2023-03-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

SHOREDITCH TRUST

(A company Limited by Guarantee and having no share capital)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Charity Number: 1086812 Company Number: 03894363 (England and Wales)

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

��
��
��
��
��
��
��
��
��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

1. Reference and Administrative Information

��

Trustees/Directors

��

Company Secretary

��

Senior Management Team

�� ps: Ja ��

Independent Auditor

��

Solicitors

��

Chartered Accountants

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

2. Trustees’/Directors’ Annual Report 31 March 2023

About Shoreditch Trust

��

��
��
��
��
��
��

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

Aims and Objectives

��

��
��
��

��

��
��
��
��
��
��

��

Ensuring our work delivers our aims

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Shoreditch Trust Programme 2022 - 2023

Delivery

��
��
��
��
��
��

��

Funding and Commissioning

��

Delivery approach

��

��
��
�� of meani �� es ��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Shoreditch Trust Front Door

��

Community Navigation Front Door ��

��

Simplified Pathways into Primary Care Network Personalised Care Roles

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Young Chefs

��

Young Chefs – 12-15

��

Blue Marble Training – 16-19

��

Women and Children

��

Bump Buddies ��

Baby Buddies ��

Long Term Conditions

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

The Stroke Project

��

Long Covid Community Activities

��

Health and Wellbeing Coaching

��

��
��
��
��

��

��
��
��
��
��

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Advice and Assistance

��

��
��
��
��

��

Community Table

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

Community Kitchen

��

Community Leadership

��

�� Keep It Local Report ��

Civic Innovation Hub

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

Shoreditch Trust - Facilitating Conversations

��

The Sharp End

��

��
��
� ��
��
� ��
��
��
��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Shoreditch Trust Core Support Programme

Monitoring and Evaluation

��

Staff Training and Development

��

Communications

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Risk Review

Continued impact of austerity, pandemic, and cost of living crisis on Shoreditch Trust’s finances

��

�� es
�� s �� d �� e
�� e ��
�� s ��
��

�� sses ��

Health and safety of staff, volunteers and community while delivering

��

Shoreditch Trust Safeguarding

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Safeguarding Programme

Staff Training: ��

Triage Support Plan: ��

��

Multidisciplinary Reflective Practice and Discussion: ��

��

��
�� orks
�� s ��
��
��
��

Risk Controls

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

��
��
��
��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

��

��
��

Shoreditch Trust Strategic Development

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Structure, Governance and Management

��

Trustees’ Induction and Training

��

Investment Policy

��

Shoreditch Trust Executive Team

��

Fundraising

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

�

Pay policy for key management personnel

��

Financial Review and Reserves Policy

��

Reserves Policy

��

Going concern

��

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

future. The charity therefore continues to adopt the going concern basis in preparing its financial statements

Trustees' responsibilities statement

The trustees (who are also directors of The Shoreditch Trust for the purposes of company law) are responsible for preparing the Trustees' Report 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 fiscal year, which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles in the Charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as we are aware:

there is no relevant audit information of which the charitable company's auditor is unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditors Haysmacintyre LLP have expressed willingness to be reappointed at the Annual General Meeting in accordance with section 485 of the Companies Act 2006.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

This report was approved by the Trustees on 16th October 2023 and signed on its behalf, by

Jeremy Gardner Trustee/Director (Chair)

TRUSTEES'/OIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2023

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023 24

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of The Shoreditch Trust for the year ended 31 March 2023, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 charitable company'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 report of the trustees. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the report of the trustees (which includes the strategic report and 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
the strategic report and the directors’ report included within the report of the trustees have been prepared in accordance with applicable legal requirements.

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

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 report of the trustees (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:

adequate accounting records have not been kept by the charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 23 , 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:

Based on our understanding of the charitable company and the environment in which it operates, we identified the principal risks of non-compliance with laws and regulations 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 and the Charities Act 2011, and considered other factors such as income tax, payroll tax and sales tax.

