trustees’ annual report & financial statements · trustees’ annual report & financial...

Because we loved you so much, we were delighted to share with you not only the gospel of God but our lives as well. Thessalonians 2:8 NIV

Trustees’ Annual Report & Financial Statements for year ended 31 March 2016

Year in review

1

Contents

Page

Report of the Trustees (incorporating the Directors’ report and Strategic Report) for the year ended 31 March 2016 ........ 2

Reference and administrative details of the charity, its Trustees and advisers .................................................................... 2

Introduction ............................................................................................................................................................................. 3 Aims ............................................................................................................................................................................... 4 Main objectives for the year and our Strategic Plan ..................................................................................................... 4

Strategic Report ....................................................................................................................................................................... 4 Review of activities and performance during the year .................................................................................................. 4

Volunteer involvement ............................................................................................................................................. 4 Monitoring achievement .......................................................................................................................................... 5 The launch and development of Guardians of Ancora as a rich, compelling app experience for children ............... 5 The establishment of new and growth of existing models of mission through sport ............................................... 5 The development and integration of all-year-round mission opportunities ............................................................. 6 The growth of Local Mission Partners (LMPs) .......................................................................................................... 7 Underpinning operational approaches .................................................................................................................... 7

Plans for next year and beyond ..................................................................................................................................... 9 Financial Review ............................................................................................................................................................ 9

Financial position ..................................................................................................................................................... 9 Reserves policy ....................................................................................................................................................... 10 Principal funding sources ....................................................................................................................................... 10 Fundraising performance ....................................................................................................................................... 10 Investment policy and performance ....................................................................................................................... 11

Principal risks and uncertainties .................................................................................................................................. 11

Structure, governance and management ............................................................................................................................. 11 Governing document and constitution ........................................................................................................................ 11 Objects of the charity .................................................................................................................................................. 12 Recruitment and appointment of Trustees ................................................................................................................. 12 Induction and training of Trustees............................................................................................................................... 12 Organisational structure .............................................................................................................................................. 12 Pay policy for senior staff ............................................................................................................................................ 13 Grant-making policy and principles ............................................................................................................................. 14 Appointment of external auditor................................................................................................................................. 14

Independent Auditor’s Report to the Members of Scripture Union ........................................................................................ 15

Statement of financial activities incorporating an income and expenditure account ............................................................. 16

Balance sheet ............................................................................................................................................................................ 17

Cash flow statement .................................................................................................................................................................. 18

Notes forming part of the financial statements ........................................................................................................................ 19

2

Report of the Trustees (incorporating the Directors’ report and Strategic Report) for the year ended 31 March 2016

The trustees are pleased to present their annual directors’ report and financial statements of the charity for the year ended 31 March 2016 which are also prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). Reference and administrative details of the charity, its Trustees and advisers

Status Scripture Union is a charitable company limited by guarantee. It is governed by its Articles of Association which were adopted with effect from 1 October 2009

Registered name Scripture Union (also known as ‘SU’, ‘SU England and Wales’ and ‘Scripture Union Cymru’)

Charity registration number 213422

Company registration number 39828

Principal & registered office 207-209 Queensway, Bletchley, Milton Keynes, MK2 2EB

Trustees Mr Keith Civval Chairman Mr Derek Adams Treasurer Mr Clive Beard Mr Stephen Hallett Mrs Stephanie Heald Rev Dr Edward Scrase-Field Mrs Clare Walker Mr Timothy Warren (appointed 30 September 2015)

Leadership Team Mr Alan Charter Director of Mission Development (Regional & Residential) (until 31 August 2015) Mr Terence Clutterham Director of Mission Development (Published Resources) Rev Timothy Hastie-Smith National Director Mrs Keren Mallinson Director of Mission Development (Regional and Residential) (from 22 February 2016) Mr David Thorpe Managing Director

Company Secretary Mrs Susan Winning Bankers HSBC Plc, 49 Corn Street, Bristol, BS99 7PP

Solicitors Pothecary Witham Weld, 70 St Georges Square, Pimlico, London SW1V 3RD

Auditor Grant Thornton UK LLP, Grant Thornton House, 202 Silbury Boulevard, Milton Keynes MK9 1LW

Investment advisers Rathbones Investment Management Limited, 1 Curzon Street, London W1J 5FB

Insurance brokers Zurich Municipal, Zurich House, 2 Gladiator Way, Farnborough GU14 6GB AON UK Ltd, The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AN

Report of the Trustees (incorporating the Directors’ and Strategic Reports) for the year ended 31 March 2016

3

Introduction

Last summer (2015) at the end of a marathon 24 hour tour that took in Boston Spa, Liverpool and Margate, I found myself on blustery Perranporth beach being interviewed by Blue Peter presenter, Radzi, about the recently launched app Guardians of Ancora. His questions were insightful and provocative, and after a day of meeting people, and familiarising himself with the game, he declared himself impressed. This edgy Manchester lad, the living embodiment of Generation Y was impressed! And his reason? The huge risk that SU had been prepared to take in placing God’s Word out in the digital space freely available, uncontrolled, uncurated, and accessible to all. This willingness to take God’s Word out into the public space has lain at the heart of SU mission for the past 150 years. The reason why Josiah Spiers’ first accidental ‘beach mission’ to children and young people in Llandudno has taken on such symbolic importance to the Movement, is that it represents the ‘riskiness’ of taking God’s Word into a place where we are no longer in control. Instead we find ourselves trusting in both the power of God’s Word and its attractiveness and ‘self-accreditation’. When Charles Spurgeon was asked to defend the Bible he responded with the oft quoted words: ‘Defend the Bible? I would sooner defend a lion!’, such is its power.

That is SU – trusting in the power of God’s Word to reach and change the children and young people of this land. Our significant investment in mission through sport this year similarly reflects our desire to put God’s Word in the places where children and young people live and play. Whether it is ‘adopting a MUGA’ (Multi use Games Area) or running a football club in the Cotswolds, it is about creating a ‘safe neutral space’ for Christians to make the love of Jesus known to those who would never otherwise darken the doors of a church.

With only an estimated 5% of children and young people having any meaningful relationship with the church, we can either huddle together in our comfort zone, pouring what limited resources we have into a shrinking pool, or we can be faithful to our calling and stride right out into the world where God is already at work and join in. As a Movement we are called to reach the 95%, and both Guardians of Ancora and mission through sport give the church tools to go to children and young people wherever they may be found.

It is so very easy (and understandable) to want to take refuge in church buildings where we are in control, and try to attract a few children on the fringes to come in to join our club. As a children and young people’s mission movement however, we are not afforded the luxury of ‘staying indoors’ and preaching to the converted! This is God’s world and his Word is for all. We have to find new ways of articulating faith in an increasingly sceptical and suspicious world. Our ‘digital transformation’ project has forced us to face difficult questions about explaining who we are without resorting to Christian jargon. Furthermore, as a movement specifically established to share the good news of Jesus with the next generation, we need to be able to justify our focus, vision, motivation and our methods openly and honestly.

The model of SU mission, be it on the beach in Abersoch or Southwold, or on the streets of Romford or Byker is particularly relevant to the 21st century. It creates a context for faith sharing that is open and accessible, in a place where those who are not Christian feel at ease and are therefore more responsive. Picture a beach mission in full swing: you cannot but be struck by the concentric circle of listeners surrounding the action. In the thick of it: the mission team and the children. Standing apart are the parents, most of them non-churchgoers. Sitting on the sea wall are a bunch of teenagers – older brothers and sisters – trying to look uninterested but itching to join in! A small knot of passers-by stop to watch what’s going on, and more children stand apart with their parents desperate to join in. What an opportunity. Christians operating way outside their ‘safe’ zone and yet adopting a style of mission that has a pedigree that is hundreds of years old! Everything the team says is open to be questioned and scrutinised by cynical hearers, presenting the constant challenge which it is our duty, responsibility and joy to take up: to show in word, deed and life why the love of Jesus really is the best news in the world, transforming both individuals and communities in ways that an unchurched world can understand. Welcome to SU.

Rev Tim Hastie-Smith National Director

Scripture Union – pioneering and creating opportunities for children and young people to explore the Bible, respond to Jesus, grow in faith and become sharers of the good news of Jesus themselves


4

Aims, objectives and activities

Aims Working with the churches, SU aims to make God’s good news known to children, young people and families, and to encourage people of all ages to meet God daily through the Bible and prayer so that they may come to personal faith in our Lord Jesus Christ, grow in Christian maturity and become both committed church members and servants of a world in need.

We work to fulfil these aims as effectively as possible with the resources that God gives us.

Our vision is for a new generation of children and young people who have a vibrant, personal faith in Jesus.

Our mission is to pioneer and create opportunities for children and young people to explore the Bible, respond to Jesus, grow in faith and become sharers of the good news of Jesus themselves. Our priority is to reach those who don’t yet know Jesus.

In all our work, we aim to be biblical, prayerful, Christ-centred, Spirit-led, servant-hearted and child-focused. Bible-focused evangelism with children and young people is a clear distinctive.

