Message Trust Annual Report '10-'11

THE MESSAGE TRUSTANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDING 31 AUGUST 2011

Company Limited By GuaranteeCompany Registration Number 03961183

Registered Charity Number 1081467

CONTENTS PAGES

O!cers and professional advisers 3

Report of the trustees 4 – 21

Report of the auditors 22 – 23

Consolidated statement of financial activities 24

Consolidated and charity balance sheets 25

Notes to the financial statements 26 – 36

THE MESSAGE TRUSTFINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2011

ANNUAL REPORT & FINANCIAL STATEMENTS VERSION 1.2 2

The Board of Trustees C. Hardicre R. T. Johnson (Chairman)

A. N. T. Morton P. Nadin

R. D. White

Company Secretary F. N. Green

Chief Executive O!cers A. Hawthorne C. Dallas F. N. Green I. Henderson I. Rowbottom (appointed 1 September 2010) M. Wilson

Registered O!ce Lancaster House Harper Road Sharston Manchester Lancashire M22 4RG

Auditors McKellens Ltd Chartered Accountants 11 Riverview The Embankment Business Park Vale Road Heaton Mersey Stockport SK4 3GN

Bankers National Westminster Bank PLC Station Road Cheadle Hulme Cheshire SK9 7AD

THE MESSAGE TRUSTOFFICERS AND PROFESSIONAL ADVISERS

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The Trustees have pleasure in presenting their report and the financial statements of the charity for the year ending 31 August 2011.

The Message Trust is a company limited by guarantee and a registered charity governed by its memorandum and articles of association. Charity number 1081467. Company number 03961183. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice – Accounting and Reporting by Charities.

BACKGROUND AND OBJECTIVESThe Message was formed in 1991 with one full-time member of sta", who worked mainly within secondary schools in the Greater Manchester area. This work developed with the formation of a dance music band, The Tribe who became one of Europe’s most popular Christian Music groups. The formation of Eden teams working in the toughest parts of the city of Manchester and many other projects have added rapid growth with the work now becoming a significant organisation employing 61 paid sta" with an annual income of around £2.7 million.

The organisation was initially set up as the Message to Schools Trust but, with the growth and increasing number of opportunities opening up, all the activities, assets and liabilities were transferred to a new trust, The Message Trust, with e"ect from 31 August 2000. The new Trust, a company limited by guarantee, was incorporated on 30 March 2000 but did not become active until 31 August 2000 when it took over the operations of the old trust.

The Message Trust exists:To advance the Christian religion amongst young people mainly (but not exclusively) of secondary school age in particular by the use of music, drama and speech including utilisation, encouragement, promotion and development of opportunities for education in Christian teaching and morals within schools and secondary educational establishments and otherwise, and

To educate in the Christian religion and Christian lifestyle, minister to, counsel and relieve young people who are excluded from educational establishments, su"ering from dependency, poor, disadvantaged, deprived, marginalised or otherwise in conditions of physical, mental or spiritual need, hardship or distress.

These objects are being worked out in six main areas:

Partnering with local churches, local authorities, schools, the police and other agencies to provide new opportunities and positive experiences for disadvantaged, deprived and marginalised young people across the Greater Manchester region.

Producing quality Christian music and educational resources. Live music bands, printed materials, the internet and multi-media are all used to communicate Christianity to young people in ways that are relevant to today’s youth culture and perspectives.

Community-based ‘Eden’ youth teams advancing the work of The Message through partnerships with local churches. Our goal is to see 8 Eden Hubs across the UK, each one situated in one of the country’s social deprivation hotspots and planting Eden Partnerships throughout their region. Each Eden Partnership would employ full-time and volunteer youth and community workers that would positively impact the people in those areas irrespective of religion, colour or background.

THE MESSAGE TRUST REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011

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Providing regular, long-term, accredited education courses alongside friendship and care to young prisoners in Young O"enders’ Institutions through “Reflex” teams using drama, music, video and other activities.

Providing accredited training courses to youth workers and others through Genetik and a range of training courses in music and dance through the Tribe Academy.

Providing regular, long-term mobile youth centres in Greater Manchester’s urban areas where teenagers have nowhere to go through our two Eden Buses, fully equipped with the latest video game technology and sta"ed by trained and skilled professional youth workers.


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STRUCTURE, GOVERNANCE AND MANAGEMENTThe directors of the charitable company (“the charity”) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees’ recruitment is by personal contact of existing Trustees. They are then elected by the Board of Trustees in consultation with the Chief Executive, on the basis of their expertise, wisdom and advice that they can bring to the Management and Administration of the Trust.

The Board of Trustees has a variety of experience including both Christian ministry and commercial business skills. They meet quarterly to oversee the vision and strategies of the charity. Executive Directors have been appointed by the Trustees to oversee the day-to-day operations of the charity. The Board is accountable to the Charity Commission for the careful use of charitable and other public funds provided in a variety of forms, and for the achievement of appropriate performance standards in service delivery. The Board also undertakes at least one additional annual away-day for the purposes of further developing The Message Mission and Vision, and to concentrate on continuous improvement in performance.

With the growth of activities of the Trust an ever-increasing level of expertise is required on a day-to-day basis and an established senior management team is in place that is capable of running the a"airs of the Trust. The Trust’s senior management team is the Executive Board, headed by the Chief Executive, Mr A Hawthorne. The Executive Board meets monthly and its members are both jointly and individually accountable via the Chief Executive to the Board of Trustees. Day-to-day management matters are further scrutinised by a cross-functional team of internal departmental managers, who meet on a monthly basis. This latter group’s work is fed into the Executive process whenever a more significant matter of policy or other key decision-making arises.

The Trustees remain committed to the policy of utilising music bands as one of the most e"ective ways to communicate the Gospel to young people. Our goal continues to be to present the Christian message and lifestyle in ways that are relevant to today’s youth.

The trading activities of these bands, e.g. sales of CDs, are reflected in a separate Trading Company which is fully owned by the Trust. The Trading Company gives all of its profits to the ongoing work of The Trust.

Eden teams also remain one of the primary ways that the Trustees seek to ground the work of The Message with both local churches and the communities. Our goal is to see Eden teams with full-time and volunteer youth and community workers established in the most deprived neighbourhoods of the U.K., positively impacting the people in those areas irrespective of religion, race or background.

The Message recognises the importance of our sta" and aims to help them to develop their potential, improve their skills and gain greater job satisfaction.


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RISK MANAGEMENTRisk awareness is integral to the Trust’s overall management e"ectiveness. All Executive Team members and Managers with the assistance of their teams carry out regular reviews of risks a"ecting their areas of the Trust’s activity. Wherever possible risk is quantified and financial values and other qualitative assessments of risk assigned, including recognition of consequential e"ect. Executive and Board of Trustee status reports detail any changes to the overall levels of risk, particularly when introducing a new activity.

The Board of Trustees consider the consolidated impact of all risks annually, recognising that some risk is positive and beneficial in assisting the organisation to stretch and grow, particularly in terms of innovation. A standardised risk analysis and mapping procedure has been progressively introduced throughout the year. This will now assist the Trust to identify, evaluate and rank any special risk and audit needs or management corrective action required, taking into account the impact and likelihood and the known strengths and weaknesses of internal controls.


