2024-05-31-accounts

TURN TRUST

(A company limited by guarantee)

Report and Financial Statements

Year ended 31 May 2024

Charity No: 1088758 Company No: 4226471

5 Priory Road Loughton Essex IG10 1AF

Calculus Assurance Services

Turn Trust

CONTENTS

Legal and administrative information	1
Report of the Trustees	2 - 4
Independent Examiner’s report	5
Statement of Financial Activities	6
Summary Income and Expenditure Account	7
Balance Sheet	8
Statement of Cash Flows	9
Notes forming part of the Financial Statements	10 - 23

Turn Trust

Legal and Administrative Information

Trustees:	R D Venable
	M Frost
	K Colwell	Appointed 1 July 2023
	N Fernandez Vizcaya	Appointed 1 July 2023
Executive team:	B A Skrentny	Donor representative
	G Mota	Chief executive officer
	R H Ashworth	Chief finance officer
Registered office:	43-45 Camden Road
	London
	NW1 9LR
Charity registration number:	1088758
Company registration number:	4226471
Independent Examiner:	James Lambden FCA	CTA
	Calculus Assurance Services
	5 Priory Road
	Loughton
	Essex
	IG10 1AF
Bankers:	Barclays Bank plc
	Leicester
	LE87 2BB

1

Turn Trust

Report of the Trustees (including the Directors’ Report) for year ended 31 May 2024

The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 May 2024. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity including the Directors Report as required by company law.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

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

The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end and other administrative details are set out on page 1.

Structure, governance and management

Governing Document

The organisation is a Charitable Company Limited by Guarantee, incorporated on 31 May 2001 and registered as a charity on 04 October 2001. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

Governance and management structure

The policy and operating decisions of the charity rest with the trustees who liaise regularly and meet formally, as required, to monitor the activities of the charitable company. Funding for projects is agreed with the Donor Representative to ensure expenditure is in line with income. The Chief executive has responsibility for the day to day implementation of the charity’s objectives. The Chief finance officer assists the Chief executive with the operations of the trust.

The trustees approve the pay and remuneration of key management personnel annually and periodically seek external advice on how pay rates compare to external benchmarks.

Recruitment and Appointment of the Board of Directors/Trustees

The trustees shall not be subject to retirement by rotation. Unless otherwise determined by the Charity in general meeting, the term of office of a trustee shall continue until he retires or is removed in accordance with the relevant provisions of the articles. The appointment of trustees is in accordance with the provisions of the company’s Articles of Association. As the trustee body is small and most have served for several years, there are no formal policies for recruitment, induction and training of trustees.

Statement of trustees/directors’ responsibilities

Company and charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing those financial statements, the trustees have:

• selected suitable accounting policies and then applied them consistently;

• [made judgements and estimates that are reasonable and prudent;]

• [stated whether applicable accounting standards have been followed, subject to any material departures disclosed] and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation

The trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Compliance with laws and regulations

The trustees confirm that the charity has complied with all legal and regulatory requirements for charitable companies registered under the Companies Act 2006 and the Charities Act 2011.

Objectives and activities

Objects of the charity

Turn Trust has two charitable objectives: the relief of poverty and the advancement of the Christian faith. It operates in Greater London.

2

Turn Trust

Report of the Trustees (including the Directors’ Report) for year ended 31 May 2024 (continued)

Achievements and Performance

Review of Activities

Turn Trust achieves its objective by undertaking research and development in ecclesiology and church planting. Its activities have been shaped by conclusions emerging from this research, which were carried out in the first instance, in connection with the Oxford Centre for Mission Studies.

The activities of the trust were resumed in 2023 across all parts: Turn Training, Turn Business, Turn Refit, and Turn Networks, in the UK and overseas, and the new projects started in the last quarter of 2023 continued to develop through 2024. The textile group in Camden, sewing group on the Isle of Dogs. Dance therapy, with the goal of using dance movement to increase mental health and the kids club in Dalston have all continued. We have continued our work in the City based at All Hallows, and the Club night in Camden, where our goal is to connect with the people who come to our projects, to find out more about their needs. Our work in Yorkshire has grown; we have placed five people who have been growing projects in Knaresborough and Harrogate. We have continued to develop our Love Beyond network of churches: our team will work closely with them. The Camden Café, which is operated via our subsidiary Turn Trading Limited, has been running at full speed now with a combination of Love Beyond workers and paid staff as the team. The cafe has been a safe haven for neighbours and also for participants of our projects. The toilets in Camden have been upgraded. We have also refurbished space at All Hallows. We received 10 new workers in 2023/24 who are based in London and Harrogate.

