The Cornerstone Trust, 5 Church Street, Whitehaven, Cumbria. Financial Statements for year ended 31 March 2024 Charity Registration Number 507105
THE CORNERSTONE TRUST Annual Accounts for the ear ended 31 March 2024 Content5 Page Trust Information The Trustees, Report Statements of Trustees, Responsibilities Independent Examiners Report Statement of Financial Actlvities Statement of Financial Position Notes to the Accounts 8-16
THE CORNERSTONE TRUST Page I Le al and Administrative Information Governin Instrument Declaration of Trust dated 11 November 1977 Charity Registration Number 507105 Name of Trustees Rev. Gary Brown Rev. Fergus Pearson Mr Ken Frazer Mrs Suzanne Cooper Committee and Officers Rev. Gary Brown Rev. Fergus Pearson Mrs Suzanne Cooper Mr Ken Frazer Mr Colin Campbell Chairman Secretary Trustee Treasurer Business Manager Address of Trust 5 Church Street Whitehaven Cumbria CA28 7AY Advlsors Bankers Barclays Bank PIC 30 Main Street Cockermouth Cumbria CA139LQ Solicitors Brockbank, Curwen, Cain & Hall 44 Duke Street Whitehaven Cumbria CA28 7RT Independent Examiner lan Scott BA (Honsl, FCA, DChA Saint & Co Chartered Accountants 12/13 Church Street Whitehaven Cumbria CA28 7AY
THE CORNERSTONE TRUST Page 2 The Trustees, Re ort for the ear ended 31 March 2024 The Trustees are pleased to present their report, together with the audited financial statements for the year ended 31 March 2024. The financial Statements have been prepared on the accounting policies set out in note I to the financial statements and comply with the Charity's constitution, applicable law and the requirements of the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 ICh3rities SORP IFRS 1021) and the Charities Act 2011 and administrative information Set out on the previous page, form5 part of this report. The principal activity of the Trust is to operate a Christian Bookshop in Whitehaven with the objective of encouraging the advancement of the Christian faith in West Cumbria. The Trustees are appointed by a resolution of the meeting of Trustees in accordance with the Declaration of Trust and shall not be less than four nor more than six in number. During the past year, the Trust has continued to make available through the Bookshop and website, a wide range of Christian literature to both Cumbria and Nationwide. It provides a comprehensive range of bibles, bible study aids, Christian teaching and devotional books, biography and fiction. Although the website has given us the ability to reach a wider audience, the past year has been disappointing from a Sales point of view. The Business Manager is currently being tasked with seeking improvements on the website, in the hope that it becomes more appealing and easier to use. In addition, the shop stocks greetings cards, compact discs, DVD'S, children's books and suitable giftware. The staff of the shop provide help and advice on the literature and materials available to those seeking information on the Christian faith, A conscious effort is made to provide a caring, personal service to all customers. The Bookshop is now staffed purely by volunteers, and Margaret Frazer now manages the Bookshop as a volunteer, and Caroline still volunteers one day each week in the Bookshop. The opening hours are 10am to 2pm Monday to Saturday, except Wednesday which is now 10am to Ipm, The Trustees report that the distribution of Christian literature through the Bookshop and website has continued, with a turnover of £28,315,00, a decrease of l.l% over the previous year. The gross profit was 35.1% of turnover and administrative expenses 46% of turnover. The trading loss for the year of £3,065,00 is mainly due to not achieving the turnover required to break even, which on our current cost base is approximatelv £38,000.00 per annum. We are still striving to achieve more business in the coming year from our website, together with a greater response from our churches. The website represented 5.4% of turnover in 202212023 and increased to 8.1% in 2023/2024. We are looking to increase website sales in the future, to nearer 15% of turnover. Both website and church response are imperative if the Bookshop is to survive. There were unrealised investment losses of £133.00 lin 2023 this was a loss of £823.00). Friends of Cornerstone continued to support the Bookshop with donations of £2,688.00 for the year. The Trust account also benefitted from payment of Gift Aid claimed for the last year, which amounts to £465.00. We will continue to promote Friends of Cornerstone and target increases during 202412025. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. The Trustees consider the Board of the Trustees and the shop manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give up their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in Note 3 to the Accounts. The pay of the charity's manager is reviewed annually and assessed in accordance with average earnings. The remuneration is also bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
THE CORNERSTONE TRUST Page 3 Reserves policy It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to about twelve months unrestricted expenditure plus an allowance for any forecast shortfall on project expenditure. This provides sufficient funds to cover management and administration and support costs. At 31. March 2024, the charity had reserves of £58,123. Risk Management The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen the risks.