Main objectives for the year and our Strategic Plan The Trustees confirm that they have referred to and given due regard to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and planning future activities. The following pages highlight just some of the ways in which God has been at work through SU to deliver Public Benefit in the past year as we have continued towards achieving our strategic goals.

As set out in the Movement’s Strategic Plan, we sought, from April 2015, to fulfil our long-term vision by pursuing the following primary aims:

• the launch and development of Guardians of Ancora as a rich, compelling app experience for children • the establishment of new and growth of existing models of mission through sport • the development and integration of all-year-round mission opportunities • the growth of Local Mission Partners (LMPs)

Strategic Report

Review of activities and performance during the year The focus of all of SU’s activities is on sharing the good news of Jesus Christ with the next generation of children and young people in the belief that the gospel is life-transforming and life-enhancing. It is our belief that the gospel has a positive impact on individuals who, in turn, have a positive and transformative impact on their families and communities.

Volunteer involvement SU is at heart a volunteer movement. We thank God for the volunteers who give their time, skills and enthusiasm in a variety of ways – the vast majority in direct mission activity. Volunteers bring action to the Movement, are a rich source of information about the contexts in which they live and are instrumental to the formation of our strategy. Many work in unseen ways, but during the year there were 3,464 known opportunities for volunteer involvement – the equivalent of 7,733 working weeks, or 164 full-time staff (5 fewer than last year). Without this body of volunteers, which included 2,119 individuals who volunteered on one or more of SU’s holidays, missions or national events, a vast amount of the Movement’s mission activity simply would not happen and we pay tribute to their commitment and generosity in giving their time. Of the volunteer opportunities, 40 were concerned with governance of the Movement (for example, Trustees and Council members) and could not be filled therefore by staff. These contributed an additional estimated 42 working weeks.

In addition, our local mission partnership programme (see page 7 and Note 4), an integral part of the regional teams, involves many hundreds of volunteers supporting over 130 workers employed by 72 trusts.

The majority of opportunities for volunteer involvement are connected with local, regional and national SU events, but a growing number of volunteers are becoming involved in regional initiatives, some of which are outlined in the following pages of this Report. In addition, seven people worked with us during the year as part of our 10:2 leadership development (young leader) programme.

“Year after year this community of caring people with amazing hearts for good never fail to inspire and encourage (me) in my faith. Each one of these people are so special and give me a tangible glimpse of Jesus’ love for me, whether it be a hug or a chat, even in offer(ing) to wash up for each other people and in all manner of

other things. Thanks again for the making Harriers [residential holiday] so great.”


5

We have not included in our financial statements the value that volunteers bring through the time which they dedicate to the mission of the Movement, but we thank God and we thank them for it all.

Monitoring achievement The Trustees place great importance on ensuring that progress made in achieving the Movement’s strategic objectives is measured and monitored appropriately. Key performance indicators are identified for each of the Movement objectives and, alongside relevant commentary, form the basis of a bi-monthly progress report: the Mission Update, which is reviewed by the Leadership Team and the Board before being circulated to Council members and the full staff team. In addition, detailed monitoring and evaluation of activities, projects and programmes takes place on an ongoing basis by the relevant teams.

The launch and development of Guardians of Ancora as a rich, compelling app experience for children This year saw the successful launch of the Bible game app for 8- to 11-year-olds, Guardians of Ancora. The app is free to download and is accessible to anyone with a suitable device and internet connection, be this at home, in communities or in schools. A significant app update in January 2016 made all Bible Quests available to all players from the start, simplified actions in the gameplay, and signposted what more is available within the game. These changes were informed by player metrics. A further update in March 2016 was shaped by the response of focus groups with children.

We are thankful to the many people who have contributed towards the development of Guardians of Ancora as a key tool to achieve our mission, including members of the project team, the children and others who have taken part in research and the many critical friends of the project.

A key area of focus during the year was to secure significant global partnerships and additional externally-sourced funding of at least £800,000. A total of £801,000 of additional funding was secured during the year towards the ongoing development and distribution of the game. In the United States, partnerships are now being explored to grow reach, revenue and impact in the belief that the game needs significant visibility before it will attract serious sponsorship.

At the start of the year our aim was to reach 100,000 users globally and assess through metrics the game’s potential to support faith formation in children. Against a more realistic target of 33,000 ‘created accounts’ (those who complete the onboarding process to get them into the Bible Quest gameplay), the number was 30,643 by the end of March.

Expenditure on the launch and development of Guardians of Ancora during the year totalled £923,000. The total cost of the project to the Movement as at the end of March 2016 amounted to £2,778,000 against total income received of £1,965,000.

The establishment of new and growth of existing models of mission through sport Existing models of mission through sport have been supported and grown in Widnes and Gloucestershire, and through resources produced as part of Engage for the rugby world cup (September 2015). These models see free activities provided through local churches for schools and in community centres and parks. New models have been established in Liverpool and London and through Sweaty Church (a new approach for church services combining sport, games and competition with the opportunity to explore the Christian faith). A clear focus of the SU role as part of the mission-through-sport landscape has been identified thanks to in-depth research that was undertaken. A mission-through-sport strategy has been defined that will enable mission through sport to develop further next year in five key areas.

“I have autistic children. The game really keeps their attention with the vibrant colours. It really helps them to learn about the Bible and retain what they learn. This is like gold dust, I really appreciate what Scripture Union has done. Keep up the good work.”

“It's so exciting to see Guardians of Ancora used by so many children to help them

explore the Bible. The smile on their faces as they play in the stories of Jesus, the quiet

concentration as they take time to reflect in the prayer space, and the spring in their step as they sing along to the latest songs is such a joy to see, as young children hunger for a relationship with our Lord. It’s a fabulous way to get children immersed in the Bible.

Get your children involved & make sure they tell their friends.”

Gemma Hunt, TV presenter and actor

“It’s the best game ever! I could spend all day playing it.” Ethan, age 7

“Sports Ministry is a critical part of the team for St Paul’s @ 4. We have many children and young people (particularly in 8-14 age) who come on their own and stay – a key part of this is the sports ministry. Some have found faith, and indeed some have then brought their parents to church who have also met Jesus. Without the sports ministry project we could not sustain St Paul’s @4.” St Paul’s @ 4 is an informal Sunday afternoon church service in Widnes which has seen considerable growth from locals who are ‘unchurched’.


6

A key aim during the year was to appoint a national Sports Mission Leader and establish three new Local Mission Partners (LMPs) with a sports specialism. Richard Witham started in this role in December 2015. Two new LMPs with a sports specialism have been formally established during the year: Pimlico and Sweaty Church (multi-location). Five other projects have been set up in Liverpool/Toxteth, Hoxton, Tottenham, Kings Cross and Covent Garden.

During the year, we continued to work to increase the scale of this area of our mission and to double the number of children and young people reached by mission-through-sport, from 2,500 to 5,000. With the growth of work in Widnes, new projects in London and Liverpool, distribution of a significant number of Higher Sports kit bags (a resource enabling churches to run simple sports holiday clubs in their communities), new residential and non-residential sports camps and Engage training and resources, the number of children and young people reached through sports mission in 2016 exceeded 5,000.

During the year a number of outlines for Sweaty Church have been written and the process of updating the Higher Sports kit

bags and manuals commenced. The Games resource was updated for the 2016 European football championship and a small set of resources produced to be used in school and church contexts for both the 2016 Euros and Rio Olympics.

Income received during the year for mission-through-sport activity totalled £17,000. Expenditure on mission-through-sport activity during the year totalled £160,000, including grants of £110,000 of which £58,000 relates to multi-year grant commitments which are payable in future years (see Note 4, page 22).

The development and integration of all-year-round mission opportunities It became clear during the year that this was more of an overarching principle than a stand-alone strategic aim.

During the year our aim was to increase the number of children and young people on SU holidays and missions by 5% (6,370 to 6,890), and the participation of unchurched children and young people on holidays from 14% to 20%. Figures for the year showed a decline in the numbers of children and young people attending of about 10%. We have therefore focused our efforts on improving our marketing, making our holidays more accessible and enhancing the range of opportunities available so that we can attract more children and young people with no church connections. We aimed also to grow the scale of the mission initiatives around holiday clubs and It’s Your Move by 10%, including sales of published resources. Sales of the It’s Your Move resource grew by 15% during the year, somewhat due to customers purchasing the product earlier this year than in previous years. This represents distribution to about 20% of the national year 6

group. Sales of holiday club resources for leaders fell by 4% during the year but related sales for resources for children increased by 40% due to a new resource for the 5-7 age group.

We did not pursue our aim this year of consulting with churches in relation to the effectiveness and potential of seasonal ministries and associated published resources, consistent with our recalibration of this aim as an operational principle.

“A lad called [Jamie], who I see in St Cleopas School lunchtime sports and detached football session, has

been struggling but enjoys coming along and trying to join in. His mum came along to chat to me because

[Jamie] had been telling her how much he enjoys it. She wanted to know why we were doing it. I had a great

chat with her about why the church does mission and the conversation finished with her saying maybe she should go along to Cleo's church.” Worker at St Cleopas

468 community project, Liverpool.

“I just wanted to say a heartfelt thank you for giving C the highlight of his year, Longbarn camp and thank you for the funding towards this trip which helps immensely with the costs.”

