The trustees present their report and accounts for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s governing document, applicable law and the requirements of the 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 (FRS102) and with the Charities Act 2011.

Structure, Governance and Management

The trust was established by a declaration of trust dated 14 April 1981. The trust's objects are to promote the better knowledge and understanding of the doctrines of the Christian faith through the sale of literature.

The trustees who served this year were: Mr C R Atkinson Mr B Cossins Mrs L Pettersen

The long term future operation is entirely dependent on the active involvement of the trustees, supported by a small group of willing volunteers, especially Mrs Sylvia Atkinson, Mrs June Powell and Mrs Carole North. The trustees are grateful to the committed team of volunteers who are members of local churches, who give their time on a regular basis, and whose vision and perseverance allows the shop to continue running in good order.

The Trustees have assessed the major risks to which the charity is exposed and they are satisfied that systems are in place to mitigate exposure to major risks, with the exception of the holding of reserves which is dealt with more fully below in paragraph one of Achievements and Performance.

Objectives and Activities

The trust has traded since its inception as Cornerstone Books and Cards, known locally as Cornerstone Books, and has achieved the aims of the trust through the sale of Bibles, Christian books and other goods having a direct connection with the propagation of the Christian faith.

The covid-19 pandemic has continued to affect our operations through most of 2021. The first 7 weeks of the year the shop remained closed, due to the national shutdown, with trading not restarting until week 15, which was after Easter, so losing the Easter trading period. Once open it was clear that there was less footfall, probably due to peoples reticence to return to retail settings, and the general depression of activity in Gosport High Street. We were able to keep open for the rest of the year, however the crucial lead up to Christmas trading was again hit by the rise of the Omicron variant, and the consequent loss of consumer confidence in attending retail establishments.

Due to the low cost base of the shop, owning the property and with volunteer staff, along with much reduced stock replenishment the finances have been held in a stable state. The first Government grant of £10,000 was received, which provided a helpful buffer, and the scrapping of business rates for the year reduced outgoings further. The trustees decided that we should not apply for subsequent grants. We were very grateful to Cedaroak Crisis Pregnancy who took the decision to maintain their office in the shop through the lockdowns and have been able to maintain their rent payments throughout. Their future operation is now under review and the trustees have offered a reduced retail for 12 months to reduce their overheads whilst they assess the future of their operation.

4

GOSPORT CORNERSTONE TRUST

TRUSTEES REPORT(continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

The trading pattern for year 2021 showed a slight improvement on the previous year, however the underlying trends still seem to be downwards, and it is apparent that our trading is now well down on 5 years ago.

The end of year stocktake was conducted by a small group of volunteers, and showed another small decrease in stock value, with an overall holding of about £50,000, on an annual turnover of £20,000, meaning that stock levels are still considered to be too high, and efforts will continue to reduce overall holdings. Whilst quantity of stock has clearly reduced, increasing unit prices of many items means we hold less items for the same overall value and a number of items are now becoming dated and may need writing off in the current year. Sale of dated stock on Amazon has continued, which clears small quantities, but brings limited returns due to the Amazon fee structure. We have increased our support of the charity Book Aid, with 12 boxes of books being donated.

Achievements and Performance

It has been the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that in the event of a significant drop in trading they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. The trustees policy is to build up a reserve fund of £20,000 over the next 3 years to be in a place to cover the cost of any future repairs needed to the flat roof. The level of reserves in bank at 31 December 2021 stood at £32,560.28, which is over the target band, and has now reached the reserve fund level. Major redecoration of the shop interior is being planned for this year which will use some of these reserves.

This year book stalls selling has reduced almost to zero, and footfall in the shop has declined We have a loyal core customer base within the local churches, but with the ongoing trend towards internet shopping, and the change to electronic media for both books and music, there is clear pressure on the shop to compete in the current market place. Our response has been to focus advertising in the local Christian community and to maintain offers from suppliers as they become available. Mrs Lynn Pettersen has increased the shop profile through generating regular social media postings.

The only customer data held is personal contact information provided by customers on placing orders. No computer data bases are held.

