# **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 2 ## **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 3 ## **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. 4 ## **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. 5 TRusfEES REPORT{condrn￿) FOR ThEYEAR EhK)ED 315r DECEhW 2023 The tA￿t*S act￿*1Y the mèiu nsks wh￿￿the chJrityfJce5 (￿a bd16￿ that mèintawling the1￿ rtsern*sstated. ccrfnbined with theannty31revewdthe c¢wrtrd5rMr keyfIr￿￿￿1 ￿5￿sCarriEd anat*M￿l basispr￿mIe S￿rI¢￿treX￿rCes inthe *+entdad%*￿eCWdl1O￿Th91w•e5 9x3fflir￿d{*jV￿r Wh￿h9￿9 #tr￿ and fair tk*stat• affairsdthetnthand clthesu￿IU5￿1helrn*fl￿thal pwKvJ.knprepariry knfThincK4lstgteMfjtrt5tl*tt￿aTèIÈq￿rÉ￿t Sele£tSUitab￿acC￿ aPP￿theM((l￿1eQfy make1￿19em￿ts3rd ￿Kn￿re5th￿t9rereJs1YWb￿ar￿ pwdent Pruparefinaf￿￿1stst￿rnèrrtS￿&￿s￿ t(rt*mba$tsun*sit ts mPpKpriate￿p￿Ur￿thafIhetDJ5I wllcoiinue The trustees a￿ re8p¢wi5ib￿ fry keeping prq)¢r •c¢wnting rKtyd$. which diyclrA• with rnttyonDbl• accutacy •t anytimE the pQ5it1￿ d the trust. They resp￿￿ble salqg￿￿rd1rt9 thv trttst and hence fQrtakW￿ reascrnble steps fty the det0cLi(￿dfrd￿ ar￿ (thFT1rlty￿a[1tI* pprth& byt￿T￿￿........... ... .................. ... .......... ... ........ .. Sgwd ￿t￿￿rb¢hè￿by￿rcftAlk￿w) &gll•turw. ## **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: 1. 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 2. 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 7 ## **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. 8 GOSPORT COR￿R$fo￿ TRUST AS AT 31sr DECEPM 2023 Unrestrrted Furd5 ¥1.D•c.23 31.D•c.22 T•tsl Furds N(xes TarE1b￿Awts 17.053 17M53 17M53 Stocks Debt￿sS ￿Pa)yneDts CA5hat Bank and inHaTh 30,053 30.053 311￿5 81 35.471 35.471 66.278 Cx•dlknr*amtrJntsfallirg duewithinc￿e>tal 2239 2239 1.799 6424M 64244 64A78 TOTALASSEfsie5Scurrentl￿b11ry 41.29• 11.298 11.532 Fund$￿th•Ch￿1ty GE￿&sFU￿￿JS RAsfricted Fut￿# 81298 81298 81532 Then￿•501 yge5 10to151¢ym pwrt (Ithe￿I￿•￿rI￿l*￿t￿•￿ts. aTityLawré9uil41thTrLtstèÈstop￿paI•Iinancl31stat*m•￿S1tt*aChfl￿an¢￿ll￿aTwh1chcornP￿Withthe re9LIath￿$Setc￿ Inthe Ch8ntie5kn2011.TheTtU5toes fvavee*ted totake4dwntJgedthe pr¢m5w5thatapp￿tO5ffla1lChallt￿s#Nd ha*prnparod a ftécéipts and Pbith¢rtsPLctrJntand Ststtmentdknetsath4 Lkibi1￿es￿licharesetc￿ LnPa9e5 Band g. pprthed bytheTruSteeson....... ..... .. 2..4...................................................................... s9nedCffjt￿rbehaffbYMrcRAk￿￿7 &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. 10 ## **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. 11 ## **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**| 12 ## **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**| 13 ## **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**| 14 ## **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**| 15