“The way people opened up and share problems and God started to heal wounds in a variety of people including one youngster who said, ‘I didn’t know where God was during the last year but now I can see’.” Team member at Polzeath mission

“We wanted to say a big ‘Thank you!’ to you and every member of the team for all you did to give L such a positive experience. She can be very wary of trying new experiences but having been so warmly welcomed at Lagger [residential camp] her confidence has definitely been boosted. She was keen to sing the songs you taught, recite the verses and do ‘popcorn prayers’. She also asked me

whether Jesus ever speaks to me so that led into a good conversation. I'm sure Jesus was using Lagger to draw her closer.”


7

The growth of Local Mission Partners (LMPs) A growing cross-movement understanding is developing about the vital need to support and help LMPs to fulfill their mission, rather than just grow numbers.

During the year our aim was to achieve growth of at least 10% (from 67) in the number of LMPs. At the end of March 2016, there were 72 established LMPs, employing over 130 staff workers. We narrowly missed our target of 10% growth as gains from establishing new LMPs were offset by our relationship with four trusts ending during the year.

We planned during the year to work alongside at least 50% of LMPs in the discernment of a shared strategic vision and to consult with all LMPs in relation to the effectiveness and potential of seasonal ministries and associated published resources. As plans were being drawn up, it became clear that the focus of the consultation should be on the effectiveness of the relationship between the LMP and SU. The consultation showed positive levels of satisfaction amongst LMP trustees and workers with Scripture Union. The next steps will be for team leaders to engage with the LMPs individually on specific issues raised by them and to develop an enhanced method of evaluating LMP effectiveness.

Grants approved during the year to support the start-up and development of local mission partnerships totalled £118,000, of which £44,000 relates to multi-year grant commitments which are payable in future years (see Note 4, page 22).

Underpinning operational approaches To support our key aims and objectives we continued during the year to develop and implement the following mission approaches:

Published resources – We aimed during the year to create a sustainable and growing reach and impact through digital and print publishing, with a mission focus and in conjunction with partner agencies and key suppliers. Overall, sales were 8% lower than budget, and 7% lower than last year. Work has begun on planning the acceleration of the Publishing Strategy, especially in the need to make more content available direct to end-users. Some exciting new, mission-focused titles are expected to be published early in the 2016-17 financial year.

Expenditure on publishing activity during the year totalled £3,456,000 (2015: £3,208,000). Of this amount, £1,728,000 (2015: £1,651,000) was spent on digital publishing, which includes WordLive, LightLive, SchoolsLive and Guardians of Ancora, and £1,728,000 (2015: £1,557,000) was spent on conventional publishing activities, including a relevant proportion of project costs. Income from publishing sales and royalties totalled £ 1,675,000 (2015: £1,840,000), resulting in an overall deficit for conventional publishing of £53,000 (2015: surplus of £283,000)

Field mission – During the year our aim was to develop and strengthen partnerships with other mission agencies, and grow the number and type of volunteers. We are working in partnership with a broad range of mission agencies including Urban

Saints (regional teams), HOPE Revolution (Chatter Box mission tool), Youth for Christ (local mission partnership), Hand in Hand (children’s ministry conference) and the Youth Work and Youth Evangelism conferences. The Servant Queen booklet (schools version) was published in partnership with HOPE, Bible Society and the London Institute for Contemporary Christianity. We also have strong links with Cliff College, Moorlands College and St Mellitus College for children and youth mission training. Young leader development has continued on holidays, missions and events and within regional teams.

The number of volunteers on SU holidays, missions and events fell by around 4% to 2,119.

Expenditure on face-to-face mission activity during the year totalled £2,974,000 (2015: £2,903,000).

Mission resourcing – we aimed to grow capacity for mission development through enhanced fundraising and more cost-effective support processes. Unrestricted gift income held steady at £1,928,000. Restricted gift income, mainly for Guardians of Ancora, reduced by 13% to £1,370,000. We had a very strong year for legacy income with £2,712,000 (2015: £1,165,000) received. An experienced fundraiser is now in post developing income from trusts and this should reap benefits next year. Difficulties in recruiting other fundraising staff have continued.

“Having personally become involved in Criccieth as a student back in the 80s I feel passionately that SU holiday clubs are a mission field that students can serve in. It was a great encouragement that we had approx. 15 current or very recent students on team, including a young man who was working as a UCCF Relay Worker and has now moved on as a staff worker.”

“Scripture Union helped Archway to make a successful application to be registered as a charitable trust, as well as giving us a generous start-up grant which enabled us to get off the ground. We have had ongoing support and encouragement from our regional team leader who keeps in regular contact with the Archway Children and Families’ Worker. The Community in Mission conference earlier this year was particularly encouraging and it was a great opportunity to make connections with other Local Mission Partners.” Archway Trust, an LMP in Northamptonshire, was established in 2015


8

We are thankful to each and every donor who supported SU’s mission financially during the year, whether they gave for the first time or have been supporters for many years.

A mission enabling strategy has been developed to advance the effective use of SU’s financial, technical, physical and people resources and implementation plans are being worked on.

Projects – During the year we worked on a number of projects. One significant project was to develop a new website, to improve communications and facilitate the growth of the SU community – proposals and costings for the digital transformation project (DTP) were approved by the Board in March 2016. The project will help to grow the reach and impact of SU’s mission by clarifying the essence of who we are and simplifying what we do.

In pursuing our aim during the year to establish a new national office, maximising the benefit of the Movement’s assets, we are delighted to report that the purchase of a new national office in Milton Keynes was completed in March 2016. Relocation is anticipated later in 2016 after fit-out work has been completed. Having achieved our aim to review the governance structure of the Movement, consultation on potential membership models is continuing.

International mission

There are over 130 SU movements around the world working in over 120 countries, all of which are united by Scripture Union’s Aims, Belief and Working Principles. Each national movement is independent and seeks to work through local people in ways that are sensitive to the national culture. In most countries the number of staff is very small compared to the large number of volunteers.

Internationally, SU staff and volunteers pray for and support each other, share ideas and resources and have joint projects and publications. Extended partnerships have also been established between countries to provide additional support and funding.

SU in England and Wales has continued to play a part in shaping and implementing SU International’s transition into a new way of supporting global mission. To facilitate the transition, the National Director visited a number of international Scripture Union movements during the year and more visits are planned for the 2016–17 financial year.

Our aim during the year was to pursue more integrated mission in partnership with other SU movements. Alongside the focused allocation of grants to projects that are in line with the charity’s aims and objectives, there has been a significant strengthening of links with Tajikistan and Romania championed by the South East team, and with South Africa, championed by the South West team. Links with Armenia (North West team) and Novosibirsk and Ukraine (North East team) are developing more slowly.

Each year, SU in England and Wales gives an agreed percentage of our gift income, unrestricted legacies and conventional publishing surplus to other SU movements around the world. For 2015–16, these grants totalled £711,000 (2015: £276,000) of which £362,000 (2015: £nil) relates to multi-year grant commitments and is payable in future years (see Note 4 on page 22). The funding of two additional staff workers in Nepal, a gathering of central Asian youth and children’s workers, a new mission centre in the north of Madagascar and an office for SU Nepal, were among the projects supported. In addition, we receive gifts from our supporters which we use to make grants to support specific SU projects in other parts of the world and these totalled £204,000 (2015: £187,000) during the year.

“SU England and Wales' grant to SU Madagascar has enabled the building of a mission centre in the north west of the island. Locals love the new building and are delighted that the Christians care about them. SU Madagascar has a staff worker living in the new building running activities for the children and young people of the neighbourhood which are very popular. Locals drop by regularly asking for a tour of the building.”

“SU Nepal's new mission centre, the purchase of which was funded in part by a grant from SU England and Wales, will be opened officially in August 2016. The new building has made it possible for SU Nepal to run new activities for children and young people.

The two additional staff workers in the East and West of the country have doubled ministry activity in the country!”


9

Plans for next year and beyond As set out in the Strategic Plan introduced in April 2016, we will focus on the following key pioneering projects over the next year and beyond in order to achieve our mission:

• establish new sports-mission models and grow the reach and impact of existing ones; • grow the reach and impact of Guardians of Ancora, and develop the mission tools to support its use in homes,

schools and churches; • grow the reach and impact of SU’s mission, by clarifying the essence of who we are and simplifying what we do,

through the digital transformation project.

We will use funds that have been set aside in our Project and Development Fund (see Note 13 on page 26) in pursuing our primary objectives for 2016–17 (see below), including around £150,000 for mission through sport, a further £365,000 for Guardians of Ancora and £650,000 for the digital transformation project.

For mission through sport: • Establish three mission-through-sport hubs of excellence. • Develop a programme of training for staff, LMPs, sports ministers and mission-through-sport leaders of the future. • Raise funding for mission-through-sport activity through production of effective fundraising tools and securing of

grants.

For Guardians of Ancora: • Assess the potential of Guardians of Ancora for use in schools and if appropriate, develop required game

modifications and supporting published resources. • Engage churches in helping all players be mission agents by sharing Guardians of Ancora with their friends. • Develop and implement income-generation strategies for Guardians of Ancora.

