THE MESSAGE TRUST
ANNUAL REPORT & FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011 Company Limited By Guarantee Company Registration Number 03961183 Registered Charity Number 1081467
THE MESSAGE TRUST
FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
CONTENTS
PAGES
Officers and professional advisers
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Report of the trustees
4 – 21
Report of the auditors
22 – 23
Consolidated statement of financial activities
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Consolidated and charity balance sheets
25
Notes to the financial statements
ANNUAL REPORT & FINANCIAL STATEMENTS VERSION 1.2
26 – 36
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THE MESSAGE TRUST
OFFICERS AND PROFESSIONAL ADVISERS
The Board of Trustees
C. Hardicre R. T. Johnson (Chairman) A. N. T. Morton P. Nadin R. D. White
Company Secretary
F. N. Green
Chief Executive Officers
A. Hawthorne C. Dallas F. N. Green I. Henderson I. Rowbottom (appointed 1 September 2010) M. Wilson
Registered Office
Lancaster House Harper Road Sharston Manchester Lancashire M22 4RG
Auditors
McKellens Ltd Chartered Accountants 11 Riverview The Embankment Business Park Vale Road Heaton Mersey Stockport SK4 3GN
Bankers
National Westminster Bank PLC Station Road Cheadle Hulme Cheshire SK9 7AD
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THE MESSAGE TRUST
REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
The Message Trust exists:
The Trustees have pleasure in presenting their report and the financial statements of the charity for the year ending 31 August 2011. The Message Trust is a company limited by guarantee and a registered charity governed by its memorandum and articles of association. Charity number 1081467. Company number 03961183. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice – Accounting and Reporting by Charities.
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To advance the Christian religion amongst young people mainly (but not exclusively) of secondary school age in particular by the use of music, drama and speech including utilisation, encouragement, promotion and development of opportunities for education in Christian teaching and morals within schools and secondary educational establishments and otherwise, and
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To educate in the Christian religion and Christian lifestyle, minister to, counsel and relieve young people who are excluded from educational establishments, suffering from dependency, poor, disadvantaged, deprived, marginalised or otherwise in conditions of physical, mental or spiritual need, hardship or distress.
These objects are being worked out in six main areas: đƫ
Partnering with local churches, local authorities, schools, the police and other agencies to provide new opportunities and positive experiences for disadvantaged, deprived and marginalised young people across the Greater Manchester region.
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Producing quality Christian music and educational resources. Live music bands, printed materials, the internet and multimedia are all used to communicate Christianity to young people in ways that are relevant to today’s youth culture and perspectives.
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Community-based ‘Eden’ youth teams advancing the work of The Message through partnerships with local churches. Our goal is to see 8 Eden Hubs across the UK, each one situated in one of the country’s social deprivation hotspots and planting Eden Partnerships throughout their region. Each Eden Partnership would employ full-time and volunteer youth and community workers that would positively impact the people in those areas irrespective of religion, colour or background.
BACKGROUND AND OBJECTIVES The Message was formed in 1991 with one fulltime member of staff, who worked mainly within secondary schools in the Greater Manchester area. This work developed with the formation of a dance music band, The Tribe who became one of Europe’s most popular Christian Music groups. The formation of Eden teams working in the toughest parts of the city of Manchester and many other projects have added rapid growth with the work now becoming a significant organisation employing 61 paid staff with an annual income of around £2.7 million. The organisation was initially set up as the Message to Schools Trust but, with the growth and increasing number of opportunities opening up, all the activities, assets and liabilities were transferred to a new trust, The Message Trust, with effect from 31 August 2000. The new Trust, a company limited by guarantee, was incorporated on 30 March 2000 but did not become active until 31 August 2000 when it took over the operations of the old trust. 4
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
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Providing regular, long-term, accredited education courses alongside friendship and care to young prisoners in Young Offenders’ Institutions through “Reflex” teams using drama, music, video and other activities.
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Providing accredited training courses to youth workers and others through Genetik and a range of training courses in music and dance through the Tribe Academy.
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Providing regular, long-term mobile youth centres in Greater Manchester’s urban areas where teenagers have nowhere to go through our two Eden Buses, fully equipped with the latest video game technology and staffed by trained and skilled professional youth workers.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
STRUCTURE, GOVERNANCE AND MANAGEMENT The directors of the charitable company (“the charity”) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.
The Trustees remain committed to the policy of utilising music bands as one of the most effective ways to communicate the Gospel to young people. Our goal continues to be to present the Christian message and lifestyle in ways that are relevant to today’s youth.
The Trustees’ recruitment is by personal contact of existing Trustees. They are then elected by the Board of Trustees in consultation with the Chief Executive, on the basis of their expertise, wisdom and advice that they can bring to the Management and Administration of the Trust.
The trading activities of these bands, e.g. sales of CDs, are reflected in a separate Trading Company which is fully owned by the Trust. The Trading Company gives all of its profits to the ongoing work of The Trust.
The Board of Trustees has a variety of experience including both Christian ministry and commercial business skills. They meet quarterly to oversee the vision and strategies of the charity. Executive Directors have been appointed by the Trustees to oversee the day-to-day operations of the charity. The Board is accountable to the Charity Commission for the careful use of charitable and other public funds provided in a variety of forms, and for the achievement of appropriate performance standards in service delivery. The Board also undertakes at least one additional annual away-day for the purposes of further developing The Message Mission and Vision, and to concentrate on continuous improvement in performance.
Eden teams also remain one of the primary ways that the Trustees seek to ground the work of The Message with both local churches and the communities. Our goal is to see Eden teams with full-time and volunteer youth and community workers established in the most deprived neighbourhoods of the U.K., positively impacting the people in those areas irrespective of religion, race or background. The Message recognises the importance of our staff and aims to help them to develop their potential, improve their skills and gain greater job satisfaction.
With the growth of activities of the Trust an ever-increasing level of expertise is required on a day-to-day basis and an established senior management team is in place that is capable of running the affairs of the Trust. The Trust’s senior management team is the Executive Board, headed by the Chief Executive, Mr A Hawthorne. The Executive Board meets monthly and its members are both jointly and individually accountable via the Chief Executive to the Board of Trustees. Day-to-day management matters are further scrutinised by a cross-functional team of internal departmental managers, who meet on a monthly basis. This latter group’s work is fed into the Executive process whenever a more significant matter of policy or other key decisionmaking arises. 6
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
RISK MANAGEMENT
Risk awareness is integral to the Trust’s overall management effectiveness. All Executive Team members and Managers with the assistance of their teams carry out regular reviews of risks affecting their areas of the Trust’s activity. Wherever possible risk is quantified and financial values and other qualitative assessments of risk assigned, including recognition of consequential effect. Executive and Board of Trustee status reports detail any changes to the overall levels of risk, particularly when introducing a new activity. The Board of Trustees consider the consolidated impact of all risks annually, recognising that some risk is positive and beneficial in assisting the organisation to stretch and grow, particularly in terms of innovation. A standardised risk analysis and mapping procedure has been progressively introduced throughout the year. This will now assist the Trust to identify, evaluate and rank any special risk and audit needs or management corrective action required, taking into account the impact and likelihood and the known strengths and weaknesses of internal controls.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
SUMMARY OF MISSION PRIORITIES:
Operationally the activity of The Message Trust is split into two parallel functions: Mission and Support.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Mission encompasses staff and volunteers with regular or frequent face to face contact with young people. Each of the mission project areas and departments has its own branded identity as follows: Eden Buses (mobile youth centres), Eden Projects and Life Centres (youth teams in urban communities), LZ7 (educational rock group), Twelve24 (educational hip-hop group), In Yer Face (educational drama group), Events team (inc. technicians and engineers), Reflex (working with young offenders), and Genetik (training initiatives).
