ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
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 on the Accounts Page 8 Statement of Financial Activities Page 9 Balance Sheet Pages 10 to 15 Notes to the Accounts
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GOSPORT CORNERSTONE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY NUMBER
282517
START OF FINANCIAL YEAR END OF FINANCIAL YEAR
1st January 2023 31st December 2023
TRUSTEES 31ST DECEMBER 2023
Mr C R Atkinson (Chair) Ms L Pettersen Mr B H Cossins
New Trustees are appointed by the existing Trustees.
LEGAL STATUS
Unincorporated Charity
GOVERNING INSTRUMENT
Declaration of Trust dated 14th April 1981, amended 20th
OBJECTS
To advance the Christian Religion.
CORRESPONDENCE ADDRESS
Cornerstone Books 9 Bemisters Lane Gosport Hampshire PO12 1HB
PRIMARY BANKERS
Santander UK Plc 128 High St Gosport PO12 1DT
INDEPENDENT EXAMINER
Lomax Pavey Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
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GOSPORT CORNERSTONE TRUST
TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023
The trustees present their report and accounts for the year ended 31 December 2023.
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 shop managed a full years trading this year. Trading was down on the previous year, footfall is reduced, and the age profile of our customers is heavily biased towards older customers. Gosport town centre is very run down, with a large number of empty retail units. The council’s decision to allow 1 hour free parking in council carparks does make the shop more accessible. Our trading pattern showed peaks in trading at Easter and Christmas.
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. Costs have increased with the change of electricity contracts and the need to subscribe to a more advanced version of QuickBooks for bookkeeping. We continue to qualify for 80% reduction in Business Rates from Gosport Borough Council. Cedaroak have paid their full rent for the year, now that they have a new contingent of trained and enthusiastic volunteers.
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GOSPORT CORNERSTONE TRUST
TRUSTEES REPORT(continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
The trading pattern for year 2023 was down on 2022. Quarter 1 showed a slight increase in takings, Quarters 2 and 3 were reduced, which may have been a distorting affect of CTiG ticket sales in 2022.The final quarter showed improved early sales but a drop of in the crucial few weeks before Christmas. This could well have been a cooling effect of the cost of living pressures in the economy. 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 a small increase in stock value, with an overall holding of about £49,000 gross, on annual shop sales of £25,000, 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 continued 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 adjusted their policy of building up a reserve fund of £20,000 over the next 3 years, to £25000 to account for inflation, to be in a place to cover the cost of any future repairs needed to the flat roof. A survey of the existing flat roof shows it to be in good overall condition. The shop floor area had a full redecoration in the summer. The level of reserves in bank at 31 December 2023 stood at £35,261.98, which is inside the target band. Replacement of the shop lighting system has been completed and the large cd rack disposed of, which has opened up some space on the sales floor.
This year saw one active book stall at Christchurch, which brought in additional income. 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.
This year the Council applied the 80% charity rates relief from the start of the financial year.
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. New energy contracts have been put in place, which have not been as extreme as first feared, but have increased energy costs by about 30%. Even with the quantity of stock held reducing, and with a considerable withdrawal of older stock, there has been a small increase 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.
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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 2023, 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:
examine the accounts (under section 145 of the Act,),
-
to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the Act, as amended), and
-
to state whether particular matters have come to my attention.
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:
-
which gives me reasonable cause to believe that in, any material respect, the trustees have not met the requirements to ensure that:
-
proper accounting records are kept (in accordance with section 130 of the Act); and
-
accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or
-
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
.................................................................................
Lomax Pavey Independent Examiners Ltd Unit 2
The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
17th July 2024
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GOSPORT CORNERSTONE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023
| Notes INCOMING RESOURCES 3 TOTAL INCOME EXPENDITURE ON: 4 TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total Funds Brought Forward Opening Balance Adjustment 11 TOTAL FUNDS CARRIED FORWARD |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2023 2022 £ £ £ £ 25,592 - 25,592 41,583 |
|---|---|
| 25,592 - 25,592 41,583 |
|
| 26,443 - 26,443 40,227 |
|
| 26,443 - 26,443 40,227 |
|
| (850) - (850) 1,356 |
|
| (850) - (850) 1,356 |
|
| - - - - 81,532 - 81,532 80,176 616 616 - |
|
| 81,298 - 81,298 81,532 |
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.
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GOSPORT CORR$fo TRUST AS AT 31sr DECEPM 2023 Unrestrrted Furd5 ¥1.D•c.23 31.D•c.22 T•tsl Furds N(xes TarE1bAwts 17.053 17M53 17M53 Stocks DebtsS Pa)yneDts CA5hat Bank and inHaTh 30,053 30.053 3115 81 35.471 35.471 66.278 Cx•dlknramtrJntsfallirg duewithince>tal 2239 2239 1.799 6424M 64244 64A78 TOTALASSEfsie5Scurrentlb11ry 41.29• 11.298 11.532 Fund$th•Ch1ty GE&sFUJS RAsfricted Fut# 81298 81298 81532 Then•501 yge5 10to151¢ym pwrt (ItheI•rIlt•ts. aTityLawré9uil41thTrLtstèÈstoppaI•Iinancl31statm•S1ttaChflan¢llaTwh1chcornPWiththe re9LIath$Setc Inthe Ch8ntie5kn2011.TheTtU5toes fvaveeted totake4dwntJgedthe pr¢m5w5thatapptO5ffla1lChallts#Nd haprnparod a ftécéipts and Pbith¢rtsPLctrJntand Ststtmentdknetsath4 Lkibi1eslicharesetc LnPa9e5 Band g. pprthed bytheTruSteeson....... ..... .. 2..4...................................................................... s9nedCffjtrbehaffbYMrcRAk7 &9natwe'.
GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
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.
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GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
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:
| 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.
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GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
| 2. TANGIBLE FIXED Notes ASSETS Cost 01-Jan-23 Additions Disposals Cost at 31-Dec-23 Depreciation 01-Jan-23 Charge Disposal Depreciation at 31-Dec-23 Net Book Value 31-Dec-23 Net Book Value 31-Dec-22 |
Land & Fixtures, Fittings Motor Total Buildings & Equipment Vehicles £ £ £ £ 17,053 9,386 - 26,439 - - |
|---|---|
| 17,053 9,386 - 26,439 |
|
| - 9,386 - 9,386 - - - |
|
| - 9,386 - 9,386 |
|
| 17,053 - - 17,053 |
|
| 17,053 - - 17,053 |
The annual commitments under non-cancelling operating leases and capital commitments are as follows:
31st December 2023: None 31st December 2022: None
| 3. INCOME FROM: Notes Office Let Income Shop Trading Income Other Income |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2023 2022 £ £ £ £ 170 - 170 1,271 25,209 - 25,209 40,056 213 - 213 256 |
|---|---|
| 25,592 - 25,592 41,583 |
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GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
| 4. EXPENDITURE Notes Expenditure on Charitable Activities Cost of Goods for Trading Amazon Fees Advertising and Promotion Cash Expenses Comestibles Staff Costs 9 Bank charges Computer & Internet Depreciation Charitable Donations Insurance Dues & Subscriptions Utilities Electricity Rent & Rates Office Expenses Repairs and Maintenance Sundry items Telephone Transport Independent Examiner's Fee Other Expenses |
Unrestricted Restricted TOTAL TOTAL Funds Funds 2023 2022 £ £ £ £ 15,178 - 15,178 28,672 - - - 418 23 - 23 - 22 - 22 84 85 - 85 - 3,540 - 3,540 3,120 619 - 619 575 390 - 390 65 - - - 112 - - - 15 1,223 - 1,223 1,128 777 - 777 384 481 - 481 2,156 1,428 - 1,428 - 748 - 748 942 465 - 465 237 501 - 501 1,363 - - - 31 - - - 273 31 - 31 - 870 - 870 650 63 - 63 - |
|---|---|
| 26,443 - 26,443 40,227 |
| 5. CASH AT BANK AND IN HAND Current Account Savings Account Cash in Hand |
Unrestricted Restricted Total Total Fund Fund 31-Dec-23 31-Dec-22 £ £ £ £ 13,963 - 13,963 12,873 21,326 - 21,326 21,138 182 - 182 521 |
|---|---|
| 35,471 - 35,471 34,532 |
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GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
| 6. STOCKS Opening stock Purchases less Cost of Goods Sold Closing Stock |
Stock for Resale £ 31,665 13,566 45,231 15,178 30,053 |
TOTAL TOTAL 2023 2022 £ £ 31,665 31,744 13,566 28,593 |
|---|---|---|
| 45,231 60,337 15,178 28,672 |
||
| 30,053 31,665 |
7. DEBTORS & PREPAYMENTS
| Trade Debtors Overpayment Held On Account |
Unrestricted Restricted Total Total Fund Fund 2023 31-Dec-22 £ £ £ £ - - - 81 960 - 960 - |
|---|---|
| 960 - 960 81 |
8. CREDITORS, ACCRUALS AND DEFERRED INCOME: AMOUNTS DUE WITHIN ONE YEAR
| Accounts Payable Taxation Creditors Independent Examiner's Fees |
Unrestricted Restricted Total Total Fund Fund 2023 31-Dec-22 £ £ £ £ 890 - 890 504 479 - 479 645 870 - 870 650 |
|---|---|
| 2,239 - 2,239 1,799 |
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GOSPORT CORNERSTONE TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023
9. ANALYSIS OF EMPLOYMENT COSTS
| Gross Wages and Salaries | 2023 £ 3,540 3,540 |
2022 £ 3,120 |
|---|---|---|
| 3,120 |
The average number of employees who were engaged in each of the following activities:
| 2023 | 2022 | |
|---|---|---|
| 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. OPENING BALANCE ADJUSTMENT
Two adjustments to the opening balances were necessary on the balance sheet due to a clerical error in the prior year. First, a credit balance (overpayment) held by a utility company amounting to £1,034 was not recorded in the previous year’s accounts. Second, the cash in hand, which should have been reported as £104 at year-end, was overstated by £417 due to a clerical error. These discrepancies arose partly due to the charity's transition from desktop accounting software to a cloud-based accounting system.
| Tangible Fixed Assets Cash in Hand Stock Debtors Creditors Total |
Balance at Balance at 31.12.22 31.12.22 Adjustment As Recalculated £ £ £ 17,053 - 17,053 34,532 (417) 34,115 31,665 - 31,665 81 - 81 (1,799) 1,033 (766) As originally calculated |
|---|---|
| 81,532 616 82,148 |
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