For digital transformation • Communicate the digital transformation strategy – including mission, vision, content and impact – to the wider

Movement and stakeholders. • Start delivery of some elements of the digital and brand components of the project.

Ongoing mission approaches To support our pioneering projects and objectives we will continue to develop and implement the following mission approaches:

• Increase the number of children and young people on holidays, missions and other face-to-face events. • Increase reach and impact through the creation and distribution of content for mission. • Develop capacity for mission through enhanced fundraising. • Facilitate mission development by cost-effective support processes. • Pursue integrated mission in partnership with other SU movements.

Financial Review

Financial position We are grateful to God and our supporters for the financial resources that have enabled the continuation of SU mission activity in 2015–16. We achieved an overall surplus of £416,000 compared to a surplus of £446,000 in the previous year, benefitting significantly from a high level of legacy income. Our balance sheet is strong with total unrestricted funds of £6,753,000 which includes £2,840,000 in the Project and Development Fund (PDF). We expect to spend these PDF reserves over the next two to three years as we implement well-developed project proposals aligned with our strategic plan. This will result in financial deficits for these years as the PDF reserves are progressively spent.

The level of annual unrestricted donations increased slightly from £1,926,000 to £1,928,000. Overall total gift income, including restricted gift income, amounted to £3,298,000 representing a reduction of 6% from £3,502,000 in the previous year. This included substantial restricted gift income of £771,000 for Guardians of Ancora and gifts of £204,000 for SU activity overseas. Annual unrestricted legacy income increased significantly from £1,164,000 to £2,708,000 including that accrued at the year-end. Holidays and mission income showed a 5% increase from £572,000 to £601,000 but publishing sales income fell from £1,840,000 to £1,675,000 which is a reduction of 9% due to sales declining in a contracting market place.


10

Total income at £8,456,000 was £1,075,000 higher than in the previous year primarily due to the significant increase in legacy income highlighted above whilst total expenditure at £7,938,000 was £844,000 higher than in the previous year primarily due to the allocation of multi-year grants made in furtherance of the charity’s objects nationally and internationally.

For the 2016–17 financial year, the Trustees aim to spend down reserves in line with our reserves policy (see below) and as such have budgeted for General Fund expenditure that exceeds income by around £600,000, including for refurbishment and fit-out of the new office. In addition, expenditure of £1,565,000 from PDF reserves on projects and mission development is planned.

Reserves policy The status of reserves is included within monthly financial reporting for review by the Trustees throughout the year. The level of reserves required is reviewed annually within the process of budget preparation for the following year to ensure that it remains relevant to SU’s current and future position.

The Trustees have reviewed the Movement’s needs for reserves in line with Charity Commission guidance. Factors taken into account included the need to cover fluctuations in gift and legacy income, level of debtors and unforeseen and critical requirements for capital expenditure.

The Trustees consider it prudent to set the target level of General Fund reserves at between three and six months of unrestricted normal ongoing charitable expenditure. At 31 March 2016, the General Fund stood at £2,770,000 (2015: £1,593,000) which represents 6.3 months (2015: 3.8 months) of ongoing unrestricted charitable expenditure for the Movement. This is due to a transfer from the Property Fund and the reserves level will fall back into the agreed range during the course of the year as a result of the budgeted expenditure noted above. In addition to the General Fund, the Trustees have set aside designated funds as described below and in Note 13 (page 26).

The level and timing of legacy income is uncertain and continues to be budgeted at a conservative level. Legacy income above the budgeted level is used to provide designated reserves within the Project and Development Fund (PDF). Spending from the accumulated reserves in the PDF covers the investment cost of a range of significant one-off development initiatives to grow the scale and impact of SU’s mission activity. PDF expenditure in the year totalling £996,000 was used for Guardians of Ancora (online children’s Bible engagement), for regional, publishing and website developments, for mission through sport and for local mission partnerships. The total amount expended was lower than had been planned due to some projects starting later than expected. The balance in the fund at 31 March 2016 was £2,840,000 (2015: £1,914,000) following the transfer of £1,922,000 from the General Fund which had been boosted by higher than anticipated legacy income.

PDF funds are set aside to grow SU’s mission scale and impact, and the Trustees have current plans in place to expend the PDF reserves over the next two to three years. SU plans to spend an estimated £765,000 on development of Guardians of Ancora over the next two years, £250,000 on mission through sport and £900,000 on digital transformation. Other PDF expenditure budgeted for the next two years includes funding of additional development worker posts at £240,000, start-up funding for local mission partnerships at £165,000 and young leader development at £110,000.

Further investment in Guardians of Ancora and other mission development projects will be needed in future years for which major donor and trust funding will be sought alongside any ‘above budget’ legacy income that is received.

Following the purchase of a national office, the remaining balance of £1,190,000 in the Property Fund was transferred to the General Fund. Further expenditure in the region of £300,000 is expected for refurbishment and fit-out of the purchased building.

Principal funding sources SU relies substantially on voluntary income to fund its activities. Other income shown in the Statement of Financial Activities includes sales of publications, fees for holidays, training and other events. When setting a price for our paid-for events and published resources, appropriate consideration is given to how we can both maximise mission benefit and avoid pricing being a barrier to participation and partnership. We receive no funding from the government or other statutory bodies, nor from the National Lottery.

Fundraising performance Income received from donations during the year fell by 6% from £3,502,000 to £3,298,000. Two principal factors which contributed to this overall decline was a reduction from the previous year in the level of gift income received from a trust restricted for development of Guardians of Ancora, and poor performance of one of our national appeals compared to strong performance for the corresponding appeal the previous year. Donations came predominantly from individual supporters (87%), with the balance being received from churches (5%), corporate trusts (3%), family trusts (3%) and other


11

sources (2%). Income received from legacies increased from £1,165,000 to £2,712,000. Receipt of two legacies, one around £1.0m and the other around £0.5m, contributed to this significant increase.

We place a high priority on the need to inform supporters of our activities and our magazine Connecting You was sent to over 50,000 (2015: 30,000) supporters four times during the year. The significant increase in circulation is as a result of email communications being sent to previously unconnected supporter groups.

Investment policy and performance A portion of SU’s reserves available for investment has been identified and held as long-term reserves (£1,552,000, March 2016) and invested to grow capital. This includes a capital endowment (£655,000, March 2016). The remainder is held as short-term reserves and invested to protect capital security and to generate income for charitable purposes. Income from the General Fund portfolio is reinvested whilst income from the Endowment is paid out as restricted income to meet expenditure for the mission work of SU at home and especially for work in schools. The Trustees review periodically the level of general reserves and cash flow demands to ensure that the level of reserves available for investment remains appropriate for the Movement.

SU seeks to produce the best financial return within an acceptable level of risk. Since April 2010, the investment objective for the long-term reserves has been to outperform a benchmark comprising 80% FTSE-All Share index Total Return and 20% FTSE UK Gilts All Stock Total Return. From July 2016, the benchmark was changed to comprise 75% FTSE-All Share index Total Return, 20% UK Gilts All Stock Total Return and 5% FTSE All UK Property index. Rathbones, our investment managers, continue to manage our investment portfolio against the agreed benchmark.

SU is reliant on fundraising and donations for its mission activities. Investment assets are held as reserves. The key risk to long-term reserves is inflation, and the assets should be invested to mitigate this risk over the long-term. SU aims to diversify its assets through investment in a multi-asset investment fund. Hedge funds and structured products are not permitted.

SU’s ethical investment policy specifically excludes companies known to be dealing in tobacco, arms, alcohol and gambling. The Trustees are aware that this may have some impact on investment performance.

SU holds a low risk portfolio of bonds and high quality equities, broadly split 20:80 as at 31 March 2016. To the year ending 31 March 2016, our fund produced a total return (after fees) of -4.38% (2015: +10.11%). This represents a small underperformance of the benchmark which declined -2.42% (2015: rose by +8.06%). At 31 March 2016, the portfolio yield was 2.39% (2015: 2.14%).

Principal risks and uncertainties The movement has risk-management policies and procedures through which risks arising from existing operations and strategic developments are identified and evaluated. The leadership team is required to identify risks associated with activities, assess their potential impact and probability of occurrence, and report on procedures in place or being developed to manage the risks. Significant risks are highlighted for consideration and monitoring by the Board and the suitability of the risk review and management process is monitored by the Audit Committee.

During the year, management and the Trustees carried out detailed reviews of potential reputational, financial, mission and operational risks to the Movement. The major risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to manage those risks.

Two primary risks have been identified as follows:

• Sustained decline in publishing sales – Key elements of the management of this risk are publishing transformation activity – aligning content creation, distribution and brand perception with our mission – to grow impact and gain optimum mission/financial value from our commercial publishing business; regular reviews at publishing project and finance meetings; and monitoring mission impact through WordLive, LightLive and Guardians of Ancora.

• Criticism, incident or allegation regarding work with children – Key elements of the management of this risk are safer recruitment processes, compliance with externally-set activity standards and regular training and reviews – including with mission partners.