Our mission is to demonstrate and explain the Christian faith to teenagers in very practical and relevant ways using a variety of means including: educational work in high schools and young offender institutions, relational and recreational work in community centres, churches and outdoors. We have a particular concern for urban youth from deprived or socially excluded backgrounds who do not receive the same opportunities as those growing up in the wealthier suburbs.
Support encompasses staff and volunteers with minimal or no direct contact with young people and is structured departmentally as follows: Administration, Operations (inc. fleet and facilities management), Finance, Communications, Fundraising, and the Executive Leadership team.
The Message Trust’s Executive leadership team seek to achieve this by motivating staff and volunteers with a compelling vision and supporting them within a robust management framework. We ensure our Volunteers have comprehensive support to their roles through appropriate policies and procedures, clarifying the extent of their remit and providing checks and balances in relation to the key areas of the Management & HR Strategy.
ACHIEVEMENTS AND PERFORMANCE
The Message: 2010–11 in review The year ending August 31, 2011 was without doubt the most exciting and successful in The Message’s twenty year history. New ministries were birthed, existing work saw growth and through it all, more young people in schools, prisons and disadvantaged communities found the hope and help of Jesus Christ. The following pages offer a snapshot of the progress in each of our mission and support areas, together with short case studies about some of the young people our work has impacted this year.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
BY PROJECT AREA: Following a slight redesign of the course structure, our Genetik youth work training programme recruited 19 students (five on the Urban stream, 14 on the Creative) in 2010–11. The programme’s teaching element once again attracted high quality speakers and contributors and the various placements with local churches saw each student fulfilling a total of around 700 volunteer hours during the year.
LZ7 began a highly successful year with the release of their single This Little Light which they had performed extensively throughout the previous summer. It reached number 26 in the UK charts and received national airplay on BBC Radio 1, MTV and other cable networks. Soon after, the band released their album Light which garnered glowing reviews from critics, and coverage in the national press. This positive exposure saw the band busier than ever in the following months, and led to greater responses in their evangelistic appeals than they had previously seen. Between schools weeks, the band also toured the new album across the UK and Europe.
Graduates from the 2010–11 intake have gone on to accept a wide range of paid and voluntary youth work and ministry opportunities in Manchester and beyond. Two students formed a new theatrebased schools team in Northern Ireland (see below); others took up positions as a drummer for a schools band in Plymouth; a staff worker with Eden Openshaw; and even a trainer of other youth workers.
In November, LZ7 visited Maidenhead, where front man Lindz West himself grew up, for a very special schools week. During the week, LZ7 took 21 one-hour lessons on the theme of good choices and performed lunchtime concerts across five schools, including Lindz’s own high school.
CREATIVE TEAMS
Our work in high schools in and beyond Greater Manchester continued this year and was strengthened by the arrival of MaLoKai who joined us as a new associate ministry (see also below).
By day three, every single ticket for the end of week show was sold out – the venue had to be redesigned to take the demand for tickets. At the show, not only did over 850 young people pack into the venue, hundreds made first-time commitments to Christ following a clear gospel appeal. Over 300 Bibles have since been handed out with ‘What Now?’ booklets, and young people have been followed up through special meetings and Christian groups in schools.
Altogether, our bands and theatre company fulfilled 45 schools weeks and a handful of courses in prisons. These put us in contact with an estimated 40,000 young people, around 12,000 of whom attended evangelistic schools gigs and at least 6,000 of whom made a positive response to the gospel. While working in schools remained their main priority, our teams also accepted a number of invitations to perform at festivals and conferences in UK and Europe. We estimate the total audiences for these performances to be well in excess of 200,000 people between September 2010 and August 2011.
‘It was without doubt the most amazing and best week I have ever had in schools in 22 years,’ says Wayne Dixon, a Scripture Union schools worker who coordinated the schools week. ‘It was a great example of vision and partnership in action.’
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Twelve24 grew in gifting and popularity last year, delivering many successful schools weeks across Manchester and further afield. A typical comment came from one senior school staff member who wrote, ‘What a fantastic week we had with Twelve24! We saw many young people make decisions at the end of week concert and many have followed through other school activities. There is a growing group of students who I keep hearing about as starting journeys with God – it’s great and exciting stuff. We are now looking to plant a church here from the new year.’ The band also spent time in the studio during the year working on a new minialbum, Better Words.
In Yer Face theatre company brought a new interactive show to Greater Manchester high schools in the spring: The Rough Guide To Staying Alive, a hard-hitting guide to drugs, sexual health, relationships, peer influence and crime. The show explores issues relevant to healthy life development and citizenship and is designed with gaps in the narrative which challenge the audience to explore their own thinking and behaviour. The team also continued to write the youth version of UCB’s The Word for Today, Word 4U 2Day, which reaches 140,000 young people each quarter with daily guidance from the Bible.
TWELVE24 PROMO SHOT AND E.P. GRAPHICS FOR ‘BETTER WORDS’ (ABOVE)
CAST MEMBERS BRENDA NOBLE AND MATT BRITTON PLAYING RAHAB AND HOSEA, IN THEIR PRODUCTION OF “WE COULD BE HEROES JUST FOR ONE LIFE”.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
This has been a year of dynamic growth for Eden. Regional hubs established last year in London, the North East and Yorkshire launched a total of eight new Eden partnerships (four in London, three in the NE, one in Yorkshire) taking to 20 the total of active Eden partnerships in operation by August 2011 with several more poised to come on stream. Together, these teams delivered approximately 4,000 hours of youth and community work each month, involving around 200 committed volunteers in the lives of around 2,000 disadvantaged young people and their families.
Eden Bus’s strong partnerships with local churches saw more high-quality youth work across Greater Manchester and beyond throughout the year. Greater Manchester Police and neighbourhood agencies have commended it for its role in bringing down levels of antisocial behaviour in the areas it visits each week.
Recognising the centrality of new church partners, volunteers and donors to Eden’s growth, we also launched a marketing campaign based around short films offering glimpses into the lives of current Eden team members. Seven ‘Being Extra Ordinary’ films were created and screened at conferences, on UCB TV and broadcast virally through YouTube and websites. As well as receiving an audience of many thousands, we were delighted that the films were recognised with a Gold Award by the Christian Broadcasting Council.
However it was becoming increasingly clear that the two buses which had served us for many years, clocking up hundreds of thousands of miles around Greater Manchester, were now too expensive to maintain and a potential safety hazard. We were therefore delighted to receive a generous donation from Stagecoach Manchester of a replacement double-decker bus worth around £24,000, and during 2011 fundraising got underway to completely repurpose the bus for use by our teams. The newly refitted Eden Bus will be delivered and operational by early 2012.