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 management override of controls, completeness and cut off of voluntary income, legacies and investment income. Audit procedures performed by the engagement team included:

Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Identifying and testing journals; and
Challenging assumptions and judgements made by management in their critical accounting estimates

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

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 wrk 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.

Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor Date:

10 Queen Street Place London EC4R 1AG

THE SHOREDITCH TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted	Restricted	Total	Total
		Funds	Funds	2023	2022
	Notes	£	£	£	£
Income and endowments from:
Donations		53,553	-	53,553	10,404
Charitable activities		1,376,495	106,863	1,483,358	1,633,773
Other trading activities		35,908	-	35,908	36,700
Investments		3,774	-	3,774	33
		--------------------	---------------------	----------------------	----------------------
Total:	2	1,469,730	106,863	1,576,593	1,680,910
		--------------------	--------------------	---------------------	---------------------
Expenditure on:
Raising funds		37,159	-	37,159	9,681
Charitable activities – social health and		1,544,520	106,863	1,651,383	2,105,553
wellbeing projects
		-------------------	--------------------	---------------------	---------------------
Total:	3	1,581,679	106,863	1,688,542	2,115,234
		-------------------	--------------------	---------------------	---------------------
Net (expenditure)/income for the year
before gains on investments		(111,949)	-	(111,949)	(434,324)
Gain on investment property	7	168,264	-	168,264	-
		-------------------	-------------------	-------------------	-------------------
Net movement in funds		56,315	-	56,315	(434,324)
		-------------------	--------------------	---------------------	---------------------
Fund balances brought forward at 1 April
2022		6,386,262	-	6,386,262	6,820,586
		--------------------	---------------------	---------------------	---------------------
Fund balances at 31 March 2023	14	6,442,577	-	6,442,577	6,386,262
		==========	==========	==========	==========

There were no recognised gains and losses other than those included above. All the above results are derived from continuing activities.

The notes form part of the accounts.

THE SHOREDITCH TRUST

COMPANY NUMBER: 03894363

BALANCE SHEET

AT 31 MARCH 2023

		2023	2022
	Notes	£	£
FIXED ASSETS
Tangible fixed assets	6	1,443,359	7,422,903
Investment property	7	6,000,000	-
		--------------------	--------------------
		7,443,359	7,422,903
CURRENT ASSETS
Stock	8	650	650
Debtors	9	206,538	301,885
Cash at bank and in hand		487,682	641,828
		---------------------	---------------------
		694,870	944,363
CREDITORS: amounts falling due
within one year	10	(437,326)	(554,572)
		---------------------	---------------------
Net current assets		257,544	389,791
Total Assets less current liabilities		7,700,903	7,812,694
CREDITORS: amounts falling due
after more than one year	11	(1,169,326)	(1,170,432)
Provisions for liabilities	12	(89,000)	(256,000)
		---------------------	---------------------
NET ASSETS		6,442,577	6,386,262
		==========	==========
FUNDS
Unrestricted funds	14-15	-	-
Restricted funds	14-15	-	-
Designated funds	14-15	6,442,577	6,386,262
		---------------------	---------------------
		6,442,577	6,386,262
		==========	==========

The notes form part of the accounts.

The financial statements were approved and authorised for issue by the Board of Trustees/Directors on 16th October 2023 and were signed below on its behalf by:

………………………………….

Jeremy Gardner Trustee/Director

THE SHOREDITCH TRUST

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2023

		2023		2022
	Notes	£	£	£	£
Net cash provided used in operating activities	1		(485)		(254,190)
Cash flows from investing activities
Interest received		3,774		33
Payment to acquire tangible asset		-		(20,568)
		---------------------		---------------------
			3,774		(20,535)
Cash flows from financing activities
New borrowings	19	1,240,000		-
Repayments of borrowings	19	(1,331,319)		(47,394)
Interest paid		(66,116)		(26,977)
		---------------------		---------------------
			(157,435)		(74,371)
			---------------------		---------------------
Change in cash and cash equivalents in the year			(154,146)		(349,096)
Cash and cash equivalents at the beginning of
the year	2		641,828		990,924
			---------------------		---------------------
Cash and cash equivalents at the end of the year	2		487,682		641,828
			==========		==========

The notes form part of the accounts.

