Annual Report and Financial Statements for the Year Ended 31 January 2021
## Grace Publications Trust
Charity registration number: 285237
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
## **GRACE PUBLICATIONS TRUST**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 14|
## **GRACE PUBLICATIONS TRUST**
## **Reference and Administrative Details**
**Trustees** M M Stolarski M D Smith J T McDonald A Shrimpton M Taylor P Tervet J Keble M Adams (appointed 22 October 2020) R Tibbs (appointed 22 October 2020) **Principal Office** 7 Arlington Way London EC1R 1XA **Charity Registration** 285237 **Number Independent Examiner** G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
Page 1
## **GRACE PUBLICATIONS TRUST**
## **Trustees' Report**
The Trustees present the annual report together with the financial statements of the charity for the year ended 31 January 2021.
## **Structure, governance and management**
## _**Nature of governing document**_
Grace Publications Trust is a registered charity, number 285237, and is constituted under a Trust deed.
## _**Organisational structure**_
The charity has a management committee who are elected/re-elected annually at the AGM. The management committee is made up of up to 15 members elected for their expertise and meets around three times per year to direct the work of the charity.
The charity has formulated, agreed and implemented policies in relation to privacy (GDPR), reserves, investments and risk assessment.
## _**Risk management**_
The Trustees have assessed the major risks 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 exposure to the major risks.
## **Objectives and activities**
## _**Objects and aims**_
The principal object of the charity is to promote the better knowledge and understanding of the doctriness of the the Christian faith as expressed in the London Confession of Faith 1689 and the Strict Baptist Affirmation of Faith 1966 and to do all such lawful things as are incidental or conducive to the attainment of these objects.
## _**Public benefit**_
The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
Once again we thank God for enabling the charity to continue its work of publishing Christian literature.
The chief publishing activity during the year was in relation to "Who stole Christmas?" All 9,000 copies printed were sold during the year via Day One Christian Ministries.
Work was undertaken on "Children of Abraham" with a view to publication after the year end.
Page 2
## **GRACE PUBLICATIONS TRUST**
## **Trustees' Report**
Christian Classics "An Alarm to the Unconverted" (Joseph Alleine) and "The Return of Prayers" (Thomas Goodwin) were co-published with Christian Focus Publications in January 2021.
After the year end, a book entitled "What a Comeback!" was produced. There was an increased level of activity on publications, including a second edition of "Pure Church".
The committee met four times during the year (once in person and three times via Zoom) for ordinary meetings and once in October 2020 (also via Zoom) for the Annual General Meeting. Long-serving members of the management committee, Mike Adams and Ray Tibbs, were appointed Trustees on 22 October 2020.
The charity continued to publish Geneva Bible Notes, with distribution handled by Gospel Cards, etc .
We give thanks to the Lord for the faithful service of all committee members, and for those who assist the charity in editing and proof-reading manuscripts.
## _**Statement re impact of coronavirus COVID-19**_
The coronavirus COVID-19 pandemic has impacted the charity by necessitating the holding of management committee meetings and also the 2020 Annual General Meeting by Zoom. Sales of publications via bookshops have been low; however, sales via Day One Christian Ministries have been most encouraging. The charity enjoys, by God's grace, great financial stability and future prospects are bright.
## **Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation 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.
Page 3
## **GRACE PUBLICATIONS TRUST**
## **Trustees' Report**
## **Statement of Trustees' Responsibilities**
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The Trustees 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.
The annual report was approved by the Trustees of the charity on 15 October 2021 and signed on its behalf by:
MD Smith Trustee
Page 4
## **GRACE PUBLICATIONS TRUST**
## **Independent Examiner's Report to the Trustees of Grace Publications Trust**
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 January 2021 which are set out on pages 6 to 14.
## **Respective responsibilities of Trustees and examiner**
As the charity's Trustees of Grace Publications Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Grace Publications Trust'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 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material 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 Grace Publications Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting 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 .
