**REGISTERED CHARITY NUMBER: 326157**
## **PRECIOUS SEED**
**REPORT OF THE TRUSTEES AND**
## **UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2020**
**PRECIOUS SEED**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 3|
|**Independent Examiner's Report**|4|
|**Statement of Financial Activities**|5|
|**Statement of Financial Position**|6|
|**Notes to the Financial Statements**|7 to 12|
|**Detailed Statement of Financial Activities**|13|
## **PRECIOUS SEED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of 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 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
Under its Trust Deed, the purposes of Precious Seed are the furtherance of Christianity by the publication of literature, books and electronic media of all kinds. Through the financial support it receives, Precious Seed seeks to further the Christian faith by the publication of literature, books and electronic media of various kinds.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
During the year to 31 August 2020, expenditure exceeded income by £26,461 (2019 - income exceeded expenditure by £43,582).
The full colour magazine continues to be published regularly each quarter and is distributed free throughout the world with spare copies being sent to Zambia. New devotional and doctrinal book titles continue to be published along with other literature as well as the development of an App and E-books and other digital resources.
The trustees are aware of the guidance of the Charity Commission on Public Benefit and have acted accordingly, including the donation of 500+ books in stock for Christian workers to use in their service both in the UK and abroad.
We have supported requests for the translation and use of our materials into Romanian including contributing towards the cost of this. We have also supported the translation of one of our publications for Indian/Sri Lankan Christians. Extra magazines are, as always, donated to Christians in Africa.
We worked with a member of the prison chaplaincy team in editing and printing his book for prisoners. Forty copies were provided free to every prison in England, with further copies provided free to SASRA for work with Her Majesty's forces. These have proved most helpful, particularly when many prisons have imposed movement restrictions because of the pandemic.
The many expressions of appreciation received are evident witness to the benefits, spiritual and otherwise, of the work and support of Precious Seed, especially in a year when usual church activities have been limited.
## **Investment performance**
The Charity's only investments are in the form of cash held at bank which have earned the set rate of interest.
## **FINANCIAL REVIEW**
## **Reserves policy**
The trustees have formulated a reserves policy taking into account the need to cover fluctuations in income, current liabilities and unplanned expenditure. The minimum reserves follow the principle adopted by the founding trustees, which was to develop the objectives of the trust rather than seek financial security. At the year-end reserves shown in the balance sheet as represented by net current assets cover approximately 18-24 months running costs which the trustees believe to be necessary when planning for future publications.
The trustees are pleased again to place on record the faithfulness of the Lord in providing all funds received. All income was from the Lord's people, Christian trusts and Charities.
The trustees have reviewed the charity operations in view of the ongoing Covid-19 pandemic and have noted that whilst not significant, there has been some impact due to restrictions on how churches are able to operate.
Page 1
## **PRECIOUS SEED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020**
## **FUTURE PLANS**
The ongoing work of publishing the magazine and new book titles along with the development of the App, Website and other digital resources will continue in so far as finances allow.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
Precious Seed was established by Trust Deed in 1945 and is administered by a body of trustees whose names are set out below. The trustees meet quarterly to consider how the charity can fulfil its purpose. At other times the trustees are in regular communication with each other regarding needs, development etc.
## **Recruitment and appointment of new trustees**
The trustees are aware of the need for new trustees and will arrange for others to join them as and when necessary. All new trustees are fully informed regarding the purpose of the charity, its finances and operations and all actively contribute to the work of the charity.
## **Organisational structure**
All the trustees are volunteers and there are various roles assigned ranging from specific responsibilities for parts of the magazine or publications to the 'executive committee' of Chairman, Secretary and Treasurer who take a lead in the day to day running of the charity.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
326157
## **Principal address**
PO Box 10544 Grantham NG31 0HW
## **Trustees**
J W Bennett - Chairman M Buckeridge - Treasurer J Scarsbrook - Secretary A Jack R Collings – retired 30 June 2020 K Totton S Sherwin S G Baker B R Clatworthy J Black F A Proudlock A Dutton – appointed 18 January 2020 T Merriman – appointed 4 July 2020
## **Independent Examiner**
C Newitt BA(Hons) FCCA Duncan & Toplis Limited 5 Resolution Close Endeavour Park Boston Lincolnshire PE21 7TT
Page 2
## **PRECIOUS SEED**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020**
Approved by order of the board of trustees on 12 May 2021 and signed on its behalf by:
M Buckeridge - Trustee and Treasurer
Page 3
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRECIOUS SEED**
## **Independent examiner's report to the trustees of Precious Seed**
I report to the charity trustees on my examination of the accounts of Precious Seed (the Trust) for the year ended 31 August 2020.
## **Responsibilities and basis of report**
As the charity trustees of the 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 Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all 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 the 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 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.