THE SHOREDITCH TRUST

NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2023

1.	Reconciliation of net income to net cash	2023	2022
	flow from operating activities	£	£
	Net income / (expenditure) for the year	56,315	(434,324)
	Loss on disposal of fixed assets	52,422	-
	Gain on revaluation of investment property	(168,264)	-
	Depreciation of tangible assets	95,387	274,661
	Interest paid	66,116	26,977
	Investment income	(3,774)	(33)
	(Increase)/ Decrease in debtors	95,347	(34,828)
	Decrease in creditors	(27,034)	(86,643)
	Decrease in provisions	(167,000)	-
		----------------------	----------------------
	Net cash provided by used in operating activities	(485)	(254,190)
		===========	===========
2.	Analysis of cash and cash equivalents
		2023	2022
		£	£
	Cash at bank and in hand	487,682	641,828
		==========	==========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1a. ACCOUNTING POLICIES

General information

The Shoreditch Trust is a charitable company limited by guarantee incorporated in England and Wales and registered with the Charity Commission. The members of the company are the Trustees. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

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) – (Charities SORP Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Shoreditch Trust 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).

Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. After making enquiries the Trustees have concluded that there are no material uncertainties and it is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Income recognition

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Recognition of income is deferred where conditions specify that such income relates to future accounting periods. Where donors specify that funds are for specific purposes such income is included in incoming resources of restricted funds.

Grants receivable are credited to income for the period for which the Charity becomes entitled to the income. Grants received that have restrictions on entitlement relating to services that have not yet been delivered are treated as deferred income at the balance sheet date. Grants received without any restriction on entitlement are recognised in full upon award. Capital grants in circumstances where the trustees are acting as agents (and not as custodian trustees) are not recognised in the Statement of Financial Activities or the Balance Sheet.

Donations income is recognised where there is entitlement, probability of receipt and the amount of the gift is measurable.

Income from charitable activities is recognised as earned as the related services are provided. Income from other restaurant activities is recognised as earned as the related goods are provided.

Investment income is recognised on a receivable basis and the amounts can be measured reliably. Dividends from associates are recognised once the dividend has been declared and notification has been received the dividends are due.

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1a. ACCOUNTING POLICIES (continued)

Expenditure

Expenditure is accounted for on an accruals basis, inclusive of irrecoverable VAT. Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

Expenditure on raising funds include direct costs and where appropriate an allocation of support costs.

Charitable activities comprise of expenditure associated with regeneration and include both direct and support costs relating to these activities. Project costs including staff costs related to delivering regeneration projects are treated as charitable expenditure

Staff salaries are allocated on the basis of staff time spent generating funds or on each project.

Governance costs include those incurred in the governance of the charity and its assets and are associated with constitutional and statutory requirements.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged in the year the asset is acquired. Depreciation is provided at rates calculated to reflect the cost of use of the tangible fixed assets in the period:

Freehold and long leasehold buildings - 2% straight line Leasehold improvements, furniture and equipment – 20% straight line

Leased assets

Assets held under lease arrangements that transfer substantially all the risks and rewards of ownership to the Charity are capitalised. Rentals in respect of all other leases are charged to the Statement of Financial Activities at a constant rate over the life of the lease.

Pension

The charity operates a defined contribution pension scheme for all employees that don’t opt out. Membership of the scheme is not compulsory. Pension costs charged to the SOFA represent the contributions payable by the charity in the year.

Investment property

Investment properties are included in the balance sheet at fair value and are not depreciated. Any change in fair value is recognised in the statement of financial activities. In 2023 a proportion of tangible fixed assets were reclassified as investment property and revalued.

Stock

Stocks comprise food and drink. They are valued at the lower of cost and net realisable value.

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.

Cash at bank and in hand

Cash at bank and cash 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 .