The trustees are very grateful to Mr Ionut Boghean who has developed a new website for the shop, which went live in the 3rd week of 2021, having been developed through the final quarter of 2020.

This year the Council applied the 80% charity rates relief from the start of the financial year, however Business Rates were then cancelled for all retail.

Financial review

There is a continued focus on managing overheads effectively and reducing the levels of new stock purchased. We continue to experience unit price inflation on books, with new books often having retail prices well in excess of similar previous publications. The large energy price rises will also considerably increase overheads. Even with the quantity of stock held reducing, and with a considerable withdrawal of older stock, there has only been a small decrease in the value of stock held at the stock take. The target continues to be reducing both the volume of stock and the value of stock held with a view to increasing cash reserves.

Compliance for PCIDSS continues through our card handling company.

5

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GOSPORT CORNERSTONE TRUST

INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS

Report to the trustees of Gosport Cornerstone Trust on the accounts for the year ended 31st December 2021, set out on pages 8 to 15.

Respective responsibilities of trustees and examiner

The organisation's trustees are responsible for the preparation of the accounts. The organisation's trustees consider that an audit is not required for this year (under section 144 of the Charities Act 2011) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for an independent examination, It is my responsibility to:

Basis of independent examiner's statement

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the organisation and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In the course of my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in, any material respect, the trustees have not met the requirements to ensure that:

  2. proper accounting records are kept (in accordance with section 130 of the Act); and

  3. accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or

  4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

..................................................

Kim Gomes MAAT Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

7

GOSPORT CORNERSTONE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021

Notes
Charitable Activities
3a
Other Trading Activities
3b
Income from Investments
3c
TOTAL INCOME
EXPENDITURE ON:
Charitable Activities
4
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds Brought Forward
TOTAL FUNDS CARRIED FORWARD
INCOMING RESOURCES		 Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
1,760
-
1,760
2,040
22,372
-
22,372
30,313
-
-
-
41
24,132
-
24,132
32,394
19,565
-
19,565
24,031
19,565
-
19,565
24,031
4,567
-
4,567
8,363
4,567
-
4,567
8,363
75,609
-
75,609
67,246
80,176
-
80,176
75,609

Movements on all reserves and all recognised gains and losses are shown above.

The notes on pages 10 to 15 form part of these financial statements.

8

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GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of Preparation

The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)).

The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.

Income

Recognition of Income

These are included in the Statement of Financial Activities (SOFA) when:

the charity becomes entitled to the resources;

the trustees believe it is probable they will receive the resources; and

the monetary value can be measured with sufficient reliability

Income with Related Expenditure

Where income has related expenditure (as with fundraising or contract income) the income and related expenditure are reported gross in the SOFA.

Grants and Donations

Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the income.

Tax Reclaims on Donations and Gifts

Income from tax reclaims are included in the SOFA during the same period as the gift to which they relate.

Contractual Income and Performance Related Grants

This is only included in the SOFA once the related goods or services has been delivered.

Gifts in Kind

Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as income when receivable.

Donated Services and Facilities

These are only included in income (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.

Volunteer Help

The value of any voluntary help received is not included in the accounts but is described in the trustees' annual report.

10

GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

Investment Income

This is included in the accounts when receivable.

Investment Gains and Losses

This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

Expenditure and Liabilities

Liability Recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Governance Costs

Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters.

Grants with Performance Conditions

Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.

Grants Payable Without Performance Conditions

These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.

Assets

Tangible Fixed Assets

These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the charity on receipt.

Depreciation is calculated at a rate to write off the cost of tangible fixed assets basis over their estimated useful lives. The rates applied per annum are as follows:

er annum are as follows:
Fixtures and Fittings 20%
Equipment 20%
Motor Vehicles 20%

No depreciation is charged to freehold property (land and buildings) as the property is maintained to such a standard that the estimated residual value is not less than cost.

Stocks and work in progress

Stocks held for sale as part of non-charitable trade are measured at the lower or cost or net realisable value.