Financial Review

The Trust has successfully applied for and received corporate sponsorship. The charity is registered with HM Revenue and Customs for the purpose of reclaiming Gift Aid. During the year total revenue increased to £528,185 (2023: £441,965) and total revenue expenditure increased to £603,099 (2023: £484,299) resulting in a deficit for the year to £74,914 (2023: deficit £42,334). The trustees are satisfied with the overall result and having agreed to use some of the reserves to fund charitable activities.

Reserves Policy

The Board of Directors have established a policy whereby free reserves held by the charity should be maintained as sufficient to cover its short-term commitments plus retaining funds towards capital development. At the end of the year the free reserves held after designations were £87,159 (2023: £162,264), which represents 52.7 days revenue expenditure at current year levels (2023: 125.5 days). Restricted reserves were £203 (2023: £12).

Risk Management

The Directors have reviewed the risks to which a small charity operating with few employees is exposed. Appropriate procedures are in place to identify, monitor and review these risks on a regular basis.

Public Benefit

The charity has due regard to guidance published by the CC on public benefit. The Charity's Commitment to promote the Christian faith creates an opportunity for all to hear the gospel. We train Christian social entrepreneurs, so they can create and run projects well. We also promote the creation and development of communities out of which the social projects can emerge. We manage houses so that accommodation is provided for charity workers to enable them to serve their local communities more effectively. All our charitable activities, defined by our aims and objectives, are for public benefit.

Plans for future periods

Turn Trust’s lines of activity are set to continue and expand in the following areas:

TURN TRAINING: The training hubs and campuses development have been the focus of our energy, while also working with partners in East and North London and Harrogate in their training placements.

TURN BUSINESS: Cafe operations are growing as we work closely with the team and clientele to developing menus, facilities and the variety of complimentary community projects who use the space.

TURN REFIT: As opportunities and the charitable work requires, premises are being improved, well kept and modified.

TURN NETWORKS: New partnerships are being developed, through our monthly gatherings and community groups developed previously. A few overseas workers returned to England in the past year and were added to the local team helping us to stretch our reach for new partners in England and also overseas.

3

Turn Trust

Report of the Trustees (including the Directors’ Report) for year ended 31 May 2024 (continued)

Related parties and partner organisations

Turn Trust’s principal funder is Solomon Estates Limited, the ultimate owner of which is a family member of Mr B A Skrentny, the donor representative. Turn Trust occupies 43-45 Camden Road under a 4-year lease from Lamb and Flag Enterprises Limited, the ultimate parent of which is Solomon Estates Limited, Mr R D Venable and Mr R H Ashworth are also directors of Lamb and Flag Enterprises Limited.

Turn Trust works closely with a number of churches including City Gates Church, where Mr B A Skrentny is senior pastor and Mr R H Ashworth is a trustee, Cross Street Baptist Church, where Mr N Fernandez Vizcaya is pastor and Quaystone Church (Isle of Dogs) where Mr B A Skrentny is a trustee.

Other example partner organisations are: Chorley Community Church, Crystal Palace Community Church, Cross Street Baptist Church, Church on the Rock,Gibraltar, Life Destiny Church (Starbeck), New Life Church, Harrogate and Quaystone Church (Isle of Dogs).

Reporting accountants and independent examiners

Calculus Assurance Services were appointed as the charitable company’s reporting accountants and independent examiners, for the year ending 31 May 2024. It is proposed to reappoint Calculus Assurance Services as the charitable company’s reporting accountants and independent examiners, and they have expressed their willingness to continue in that capacity.

Small Companies Exemption

The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.

This report was approved by the Board on 26 February 2025.

R D Venable

26/02/2025

R D Venable (Feb 26, 2025 10:51 GMT)

R D Venable

Director and Trustee

4

Turn Trust

Independent Examiner’s report to the Trustees on the unaudited accounts of Turn Trust

I report to the charity trustees on my examination of the accounts of the charitable company for year ended 31 May 2024, which comprise the Statement of Financial Activities, Summary Income and Expenditure Account, Balance Sheet, Statement of Cash Flows and related notes which are set out on pages 6 to 23.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). As the charity’s trustees you consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the 2011 Act.

