The Hope Charity
(A Charitable Company Limited by Guarantee)
Trustees’ Annual Report and Financial Statements For the year ended 31 March 2024
Company Registration Number 03171884
Charity Registration Number 1056674
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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CONTENTS
| Page | |
|---|---|
| Charity Information ………………………………………………………………….………………………………………........................ | 3 |
| Trustees’ Annual Report ….…………………….………….……….………….………….……….………….…………........................ | 4-6 |
| Independent Auditor’s Report ………………………………….…………….…………………………….……………........................ | 7-9 |
| Statement of Financial Activities ……………………………………………….,…..……………………….…………........................ | 10 |
| Balance Sheet …………………………………………………………….…………………….………….......................…........................ | 11 |
| Notes to the Financial Statements ……………………………………………………….……………….………………....................... | 12-16 |
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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CHARITY INFORMATION
Trustees and Directors The directors of a charitable company are its trustees for the purpose of charity law. The trustees that served during the financial year and since the year end are: Trustees and Directors Norwood Ravenswood Neville Kahn (until 24.11.23) Miles Webber (since 24.11.23) Tim Isaacs Ben Freeman Senior Management Team Chief Executive Officer Naomi Dickson Director of Finance and Corporate Services Patrick Murphy (to 31.10.23) Robert Morton (from 21.11.23 to 31.05.24) Heather Lees (from 17.06.24) Company Secretary Patrick Murphy (to 1.10.23) Nick Bernstein (since 1.10.23) Auditors Haysmacintyre LLP Bankers Barclays Bank plc Principal and Registered Broadway House Office 80-82 The Broadway Stanmore HA7 4HB
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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Trustees’ Annual Report
THE CHARITY
The trustees are pleased to present their annual report and audited financial statements for the year ended 31 March 2024. The financial statements have been prepared to meet the requirements of the directors’ report and accounts as per the Companies Act 2006. These statements also comply with the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016; the Memorandum and Articles of Association and the 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 - FRS102 (effective 1 January 2022).
The Hope Charity ("Hope") is a wholly owned subsidiary of Norwood Ravenswood (“Norwood”), the largest Jewish charity in the UK supporting vulnerable children and families, children with special educational needs and people with learning disabilities.
Hope previously provided educational support services to children and young people aged between 3 and 19. In 2017, the charity underwent a corporate restructure that saw the cessation of its specialist educational support service (Hope) and the transfer of its Binoh educational support service to Norwood Schools Limited (“Norwood Schools”), another wholly owned subsidiary of Norwood.
Since the transfer, the charity has undertaken very limited activities as reflected in the financial statements. The only activity undertaken during the year was the maintaining of its investment property. The charity continues to ensure the wider public benefit is being served by the space being made available for use by an organisation providing education in line with the charity’s charitable objectives. The trustees will keep options under review as to the future use of the underlying property.
THE GOVERNANCE STRUCTURE
The charity is registered in England and Wales with charity number 1056674 and, a company limited by guarantee, registered in England and Wales with company number 03171884. It is controlled by Norwood. The Board of the charity is made up of the parent charity and other trustees. The Board of Trustees delegate the day-to-day management of the charity to Norwood's Chief Executive Officer, who within her delegated authority has assigned operational matters, including finance, service provisions and employment to the Senior Management Team.
STATEMENT OF PUBLIC BENEFIT
The trustees confirm that they have complied with their duty in Section 17 of the Charities Act 2011; to have regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”. The charity’s detailed charitable objects are contained within its memorandum and articles and as such the trustees ensure that the charity’s activities are carried out for the public benefit through its strategic priorities, primarily through Norwood Schools. Norwood Schools continues to deliver services to those with learning difficulties, children and families in need, primarily for but not restricted to the Jewish Community.
FINANCIAL REVIEW
The Hope Charity entered into a new 35-year lease on 28 November 2022 with a new tenant. Income generated from the lease was £188,000 (2023: £62,000). The tenant will be operating a school providing education for children with autism and individual additional needs.
Total expenditure in the year was net £1,000 (2023: £104,000). This relates to attributable management and governance costs and costs associated with leasing the property offset by prior year over accruals. After accounting for the unrealised revaluation loss of £150,000 (2023 £200,000), the charity generated a surplus of £37,000 (2023: Deficit £242,000).
The net assets of the charity as at 31 March 2024 was £2,072,000 (2023: £2,035,000).
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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RESERVES POLICY
Consistent with the approach adopted in previous years, the trustees of the charity adopted the reserves policy for the Norwood group. However, the free reserves of each entity have been separately evaluated. An important role for trustees is to independently manage the long-term sustainability of each entity. The Hope Charity holds reserves to:
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ensure, as a landlord, it can meet its maintenance and refurbishment obligations under the lease agreement;
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demonstrate to the beneficiaries of the charity its resilience to manage unforeseen financial difficulties;
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give assurance to its creditor (Norwood Schools) that it can meet its financial commitments;
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give confidence to the readers of the accounts by demonstrating good stewardship and active financial management; and
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manage risks to the charity’s reputation from holding substantial unspent funds at the year-end without an explanation.