This year, The Message awarded an 18-year-old volunteer from Eden Buttershaw the title of Urban Hero of the Year at our annual awards ceremony.
to 50 young men from the estate every week. ‘Lewis has become a real role model for a lot of guys,’ comments Gav Humphries, Eden Buttershaw Team Leader. ‘Many of them are just like Lewis – growing up without a father figure in their lives. But he’s giving them someone to look up to. He wants to finish his education and he’s got big ambitions for the future – two things that really go against the grain of this estate.’
Lewis Murch grew up on the Buttershaw estate in Bradford, a community in the bottom two percent of deprived wards in England. In 2010, his talent for free-running was spotted by the Eden team there and he was encouraged and supported to use his gifts to help others. He began a free running outreach project which now attracts up 11
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
MESSAGE ENTERPRISE CENTRE In early 2011, we announced plans to acquire and convert a derelict building next to our HQ in Sharston, repurposing it for an ambitious training and job creation programme: the Message Enterprise Centre.
Between September 2010 and August 2011, much of the groundwork for this exciting new initiative took place, including negotiating the purchase of a 125-year lease from Manchester City Council; agreeing the licence to commence the clearing work; securing the site and working with the Community Payback teams (Probation Service) to clear the site of debris and overgrown vegetation.
Our experience over the last twenty years shows that a lack of work is one of the most common reasons ex-offenders go back to crime. We believe that when you give young men and women a real job, a stable place to live and the help of a supportive community, you give them the best possible chance of becoming useful members of society.
Additionally, fundraising began towards the £1m refurbishment and the estimated £300k per annum operating costs. The Message Enterprise Centre will become a charity in its own right during the course of 2012.
Following a planned opening in Summer 2012, the Centre will house six brand-new businesses dedicated to training and creating jobs for around 50 ex-offenders and other vulnerable young adults we’re in contact with.
Even before its doors open, the MEC was already having an impact helping ex-offenders get their lives back on track this year.
BELOW: ARTIST’S IMPRESSIONS OF WHAT THE M.E.C. WILL LOOK IN ONE YEAR’S TIME
BELOW: THE BUILDING WILL HAVE AN INTERNAL STREET WITH OFFICES AND WORKSPACES
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
ASSOCIATE TEAMS Multiplication of our ministry is the vision behind Genetik: passing on our ‘DNA’ to young people and releasing them to grow ministry that meets the needs of more young people. This is also the philosophy behind the new Associates ministry model which we launched during 2010–11. Associate bands and mission teams will relate to The Message closely and often be supported to get started, while remaining independent and becoming self-sufficient. This means they will be free to pursue opportunities outside of The Message while keeping the distinctives and values which make Message ministries so effective. The first raft of Associate ministries include On The Edge Theatre Company, established by former Genetik students Georgia Houghton and Heather Turkington, and rock band MaLoKai who began working with The Message in 2011. Plans for several other new Associate ministries are in the pipeline.
Adam (pictured above) was one of the Community Payback team sent to work on clearing the derelict site next door to our headquarters, following a conviction for GBH. But God was on his case – he ended up chatting with two members of our Reflex team who helped him find a church which could give him the support he needed. Since then, Adam has continued working with The Message in preparing the MEC site. Adam is excited about how the Centre is going to help lads like the ones he worked with on community service: ‘It’s obvious why people continue to offend: it’s all they know. If you only know one thing, you’re going to carry on doing that thing. ‘The Enterprise Centre is going to point people in the right direction. From seeing these business people, how they live, what they’ve got in life, how they are around people, I believe you’ll get huge breakthrough.’
THE M.E.C. BEFORE THE CLEAN-UP BEGAN
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PRAYER
Prayer continues to play a major part in our life together through our monthly Prayer Days, daily devotional times in the office and a busier-thanever Prayer Room.
The work of the Reflex team continued to have a life-changing impact on the lives of many young men and women in prisons and young offenders’ units around the North West, and those settling back into life in the community.
We have also been excited to be partners in a new work of God, Prayer Storm, which has a vision to raise up a growing number of young people in prayer for revival for our city and nation. Last year two large Prayer Storm gatherings and a number of smaller prayer meetings saw hundreds of young people devoting themselves to worship and intercession.
Reflex’s effective outreach work which includes media, music and theatre courses, life skills and discipleship groups, put our team members in contact with an average of 400 young men and women from HMP/HMYOI Forest Bank, Hindley, Styal and Thorn Cross each month last year. Chapel services in each institution attracted an additional 160 young men and women during an average month. Testimonies from the team abounded, including many hardened offenders meeting Jesus and becoming soul-winners, and women freed from long term self-harm issues. This year the team appointed Nick Shahlavi as a full-time worker – himself a former offender before he turned his life round and began volunteering with Reflex.
FROM REPEAT OFFENDER TO COMPLETE SURRENDER Until two years ago, Stacey had spent all of her adult life behind bars. One drugs offence led to another and, in her words, prison was like a revolving door: ‘I’d be out and back in. I had no support. Each time I had every intention of staying off heroin, but I never did. I would smoke on the first day I was out, and I was back at square one.’ But on her last sentence, Stacey finally found the help she needed. She became a Christian through Bible studies run by Reflex in HMP Styal. She began to make prison work for her, taking courses and classes. And when the time came for life outside – finding a job, securing a flat and settling into a church – Reflex supported her every step of the way. Stacey was released as a Priority and Prolific Offender (PPO), with a stringent monitoring regime. But her probation officer was so impressed with Stacey’s new attitude she was released from the scheme within seven months – the quickest time on record.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
During 2011, we adopted a new strapline to better describe the breadth of ministry we are now involved with, including beyond Greater Manchester. ’Faith in Young People’ neatly captures three things that have always been central to The Message. Firstly, it speaks of our commitment to the most damaged and vulnerable young people and our faith that they can go from being the problem to the answer. Secondly, it strongly asserts that our Christian faith is our engine and the answer for any life or community, no matter how broken. Finally, it demonstrates our conviction that faith breeds faith and that our work is creating an army of faith-filled young men and women who themselves will proclaim and demonstrate the power of Jesus Christ to change lives.
OPERATIONS AND SUPPORT
EXECUTIVE TEAM, STAFF AND VOLUNTEERS
Our supporter communications developed significantly over the year, keeping around 20,000 people up to date with the latest news, testimonies and ways to get involved. Message Creative worked hard to ensure that Flow magazine (three times a year) and the Prayer Calendar (six times a year) were high quality and truly representative of what God is doing through The Message. These were complemented in 2011 with the launch of the Flow Podcast, a monthly podcast programme featuring interviews with Andy Hawthorne and other team members, and a relaunch of the Message website (www.message. org.uk).