Fund accounting

The different funds are defined as follows:

Restricted funds (Note 15) are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Unrestricted funds are those funds available to the charity for its general purposes.

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1a. ACCOUNTING POLICIES (continued)

Creditors and provisions

Creditors and provisions are recognised where 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.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of Financial Position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of Financial Position date.

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Expenditure in this company is shown net of VAT.

Financial instruments

With the exception of the Natwest Bank and East Road loan, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

The East Road loan is a non-basic financial instrument under FRS102 Section 11 because the repayments are made based on net income generated from the East Road property. Net income is variable and dependent on property costs and the number of tenants therefore it is not possible to obtain a reliable estimate of the fair value if this loan at year end. It has therefore been recognised at amortised cost.

Operating leases

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred on a straightline basis over the period to the next rent review. The amortisation of the rent free period in excess of one year is shown in the provisions for liabilities over one year.

1b. CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements include dilapidation accruals and are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Property, plant and equipment (PPE)

The estimated useful lives of PPE are based on management's judgement and experience. When management identifies that actual useful lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of PPE investment to the company, variations between actual and estimated useful economic lives could impact on operating results both positively and negatively, although historically no changes have been required. During the year an element of one of the properties was reclassified as an investment property based, this will be measured at fair value each year with any changes in the value recognised as gains or losses in the SOFA.

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

2.	INCOME		Total	Total
			Funds	funds
			2023	2022
			£	£
a)	Restricted Income Received
	London Borough of Hackney		55,160	76.400
	Greater London Authority		29,999	64,755
	Skinners Benevolent		2,144	-
	Groundwork London		4,560	-
	Hackney Giving		-	8,000
	Worshipful Company of Fishmongers		15,000	15,000
			-------------------	-------------------
			106,863	164,155
			=========	=========
b)	Unrestricted income
	Participation fees	2c	177,406	103,047
	Donations		53,553	10,404
	Interest		3,774	33
	Rental income		492,655	478,170
	Service Level Agreements	2d	706,434	888,401
	Income from Training Restaurant		35,908	36,700
			-------------------	-------------------
			1,469,730	1,516,755
			=========	=========
c)	Participation Fees
	Complementary Therapies		177,406	103,047
			-------------------	-------------------
			177,406	103,047
			=========	==========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

2.	INCOME (continued)	2023	2022
		£	£
d)	Service Level Agreements
	City & Hackney MIND	-	7,975
	London Borough of Hackney Public Health	96,439	253,896
	HCVS Connect Hackney	(30,900)	123,600
	NHS City Hackney CCG	186,472	170,296
	Hackney Giving	2,500	-
	Barclays 100x100 COVID-19 Community Relief Funding	35,454	17,743
	London Borough of Hackney	32,020	18,834
	Hoxton Hall	-	5,600
	New Hackney Educations	-	280
	City & Hackney GP Confederation	283,627	290,177
	NHS North East London Clinical Commissioning Group	45,900	-
	Homerton Healthcare Charitable Funds	11,967	-
	The Paddington Development Trust	42,955	-
		-------------------	-------------------
		706,434	888,401
		=========	========

3. ANALYSIS OF EXPENDITURE

Raising funds Charitable activities – social health and wellbeing projects 3. ANALYSIS OF EXPENDITURE -2022 Comparative	Direct 31 March Staff £ Other £ Support (note 4) £ 2023 £ - - 37,159 37,159 995,646 100,465 555,272 1,651,383 ------------------- -------------------- ----------------- --------------------- 995,646 100,465 592,431 1,688,542 ========= ========== ======== ==========

Raising funds Charitable activities – social health and wellbeing projects Total expenditure 2022	Direct 31 March Staff £ Other £ Support (note 4) £ 2022 £ - - 9,681 9,681 1,015,271 435,028 655,254 2,105,553 ------------------- -------------------- ----------------- --------------------- 1,015,271 435,028 664,935 2,115,234 ========= ========== ======== ==========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

ANALYSIS OF SUPPORT	Finance	HR	Office	Total
COSTS		Costs	Costs	2023
	£	£	£	£
Raising funds	-	-	37,159	37,159
Charitable activities	190,522	65,116	299,634	555,272
	-----------------	----------------	------------------	------------------
	190,522	65,116	336,793	592,431
	========	=========	=========	=========

Support costs have been allocated on the basis of estimated use. Included within support costs are governance costs totalling £70,133 (2022: £60,182). These includes auditor’s remuneration (audit and non-audit) of £20,923 (2022: £15,350).