Operationally the activity of The Message Trust is split into two parallel functions: Mission and Support.

Mission encompasses sta" and volunteers with regular or frequent face to face contact with young people. Each of the mission project areas and departments has its own branded identity as follows: Eden Buses (mobile youth centres), Eden Projects and Life Centres (youth teams in urban communities), LZ7 (educational rock group), Twelve24 (educational hip-hop group), In Yer Face (educational drama group), Events team (inc. technicians and engineers), Reflex (working with young o"enders), and Genetik (training initiatives).

Support encompasses sta" and volunteers with minimal or no direct contact with young people and is structured departmentally as follows: Administration, Operations (inc. fleet and facilities management), Finance, Communications, Fundraising, and the Executive Leadership team.

SUMMARY OF MISSION PRIORITIES:The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Our mission is to demonstrate and explain the Christian faith to teenagers in very practical and relevant ways using a variety of means including: educational work in high schools and young o"ender institutions, relational and recreational work in community centres, churches and outdoors. We have a particular concern for urban youth from deprived or socially excluded backgrounds who do not receive the same opportunities as those growing up in the wealthier suburbs.

The Message Trust’s Executive leadership team seek to achieve this by motivating sta" and volunteers with a compelling vision and supporting them within a robust management framework.

We ensure our Volunteers have comprehensive support to their roles through appropriate policies and procedures, clarifying the extent of their remit and providing checks and balances in relation to the key areas of the Management & HR Strategy.

ACHIEVEMENTS AND PERFORMANCE The Message: 2010–11 in reviewThe year ending August 31, 2011 was without doubt the most exciting and successful in The Message’s twenty year history. New ministries were birthed, existing work saw growth and through it all, more young people in schools, prisons and disadvantaged communities found the hope and help of Jesus Christ.

The following pages o"er a snapshot of the progress in each of our mission and support areas, together with short case studies about some of the young people our work has impacted this year.


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BY PROJECT AREA:

Following a slight redesign of the course structure, our Genetik youth work training programme recruited 19 students (five on the Urban stream, 14 on the Creative) in 2010–11. The programme’s teaching element once again attracted high quality speakers and contributors and the various placements with local churches saw each student fulfilling a total of around 700 volunteer hours during the year.

Graduates from the 2010–11 intake have gone on to accept a wide range of paid and voluntary youth work and ministry opportunities in Manchester and beyond. Two students formed a new theatre-based schools team in Northern Ireland (see below); others took up positions as a drummer for a schools band in Plymouth; a sta! worker with Eden Openshaw; and even a trainer of other youth workers.

CREATIVE TEAMSOur work in high schools in and beyond Greater Manchester continued this year and was strengthened by the arrival of MaLoKai who joined us as a new associate ministry (see also below).

Altogether, our bands and theatre company fulfilled 45 schools weeks and a handful of courses in prisons. These put us in contact with an estimated 40,000 young people, around 12,000 of whom attended evangelistic schools gigs and at least 6,000 of whom made a positive response to the gospel.

While working in schools remained their main priority, our teams also accepted a number of invitations to perform at festivals and conferences in UK and Europe. We estimate the total audiences for these performances to be well in excess of 200,000 people between September 2010 and August 2011.

LZ7 began a highly successful year with the release of their single This Little Light which they had performed extensively throughout the previous summer. It reached number 26 in the UK charts and received national airplay on BBC Radio 1, MTV and other cable networks. Soon after, the band released their album Light which garnered glowing reviews from critics, and coverage in the national press. This positive exposure saw the band busier than ever in the following months, and led to greater responses in their evangelistic appeals than they had previously seen. Between schools weeks, the band also toured the new album across the UK and Europe.

In November, LZ7 visited Maidenhead, where front man Lindz West himself grew up, for a very special schools week. During the week, LZ7 took 21 one-hour lessons on the theme of good choices and performed lunchtime concerts across five schools, including Lindz’s own high school.

By day three, every single ticket for the end of week show was sold out – the venue had to be redesigned to take the demand for tickets. At the show, not only did over 850 young people pack into the venue, hundreds made first-time commitments to Christ following a clear gospel appeal. Over 300 Bibles have since been handed out with ‘What Now?’ booklets, and young people have been followed up through special meetings and Christian groups in schools.

‘It was without doubt the most amazing and best week I have ever had in schools in 22 years,’ says Wayne Dixon, a Scripture Union schools worker who coordinated the schools week. ‘It was a great example of vision and partnership in action.’


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Twelve24 grew in gifting and popularity last year, delivering many successful schools weeks across Manchester and further afield. A typical comment came from one senior school sta! member who wrote, ‘What a fantastic

week we had with Twelve24! We saw many young people make decisions at the end of week concert and many have followed through other school activities. There is a growing group of students who I keep hearing about as starting journeys with God – it’s great and exciting stu!. We are now looking to plant a church here from the new year.’ The band also spent time in the studio during the year working on a new mini-album, Better Words.


In Yer Face theatre company brought a new interactive show to Greater Manchester high schools in the spring: The Rough Guide To Staying Alive, a hard-hitting guide to drugs, sexual health, relationships, peer influence and crime. The show explores issues relevant to healthy life development and citizenship and is designed with gaps in the narrative which challenge the audience to explore their own thinking and behaviour. The team also continued to write the youth version of UCB’s The Word for Today, Word 4U 2Day, which reaches 140,000 young people each quarter with daily guidance from the Bible.

TWELVE24 PROMO SHOT AND E.P.

GRAPHICS FOR ‘BETTER WORDS’

(ABOVE)

CAST MEMBERS BRENDA NOBLE AND MATT BRITTON PLAYING RAHAB AND HOSEA, IN THEIR PRODUCTION OF “WE COULD BE HEROES JUST FOR ONE LIFE”.

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This has been a year of dynamic growth for Eden. Regional hubs established last year in London, the North East and Yorkshire launched a total of eight new Eden partnerships (four in London, three in the NE, one in Yorkshire) taking to 20 the total of active Eden partnerships in operation by August 2011 with several more poised to come on stream.

Together, these teams delivered approximately 4,000 hours of youth and community work each month, involving around 200 committed volunteers in the lives of around 2,000 disadvantaged young people and their families.

Recognising the centrality of new church partners, volunteers and donors to Eden’s growth, we also launched a marketing campaign based around short films o"ering glimpses into the lives of current Eden team members. Seven ‘Being Extra Ordinary’ films were created and screened at conferences, on UCB TV and broadcast virally through YouTube and websites. As well as receiving an audience of many thousands, we were delighted that the films were recognised with a Gold Award by the Christian Broadcasting Council.

Eden Bus’s strong partnerships with local churches saw more high-quality youth work across Greater Manchester and beyond throughout the year. Greater Manchester Police and neighbourhood agencies have commended it for its role in bringing down levels of antisocial behaviour in the areas it visits each week.

However it was becoming increasingly clear that the two buses which had served us for many years, clocking up hundreds of thousands of miles around Greater Manchester, were now too expensive to maintain and a potential safety hazard.