Structure, governance and management Governing document and constitution Scripture Union was established in 1867. It is a charitable company limited by guarantee, incorporated on 28 October 1893 and registered as a charity on 3 January 1966. It is governed by its Articles of Association which were adopted with effect from 1 October 2009.


12

Objects of the charity The charitable objects of Scripture Union, as set out in the Articles of Association, are to advance Christianity by sharing the good news of our Lord Jesus Christ with people throughout the world. The objects are carried out in particular with, but not limited to, working with churches: • by making God’s Good News known to children, young people and families; and • by encouraging people of all ages to meet God daily through the Bible and prayer so that in each case they may come to personal faith in our Lord Jesus Christ, grow in Christian maturity and become both committed church members and servants of a world in need.

Recruitment and appointment of Trustees The Nominations Committee (comprising representatives of Trustees, Council members and staff) originates and maintains necessary policies and procedures for the recruitment, appointment and induction of all new Trustees. The committee assesses the composition of the Trustee body in consultation with the Chair of Trustees and, in light of approaching retirements, pro-actively seeks applications from potential Trustees, giving specific consideration to vacancies requiring particular specialist skills.

The Council elects new Trustees and re-elects any who have come to the end of their current term of office and who are eligible for re-election. Trustees, who are also directors of the charity for the purposes of the Companies Act, are appointed for a three-year period in accordance with the Articles of Association. After serving a maximum of three consecutive terms of office, a retiring Trustee is not eligible to serve any further term of office until at least one year of non-service has elapsed.

The Articles of Association provides for a minimum of six trustees, to a maximum of ten trustees.

Induction and training of Trustees All Trustees need to have a broad understanding of the Movement and ideally will have a comprehensive understanding of at least one aspect from a current or previous involvement. Every effort is made to broaden Trustees’ knowledge on an individual level so that they are up-to-date with the whole of the Movement and the full Strategic Plan. Where there has not been any previous involvement, care is taken to introduce them to the Movement, with emphasis on the international statement of Aims, Belief and Working Principles of Scripture Union and the full Strategic Plan.

Organisational structure SU complies with the Good Governance Code for the voluntary and community sector. The Movement operates a linear organisational structure: Members of the Company appoint Trustees who appoint staff for the day-to-day running of the Movement. Members of Council are the Members of the Company.

Trustees – The Trustees of SU (listed on page 2) have overall responsibility for ensuring the effective and efficient operation of the organisation within company and charity law and the objects of the Movement. Trustees hold the legal responsibility of the Movement and meet with the Leadership Team (listed on page 2) as the Board six times a year.

Council – Council, whose members are broadly representative of SU’s areas of work and community, provides a forum for the development of spiritual vision and discernment of God’s leading and advises the Board on the overall direction of the Movement. It has no executive powers and its key responsibilities are to ensure that the Aims, Belief and Working Principles are applied, to review the progress made towards fulfilling the Strategic Plan and to elect Trustees. The Council of up to 50 members (including the Board) meets for two residential meetings a year.

Statement of Trustees’ responsibilities The trustees (who are also directors of SU for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: • select suitable accounting policies and apply them consistently; • observe the methods and principles of the Charities SORP; • make judgments and accounting estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed

and explained in the financial statements; • prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charitable

company will continue in business.


13

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees confirm that: • so far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is

unaware; and • the trustees have taken all the 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 charitable company’s auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Internal controls The Trustees have overall responsibility for the system of financial and other controls of the charity and for providing reassurance that: • its assets are safeguarded against unauthorised use; • proper records are maintained and financial information used within the charity or for publication is reliable; and • the charity complies with relevant laws and regulations. It is recognised that such a system can provide only reasonable but not absolute assurance against errors and loss. Detailed monthly financial management reports are prepared by the finance team and circulated to the Trustees, Leadership Team and senior management, and are reviewed and discussed at each of the bi-monthly Board meetings.

The Movement operates a comprehensive annual planning and budgeting process which is approved by the Board. Performance is monitored through the use of activity and financial targets and reports made to Trustees comparing actual results against activity targets and the phased budget.

Sub-committees The Board has delegated certain tasks to two sub-committees: the Audit Committee and the Nominations Committee.

The Audit Committee, comprising Trustees and volunteers, meets regularly and has responsibility for: • monitoring the integrity of the financial statements; • reviewing the integrity of the internal financial control and risk management systems; • reviewing the performance of the internal audit function; • reviewing the independence of the external auditor and the provision of any non-audit services; • describing the oversight of the external audit process and how its effectiveness was assessed; and • explaining the recommendation to the Board on the appointment of the auditor.

The Nominations Committee, comprising representatives of Trustees, members of Council and staff, meets regularly and has responsibility for: • originating and maintaining necessary policies and procedures for the nomination, appointment and induction of all new

Trustees and Council members; • helping the Board and Council evaluate themselves and their work; • identifying and interviewing potential Trustees and Council members for nomination and making recommendations for

appointment to Council.

Management and staff • The Trustees delegate the operational and day-to-day management of the Movement to the Leadership Team and are

thankful to God for a committed staff team who work hard to support volunteers and to advance the aims of the Movement.

Pay policy for senior staff The members of the Leadership Team (listed on page 2) are the key management personnel of the Movement in charge of directing, controlling and operating SU on a day-to-day basis. All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in Note 6 to the accounts (page 24).

Trustees are required to disclose all relevant interests and register them with the Company Secretary and, in accordance with the Movement’s policy, withdraw from decisions where a conflict of interest arises.


14

Members of the Leadership Team require a breadth and depth of expertise and credibility which requires drawing from the best senior level talent within the Christian community. This is balanced with seeking to keep salary costs under control and ensuring that senior staff pay is connected to the pay of other staff.

The Trustees review annually and determine the pay of the leadership team. Their aim is to benchmark these salaries at 95% of the median for comparable national charities’ pay levels (NCVO/Xperthr Charity Sector Salary Survey). The Trustees’ aim is to follow the principle that the pay of the highest paid employee is not more than four times the average full time equivalent salary of the administrative level roles within the Movement.

Grant-making policy and principles One of the ways in which SU works out its mission is by setting aside a proportion of our income and resources each year to make grants to other SU movements and to organisations with a very close association to SU, for example Local Mission Partners. In addition, we receive gifts from our supporters which we use to make grants to support specific projects in other parts of the world. We do not fund individuals. The overriding purpose of any grant made is to further SU’s mission locally, regionally, nationally or internationally.

Grants are made at the discretion of the Trustees and this responsibility is delegated to the Leadership Team. Robust procedures are in place and followed to ensure that consideration and awarding of grants is in line with the principles set out below; and the quality and timeliness of reporting meets the requirements of SU’s Audit Committee. Grant allocations amounting to £1,216,000 (2015: £498,000) were made during the year. This includes £562k (2015: £nil) of multi-year grants commitments which are payable in future years (see Note 4 on page 22).

Since the needs of the SU family are great and available funding is limited, the following principles set out the way in which SU allocates its grants. • Grants will be of strategic benefit for growth of SU’s mission and used in a manner consistent with SU’s aims, beliefs and

working principles. • Grants will be made only where we are confident that it is possible to ensure that funds will be used for the intended

purpose and that the recipient is able to commit to providing appropriate and timely reports on the use of the funds in a manner that meets the requirements of the SU Audit Committee.

• Grants will normally be for start-up, project or emergency purposes that will not create long-term financial dependence. They should therefore be ‘one-off’ or on a diminishing basis over a period of two to five years.

• Match-funding grants will be considered as a means of encouraging and facilitating local fundraising by the recipient. • Assessment of grant requests will include scale of need and availability of other funding sources. • The overall allocation of grants made by SU must adequately reflect an emphasis on reaching children and young

people who don’t yet know Jesus.

Appointment of external auditor Following a tender process during the autumn of 2015, Grant Thornton UK LLP was appointed as external auditor. Grant Thornton UK LLP has indicated willingness to be reappointed as external auditor and will be recommended for reappointment by the Trustees.

* * * * * The Trustees submit their annual report and the audited financial statements for the year ended 31 March 2016. The financial statements comply with current statutory requirements, the Articles of Association and the Accounting and Reporting by Charities: Statement of Recommended Practice (FRS 102).

This Trustees’ Annual Report, which incorporates the Strategic Report, was approved by the Trustees in their capacity as company directors on 20 July 2016 and signed on their behalf by:

Keith Civval Derek Adams FCA Chairman Treasurer

Independent Auditor’s Report to the Members of Scripture Union

15

We have audited the financial statements of Scripture Union for the year ended 31 March 2016 which comprise the balance sheet, the statement of financial activities incorporating an income and expenditure account, the cash flow statement, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees' Responsibilities set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the charitable company's affairs as at 31 March 2016 and of its incoming

resources and application of resources including, its income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Report of the Trustees' (including the directors and strategic reports) for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from

branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees' remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.

