2011 Urban Saints Annual Report & Accounts

Contents

This is the Annual Report and Financial Statements for The Crusaders’ Union operating under the name of Urban Saints. The change of the operating name occurred on 1 January 2007. On 1 January 2012 The Crusaders' Union became a company limited by guarantee registered in England & Wales, company number 07771037, charity number 1144923. The assets and liabilities of the charity were transferred to the new company.

Reports

Reference and administrative details of charity, its trustees and advisors 1

Trustees’ report

Objectives and Activities 3

Achievements and Performance 6

Future Plans and Targets 8

Structure, Governance and Management

9

Financial Review 10

Statement of Trustees’ Responsibilities 11

Independent Auditors’ Report 12

Financial Statements

Statement of financial activities 14

Balance sheet 15

Principal accounting policies 16

Notes to the financial statements 19

The Trustees present their statutory report together with the financial statements of Urban Saints for the year ended 31 December 2011.

The financial statements and this report have been prepared in accordance with the accounting policies set out on pages 16 to 18 of the financial statements and comply with the charity’s constitution as amended in 2007, applicable laws and the requirements of Statement of Recommended Practice on “Accounting and Reporting by Charities” issued in March 2005.

LARGE PRINT COPY AVAILABLE ON REQUEST.

Urban Saints

Reference and administrative details of the charity, its trustees and advisors

Urban Saints Page 1 of 28

Trustees The following served during 2011 and except where stated were in post at the time of this report:

Phil Broadhurst Ann Brown (term ended 31 Dec 2011)

Ken Butler (from 1 Jan 2011) Deb Goodhead (from 1 Jan 2011) Avice Hall Peter Jeffrey John Magowan Clare Murphy (from 1 Jan 2011)

Patrick Overy David Ralph Margaret Rose (term ended 31 Dec 2011) John Rowe (term ended 31 Dec 2011) Ali Tompkins (from 1 Jan 2011) Neil Walker Tony Obayori (from 1 Jan 2012)

Officers Chairman of Trustees – Peter Jeffrey FCA

Chief Executive – The Reverend Matt Summerfield Hon. Treasurer – Glyn MacAulay FCA

Sub Committees Scottish Leadership Team and Executive Irish Committee Welsh Steering Group

Operational Committees Governance Finance and Audit Mill Hill Westbrook The members of the Finance and Audit Committee (F & A) are: Grant Masom (Chairman) Peter Jeffrey (Trustee) Terry Lewis Glyn MacAulay David Ralph (Trustee)

Reference and administrative details of the charity, its trustees and advisors


Kestin House

45, Crescent Road

Luton

LU2 0AH

01582 589850

01582 721702 www.urbansaints.org

1144923 in England and Wales

Buzzacott LLP

130, Wood Street

London

EC2V 6DL

Lloyds TSB

36, Chequer Street

St Albans

Hertfordshire

AL1 3YQ

Organisation

The Leadership Team (LT) managing the ministry on behalf of the Trustees consists of:

Mark Arnold Virginia Boakes Lorne Campbell Liz Dore John Fudge Phil Hulks Celia Macklin Jo Slater Matt Summerfield

Chief Operating Officer Leadership Team Senior Administrator Ministry Development Director Team Director Global Development Director Cluster Development Director Senior Finance Manager (left April 2012)

Supporters’ Manager Chief Executive Officer

Principal office

Telephone

Facsimile

Website

Charity registration numbers

Auditors

Bankers

Trustees’ report Year to 31 December 2011


Objectives and Activities

Background and objective

Since 1906 the charity has been reaching out to children and young people with the good news of Jesus Christ. We are passionate about working with children and young people, helping them to realise their full God-given potential as they journey from childhood to adulthood.

The objective of the Crusaders Union (operating as Urban Saints) is to teach young people about the Lord Jesus Christ as presented in the Bible, with a view to developing a personal faith in Christ and an effective Christian life of service. This objective shall be carried out in particular by:

a) Sharing the Good News of Jesus Christ

Urban Saints is a Christian organisation seeking to share the love of Jesus with all young people regardless of race, creed or disability. We operate through localised youth groups run by volunteers on a weekly basis. Youth groups provide a safe place to go, where leaders care for young people on a weekly basis. The youth groups allow young people to relax, play games and take part in a wide range of other activities. Accessibility to these groups is not restricted to any ‘type’ of person.

Many groups use Energize as their stimulus for an evening’s programme. Energize is a thorough and comprehensive resource providing access to games, discussions, teaching programmes and other guidance for dealing with behavioural and cultural issues. Groups use this resource in whatever way is best suited to them – it is not prescriptive in any way.

b) Development of leaders, young people and their families

Leaders are supported, trained and equipped through face-to-face training and have access to online resources. Training takes place on a national or regional basis, enabling leaders to connect with each other and so share good practice.