We were therefore delighted to receive a generous donation from Stagecoach Manchester of a replacement double-decker bus worth around £24,000, and during 2011 fundraising got underway to completely repurpose the bus for use by our teams. The newly refitted Eden Bus will be delivered and operational by early 2012.

This year, The Message awarded an 18-year-old volunteer from Eden Buttershaw the title of Urban Hero of the Year at our annual awards ceremony.

Lewis Murch grew up on the Buttershaw estate in Bradford, a community in the bottom two percent of deprived wards in England. In 2010, his talent for free-running was spotted by the Eden team there and he was encouraged and supported to use his gifts to help others. He began a free running outreach project which now attracts up

to 50 young men from the estate every week.

‘Lewis has become a real role model for a lot of guys,’ comments Gav Humphries, Eden Buttershaw Team Leader. ‘Many of them are just like Lewis – growing up without a father figure in their lives. But he’s giving them someone to look up to. He wants to finish his education and he’s got big ambitions for the future – two things that really go against the grain of this estate.’

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MESSAGE ENTERPRISE CENTREIn early 2011, we announced plans to acquire and convert a derelict building next to our HQ in Sharston, repurposing it for an ambitious training and job creation programme: the Message Enterprise Centre.

Our experience over the last twenty years shows that a lack of work is one of the most common reasons ex-o"enders go back to crime. We believe that when you give young men and women a real job, a stable place to live and the help of a supportive community, you give them the best possible chance of becoming useful members of society.

Following a planned opening in Summer 2012, the Centre will house six brand-new businesses dedicated to training and creating jobs for around 50 ex-o"enders and other vulnerable young adults we’re in contact with.

Between September 2010 and August 2011, much of the groundwork for this exciting new initiative took place, including negotiating the purchase of a 125-year lease from Manchester City Council; agreeing the licence to commence the clearing work; securing the site and working with the Community Payback teams (Probation Service) to clear the site of debris and overgrown vegetation.

Additionally, fundraising began towards the £1m refurbishment and the estimated £300k per annum operating costs.

The Message Enterprise Centre will become a charity in its own right during the course of 2012.

Even before its doors open, the MEC was already having an impact helping ex-o"enders get their lives back on track this year.

THE MESSAGE TRUST

REPORT TO THE TRUSTEES YEAR ENDING 31 AUGUST 2011

BELOW: ARTIST’S IMPRESSIONS OF WHAT THE M.E.C. WILL LOOK IN ONE YEAR’S TIME

BELOW:THE BUILDING WILL HAVE AN INTERNAL STREET WITH OFFICES AND WORKSPACES

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ASSOCIATE TEAMSMultiplication of our ministry is the vision behind Genetik: passing on our ‘DNA’ to young people and releasing them to grow ministry that meets the needs of more young people. This is also the philosophy behind the new Associates ministry model which we launched during 2010–11.

Associate bands and mission teams will relate to The Message closely and often be supported to get started, while remaining independent and becoming self-su"cient. This means they will be free to pursue opportunities outside of The Message while keeping the distinctives and values which make Message ministries so e!ective.

The first raft of Associate ministries include On The Edge Theatre Company, established by former Genetik students Georgia Houghton and Heather Turkington, and rock band MaLoKai who began working with The Message in 2011. Plans for several other new Associate ministries are in the pipeline.

Adam (pictured above) was one of the Community Payback team sent to work on clearing the derelict site next door to our headquarters, following a conviction for GBH. But God was on his case – he ended up chatting with two members of our Reflex team who helped him find a church which could give him the support he needed. Since then, Adam has continued working with The Message in preparing the MEC site.

Adam is excited about how the Centre is going to help lads like the ones he worked with on community service: ‘It’s obvious why people continue to o"end: it’s all they know. If you only know one thing, you’re going to carry on doing that thing.

‘The Enterprise Centre is going to point people in the right direction. From seeing these business people, how they live, what they’ve got in life, how they are around people, I believe you’ll get huge breakthrough.’


THE M.E.C. BEFORE THE CLEAN-UP BEGAN

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The work of the Reflex team continued to have a life-changing impact on the lives of many young men and women in prisons and young o!enders’ units around the North West, and those settling back into life in the community.

Reflex’s e!ective outreach work which includes media, music and theatre courses, life skills and discipleship groups, put our team members in contact with an average of 400 young men and women from HMP/HMYOI Forest Bank, Hindley, Styal and Thorn Cross each month last year. Chapel services in each institution attracted an additional 160 young men and women during an average month.

Testimonies from the team abounded, including many hardened o!enders meeting Jesus and becoming soul-winners, and women freed from long term self-harm issues. This year the team appointed Nick Shahlavi as a full-time worker – himself a former o!ender before he turned his life round and began volunteering with Reflex.

PRAYERPrayer continues to play a major part in our life together through our monthly Prayer Days, daily devotional times in the o"ce and a busier-than-ever Prayer Room.

We have also been excited to be partners in a new work of God, Prayer Storm, which has a vision to raise up a growing number of young people in prayer for revival for our city and nation. Last year two large Prayer Storm gatherings and a number of smaller prayer meetings saw hundreds of young people devoting themselves to worship and intercession.


FROM REPEAT OFFENDER TO COMPLETE SURRENDERUntil two years ago, Stacey had spent all of her adult life behind bars. One drugs o"ence led to another and, in her words, prison was like a revolving door: ‘I’d be out and back in. I had no support. Each time I had every intention of staying o" heroin, but I never did. I would smoke on the first day I was out, and I was back at square one.’

But on her last sentence, Stacey finally found the help she needed. She became a Christian through Bible studies run by

Reflex in HMP Styal. She began to make prison work for her, taking courses and classes. And when the time came for life outside – finding a job, securing a flat and settling into a church – Reflex supported her every step of the way.

Stacey was released as a Priority and Prolific O"ender (PPO), with a stringent monitoring regime. But her probation o!cer was so impressed with Stacey’s new attitude she was released from the scheme within seven months – the quickest time on record.

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OPERATIONS AND SUPPORTOur supporter communications developed significantly over the year, keeping around 20,000 people up to date with the latest news, testimonies and ways to get involved. Message Creative worked hard to ensure that Flow magazine (three times a year) and the Prayer Calendar (six times a year) were high quality and truly representative of what God is doing through The Message. These were complemented in 2011 with the launch of the Flow Podcast, a monthly podcast programme featuring interviews with Andy Hawthorne and other team members, and a relaunch of the Message website (www.message.org.uk).

This year, our fundraising focused again on drawing more supporters into regular giving relationships with The Message through church visits, appeals and sta! personal support. Together with another successful Urban Hero Awards, we also experimented with a new Gala Dinner in November. Continued focus was placed on relationship fundraising with trusts and major donors.

Some sta! changes were made to support this work: to allow Frank Green to take on more responsibilities for the Message Enterprise Centre, we employed a part-time fundraising consultant; and to strengthen the administrative capability of the team we appointed a part-time database assistant.

In July, The Message also opened its doors for its first ever Open Day. As well as performances from bands, sta! members were on hand to explain the whole range of Message ministry and there were tours of the future MEC building. Dozens of supporters attended, helping them deepen their partnership with our work.

