2023-08-31-accounts

Creation Science Movement [ CSM ] Trustees’ Report : 2023 Year ending 31st August 2023. Charity No. 801745

PO Box 888, Portsmouth PO6 2YD

Public Benefit

The Trustees have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission in December 2008 and have maintained the aim of CSM, as stated in our Trust Deed.

CSM is the publisher of educational materials, books and Journals that examine the scientific basis of various views within the origins debate. For near on 25 years, we have run a small museum, the Expo, which was open to the public and free of charge. Covid required the closure of the Expo. Moreover, it disrupted the planned building works, more about which will follow. Finally, Covid further accelerated the speed of the digital revolution. This was already beginning alter the mix of how CSM delivered the public benefits provided for over 90 years and that change has been vastly accelerated. Pre-Covid, we ran a programme of lectures and conferences and these are resuming. There are no restrictions on who can receive our mailings. and we get requests through various channels. They are also made available to other charities for them to distribute. We are reliant on donations for all aspects of our work.

Time Horizons

CSM first convened in 1932 and has been active ever since. Some decisions taken by previous council meetings in prior years converged with others taken in 2022/23, and several significant changes to CSM’s leadership took place during the year. This report details decisions taken in earlier years that matured during 2022/23 as well as the ‘in-year’ events.

Historically, our activities were those of a publishing house, providing scientifically qualified lecturers for debates and the organising of conferences. CSM became a registered charity in 1989 and continued to operate from people’s homes until 1995 when CSM acquired premises. These premises were suited for use as both an Expo and office space, which enabled us to employ a few part-time staff. We also had a small contingent of volunteers all of whom were managed by the Expo Manager who was employed on a full-time salary. We also had our pro-bono CEO and together they formed the hub of CSM’s Portsmouth activities. Our CEO recently stepped down and the Expo Manager retired in December gone, and we no longer have any Portsmouth based staff or volunteers. Our workforce, who are primarily volunteers, are now distributed across UK and remote working is the de rigueur.

Covid

In March 2020 no one imagined that the Government’s advice about self-isolation would still be in force two years later. A full day conference that had been arranged for May had to be cancelled and the capital works programme originally due to start in summer 2020 was so badly disrupted we no longer think it can be completed. Planning permission had been obtained for these works and the ball was already rolling when the pandemic started so it was put on hold, yet work had to begin by April 2021 otherwise our permission would expire, so we were pleased to hear in January that our contractor could undertake the demolition phase, work that was permitted under the Covid regulations and we were able to met the April deadline. No one realised that it would be a full 13months before we would be welcoming the builders back for the reconstruction phase.

The self-isolation advice was constantly being extended until February 2022. We had several vulnerable council members, and with some being elderly and in poor health some council members still wanted to follow it after its official discontinuance. Plans to meet were postponed several times. These same people were unable to use distance meeting technologies such as Zoom. Several board members had completed professional careers, some as academic staff at university

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and others gaining PhD’s, but nevertheless those careers were prior to the digital revolution. Unfortunately, the building works were instructed prematurely, denying the trustees an opportunity to examine the cost assumptions and other aspects related to the contractual aspects and discussing how the work would be managed. The Expo manager was involved in the day-today liaison with the builders when work started and the trustees took it that the situation was under control.

The Expo

The digital engagement by society has only gathered pace since Covid and a new world has emerged. In the 30 years since we bought the premises the digital revolution has taken place and this ensured that a ‘head of steam’ has been building up for change. However, it took the events of 2022 to release the drivers necessary to bring about these changes.

The standards expected today by the public within a museum far exceed what was expected 30 years ago, and the cost of maintaining a high-quality exhibition has risen accordingly. The desire to construct an extension goes back by at least fifteen years but by April 2022 the bulk of the trustees involved during the initial planning of the Expo extension had left. Nevertheless, permissions were in place, monies allocated and the old annexe had been demolished. Our chosen contractor undertook the demolition in April 2021 nut could not start reconstruction since they had a waiting list, CSM had to wait until May 2022 before they could start. Our CEO advised our architect what the total available budget was when giving him the design and build assignment. Unfortunately, material and labour costs rose sharply between 2019 and 2022, with some costs doubling, moreover, the go ahead was given prior the board meeting to discuss the contract. CSM’s executive arm was notified about cost overrun problems by the contract administrator and the message passed on to the trustees. The work was unaffordable but CSM was now committed to completing the building shell to a weathertight state as an absolute minimum. Fortunately, it was possible to do this through large loans issued by three council members and some fund-raising activity. Many long and difficult board meetings were held and various courses of action were discussed.