William Devitt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Milton Keynes

http://www.frc.org.uk/auditscopeukprivate

Statement of financial activities incorporating an income and expenditure account for the year ended 31 March 2016

16

Notes

Unrestricted funds £’000

Restricted funds £’000

Endowment funds £’000

Total 2016

£’000




Total 2015

£’000

Income and endowments

Income from generated funds: - Income from donations and legacies 3a 4,636 1,374 - 6,010 3,090 1,577 - 4,667 - Income from investments 2 51 17 - 68 64 17 - 81 Income from charitable activities: - Holidays and missions 601 - - 601 572 - - 572 - Other fee income 102 - - 102 71 - - 71 - Publishing sales and royalties 1,675 - - 1,675 1,840 - - 1,840 - Other income - - - - 150 - - 150 ________ ______ ________ _______ _________ ________ ________ ______

Total income 7,065 1,391 - 8,456 5,787 1,594 - 7,381 ________ _______ _________ _______ _________ ________ _________ ______

Expenditure

Expenditure on raising funds: - Cost of raising funds 454 - - 454 467 - - 467 Expenditure on charitable activities:

- Face to face mission in England and Wales 2,501 472 - 2,973 2,507 396 - 2,903 - Publishing activities - Digital publishing 940 788 - 1,728 885 766 - 1,651 - Conventional publishing 1,728 - - 1,728 1,557 - - 1,557 - International activities 851 204 - 1,055 329 187 - 516 _________ _______ _________ _______ _________ ________ _________ ______

Total expenditure 4 6,474 1,464 - 7,938 5,745 1,349 - 7,094 _________ _______ _________ _______ _________ ________ _________ ______

Net (loss)/gain on investment assets (46) - (56) (102) 141 - 18 159 _________ _______ _________ _______ _________ ________ _________ ______ 6,520 1,464 56 8,040 5,604 1,349 (18) 6,935 _________ _______ ________ _______ _________ _______ ________ ______ Net income/(expenditure) for the year being net movement in funds 545 (73) (56) 416 183 245 18 446

________ ______ ________ _______ _________ ________ ________ ______

Reconciliation of funds:

Fund balances brought forward 6,208 283 711 7,202 6,025 38 693 6,756 _________ _______ _________ _______ _________ ________ _________ ______

Fund balances carried forward 13 6,753 210 655 7,618 6,208 283 711 7,202 _________ _______ _________ _______ _________ ________ _________ ______

All of the above results are derived from continuing activities. SU has no other recognised gains and losses other than those stated above. Income from donations and legacies for the year ended 31 March 2016 benefited from a high level of legacy income and from specific individual and major donor gifts for the Guardians of Ancora project. The Notes on pages 19-27 form part of these financial statements.

Balance Sheet as at 31 March 2016

17

Notes

2016 £’000

2015 £’000

Fixed assets Tangible assets 7 862 64 Investments 8a 1,552 1,642 __________ __________

Total Fixed Assets 2,414 1,706

__________ __________ Current assets

Stocks 9 372 329 Investments 8b 5,261 4,651 Debtors 10 1,062 763 Cash at bank and in hand 804 756 __________ __________

Total Current Assets 7,499 6,499

Liabilities

Creditors: amounts falling due within one year 11a (1,889) (835) __________ __________

Net current assets 5,610 5,664 __________ __________

Total assets less current liabilities 8,024 7,370

Creditors: amounts falling due over one year 11b (370) (128)

Provisions for liabilities 12 (36) (40) __________ __________

Net assets 7,618 7,202 __________ __________

The funds of the charity: 13

Unrestricted funds Fixed assets fund 862 64 Working capital fund 85 211 Project and development fund 2,840 1,914 International fund 196 426 Property fund - 2,000 General fund 2,770 1,593 __________ __________

6,753 6,208

Restricted funds Income fund 210 283 Endowment funds Endowment fund 655 711 __________ __________

Total charity funds 7,618 7,202 __________ __________

The financial statements were approved and authorised for issue by the Trustees on 20 July 2016 and signed on their behalf by:

Keith Civval Derek Adams FCA Chairman Treasurer The Notes on pages 19-27 form part of these financial statements. Company Registration Number 39828

Cash flow statement for the year ended 31 March 2016

18

Notes

2016 £’000

2015 £’000

Net cash provided by/(used in) operating activities See below 724 (39)

__________ __________ Cash flows from investing activities Interest received 2 33 37 Dividends received 2 35 44 Purchase of tangible fixed assets – non-property 7 (23) (65) Sale of tangible assets - 450 Purchase of new National Office (81) - Purchase of investments 8a (81) (156) Sale of investments 8a 104 904 Movement in investment cash 8a (35) 7 __________ __________ Net cash (used in)/provided by investing activities (48) 1221

__________ __________

Net cash (used in) financing activities – repayment of borrowings 11a (18) (16)

__________ _________

Change in cash and cash equivalents in the year 658 1,166 Cash and cash equivalents at the beginning of the year 5,407 4,241 __________ __________

Total cash and cash equivalents at the end of the year See below 6,065 5,407 __________ __________

Change in cash and cash equivalents due to exchange rate movements during the year was £3,000 (2015: £5,000).

Notes to cash flow statement

a. Reconciliation of operating surplus to net cash inflow from operating activities 2016 £’000

2015 £’000

Net income as per statement of financial activities 416 446 Net loss/(profit) on investments 102 (159) Dividends and interest from investments (68) (81) Depreciation charges 35 38 Surplus on sale of property - (150) (increase)/decrease in stocks (43) 32 (Increase) in debtors (299) (275) Increase in creditors 585 115 (Decrease) in provision for pensions (4) (5) __________ __________ Net cash inflow/(outflow) from operating activities 724 (39)

__________ __________

b. Cash and cash equivalents 1 April 2015 £’000

Cash flow £’000

31 March 2016 £’000

Cash at bank and in hand 756 48 804 Notice deposits (less than 3 months) 4,651 610 5,261 __________ __________ __________ Net funds 5,407 658 6,065 __________ __________ __________

The Notes on pages 19-27 form part of these financial statements.

Notes forming part of the financial statements for the year ended 31 March 2016

19

1. Accounting policies The principal accounting policies adopted, judgements and key source of estimation uncertainty in the preparation of the accounts are as follows:

a) Basis of preparation and assessment of going concern – The financial statements have been prepared under the historical cost convention, with the exception of investments, which are included on a market value basis. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) (Charities SORP FRS102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011 and the Companies Act 2006.

Scripture Union constitutes a public benefit entity as defined by FRS 102.

These financial statements are presented in £’000’s.

The trustees consider that there are no material uncertainties about SU’s ability to continue as a going concern. In addition to ownership of a building used as the national office and long-term reserves invested to grow capital, SU has a healthy cash balance which, along with budgeted income from donations and legacies and income from charitable activities, is anticipated to be more than sufficient to cover the budgeted deficit, planned fund project and development activity, ongoing operational activity and refurbishment of the national office during the coming year.

b) Reconciliation with previous Generally Accepted Accounting Practice – In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was needed.

At the date of transition in applying the requirement to recognise liabilities arising from employee benefits, a liability was recognised for short-term compensated absence arising from employee entitlement to paid annual and sabbatical leave. The initial liability recognised at the date of transition was for the holiday entitlement carried forward and for the entitlement arising in the year which was due but not taken and for the sabbatical entitlement accrued but not yet taken. No other restatements were required. In accordance with the requirements of FRS 102 a reconciliation of opening balances and net income/(expenditure) for the year is provided below.

Reconciliation of reported net income 1 April 2014 £’000

31 March 2015 £’000

Fund balances as previously stated 6,928 7,383 e __________ __________ Adjustment from 1 April 2014 - (172) Holiday earned not taken (34) (15) Sabbatical allowance accrued not taken (138) 6 e __________ __________

Fund balances as restated 6,756 7,202 __________ __________

c) Company status – Scripture Union is a company limited by guarantee. The guarantors are the members of the company who are also members of SU’s Council (as outlined on page 11). The liability in respect of the guarantee, as set out in the Articles of Association, is limited to £10 per member.

d) Income recognition – All income is recognised when SU has entitlement to the funds, the receipt is probable and the amount can be measured reliably. All income is accounted for on a receivable basis. For legacies, this is when (i) SU becomes entitled to the income, based on notifications received, (ii) there is reasonable likelihood of receipt and (iii) the amount is quantifiable. Donations are recognised when any performance-related conditions are met.

Publishing sales represent the amounts receivable for goods sold in the normal course of business, net of trade discounts and Value Added Tax (VAT).

Interest on funds held on deposit are accrued for in line with the current advised interest rate.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

The Movement acts as agent for other SU national movements and receives funds on their behalf. These funds are recognised as income and expended as grants within the Statement of Financial Activities (SOFA). The charity holds these granted funds within a ‘client account’ and, because the charity does not own and has no entitlement to these funds, they are excluded from the balance sheet.

No amounts are included in the financial statements for services donated by volunteers.


20

e) Expenditure recognition – Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing SU to that expenditure, the amount of the obligation can be measured reliably and it is probable that settlement will be required. SU exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities relating to grants and sabbatical allowances. Judgement is necessary in assessing the likelihood that the liability will be realised and in quantifying the possible value of that liability.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (f).

Charitable expenditure comprises expenditure related to the direct furtherance of SU’s charitable objects. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with use of the resources.

Cost of generating funds includes fees paid to fundraising consultants, staff time, database development costs and apportioned overhead costs.