EXECUTIVE TEAM, STAFF AND VOLUNTEERSOver the year, there were a few changes to our sta! team. A new appointment was made to the Executive Team: Ian Rowbottom, a long-standing member of sta!, was appointed to Executive Director, Operations. We reshaped our Events team to better serve our changing needs in schools which involved a small number of redundancies. To support sta! better and to pick up responsibility for HR following Frank Green’s appointment as MEC Director, the decision was taken to appoint a part-time HR Manager. During the course of the year, the Executive Team ran a sta! survey to monitor sta! satisfaction and motivation. Following this, a decision was taken to introduce monthly Exec Question Times following Tuesday sta! prayers, to improve communication between the exec team and the rest of the sta!.

We continue to attract young people into internships and there were three people working full-time for The Message in this capacity during the year.

Volunteers continue to play a crucial part across all of The Message’s ministry in schools, communities and prisons, but also behind the scenes in admin and operations roles. Over the year an estimated 20,000 volunteer hours were freely given in support of Message activities.


During 2011, we adopted a new strapline to better describe the breadth of ministry we are now involved with, including beyond Greater Manchester. ’Faith in Young People’ neatly captures three things that have always been central to The Message.

Firstly, it speaks of our commitment to the most damaged and vulnerable young people and our faith that they can go from being the problem to the

answer. Secondly, it strongly asserts that our Christian faith is our engine and the answer for any life or community, no matter how broken. Finally, it demonstrates our conviction that faith breeds faith and that our work is creating an army of faith-filled young men and women who themselves will proclaim and demonstrate the power of Jesus Christ to change lives.

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COMPASSION FOR THE POOREST OF THE POORThe Message’s commitment to helping the poor around the world continued to find expression in our support for other ministries through our tithe fund.Once again we made the people of Haiti a priority through our support of over 50 sponsored children through Compassion UK. Andy and Michele Hawthorne also accompanied Ivy Manchester pastors Anthony and Zoe Delaney on a short trip to capital Port-au-Prince and nearby island LaGonave, meeting pastors and project sta! working tirelessly to help the poorest of the poor rebuild their lives after the 2010 earthquake.

One meeting in particular demonstrated the long term e!ectiveness of our support for the project, explains Andy: ‘A great testimony to the power of child sponsorship was there right before our eyes. Heading up this whole team of architects, project managers and civil engineers, was a young man called Etienne. He’s a former sponsored child, from among the poorest of the poor, who’s got a master’s degree and is now managing this major logistical exercise helping his own people.’

ANDY HAWTHORNE OBEAndy’s outstanding achievements and service to young people in Greater Manchester and beyond were recognised with an OBE in the Queen’s Birthday Honours list in June 2011. Hundreds of supporters and friends of The Message subsequently tweeted or contacted us via Facebook to congratulate him, representing only a fraction of the tens of thousands of lives his work has impacted over more than 20 years.

Two weeks later, Andy addressed more than 600 cross-party MPs, Peers, church leaders and charity representatives at the National Prayer Breakfast at Westminster’s Great Hall. Andy was the keynote speaker at the event which had the theme ‘Raising the aspirations of young people’.

He told breakfast delegates: ‘The Bible works – and Jesus is the answer. The message of the Bible raises the aspirations of young people – we ditch it at our peril. The best of our society is built on this precious book… The more we invest in today’s young people the values that God gave us in this book, the better our society will become.’

One delegate at the breakfast wrote afterwards, ‘He spoke with a rock-solid conviction about his faith in a Jesus who shakes things up, who brings hope to the marginalised and subverts the way things are. A Jesus who transforms lives. It was the kind of speech that I bet someone like William Booth, the founder of the Salvation Army, would have made 150 years ago.’


BELOW: Andy’s son Sam playing with a group of Haitian kids.

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FINANCIAL REVIEWThe 2011 accounts have been prepared in accordance with the Statement Of Recommended Practice (Revised 2005).

The Trustees have taken the opportunity to review all The Message’s key accounting policies to ensure that they continue to be in accordance with the requirements of the SORP and best accounting practice.

Whilst these steps have resulted in enhanced disclosures in the financial statements, it has not been necessary to make any significant amendments to key accounting policies.

REVIEW OF THE YEAR The baseline income was higher than last year at £2.7m (2010: £2.6m). Costs grew but were contained within the budget due to strong financial management and good cost control.

Income and ExpenditureThe Message continued to rely on voluntary income as its principal source of funding. Total voluntary income, including Gift Aid, amounted to £2.3m (2010: £2.0m).

Gifts from Foundations and Trusts has increased to £1,041k (2010: £804k) which constitutes 46% (2010:39%) of all voluntary income. Donations and gifts from individuals (including Gift Aid) of £721k provided an additional 32% (2010: £744k – 37%) of voluntary income, while income from Churches and Ministries provided £172k – 8% (2010: £344k – 17%), and income from Business supporters provided £345k – 15% (2010: £144k – 7%).

Income from fundraising and trading activities fell from £161k in 2010 to £155k in 2011.

The ‘Costs of Generating Voluntary Income’ and ‘Costs of Fund Generating Activities’ in the financial statements, amounted to £177k in 2011 (2010: £174k).

Other funds were generated through charitable activities such as the Genetik training academy £74k (2010: £19k), Projects (including Eden Partnerships & Other Projects) £49k (2010: £195k) and Events £100k (2010: £75k). The academy is not an exclusively commercial operation, as the Trustees want the training and the facility to be available to the community.


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SurplusTotal incoming resources exceeded resources expended in the year by £189k (2010:£50k) of which £68k is within unrestricted funds and £121k is within restricted funds.

Balance Sheet The Balance Sheet as at 31st August 2011 remained strong ensuring that the charity has the assets required to deliver its commitments to the community.

The additions to fixed assets amounted to £62k (2010: £29k) comprising of the purchase of a new VW Transporter; the gift of a new Eden bus; replacement equipment for the Media team and Genetik studio; new computers and software.

Subsidiary undertakingsThe Message’s subsidiary company continues to contribute to the charity’s mission and their financial results are shown in note 4 to the consolidated accounts. The Trustees are confident that the Investment in this company remains beneficial to The Trust, and future profits are expected to be made.

Investment Powers and PoliciesThe Trustees have the power to invest surplus funds of the charity in investments, securities and property as they think fit. The current policy of the Trustees is to invest funds not immediately required by the charity into a range of Treasury and Capital Bond accounts which bear competitive rates of interest. This policy is reviewed periodically by the Trustees.

Reserves policyThe Trustees have adopted a reserves policy which they consider appropriate, to ensure the continuing ability of the Message to meet its objectives and obligations.

In order to be prudent, the Trust has accumulated, in general reserves, an amount equivalent to approximately four weeks of sta! costs. Although the desired level has not been achieved this year the trustees are confident that they can return to that level next year. In addition to the above the Trustees have designated funds to underwrite future mission projects, as outlined below. The designated funds total £629,495 at 31 August 2011 (2010: £553,095).

Grant making PolicyGrants are made only to Eden Partners or to designated individuals directly associated with those Partnerships. Currently there are five active Eden Partnerships and work is ongoing to establish others in the Eden Network.