In carrying out my examination it is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• state whether particular matters have come to my attention.

Independent Examiner’s statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

J P Lambden FCA, CTA 5 Priory Road Calculus Assurance Services Loughton Essex IG10 1AF

Date: 26/02/2025

5

Turn Trust

Statement of Financial Activities (including summary Income and Expenditure account) For the year ended 31 May 2024

Notes Income from Incoming resources from generated funds: Voluntary income 2 Government grants 3 Activities for generating funds: Investment income 4 Incoming resources from charitable activities: Rental income 5 Sundry income 6 Other incoming resources Total Income Expenditure on Charitable activities Other activities for raising funds Governance costs Total expenditure 7 Net gains / (losses) on investments Net income/(expenditure) Transfer between funds Other recognised gains / (losses) Net incoming / (outgoing) resources for the year Reconciliation of funds Total funds brought forward Total funds carried forward 18	Restricted funds £ Unrestricted funds £ 1,310 519,249 - 1,228 - 605 - - - 5,793 - - 1,310 526,875 2,573 599,441 - - - 1,085 2,573 600,526 - - (1,263) (73,651) 1,454 (1,454) - - 191 (75,105) 12 162,264 203 87,159	Total 2024 £ 520,559 1,228 605 - 5,793 - 528,185 602,014 - 1,085 603,099 - (74,914) - - (74,914) 162,276 87,362	Total 2023 £ 423,224 2,876 186 - 15,679 - 441,965 483,443 - 856 484,299 - (42,334) - - (42,334) 204,610 162,276

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.

The notes on pages 10 - 23 form part of these financial statements

6

Turn Trust Summary Income and Expenditure account For the year ended 31 May 2024

Notes Income Donations and gifts 2 Grants 3 Other income from charitable activities 5 Sundry income 6 Charitable expenditure Costs of generating funds 7 Costs of activities in furtherance of charity’s objects 7 Depreciation and impairment of fixed assets 7 / 8 Governance costs 7 Operating surplus for the year Interest receivable 4 Realised (loss)/gain on sale of investments Surplus/(deficit) for the year

2024 £ 2023 £ 520,559 423,224 1,228 2,876 - - 5,793 15,679 527,580 441,779 - - 595,023 457,601 6,991 25,842 1,085 856 603,099 484,299 (75,519) (42,520) 605 186 (74,914) (42,334)

All activities relate to continuing operations.

The notes on pages 10 - 23 form part of these financial statements

7

Turn Trust

Company No: 4226471

Balance Sheet As at 31 May 2024

Notes Fixed assets Investments 12 Tangible assets 13 Current assets Debtors 14 Investments Short term deposits Cash at bank and in hand Creditors:amounts falling due within one year 15 Net current assets Net assets Funds Unrestricted funds Restricted funds Total funds 18

The directors are satisfied that the company was entitled to exemption under section 477 of the Companies Act 2006 and that members have not required an audit in accordance with section 476.

The directors acknowledge their responsibilities for:

• i. ensuring that the company keeps accounting records which comply with section 386; and

• ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 296 and which otherwise comply with the requirements of this Act relating to the accounts, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies’ subject to the small companies’ regime and in accordance with Financial Reporting Standard 102 Section 1A.

The financial statements on pages 6 to 23 were approved by the Trustees on 26 February 2025 and signed on their behalf by:

K Colwell K Colwell (Feb 26, 2025 11:44 GMT).................................... K Colwell – Director

R D Venable R D Venable (Feb 26, 2025 10:51 GMT).................................... R D Venable – Director

