**Charity Registration No. 327329**
## **THE PARTNERSHIP TRUST**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **THE PARTNERSHIP TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr P Lancaster|
|---|---|
||Mr R Panek|
||Mrs J Dixon|
||Mr S Bodey|
||Mr J Raby|
|**Charity number**|327329|
|**Principal address**|13 The Oakes|
||Oakes Park|
||Sheffield|
||S8 8BA|
|**Independent examiner**|Grant Wade BA ACA|
||Wells Richardson|
||Cannon House|
||Rutland Road|
||Sheffield|
||South Yorkshire|
||S3 8DP|
|**Bankers**|Lloyds TSB Bank plc|
||65-68 Briggate|
||Leeds|
||LS21 6LH|
## **THE PARTNERSHIP TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7 - 13|
## **THE PARTNERSHIP TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
The trustees present their report and financial statements for the year ended 30 September 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "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**
The charity's object is the furtherance of the Christian religion throughout the world and the support and assistance of those engaged in such activities. There has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission on public benefit when deciding what activities the charity should undertake and in planning future activities. The trustees are also aware of the Charity Commission's guidance on public benefit in the Advancement of Religion for the Public Benefit and have regard to it in carrying out the activities described in the report during the year ended 30 September 2020.
The main area of activity is to provide a means for churches, individuals and other organisations to support mainly independent mission partners relying on voluntary support. The trust also facilitates giving under the Gift Aid scheme. The trust maintains contact with each of its mission partners by keeping them advised of the source of gifts received and the designation of any specific project funding.
Most of the income of the charity is designated for particular projects and is recorded by the charity as restricted funds. Payments are made to the partners concerned on a monthly basis, or when called for. This service has proved to be a valuable aid, particularly to overseas mission partners, in keeping their finances in order.
Each mission partner is allocated a main contact person for the Trust (normally a trustee) and who has a general overview of the partner's project developments. In addition, the trustees receive newsletters, updates and reports from mission partners and the trustees request an annual report from each mission partner on their main activities and events for the past year. This annual summary report is used by the trustees to monitor the application of charitable funding, through the trust, for the specific projects.
## **Achievements and performance**
During the year, two existing partners closed their funds with the trust and no new partners joined the trust. At the year end, there were 23 partners supported through the trust (2019: 25). The trustees continue to monitor activity levels to ensure that the administrative function is not impaired. No financial performance targets are set other than ensuring that the trust maintains adequate unrestricted funds and, in this respect, the trustees are satisfied with the position. Donations received from partners on a regular basis are considered adequate to meet the administrative costs of the charity on an ongoing basis and a review of these donations is carried out annually.
The trust aims to support the work of missions overseas by facilitating the transfer of funds to partners and it has continued to so that, thus achieving its objective.
The trustees intend to continue supporting their partners and others who may wish to partner with us in furthering overseas mission work during the coming year.
Unlike many charities, The Partnership Trust has suffered little impact from the Covid-19 pandemic. Grants to partners depend on donations received and there has been no discernible effect on donations. Trustees have been unable to meet i n person and have agreed to meet virtually.
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## **THE PARTNERSHIP TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **Financial review**
The trustees are aware of the need to maintain sufficient unrestricted reserves to continue the activities of the trust and maintain its solvency. During the year, support from beneficiaries through voluntary contributions was obtained to cover the trust's administrative costs. It is the trustees' policy to ensure that at least six months of salary costs are covered by unrestricted reserves. The charity made a surplus for the year of £3,749 (2019: deficit £3,753). Restricted reserves at 30 September 2020 were £68,797 (2019: £65,100). Unrestricted reserves at 30 September 2020 were £2,791 (2019: £2,739), of which £2,791 were freely available.
It is the policy of the charity 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 funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trust receives bank interest on funds held on deposit. However, the trustees invest on a short term basis as the restricted funds may be called down by the beneficiaries at short notice.
The trustees ha ve assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. They include the following:
1. The risk of failing to fund the administrative function of the charity. The level of donations from partners to cover this function is reviewed annually and is currently considered adequate to cover the costs of administration.
2. The risk of safeguarding problems arising with one of our partners. A rigorous review of policy and practice is carried out.