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PLANS FOR FUTURE PERIODSThe multiplication of disciples is our new strapline. This expresses our vision to go deeper, working harder with local churches to re-integrate and support the thousands of young people who are responding to Christ through our work, and to go wider. We now have an increasing desire to see our work multiply at home and abroad specifically through our new Message Associates initiative. Recently the leadership team and Trustees have set the following ambitious goals for the next few years:

A total of 80 Eden teams (with 960 team members) working hard and seeing fruit on the UK’s toughest estates, and a network of 100 Eden Associates worldwide who carry our values and benefit from our support in terms of training, equipping and resourcing.

25 new creative arts teams (primarily bands and theatre companies) who will train with us for a year and then be sent out as Message Associates to multiply our work of credibly communicating the Good News.

75 previously unemployable young men and women working in our businesses and receiving mentoring, support and housing across the city, and hundreds more working associated businesses set up with our support and encouragement by young entrepreneurs we have met in prison and on the regions toughest estates.

If we can see this vision fulfilled it will take our already fruitful work to an altogether di!erent level in terms of lives changed and communities transformed.


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DIRECTORS AND TRUSTEES

The directors of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year-end were as follows:

C. Hardicre

R.T. Johnson

A.N.T. Morton

R.D. White

P. Nadin

RELATED PARTIESThe Message Trading Company Limited is a fully owned subsidiary company which exists to support the charity by the sale of books, DVDs, CDs and other merchandise related to the Trust’s flagship bands, LZ7 and Twelve24, together with other merchandise associated with the work of The Message Trust. The company aims to give all its profits to the Trust.

A summary of transactions with related parties is set out in note 18 to the financial statements.

TRUSTEES’ RESPONSIBILITIESThe Trustees (who are also directors of The Message Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of a!airs of the charitable company and the group at the end of the year and of the income and expenditure for the year then ended.

In preparing those financial statements, the trustees are required to select suitable accounting policies, as described on pages 25 and 26, and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable. The trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operations.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees also confirm that:

as far as they are aware there is no relevant audit information of which the charity’s auditors are unaware; and

they have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information

Signed by

………………..

Richard T Johnson

(Chairman)

Date: 1st March 2012


21

We have audited the financial statements of The Message Trust for the year ended 31st August 2011which comprise the Consolidated Statement of Financial Activities, the Consolidated Summary Income and Expenditure Account and the Consolidated and Parent Company Balance Sheets and the related notes. The financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the company’s members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorsThe trustees’ (who are also the directors of the company for the purposes of company law) responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees’ Responsibilities. We have been appointed auditors under the Companies Act 2006 and section 43 of the Charities Act 1993 and report to you in accordance with those Acts. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006 and the Charities Act 1993. We also report to you whether, in our opinion, the information given in the Trustees’ Annual Report is consistent with those financial statements. In addition we report to you if, in our opinion, the charity has not kept adequate accounting records, if the charity’s financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustees’ remuneration specified by law are not made.

We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

THE MESSAGE TRUSTINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MESSAGE TRUST

22

Basis of audit opinionWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s and the charitable parent company’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with su"cient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OpinionIn our opinion:

the financial statements give a true and fair view of the state of the group’s and the parent company’s a!airs as at 31st August 2011, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

the financial statements have been prepared in accordance with the Companies Act 2006 and the Charities Act 1993; and

the information given in the Trustees’ Annual Report is consistent with the financial statements.

THE MESSAGE TRUSTINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MESSAGE TRUST

-------------------------------------

1st March 2012

Paul Roper

Senior Statutory Auditor

For and on behalf of

McKellens Ltd

Registered Auditors

Stockport

23

UnrestrictedFunds

RestrictedFunds

Total2011

Total2010

Note £ £ £ £

INCOMING RESOURCES

Incoming Resources from Generated Funds

Voluntary Income 3a 1,222,606 1,064,655 2,287,261 2,041,067

Activities for generating Funds 3b 155,245 0 155,245 160,914

Investment Income 3c 7,636 0 7,636 4,850

Incoming Resources from charitable activities 3d 226,516 61,766 288,282 351,064

TOTAL INCOMING RESOURCES 1,612,003 1,126,421 2,738,424 2,557,895

RESOURCES EXPENDED

Costs of generating funds

Costs of Generating Voluntary Income 5a 102,573 0 102,573 113,548

Costs of Fund Generating Activities 5b 74,345 0 74,345 60,902

(Fundraising & Trading)

Charitable Activities 5c 813,204 1,546,432 2,359,636 2,324,581

Governance Costs 5d 12,406 0 12,406 8,383

TOTAL RESOURCES EXPENDED 1,002,528 1,546,432 2,548,960 2,507,414

NET (OUTGOING) / INCOMING RESOURCES BEFORE TRANSFERS 609,475 (420,011) 189,464 50,481

TRANSFERS

Gross Transfers between Funds 19 (541,320) 541,320 0 0

NET MOVEMENT IN FUNDS 68,155 121,309 189,464 50,481

Total Funds Brought Forward 685,486 304,675 990,161 939,680

TOTAL FUNDS CARRIED FORWARD 753,641 425,984 1,179,625 990,161

THE MESSAGE TRUSTCONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT)


The charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

24

These financial statements were approved by the trustees on 1st March 2012 and signed on their behalf by:

……………………………….. Richard T Johnson, Trustee

……………………………….. Paul Nadin, Trustee

TheMessage

Group2011

TheMessage

Group2010

TheMessage

Trust2011

TheMessage

Trust2010

Note £ £ £ £

FIXED ASSETS

Tangible fixed assets 12 125,139 136,582 125,139 136,582

Investments 4 0 0 5,000 5,000

125,139 136,582 130,139 141,582

CURRENT ASSETS

Stocks 13 3,363 2,135 0 0

Debtors 14 117,816 176,178 119,233 177,025

Investments 15a 1,047,084 815,905 1,047,084 815,905

Cash at bank and in hand 15b 107,543 99,373 107,543 99,373

1,275,806 1,093,591 1,273,860 1,092,303

CREDITORS: Amounts falling due within one year 16 221,320 240,012 219,853 239,201

NET CURRENT ASSETS 1,054,486 853,579 1,054,007 853,102

TOTAL ASSETS LESS CURRENT LIABILITIES 1,179,625 990,161 1,184,146 994,684

NET ASSETS 1,179,625 990,161 1,184,146 994,684

FUNDS OF THE CHARITY

Restricted Income Funds 19a 425,983 304,675 425,983 304,675

Unrestricted Income Funds 19b 753,642 685,486 758,163 690,009

1,179,625 990,161 1,184,146 994,684

Company Registration Number 03961183

THE MESSAGE TRUSTCONSOLIDATED & CHARITY BALANCE SHEETS

AS AT 31 AUGUST 2011

25

1. ACCOUNTING POLICIESBasis of accountingThe financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable accounting standards and the Companies Act 2006.

Basis of consolidationThe group financial statements consolidate the financial statements of the charitable company and its subsidiary undertaking made up to 31 August 2011.

Cash flow statementThe directors have taken advantage of the exemption in Financial Reporting Standard No 1 from including a cash flow statement on the grounds that the group is a small group.