We have a range of training and mentoring programmes especially aimed at training young and emerging leaders. These include:

• Kinetic, an Urban Saints leadership training resource for young people. Kinetic is a discipleship course designed to equip and inspire the young leaders of today and tomorrow;

• Infusion, which is designed to teach teenagers some of the basic foundations that are useful to know when starting to help as a Christian youth and children’s leader. The course also provides the trainees with practical experience of working with children or people younger than themselves, helping them develop skills and attitudes that will be useful in this role; and

• Studentscape, which is a mentoring course for higher education students.



Objectives and Activities (continued)

These resources have been developed through Urban Saints based on our perception of the needs within the groups, but also to support mentoring on a wider basis throughout the Christian church. They are comprehensive tools that support the role of mentors working with young people from the age of 11 upwards to students and their families.

Young people develop friendships which can become friendships for life. They interact with other young people who may or may not be at the same schools or live in the same area. Groups enable young people to identify themselves as to who they are.

Many young people go on to lead Christian Unions at university and may end up in positions of responsibility in business.

c) Provide facilities for training, residential experiences and other events

National activities are run annually that aim both to reach the wider general public and support the leaders and young people involved with Urban Saints.

Residential events include a comprehensive national programme of holidays, designed for young people regardless of their involvement in Urban Saints. These range from weekends to a week in length, some requiring leaders to attend with their young people and some not. Holidays offer a wide variety of activities for young people from the age of 9 to 17. They further develop young leaders to take responsibility in a safe environment, while aiming to provide a lot of fun. Funding for residential holidays is available for lower income families, enabling all young people to attend regardless of background.

Urban Saints also offers a number of community projects to develop skills, faith and confidence in young people – both in the UK and overseas.

All activities are carefully assessed for risk and therefore provide safe and fun environments for the development of young people.

Through Urban Saints, the social and spiritual wellbeing of the person is being developed during their younger years. Therefore, the Trustees consider that all of the aims and objectives detailed in this report combine to benefit the public.

The public benefit of Urban Saints’ activities is far reaching into all areas of the country and a diversity of communities. Young people and leaders are connecting with the organisation in a positive way; and the organisation in turn is having a huge impact on young people, as it has done for more than 100 years, training and equipping them for all walks of life both at home and abroad.

Accordingly, the Trustees believe that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.




Our Dream …is to release a radical movement of young people, committed to taking the good news of Jesus Christ in every generation. Our Passion …is to help young people live lives of faith, hope and love through Jesus Christ. Our Values …are commitment to Jesus Christ and the word of God revealed through the Scriptures. These are outworked through… Riotous FUN – because being a Christian is not dull and boring. We believe that followers of Jesus should experience a life of real and profound enjoyment.

Adventurous FAITH – since Jesus doesn’t invite His followers to ‘play it safe’. He calls people into a radical lifestyle that embraces risk and faces danger, all the while serving wholeheartedly to effect change in the world as God has purposed. Genuine FRIENDSHIP – because we do not have to ‘go it alone’. We recognise our need of each other and are following Jesus in company with true friends. Life in all its FULLNESS – since God wants us to be fully alive. So we embrace a life of learning and growing in order to realise our God-given potential through a healthy rhythm of rest, play and work.

Strategy for activities

The focus of 2011 was to outwork the five key strategic goals agreed by the Trustees for the period 2011-2013, as follows: Growing deeper - “A movement of Jesus followers” We desire to serve over 1,100 groups and churches with outreach and discipleship resources, training and support, helping them in their work with children and young people from 5 to 25 year olds. Growing together - “A movement of co-workers” We wish to envision and equip over 300 communities where at least 3 churches are working together to develop and implement a strategy that reaches and disciples the children and young people in their locality. In turn they can be a catalyst that mobilises the church to reach every household with God’s love and power. Growing louder - “A movement of baton carriers” We intend to develop a movement of 3,900 emerging leaders, from children and young people who are each committed to make Christian disciples of at least three other people.




Growing wider - “A movement of global missionaries” We seek to serve the global church by enabling over 1,200 young people to experience an overseas community project, and by providing resources, training and support for indigenous mission (particularly in developing nations). Growing stronger - “A movement of partners” We are working to mobilise 5,000 passionate prayer and financial supporters that will enable the work to grow and thrive.

Achievements and Performance

The key highlights from 2011 were:

� We finished the year with 983 groups against a target of 920. The year saw 256 new groups compared with 156 in 2010 (an overall 19% net increase).

� 1046 groups logged onto Energize during 2011. More of our wide-ranging training resources were downloaded in 2011 than in 2010: 1,602 compared with 1,239 (a 29% increase). 241 new pieces of content (mainly meeting plans) were added to the website during the year.

� 10,140 young people participated in an experience (event, holiday, community project or training programme) against a full year target of 7,468. The increase is mainly due to growth in Spree and the new theme park events. It is encouraging to see that 683 emerging leaders (under 25s) were involved in serving or leading across these experiences.