26/02/2025

26/02/2025

8

Turn Trust

Statement of Cash Flows For the year ended 31 May 2024

Note Cash flow from operating activities 23 Net cash flow from operating activities Cash flow from investing activities Payments to acquire intangible fixed assets Receipts from sales of intangible fixed assets Payments to acquire tangible fixed assets Receipts from sales of tangible fixed assets Payments to acquire investments Receipts from sales of investments Interest received Dividends received Rents received from investment properties Net cash flow from investing activities Cash flow from financing activities Receipts from issue of new long term loans Repayment of long term loans Repayment of finance lease liabilities Interest paid Net cash flow from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 01 June 2023 Cash and cash equivalents at 31 May 2024 Cash and cash equivalents consists of: Cash at bank and in hand Short term deposits Cash and cash equivalents at 31 May 2024	2024 £ (46,349) (46,349) - - (12,090) - 605 (11,485) - - - - - (57,834) 88,947 31,113 10,393 20,720 31,113	2023 £ 7,596
		7,596
		- - (8,412) - 186
		(8,226)
		- - - -
		-
		(630) 89,577
		88,947
		23,832 65,115
		88,947

The notes on pages 10 - 23 form part of these financial statements

9

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

1. Accounting policies

(a)

Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. 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) published in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The charity has availed itself of Paragraph 3 (3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities, and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Company status

The charity is a private company limited by guarantee, incorporated in England and Wales and registered with the Charity Commission in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the legal and administrative information on page 1. The nature of the charity’s operations and principal activities are set out in the Report of the Trustees under “Objectives and activities”.

(c)

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. These funds are held to finance both working capital and capital investment.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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

Investment income and gains are allocated to the appropriate fund.

(d)

Income recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, after any performance conditions have been met, and the amount can be quantified with reasonable accuracy and it is probable that the income will be received. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants in respect of the Coronavirus Job Retention Scheme. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

10

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

1. Accounting policies (continued)

(d) Income recognition (continued)

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Where practicable, gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified, and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers in line with the SORP (FRS 102).

(e)

Deferred income

In accordance with the SORP (FRS 102), grants and donations received in advance and specified by the donor as relating to specific accounting periods or alternatively which are subject to conditions which are still to be met are deferred on an accruals basis to the period to which they relate. Such deferrals are shown in the notes to the accounts and the sums involved are shown as creditors in the accounts.

(f)

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

• Costs of raising funds includes staff costs and goods and services specifically attributable to the activity;

• Expenditure on charitable activities includes both direct and support costs; and

• Other expenditure represents those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

(g) Support costs allocation

Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources. Premises overheads have been allocated on a floor area basis and other overheads have been allocated on the basis of the head count.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Support costs are those that assist the work of the charity but do not directly represent charitable activities. They are costs incurred directly in support of expenditure on the objects of the charity and include project management carried out centrally. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

(h) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £300 are capitalised and included at cost including any incidental expenses of acquisition or making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:

Office equipment, furniture and fittings Over 4 years Motor vehicles Over 5 years Leasehold improvements Over lease term

11

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

1. Accounting policies (continued)

(i)

Investments

Investments are stated at market value at the balance sheet date, where this can be determined with reasonable accuracy, otherwise investments are stated at cost less impairment where there is evidence that the value has been impaired. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.

(j)

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

(k)

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(l)

Cash and cash equivalents

Cash represents cash in hand plus bank balances immediately available to the charity. Cash equivalents are bank balances held on short term deposit available to the charity at up to 3 months’ notice.

(m)

Pension costs

The company operates a defined contribution scheme for the benefit of its employees. The costs of contributions are written off against profits in the year they are payable.

(n)

Finance and operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. Assets purchased under finance lease are capitalised as fixed assets and depreciated over the shorter of the lease term and the expected useful economic life of the asset. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charges. Finance charges are written-off to the SOFA over the period of the lease so as to produce a constant periodic rate of charge.

(o)

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(p)

Going concern

The charity is dependent on continuing donations from Solomon Estates Limited, HMCA/s plc and the Care Insurance Company Limited and as a consequence the going concern basis is also dependent on these donations continuing. These donations are agreed annually in advance and there is no indication that they will be discontinued in the foreseeable future, donations are agreed before the start of the year and the charity has planned its expenditure in line with the confirmed income.

(q) Financial Instruments

Financial instruments such as loans, accounts payables, accounts receivables and cash are classified as either basic or complex. All financial instruments are initially measured at their fair values at the transaction date. Subsequently all basic instruments are measured at amortised cost and complex instruments are measured at a fair value through the statement of financial activities (comprehensive income statement).

12

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

1. Accounting policies (continued)

(r) Judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements.