Group financial statementsThese financial statements consolidate the results of the charity and its wholly-owned subsidiary The Message Trading Company Limited on a line by line basis. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions a!orded by section 408 of the Companies Act 2006 and paragraph 397 of SORP 2005. The results of the parent charity are detailed in note 11.

It is the charity’s policy to write o! any deficit on consolidation to reserves.

The accounts include all transactions, assets and liabilities for which the trust is responsible in law.

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

Income taxIncome tax recoverable on gift aid donations is recognised when the income is received.

GrantsGrants to the trust are accounted for as soon as the trust is notified of its legal entitlement and the amount due.

Income from charitable activitiesAll income from events and activities is recognised gross when due, exclusive of Value Added Tax.

Income from InvestmentsInvestment income comprises interest receivable on short-term deposits.

Income from fund-generating activitiesIncome raised by special fundraising events, royalties and trading activities are accounted for gross in the period in which the group is entitled to receipt, exclusive of Value Added Tax.

Resources ExpendedResources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any Value Added Tax which cannot be recovered.

Cost of fund-generating activitiesCosts of fund-generating activities have been allocated to trading or fundraising according to how they were incurred. Where costs have been shared the expenditure has been allocated to funds on the basis of their estimated consumption of expenses.

Direct Charitable ExpenditureDirectly attributable expenditure has been allocated to the appropriate fund. Where costs have been shared the expenditure has been allocated to funds on the basis of their estimated consumption of expenses.

Grants are recognised in the accounts at the point in time the Trustees approve the grant.

THE MESSAGE TRUSTNOTES TO THE FINANCIAL STATEMENTS


26

1. ACCOUNTING POLICIES (CONTINUED)GovernanceThese costs include the costs of governance arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in generating funds and in charitable activities. This includes such items as external audit, legal advice for trustees and costs associated with constitutional and statutory requirements, including trustees’ meetings.

Volunteers and donated services and facilitiesThe value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the Trustees’ annual report.

Fixed AssetsIndividual fixed assets costing £500 or more are capitalised at cost.

Depreciation is provided in equal annual instalments over the estimated useful lives of the assets and is calculated on the cost or valuation of the assets.

The following annual rates are used:

Stage & O"ce Equipment 25%

Motor Vehicles 25%

Depreciation is first charged in the quarter following acquisition and in the last full quarter before disposal.

No provision is made for the increased cost of tangible fixed assets.

InvestmentsInvestments held as fixed assets are stated at cost less provision for permanent diminution in value.

StocksStocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock.

Current AssetsAmounts owing to the charity at 31 August 2011 in respect of income are shown as debtors less provision for amounts that may prove uncollectable.

FundsFunds held by the charity are either:

Unrestricted general fundsThese are funds that can be used in accordance with the charitable objects at the discretion of the trustees.

Designated fundsThese are unrestricted funds that have been earmarked for a particular project. This designation is for administrative purposes only and does not restrict the trustees’ discretion to apply the fund within the objects of the charity.

Restricted fundsThese are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Operating leasesRentals payable under operating leases are charged to the Statement of Financial Activities in equal annual instalments over the term of the lease.

Leasing and hire purchase commitmentsAssets held under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs and other benefitsThe pension costs charged in the financial statements represent the contributions payable by the company during the period in accordance with FRS 17.



27

2. LEGAL STATUS OF THE CHARITYThe charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1.

3. INCOMING RESOURCES

Many volunteers give freely of their time in the service of our Lord for the Trust, the value of which is unquantifiable.



Unrestricted Funds Total

£

Restricted FundsTotal

£

TOTAL2011

£

TOTAL2010

£

3a Voluntary Income

Gifts Individuals & God Parents 407,433 189,655 597,088 627,431

Gifts Churches & Ministries 71,424 100,527 171,951 343,800

Gifts Business 227,504 117,510 345,014 144,348

Gifts Trusts & Foundations 433,106 608,220 1,041,326 803,538

Gifts Governments 0 7,600 7,600 5,536

Tax Refund 83,139 41,143 124,282 116,414

1,222,606 1,064,655 2,287,261 2,041,067

3b Generating Income

Trading Sales 26,859 0 26,859 31,452

Fundraising Events 128,386 0 128,386 129,462

155,245 0 155,245 160,914

3c Investment Income

Bank Interest Received 7,636 0 7,636 4,850

7,636 0 7,636 4,850

3d Incoming Resources from Charitable Activites

Genetik Income 63,735 9,811 73,546 18,746

Project Income 2,500 46,769 49,269 195,431

Event Income 99,554 125 99,679 74,913

Comms Income 45,133 0 45,133 37,639

Royalties 0 14 14 0

Sundry Income 15,594 5,047 20,641 24,335

226,516 61,766 288,282 351,064

TOTAL INCOMING RESOURCES 1,612,003 1,126,421 2,738,424 2,557,895

28

4. COMMERCIAL TRADING OPERATIONS AND INVESTMENT IN TRADING SUBSIDIARYThe wholly-owned trading subsidiary, The Message Trading Company Limited, which is incorporated in the United Kingdom, aims to pay all its profits to the charity by gift aid. The Message Trading Company Limited sells books, DVDs, CDs and other merchandise related to The Tribe (previously The World Wide Message Tribe) band, LZ7, Twelve24 and other merchandise associated with the work of the charity. The charity owns the entire issued share capital of 5,000 ordinary shares of £1 each. A summary of the trading results is shown below.

The net assets of the trading subsidiary are £477 (2010 £477). TOTAL

2011£

TOTAL2010

£

TURNOVER 26,859 31,452

Cost of sales (13,883) (17,422)

GROSS PROFIT 12,976 14,030

Distribution costs (11,882) (12,900)

Administrative expenses (1,094) (1,130)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 0 0

Tax on profit on ordinary activities 0 0

RETAINED PROFIT FOR THE FINANCIAL YEAR 0 0

Balance brought forward (4,523) (4,523)

Balance carried forward (4,523) (4,523)



29

5. RESOURCES EXPENDED



Sta!£

Depre-ciation

£

Project Costs

£DirectCosts

Sta!£

Depre-ciation

£

OtherSupport

Costs£

Total Support

Costs£

Total2011

£

Total2010

£

5a Costs of Generating Voluntary Income

Fundraising 72,557 1,464 28,552 102,573 0 0 0 0 102,573 113,548

72,557 1,464 28,552 102,573 0 0 0 0 102,573 113,548

5b Costs of Fund Generating Activities

Trading 11,656 0 14,387 26,043 473 17 326 816 26,859 31,452

Fundraising 0 0 47,486 47,486 0 0 0 0 47,486 29,450

11,656 0 61,873 73,529 473 17 326 816 74,345 60,902

5c Direct Charitable Expenditure Unrestricted Funds

Events 106,076 13,335 102,072 221,483 138,863 5,730 97,069 241,662 463,145 481,142

Genetik 21,462 0 76,212 97,674 50,929 2,045 35,524 88,498 186,172 120,691

Twelve24 (4,842) 731 22,166 18,055 29,629 1,130 20,584 51,343 69,398 75,373

In Yer Face 18,040 1,450 16,225 35,715 33,889 1,313 23,572 58,774 94,489 88,732

Total Unrestricted Funds 140,736 15,516 216,675 372,927 253,310 10,218 176,749 440,277 813,204 765,938