Over the year, there were a few changes to our staff team. A new appointment was made to the Executive Team: Ian Rowbottom, a long-standing member of staff, was appointed to Executive Director, Operations. We reshaped our Events team to better serve our changing needs in schools which involved a small number of redundancies. To support staff better and to pick up responsibility for HR following Frank Green’s appointment as MEC Director, the decision was taken to appoint a part-time HR Manager. During the course of the year, the Executive Team ran a staff survey to monitor staff satisfaction and motivation. Following this, a decision was taken to introduce monthly Exec Question Times following Tuesday staff prayers, to improve communication between the exec team and the rest of the staff.
This year, our fundraising focused again on drawing more supporters into regular giving relationships with The Message through church visits, appeals and staff personal support. Together with another successful Urban Hero Awards, we also experimented with a new Gala Dinner in November. Continued focus was placed on relationship fundraising with trusts and major donors.
We continue to attract young people into internships and there were three people working full-time for The Message in this capacity during the year. Volunteers continue to play a crucial part across all of The Message’s ministry in schools, communities and prisons, but also behind the scenes in admin and operations roles. Over the year an estimated 20,000 volunteer hours were freely given in support of Message activities.
Some staff changes were made to support this work: to allow Frank Green to take on more responsibilities for the Message Enterprise Centre, we employed a part-time fundraising consultant; and to strengthen the administrative capability of the team we appointed a part-time database assistant. In July, The Message also opened its doors for its first ever Open Day. As well as performances from bands, staff members were on hand to explain the whole range of Message ministry and there were tours of the future MEC building. Dozens of supporters attended, helping them deepen their partnership with our work.
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COMPASSION FOR THE POOREST OF THE POOR
ANDY HAWTHORNE OBE Andy’s outstanding achievements and service to young people in Greater Manchester and beyond were recognised with an OBE in the Queen’s Birthday Honours list in June 2011. Hundreds of supporters and friends of The Message subsequently tweeted or contacted us via Facebook to congratulate him, representing only a fraction of the tens of thousands of lives his work has impacted over more than 20 years.
The Message’s commitment to helping the poor around the world continued to find expression in our support for other ministries through our tithe fund. Once again we made the people of Haiti a priority through our support of over 50 sponsored children through Compassion UK. Andy and Michele Hawthorne also accompanied Ivy Manchester pastors Anthony and Zoe Delaney on a short trip to capital Port-au-Prince and nearby island LaGonave, meeting pastors and project staff working tirelessly to help the poorest of the poor rebuild their lives after the 2010 earthquake.
One meeting in particular demonstrated the long term effectiveness of our support for the project, explains Andy: ‘A great testimony to the power of child sponsorship was there right before our eyes. Heading up this whole team of architects, project managers and civil engineers, was a young man called Etienne. He’s a former sponsored child, from among the poorest of the poor, who’s got a master’s degree and is now managing this major logistical exercise helping his own people.’
Two weeks later, Andy addressed more than 600 cross-party MPs, Peers, church leaders and charity representatives at the National Prayer Breakfast at Westminster’s Great Hall. Andy was the keynote speaker at the event which had the theme ‘Raising the aspirations of young people’. He told breakfast delegates: ‘The Bible works – and Jesus is the answer. The message of the Bible raises the aspirations of young people – we ditch it at our peril. The best of our society is built on this precious book… The more we invest in today’s young people the values that God gave us in this book, the better our society will become.’
BELOW: Andy’s son Sam playing with a group of Haitian kids.
One delegate at the breakfast wrote afterwards, ‘He spoke with a rock-solid conviction about his faith in a Jesus who shakes things up, who brings hope to the marginalised and subverts the way things are. A Jesus who transforms lives. It was the kind of speech that I bet someone like William Booth, the founder of the Salvation Army, would have made 150 years ago.’ 16
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FINANCIAL REVIEW
REVIEW OF THE YEAR
The 2011 accounts have been prepared in accordance with the Statement Of Recommended Practice (Revised 2005).
The baseline income was higher than last year at £2.7m (2010: £2.6m). Costs grew but were contained within the budget due to strong financial management and good cost control.
The Trustees have taken the opportunity to review all The Message’s key accounting policies to ensure that they continue to be in accordance with the requirements of the SORP and best accounting practice. Whilst these steps have resulted in enhanced disclosures in the financial statements, it has not been necessary to make any significant amendments to key accounting policies.
Income and Expenditure The Message continued to rely on voluntary income as its principal source of funding. Total voluntary income, including Gift Aid, amounted to £2.3m (2010: £2.0m). Gifts from Foundations and Trusts has increased to £1,041k (2010: £804k) which constitutes 46% (2010:39%) of all voluntary income. Donations and gifts from individuals (including Gift Aid) of £721k provided an additional 32% (2010: £744k – 37%) of voluntary income, while income from Churches and Ministries provided £172k – 8% (2010: £344k – 17%), and income from Business supporters provided £345k – 15% (2010: £144k – 7%). Income from fundraising and trading activities fell from £161k in 2010 to £155k in 2011. The ‘Costs of Generating Voluntary Income’ and ‘Costs of Fund Generating Activities’ in the financial statements, amounted to £177k in 2011 (2010: £174k). Other funds were generated through charitable activities such as the Genetik training academy £74k (2010: £19k), Projects (including Eden Partnerships & Other Projects) £49k (2010: £195k) and Events £100k (2010: £75k). The academy is not an exclusively commercial operation, as the Trustees want the training and the facility to be available to the community.
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Surplus
Reserves policy
Total incoming resources exceeded resources expended in the year by £189k (2010:£50k) of which £68k is within unrestricted funds and £121k is within restricted funds.
The Trustees have adopted a reserves policy which they consider appropriate, to ensure the continuing ability of the Message to meet its objectives and obligations.
Balance Sheet
In order to be prudent, the Trust has accumulated, in general reserves, an amount equivalent to approximately four weeks of staff costs. Although the desired level has not been achieved this year the trustees are confident that they can return to that level next year. In addition to the above the Trustees have designated funds to underwrite future mission projects, as outlined below. The designated funds total £629,495 at 31 August 2011 (2010: £553,095).
The Balance Sheet as at 31st August 2011 remained strong ensuring that the charity has the assets required to deliver its commitments to the community. The additions to fixed assets amounted to £62k (2010: £29k) comprising of the purchase of a new VW Transporter; the gift of a new Eden bus; replacement equipment for the Media team and Genetik studio; new computers and software.
Grant making Policy
Subsidiary undertakings
Grants are made only to Eden Partners or to designated individuals directly associated with those Partnerships. Currently there are five active Eden Partnerships and work is ongoing to establish others in the Eden Network.
The Message’s subsidiary company continues to contribute to the charity’s mission and their financial results are shown in note 4 to the consolidated accounts. The Trustees are confident that the Investment in this company remains beneficial to The Trust, and future profits are expected to be made.
Investment Powers and Policies The Trustees have the power to invest surplus funds of the charity in investments, securities and property as they think fit. The current policy of the Trustees is to invest funds not immediately required by the charity into a range of Treasury and Capital Bond accounts which bear competitive rates of interest. This policy is reviewed periodically by the Trustees.