THE CORNERSTONE TRUST Page 4 The Trustees, Re ort for the ear ended 31 March 2024 Ststement of Trustees, Responsibilities The Charities Act 2011 together with the Trust Deed, require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust as at the balance sheet date and of its financial activities for the year then ended. In preparing those financial statements, the Trustees are required to select suitable accounting policies and then apply them conslstently; make judgements and estimates that are reasonable and prudent,. state whether the policies adopted are in accordance with the appropriate SORP on accounting bv Charities and the Accounting Regulations and with applicable accounting standards, subject to any material departures disclosed and explained; iv) prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Trust will continue in business. The Trustees are responsible for keeping proper books of account such as are necessary to give a true and fair view of the Trust's state of affairs and to explain its financial transactions. The Trustees must also establish and maintain a satisfactory system of control of its books of account, its cash holding5 and all its receipts and remittances, and hence are responsible for safeguarding the assets and taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit information of which the charity's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Gary Brown Signed by the following on the ayof 2025 Reverend Gary Brown, Chairman
THE CORNERSTONE TRUST Page 5 INDEPENDENT EXAMINERS REPORT TO THE TRUSTES OF THE CORNERSTONE TRUST YEAR ENDED 31 MARCH 2024 I report on the accounts of the charity for the year ended 31 March 2024 set out on pages 6 to 16. Respertive Responsiblllties of Trustees and Independent Examlner The charity's trustees are responsible for the preparation of the accounts. The charities trustees consider that an audit is not required for this year (under section 144 {21 of the Charities Act 2011 (the 2011 Act), and that an independent exam is needed. It is my responsibility to examine the account5 (under section 145llllal of the 2011 Act); to follow the procedures laid down in the General Directions given by the Charity Commission (under section 14515) of the 2011 Act); and to state whether particular matters have come to my attention. Basis of Independent Examiners Statement My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosure5 in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on whether the accounts present a "true and fair view" Independent Examinerfs Statement In connection with my examination, no matter has come to my attention: 111 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 sections 130 and 131 of the Act); and accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act,. or 121 to which, in my opinion, accounts to be reached. ttention should be drawn in order to enable a proper understanding of the lan Scott BA {Hons) FCA DChA Saint & Co Chartered Accountants Independent Examiner 12/13 Church Street Whitehaven Cumbria CA28 7AY
THE CORNERSTONE TRUST Page 6 Statement of Financial Activities for the ear ended 31 March 2024 Unrestrirted Restritted Funds Funds Endowment Funds Total 2024 Total 2023 Notes Incornin Resources Incoming resources from generated funds: Voluntary income 3,153 3,153 3,442 Activities for generating funds: Bookshop Rent Receivable Income from Trading Activities 2 28,315 28,315 28,618 Investment Income & Interest.. Interest NIS Income Bond Grants 7,000 Interest on Bank Account Investment Re-distribution Total Incoming Resources 624 624 624 596 Resources Ex ended Costs of generating f unds.. Expenditure from Trad.Activ.2 Building Maintenance Depreciation Insurance Investment Re-distribution Gifts 31,380 31,380 34,413 400 331 400 331 400 308 7,000 Total Resources Expended 731 31,380 32.111 42,121 Net Incomin Resources before other reco nised ains and losses U nrealised Ga insll Losses) Transfer between Funds: Net movement in Funds: 2,422 13,065 624 133 1191 12,4651 133 823 2,422 13,0651 491 (1521 13,2881 Reconciliation of fund5: Fund Balances brought forward at l April 2023 Fund Balances carried forward at 31 March 2024 22 27 There were no gains or losses in the year to 31 March 2024 other than those included above. All incoming resources and resources expended derive from continuing activities.
THE CORNERSTONE TRUST Page 7 Statement of Financial Position as at 31 March 2024 Total 2024 Total 2023 Notes FIXED ASSETS Tangible Fixed Assets Investments 10,000 10,400 21,898 21,807 CURRENT ASSETS Stocks Debtors Investments Cash at Bank and in Hand 28,148 59,159 28,980 56,171 10 11 99,220 96,647 CREDITORS- amount5 falling due within one year 12 62,995 60,179 NET CURRENT ASSETS 36,225 36,468 NET ASSETS CAPITAL FUNDS Recoupment Fund Endowment Fund 11,898 11,407 31,898 31,407 INCOME FUNDS Restricted Trust General Fund 69,022 66,600 Restricted Bookshop Accumulated Fund 26,225 26,868 12 Approved by the Board of Trustees on the 18 day of J and signed on its behalf by 202 Trustee REV D GARY BROWN The note5 on pages 8 to 16 form part of these accounts.