11

GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

2. TANGIBLE FIXED
Notes
ASSETS
Cost
01-Jan-21
Additions
Disposals
Cost at
31-Dec-21
Depreciation
01-Jan-21
Charge
Disposal
Depreciation at
31-Dec-21
Net Book Value
31-Dec-21
Net Book Value
31-Dec-20		 Land &
Fixtures, Fittings
Motor
Total
Buildings
& Equipment
Vehicles
£
£
£
£
17,053
9,498
-
26,551
-
-
17,053
9,498
-
26,551
-
9,273
-
9,273
113
113
-
-
9,386
-
9,386
17,053
112
-
17,165
17,053
225
-
17,278

The annual commitments under non-cancelling operating leases and capital commitments are as follows:

31st December 2021: None 31st December 2020: None

3. INCOME FROM:
Notes
a) Charitable Activities
Rental income
b) Other Trading Activities
Shop Trading Income
Amazon Income
Small business grant
Other
c) Income from Investments
Bank Interest		 Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
1,760
-
1,760
2,040
1,760
-
1,760
2,040
22,287
-
22,287
18,985
-
-
-
1,328
-
-
-
10,000
85
-
85
-
22,372
-
22,372
30,313
-
-
-
41
-
-
-
41

12

GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

4. EXPENDITURE
Notes
Expenditure on Charitable Activities
Cost of Goods for Trading
Amazon Fees
Advertising and Publicity
Staff Costs
9
Bank charges
IT Expenses
Depreciation
Equipment
Insurance
Licences and Subscriptions
Light and Heat
Travel Costs
Printing, Postage and Stationery
Rates
Repairs and Maintenance
Sundry items
Telephone
Governance Costs
Independent Examiner's Fee
5. CASH AT BANK AND IN HAND
Cash at bank and in hand		 Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
11,777
-
11,777
14,499
528
-
528
665
-
-
-
5
1,940
-
1,940
2,253
400
-
400
316
20
-
20
140
113
-
113
767
-
-
-
-
1,080
-
1,080
1,013
392
-
392
357
1,631
-
1,631
1,732
-
-
-
4
96
-
96
858
274
-
274
52
227
-
227
352
103
-
103
151
264
-
264
297
720
-
720
570
19,565
-
19,565
24,031
Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
32,727
-
32,727
29,323
32,727
-
32,727
29,323

13

GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

6. STOCKS
Opening stock
Purchases
less Cost of Goods Sold
Closing Stock		 £
30,730
12,791
43,521
11,777
31,744
Stock for Resale		 TOTAL
TOTAL
2021
2020
£
£
30,730
33,774
12,791
11,455
43,521
45,229
11,777
14,499
31,744
30,730

7. DEBTORS & PREPAYMENTS

Trade Debtors
Taxation Debtors
Prepayments		 Unrestricted
Restricted
Total
Total
Fund
Fund
2021
31-Dec-20
£
£
£
£
389
-
389
-
-
-
-
-
-
-
-
-
389
-
389
-

8. CREDITORS, ACCRUALS AND DEFERRED INCOME: AMOUNTS DUE WITHIN ONE YEAR

Trade Creditors
Taxation Creditors
Accrual: Independent Examiner's Fees
Other Accruals		 Unrestricted
Restricted
Total
Total
Fund
Fund
2021
31-Dec-20
£
£
£
£
569
-
569
531
560
-
560
621
720
-
720
570
-
-
-
-
1,849
-
1,849
1,722

14

GOSPORT CORNERSTONE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

9. ANALYSIS OF EMPLOYMENT COSTS

Gross Wages and Salaries
Employer's National Insurance Costs
Pension Contributions		 2021
£
1,940
-
-
1,940		 2020
£
2,253
-
-
2,253

The average number of employees who were engaged in each of the following activities:

2021 2020
TOTAL TOTAL
Charitable activities 1 1

No employees received emoluments in excess of £60,000.

10. TRUSTEES AND OTHER RELATED PARTIES

No payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.

11. RISK ASSESSMENT

The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

12. RESERVES POLICY

The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.

13. PUBLIC BENEFIT

The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

15