Charity registration number 1099583
Company registration number 4720923 (England and Wales)
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Dr D C Szubert
Mr T P Murray
Mr T J Graver
Secretary
Dr D C Szubert
Charity number
1099583
Company number
4720923
Registered office
Bower House
Orange Tree Hill
Havering Atte Bower
Romford
RM4 1PB
Accountants
TaxAssist Accountants
64 Knightsbridge
London SW1X 7JF
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Trustees' report
1 - 3
Accountants' report
4
Statement of financial activities
5
Statement of financial position
6
Notes to the financial statements
7 - 11
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 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 2019).

Objectives and activities

 

Rhema Trust has been commissioned by Rhema Literature Distributors, a charitable corporation formed in the State of Washington, USA to distribute, on a free basis, Christian literature in the United Kingdom. As a necessary part of such distribution Rhema Trust has need to carry out various forms of advertising, through which requests for books are received. Rhema Trust also carries on various forms of distribution including, but not limited to hand to hand promotions.

Grant making policy

 

Rhema Trust does not make grants, but does make contributions from time to time as decided by the Board of Trustees. Any decision by the Board to make a gift or contribution is evidenced by a Board Resolution and is fully within the allowance provided under Article 3 of the Memorandum of Association.

Volunteers

 

The charity is grateful for the efforts of its volunteers. In recent years however, and for our present distribution we need fewer volunteers mainly due to our usage of online advertising. Our principle distribution activity has evolved to become more reliant on online advertising to achieve aim of mass distribution.

 

Achievements and performance
Significant activities and achievements against objectives

 

Review of activities

 

In 2023 we continued to fulfill orders we were receiving for physical books. One of the volunteers managed the electronic books and the other maintained the distribution of physical books.

 

In 2023 we distributed a total of about 932 (2022 - 675) sets of physical literature in the UK and Ireland mostly in English but a few in other languages. We also distributed 1,899 (2022 - 855) electronic sets.

 

The electronic downloadable versions of the books increased this year in the UK. Rhema Trust continues to oversee International English-language book downloads.

 

The charity continues to fulfil all book requests and distribution with two part-time volunteers. They process orders, package and post books and manage all the necessary administration tasks.

 

Fundraising activities / Income generation

 

We do not actively seek donations or contributions, but rely on the Lord to move in the hearts of people to make free will offerings. None of our Rhema Trust material makes any mention of donation. Much of our operating capital comes in the form of gifts made to Rhema Literature Distributors, which are then apportioned to Rhema Trust.

Investment performance

 

Rhema Trust does not make any investments other than capital assets for ongoing charitable activities.

RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial review

 

The Statement of Financial Activities covers the year to 31 December 2023. The results of the year's operations are set out in the attached financial statements.

 

The net inflow of funds for the year amounted to £500 (2022 - £428). The retained reserves at 31 December 2023 including the closing stock amounted to £2,269 (2022 - £1,769).

Going concern

 

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Reserves policy

 

We operate on a strict annual budget that is funded largely by donations received from the contributors. Part of our budgetary policy is that we do not spend any money we do not have in hand. We do not operate in credit. Our reserve policy is that we try to enter the succeeding year with a 15% coverage of the previous years budget.

Major risks

 

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

 

In 2023 we have continued our efforts to reduce operating costs. As mentioned previously, our operating capital comes mainly from gifts made to Rhema Trust directly and indirectly to Rhema Literature Distributors internationally. Rhema Literature Distributors will continue to expand to reach countries, languages and regions that previously have had little or no such free literature available. Our reduction of operating costs by promoting the use of our website to order or download the books online will reduce our administration of our database and encourage online downloading which we hope will thus free up more funds for that expansion.

 

We still see electronic books rather than printed books to be the long term future for Rhema distribution in the UK and the rest of Europe, with the electronic distribution eliminating most mailing costs and the cost of the paper book itself. This reduction of cost in the long run should enable us to continue to meet the demand for our books which we expect in the coming years.

 

 

Members' liability

 

The members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Structure, governance and management

 

The charity is a company limited by guarantee and was set up by the Memorandum and Articles of Association dated 2 April 2003.

 

The principal object of the charity is to promote the Christian faith by the supply and distribution of books and publications and other materials.

 

There have been no changes in the objectives since the last annual report.

RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

 

Dr D C Szubert
Mr T P Murray
Mr T J Graver
Recruitment and appointment of trustees

 

Trustees are chosen by the existing Trustees during a Board of Trustees meeting. Candidates are selected and discussed by the current board members. The candidate selected is then contacted to confirm their interest and to be advised of their selection. A vote is not taken as we will only choose a candidate that all current board members feel good about. If there is dissent by any board member concerning a candidate, that candidate is dismissed from further discussion.

Organisational structure

 

Rhema Trust is a small charity with two part-time volunteers and three Trustees. The need for more volunteers helping with mailing, packaging, computer updates, follow-up and other tasks is not required to fulfil the present distribution demands. The Board of Trustees is made up of a part-time volunteer, a member of Rhema Literature Distribution and one non-related member.