Grants payable are payments made to third parties in the furtherance of SU’s charitable objects. Grant awards are subject to the recipient fulfilling performance conditions. The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Movement that would permit SU to avoid making the future payment(s), settlement is probable and the effect of discounting is material.

f) Allocation of support and governance costs – Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs associated with meeting the constitutional and statutory requirements of the charity and include internal and external audit costs, Board and Council meeting costs and an allocation of indirect costs to cover support from members of staff. Other support costs are those functions that assist the work of the Movement but do not directly undertake charitable activities.

The basis on which support costs are allocated (see Note 4) are: Finance Activity Technical Services Headcount Human Resources Headcount Facilities Usage Web & database Usage Fundraising and communications Usage Management Usage Database and Projects Usage

g) Fund accounting – The Trustees have established five designated funds. These are unrestricted funds which have been allocated for specific purposes.

Restricted funds are funds subject to specific restrictions imposed by donors. The purpose and use of the restricted funds are set out in Note 13 to the financial statements.

h) Tangible fixed assets and depreciation – Tangible fixed assets are stated at cost including any incidental expenses of acquisition, less accumulated depreciation and any impairment. Depreciation is provided on all tangible fixed assets (except freehold land, which is not depreciated) at rates calculated to write off the cost on a straight-line basis over their expected useful economic life as follows:

Freehold brick buildings fifty years Fixtures and fittings five years Computers and similar equipment three years

As the new national office (freehold brick building) was purchased at the end of March 2016, it was not appropriate to provide depreciation during the 2015–16 year.

i) Investments – Investments are stated at market value at the balance sheet date. Realised and unrealised gains and losses are included in the SOFA as they arise.

j) Stocks – Stocks are stated at the lower of cost and net realisable value. Cost includes all direct costs and the attributable proportion of production overheads. Net realisable value is based on estimated selling price net of trade discounts. Provision is made for slow-moving items where appropriate.

k) Debtors – Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.


21

l) Creditors and provisions – Creditors and provisions are recognised where SU has a present obligation resulting from a past event that will or probably will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

m) Pensions – SU operates the Scripture Union (Legal & General) Personal Pension Plan. This is a defined contribution occupational pension scheme, and the amount charged to the SOFA is the contributions payable during the year. SU had a final salary pension scheme, the benefits of which were secured by an annuity in 1996 when the scheme was closed.

SU provides pensions to a small number of former staff on an unfunded basis. These staff worked for the Movement before a formal pension plan was set up or were ineligible to join a Revenue approved scheme. All the people entitled to such pensions are either retired or no longer employed by SU and the regular cost of the scheme is immaterial. Assessment of the unfunded pension liability is carried out annually and appropriate provision made in the balance sheet and the SOFA. SU’s contribution is restricted to the contributions disclosed in Note 5. There were no outstanding contributions at the end of the year.

n) Operating leases – Rentals under operating lease contracts are charged to the SOFA on a straight-line basis over the lease term, even if the payments are not on such a basis.

o) Foreign currency translation – Transactions in foreign currency are recorded in sterling at the rate of exchange ruling on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the SOFA.

p) Taxation – SU, as a registered charity, is exempt from taxation of its income and gains falling within sections 466-493 of the Corporation Tax Act 2010 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year. The charity is registered for VAT. Certain of SU’s activities are exempt from or outside of the scope of VAT. Accordingly, SU is unable to reclaim all input VAT suffered. Recoverable input VAT is included in debtors. Irrecoverable input VAT is written off to the SOFA as incurred.

2. Investment income 2016 £’000

2015 £’000

Interest receivable 33 37 Dividends receivable 35 44 __________ __________

68 81 __________ __________

Of the investment income, £17,000 (2015: £17,000) was attributable to restricted income with the balance of £51,000 (2015: £64,000) adding to unrestricted funds.

3. Income 3a. Income from donations and legacies Unrestricted

funds £’000



Total 2016

£’000




Total 2015

£’000 Donations Gifts 1,928 1,370 - 3,298 1,926 1,576 - 3,502 Legacies 2,708 4 - 2,712 1,164 1 - 1,165 ________ ________ ________ ________ ________ ________ ________ ________

4,636 1,374 - 6,010 3,090 1,577 - 4,667 ________ ________ ________ ________ ________ ________ ________ ________

3b. Net income for the year is stated after charging: 2016 £’000

2015 £’000

Auditor remuneration: Audit fee 14 14 Auditor remuneration: Other services 3 7 Depreciation charges 35 38 Operating lease rentals for land and buildings 40 40 Operating lease rentals for machinery - 1

__________ __________


22

4. Expenditure Grant funding of activities (see below)

£’000 Direct cost

£’000

Support cost (see below)

£’000

Total 2016 £’000

Total 2015 £’000

Costs of raising funds - 249 205 454 467 Face-to-face mission in England and Wales 241 2,207 525 2,973 2,903 Digital publishing - 1,520 208 1,728 1,651 Conventional publishing - 1,463 265 1,728 1,557 International activities 975 5 75 1,055 516 __________ __________ __________ __________ __________

1,216 5,444 1,278 7,938 7,094 __________ __________ __________ __________ __________ Total 2015 498 5,403 1,193 7,094 __________ _________ ________ __________

Analysis of support costs Finance

£’000

Technical Services

£’000

Human Resources

£’000 Facilities

£’000

Web & database

£’000

Fundraising & Comms

£’000 Management

£’000 Total £’000

Costs of raising funds 8 20 11 24 32 67 43 205 Face-to-face mission in England and Wales 60 121 70 65 30 33 146 525 Digital publishing 7 13 8 24 59 39 58 208 Conventional publishing 52 42 24 41 28 17 61 265 International activities 22 3 2 9 - - 39 75 _______ _______ _______ _______ _______ _______ _______ _______

149 199 115 163 149 156 347 1,278 _______ _______ _______ _______ _______ _______ _______ _______ Basis of activity Activity Headcount Headcount Usage Usage Usage Usage

The basis on which costs have been allocated is outlined in accounting policy (f). Cost allocation includes an element of judgement and SU has had to consider the cost benefit of detailed calculations and record keeping. To ensure full-cost recovery on projects, SU adopts a policy of allocating costs to the respective cost headings through the year. This allocation includes support costs where they are directly attributable. Therefore the support costs shown are a best estimate of the costs that have been so allocated.

Grants payable in furtherance of the charity’s objects:

Activities undertaken

directly

Grant funding of

activities

Support costs

Total 2016 £’000

Activities undertaken

directly

Grant funding of

activities

Support costs

Total 2015 £’000

Scripture Union worldwide 5 430 20 455 10 115 11 136 Scripture Union – Former Soviet Republics - 293 20 313 - 79 7 86 Scripture Union – England and Wales 20 241 20 281 20 36 5 61 Scripture Union – Africa 10 108 10 128 10 139 13 162 Scripture Union – Europe 10 59 - 69 - 56 5 61 Scripture Union – South Asia - 41 10 51 - 37 3 40 Scripture Union – rest of Britain and Ireland - 17 5 22 - 4 - 4 Scripture Union – Americas - 16 5 21 - 19 2 21 Scripture Union – Pacific - 11 5 16 - 13 1 14

_______ _______ _______ _______ _______ _______ _______ _______

45 1,216 95 1,356 40 498 47 585 _______ _______ _______ _______ _______ _______ _______ _______

Grant allocations amounting to £1,216,000 (2015: £498,000) were made during the year. This includes £562,000 (2015: £nil) of multi-year grant commitments which are payable in future years.

Movement in recognised funding commitments during the year Charitable commitments accrued £’000

Grant commitments accrued at the start of the year - New grant commitments charged to the Statement of Financial Activities during the year 1,216 Grants paid during the year (654)

_________ Amount of grant commitments accrued as at 31 March 2016 562 __________

Further details on grants are available on application to the Movement and on our website (www.scriptureunion.org.uk).

SU in England and Wales works in partnership with, and makes grants to, independent SU movements around the world as noted on page 8.


23

We also work in partnership with a range of independent trusts who look to SU for support and guidance on best practice in work with children, young people and families: • Runton Dolphin Trust, which runs ‘West Runton Holidays’ • Great Wood Trust allows Scripture Union use of the Great Wood site under a licence agreement. • A growing number of Local Mission Partners, whose aims are similar to those of SU and who operate in a particular local

area, referred to on pages 4, 5, 6, 7, 9, 10 and 14.

5. Staff costs and remuneration of key management personnel 2016

£’000 2015

£’000 Wages and salaries 2,052 2,016 Social security costs 201 196 Reorganisation costs 19 17 Pension costs:

Scripture Union (L&G) Personal Pension Plan 184 183 Unfunded pension scheme 5 5 __________ __________

Total 2,461 2,417 __________ __________

The average number of employees, analysed by function, was: 2016 Number

2015 Number

Income generation 6 6 Face to face mission in England and Wales 37 37 Publishing activity:

Digital publishing 4 6 Conventional publishing 13 15

International activities 1 1 Administration and support of staff and volunteers 12 10 __________ __________

Total 73 75 __________ __________

The average number of employees during the year was 73 (2015: 75), including 16 (2015: 18) part-time employees with no adjustment in the above table to take account of the number of hours worked. The average number of full-time equivalent employees during the year was 67 (2015: 67).