The key assumptions concerning the future and at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Tangible fixed assets: tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives factors such as technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Other key sources of estimation uncertainty and assumptions:

Allocation of administration costs: a proportion of expenditure is either not directly attributable to specific projects or related to the central administration of the charity. In determining how to allocate these costs the trustees have considered the level of activities in each project, use of facilities and administrative support.

13

Turn Trust Notes forming part of the financial statements for the year ended 31 May 2024

2.	Donations and gifts	Restricted funds	Unrestricted funds	Total funds 2024	Restricted funds	Restricted funds	Unrestricted funds	Total funds 2023
		£	£	£	£		£	£
	Donations	-	21,851	21,851		-	39,220	39,220
	Solomon Estates Limited	-	441,000	441,000		-	334,937	334,937
	Turn Trading Limited	-	55,108	55,108		-	30,000	30,000
	Restricted income – Turkana	1,310	-	1,310	11,322		-	11,322
	Gift Aid tax refund	-	1,290	1,290		-	7,745	7,745
		1,310	519,249	520,559	11,322		411,902	423,224
3.	Government grants
		£	£	£	£		£	£
	Corona virus Job Support Scheme	-	-	-		-	-	-
	Employment Allowance	-	1,228	1,228		-	2,876	2,876
		-	1,228	1,228		-	2,876	2,876
4.	Investment income
		£	£	£	£		£	£
	Interest receivable	-	605	605		-	186	186
5.	Other income from charitable activities
		£	£	£	£		£	£
	Rental income – Houses of Peace	-	-	-		-	-	-
6.	Sundry income
		£	£	£	£		£	£
	Other income (Media projects)	-	-	-	-		-	-
	Living Room Camden (reimbursed salaries)	-	-	-	-		15,534	15,534
	Living Room Soho	-	-	-	-		-	-
	Events	-	-	-	-		-	-
	Language School	-	-	-	-		-	-
	Re-imbursement of office cleaning costs	-			-
	Sundry income	-	5,793	5,793	-		145	145
		-	5,793	5,793	-		15,679	15,679

14

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

7. Total resources Expended Staff costs £ Other direct costs £ Other allocated support costs £ Fundraising costs - - - General fund 79,014 103,685 Grants - 124,698 - Media projects - 14,867 - Beyond charitable Flow projects - 7,413 - Trilogy / Beyond charitable 105,672 1,064 Overseas mission - 13,144 - Beyond charitable – Events - 11,896 - Turkana (Restricted) - 2,573 - Houses of Peace - 121,246 - Camden Road refurbishment 12,008 Living Room – cafes - - - Language school - - - Partnership investment - 912 - Turn Trading (Camden café) - - Charity shop - 3,822 - Governance - - 1,085 184,686 313,643 104,770 Restricted (Charitable activities) Unrestricted: Charitable activities Governance Total expenditure		Total 2024 £ - 182,699 124,698 14,867 7,413 106,736 13,144 11,896 2,573 121,246 12,008 - - 912 - 3,822 1,085 603,099 £ 2,573 599,441 1,085 600,526 603,099	Staff costs £ - 51,349 - - - 81,533 - - - - - - - 16,657 - - 149,539	Other direct costs £ Other allocated support costs £ - - - 49,162 87,667 - 7,746 - 4,769 - 28,497 449 11,600 - 4,829 - 12,252 - 88,683 - 10,699 19,870 - - - - 6,090 - - 536 1,055 - 856 263,887 70,873		Total 2023 £ - 100,511 87,667 7,746 4,769 110,479 11,600 4,829 12,252 88,683 30,569 - - 6,090 17,193 1,055 856 484,299 £ 12,252 471,191 856 472,047 484,299

15

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

8. Total resources expended (continued)

a) Other direct costs include: Reporting accountants’ remuneration (excl. VAT) Independent examination Accountancy, taxation and other services Operating lease rentals – equipment Operating lease rentals – land and buildings Depreciation – on owned assets Profit on disposal b) Support costs: Premises Depreciation (note 13) Office running costs Accountancy, legal and bank charges Sundry c) Grants: Institutions £ Individuals £ Included in total resources expended, the following were paid as grants: Grants paid to projects for the benefit of individuals 8,621 116,077 8,621 116,077 Prior year Institutions £ Individuals £ Included in total resources expended, the following were paid as grants: Grants paid to projects for the benefit of individuals 18,152 69,515 18,152 69,515	2024 £ 880 3,330 - 40,000 6,991 - 71,856 6,991 31,904 7,954 210 118,915 2024 £ 124,698 124,698 2023 £ 87,667 87,667		2023 £ 830 3,330 - 1 25,842 - 20,280 25,842 23,636 5,032 584
			75,374
			2023 £ 87,667
			87,667
			2022 £ 48,941
			48,941

Grants made to individuals are for relief of poverty or to provide training.