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REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
PLANS FOR FUTURE PERIODS
The multiplication of disciples is our new strapline. This expresses our vision to go deeper, working harder with local churches to re-integrate and support the thousands of young people who are responding to Christ through our work, and to go wider. We now have an increasing desire to see our work multiply at home and abroad specifically through our new Message Associates initiative. Recently the leadership team and Trustees have set the following ambitious goals for the next few years: đƫA total of 80 Eden teams (with 960 team members) working hard and seeing fruit on the UK’s toughest estates, and a network of 100 Eden Associates worldwide who carry our values and benefit from our support in terms of training, equipping and resourcing. đƫ25 new creative arts teams (primarily bands and theatre companies) who will train with us for a year and then be sent out as Message Associates to multiply our work of credibly communicating the Good News. đƫ75 previously unemployable young men and women working in our businesses and receiving mentoring, support and housing across the city, and hundreds more working associated businesses set up with our support and encouragement by young entrepreneurs we have met in prison and on the regions toughest estates. đƫIf we can see this vision fulfilled it will take our already fruitful work to an altogether different level in terms of lives changed and communities transformed. 20
THE MESSAGE TRUST
REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011
DIRECTORS AND TRUSTEES In preparing those financial statements, the trustees are required to select suitable accounting policies, as described on pages 25 and 26, and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable. The trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operations.
The directors of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees serving during the year and since the year-end were as follows:
C. Hardicre R.T. Johnson
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with Companies Act 2006. 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.
A.N.T. Morton R.D. White P. Nadin
RELATED PARTIES
The Message Trading Company Limited is a fully owned subsidiary company which exists to support the charity by the sale of books, DVDs, CDs and other merchandise related to the Trust’s flagship bands, LZ7 and Twelve24, together with other merchandise associated with the work of The Message Trust. The company aims to give all its profits to the Trust.
The Trustees also confirm that: đƫas far as they are aware there is no relevant audit information of which the charity’s auditors are unaware; and đƫthey have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information
A summary of transactions with related parties is set out in note 18 to the financial statements.
TRUSTEES’ RESPONSIBILITIES The Trustees (who are also directors of The Message Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Signed by
Company law 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 charitable company and the group at the end of the year and of the income and expenditure for the year then ended.
……………….. Richard T Johnson (Chairman) Date: 1st March 2012
21
THE MESSAGE TRUST
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MESSAGE TRUST
Respective responsibilities of trustees and auditors
We have audited the financial statements of The Message Trust for the year ended 31st August 2011
The trustees’ (who are also the directors of the company for the purposes of company law) responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees’ Responsibilities. We have been appointed auditors under the Companies Act 2006 and section 43 of the Charities Act 1993 and report to you in accordance with those Acts. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006 and the Charities Act 1993. We also report to you whether, in our opinion, the information given in the Trustees’ Annual Report is consistent with those financial statements. In addition we report to you if, in our opinion, the charity has not kept adequate accounting records, if the charity’s financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustees’ remuneration specified by law are not made.
which comprise the Consolidated Statement of Financial Activities, the Consolidated Summary Income and Expenditure Account and the Consolidated and Parent Company Balance Sheets and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the company’s members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.
22
THE MESSAGE TRUST
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MESSAGE TRUST
Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s and the charitable parent company’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion: đƫthe financial statements give a true and fair view of the state of the group’s and the parent company’s affairs as at 31st August 2011, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; đƫthe financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; -------------------------------------
đƫthe financial statements have been prepared in accordance with the Companies Act 2006 and the Charities Act 1993; and
1st March 2012
Paul Roper
đƫthe information given in the Trustees’ Annual Report is consistent with the financial statements.
Senior Statutory Auditor For and on behalf of McKellens Ltd Registered Auditors Stockport
23
THE MESSAGE TRUST
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) YEAR ENDING 31 AUGUST 2011 Unrestricted Funds Note
£
Total 2011
Restricted Funds £
£
Total 2010 £
INCOMING RESOURCES Incoming Resources from Generated Funds Voluntary Income
3a
1,222,606
1,064,655
2,287,261
2,041,067
Activities for generating Funds
3b
155,245
0
155,245
160,914
Investment Income
3c
7,636
0
7,636
4,850
Incoming Resources from charitable activities
3d
TOTAL INCOMING RESOURCES
226,516
61,766
288,282
351,064
1,612,003
1,126,421
2,738,424
2,557,895
RESOURCES EXPENDED Costs of generating funds Costs of Generating Voluntary Income
5a
102,573
0
102,573
113,548
Costs of Fund Generating Activities
5b
74,345
0
74,345
60,902
Charitable Activities
5c
813,204
1,546,432
2,359,636
2,324,581
Governance Costs
5d
12,406
0
12,406
8,383
1,002,528
1,546,432
2,548,960
2,507,414
609,475
(420,011)
189,464
50,481
(541,320)
541,320
0
0
68,155
121,309
189,464
50,481
685,486
304,675
990,161
939,680
753,641
425,984
1,179,625
990,161
(Fundraising & Trading)
TOTAL RESOURCES EXPENDED NET (OUTGOING) / INCOMING RESOURCES BEFORE TRANSFERS TRANSFERS Gross Transfers between Funds
19
NET MOVEMENT IN FUNDS Total Funds Brought Forward TOTAL FUNDS CARRIED FORWARD
The charity has no recognised gains or losses other than the results for the year as set out above. All of the activities of the charity are classed as continuing.
24
THE MESSAGE TRUST
Company Registration Number 03961183
CONSOLIDATED & CHARITY BALANCE SHEETS AS AT 31 AUGUST 2011
The Message Group 2011 Note
£
The Message Trust 2011
The Message Group 2010 £
£
The Message Trust 2010 £
FIXED ASSETS Tangible fixed assets
12
125,139
136,582
125,139
136,582
Investments
4
0
0
5,000
5,000
125,139
136,582
130,139
141,582
CURRENT ASSETS Stocks
13
3,363
2,135
0
0
Debtors
14
117,816
176,178
119,233
177,025
Investments
15a
1,047,084
815,905
1,047,084
815,905
Cash at bank and in hand
15b
107,543
99,373
107,543
99,373
1,275,806
1,093,591
1,273,860
1,092,303
221,320
240,012
219,853
239,201
1,054,486
853,579
1,054,007
853,102
TOTAL ASSETS LESS CURRENT LIABILITIES
1,179,625
990,161
1,184,146
994,684
NET ASSETS
1,179,625
990,161
1,184,146
994,684
CREDITORS: Amounts falling due within one year
16
NET CURRENT ASSETS
FUNDS OF THE CHARITY Restricted Income Funds
19a
425,983
304,675
425,983
304,675
Unrestricted Income Funds
19b
753,642
685,486
758,163
690,009
1,179,625
990,161
1,184,146
994,684
These financial statements were approved by the trustees on 1st March 2012 and signed on their behalf by:
……………………………….. Richard T Johnson, Trustee
……………………………….. Paul Nadin, Trustee
25
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
Incoming Resources
1. ACCOUNTING POLICIES
Donations & gifts Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when there are conditions to fulfil before becoming entitled to it and where the donor has specified that the income is to be expended in a future period.
Basis of accounting The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable accounting standards and the Companies Act 2006.
Income tax Income tax recoverable on gift aid donations is recognised when the income is received.