ANALYSIS OF SUPPORT	Finance	HR	Office	Total
COSTS -2022 Comparative		Costs	Costs	2022
	£	£	£	£
Raising funds	-	-	9,681	9,681
Charitable activities	112,579	64,328	478,347	655,254
	-----------------	----------------	------------------	------------------
	112,579	64,328	488,028	664,935
	========	=========	=========	=========

5. STAFF COSTS

STAFF COSTS
	2023	2022
	£	£
Wages and salaries	918,193	959,557
Social security costs	83,884	85,911
Pension costs	52,607	58,306
	--------------------	--------------------
	1,054,684	1,103,774
	==========	==========

The average number of employees during the year was administrative 4 (2022: 4) and direct 37 (2022: 37).

No trustees were remunerated or reimbursed expenses in the current or prior year. Trustee board meetings during the year incurred expenses of £nil (2022: £nil) in total.

The number of employees paid between £70,000 and £80,000 was 1 (2022: 1).

The key management personnel of the charity are considered to be the directors and executive team. The total employee benefits of the key management personnel were £313,906 (2022: £341,696).

Of total staff costs £59,038 (2022: £88,503) is included in support costs in note 3 and 4.

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

6. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
		Leasehold
		Improvements,
	Land and	Fittings and
	Buildings	Equipment	Total
	£	£	£
Cost
At 31 March 2022	8,279,270	2,205,452	10,484,722
Disposals	(6,390,744)	(495,837)	(6,886,581)
	--------------------	-----------------	-------------------
At 31 March 2023	1,888,526	1,709,615	3,598,141
	--------------------	-----------------	-------------------
Depreciation
As at 31 March 2022	985,926	2,075,892	3,061,818
Charge for the year	43,378	52,009	95,387
Disposals	(559,008)	(443,415)	(1,002,423)
	-----------------	------------------	--------------------
At 31 March 2023	470,296	1,684,486	2,154,782
	----------------	-----------------	-------------------
Net Book Value
At 31 March 2023	1,418,230	25,129	1,443,359
	==========	========	==========
At 31 March 2022	7,293,344	129,559	7,422,903
	==========	========	==========

Buildings comprises 2 long leaseholds relating to support to community business projects consistent with the aims and objectives of the charity. During the year an element of one of the properties, 8 Orsman Road, was reclassified as an investment property and so was disposed of as a fixed asset at the opening net book value of £5,831,736.

INVESTMENT PROPERTY
	2023	2022
	£	£
Fair value at the start of the year	-	-
Transfer from tangible fixed assets	5,831,736	-
Revaluation during the year	168,264	-
	------------------	------------------
Fair value at the end of the year	6,000,000	-
	=========	=========

Investment property consists of 8 Orsman Road that is solely used for generating rental income to support the charitable activities. The property was brought in from fixed assets at the net book value at 31[st] March 2022 with a valuation carried out in June 2022 by Chris Shearer MRICS of Colliers reflected which has been adjusted to reflect the fair value at 31[st] March 2023.