� 2,247 leaders received training against an annual goal of 1,116. This increase is due in part to the Youthwork Summit plus the fact that there have been considerably more evening training events across the regions and nations.

� We now have 155 leaders and 191 young people registered on the MIMIC disciple-training website, from a total of 87 groups. In early 2012 we’ll be reviewing progress to date and looking at the next stage development of MIMIC in light of what we are learning from groups.

� We were involved in 32 church clusters, linked to 104 Energize and 128 non-Energize church connections.

� 137 youth leaders and young people participated in Rebuild Mexico with 216 booked for 2012.

� We ran a Global Volunteers’ Equipping course in February 2011 attended by 14 Global Volunteers, 8 of whom were new to the work.

� 572 people attended Totally Wired in 2011. Plans are being finalised for another tour in 2012 with updated content (entering its 5th year of what continues to be a popular seminar).

� We saw a total of approximately 400 people attend the eight Supporter Evenings between May and November



Achievements and Performance (continued)

Ireland

2011 was a great year for Urban Saints in Ireland. We saw the groups connecting with us increase to 43, 4 of these opening in the Republic of Ireland. It is great to see these new groups accessing a wide range of experiences, community projects and new training initiatives.

Our holiday and residential programme is continuing to grow with numbers attending increasing on previous years. One of the highlights of 2011 was the opportunity to host a cafe venue at Ireland’s largest Christian youth festival. Attracting over 3000 young people from all over Ireland and beyond, this provided a great platform to present the vision and passion of Urban Saints and connect with a large number of young people and their leaders. We look forward to all that 2012 brings.

Scotland

2011 was a very busy year for Urban Saints in Scotland. For the first time ever, three Sprees were organised and run - one in the Borders, one in the Highlands and one out on the Western Isles - which saw in total almost 400 young people and leaders hear the Gospel in the context of a fun and energetic weekend. New groups continued to join and link in to Urban Saints primarily through Energize, and leaders benefitted from a training day held in May.

During 2011, Urban Saints surrendered the lease early on an outdoor centre in Tweedsmuir that had been operational since 1997. The other outdoor centre, Combruith, was on the property market but not selling, so negotiations took place to lease the centre to a local hostel, which will run and manage the centre for the next five years.

Wales

The number of groups in Wales rose to 55 in 2011. Engagement by these and other (non Urban Saints) groups was high with over 2,200 young people attending our 32 inter-group events and 4 camps.

In the summer, Spree Wales grew to its largest yet with over 800 people attending (compared to 550 in 2010). The Powys camps in Mid Wales also ran very successfully in partnership with a number of other organisations and we moved our North Wales junior camp to an excellent new site at Llanddwywe near Harlech.

We ran, in partnership with other agencies in Wales, 18 training events for leaders attended by over 400 leaders. This included the first ever Wales National Children’s and Youth Work Conference. In addition, a number of groups (61 young people) joined the Youth Mission Project, building relief housing in South Africa at Easter; and thousands of children saw our Christmas puppet road show in primary schools in December.

Plans for 2012 include major site development at Powys camps, the second Wales National Children’s & Youth Work Conference, and the beginnings of a new initiative to encourage churches that have no children or young people to

begin a new work.



Future Plans and Targets

This section summarises our plans for 2012:

Growing deeper: To deliver a world class toolkit for groups and churches through: � Continued development of Energize for over 1,100 groups in the UK and

Ireland; � Continued development of MIMIC, with 5,000 young people registered; � Delivery of a growing number of experiences attended by over 10,000 from

groups and churches across the UK & Eire; � Showcase Westbrook as Urban Saints’ premier residential centre including

beginning the development of the Global Village Experience; and � 80% volunteer satisfaction. Growing together: To support 45 clusters of groups and churches with at least 16 clusters running a ReDefine mission hub, such that young people are involved on a termly basis in a 24 hour experience of faith-building training, life-stretching community action and heart-changing celebration. Growing louder: To launch the ‘1-2-3’ baton carrying movement, within which a specific ‘Gideon Army’ leadership programme will commence with 300 young people, who are being mentored by 100 youth leaders that embrace ‘1-2-3’. Growing wider:

� Enable 300 people to have an overseas mission experience. � Develop a schools partnership package for ReBuild ready for launch in 2013. � Develop plans for over 500 people to have an overseas mission experience in

2013. � Run at least twelve global training trips supported by 24 global trainers. � Generate 300 Energize overseas licences, including at least 150 in the

developing world. Growing stronger:

� 80% volunteer satisfaction. � Increase the number of contacts on our database to over 25,000. � Increase the number of people who give and pray regularly to our ministry by

10% - including some major donors. � Launch a church mission product that will encourage churches to include

Urban Saints in their missionary giving.



Structure, Governance and Management

The Charity was formed in 1906 and the current constitution adopted in 2007.