3. The risk of loss of personal data. A comprehensive policy is in place and is implemented.
## **Structure, governance and management**
The charity is governed by a Declaration of Trust dated 3 October 1986 as amended by a trustees' resolution dated 26 November 2007. It is a registered charity, number 327329.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr P Lancaster
Mr R Panek
Mrs J Dixon Mr S Bodey Mr R Booth (Deceased 2 December 2020) Rev A Chesworth (Resigned 14 October 2019) Mr J Raby
A s a trust, we are open to appointing trustees from all backgrounds who subscribe to the ethos and values of the charity. W hen a vacancy arises in the number of trustees, the trustees, who have a wide number of connections, seek a suitably qualified person with an interest in the objectives of the trust to fill that vacancy. A trustee has been appointed to provide induction and training for all newly appointed trustees. The trust deed specifies a maximum number of seven trustees.
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## **THE PARTNERSHIP TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
The trustees' r eport was approved by the Board of Trustees.
## **Mr S Bodey**
Trustee Dated: 13 May 2021
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## **THE PARTNERSHIP TRUST**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PARTNERSHIP TRUST**
I report to the trustees on my examination of the financial statements of The Partnership Trust (the charity) for the year ended 30 September 2020.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no 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 charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements to be reached.
Grant Wade BA ACA Chartered Accountant Cannon House Rutland Road Sheffield South Yorkshire S3 8DP
Dated: 13 May 2021
- 4 -
## **THE PARTNERSHIP TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
5,122
308,989
Investments
**3**
14
-
**Total income**
5,136
308,989
**Expenditure on:**
Charitable activities
**4**
5,084
305,292
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
52
3,697
Fund balances at 1
October 2019
2,739
65,100
**Fund balances at 30**
**September 2020**
2,791
68,797|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
**£**
**£**
314,111
4,822
280,576
14
14
-
314,125
4,836
280,576
310,376
5,473
283,692
3,749
(637)
(3,116)
67,839
3,376
68,216
71,588
2,739
65,100|Total
2019
**£**
285,398
14
285,412
289,165
(3,753)
71,592
67,839|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 5 -
## **THE PARTNERSHIP TRUST**
## **BALANCE SHEET**
## _**AS AT 30 SEPTEMBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Debtors
**9**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**10**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**11**
Unrestricted funds|**2020**
**£**
20,870
51,784
72,654
(1,166)|**£**
100
71,488
71,588
68,797
2,791
71,588|**2019**
**£**
18,849
50,101
68,950
(1,211)|**£**
100
67,739
67,839
65,100
2,739
67,839|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 13 May 2021
Mr S Bodey **Trustee**
- 6 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
The Partnership Trust is an unincorporated charity registered with the Charities Commission.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
Liabilities are recognised as soon as there is a legal or constructive obligation to pay out resources.
Resources expended are recognised in the year in which they are incurred, are inclusive of irrecoverable VAT, and are analysed as appropriate in the Statement of Financial Activities according to the nature of the expense. No costs are apportioned.
- 7 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
Costs of charitable activities include ministry support payments made in accordance with the restrictions placed on their use and costs incurred in connection with administration of these payments.
Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
30% straight line over 3 years
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand and deposits held at call with banks .
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction c osts.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are recognised at transaction price .
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Taxation**
The charity is not liable to income or capital gains tax on its charitable activities. Irrecoverable VAT is included in the asset cost or expense to which it relates.
- 8 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
## **2 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
-
308,989
Administrative donations
5,122
-
5,122
308,989|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
308,989
-
280,576
5,122
4,822
-
314,111
4,822
280,576|Total
2019
£
280,576
4,822
285,398|
|---|---|---|
## **3 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Interest receivable|14|14|
- 9 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **4 Charitable activities**
|Staff costs
Insurance
Ministry support
Computer and office costs
Bank interest and charges
Legal and professional fees
Administrative donations
Share of governance costs (see note 5)
**Analysis by fund**
Unrestricted funds
Restricted funds
**5**
**Governance costs**
Independent Examiner fees|**2020**
**£**
3,202
595
300,856
154
108
35
4,436
309,386
990
310,376
5,084
305,292
310,376
**2020**
**£**
990|**2019**
**£**
3,711
590
278,890
212
122
35
4,615
288,175
990
289,165
5,473
283,692
289,165
2019
£
990|
|---|---|---|
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
- 10 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **7 Employees**
The charity employs one part-time administrator.