8. STOCK

STOCK
	2023	2022
	£	£
Food and drinks	650	650
	=======	========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

9.	DEBTORS
			2023	2022
			£	£
	Amounts due in less than 1 year
	Debtors		148,958	184,451
	Other debtors		15,000	301
	Prepayments		28,940	35,585
	Accrued income		13,640	81,547
			------------------	------------------
			206,538	301,884
			=========	=========
10.	CREDITORS: amounts falling
	due within one year		2023	2022
			£	£
	East Road loan		-	63,000
	Bank loan		47,668	74,880
	Accruals		10,239	104,199
	PAYE		19,912	19,585
	Pension Creditor		4,537	-
	Creditors		109,890	132,173
	8 Orsman Road service charge		5,612	56,035
	Deposits		105,140	109,706
	Deferred income	13	119,501	11,174
	VAT		17,582	(6,446)
	Sundry creditors		(2,755)	(9,734)
			-------------------	-------------------
			437,326	544,572
			=========	========

The East Road loan has an interest margin of 1.00% above the bank base rate charged to all amounts drawn under the facility. This bank loan is secured by a charge over the assets.

The Bank loan has interest charged at 1.95% above bank base rate and is secured by a charge over the assets. See note 19.

11.	Creditors: Amount falling due AFTER more than one year 2023 2022 £ £ Natwest Loan > 1 year - 1,159,565 East Road Loan Account > 1 year - 10,867 Lloyds loan due > 1 year 1,169,326 - ------------------- ------------------- 1,169,326 1,170,432 ========= ===========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

12.
13.
14.
14.

Provisions for liabilities
2023
2022
£
£
Dilapidations provision
89,000
256,000
=======
=======
DEFERRED INCOME
2023
2022
£
£
As at 1 April 2022
11,174
1,246
Amount released to incoming resources
(11,174)
(1,246)
Amount deferred in the year
119,501
11,174
-------------------
-------------------
As at 31 March 2023
119,501
11,174
==========
===========
ANALYSIS OF NET ASSETS
BETWEEN FUNDS
Unrestricted
Designated
Restricted
Total funds
Funds
Funds
Funds
2023
£
£
£
£
Tangible assets
-
1,443,359
-
1,443,359
Investment property
-
6,000,000
-
6,000,000
Current assets
-
694,870
-
694,870
Current liabilities &
Provisions
-
(526,326)
-
(526,326)
Long term liabilities
-
(1,169,326)
-
(1,169,326)
--------------------
---------------------
--------------------
---------------------
Total 2023
-
6,442,577
-
6,442,577
==========
==========
==========
===========
ANALYSIS OF NET ASSETS
BETWEEN FUNDS
Unrestricted
Designated
Restricted
Total funds
-2022 Comparative
Funds
Funds
Funds
2022
£
£
£
£
Tangible assets
-
7,422,903
-
7,422,903
Current assets
-
944,363
-
944,363
Current liabilities &
Provisions
-
(810,572)
-
(810,572)
Long term liabilities
-
(1,170,432)
-
(1,170,432)
------------------
---------------
---------------
-----------------
Total 2022
-
6,386,262
-
6,386,262
==========
=========
=========
==========

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

FUNDS
				Gains on
				Investments
	1 April			& Fund	31 March
	2022	Income	Expenditure	Transfers	2023
	£	£	£	£	£
General Funds	-	941,167	(1,109,431)	168,264	-
Property fund	6,386,262	528,563	(472,248)	-	6,442,577
Restricted funds	-	106,863	(106,863)	-	-
	----------------------	--------------------	---------------------	----------------------	----------------------
	6,386,262	1,576,593	(1,688,542)	168,264	6,442,577
	==========	==========	===========	===========	==========

Regeneration is delivered through our projects that aim to target the root causes of disadvantage. Projects that operated in 2022-23 are outlined in detail in the Trustees report.

Restricted income and expenditure for the year amounted £106,863 (2022: £164,155) and £106,863 (2022: £209,155) respectively. There were £Nil funds brought forward this year. Restricted funds carried forward of £Nil (2022: £Nil) all relate to the Community Table project and are funds that were donated towards the end of the financial year that will go towards the continuation in 2023 of the project work to provide quality food to those who are recovering from illness, recent disability and trauma.