9a. Trustees and key management personnel remuneration

The trustees neither received nor waived any emoluments for services as trustees during the year (2023: £nil)

Key management personnel are defined as the chief executive and the chief finance officer. The CEO received remuneration of £13,400 (2023: £14,147) and the CFO was paid via an intermediary Grace Eagle Limited and received remuneration of £14,168 for services during the year (2023: £19,545).

Key management personnel remuneration Wages and salaries Employer’s National Insurance Pension costs (defined contribution plan) Consultant	2024 £ 2023 £ 13,400 14,147 594 516 215 217 14,168 19,545 28,377 34,425

16

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

9b. Trustee expenses

Out of pocket expenses were reimbursed to trustees as follows: Travel Meeting costs	2024 Number 1 1 2	2023 Number - - -	2024 £ 2023 £ 89 - 69 - 158 -

There were no other transactions with the trustees during the period.

17

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

10. Staff costs Wages and salaries Employer’s National Insurance Pension costs (defined contribution plan) Self-employed workers and consultants Volunteers’ expenses Recruitment, training and staff welfare Travel Expenses Employment allowance	Media £ - - - - - - - - -	Turn Trading Beyond charitable £ £ - - - - - - - 44,661 - - - - - 16,212 - - - 60,873	General £ 48,646 1,228 488 27,881 763 8 - - 79,014	2024 £ 48,646 1,228 488 72,542 763 8 16,212 - 139,887	Media £ - - - - - - - - -	Turn Trading Beyond charitable General £ £ £ 15,370 38,558 14,147 595 1,036 616 692 536 171 - 39,511 31,574 - - 2,111 - 1,891 999 - - 1,732 - - - 16,657 81,532 51,350	2023 £ 68,075 2,247 1,399 71,085 2,111 2,890 1,732 - 149,539

There were no employees whose emoluments as defined for taxation purposes amounted to over £60,000 in either year.

The average number of employees analysed by function was:

Charitable activities Living Room café (Turn Trading) Management and administrative of the charity	2024 Number 2023 Number 2.0 8.5 7.5 9.0 0.2 0.2 9.7 17.7

11. Pension costs

The charity operates a contributory pension scheme. It is a defined contribution scheme and contributions are charged in the statement of financial activities as they accrue. The charge for the year was £488 (2023: £1,399).

18

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

12. Investments

Investment in UK trading subsidiary: Turn Trading Limited (Company number: 12293500) registered in England and Wales (100% owned):

Group entities £ Cost: at 1 June 2023 and 31 May 2024 1 ______ Year ended 31 May 2024 Summary Income and Expenditure £ Summary Balance Sheet Turnover 212,278 Fixed assets Other income 8,972 Current assets Cost of sales (88,092) Creditors falling due in less than one year Gross profit 133,158 Net current liabilities Overheads (134,525) Net Assets Profit before taxation (1,167) Tax charge - Share capital Profit for the year (1,167) Profit and loss reserve Shareholders funds Year ended 31 May 2023 Summary Income and Expenditure £ Summary Balance Sheet Turnover 198,831 Fixed assets Other income 156 Current assets Cost of sales (89,594) Creditors falling due in less than one year Gross profit 109,393 Net current liabilities Overheads (109,478) Net Assets Profit before taxation (85) Tax charge - Share capital Profit for the year (85) Profit and loss reserve Shareholders funds 13. Tangible fixed assets Land & buildings, leasehold improvements Kitchen equipment, & integral features Motor vehicles Plant & machinery, equipment & fittings £ £ £ £ Cost At 1 June 2023 252,565 24,721 15,300 76,267 Additions - 1,678 - 10,412 Disposals - - - - At 31 May 2024 252,565 26,399 15,300 86,679 Depreciation At 1 June 2023 246,092 20,532 15,300 71,520 Charge for year 581 (708) - 7,118 Disposals - - - - At 31 May 2024 246,673 19,824 15,300 78,638 Net book value At 31 May 2024 5,892 6,575 - 8,041 At 31 May 2023 6,473 4,189 - 4,747		Total £ 1 ______ £ 3,228	Total £ 1 ______ £ 3,228
		51,537 (52,335)
		(798)
		2,430
		1 2,429
		2,430
		£ 4,569
		79,161 (80,133))
			(972)
			3,597
			1 3,596
			3,597
			Total £ 368,853 12,090 - 380,943 353,444 6,991 - 360,435 20,508 15,409