As at 31 March 2024, the total reserves of the charity were £2,072,000 (2023: £2,035,000). Reserves were calculated as follows:
| 31 -Mar-24 £’000 |
31 -Mar-23 £’000 |
|
|---|---|---|
| Unrestricted reserves | 2,072 | 2,035 |
The fixed asset relates to an investment property which is not readily convertible into liquid funds. The Charity generates rental cash flows of £190k. The Charity had no free reserves. The Hope Charity would be supported by its parent Norwood Ravenswood in the event of a cash call.
PRINCIPAL RISKS AND UNCERTAINTIES
Risk is inherent in the charity’s operations and the decisions made in pursuit of its charitable goals. The Board is responsible for the nature and extent of the principal risks it is willing to take but delegates the detailed review of the corporate risk register to the Norwood Audit and Risk Committee. The Board, through the Norwood Audit and Risk Committee, is also responsible for ensuring that risks are effectively managed.
The main risk to the charity is liquidity risk. Any risk is mitigated by using an intercompany loan facility with Norwood Schools (a Group charity). Norwood Schools has confirmed to the Charity that it will not seek repayment of the outstanding loan for at least 12 months from the signing of the accounts.
GOING CONCERN
These accounts have been prepared on a going concern basis. The assessment of the charity’s ability to continue as a going concern has been made taking into consideration the charity’s overall financial position and the support of the parent charity. The charity has total reserves at the end of the financial year of £2,072,000 and support from the parent charity to pay for anticipated day-to-day expenditure in the charity and liabilities as they fall due in the foreseeable future. 'Stress-testing' assumptions have been formed around going concern such as, if no income was received for 12 months following the signing of the accounts. Given the support from the parent charity this would have not had an impact on Hope's going concern.
The Hope Charity entered into a 35-year lease with a new tenant in the prior year. The charity’s only liabilities are to Norwood Schools. Norwood Ravenswood intends to support The Hope Charity for at least 12 months from the date of approval of the statutory financial statements for the year ended 31 March 2024 to enable it to meet its liabilities amounting to £886,000 as they fall due. Accordingly, the trustees are satisfied it is appropriate to prepare these accounts on a going concern basis.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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STRUCTURE, GOVERNANCE AND MANAGEMENT
Our Board of Trustees delegates the day-to-day management of the Charity to Norwood's Chief Executive Officer and the Senior Management Team. To support the crucial role of Norwood’s board, sub-committees and service review panels are set up with specific terms of reference and delegated authorities. Trustees are appointed for a four-year term and may serve a second consecutive term.
TRUSTEES' RESPONSIBILITIES STATEMENT
The trustees (who are also directors of the Charity for the purposes of Company Law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
Company Law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under Company Law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees confirm that:
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So far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Hope Charity is a qualifying entity and thus has taken disclosure exemption for producing a strategic report.
Miles Webber
Ben Freeman
Miles Webber Director/Trustee
Ben Freeman Director/Trustee
27 September 2024
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HOPE CHARITY
Opinion
We have audited the financial statements of The Hope Charity for the year ended 31 March 2024 which comprise Trustees’ Annual Report (incorporating Strategic report), Statement of Financial Activities, Balance Sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Annual Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charitable company; or
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the charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition, in particular in relation to recording income and charitable activities in the correct accounting period and management override of controls. Audit procedures performed by the engagement team included:
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Inspecting correspondence with regulators;
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Reviewing the controls and procedures of the charity relevant to the preparation of the financial statements to ensure these were in place throughout the year;
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Reviewing debtor recoverability post year end.
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Reviewing post balance sheet events.
