Company Règistèrèd Numbèr.. 04619849 Charty Registerod Numb9r.' 1098129 HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE (A Company Limited by Guarantee) UNAUDITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) CONTENTS Page Reference and Administrative Details of the Charity. its Tntstees and Advise Trusts8s' R8port Ind•p•nd•nt Examln•rfs Roport Statoment of Flnancial ActivltSes Balance Sh88t NotM to the Flnan¢lal Ststem•nts 7-14
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 Trusts8S Natalie Wells (resigned 22 July 20211 Cathy Walsh. Chair Alessandro Chi022i (appointed 22 July 2021) Company r¢glst¢r•d numbor 04619849 Charity registered number 1098129 Rogl$tor•d offl¢e 260-264 Kingsland Road London E8 4DG coMnY s•crètary Anthony Ham*r Independent •xamlner MHA Maclntyre Hudson 2 Lonfjon Wall Place London EC2Y SAU Bankorn Bank of Scotland 14-16 Cockspur Street London SW1Y 5BL Sollcltors Rugsell-cooke 2 Pulney Hill London SW15 6AB Page 1
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company limitsd by guar4ntso1 TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The Tru5tee5, who act as the Directors of the Company for the purposes of the Companies Act, and Trustees for Charity law purposes, submit their annual report and the financial slalemenls of Haggerslon Neighbourhood Leaming Centre IHNLCI for the year ended 31 August 2021. The Trustees confirm that the annual report and financial statements of the Company comply with the CUent 5ts1utory requirements. the requirements of the Charity's goveming document and the prowsions ofthe Stslement of Recommended Piaclice ISORPI applicable to Charitses preparing their accounts in accordance with the Financial Reporting Slandaid applicable in the UK and the Republic of Ireland IFRS 102). Structuro, goY•rnan¢• and manag•mont The Company is limite¢J by guafanlee, wilh no Share capital. 11 is also a regislered Charity and was set up by a Memoran¢Jum of Ass¢xialion on 17 December 2002. The Company's governing body is the Board of Trustees. The Board ha$ Ihe power lo ¢0-gpt up lo five additional persons to the Board al any one lime. HNLC is controlled by another Chanty, East London Advanced Technology Training IELATTI. ELATT is the sole member of HNLC and sublets the leasehold premises that HNLC owns and has Similar charitable obje¢ts've$ to HNLC. The Chair of ELATT's Board also chairs HNLC'S Board. The Charity does not employ any individuals. Oblectlvos Ind actlvltl•s The Company's obleclives are lo educate and train young people and adulls.11 facili(ates these alms by leaslng ils premises lo East London Advanced Technology Training. rts parent charitable company. A¢hl•voments and rtOrnianC• During the period, HNLC continued to fijffil ils objectives by providing good quality premises and facilities that enabled ils Parent Chanty ELATT lo deliver training and employability skills for unemploye¢J adults and young people. The Trustees, who comprise all the Key Management Pers¢)nnel of the Charity, nef(her received nor waived any remuneration, or expenses. during the year (2020- £NIL) Flnanclal r8vIow Golng conc•rn After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity ha5 adequate resources to continue in operalional existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going ¢oncern basis can be found in the accounting policies. Reserves Policy The BoarLI ha5 ¥ge a free re5erve5 target of ten lo fourteen month5, running costs In unreslricled reserves. This is necessary lo cover long-tem and planned major premises improvements over the coming twts lo five years. as well as unexpected or uigenl paIrS and mainlenan¢e. In addition. rt Is essential that HNLC Can provide long-tem securty lo ts Parent Company ELATT'S abilrty lo operate in Ha¢kney and this means the HNLC musl be able to cover rts mortgage payments in the event of cashflow or other financial issues at the Parent Company. Page 2
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA company limitsd by guar4ntso1 TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Twelve months, running costs currenuy equates to approximalety £100,000. and at present the unrestricted reserves are al £229,682 after restricted funds. fixed assets. long-term loan5 and designated funds are taken Into account. The Trustees expect to increase the level of free reserves in the forthcoming period, having reviewed similar upwards trend in rts Parent Charity's performance. Prlnclpal Rlsks The Company's risk policy is in line wth and managed by its Parent Company, ETh. Rg$ults The results of the years operation are $et out in the attached financBI slalemenls. The nel movement in funds for the year amounted lo a surplus of £53,76312020- £66,008). The Charity's total reserves al 31 August 2021 amounted to £1,252,254 (2020 - t1, 198,491) all of which are unrestricted following the completion of the renovalion works which now meant that the terms of the grant funding have now been complied wth, all¢)wing for all the Charty's to be ¢la$$ified a$ unreslrirted. Publlc 8onofit Statement The Trustees confirm that they have complied their duty lo have due reg8rd lo the guidance on public benef published by the Charty Commission in exercising their powers and duts'e$. This report was approved and authorised for issue by the Twslees and signed on i(s behalf by.. Cathy Walsh Chair of Tru$tee$ Date.. osms2022 Page 3