|||**2020**|**2019**|
|---|---|---|---|
|||**Number**|**Number**|
|||1|1|
||**Employment costs**|**2020**|**2019**|
|||**£**|**£**|
||Wages and salaries|3,202|3,711|
|**8**|**Tangible fixed assets**|||
||||**Computers**|
||||**£**|
||**Cost**|||
||At 1 October 2019||1,146|
||At 30 September 2020||1,146|
||**Depreciation and impairment**|||
||At 1 October 2019||1,046|
||At 30 September 2020||1,046|
||**Carrying amount**|||
||At 30 September 2020||100|
||At 30 September 2019||100|
|**9**|**Debtors**|||
|||**2020**|**2019**|
||**Amounts falling due within one year:**|**£**|**£**|
||Other debtors|20,870|18,849|
|**10**|**Creditors: amounts falling due within one year**|||
|||**2020**|**2019**|
|||**£**|**£**|
||Other creditors|176|221|
||Accruals and deferred income|990|990|
|||1,166|1,211|
- 11 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
## **11 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|---|
||**Balance at**||**Incoming**|**Resources**|**Balance at**||**Incoming**|**Resources**|**Balance at**|
||**1 October 2018**||**resources**|**expended**
**1**|**October 2019**||**resources**|**expended**|**30 September**|
||||||||||**2020**|
|||**£**|**£**|**£**||**£**|**£**|**£**|**£**|
|Private||||||||||
|individuals||18,290|171,367|(171,519)||18,138|181,081|(177,854)|
21,365|
|FLAG||1,393|5,815|(7,246)||(38)|6,694|(6,515)|
141|
|Forever||||||||||
|Caring||||||||||
|Homes||200|3,000|(2,313)||887|150|(1,037)|
-|
|GACAH||||||||||
|(Mattuga)||3,272|52,469|(52,447)||3,294|56,866|(54,266)|
5,894|
|India Project||336|3,676|(3,954)||58|2,961|(2,054)|
965|
|Little Voices||||||||||
|Christian||||||||||
|Elementary||||||||||
|Academy||211|13,300|(12,320)||1,191|11,634|(12,215)|
610|
|Mantes La||||||||||
|Jolie||2,964|4,946|(7,415)||495|10,013|(9,819)|
689|
|Mauritius||29|2,813|(2,842)||-|925|(630)|
295|
|Networks||38,487|12,844|(13,765)||37,566|28,125|(28,660)|
37,031|
|New Life||||||||||
|Missions||71|1,810|(1,780)||101|1,405|(1,465)|
41|
|POCM||305|6,061|(5,931)||435|5,814|(5,774)|
475|
|Peru||39|687|(726)||-|1,856|(1,921)|
(65)|
|SEEMA||-|10|-||10|899|(909)|
-|
|Zimbabwe||2,619|1,778|(1,434)||2,963|566|(2,173)|
1,356|
|||68,216|280,576|(283,692)||65,100|308,989|(305,292)|
68,797|
Restricted funds represent funds raised to support independent mission partners relying on voluntary support. In the event that a project does not go ahead, funds may be transferred to other projects with the agreement of the donors.
- 12 -
## **THE PARTNERSHIP TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_
|**12**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 30
September 2020 are
represented by:
Tangible assets
100
-
Current assets/
(liabilities)
2,691
68,797
2,791
68,797|**Total**Unrestricted
funds
Restricted
funds
**2020**
2019
2019
**£**
£
£
100
100
-
71,488
2,632
65,100
71,588
2,732
65,100|Total
2019
£
100
67,739
67,839|
|---|---|---|
## **13 Related party transactions**
No remuneration was paid to any of the trustees.
None of the trustees was reimbursed for any expenses.
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
Trustees donated a total of £5,650 (2019: £1,550) to the charity during the year.
The charity has incurred £297 (2019: £190) of expenditure in respect of Trustees' Indemnity Insurance.
Roland Panek and John Raby are also trustees of the Jainagar Trust. During the year under review, the charity received donations of £57,757 (2019: £58,372) from the Jainagar Trust and other donors of which £57,925 (2019: £60,731) was transferred to the relevant recipients on a monthly basis during the year. These receipts and payments are not reflected in the Statement of Financial Activities of the Partnership Trust. Debtors include an amount of £11,512 (2019: £11,344) due to the relevant recipients.
- 13 -