## .. � ............. .
G W Schulz ACMA
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Basham Chichester West Sussex **P018 8NF**
15 October 2021
Page 5
## **GRACE PUBLICATIONS TRUST**
## **Statement of Financial Activities for the Year Ended 31 January 2021**
|**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
2
-
Charitable activities
3
31,747
Investment income
4
155
Total income
31,902
**Expenditure on:**
Charitable activities
5
20,035
Total expenditure
20,035
Net
income/(expenditure)
11,867
Net movement in funds
11,867
**Reconciliation of funds**
Total funds brought
forward
112,265
Total funds carried
forward
9
124,132|**Restricted**
**funds**
**£**
868
-
-
868
1,218
1,218
(350)
(350)
8,522
8,172|**Total**
**2021**
**£**
868
31,747
155
32,770
21,253
21,253
11,517
11,517
120,787
132,304|**Total**
**2020**
**£**
992
30,025
414|
|---|---|---|---|
||||31,431|
||||23,658|
||||23,658|
||||7,773|
||||7,773
113,014|
||||120,787|
The notes on pages 8 to 14 form an integral part of these financial statements. Page 6
## **GRACE PUBLICATIONS TRUST**
## **Balance Sheet as at 31 January 2021**
|**Current assets**
Stocks
Debtors
Cash at bank and in hand
**Note**
7
**Creditors: Amounts falling due within one year**
8
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
9|**2021**
£
861
12,038
124,405
137,304
(5,000)
132~~,~~304
8,172
124,132
132,304|**2020**
£
976
14,947
111,439
127,362
(6,575)
120,787
8,522
112,265
120,787|
|---|---|---|
The financial statements on pages 6 to 14 were approved by the Trustees, and authorised for issue on 15 October 2021 and signed on their behalf by:
MD Smith Trustee
The notes on pages 8 to 14 form an integral part of these financial statements. Page 7
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Grace Publications Trust 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 notes.
## **Going concern**
The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## _**Gift aid**_
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## _**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 institution with whom the funds are deposited.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Page 8
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Stock**
Stocks 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.
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
## **Liabilities**
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.
Page 9
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **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.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the Trustees' discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the Trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **2 Income from donations and legacies**
|Donations and legacies;
Donations
Gift aid reclaimed|**Restricted**
**funds**
**£**
810
58
868|**Total**
**2021**
**£**
810
58
868|**Total**
**2020**
**£**
950
42|
|---|---|---|---|
||||992|
## **3 Income from charitable activities**
|Sales - General
Subscriptions - Geneva Bible Notes|**Unrestricted**
**funds**
**General**
**£**
16,635
15,112
31,747|**Total**
**2021**
**£**
16,635
15,112
31,747|**Total**
**2020**
**£**
14,802
15,223|
|---|---|---|---|
||||30,025|
Page 10
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **4 Investment income**
|**Unrestricted**
**funds**
**Total**
**General**
**£**
**2021**
**£**
Interest receivable and similar income;
Interest receivable on bank deposits
155
155
**5 Expenditure on charitable activities**
**Unrestricted funds**
**Restricted**
**Total**
**Designated**
**£**
**General**
**£**
**funds**
**£**
**2021**
**£**
Authors, editors &
readers payments
190
2,485
-
2,675
Postage & distribution
-
4,636
-
4,636
Advertising
-
501
-
501
Production & bought-in
costs
-
8,865
1,218
10,083
Postage carriage &
telephone
-
5
-
5
Printing & stationery
-
-
-
-
Bank interest & charges
-
101
-
101
Committee members
expenses
-
327
-
327
Consultancy
-
2,400
-
2,400
Independent
examination
-
525
-
525
190
19,845
1,218
21,253|**Unrestricted**
**funds**
**Total**
**General**
**£**
**2021**
**£**
Interest receivable and similar income;
Interest receivable on bank deposits
155
155
**5 Expenditure on charitable activities**
**Unrestricted funds**
**Restricted**
**Total**
**Designated**
**£**
**General**
**£**
**funds**
**£**
**2021**
**£**
Authors, editors &
readers payments
190
2,485
-
2,675
Postage & distribution
-
4,636
-
4,636
Advertising
-
501
-
501
Production & bought-in
costs
-
8,865
1,218
10,083
Postage carriage &
telephone
-
5
-
5
Printing & stationery
-
-
-
-
Bank interest & charges
-
101
-
101
Committee members
expenses
-
327
-
327
Consultancy
-
2,400
-
2,400
Independent
examination
-
525
-
525
190
19,845
1,218
21,253||**Total**
**2020**
**£**
414|
|---|---|---|---|
||||**Total**
**2020**
**£**
9,101
4,934
1,863
5,914
411
10
65
850
-
510|
||21,253||23,658|
## **6 Trustees remuneration and expenses**
No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
During the year, expenses totalling £295 were reimbursed or paid directly to 4 Trustees (2020 - £761 to 5 Trustees).