Basis of consolidation The group financial statements consolidate the financial statements of the charitable company and its subsidiary undertaking made up to 31 August 2011.
Grants Grants to the trust are accounted for as soon as the trust is notified of its legal entitlement and the amount due.
Cash flow statement
Income from charitable activities All income from events and activities is recognised gross when due, exclusive of Value Added Tax.
The directors have taken advantage of the exemption in Financial Reporting Standard No 1 from including a cash flow statement on the grounds that the group is a small group.
Income from Investments Investment income comprises interest receivable on short-term deposits.
Group financial statements These financial statements consolidate the results of the charity and its wholly-owned subsidiary The Message Trading Company Limited on a line by line basis. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and paragraph 397 of SORP 2005. The results of the parent charity are detailed in note 11.
Income from fund-generating activities Income raised by special fundraising events, royalties and trading activities are accounted for gross in the period in which the group is entitled to receipt, exclusive of Value Added Tax.
Resources Expended Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any Value Added Tax which cannot be recovered.
It is the charity’s policy to write off any deficit on consolidation to reserves.
Cost of fund-generating activities Costs of fund-generating activities have been allocated to trading or fundraising according to how they were incurred. Where costs have been shared the expenditure has been allocated to funds on the basis of their estimated consumption of expenses.
The accounts include all transactions, assets and liabilities for which the trust is responsible in law.
Direct Charitable Expenditure Directly attributable expenditure has been allocated to the appropriate fund. Where costs have been shared the expenditure has been allocated to funds on the basis of their estimated consumption of expenses. Grants are recognised in the accounts at the point in time the Trustees approve the grant. 26
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
1. ACCOUNTING POLICIES (CONTINUED)
Funds Funds held by the charity are either:
Governance These costs include the costs of governance arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in generating funds and in charitable activities. This includes such items as external audit, legal advice for trustees and costs associated with constitutional and statutory requirements, including trustees’ meetings.
Unrestricted general funds These are funds that can be used in accordance with the charitable objects at the discretion of the trustees. Designated funds These are unrestricted funds that have been earmarked for a particular project. This designation is for administrative purposes only and does not restrict the trustees’ discretion to apply the fund within the objects of the charity.
Volunteers and donated services and facilities
Restricted funds These are funds that 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.
The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the Trustees’ annual report.
Fixed Assets
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Individual fixed assets costing £500 or more are capitalised at cost. Depreciation is provided in equal annual instalments over the estimated useful lives of the assets and is calculated on the cost or valuation of the assets.
Operating leases Rentals payable under operating leases are charged to the Statement of Financial Activities in equal annual instalments over the term of the lease.
The following annual rates are used: Stage & Office Equipment
25%
Motor Vehicles
25%
Leasing and hire purchase commitments
Depreciation is first charged in the quarter following acquisition and in the last full quarter before disposal.
Assets held under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
No provision is made for the increased cost of tangible fixed assets.
Investments Investments held as fixed assets are stated at cost less provision for permanent diminution in value.
Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock.
Pension costs and other benefits The pension costs charged in the financial statements represent the contributions payable by the company during the period in accordance with FRS 17.
Current Assets Amounts owing to the charity at 31 August 2011 in respect of income are shown as debtors less provision for amounts that may prove uncollectable. 27
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
2. LEGAL STATUS OF THE CHARITY The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1.
3. INCOMING RESOURCES Restricted FundsTotal £
TOTAL 2011 £
407,433
189,655
597,088
627,431
71,424
100,527
171,951
343,800
Gifts Business
227,504
117,510
345,014
144,348
Gifts Trusts & Foundations
433,106
608,220
1,041,326
803,538
0
7,600
7,600
5,536
Unrestricted Funds Total £
TOTAL 2010 £
3a Voluntary Income Gifts Individuals & God Parents Gifts Churches & Ministries
Gifts Governments Tax Refund
83,139
41,143
124,282
116,414
1,222,606
1,064,655
2,287,261
2,041,067
3b Generating Income 26,859
0
26,859
31,452
128,386
0
128,386
129,462
155,245
0
155,245
160,914
7,636
0
7,636
4,850
7,636
0
7,636
4,850
Genetik Income
63,735
9,811
73,546
18,746
Project Income
2,500
46,769
49,269
195,431
99,554
125
99,679
74,913
45,133
0
45,133
37,639
Trading Sales Fundraising Events
3c Investment Income Bank Interest Received
3d Incoming Resources from Charitable Activites
Event Income Comms Income Royalties Sundry Income
TOTAL INCOMING RESOURCES
0
14
14
0
15,594
5,047
20,641
24,335
226,516
61,766
288,282
351,064
1,612,003
1,126,421
2,738,424
2,557,895
Many volunteers give freely of their time in the service of our Lord for the Trust, the value of which is unquantifiable.
28
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
4. COMMERCIAL TRADING OPERATIONS AND INVESTMENT IN TRADING SUBSIDIARY The wholly-owned trading subsidiary, The Message Trading Company Limited, which is incorporated in the United Kingdom, aims to pay all its profits to the charity by gift aid. The Message Trading Company Limited sells books, DVDs, CDs and other merchandise related to The Tribe (previously The World Wide Message Tribe) band, LZ7, Twelve24 and other merchandise associated with the work of the charity. The charity owns the entire issued share capital of 5,000 ordinary shares of £1 each. A summary of the trading results is shown below. The net assets of the trading subsidiary are £477 (2010 £477).