SU’s key management personnel are the members of the Leadership Team (listed on page 2). The total employment benefits – including employer pension and national insurance contributions – of the key management personnel were £279,000 (2015: £305,000). In the financial year 2015–16, two employees (2014–2015: one employee) earned between £70,000 and £80,000 and one employee (2014–2015: one employee) earned between £60,000 and £70,000, excluding employer pensions contributions.

6. Trustees Trustees received no emoluments in their role as trustees during the year, but six of the eight Trustees received reimbursement of travel expenses totalling £1,956 (2015: £3,372 reimbursed to six of nine Trustees).

Stephen Hallett is Director of Mr S J Hallett Ltd. Payments in the year to the company in respect of services rendered were £1,775 (2015: nil).


24

7. Tangible fixed assets Cost:

Freehold land and buildings

£’000

Computer equipment

£’000

Fixtures and fittings £’000

Machinery £’000

Total £’000

At 1 April 2015 - 221 23 117 361 Additions 810 23 - - 833 Disposals - (39) (11) (5) (55)

__________ __________ __________ __________ __________

At 31 March 2016 810 205 12 112 1,139

__________ __________ __________ __________ __________ Depreciation:

At 1 April 2015 - 165 15 117 297 Charge for year - 31 4 - 35 Disposals - (39) (11) (5) (55) _________ __________ __________ __________ __________

At 31 March 2016 - 157 8 112 277 _________ __________ __________ __________ __________ Net book value At 31 March 2016 810 48 4 - 862

_________ __________ __________ __________ __________ At 31 March 2015 - 56 8 - 64

_________ __________ __________ __________ __________

At 31 March 2016 Trustees had authorised the capital expenditure budget for the ensuing year of £89,300 (2015: £13,600). Disposals as shown on the SOFA are shown net of depreciation. There were no capital commitments as at 31 March 2016 (2015: £nil).

8. Investments

8a. Fixed asset investments 2016 £’000

2015 £’000 Investments at market value

Investment cash 62 27 Fixed Interest & UK Government stocks 208 253 UK Listed Stock Exchange Investments, Unit Trusts and OEICS 1,282 1,362 __________ __________

1,552 1,642 __________ __________ Movement during the year:

Market value at 1 April 1,642 2,238 Less: Disposals at open market value (102) (904) Add: Acquisition at cost 81 156 Net (loss)/gain on revaluation (104) 159 Movement in investment cash 35 (7)

__________ __________

Market value at 31 March 1,552 1,642

__________ __________

The historic cost of investments is £1,135,000 (2015: £1,121,000). 8b. Current asset investments

Current asset investments represent short-term cash deposits.

9. Stocks 2016 £’000

2015 £’000

Work in progress 130 98 Finished goods 242 231

__________ __________ 372 329 __________ __________


25

10. Debtors 2016 £’000

2015 £’000

Trade debtors 124 172 Tax recoverable 84 90 Other debtors 31 1 Legacies receivable 377 252 Prepayments and accrued income 446 248 __________ __________

1,062 763 __________ __________

Prior to sign-off of the financial statements, SU had been notified of legacies with an estimated value of £444,000 (2015: £1,344,000). In accordance with accounting policy (d) as noted on page 19, it was not considered appropriate to accrue for this amount in the financial statements as at 31 March 2016. 11. Creditors

11a. Creditors: amounts falling due within one year 2016 £’000

2015 £’000

Accruals and deferred income 1,285 178 Trade creditors 458 497 Other creditors 57 50 Taxation and social security costs 51 54 Interest free loans from supporters 38 56

__________ __________ 1,889 835 __________ __________

Accruals and deferred income includes multi-year grant commitments which are payable in future years.

11b. Creditors: amounts falling due over one year 2016 £’000

2015 £’000

Accruals and deferred income 370 128 __________ __________ 370 128 __________ __________

12. Provisions for liabilities 2016 £’000

2015 £’000

Ex-gratia pensions: Balance at start of year 40 45 Pensions paid (9) (9) Increase in provision 5 4

__________ __________

Balance at end of year 36 40 __________ __________


26

13. Statement of funds Balance 1 April 2015

£’000

Income

£’000

Expenditure

£’000

Net investment losses £’000

Transfers

£’000

Balance 31 March 2016

£’000 Unrestricted funds Designated funds:

Fixed Assets 64 - - - 798 862 Working Capital 211 - - - (126) 85 Project and Development 1,914 - (996) - 1,922 2,840 International 426 334 (770) - 206 196 Property 2,000 - (33) - (1,967) - __________ __________ __________ __________ __________ __________

4,615 334 (1,799) - 833 3,983 General fund 1,593 6,731 (4,675) (46) (833) 2,770 __________ __________ __________ __________ __________ __________ Total unrestricted funds 6,208 7,065 (6,474) (46) - 6,753 __________ __________ __________ __________ _________ __________ Restricted funds Income funds:

Team support - 318 (318) - - - Children’s evangelism 212 - (50) - - 162 Gifts for SU overseas - 204 (204) - - - Endowment income - 17 (17) - - - Guardians of Ancora 34 771 (788) - - 17 Others 37 81 (87) - - 31 _________ __________ __________ __________ __________ _________

Total restricted funds 283 1,391 (1,464) - - 210 __________ __________ __________ __________ _________ __________ Endowment funds Endowment fund 711 - - (56) - 655 __________ __________ __________ __________ __________ __________ Total endowment funds 711 - - (56) - 655 __________ __________ __________ __________ _________ __________ Total funds 7,202 8,456 (7,938) (102) - 7,618 __________ __________ __________ __________ __________ __________

Unrestricted funds Designated funds are as follows:

• The Fixed Assets Fund represents the net book value of fixed assets. • The Working Capital Fund represents the funds used to finance the continuing activities of the publishing department,

comprising the stock and debtors less trade and other creditors of the department. • The Project and Development Fund is a provision for the development of SU mission, i.e. to enable ‘step-change’

growth of current and initiation of new mission activities. It provides a means of smoothing the receipt and expenditure of legacy income. The fund will be ‘topped up’ as determined by the Trustees from legacy or other income that exceeds budgeted levels and contributes to an overall operating surplus for the year, to provide for one-off project and development expenditure. Details of plans for use of this Fund are outlined in the reserves policy section on page 10.

• The International Fund is a provision for international grants. Each month an agreed percentage of (a) gift income not specifically restricted for other SU movements, (b) unrestricted legacies and (c) the net publishing surplus is accrued to the fund. Grants are made throughout the year and relevant expenditure incurred is charged to the fund as it arises. There should be no significant net movement in the fund over the long-term as the designated income is distributed on an on-going basis.

• The Property Fund provided funding for the purchase, refurbishment, fit out and maintenance of the national office.

The remaining unrestricted funds, referred to as the General Fund, are available for use in the event of an unanticipated downturn in the level of income received and also to fund any deficits on current charitable activities. Following purchase of a national office for £810,000, the Trustees agreed that a designated Property Fund was no longer required and the remaining funds were transferred into the General Fund.

Restricted funds Income funds are as follows: • Team support refers to gifts and payments received to support the work of an employee or group of employees. Any

excess of income over expenditure is carried forward to future years in the team support fund. • Children’s evangelism refers to a charitable trust grant that was received towards the end of the 2014-15 financial year

for children’s evangelism in England and Wales.


27

• Gifts for SU overseas refers to gifts for support of the work of SU in other parts of the world. At the discretion of the Trustees, these gifts are forwarded to relevant movements as a grant. We are legally required to ensure that all such grants are used for purposes consistent with SU’s charitable objectives.

• Endowment income refers to income arising from the endowment fund investments which is restricted for the mission work of SU at home and especially for work in schools.

• Guardians of Ancora refers to gifts and grants relating to the development of Guardians of Ancora, a digital Bible-engagement app for children.

• Other restricted income comprises gifts and grants given for specified purposes or projects not falling into the categories covered by the above five income funds.

All restricted income funds are represented by cash balances.

Endowment funds The Endowment fund represents a capital endowment which is normally held in a designated portfolio of stocks and shares.

Analysis of funds by asset: Funds

Tangible fixed assets £’000

Investments £’000

Current assets £’000

Liabilities and provisions

£’000 Total £’000

General - 1,552 2,323 (2,295) 1,580 Designated 862 - 4,311 - 5,173

Restricted - - 210 - 210 Endowment - - 655 - 655 __________ __________ __________ __________ __________ Total 862 1,552 7,499 (2,295) 7,618

__________ __________ __________ __________ __________ 14. Financial commitments At 31 March 2016 SU had remaining commitments under non-cancellable leases as follows:

Expiry date:

2016 Land & Buildings

£’000

2015 Land & Buildings

£’000 Within one year 20 20

________ ________ Total 20 20 ________ ________

www.scriptureunion.org.uk207-209 Queensway, Bletchley

T 01908 856000F 10908 856111

E [email protected] charity no. 213422

Limited company no. 39828Registered in England and Wales

trustees’ annual report & financial statements · trustees’ annual report & financial...

Documents