Page 11
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **7 Debtors**
|**7 Debtors**|||
|---|---|---|
|Trade debtors
Prepayments
Accrued income
VAT recoverable
Other debtors|**2021**
**£**
2,683
707
100
401
8,147
12,038|**2020**
**£**
1,953
-
42
1,073
11,879|
|||14,947|
## **8 Creditors: amounts falling due within one year**
|**8 Creditors: amounts falling due within one year**|||
|---|---|---|
|Trade creditors
Deferred income|**2021**
**£**
2,375
2,625
5,000|**2020**
**£**
3,628
2,947|
|||6,575|
Page 12
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **9 Funds**
|**Balance at**
**1 February**
**2020**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at**
**31 January**
**2021**
**£**
**Unrestricted funds**
**_General_**
General Funds
110,684
31,902
(19,845)
122,741
**_Designated_**
Writer's fund
1,581
-
(190)
1,391
**Total unrestricted funds**
112,265
31,902
(20,035)
124,132
**Restricted funds**
Book fund
8,522
868
(1,218)
8,172
**Total funds**
120,787
32,770
(21,253)
132,304
**Balance**
**at 1**
**February**
**2019**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance**
**at 31**
**January**
**2020**
**£**
**Unrestricted funds**
**_General_**
General Funds
105,289
30,439
(23,044)
(2,000)
110,684
**_Designated_**
Writer's fund
-
-
(419)
2,000
1,581
**Total unrestricted**
**funds**
105,289
30,439
(23,463)
-
112,265
**Restricted funds**
Book fund
7,725
992
(195)
-
8,522
**Total funds**
113,014
31,431
(23,658)
-
120,787|**Balance at**
**31 January**
**2021**
**£**
122,741
1,391|**Balance at**
**31 January**
**2021**
**£**
122,741
1,391|
|---|---|---|
|||124,132
8,172|
|||132,304|
|||**Balance**
**at 31**
**January**
**2020**
**£**
110,684
1,581|
|||112,265
8,522|
|||120,787|
Page 13
## **GRACE PUBLICATIONS TRUST**
## **Notes to the Financial Statements for the Year Ended 31 January 2021**
## **10 Analysis of net assets between funds**
|Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets|**Unrestricted funds**
**General**
**£**
**Designated**
**£**
127,741
1,391
(5,000)
-
122,741
1,391
**Unrestricted funds**
**General**
**£**
**Designated**
**£**
117,259
1,581
(6,575)
-
110,684
1,581|**Restricted**
**funds**
**£**
8,172
-
8,172
**Restricted**
**funds**
**£**
8,522
-
8,522|**Total funds**
**at 31**
**January**
**2021**
**£**
137,304
(5,000)|
|---|---|---|---|
||||132,304|
||||**Total funds**
**at 31**
**January**
**2020**
**£**
127,362
(6,575)|
||||120,787|
Page 14