15. FUNDS – 2022 Comparative

				Gains on
				Investments
	1 April			& Fund	31 March
	2021	Income	Expenditure	Transfers	2022
	£	£	£	£	£
General Funds	-	1,516,755	(1,516,755)	-	-
Property fund	6,775,586	-	(389,324)	-	6,386,262
Restricted funds	45,000	164,155	(209,155)	-	-
	----------------------	--------------------	---------------------	----------------------	----------------------
	6,820,586	1,680,910	(2,115,234)	-	6,386,262
	==========	==========	===========	===========	==========

TAXATION

Shoreditch Trust is a registered charity and as such is not liable to tax on its income and gains that meet the tax exemptions.

17. CAPITAL COMMITMENTS

The charity has no capital commitments at the year end (2022: None).

18. RELATED PARTY TRANSACTIONS

No trustees were remunerated or reimbursed expenses in the current or prior year. Trustee board meetings during the year incurred expenses of £Nil (2022: £Nil) in total.

There were no other related party transactions in the current or preceding year.

THE SHOREDITCH TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

19.	NET DEBT RECONCILIATION	At 1 April	Cashflows	Other non-	At 31 March
		2022		cash	2023
				changes
		£	£	£	£
	Cash at bank and in hand	641,828	(154,146)	-	487,682
	Secured bank loan falling due within 1 year	74,880	-	(27,212)	47,668
	Other loan falling due within 1 year	63,000	-	(63,000)	-
	Secured bank loan falling due less than 5 years	1,159,565	-	9,761	1,169,326
	Other loan falling due in less than 5 years	10,867	-	(10,867)	-
19.	NET DEBT RECONCILIATION	At 1 April	Cashflows	Other non-	At 31 March
	-2022 Comparative	2021		cash	2022
				changes
		£	£	£	£
	Cash at bank and in hand	990,925	(349,097)	-	641,828
	Secured bank loan falling due within 1 year	74,880	(23,405)	23,405	74,880
	Other loan falling due within 1 year	63,000	-	-	63,000
	Secured bank loan falling due less than 5 years	1,206,959	-	(47,394)	1,159,565
	Other loan falling due in less than 5 years	10,867	-	-	10,867

SHOREDITCH TRUST

Contents

1. Reference and Administrative Information

Trustees/Directors

Company Secretary

Senior Management Team

Independent Auditor

Solicitors

Chartered Accountants

2. Trustees’/Directors’ Annual Report 31 March 2023

About Shoreditch Trust

Aims and Objectives

Ensuring our work delivers our aims

Shoreditch Trust Programme 2022 - 2023

Delivery

Funding and Commissioning

Delivery approach

Shoreditch Trust Front Door

Simplified Pathways into Primary Care Network Personalised Care Roles

Young Chefs

Young Chefs – 12-15

Blue Marble Training – 16-19

Women and Children

Long Term Conditions

The Stroke Project

Long Covid Community Activities

Health and Wellbeing Coaching

Advice and Assistance

Community Table

Community Kitchen

Community Leadership

Civic Innovation Hub

Shoreditch Trust - Facilitating Conversations

The Sharp End

Shoreditch Trust Core Support Programme

Monitoring and Evaluation

Staff Training and Development

Communications

Risk Review

Continued impact of austerity, pandemic, and cost of living crisis on Shoreditch Trust’s finances

Health and safety of staff, volunteers and community while delivering

Shoreditch Trust Safeguarding

Safeguarding Programme

Risk Controls

Shoreditch Trust Strategic Development

Structure, Governance and Management

Trustees’ Induction and Training

Investment Policy

Shoreditch Trust Executive Team

Fundraising

Pay policy for key management personnel

Financial Review and Reserves Policy

Reserves Policy

Going concern

Trustees' responsibilities statement

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Opinions on other matters prescribed by the Companies Act 2006

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Matters on which we are required to report by exception

Responsibilities of trustees for the financial statements

Auditor’s responsibilities for the audit of the financial statements

THE SHOREDITCH TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SHOREDITCH TRUST

FOR THE YEAR ENDED 31 MARCH 2023

Use of our report

THE SHOREDITCH TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

BALANCE SHEET

AT 31 MARCH 2023

THE SHOREDITCH TRUST