19

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

14. Debtors Accrued income Gift aid tax recoverable Other debtors: amounts owed by group undertakings Other debtors PAYE overpaid (SMP) Prepayments and other accrued income 15. Creditors: amounts falling due within one year Trade creditors Taxation and social security costs- Pension contributions Other creditors Amounts owed to group undertakings Accrued expenses Deferred income (Note 16) 16. Deferred income Balance brought forward Released to statement of financial activities in year Deferred during year Balance carried forward

2024 £ 2023 £ - - - - 40,798 63,877 3,735 419 1,543 4,295 2,589 50,371 66,885 2024 £ 2023 £ 1,177 171 - 3,000 1,349 1,208 2,806 (545) - - 9,299 5,132 - - 14,631 8,966 2024 £ 2023 £ - - - - - - - -

Income has been deferred as it was received in advance of the period to which it relates.

2024 17. Financial commitments Land & Buildings £ Operating leases Falling due: Less than one year 87,000 One to two years 84,000 Two to five years 175,000 346,000	2023 Other Land & Buildings £ £ - 1 - - - - - 1	Other £ - - - -

20

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

18a. Statement of funds Current year: General reserves: General fund Turn Trading Ltd Designated funds Leasehold improvements Total unrestricted funds Restricted funds: Youth Turkana Total restricted funds Total funds	At 1 June 2023 £ 162,264 - - 162,264 203 (191) 12 162,276	Income £ Expenditure £ Investment gains £ Transfers £ 526,875 599,945 - (2,035) - 581 - 581 526,875 600,526 - (1,454) - - - - 1,310 2,573 - 1,454 1,310 2,573 - 1,454 528,185 603,099 - -	At 31 May 2024 £ 87,159 - 87,159 203 - 203 87,362

The general reserves represent the free funds of the charity which are not designated for particular purposes. The Youth restricted fund represents monies which were given for a particular purpose and these will be fully utilised in delivering youth projects. Turkana restricted donations received and paid are linked, this project ended in the year.

18b. Statement of funds Prior year At 1 June 2022 £ General reserves: General fund 184,857 Turn Trading Ltd - Designated funds Leasehold improvements 18,811 Total unrestricted funds 203,668 Restricted funds: Youth 203 Turkana 739 Total restricted funds 942 Total funds 204,610 19. Analysis of net assets between funds Current year: Fund balances at 31 May are represented by: Tangible fixed assets Current assets Current liabilities Long term liabilities Total net assets		Income £ Expenditure £ Investment gains £ 385,109 434,984 - 45,534 17,193 - - 19,870 - 430,643 472,047 - - - - 11,322 12,252 - 11,322 12,252 - 441,965 484,299 - Restricted Funds Designated funds £ £ - - 203 - - - - - 203 -	Transfers £ 27,282 (28,341) 1,059 - - - - - General funds £ 20,509 81,281 (14,631) - 87,159	At 31 May 2023 £ 162,264 - - 162,264 203 (191) 12 162,276 Total 2024 £ 20,509 81,484 (14,631) - 87,362

21

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

19. Analysis of net assets between funds (continued) Restricted Funds Designated funds Prior year: £ £ Fund balances at 31 May are represented by: Tangible fixed assets - - Current assets 12 - Current liabilities - - Long term liabilities - - Total net assets 12 -	General funds £ 15,410 155,820 (8,966) - 162,264	Total 2023 £ 15,410 155,832 (8,966) - 162,276

20. Related Party Transactions

The charitable company principal source of income are corporate gift aid payments HMCAs Plc, The Care Insurance Company Limited and Solomon Estates Limited the amount receivable in the year was £441,000. The ultimate controlling party of both of these companies is a close relative of Mr B A Skrentny, the donor representative. Mr B A Skrentny received no remuneration from Turn Trust in the year. Mr B A Skrentny is also a director of HMCAs Plc and The Care Insurance Company Limited. Personal donations received from Mr B A Skrentny amounted to £5,600 (2023: £26,800).