Consultations with donors during Q4 of 2023 and Q1 of 2024

The current trustees shared the financial situation with our donors during late 2022 and early 2023. We informed them that the immediate goal was to secure a weathertight building. The trustees are offering tours of the premises until September 2024 to donors who made gifts during 2022/23. Full trustee updates were issued during 2022, 2023 and early 2024. The spectre that the sale of the premises was a possibility was presented to our donor and we now know that this will be the case.

Accounts

The 2022/23 accounts were prepared by CSM’s outgoing management and the incoming management oversaw their presentation to the examiner. The check was at an examination level, as permitted for small charities. CSM uses the receipts and expenditures accounting convention, otherwise called the cash basis convention. Cash accounting is simpler than accrual accounting convention but does not show debtor or creditor information, i.e. anticipated costs. It does not cope when project costs span multiple years. The shortcoming with the cash account convention has been dealt with via notes to the accounts. While these accounts are for the 2022/23 FY, we were able to look ahead into the 2023/24 year via our half year review. Anticipated wages and a forthcoming final bill for the Expo have been included since they were the major components for our anticipated future cash flow demands. As of August 2023, our reserves stood at £66 768, with anticipated liabilities of £25k. The creditor and debtor liabilities that are shown below were settled in full after the close of the year. The wages bill relates to our only employee who has since retired.

Combined outstanding loans remain at £62k.

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i.e. as of August 2023,

as of March 2024

 Projected Creditors £25 000 nil  Debtors £22 883 nil  Loans £62 500

Early indications for 2023/24 are that people brought their 2023/24 donations forward into 2022/23 and consequently we expect donor income to fall below historical norms in 2023/24.

The Management of Conflicts of Interests

The trustees maintain a conflict of interests register in accordance with the relevant Charities Commission guidance. The donors have always been aware that Ross Rosevear was David Rosevear’s son, and that we employ Ross as a salaried staff member. Following Dr Rosevear’s decision to step down, Ross decided that the time to retire had come. Ross’ salary was £26k pa. The board would like to thank both for their long service. During FY 2022/23 three people on the council who were former, current or future trustees provided significant loan finance to CSM, at zero interest. These loans fall due for partial or full repayment in 2024.

The Shop and Stock

Covid necessitated the closure of the Expo and our shop remains closed on account of the unfinished building work. Sales in the Expo’s souvenir and bookshop were linked to visitor numbers and since the Expo will not reopen in the near future, the shop will not reopen either, so we now need to consider our options. The stock, which was purchased many years ago, was bought from trade suppliers by weight and in bulk. The more attractive items sold quickly and the initial purchase cost recouped years ago. Typically, these were sold from our gift shop display. The dioramas were mostly dependent on photos, models and static displays with no intrinsic value but interspersed within some cabinets are ‘sale items’ made visible to visitors circulating through the museum. Some artefacts have been displayed for years with pricing label displayed to add to the mystique and for effect; these remain unsold. Now that the Expo is close the stock remnants could be sold at Christmas fayres etc, but this will require the recruitment of someone to oversee renting a stall, obtaining permits, the many other practical considerations including the recruitment of people to man a stall. The cost of renting a stall at well attended events is prohibitive, and at minor events the buying public are only looking for stocking fillers. Many traders lose money at the smaller events so the trustees are disinclined to pursue the market stall approach any further. Alternatively, CSM could set itself up as a wholesale ‘trade seller’ of fossils into seaside ‘curiosity shops’, except we do not have an established presence in that market. In any event many of these small independent shops have disappeared, but notwithstanding that, even if we found a few odd customers, the ‘markup’ between trade and retail is vast; meaning that trade buyers expect trade pricing at a fraction of the prices seen on eBay and other online shops. In conclusion, the trustees do not wish to restart a failed business venture and there is no point starting a new business venture simply to dispose of our closing down stock. Consequently, the trustees are considering the practicalities of a travelling display suitable for use at future events.

Our shop’s stock also includes books with titles that were bought in bulk. Some are almost 40 years old. We also hold some stock of DVDs, but the market for those has also evaporated. CSM has published several books over the years and stocks of these remain. CSM concentrated on direct sales at events and those through our Portsmouth bookshop, but CSM did not establish any other sales channels. Several of the titles that we published are now in excess of 20 years old and as the years pass sales of a given title wane. Those who wanted them have already bought them. Consequently, the bookshop stock does not have any intrinsic value. Looking to the future, the small income generated by sales will barely cover the costs of off-site storage. Off-site storage will eventually be required and will have to be paid for.