Restricted Funds

Edens - see also Note 6 125,962 0 273,322 399,284 134,740 5,622 94,276 234,638 633,922 839,337

Bus 64,097 5,994 49,618 119,709 80,535 3,174 56,092 139,801 259,510 204,699

Message Enterprise 0 0 36,035 36,035 16,643 682 11,628 28,953 64,988 0

Mission Central 76,337 0 26,546 102,883 66,882 2,631 46,576 116,089 218,972 165,232

HOPE 0 0 0 0 0 0 0 0 0 19,313

Prisons 109,070 0 21,482 130,552 50,207 2,056 35,076 87,339 217,891 201,069

Other Restricted 151,149 0 0 151,149 0 0 0 0 151,149 128,993

Total Restricted Funds 526,615 5,994 407,003 939,612 349,007 14,165 243,648 606,820 1,546,432 1,558,643

667,351 21,510 623,678 1,312,539 602,317 24,383 420,397 1,047,097 2,359,636 2,324,581

5d Governance

Governance 0 0 12,406 12,406 0 0 0 0 12,406 8,383

0 0 12,406 12,406 0 0 0 0 12,406 8,383

TOTAL RESOURCES EXPENDED 751,564 22,974 726,509 1,501,047 602,790 24,400 420,723 1,047,913 2,548,960 2,507,414

30

6. GRANTS – PAYABLE IN FURTHERANCE OF THE CHARITY’S OBJECTS

Total2011

Total2010

Eden Partnerships £ £

Eden Gorton 18,500 25,395

Eden Eccles 18,500 26,395

Eden Leigh 0 25,395

Eden Westwood 25,707 27,641

Eden Limeside 18,500 25,395

St Aidan’s Hull 12,563 0

Eden London 25,125 5,937

Eden She"eld 8,540 11,686

Eden North East 21,106 0

148,541 147,844

The Message Trust works in partnership with, and makes grants to, autonomous Eden Partners, who look to The Message Trust for support and guidance on best practice in work with young people.

These grants are included within Edens – Restricted Funds – Project Costs in Note 5c above.

7. TOTAL RESOURCES EXPENDEDIncludes:

2011£

2010£

Auditors’ remuneration 7,150 6,207

Depreciation of owned assets 69,365 51,498

Depreciation of assets held under finance leases 0 0

Loss on Disposal of Asset 1,072 725

Profit on Disposal of Asset (9,070) (871)

Rentals under operating leases:

32,175 30,500

equipment 13,068 26,973

8. ANALYSIS OF SUPPORT COSTSAll Support costs have been allocated directly to each project on a basis consistent with the use of resources.

9. INFORMATION REGARDING TRUSTEES AND EMPLOYEESEmployee costs during the year:

2011£

2010£

Wages and salaries 1,185,086 1,325,933

Social security costs 110,833 120,830

Pension costs 58,434 48,879

1,354,353 1,495,642

Average number of sta! employed: No. No.

Charitable Activities 31 36

Cost of Generating Funds 4 4

Governance / Management 5 4

Others - Support 21 21

61 65

No employee earned £60,000 pa or more.

Amounts paid or Reimbursed to Trustees £Nil (2010: £Nil)

10. TAX ON SURPLUS ON ORDINARY ACTIVITES

2011£

2010£

Corporation tax based on the results of the Trading Company for the year at Nil% (2010: Nil%) 0 0

0 0

11. FINANCIAL PERFORMANCE OF THE CHARITYAs permitted by Section 408 of the Companies Act 2006, the income and expenditure account of the parent company is not presented as part of these financial statements. The parent company’s gross income for the year was £2,711,565 (2010: £2,526,443) and the net incoming resources for the year amounted to £189,464 (2010: £50,481)



31

Finance Leases and Hire Purchase agreementsIncluded within the net book value of £125,139 is £0 (2010: £0) relating to assets held under finance leases and similar hire purchase contracts, due to assets being sold or agreements paid in full during 2010. The depreciation charges to the financial statements in the year is respect of such assets amounted to £0 (2010: £0).

The Message Group StageEquipment

£

O"ceEquipment

£

MotorVehicles

£Total

£

Cost at 1 September 2010

Additions

Disposals

at 31 August 2011

145,197 204,992 173,417 523,606

27,873 5,304 29,127 62,304

(21,554) (19,519) (7,580) (48,653)

151,516 190,777 194,964 537,257

Depreciation at 1 September 2010

Charge for year

Disposals

at 31 August 2011

121,609 153,468 111,947 387,024

11,728 23,855 33,782 69,365

(20,465) (19,500) (4,306) (44,271)

112,872 157,823 141,423 412,118

Net Book Value at 31 August 2011 38,644 32,954 53,541 125,139

at 31 August 2010 23,588 51,524 61,470 136,582

The Message TrustStage

Equipment£

O"ceEquipment

£

MotorVehicles

£Total

£

Cost at 1 September 2010

Additions

Disposals

at 31 August 2011

144,197 204,992 173,417 522,606

27,873 5,304 29,127 62,304

(21,554) (19,519) (7,580) (48,653)

150,516 190,777 194,964 536,257

Depreciation at 1 September 2010

Charge for year

Disposals

at 31 August 2011

120,609 153,468 111,947 386,024

11,728 23,855 33,782 69,365

(20,465) (19,500) (4,306) (44,271)

111,872 157,823 141,423 411,118

Net Book Value at 31 August 2011 38,644 32,954 53,541 125,139

at 31 August 2010 23,588 51,524 61,470 136,582

12. FIXED ASSETS

TheMessage

Group2011

£

TheMessage

Group2010

£

TheMessage

Trust2011

£

TheMessage

Trust2010

£

Stocks of finished goods and goods for resale 3,363 2,135 0 0

13. STOCKS



32

TheMessage

Group2011

£

TheMessage

Group2010

£

TheMessage

Trust2011

£

TheMessage

Trust2010

£

15a. Investments

Capital Reserve Account 0 16,800 0 16,800

Treasury Reserve Account/Capital Bond/Scottish Widows 409,338 401,914 409,338 401,914

Second Reserve Account 637,746 397,191 637,746 397,191

1,047,084 815,905 1,047,084 815,905

15b. Cash at Bank and in Hand

Current Accounts 107,088 98,861 107,088 98,861

Cash 455 512 455 512

107,543 99,373 107,543 99,373

15. CASH AT BANK & IN HAND

TheMessage

Group2011

£

TheMessage

Group2010

£

TheMessage

Trust2011

£

TheMessage

Trust2010

£

Bank loans & Overdrafts 0 46,365 0 46,365

Trade creditors 51,633 33,365 50,853 32,594

Other creditors including taxation and social security 128,822 76,012 128,685 75,972

Accruals and deferred income 40,865 84,270 40,315 84,270

221,320 240,012 219,853 239,201

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

TheMessage

Group2011

£

TheMessage

Group2010

£

TheMessage

Trust2011

£

TheMessage

Trust2010

£

Trade debtors 23,354 40,084 23,354 40,084

Amounts due from Subsidiary 0 0 2,260 2,625

Other debtors 18,759 6,704 17,916 6,704

Prepayments and accrued income 75,703 129,390 75,703 127,612

117,816 176,178 119,233 177,025

14. DEBTORS

2011£

2010£

Deferred income brought forward 72,076 197,403

Income released in the year (358,339) (193,994)

Added in the year 313,173 68,667

Deferred income carried forward 26,910 72,076

Deferred IncomeIncluded in accruals and deferred income of £40,865 (2010 £84,270) is deferred income of:

Deferred income consists of grants and fees received in advance of projects and courses taking place after the year end. The resources are held as a liability until the charity becomes entitled to the income when the project or course takes place, at which point the income is released and recognised as an incoming resource.