Turn Trust works closely with City Gates Church in delivering its charitable objectives. Mr B A Skrentny is the senior minister and Mr R H Ashworth a trustee and are both members of the City Gates Church leadership team. Transactions with City Gates Church during the year were as follows:

Details Miscellaneous grants Living Room café Soho Reimbursed office running costs	Income Expenditure £ £ - 246 - 1,650 - - - 1,896	Balance £ - - -
		-

Turn Trust works closely with Cross Street Baptist Church and Mr N Fernandez Vizcaya, the church pastor, was appointed as a trustee on 1 July 2023. During the year ending 31 May 2024 Turn Trust made a payment of £1,062 towards the Cross Street Baptist Church flat.

Turn trust has engaged the chief operating officer Mr R H Ashworth via an intermediary company, Grace Eagle Limited, of which Mr R H Ashworth is a director. Grace Eagle Limited also provides financial administration to Turn Trust and the total paid for services during the year was £27,881 this includes work done in relation to the trading subsidiary Turn Trading Limited.

Both Mr R D Venable and Mr R H Ashworth are directors of Lamb and Flag Enterprises Limited who granted Turn Trust a four-year lease to occupy 43-45 Camden Road in February 2024 at a monthly market rent of £10,000, the amount paid in the year ended 31 May 2024 was £40,000 there was no balance outstanding at 31 May 2024.

Mr B A Skrentny is a trustee of Coldharbour Community Church known as Quaystone Church (Isle of Dogs) which made donations to Turn Trust of £13,200 during the year ended 31 May 2024.

21. Ultimate controlling party

The charitable company has no share capital and is therefore controlled by the directors who are appointed by the members in general meeting. Each member of the company commits to contribute if the charity is wound up an amount of £10.

22

Turn Trust

Notes forming part of the financial statements For the year ended 31 May 2024

22. Donated goods, facilities and services

The charity does not recognise volunteer time in the accounts as, apart from the trustees, most volunteers are also beneficiaries of the charity.

The charity had a lease on 43 – 45 Camden Road at a peppercorn rent from the Lamb and Flag Enterprises Limited (a subsidiary of Solomon Estates Limited). When the original lease was granted, the building was in need of renovation before it could be occupied, and Turn Trust has undertaken the refurbishment as part of its charitable activities to provide opportunities for construction industry training as part of its Skill Up project. Following completion of the refurbishment a new lease was granted from 5 February 2024 and expiring on 30 June 2028, initially at an annual rent of £120,000, reducing to £84,000 from 1 July 2024, reducing to £84,000 from 1 July 2024. Turn Trust has spent approximately £12,961 on refurbishment and maintenance during the year ended 31 May 2024 prior to the granting of the new lease. As the current rent is regarded as a full commercial rent there is no discount to recognise as a donation.

23. Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for year / period Interest receivable Interest payable Depreciation and impairment of tangible fixed assets (Profit) / loss on disposal of tangible fixed assets Provisions less payments (Increase) / decrease in debtors Increase / (decrease) in creditors Net cash flow from operating activities Financial instruments The charity’s financial instruments may be analysed as follows: Financial Assets Financial Assets Measured at Amortised Cost Trade Debtors Other Debtors Cash and Cash Equivalents Total Financial Assets Financial Liabilities Financial Liabilities Measured at Amortised Cost Trade Creditors Other Creditors Bank loans and overdrafts payable within one year Bank loans and overdrafts payable after one year Total Financial Liabilities	2024 £ (74,914) (605) 6,991 - - 16,514 5,665 (46,349) 2024 £ - 50,371 31,113 81,484 1,177 13,454 - - 14,631	2023 £ (42,334) (186) 25,842 - - 27,022 (2,748) 7,596
		2023 £ - 66,885 88,947
		155,832
		171 8,795 - -
		8,966

24. Financial instruments

23