Trustee Directors are directly elected by Members of The Crusaders Union at the Annual General Meeting, to serve for a period of 3 years. Under the current constitution no Trustee Director may serve for a consecutive total of more than 12 years before taking at least a one year sabbatical. The Trustee Directors, conscious that several members (including the Chair) were approaching the maximum length of service, have managed to recruit some new Trustee Directors during the past two years; and have put a succession plan in place for the role of Chair once the current Chair steps down at the end of 2012.

During 2011, the work of the Vice Chair, in her role of Governance Support, and the Governance committee included seeing these new Trustee Directors inducted and the development of a web-based Trustee Directors Handbook. This work continues into 2012 with a thorough review of the charity’s policies and processes for its Trustee Directors.

Work is still ongoing, under the Finance and Audit committee remit, to update some of the financial procedures and controls, especially in the light of greater regionalisation.

The Trustee Directors appointed solicitors Anthony Collins LLP, who project planned the process that led to incorporation of the charity on 1 January 2012. At a Special General Meeting held on Saturday 17 September 2011, the same day as the AGM, the Members agreed to these changes, adopting the new Memorandum and Articles of Association and the Standing Orders etc.

The Governance committee is monitoring governance matters, including incorporation, and regularly reports to the Board of Trustees & the Finance and Audit committee.

As The Crusaders Union operates in Scotland, the Trustees registered with the Office of the Scottish Charity Regulator (OSCR) as a Cross Border Charity, with effect from February 2008, under the registration number SCO39313. The Trustee Directors are currently monitoring the proposals for a Charity Regulator in Ireland and the likely need to register during 2012/13.

Risk management

The Trustee Directors examine the major risks that the Charity faces each financial year, when preparing and updating the strategic plan and budget. The charity has developed systems, such as monthly reports, to monitor and control these risks and to mitigate any impact that they may have on the organisation in the future. Urban Saints has in place a “risk register” that identifies and assesses the risks to which it is subject. This register is reviewed on a regular basis by the Leadership Team and the Executive.

The Trustee Directors are satisfied that systems are in place to manage the

major risks arising in the organisation.



Financial Review

The balance sheet shows total funds, before transfer to the new company, of £3,677,461 compared with £3,661,146 at 31 December 2010, an increase of £16,315. This is mainly because of increased donations resulting in a Support Centre surplus. Scotland and Westbrook made small deficits.

In 2011 there was an increase of £166,386 in the overall income received. This was despite the fact that Government funding was cut in 2011. Donations increased and more groups connected with Urban Saints and, therefore, Energize subscriptions increased.

Expenditure at £2,609,475 (2010 - £2,569,716) was £39,759 higher than 2010. This was mainly due to an increase in legal costs for the incorporation.

The total Restricted funds amounted to £36,804 in 2011 (2010 - £31,209).

Funds totalling £3,155,813 (2010 - £3,322,500) have been designated, or set aside, by the Trustees for specific purposes. As £2,697,509 of this is related to property and fixed assets, these funds may not be available to support the day to day ministry. The purposes and an analysis of the movements on the designated funds are set out in Note 14 to the financial statements.

The remaining General funds £484,844 have increased by £177,407 in the year. £105,000 of this increase represents funds previously designated by the Trustees but now available for general use.

Reserves policy and financial position The Charity’s Reserve Policy is intended to maintain a level of free reserves that gives adequate time to address changes that might be needed to charitable activities or staffing issues. The level of reserves required would be subject to the needs, risks, and operating environment being considered each year as part of the budget process. Taking into account known income levels for 2011, the Trustees have stated that the General funds should not be below £200,000. As a Christian charity we believe our plans should reflect what God requires of us and, in this respect, have faith that the necessary resources will be forthcoming to enable them to be implemented. When it appears that this level of reserves is not available the actions indicated below will be progressed. � Supporters, staff and leaders in the Charity will be asked to consider and pray

about the situation carefully. � The Finance Manager will report every 3 months to the LT, the F & A

committee and the Trustees on the level of free reserves and conditions that might give rise to a reassessment of the level of reserves needed.

� The rolling 3 year budget will indicate the level of free reserves expected to be available.

� Where the level of reserves is lower than that outlined above the LT will recommend to F & A and the Trustees an appropriate action plan.

Independent auditors’ report 31 December 2011


Independent Auditors’ Report to the members of The Crusaders’ Union operating as Urban Saints

We have audited the financial statements of The Crusaders’ Union for the year ended 31 December 2011, which comprise the statement of financial activities, the balance sheet, the principal accounting policies 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).

This report is made solely to the Charity’s members, as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under Section 44 of that Act and in accordance with Section 44 (1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditors’ 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 Charity and the Charity’s 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 in the Trustees’ Report, the Trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 144 of the Charities Act 2011 and section 44 (1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts. 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 (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material inconsistencies we consider the implications for our report.