THE CORNERSTONE TRUST Page 8 Notes formin art of the Accounts for the ear ended 31 March 2024 GENERAL INFORMATION The charity is registered in England and Wales and is unincorporated. The address of the principal office is The Cornerstone Trust, 5 Church Street, Whitehaven, CA28 7AY. STATEMENT OF COMPLIANCE These financial statements have been prepared in compliance with FRS 102. The Financial Reporting Standard applicable in the UK and the Republic of Ireland, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Flnancial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (Charities SORP FRS 1021 and the Charities Act 2011. ACCOUNTING POLICIES Basls of preparatlon The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in Sterling, which is the functional currency of the entity. The trust meets the definition of a public benefit entity under FRS 102. Golng concern There are no material uncertainties about the charity's ability to continue. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayment5 are valued at the amount prepaid net of any trade discounts due. Judgements and key sources of estimation uncertainty The preparation of the financial statements reqLJires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Cash at bank and In hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account (other than those held for investment purposes}. Cred5tors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Fund Accounting: General funds are unrestricted which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
THE CORNERSTONE TRUST Page 9 Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statement5. Restricted funds are funds which are to be used in accordance with specific restrictions imposed bv donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income and gains are allocated to the appropriate fund. Incoming resources: All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Donations in a form other than cash have been ignored in the accounts unless they are considered significant when they would be introduced into the accounts at the estimated current value. Resources expended: All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category, Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis con51Stent with use of the resources. Costs in respect of generating fund5 relate to those costs incurred to purchase goods for resale for the bookshop and operating costs of the shop. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Income Recognltlon: Investment income, including notational dividends on accumulation shares and bank interest is i ncluded in the Statement of Financial Activities when it is received. Value Added Tax.. The Trust is not registered for VAT. Turnover: Turnover comprises the selling price of goods sold and after deducting any church, school or book agents, discounts. Bookshop Profit: The profits of the bookshop shown in the accounts under Trading Activities are retained for the development of the Bookshop. Currently, no rent is charged on the Bookshop. No taxation is payable as profits are utilised for the objectives of the charity. Fixed Assets and Depreciation: Fixed Assets are stated at valuation or cost less depreciation. Depreciation is calculated on the written down value each year at the following rates:_ Freehold Property 2% straight line Bookshop Display Units and Bookshop 15% Catering Equipment, Kitchen Equipment, Hardware and Crockery, Bookshop Cassette Player and Office Equipment Other Fixed Assets Computer 20Y. 25% 33Yo
THE CORNERSTONE TRUST Page 10 Building Valuation: The building is stated at market value at 31 March 1981. The valuation was undertaken by Tiffen King Nicholson, Chartered Surveyors. The property is depreciated at 2% per annum straight line. Bookshop Stock Valuatlon.. The Bookshop stock has been valued at the lower of the cost and net realisable value. 21 NET INCOME FROM TRADING AcfiviTIES Cornerstone Chrlstian Bookshop Profit and L055 Account 2024 28,315 18,367 2023 28,618 18,967 Turnover Cost of Sales Gross Profit 35.1 % 12023 . 33.7%) 9,948 9,651 Administratlve Expendlture: Salary Website Charges Pension Costs Printing and Stationery Postages and Return Carriage Telephone Repairs and Renewals Xero Fees {Accountancy package) Rates & Water Charges Lighting and Heating Cleaning Depreciation Insurance Audit & Accountancy Fees Bank Charges & Interest plus Credit Card Training Costs Travelling Expenses EPOS System Refreshments Miscellaneous Expenses 5,760 1,140 8,101 1,018 37 17 326 1,009 347 293 704 778 59 15 308 1,806 390 97 373 768 196 315 649 778 47 331 1,806 570 60 576 147 576 189 73 16,046 600 13,613 600 Miscellaneous Income CAP rent Furlough Grants Net Profit/Loss for the year All incoming resources from operating activitie5 relate to activities in furtherance of the Charity's objects.