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Evaluating management’s controls designed to prevent and detect irregularities;
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Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions, and
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Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Richard Weaver (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor
10 Queen Street London
EC4R 1AG
27 September 2024
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
Statement of Financial Activities
For the year ended 31 March 2024
(incorporating the income and expenditure account)
| Unrestricted | Total Funds | Total Funds | ||
|---|---|---|---|---|
| Funds | 2024 | 2023 | ||
| Note | £'000 | £'000 | £'000 | |
| Income from: | ||||
| Charitable activities | 2 | 188 | 188 | 62 |
| Total income | 188 | 188 | 62 | |
| Expenditure on: | ||||
| Charitable activities | 3 | (1) | (1) | (104) |
| Total cost | (1) | (1) | (104) | |
| Operating surplus (deficit) | 187 | 187 | (42) | |
| Net (loss) on revaluation of investment | 4 | (150) | (150) | (200) |
| Net income( loss) | 37 | 37 | (242) | |
| Reconciliation of funds: | ||||
| Total funds brought forward | 7 | 2,035 | 2,035 | 2,277 |
| Total funds carried forward | 2,072 | 2,072 | 2,035 |
All income and expenditure is derived from continuing activities. The comparative figures for each fund are shown in the notes to the financial statements (Note 9). The accompanying notes on pages 12 to 16 of this report form an integral part of these accounts.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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Balance sheet
as at 31 March 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Fixed Assets | Note | £'000 | £'000 |
| Investment: directly managed property | 4 | 2,850 | 3,000 |
| Total fixed assets | 2,850 | 3,000) | |
| Current Assets | |||
| Debtors | 5 | 60 | 62 |
| Cash at bank and in hand | 49 | 45 | |
| Total current assets | 109 | 107 | |
| Creditors: amounts falling due within one year | 6 | (887) | (1,072) |
| Net current(liabilities) | (778) | (965) | |
| Total net assets | 2,072 | 2,035) | |
| Funds | |||
| Including cumulative revaluation gains of £1.84m (2023: £2.00m) | |||
| Unrestricted funds | 7 | 2,072 | 2,035) |
| Total Fund | 2,072 | 2,035) |
These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006.
The accompanying notes on pages 12-16 of this report form an integral part of these accounts. Approved by the Board of Trustees on 27 September 2024.
Miles Webber
Ben Freeman
Miles Webber
Director/Trustee
Ben Freeman Director/Trustee
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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1. Accounting policies
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The Financial Statements have been prepared in accordance with 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) - Charities SORP (FRS 102) and the Companies Act 2006. The charity is incorporated in the United Kingdom and the Financial Statements are presented in Sterling (£).
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The charity is a qualifying entity and thus has taken disclosure exemption for strategic report, statement of cash flows and the requirement to disclose key management personnel compensation.
Going Concern
The primary debt owed by the charity is owed to Norwood Schools which has confirmed that the repayment of the intercompany loan will not be requested until such time that the charity is in a position to repay it. The charity’s continuing activity is utilising its investment property to generate rental income. The trustees have considered the liquidity position of the charity and the trustees are satisfied it is appropriate to prepare these accounts on a going concern basis with the parent charity providing support for at least 12 months from the signing of the accounts. 'Stresstesting' assumptions have been formed around going concern such as, if no income was received for 12 months following the signing of the accounts. Given the support from the parent charity this would have no impact on Hope's going concern. Having reviewed the financial position, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.
b) Estimates & Judgments
The preparation of financial statements requires management to make estimates, judgments and assumptions that affect reported assets and liabilities as at the balance sheet date and, the amounts reported for expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Lease accounting
Management have used their judgment in the classification of the lease of the investment property entered into during the financial year. This lease has been treated as an operating lease reflecting the underlying nature of the transaction. The lessor will be operating from the site for a period of 35 years which is substantially less than the remaining life of the head lease. As such it follows that this is not a financing transaction to acquire the remaining useful life of the site.
Fair value of properties:
Significant estimates and assumptions require the exercise of judgment and are used for the valuation of the charity’s directly managed investment property. In 2020, the directors used an independent expert’s report to determine the fair value of investment property and in the current year, a desktop review has been performed to update the value based on market data and commentary provided by the independent expert. Details of the charity’s directly managed investment property are set out in Note 4.
c) Income: charitable activities
Income is recognised when the charity has entitlement to the funds and met any performance conditions attached. All income is accounted for when the charity has entitlement, there is probability of receipt and the amount is measurable.
If income relates to a future period or event and the purpose of that income is to support the costs and activities in the future, the income is deferred and recognised in the appropriate period.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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d) Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured. Expenditure comprises costs associated with charitable expenditure and governance costs include both direct and indirect costs relating to governance of the charity (Note 3b), including external audit costs and cost relating to filing corporation returns.
Irrecoverable VAT is charged as a cost to the Statement of Financial Activities, being allocated on the same basis as the underlying expenditure to which it relates.
e) Investment property
Directly managed investment properties have been valued on a fair value basis. Gains and losses on revaluation of fixed assets are recognised in the Statement of Financial Activities account for the period.
f) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
g) Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
h) Creditors and provisions
Creditors and provisions are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Most amounts provided for are expected to be settled within 12 months and are therefore recognised at the estimated settlement amount.