Statement of financial activities Year to 31 December 2011


Notes Unrestricted

funds £

Restricted

funds £

2011 Total

funds £

2010 Total

funds £

Incoming Resources Incoming Resources from Generated Funds

Voluntary Income 2 1,039,557 175,661 1,215,218 1,136,864

Activities for Generating Funds

Interest receivable 1,350 - 1,350 989

Investment Income 5,000 - 5,000 -

Incoming Resources from Charitable Activities

Urban Saints group, area and region activities 1 469,392 - 469,392 436,760

Residential Centres and Core Activities (Holidays, Events, Rebuild)

2a 747,917 - 747,917 733,303

Volunteer Support 2a 186,702 - 186,702 151,277

Total incoming resources 2,449,918 175,661 2,625,579 2,459,193

Resources Expended Costs of Generating Funds

Cost of generating Voluntary Income 3 158,394 - 158,394 186,371

Charitable Activities

Urban Saints group, area and region activities 1 472,881 - 472,881 475,767

Residential Centres and Core Activities (Holidays, Events, Rebuild)

4a ,4b 905,020 2,371 907,391 899,248

Volunteer Support 4c 613,194 169,530 782,724 775,793

Communications and Design 159,016 - 159,016 132,123

International Development 40,090 - 40,090 28,588

Governance Costs 4d 88,979 - 88,979 71,826

Total resources expended 2,437,574 171,901 2,609,475 2,569,716

Loss on Tweedsmuir (42,117) - (42,117) -

Revaluation Gain on Comrie 42,328 - 42,328 -

Net movements in funds before transfers 12,555 3,760 16,315 (110,523)

Transfer between funds (1,835) 1,835 - -

Net movements in funds after transfers 10,720 5,595 16,315 (110,523)

Balance brought forward at 1 January 2011 3,629,937 31,209 3,661,146 3,771,669

Transfer to new company, The Crusaders’ Union (3,640,657) (36,804) (3,677,461) (3,661,146)

Balance carried forward after transfer - - - -

All activities were discontinued at 31 December 2011 and were transferred to the new company.

Principal accounting policies 31 December 2011


Basis of Accounting

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets, and in accordance with the requirements of the Charities Act 1993, the Charity and Trustee Investment (Scotland) Act 2005 and the regulations thereunder.

Applicable accounting standards and the Statement of Recommended Practice "Accounting and Reporting by Charities" (SORP 2005) have been followed in these financial statements.

Incoming Resources

Incoming resources are recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Grants from government and other agencies have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Legacies are included in the statement of financial activities when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Resources expended and the basis of apportioning costs

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT that cannot be recovered.

Resources expended comprise the following:

a. The costs of generating funds include the salaries, direct costs and overheads associated with generating voluntary income.

b. The costs of charitable activities comprise expenditure on the charity’s primary charitable purposes as described in the Trustees’ report. Such costs relate to:

� Residential and Training Centres

� Core Activities (Events, Residentials, Service Opportunities)

� Urban Saints Groups and Areas

� Volunteer Support

� International Development

The majority of costs are directly attributable to specific activities. Certain shared costs are apportioned over the charitable activities.

c. In order to carry out the primary purposes of the charity it is necessary to provide support to the activities in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

These costs are allocated on the basis of time, number of staff, area of office or actual use (see Note 5).



d. Governance comprises the costs incurred by the support centre departments which are directly attributable to the management of the charity’s assets, organisational procedures and the necessary legal procedures for compliance with statutory requirements.

e. Group and area financial statements are incorporated based on the year end of the group.

Programme Related Investments

These are shown in the balance sheet at cost, net of any impairment charge. Any gain or loss arising from disposal or impairment is credited or charged to the Statement of Financial Activities.

Stocks

Stocks of publications and consumables for resale are valued at the lower of cost and net realisable value.

Fund Accounting

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects. They include funds representing property and other tangible fixed assets which could not be realised without curtailing the activities of the charity.

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

Pension Costs

Contributions in respect of the group personal money purchase pension scheme are charged to the statement of financial activities in the year in which they are due, representing the full value of the charity’s liability

Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.

a. Functional freehold property

The charity’s policy is to provide depreciation against the cost of freehold buildings to the extent that it is envisaged that their realisable value at the end of their useful life will be lower than the original cost. For the majority of the charity’s freehold property the Trustees do not believe that it is appropriate to provide depreciation due to the very long anticipated lives of the buildings, and the realisable value is in excess of the value in the financial statements. It is also likely that any such charge would be regarded as immaterial.

Where it is determined that it is appropriate to make a provision for depreciation, this is provided in equal instalments over the property’s anticipated useful life, which is between 25 and 50 years.



Impairment reviews are conducted on an annual basis. If any asset is found to have a carrying value materially higher than the building’s recoverable amount it is written down accordingly.

Freehold land is not depreciated.

Some properties are carried at valuations from the time when FRS15 “Tangible Fixed Assets” was implemented, which have been retained by the charity as permitted by FRS15.

b. Other tangible fixed assets

Other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives:

� Building improvements 5% to 10% per annum based on cost

� Furniture and fittings 10% to 20% per annum based on cost

� Computer equipment 25% per annum based on cost

� Other 10% to 33% per annum based on cost

Cashflow

The financial statements do not include a cashflow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1 “Cash flow statements”.