C Newitt BA(Hons) FCCA Duncan & Toplis Limited 5 Resolution Close Endeavour Park Boston Lincolnshire PE21 7TT
Date: 10 June 2021
Page 4
## **PRECIOUS SEED**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020**
|2020
Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
39,998
**Charitable activities**
Publication sales
8,884
Calendars
-
Decapolis Press
7,759
Investment income
3
32
Other income
556
**Total**
57,229
**EXPENDITURE ON**
**Charitable activities**
Publication sales
11,942
Magazine printing and distribution costs
61,828
Calendars
-
Decapolis Press
8,162
Other
1,758
**Total**
83,690
**NET INCOME/(EXPENDITURE)**
(26,461)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
168,018
**TOTAL FUNDS CARRIED FORWARD**
141,557|2019
Total
funds
£
112,422
7,662
7,659
-
48
90|
|---|---|
||127,881
11,255
56,445
14,339
477
1,783|
||84,299|
||43,582
124,436|
||168,018|
The notes form part of these financial statements
Page 5
## **PRECIOUS SEED**
## **STATEMENT OF FINANCIAL POSITION 31 AUGUST 2020**
|2020
Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
6
912
**CURRENT ASSETS**
Stocks
7
3,658
Debtors
8
1,662
Cash at bank
138,299
143,619
**CREDITORS**
Amounts falling due within one year
9
(2,974)
**NET CURRENT ASSETS**
140,645
**TOTAL ASSETS LESS CURRENT LIABILITIES**
141,557
**NET ASSETS**
141,557
**FUNDS**
10
Unrestricted funds
141,557
**TOTAL FUNDS**
141,557|2019
Total
funds
£
1,459
3,625
1,379
164,901
169,905
(3,346)
166,559
168,018
168,018
168,018
168,018|
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 12 May 2021 and were signed on its behalf by:
J W Bennett - Trustee
M Buckeridge - Trustee
The notes form part of these financial statements
Page 6
## **PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **1. STATUTORY INFORMATION**
Precious Seed is an unincorporated charity, registered in England and Wales. The charity's registered number and principal office address can be found on the Charity Commission website.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The financial statements are presented in pound sterling (£) which is the functional currency of the charity.
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared on a going concern basis.
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 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) issued 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.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations in kind are included based on the cost of the service or product donated to the charity.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - at varying rates on cost
Assets are held at cost less depreciation.
## **Stocks**
Stocks are valued at the lower of cost and estimated selling price, Provision is made for obsolete and slow moving stock.
continued...
Page 7
## **PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. ACCOUNTING POLICIES - continued**
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Debtors and creditors**
Debtors and creditors are stated at the cost of the transaction.
## **3. INVESTMENT INCOME**
|**INVESTMENT INCOME**|||
|---|---|---|
||2020|2019|
||£|£|
|Deposit account interest|32|48|
## **4. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**||
|---|---|
||Unrestricted|
||fund|
||£|
|**INCOME AND ENDOWMENTS FROM**||
|Donations and legacies|112,422|
|**Charitable activities**||
|Publication sales|7,662|
|Calendars|7,659|
|Investment income|48|
|Other income|90|
|**Total**|127,881|
|**EXPENDITURE ON**||
|**Charitable activities**||
|Publication sales|11,255|
|Magazine printing and distribution costs|56,445|
|Calendars|14,339|
|Decapolis Press|477|
|Other|1,783|
|**Total**|84,299|
continued...
Page 8
## **PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020**
|**5.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**6.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 September 2019 and 31 August 2020
**DEPRECIATION**
At 1 September 2019
Charge for year
At 31 August 2020
**NET BOOK VALUE**
At 31 August 2020
At 31 August 2019
**7.**
**STOCKS**
Stocks|Unrestricted
fund
£
43,582
124,436
168,018
Computer
equipment
£
1,792
333
547
880
912
1,459
2020
2019
£
£
3,658
3,625|
|---|---|
continued...
Page 9
**PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020**
|**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
Prepayments
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors
**10.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.9.19
£
168,018
168,018
Incoming
resources
£
57,229
57,229
At 1.9.18
£
124,436
124,436|2020
2019
£
£
444
285
1,218
1,094
1,662
1,379
2020
2019
£
£
2,974
3,346
Net
movement
At
in funds
31.8.20
£
£
(26,461)
141,557
(26,461)
141,557
Resources
Movement
expended
in funds
£
£
(83,690)
(26,461)
(83,690)
(26,461)
Net
movement
At
in funds
31.8.19
£
£
43,582
168,018
43,582
168,018|
|---|---|---|
continued...
Page 10
## **PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020**
## **10. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
127,881
127,881|Resources
Movement
expended
in funds
£
£
(84,299)
43,582
(84,299)
43,582|
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.9.18
£
124,436
124,436|Net
movement
in funds
£
17,121
17,121|At
31.8.20
£
141,557
141,557|
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
||Incoming|Resources|Movement|
|---|---|---|---|
||resources|expended|in funds|
||£|£|£|
|**Unrestricted funds**||||
|General fund|185,110|(167,989)|17,121|
|**TOTAL FUNDS**|185,110|(167,989)|17,121|
## **11. RELATED PARTY DISCLOSURES**
During the year Mr. S Sherwin, a Trustee of the charity, provided insurance through his own insurance brokering business at a cost £1,020 for which he made no charge to the charity. In addition, he also personally paid for the costs of the App at a cost of £540. These amounts are included within donations.
continued...
Page 11
## **PRECIOUS SEED**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020**
## **12. INDEPENDENT EXAMINER**
The independent examination fee included in the accounts inclusive of VAT is £1,836 (2019 - £1,860).
Page 12
## **PRECIOUS SEED**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Investment income**
Deposit account interest
**Charitable activities**
Publications
Calendars
Publications - Decapolis Press
**Other income**
Other
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Printing and design service - calendars
Magazine expenditure
Publications expenditure
Publications expenditure - Decapolis Press
Computer equipment
**Other**
Administration
**Support costs**
**Finance**
Bank charges
**Information technology**
Bad debt
Total resources expended
**Net (expenditure)/income**|2020
£
39,998
32
8,884
-
7,759
16,643
556
57,229
-
61,169
11,246
8,162
547
81,124
1,758
751
57
83,690
(26,461)|2019
£
112,422
48
7,662
7,659
-
15,321
90
127,881
14,339
55,901
11,071
477
309
82,097
1,783
419
-
84,299
43,582|
|---|---|---|
This page does not form part of the statutory financial statements
Page 13