i) Tax Accounting policy
The entity is exempt from corporation tax as the net income is for charitable purposes
j) Lease Incentives
Any lease incentives given are charged to the Statement of Financial Activities on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases are consumed.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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| 2. Incoming resources from charitable activities | ||||
|---|---|---|---|---|
| Unrestricted | Total | Total | ||
| Funds | 2024 | 2023 | ||
| £'000 | £'000 | £'000 | ||
| Rental income from investmentproperty | 188 | 188 | 62 | |
| Total | 188 | (188 | 62 | |
| 3a. Resources expended | ||||
| Governance | Total | Total | ||
| Other Costs | Cost | 2024 | 2023 | |
| £'000 | £'000 | £'000 | £'000 | |
| Investmentpropertymaintenance | (5) | 6 | 1 | 104 |
| Total resources expended | (5) | 6 | 1 | 104 |
| Other costs include release of prior year accruals. |
3b. Analysis of governance cost
| Total | Total | |
|---|---|---|
| 2024 | 2023 | |
| £'000 | £'000 | |
| External audit and related costs: | ||
| Statutory audit | 8) | 10 |
| Other | (2) | - |
| Totalgovernance cost | 6 | 10 |
| 4a. Investment - directly managedproperty | ||
| Market Value | 2024 | 2023 |
| £'000 | £'000 | |
| Valuation at 1 April | 3,000 | 3,200 |
| Net (loss)/gain on revaluation of fixed asset | (150) | (200) |
| Carryingvalue at 31 March | 2,850 | 3,000 |
The investment property relates to the charity's long leasehold interest in 228 Walm Lane, London. The freeholder is the London Borough of Brent and a long leasehold has been granted to the charity for a term of 125 years from 24 June 1997.
4b. Net (loss) on investment
| Market Value | 2024 | 2023 |
|---|---|---|
| £'000 | £'000 | |
| Net (loss) on fixed asset: property revaluation | (150) | (200) |
| Net(loss)on fixed asset revaluation | (150) | (200) |
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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5. Debtors
The lease incentive is amortised over the 35 year period of the lease. As at 31 March 2024, £1,350 is due within one year and £46,150 is due in more than one year.
6. Creditors: amount falling due within one year
| 2024 | 2023 | ||
|---|---|---|---|
| £'000 | £'000 | ||
| Accruals and deferred income | 9 | 23 | |
| Refundable deposit | 48 | 48 | |
| Amount due to group undertakings | 810 | 1,001 | |
| Deferred income | 20 | - | |
| Total creditors due in less than oneyear | 887 | 1,072 |
If income relates to a future period or event and the purpose of that income is to support the costs and activities in the future, the income is deferred and recognised in the appropriate period.
7. Analysis of net assets between funds
| Unrestricted | Restricted | Total | |
|---|---|---|---|
| Funds | Income Funds | Funds | |
| £'000 | £'000 | £'000 | |
| 2024 | |||
| Investment : directly managed property | 2,850 | - | 2,850 |
| Net current(liabilities) | (778) | - | (778) |
| Total net assets carried forward | 2,072 | - | 2,072 |
| 2023 | |||
| Investment : directly managed property | 3,000 | - | 3,000 |
| Net current(liabilities) | (965) | - | (965) |
| Total net liabilities brought forward | 2,035 | - | 2,035 |
8. The future minimum receipts under non-cancellable operating leases are :
| Leased | Leased | |
|---|---|---|
| Properties | Properties | |
| 2024 | 2023 | |
| £'000 | £'000 | |
| Within one year | 190 | 158 |
| Between one and five years | 760 | 760 |
| Over five years | 5,447 | 5,700 |
| 6,397 | 6,618 |
Future minimum lease income relating to the letting of 228 Walm Lane.
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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9. Related Parties
Group companies:
Norwood Schools paid expenditure of £15k (2023: £99k) on behalf of the Charity which it subsequently recharged. Hope paid £207,000 (2023: £Nil) to Norwood Schools to reduce the intercompany balance. The balance owing to Norwood Schools was £810,000 at 31 March 2024 (2023: £1,001,000).
Trustees received no remuneration and were not reimbursed any expenses in either year.
The charity’s accounts are consolidated into Norwood Ravenswood, the parent company. Norwood Ravenswood is a registered charity limited by guarantee, registered in England and Wales with charity registration number 1059050 and company registration number 03263519. The principal and registered office for Norwood Ravenswood is Broadway House, 80-82 The Broadway, Stanmore HA7 4HB.
10. Comparative Statement of Financial Activities
| Unrestricted Funds | Total Funds 2023 | |
|---|---|---|
| £’000 | £’000 | |
| Income from Charitable activities | 62 | 62 |
| Total income | 62 | 62 |
| Expenditure on Charitable activities | (104) | (104) |
| Total cost | (104) | (104) |
| Operating loss | (42) | (42) |
| Net loss on revaluation of investment | (200) | (200) |
| Net loss | (242) | (242) |
The Hope Charity – for the year ended 31 March 2024 Company Reg. No. 03171884 Charity Reg. No. 1056674
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