TOTAL 2011 £
TURNOVER Cost of sales GROSS PROFIT
TOTAL 2010 £
26,859
31,452
(13,883)
(17,422)
12,976
14,030
Distribution costs
(11,882)
(12,900)
Administrative expenses
(1,094)
(1,130)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
0
0
Tax on profit on ordinary activities
0
0
0
0
Balance brought forward
RETAINED PROFIT FOR THE FINANCIAL YEAR
(4,523)
(4,523)
Balance carried forward
(4,523)
(4,523)
29
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
5. RESOURCES EXPENDED Staff £
Depreciation £
Project Costs £
Direct Costs
Staff £
Depreciation £
Other Support Costs £
Total Support Costs £
Total 2011 £
Total 2010 £
5a Costs of Generating Voluntary Income Fundraising
72,557
1,464
28,552
102,573
0
0
0
0
102,573
113,548
72,557
1,464
28,552
102,573
0
0
0
0
102,573
113,548
5b Costs of Fund Generating Activities Trading Fundraising
11,656
0
14,387
26,043
473
17
326
816
26,859
31,452
0
0
47,486
47,486
0
0
0
0
47,486
29,450
11,656
0
61,873
73,529
473
17
326
816
74,345
60,902
5c Direct Charitable Expenditure Unrestricted Funds Events Genetik Twelve24
106,076
13,335
102,072
221,483
138,863
5,730
97,069
241,662
463,145
481,142
21,462
0
76,212
97,674
50,929
2,045
35,524
88,498
186,172
120,691
(4,842)
731
22,166
18,055
29,629
1,130
20,584
51,343
69,398
75,373
18,040
1,450
16,225
35,715
33,889
1,313
23,572
58,774
94,489
88,732
140,736
15,516
216,675
372,927
253,310
10,218
176,749
440,277
813,204
765,938
Edens - see also Note 6
125,962
0
273,322
399,284
134,740
5,622
94,276
234,638
633,922
839,337
Bus
64,097
5,994
49,618
119,709
80,535
3,174
56,092
139,801
259,510
204,699
0
0
36,035
36,035
16,643
682
11,628
28,953
64,988
0
76,337
0
26,546
102,883
66,882
2,631
46,576
116,089
218,972
165,232
0
0
0
0
0
0
0
0
0
19,313
109,070
0
21,482
130,552
50,207
2,056
35,076
87,339
217,891
201,069
In Yer Face Total Unrestricted Funds Restricted Funds
Message Enterprise Mission Central HOPE Prisons Other Restricted Total Restricted Funds
151,149
0
0
151,149
0
0
0
0
151,149
128,993
526,615
5,994
407,003
939,612
349,007
14,165
243,648
606,820
1,546,432
1,558,643
667,351
21,510
623,678
1,312,539
602,317
24,383
420,397
1,047,097
2,359,636
2,324,581
0
0
12,406
12,406
0
0
0
0
12,406
8,383
0
0
12,406
12,406
0
0
0
0
12,406
8,383
751,564
22,974
726,509
1,501,047
602,790
24,400
420,723
1,047,913
2,548,960
2,507,414
5d Governance Governance
TOTAL RESOURCES EXPENDED
30
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
6. GRANTS – PAYABLE IN FURTHERANCE OF THE CHARITY’S OBJECTS
9. INFORMATION REGARDING TRUSTEES AND EMPLOYEES
Total 2011
Total 2010
£
£
Eden Gorton
18,500
25,395
Eden Eccles
18,500
26,395
0
25,395
Eden Westwood
25,707
27,641
Eden Limeside
18,500
25,395
St Aidan’s Hull
12,563
0
Eden London
25,125
5,937
Eden Sheffield
8,540
11,686
Eden North East
21,106
0
148,541
147,844
Eden Partnerships
Eden Leigh
2011 £
2010 £
7,150
6,207
69,365
51,498
0
0
1,072
725
(9,070)
(871)
đƫ 1%( %*#ƫ ! /!
32,175
30,500
đƫ %.!ƫ+"ƫ)+0+.ƫ2!$% (!/ƫ * ƫ equipment
13,068
26,973
Auditors’ remuneration Depreciation of owned assets Depreciation of assets held under finance leases Loss on Disposal of Asset Profit on Disposal of Asset
1,185,086
1,325,933
Social security costs
110,833
120,830
Pension costs
58,434
48,879
1,354,353
1,495,642
No.
No.
31
36
Average number of staff employed: Charitable Activities Cost of Generating Funds
4
4
Governance / Management
5
4
21
21
61
65
Others - Support No employee earned £60,000 pa or more.
Amounts paid or Reimbursed to Trustees £Nil (2010: £Nil)
10. TAX ON SURPLUS ON ORDINARY ACTIVITES
These grants are included within Edens – Restricted Funds – Project Costs in Note 5c above.
Includes:
2010 £
Wages and salaries
The Message Trust works in partnership with, and makes grants to, autonomous Eden Partners, who look to The Message Trust for support and guidance on best practice in work with young people.
7. TOTAL RESOURCES EXPENDED
2011 £
Employee costs during the year:
Corporation tax based on the results of the Trading Company for the year at Nil% (2010: Nil%)
2011 £
2010 £
0
0
0
0
11. FINANCIAL PERFORMANCE OF THE CHARITY As permitted by Section 408 of the Companies Act 2006, the income and expenditure account of the parent company is not presented as part of these financial statements. The parent company’s gross income for the year was £2,711,565 (2010: £2,526,443) and the net incoming resources for the year amounted to £189,464 (2010: £50,481)
Rentals under operating leases:
8. ANALYSIS OF SUPPORT COSTS All Support costs have been allocated directly to each project on a basis consistent with the use of resources.
31
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
12. FIXED ASSETS Stage Equipment £
Office Equipment £
Motor Vehicles £
Total £
at 1 September 2010
145,197
204,992
173,417
523,606
Additions
27,873
5,304
29,127
62,304
Disposals
(21,554)
(19,519)
(7,580)
(48,653)
151,516
190,777
194,964
537,257
121,609
153,468
111,947
387,024
11,728
23,855
33,782
69,365
(20,465)
(19,500)
(4,306)
(44,271)
at 31 August 2011
112,872
157,823
141,423
412,118
at 31 August 2011
38,644
32,954
53,541
125,139
at 31 August 2010
23,588
51,524
61,470
136,582
Stage Equipment £
Office Equipment £
Motor Vehicles £
Total £
The Message Group
Cost
at 31 August 2011 Depreciation
at 1 September 2010 Charge for year Disposals
Net Book Value
The Message Trust
Cost
144,197
204,992
173,417
522,606
Additions
27,873
5,304
29,127
62,304
Disposals
(21,554)
(19,519)
(7,580)
(48,653)
150,516
190,777
194,964
536,257
120,609
153,468
111,947
386,024
at 1 September 2010
at 31 August 2011 Depreciation
at 1 September 2010 Charge for year
11,728
23,855
33,782
69,365
(20,465)
(19,500)
(4,306)
(44,271)
at 31 August 2011
111,872
157,823
141,423
411,118
at 31 August 2011
38,644
32,954
53,541
125,139
at 31 August 2010
23,588
51,524
61,470
136,582
The Message Group 2011 £
The Message Group 2010 £
The Message Trust 2011 £
The Message Trust 2010 £
3,363
2,135
0
0
Disposals
Net Book Value
Finance Leases and Hire Purchase agreements Included within the net book value of £125,139 is £0 (2010: £0) relating to assets held under finance leases and similar hire purchase contracts, due to assets being sold or agreements paid in full during 2010. The depreciation charges to the financial statements in the year is respect of such assets amounted to £0 (2010: £0).
13. STOCKS Stocks of finished goods and goods for resale
32
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
14. DEBTORS Trade debtors
The Message Group 2011 £
The Message Group 2010 £
The Message Trust 2011 £
The Message Trust 2010 £
23,354
40,084
23,354
40,084
0
0
2,260
2,625
Other debtors
18,759
6,704
17,916
6,704
Prepayments and accrued income
75,703
129,390
75,703
127,612
117,816
176,178
119,233
177,025
The Message Group 2011 £
The Message Group 2010 £
The Message Trust 2011 £
The Message Trust 2010 £
Amounts due from Subsidiary
15. CASH AT BANK & IN HAND 15a. Investments Capital Reserve Account Treasury Reserve Account/Capital Bond/Scottish Widows Second Reserve Account
0
16,800
0
16,800
409,338
401,914
409,338
401,914
637,746
397,191
637,746
397,191
1,047,084
815,905
1,047,084
815,905
107,088
98,861
107,088
98,861
455
512
455
512
107,543
99,373
107,543
99,373
The Message Group 2011 £
The Message Group 2010 £
The Message Trust 2011 £
The Message Trust 2010 £
0
46,365
0
46,365
51,633
33,365
50,853
32,594
15b. Cash at Bank and in Hand Current Accounts Cash
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans & Overdrafts Trade creditors Other creditors including taxation and social security
128,822
76,012
128,685
75,972
Accruals and deferred income
40,865
84,270
40,315
84,270
221,320
240,012
219,853
239,201
2011 £
2010 £
72,076
197,403
Deferred Income Included in accruals and deferred income of £40,865 (2010 £84,270) is deferred income of: Deferred income brought forward
(358,339)
(193,994)
Added in the year
313,173
68,667
Deferred income carried forward
26,910
72,076
Income released in the year
Deferred income consists of grants and fees received in advance of projects and courses taking place after the year end. The resources are held as a liability until the charity becomes entitled to the income when the project or course takes place, at which point the income is released and recognised as an incoming resource. 33
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
17. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
During the year £76,400 was transferred to designated funds to cover the costs of projects which were otherwise not fully funded.