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The Setting of Reserves for 2023/24, and looking ahead to 2024/25.

The required reserves are changing because the risks ahead are different from past years. The changes and costs which lie ahead which are unknown and have unknown costs. Moreover, we will not know for some time what percentage of our donor base were continuing out of loyalty to our long serving leader who is now in his late 80’s and has recently stood down. We still have to bear CSM’s and the Expo’s running costs. The selling up process we will have legal and marketing costs still to be determined and there will be other preparation costs to meet. Therefore, we have set the required reserves for 2023/24 at £70k. This is a combined figure which incudes a six-month buffer for CSM’s running costs plus a ‘ring fenced’ amount which will only be spent on non-Expo costs in exceptional circumstances. It is possible that loan finance may be required in FY 2024/25.

CSM’s Management Structure; Past, Present and Future.

The board make-up between Feb 2019 and Feb 2024 has changed completely. The three trustees who remained in-post after Sept 2022 were dismayed that such a large financial exposure had been created without proper authorisation. In 2018 the majority view prioritised an Expo led strategy and those acknowledging the scope of the digital revolution were in the minority. By the close of 2022 those promoting an Expo-led vision had left. Barry Forder resigned in September 2022 on account of the Expo overspend. An organisational reset is now well into the implementation stage and the donors who supported us during the financial crisis can discuss this freely with us at any time.

The Team

CSM is presently being entirely run by the trustees voluntarily, worked on a pro-bono basis.

At the end of FY2022/3 the trustees were;

• Mr Stephen Mountain, (Charities Commission contact until 31[st] Jan 24)

• Mr Christopher Wainwright. (incoming Charities Commission contact)

• Mr David Shires

• Richard Broadberry (Returning in December 2023).

Richard Broadberry, who is in his 70s, resigned in March 2023 due to stress arising through the board’s inability to make difficult decisions. In April the council members held an independently chaired meeting to discuss the Expo’s future. Christopher Wainwright agreed to accept a trustee role on the basis that non-viable options were eliminated, that only viable options were discussed further, that decisions were made and actions implemented. This resolved the deadlock through the elimination of unviable options. Richard was willing to return later that year. Nevertheless, Richard and David Shires, both of whom are in their 70s, have asked that the board seek replacements. David continues to provide his publishing expertise, giving many days a week over many years writing and overseeing CSMs publications. The board wish to thank him and he will be difficult to replace when the time comes.

Although David Rosevear was not CSM’s founder, he has been CSM’s driving force for almost 50 years, representing CSM in high profile debates at Cambridge University and in other ways. The honour of founder sits with Ambrose Flemming, the inventor of the electronic vacuum valve, AKA the basis for modern day electronics. When we obtained registered charity status in 1989 Dr Rosevear took up the founder’s mantle as a founding trustee. Founder’s syndrome is well recognised within management consultancy circles and is something which often comes about when an organisation’s founder is highly motivated and gifted, making it difficult for them to

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delegate. Unsurprisingly, succession planning is rarely considered and eventually it becomes impossible. CSM has never had a succession plan.

Recruitment

Looking forward, CSM needs to recruit people to provide input beyond what is possible from volunteers. Our incumbent CEO fulfilled this role as a post-retirement pro-bono engagement, which allowed him to steer CSM forward for 30 years after his retirement. The organisation now requires re-engineering from the inside out, and whoever CSM employs they will need to approach the role as their passion and not just see it as a job. Someone will be needed to manage contractors, oversee the legal changes, manage the flat and the Expo’s sale. A lot of these duties could be outsourced to various law firms and firms of professional property advisors but that would come at great cost. Our next CEO will have to be salaried and be an experienced professional. However, recruiting someone will come at a significant cost.

Even employing someone in a junior role with the required skills will be challenging. We found a good employee in November 2023 but we were unable to retain them once a better job came along. Employing someone in a senior role who doesn’t have a passion for the work isn’t going work in any organisation unless they are prepared to significantly exceed their open market salary. If that expectation is not met then that person will simply leave as and when a better job offer comes along. Hiring from the open market where salaries can exceed £80k pa is unaffordable for CSM and anyone working for something significantly less than this will only be doing so because they personally identify with CSM’s goals. That leads to retention issues if the directions are set by absentee trustees since it will be next to impossible to retain someone if they are disillusioned by the leadership while also working on a below market rate salary. Ultimately, it won’t work to have a CEO who simply views the role as a job.