THE CORNERSTONE TRUST Page 11 Notes formin art of the Accounts for the ear ended 31 March 2024 continued) 31 EMPLOYEE'S REMUNERATION The Bookshop Manager's role is now on a voluntary basis, like all other staff and officers. There 15 no remuneration except travelling expenses where this is warranted. A Christmas function was held for the voluntary Bookshop staff in 2023 to thank them for their support during extremely difficult times. The Business Manager continued to receive a salary based on 40 hours per month. 41 PURCHASE ANALYSIS Cost Price 2023 Selling Price 2024 2023 2024 Books and Bibles Recorded Stationery and Crafts Cards and Posters Stamps & Vouchers 12,541 2,441 3,328 57 12,210 2,929 3,623 205 19,292 3.580 5,386 57 17.838 4,666 5,909 205 5} TANGIBLE FIXED ASSETS Trust General and Endowment Funds: Land and Catering Domestic Buildings Equipment Equipment Total Cost: Ba lance at l April 2023 Additions 20,000 I,oii 1,784 22,795 Balance at 31 March 2024 20,000 I,oii 1,784 22,795 Accumulated Depreciation: Balance at l April 2023 Charge for year 9,600 400 I,oii 1,784 12,395 400 Balance at 31 March 2024 10,000 I,oii 1,784 12,795 Net Book Value 2024 10,000 10,000 Net Book Value 2023 10,400 10,400
THE CORNERSTONE TRUST Page 12 Notes formin art of the Accounts for the ear ended 31 March 2024 continued 5) TANGIBLE FIXED ASSETS (continued) Bookshop Fund: Display Units Off ice Computer Equipment Equipment Total Cost Balance at l April 2023 Additions 1,217 1,417 552 3,186 Balance at 31 March 2024 1,217 1,417 552 3,186 Accumulated Depreclatlon: Balance at l April 2023 Charge for year 1,217 1,417 552 3,186 Balance at 31 March 2024 1,217 1,417 552 3,186 Net Book Value 2024 Net Book Value 2023 Total Net Book Value 2024 Net Book Value 2023 FIXED ASSET INVESTMENT Investment Share Dlvidends The Notional Dividend on the Accumulated Shares has been used to increase the amount available for investment in the portfolio thereby increasing the value of the Fund and Accumulation Shares. The Notional Dividends received during the year were as follows.. 2024 2023 Charinco Accumulation Shares Charifund Accumulation Shares &26
THE CORNERSTONE TRUST Page 13 Notes formin art of the Accounts for the ear ended 31 March 2024 continued 61 FIXED ASSET INVESTMENT (continued) Permanent Endowment Funds A permanent endowment was established by the purchase of the original buildings of 5 and 6 Church Street, Whitehaven on 11 November 1977. When 6 Church Street was sold the remaining building was represented by a sum of £20,000 held as part of the General Fund. This amount has now been transferred to a Permanent Endowment Fund so that the amount can be properly identified as being a proportion of the Trust's funds which cannot be disposed of and which are to be treated as a permanent endowment. The arrangements made to presenie the funds represented by the sale of 6 Church Street are covered by the Recoupment order described more fully below. Terms of Recoupment Order The Recoupment Fund relates to the capital sum which is required to Stand as a Capital Investment in order to preserve the original endowment following the sale of No. 6 Church Street. Statement of Investments re resented b the Recou ment Fund Units Cost Market Value Merrill Lynch: Charinco Accumulation Shares 471.899 4,278 M & G Securities: Charifund Accumulatlon Shares 175.000
THE CORNERSTONE TRUST Page 14 Notes formin art of the Accounts for the ear ended 31 March 2024 continued Statement of Fixed Asset Investments 2024 2023 Market Value l April 2023 11,407 18,634 Dividends Reinvested Net Unrealised Investment Gains/l Losses) Funds Redistributed Withdrawals 624 596 {1331 {8231 Market Value 31 March 2024 Historical Cost at 31 March 2024 71 ANALYSIS OF NET ASSETS BY FUNDS Unrestricted Funds Restrlcted Funds Endowment Funds Total Funds Fund Balances at 31 March 2024 are represented by: Tangible Fixed Assets Investments iio,0001 20,000 10,000 {10,0001 31,898 21,898 Current Assets Stock Debtors Investments Cash at Bank and in Hand 28,148 432 28,148 59,159 58,727 Current Liabilities 62,995 62,995 Transfers between Fund Total Net Assets
THE CORNERSTONE TRUST Page 15 Notes formln art of the Accounts for the ear ended 31 March 2024 continued 81 ENDOWMENT FUNDS ANALYSIS Balance 31 March 2023 MOVEMENT OF FUNDS Dlvldend5 Galnsl Re415t. Losses Balance 31 March 2024 Wlth draw•ls Permanent Endowment Fund Recoupment Fund 20,000 20,000 624 133 91 STOCK 2024 2023 Books and Blbles Tapes, Videos and Compact Discs Crafts Cards Stamps 17,323 323 4,818 5,684 18,064 540 4,117 6,259 101 DEBTORS Trust Accounts 2024 2023 Due from HMRC Due from the Bookshop 465 465 Bookshop Account Trade Debtors Prepayments Accounts Receivable 218 444 214 432 444 Total
THE CORNERSTONE TRUST Page 16 Notes formin art of the Accounts for the ear ended 31 March 2024 continued) 11) CASH AT BANK AND IN HAND Bookshop 2024 2023 Cash at Bank Cash Float Cash in Hand Petty Cash 5,315 60 4,681 60 ioi 150 Trust Total 121 LIABILITIES- AMOUNTS FALLING DUE WITHIN ONE YEAR Trust Account 2024 2023 Accruals Bookshop Account Trade Creditors Sundry Creditors Inland Revenue Due to the Trust Accruals 2,745 187 288 58,262 2,932 216 288 55,262 Total 131 COMMITMENTS At 31 March 2024 there were no contracted commitments for capital expenditure.