Creditors: Amounts falling due after one year is Nil (2010: Nil).
The Trustees received a large one-off donation in 2008 and resolved to designate £1m of these donations into a specific fund to underwrite future mission projects. At 31 August 2011 there is £400,000 available within designated funds for underwriting future mission projects, which may or may not be fully funded. These mission projects are outlined in the Trustees report under Plans for Future Periods. The Trustees also designated in 2008 the equivalent of the Net Book Value of Fixed assets for future mission projects, which totals £125,139 at 31 August 2011. A further £90,000 has been designated in 2011, for three specific future projects.
18. RELATED PARTY TRANSACTIONS The Trading Company sold merchandise stock to the value of £9,607 (2010: £11,576) at cost to the Charity during the year. Appropriate expenses (wages, premises costs, etc) were recharged from the Charity to the Trading Company at cost. During the year gifts totalling £4,794 were given to the Life Association, providing 4 months’ schooling for 50 poor children in India, and a further £7,500 for relief of the poor in India. These are related party transactions as Simon Hawthorne, Director of the Life Association is a close relative of Andy Hawthorne, Chief Executive of The Message Trust.
In addition, at the end of 2011 the Trustees have designated £14,356 (2010: £23,358) from General Funds for the purposes of making future donations to other organisations with similar Christian objects to The Message Trust.
19. RECONCILIATION OF MOVEMENTS IN FUNDS
The Eden Bus fund relates to the activities of two buses, one purchased by the Lancaster Foundation and leased to the Message Trust, the other purchased and kitted out from donations by the Lancaster Foundation. The costs of this second bus have been capitalised and charges will be made for depreciation over the useful life of the bus.
(see next page for table)
The Transfer of Funds from Unrestricted to Restricted, relates to support for Restricted Projects. The Eden projects (Harpurhey, Hattersley, Old Trafford and Salford Lifecentre) comprise teams of youth workers who regularly work within Secondary schools (e.g. taking RE lessons, assemblies, lunch clubs) preparing the groundwork for visits by LZ7 and other Christian bands, as well as being attached to a local church where they continue with after school activities. Since 1 September 2010, these projects have continued to operate independently, with the assistance of The Message Trust.
The Eden Buses, which are fitted with the latest in sound and visual technology, combine two roles. Firstly that of mobile expo’ units providing Christian teaching, information on the dangers of drugs and alcohol abuse, as well as sexual welfare and issues relating to family and homelessness. Secondly as fun areas for the young people to play games on the Dreamcast machines, have a snack and chill out, or watch a video on DVD. They work mainly alongside the various Eden teams around the city of Manchester.
A number of gifts are received in the year designated for the Eden work but not for a single specified project. These are accumulated in the Eden National Fund and then reallocated to specific Eden Projects at the end of the year as the Trustees see fit.
34
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
Movement in Resources
Balance at 31-Aug-10 £
Incoming £
Outgoing £
Transfers Between Funds £
Balance at 31-Aug-11 £
19a. Restricted Funds Eden Manchester
18,625
130,577
(147,935)
7,098
8,365
Eden National
28,427
195,583
(309,191)
122,390
37,209
Eden Harpurhey
0
17,652
(30,794)
13,142
0
Eden Hattersley
0
0
(2,131)
2,131
0
Eden Old Trafford
0
380
(20,696)
20,316
0
Life Centre Eden Grants
148
0
0
(148)
0
133,174
8,252
(71,137)
48,000
118,289
Eden New
68,017
9,757
(52,718)
0
25,056
Eden Bus
49,703
204,572
(259,510)
85,029
79,794
Message Enterprise
15,000
179,437
(64,988)
20,747
150,196
Mission Central Prison Fund Other Restricted Funds
0
62,385
(218,972)
156,587
0
(9,407)
167,356
(217,891)
66,028
6,086
988
151,149
(151,149)
0
988
304,675
1,127,100
(1,547,112)
541,320
425,983
19b. Unrestricted Funds 132,391
1,612,003
(1,002,527)
(617,720)
124,147
553,095
0
0
76,400
629,495
990,161
2,739,103
(2,549,639)
0
1,179,625
Tangible Fixed Assets £
Net Current Assets / (Liabilities) £
Creditors Due after One Year £
TOTAL £
Eden Central
0
8,365
0
8,365
Eden National
0
37,209
0
37,209
Eden Grants
0
118,289
0
118,289
Eden New
0
25,056
0
25,056
Message Enterprise
0
150,196
0
150,196
Eden Bus
0
79,794
0
79,794
Prison Fund
0
6,086
0
6,086
Other Restricted Fund
0
988
0
988
0
425,983
0
425,983
125,139
628,503
0
753,642
125,139
1,054,486
0
1,179,625
General Fund Designated Fund
20. ANALYSIS OF NET ASSETS BY FUND Restricted Funds
Unrestricted Funds
35
THE MESSAGE TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011
21. PENSIONS The charity operates a defined contribution pension scheme on behalf of its employees. All contributions due have been fully paid.
22. CONTINGENCIES The trustees have confirmed that there were no contingent liabilities which should be disclosed at 31 August 2011 (2010: Nil).
23. OPERATING LEASE COMMITMENTS At 31 August 2011 the Group was committed to making the following payments during the next year in respect of operating leases. Buildings £
Land and Other £
21,210
594
33,000
12,942
Leases which expire: Within one year Within two to five years
24. CAPITAL COMMITMENTS In 2011 the trustees entered into a long lease agreement with Manchester City Council for land for Message Enterprise projects at a consideration of £75,000. As at 31st August 2011 none of this amount has been paid and the trustees have thus authorised and contracted for future expenditure of £75,000 in this respect. In addition, at the end of 2011 the Trustees were given a Bus worth £24,000 from Stagecoach Group, for Eden bus projects. They have committed to spend £85,000 in total for the refurbishment of the bus. As at 31st August 2011 £85,000 being authorised but not contracted for.
36
The Message Trust Lancaster House Harper Road Sharston M22 4RG Tel: 0161 946 2300
Email: info@message.org.uk
www.message.org.uk Company Limited By Guarantee
Company Registration Number 03961183
Registered Charity Number 1081467