Notes to the financial statements 31 December 2011


1. Urban Saints groups, areas and regions

This represents Urban Saints groups, areas and other regional activities.

The following branch figures have been included in these financial statements as unrestricted funds as follows:

2011 2010

£ £

Total incoming resources 469,392 436,760

Outgoing resources (including write-off of balances under £1000) (472,881) (475,767)

Energize subscriptions (11,980) (16,481)

Net (outgoing) resources (15,469) (55,488)

Balance brought forward 1 January 2011 367,172 422,660

Balance carried forward at 31 December 2011 351,703 367,172

Details of the number of Urban Saints groups are as follows:

Total number of groups 983 826

Church linked groups, Energize Standard Groups, Groups with balances under £1000

(933) (741)

Groups whose accounts are included in these financial statements 50 85

In 2011 it was decided to include accounts only from Groups with balances over £1000. This reduced work for Group leaders and has no material impact on the accounts.

2. Incoming Resources from Generated Funds

Voluntary Income Unrestricted

funds £ Restricted Funds £

2011 Total funds £

2010 Total funds £

Donations and gifts 927,963 114,624 1,042,587 937,085

Legacies 111,594 - 111,594 75,958

Grants - 61,037 61,037 123,821

Total 1,039,557 175,661 1,215,218 1,136,864



2a. Incoming Resources from Charitable Activities

Unrestricted

funds £ Restricted

funds £ 2011 Total

funds £ 2010 Total

funds £ Residential & Training Centres

Kestin House rental income 32,589 - 32,589 32,069

Westbrook and Scottish centres 242,105 - 242,105 237,779

Total 274,694 274,694 269,848

Core Activities

National Holidays and Spree 302,826 - 302,826 263,338

Other 6,650 - 6,650 6,783

Service Opportunities (inc. Rebuild) 163,747 - 163,747 193,334

Total 473,223 - 473,223 463,455

Grand Total 747,917 - 747,917 733,303

Volunteer Support

Teaching and training events 6,120 - 6,120 6,122

Group Subscriptions 165,054 - 165,054 126,189

Other (inc. branded goods) 15,528 - 15,528 18,966

Total 186,702 - 186,702 151,277

3. Cost of Generating Funds

Unrestricted funds £

Restricted funds £

2011 Total 2010 Total

Staff Costs 35,332 - 35,332 36,869

Consultancy costs 15,035 - 15,035 14,626

Mailings 35,170 - 35,170 38,467

Other (donor dinners and Scotland) 9,978 - 9,978 5,291

Support costs 62,879 - 62,879 91,118

Total 158,394 - 158,394 186,371

The Cost of Generating Funds includes the cost of communicating with supporters through newsletters.



4a. Residential Centre Costs Unrestricted Funds £

Restricted Funds £

2011 Total Funds £

2010 Total Funds £

Residential and Training Centres 294,605 1,349 295,954 278,870

Support Costs (see note 5) 56,310 - 56,310 58,666

Total 350,915 1,349 352,264 337,536

4b. Core Activities Costs Unrestricted Funds £

Restricted Funds £

2011 Total Funds £

2010 Total Funds £

National Holidays & Spree 291,699 1,022 292,721 262,548

Events 1,946 - 1,946 13,951

Service Opportunities (inc. Rebuild) 193,558 - 193,558 219,769

Support Costs (see note 5) 66,902 - 66,902 65,444

Total 554,105 1,022 555,127 561,712

Grand Total 905,020 2,371 907,391 899,248

4c. Volunteer Support Costs Unrestricted

Funds £ Restricted Funds £

2011 Total Funds £

2010 Total Funds £

Teaching and training activities 111,788 5,010 116,798 122,105

Regional Directors & Area Workers 250,191 103,493 353,674 373,976

Other (support to Groups, goods, licences) 96,714 61,027 157,741 155,799

Cluster development 50,088 - 50,088 -

Support costs (including insurance for Groups and CRB administration)

104,413 - 104,413 123,913

Total 613,194 169,530 782,724 775,793

5. Support Costs Allocation

The table on the next page shows how the costs that are not directly attributable to an activity, or are shared between a number of activities, are allocated across activities. Allocation of these costs is done based on assessing the time taken, the number of people associated with that activity, the actual use made or the area taken in the Support Centre.