33

17. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR Creditors: Amounts falling due after one year is Nil (2010: Nil).

18. RELATED PARTY TRANSACTIONS The Trading Company sold merchandise stock to the value of £9,607 (2010: £11,576) at cost to the Charity during the year. Appropriate expenses (wages, premises costs, etc) were recharged from the Charity to the Trading Company at cost.

During the year gifts totalling £4,794 were given to the Life Association, providing 4 months’ schooling for 50 poor children in India, and a further £7,500 for relief of the poor in India. These are related party transactions as Simon Hawthorne, Director of the Life Association is a close relative of Andy Hawthorne, Chief Executive of The Message Trust.

19. RECONCILIATION OF MOVEMENTS IN FUNDS (see next page for table)The Transfer of Funds from Unrestricted to Restricted, relates to support for Restricted Projects.

The Eden projects (Harpurhey, Hattersley, Old Tra!ord and Salford Lifecentre) comprise teams of youth workers who regularly work within Secondary schools (e.g. taking RE lessons, assemblies, lunch clubs) preparing the groundwork for visits by LZ7 and other Christian bands, as well as being attached to a local church where they continue with after school activities. Since 1 September 2010, these projects have continued to operate independently, with the assistance of The Message Trust.

A number of gifts are received in the year designated for the Eden work but not for a single specified project. These are accumulated in the Eden National Fund and then reallocated to specific Eden Projects at the end of the year as the Trustees see fit.

During the year £76,400 was transferred to designated funds to cover the costs of projects which were otherwise not fully funded.

The Trustees received a large one-o! donation in 2008 and resolved to designate £1m of these donations into a specific fund to underwrite future mission projects. At 31 August 2011 there is £400,000 available within designated funds for underwriting future mission projects, which may or may not be fully funded. These mission projects are outlined in the Trustees report under Plans for Future Periods. The Trustees also designated in 2008 the equivalent of the Net Book Value of Fixed assets for future mission projects, which totals £125,139 at 31 August 2011. A further £90,000 has been designated in 2011, for three specific future projects.

In addition, at the end of 2011 the Trustees have designated £14,356 (2010: £23,358) from General Funds for the purposes of making future donations to other organisations with similar Christian objects to The Message Trust.

The Eden Bus fund relates to the activities of two buses, one purchased by the Lancaster Foundation and leased to the Message Trust, the other purchased and kitted out from donations by the Lancaster Foundation. The costs of this second bus have been capitalised and charges will be made for depreciation over the useful life of the bus.

The Eden Buses, which are fitted with the latest in sound and visual technology, combine two roles. Firstly that of mobile expo’ units providing Christian teaching, information on the dangers of drugs and alcohol abuse, as well as sexual welfare and issues relating to family and homelessness. Secondly as fun areas for the young people to play games on the Dreamcast machines, have a snack and chill out, or watch a video on DVD. They work mainly alongside the various Eden teams around the city of Manchester.



34

Balance at31-Aug-10

£

Movement in Resources TransfersBetween

Funds£

Balance at31-Aug-11

£Incoming

£Outgoing

£

19a. Restricted Funds

Eden Manchester 18,625 130,577 (147,935) 7,098 8,365

Eden National 28,427 195,583 (309,191) 122,390 37,209

Eden Harpurhey 0 17,652 (30,794) 13,142 0

Eden Hattersley 0 0 (2,131) 2,131 0

Eden Old Tra!ord 0 380 (20,696) 20,316 0

Life Centre 148 0 0 (148) 0

Eden Grants 133,174 8,252 (71,137) 48,000 118,289

Eden New 68,017 9,757 (52,718) 0 25,056

Eden Bus 49,703 204,572 (259,510) 85,029 79,794

Message Enterprise 15,000 179,437 (64,988) 20,747 150,196

Mission Central 0 62,385 (218,972) 156,587 0

Prison Fund (9,407) 167,356 (217,891) 66,028 6,086

Other Restricted Funds 988 151,149 (151,149) 0 988

304,675 1,127,100 (1,547,112) 541,320 425,983

19b. Unrestricted Funds

General Fund 132,391 1,612,003 (1,002,527) (617,720) 124,147

Designated Fund 553,095 0 0 76,400 629,495

990,161 2,739,103 (2,549,639) 0 1,179,625



TangibleFixed

Assets£

Net CurrentAssets /

(Liabilities)£

CreditorsDue afterOne Year

£TOTAL

£

Restricted Funds

Eden Central 0 8,365 0 8,365

Eden National 0 37,209 0 37,209

Eden Grants 0 118,289 0 118,289

Eden New 0 25,056 0 25,056

Message Enterprise 0 150,196 0 150,196

Eden Bus 0 79,794 0 79,794

Prison Fund 0 6,086 0 6,086

Other Restricted Fund 0 988 0 988

0 425,983 0 425,983

Unrestricted Funds 125,139 628,503 0 753,642

125,139 1,054,486 0 1,179,625

20. ANALYSIS OF NET ASSETS BY FUND

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21. PENSIONSThe charity operates a defined contribution pension scheme on behalf of its employees. All contributions due have been fully paid.

22. CONTINGENCIESThe trustees have confirmed that there were no contingent liabilities which should be disclosed at 31 August 2011 (2010: Nil).

23. OPERATING LEASE COMMITMENTSAt 31 August 2011 the Group was committed to making the following payments during the next year in respect of operating leases.

24. CAPITAL COMMITMENTSIn 2011 the trustees entered into a long lease agreement with Manchester City Council for land for Message Enterprise projects at a consideration of £75,000. As at 31st August 2011 none of this amount has been paid and the trustees have thus authorised and contracted for future expenditure of £75,000 in this respect.

In addition, at the end of 2011 the Trustees were given a Bus worth £24,000 from Stagecoach Group, for Eden bus projects. They have committed to spend £85,000 in total for the refurbishment of the bus. As at 31st August 2011 £85,000 being authorised but not contracted for.

Buildings£

Land andOther

£

Leases which expire:

Within one year 21,210 594

Within two to five years 33,000 12,942



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The Message TrustLancaster House

Harper RoadSharstonM22 4RG

Tel: 0161 946 2300 Email: [email protected]

www.message.org.uk

Company Limited By Guarantee Company Registration Number 03961183 Registered Charity Number 1081467

Message Trust Annual Report '10-'11

Documents

Transcript of Message Trust Annual Report '10-'11