We have tried for some years to recruit volunteers from our membership network and failed for various reasons. We now need someone to work full time while new volunteers and trustees are sought, and this will need to be in a paid capacity of some form. It is anticipated that one of more of our trustees will need to assume a paid role because there is no one else available, at an affordable rate, who is likely to stay.

The Future Legal Structure

The incorporation of CSM was first proposed in 2016, but was not taken forward at that time. The board notes that new, younger, trustees are urgently required. The board has made an informal approach to a similar organisation to see if they were willing to help through sharing trustees but it transpired, they were in a similar position too. They had ageing trustees who were looking to reduce their commitments and not increase them. Asking people to take on unlimited liability for poor decisions taken by people who have since left is not realistic. Therefore, incorporation is a step of equal importance to closing out the uncertainty created by the current Expo situation. Consequently, steps towards incorporation will be taken this year.

Submitted on behalf of the Board of Trustees

Dated 17[th] April 2024

Christopher Wainwright, Trustee. Creation Science Movement Charity No. 801745

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Summary Report - CSM Accounts for FY 2022/23

Donations Total	Sales Solar Panel Income Rent Misc. Pmts due from Previous Years Loans Total Sub Total
	£62,500 £144,407 £1,734 £1,545 £20,572 £23,851 £168,258 £22,883 £22,883 Total £191,141
totals £144,407
totals Misc. Pmts.
Income (Donations + trading) Prv yr's Total expend. Overspend Total Cash Raised	£168,258 £22,883 £191,141 £263,765 -£72,624 TradingSummaries
loans nett Bank acc Lloyds NatWest Cash to hand Loans total funds	£62,500 -£10,124 Sept 2022 August 23 £56,697 Lloyds £60,694 £20,247 NatWest £6,075 Change £76,945 £66,768 -£10,176 £0 £62,500 £76,945 total funds £4,268 Openingand ClosingBank Balance Summaries A £52 difference between the actual and calculated 'Bank balances' exists - the 'nett' and 'cash to hand' figures should match. A creditor's bill was pobably presented last year and settled this year.

Inde ndent Examinerfs Re rt to the Trustees of the CSM Trust I report to the trustees on my examination of the accounts of the Creation Science Movement ICC # 8017451 (the Trust) for the year ended 3151 August 2023, which are set out on pages l and 2. Respective Responsibilities of tTUStees and examiner 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 Att 2011 Ithe Act). The charity trustees consider that an audit is not required for this year under sertion 144{21 of the Charities Act 2011 Ithe 2011 Act) and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the 2011 Act to follow the prO￿dureS laid down in the general Directions given by the commission under section 14515)Ibl of the 2011 Att to State whether particulate matters have come to my attention Basis of independent examinerfs report My examination was carried out in accordance with the Charity Commission °Independent th Examination of CharityAccounts.. direcLions ond guidancefvr examiners {CC32) 14 July 2021). My 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 disc105ures in the accounts and seeking explanations from you as trustees concerning any such matters. I have also compared these accounting records against those from previous years. In addition I have read "Independent examination of charity occounts.- directions ond guidancefor examiners (CC32J- I@ Juty 2021 and Guidoncefor Independent Examiners during Covid-19 cri5i&.."Moy 2020 to use as guid3nce in my review and followed the 13 Direttions listed within. I have completed "Independent exanpination of charity accounts checklist (CC32of Sept 2017. Independent examinerfs statement I have completed my examination. I confirni that no material matters have come to mv attention in connection with my examination givi￿ me cause to believe that in any material respett: 11 accounting records were not kept in respect of the Trust as ￿qUI￿d by section 130 of the 2011 Act or Page l Df 2 Pages

Inde endent Examinerfs Re ort to the Trustees of the CSM Trust 2} the prepare accounts do not accord with those records. I have no concerns and have come across no other matters in connection with the examinationto which attention should be drdwn in this report in orderto enable a proper understanding of the accounts to be reached. But ask that in future original receipts are retained in order to make the Examinerfs job easier rather than rely solely on Bank Statements and previous years. knowledge. Name.. Richard Brooks Relevant professional qualification or ly)dy: None Address: 15 Augustine Road. Drayton. Portsmouth P06 1 HY Date: 15* May 2024 Income (Donations + trading) £168.258 loans £62.5CKJ Prv yr's £22,883 Total Cash Raised £253.641 Total expend. £263.765 Overspend £10,124 Total Funds £66, 768 at close 31< Aug 2023 Page 2 of 2 Pages