4d. Governance Costs Unrestricted Funds £

Restricted Funds £

2011 Total Funds £

2010 Total Funds £

Audit fees 17,356 - 17,356 19,759

Legal fees 27,886 - 27,886 7,586

Cost of meetings 16,637 - 16,637 13,052

Trustees' liability Insurance 1,590 - 1,590 2,164

Support costs (Note 5) 25,510 - 25,510 29,265

Total 88,979 - 88,979 71,826



NOTE 5- SUPPORT COSTS ALLOCATION

Costs of

generating funds

Charitable Activities

Allocation

Method

Voluntary Income

Residential

& Training Centres

Core Activities

Volunteer

Support

International

Development

Communications and Design

Governance Costs

Total

£ £ £ £ £ £ £ £ £

Operations, Finance & Exec Staff Costs Time 40,420 18,604 36,375 37,883 6,409 23,009 24,736 187,436

IT, Phone & Office costs Head count 4,533 5,667 5,667 15,325 1,133 3,778 - 36,102

Kestin House building maintenance costs (inc. depreciation on all items)

Area 9,617 16,059 8,880 26,554 2,821 10,706 - 74,638

Insurance Use 2,626 13,132 13,132 16,809 1,578 5,253 - 52,529

Postage and stationery Use 4,962 1,948 1,948 5,380 544 2,588 774 18,143

Other Use 720 901 901 2,462 419 600 - 6,003

Total 2011 62,879 56,310 66,902 104,413 12,904 45,934 25,510 374,853

% 17% 15% 18% 28% 3% 12% 7%

Total 2010 91,118 58,666 65,444 123,913 10,999 50,601 29,265 430,006

% 21% 13% 15% 29% 3% 12% 7%



6. Staff Costs

2011 2010

£ £

Wages and salaries 764,817 773,501

Social security costs 67,635 67,144

Pension costs 34,977 35,558

Other staff costs 12,042 12,180

879,471 888,383

Urban Saints operates a group personal pension scheme and the charge for the year is shown above within pension costs.

No employee earned £60,000 per annum or more (2010: none).

The average number of employees (full time equivalent), analysed by function, were:

2011 2010

Full time

equivalent Full time

equivalent

Generating Funds 2 2

Charitable Activities 29 31

Governance 1 1

Total 32 34

Eight Trustees (2010: six) received reimbursement of travel expenses during the year, whilst acting in their capacity as trustees, totalling £3,910 (2010: £2,276).

No Trustee received any remuneration during the year (2010: none).

7. Grants

During the year the Trustees awarded a grant of £10,000 (2010 £10,000) to Pakistan Schools Network, who provide indigenous children’s and youth ministry in Pakistan, which is in line with the aims and objectives of Urban saints. The Trustees have recently received a first hand report of the ministry following a visit by Urban Saints Global Development Director. His report has identified ways of moving forward with resource assistance rather than direct finance and this will be worked on during the coming year.



8. Tangible fixed assets

Freehold Property

Building Improvements

Furniture & Fittings

Computer Equipment

Assets under constructions

Other Total

Cost or valuation £ £ £ £ £ £ £

At 1 January 2011 2,050,783 408,342 397,763 169,930 - 5,750 3,032,568

Additions at cost - - 3,636 800 85,615 - 90,051

Transfer to current assets held for sale

(120,000) - - - - - (120,000)

Disposals - - (123,598) - - - (123,598)

At 31st December 2011 1,930,783 408,342 277,801 170,730 85,615 5,750 2,879,021

Accumulated depreciation

At 1 January 2011 52,288 244,874 309,957 163,999 - 5,750 776,868

Charge for the year 4,394 21,514 19,505 5,712 - - 51,125

Tweedsmuir - - 42,117 - - - 42,117

Eliminated on disposals - - (123,598) - - - (123,598)

At 31st December 2011 56,682 266,388 247,981 169,711 5,750 746,512

Net book value

At 31 December 2011 1,874,101 141,954 29,820 1,019 85,615 - 2,132,509

At 31 December 2010 1,968,495 163,468 87,806 5,931 - - 2,255,700

Properties

The historical cost of two freehold properties is not known and these are held in the books at valuations prevailing at the time of the implementation of FRS15, as permitted under the standard’s transitional arrangements. These values are as follows:

£

Professionally valued 1989 (Westbrook) 500,000

Valued by the Trustees (Southampton)

120,000

620,000 The title to the freehold properties is held by The Crusaders’ Union Limited. The Crusaders’ Union Limited is a company limited by guarantee, closely associated with the charity but which does not trade or receive income in its own right. It holds title as bare trustee on behalf of the charity. A schedule of properties is maintained, listing both freehold and leasehold interests. Regular impairment reviews are undertaken. These financial statements include the value of five properties.

It is likely that there are material differences between the open market values of the charity’s freehold land and buildings and their book values. These arise from the specialised nature of some of the properties and the effects of inflation. The amounts of such differences cannot be ascertained without incurring significant cost that, in the opinion of the Trustees, is not justified in terms of the benefits to the users of the financial statements.

Southampton Hall is shown as a current asset as it was sold in June 2012 for £249,999.

A Scottish property in Comrie, is now rented out and so is shown as Investment property.