Decision making

 

Our decision making policy is via close coordination with the Rhema Trust staff, Board of Trustees and Rhema Literature Distributors. Once these decisions are made the Rhema staff are authorised to carry them out.

Relationship with related parties

 

Dr D C Szubert and Mr T P Murray, the trustees of Rhema Trust are also trustees of the Church of the Londoners, a charity registered in England and Wales with the Charity Commission. All the transactions with the Church of the Londoners are disclosed in the notes to the financial statements.

 

Dr D C Szubert, the trustee of Rhema Trust is also trustee of Amana Trust, a charity registered in England and Wales with the Charity Commission. All the transactions with Amana Trust are disclosed in the notes to the financial statements.

 

The Trustees' report was approved by the Board of Trustees.

Mr T P Murray
Trustee
26 September 2024
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
CHARTERED CERTIFIED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RHEMA TRUST FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rhema Trust for the year ended 31 December 2023, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.

This report is made solely to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 18 September 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Rhema Trust and state those matters that we have agreed to state to the charity's trustees, as a body.

It is your duty to ensure that Rhema Trust has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Rhema Trust. You consider that Rhema Trust is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.

We have not been instructed to carry out an audit or a review of the financial statements of Rhema Trust. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

26 September 2024
TaxAssist Accountants
64 Knightsbridge
London SW1X 7JF
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Unrestricted
Unrestricted
funds
funds
2023
2022
Notes
£
£
Income from:
Donations and legacies
2
2,756
2,819
Total income
2,756
2,819
Expenditure on:
Charitable activities
3
2,256
2,391
Total expenditure
2,256
2,391
Net income and movement in funds
500
428
Reconciliation of funds:
Fund balances at 1 January 2023
1,769
1,341
Fund balances at 31 December 2023
2,269
1,769

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 11 form part of these financial statements.

RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
119
178
Current assets
Stocks
9
1,658
1,766
Debtors
10
-
(1)
Cash at bank and in hand
1,342
843
3,000
2,608
Creditors: amounts falling due within one year
11
(850)
(1,017)
Net current assets
2,150
1,591
Total assets less current liabilities
2,269
1,769
Net assets excluding pension liability
2,269
1,769
The funds of the
Unrestricted funds
2,269
1,769
2,269
1,769

The notes on pages 7 to 11 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 26 September 2024
Mr T P Murray
Trustee
Company registration number 4720923 (England and Wales)
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
1
Accounting policies
Charity information

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors as to how they may be used or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.4
Income

Income is recognised once the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Gifts in kind donated for distribution are included in valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity when this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

 

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated items have been met, the receipt of economic benefit can be measured reliably. In accordance with the Charities SORP (FRS102), the general volunteer time of the Friends is not recognised and refer to the Trustees' Report for more information about their contribution.

 

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

 

Support costs are those costs incurred directly in support of expenditure on the objects of the charity.

 

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

 

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% reducing balance
Computers
20% reducing balance
1.7
Stocks

Stocks of books for distribution are stated at printing cost.

2
Donations and legacies
Unrestricted
Total
funds
2023
2022
£
£
Donations and gifts
2,550
2,635
Donation of books
206
184

During the year, Rhema Trust received a donation of books from Rhema Literature Distributors. The donated books are valued at printing cost.

RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
3
Charitable activities

Charitable Expenditure

Charitable Expenditure

2023
2022
£
£
Depreciation and impairment
59
59

Printing and stationery

271
533

Office costs

76
218

Amana Trust Radio

240
240

Direct cost of books distributed

667
483

Accountancy

839
750

Bank charges

104
108
2,256
2,391
2,256
2,391
4
Net movement in funds
2023
2022
£
£
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
59
59
5
Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

Dr D C Szubert and Mr T P Murray, the trustees of Rhema Trust are also the trustees of the Church of the Londoners, a charity registered in England and Wales with the Charity Commission. During the year, the charity received £3,150 from the Church of the Londoners. (2022 - £1,000).

 

Dr D C Szubert, the trustee of Rhema Trust is also the trustee of Amana Trust, a charity registered in England and Wales with the Charity Commission. During the year, the charity donated £240 (2022 - £240 ) to Amana Trust for Radio Broadcast at Premier Radio.

 

6
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
7
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

8
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 January 2023
1,044
3,987
5,031
At 31 December 2023
1,044
3,987
5,031
Depreciation and impairment
At 1 January 2023
1,010
3,843
4,853
Depreciation charged in the year
11
48
59
At 31 December 2023
1,021
3,891
4,912
Carrying amount
At 31 December 2023
23
96
119
At 31 December 2022
34
144
178
9
Stocks
2023
2022
£
£
Finished goods
1,658
1,766
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
(1)
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
40
266
Accruals and deferred income
810
751
850
1,017
RHEMA TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
12
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January 2023
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
General funds
1,769
2,756
(2,256)
2,269
Previous year:
At 1 January 2022
Incoming resources
Resources expended
At 31 December 2022
£
£
£
£
General funds
1,341
2,819
(2,391)
1,769
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