9. Programme Related Investments

In December 2005 an agreement was entered into with the Amersham Christian Housing Association Limited for the use of part of the Mill Hill Fund for the purchase of a property in Palmers Green (another part of North London) for the use of a Christian worker in an associated ministry. £280,000 was given as an interest free loan to assist Amersham Christian Housing Association Limited to purchase the property. In the event of a loan repayment, Urban Saints would be entitled to a share of the market value of the property at the time. There has been no change to this arrangement in 2011.

10. Stocks

2011

£ 2010

£

Bookshop and tuck shop goods for resale 2,000 2,000

Teaching materials and stationery 12,990 18,123

14,990 20,123

11. Debtors 2010

2011 £ £

Tax recoverable under Gift Aid 9,231 24,575

Other debtors 44,258 60,725

Prepayments 23,262 29,365

76,751 114,665

12. Cash at bank and in hand

This includes £325,879 held by Groups and Areas, and the Mill Hill funds of £92,131.

13. Creditors: amounts falling due within one year

2011 £

2010 £

Other creditors including taxation and social security 65,384 82,262

Accruals and deferred income 117,333 88,167

182,717 170,429



14. Designated Funds

The general funds of the charity include the following amounts set aside out of unrestricted funds by the Board of Trustees.

1 Jan 2011 Designations Expenditure Transfer 31 Dec

2011

£ £ £ £ £

Development funds from property sales 282,491 355 - (190,715) 92,131

Redundancy fund 4,179 472 - - 4,651

Active groups and regions 352,408 469,392 (482,661) - 339,139

Individual holidays & Spree 9,800 4,719 - - 14,519

Holiday development fund - 4,777 - - 4,777

Urban Saints Scotland 13,415 70,779 (81,107) - 3,087

Westbrook Diamond Club 1,835 - - (1,835) -

664,128 550,494 (563,768) (192,550) 458,304

Property and Fixed Assets Fund

(tangible fixed assets and programme related investments)

2,658,372 46,764 (93,242) 85,615 2,697,509

3,322,500 597,258 (657,010) (106,935) 3,155,813

Development funds from property sales consist of:

• Mill Hill

This is the money from the sale of land in the Mill Hill area and the Trustees have decided that a group comprising former leaders of Mill Hill, others currently in the locality, and other national figures should apply these funds and associated interest in accordance with the charity’s mission statement, particularly in the North London area. In 2011 the Mill Hill fund has been used as a loan to fund the swimming pool enclosure at Westbrook. This loan will be repaid once Southampton Hall is sold.

• Golders Green

This is proceeds from the sale of the hall in 1987 and has been transferred to general funds in 2011.

Other Designated funds are:

• Redundancy fund

This represents monies set aside at a rate of 2% of the field workers’ salaries to finance redundancy (if required) due to employment legislation. Redundancy is still payable as a result of employment ending due to completion of a fixed term contract.



• Active groups and regions, individual holidays and Spree

These are the funds held by active groups and areas for use in their own locality and as such are not considered available for general use.

• Urban Saints Scotland

This represents funds held for use by Urban Saints Scotland (excluding the value of the property and fixed assets which have been included within the Property and Fixed Assets Fund).

• Property and Fixed Assets Fund (tangible fixed assets and programme related investments)

This fund represents the cost of all land and buildings held by Urban Saints, together with fixed assets, as the funds are not available for the day to day use of the Charity.

15. Restricted funds

Movement in Resources

1 January

2011 Incoming Outgoing Transfers

31 December 2011

£ £ £ £ £

Area development workers fund 18,740 97,221 (103,493) - 12,468

DfE - 25,283 (25,283) - -

Scotland - 35,744 (35,744) - -

Other 12,469 17,413 (7,381) 1,835 24,336

Total 31,209 175,661 (171,901) 1,835 36,804

• Area development workers fund

These are funds raised by the areas to support their own field workers. Some expenditure for the areas had previously been shown as unrestricted expenditure. Hence, this year there is a transfer from restricted to unrestricted funds.

• DfE

This is grant funding received from the Department for Education to be used towards raising the quality and standard of youth work undertaken by Urban Saints.

• Other

The ‘other’ category includes donations for specific projects such as child holiday subsidies, Westbrook Diamond Club.



16. Analysis of net assets between funds

Restricted

funds £

Designated funds

£

General funds

£

Total 2011

£

Fund balances at 31 December 2011

are represented by:

Fixed assets - 2,577,509 - 2,577,509

Net current assets 36,804 578,304 484,844 1,099,952

Total net assets 36,804 3,155,813 484,844 3,677,461

17. Taxation The Crusaders Union is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. 18. Incorporation The Trustee Directors appointed Solicitors Anthony Collins LLP, who project planned the process that led to incorporation of the charity on 1 January 2012. At a Special General Meeting held on Saturday 17 September 2011, the same day as the AGM, the Members agreed to these changes, adopting the new Memorandum and Articles of Association and the Standing Orders. The new company is called The Crusaders Union Limited and all the assets and liabilities of the charity were transferred to this new company.

Documents

2011 Urban Saints Annual Report & Accounts