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Indopondènt Examlngrfs Roport to thg Tn9$ of Haggovston Noighbourhood Loamlng Contrg I'the Charity'l I report lo the Charty Trustees on my examination of the &counls of the Charity for the year ended 31 August 2021. Rosponslbilitios and Basis of Report As the Trustees of the Charity land its Directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordance wth the requirements of the Companies Act 20061.lhe 2006 Act'i. Having satisfied myself that the accounts of Ihe Charity 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 the Charity's accounts carried out under section 145 of the Charities Act 2011 {'the 2011 Act'l. In carrying out my examination I have followed the Oirections given by the Chanty Commission under sethon 14515llbl of the 2011 Act. Indendent Examln•rf8 Ststsment I have completed my examination. I confinn that no malters have come lo my attention in connection wlh the examination giving me Se lo believe.. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act,. or the accounts do not accord wlh those records,. or the accounts do not comply wth the accountsng requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'lrue and fair, view which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance vAth the methods and principles of the Slalement of Recommended Practice lor accounting and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Repoth'ng Standard applicable in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in conneth'on with the examination to vthich attention should be drawn in this report in order to enable a proper understanding ol the accounts to be reached. Signed.. Dated.. 10m5r2022 Stuart M¢Kay Bsc FCA DChA MHA Maclntyre Hudson, London, Unrted Kingdom Page 4
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Nots Incom8 from: Other trading activities 91.200 91,200 91,200 Totsl in¢omo 91.200 91,200 91,200 Expendltur• on: Charitable activities 37.437 37,437 25,192 Total •xp•ndltur• 37.437 37,437 25, 792 N•t mov•m•nt In lund• 53.763 53,763 66,008 R•concIllaOn ol lund8: Total funds brought forward Net movement in funds 1,198.491 53.763 1.198,491 53,763 7,132,483 66,008 Total funds carrl•d forward 1,252.254 1.252,254 1.198,491 The Statement of Financial Ath'vities indudes all gains and losses recognised in the year. All income and expenditure derive from ntinUIng activities. All income and expenditure for both the current and previous years are allocated to unrestricted fund5. The notes on pages 7 to 14 fomi part of these financial stslements. Page S
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Limitèd by Guarantèè) REGISTERED NUMBER: 04619849 BALANCE SHEET AS AT 31 AUGUST 2021 2021 2021 2020 2020 Flxod as$•ts Tangible assets Current assets 1,239.443 1,263,210 Debtors Cash at bank and in hand 209,237 24,795 184.437 10,390 234,032 194.827 Creditors.. amounts falling due thin one year 10 156,1611 (45,081) Not current a•$•ts 177.871 749, 746 Total a88•ts less currant Ilabllitl88 1,417,314 1,412,956 Creditors.. amounts falling due after more than one year 11 1165,0601 f214,465) Total not a888ts 1,2S2.254 1, 198,491 Charlty funds Unreslrided funds 1.252.254 1, 198,491 Tolal funds 1,2S2,254 1, 198,491 The Charity was entiued to exemption from audrt under section 477 of ihe Companies Act 2006. The Members have not required the company lo obtsin an audrt for the year in question in aceordance with section 476 of Companies Act 2006. The Trustees acknO%edge their responsibilrties for complying the requirements of the Act wrth respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance the Provisions appli¢able lo enlilies subject lo the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Cathy Vlalsh Chair of Trustees Date.. 0510512022 The notes on pages 7 to 14 fomi part of these finanaal statements. Page 6
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 G•n•ral InforniaOn Haggerston Neighbcsurhood Leaming Centre is a charitable company and is registered wth the Charity Commission (Chanty Registered Number 1098129} and Registrar of Companies (Company Registration Number 046198491 in England and Wales. In the event of the Chanty being M)und up. the liability in respect of the guarantee is limited lo £1 per member of the Chanty. The address ol the regislered office is given in the Charity informats'on on page 1 of these financial statements. The nature of the Charty's operations and principal ath"vrties are lo educate and train young people and adults, especially by providing education on the use of computers. The significant accounting policies applied in Ihe preparatson of these financial statements are sel out below. These policies have been nsIsten11Y applied to all years presented unle$$ otheiSe $tsted. Accountlng pollcles 2.1 8a#ls of pr8paratlon of finlnclal statsments The financial statements have been prepared in accordanee wlh the Charities SORP IFRS 1021 Accounting and Reporting by Charrties". Stalement of Recommended Practice applicable lo charits'es preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Assets and liabilities are initialty recognised at historical cost or transaction value unles8 olhemse slated in the relevant ac¢ounbng policy. The financial statements are prepared on the going concem basis and are presented in sterling which is also the ffijnctional cUencY of the Charity and rounded to the nearest pound. 2.2 Golng ¢on¢em The Trustees have assessed the use of going concem and have considered possible events or conditions that might cast significant doubt on the abilty of the Charity to continue as a goin9 concem. The Trustees have made this assessment for a period of at least one year from the dale of the approval of these financial slatemenls. The Trustees have concluded that there 15 a re8sonable expectation that the Charty has adequate sOUrceS lo Continue in operational existence for the foreseeable future. The Charty therefore continues lo adopt the going concern basis in preparing ils financial statements. 2.3 Income All income is re¢ognised once the Charrty has enltuement to the income, il is probable that the income will be received and the amount of income receivable can be measured reliably. Page 7
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 A¢¢ounllng poll¢lo$ l¢onllnuod} 2.4 Expenditur• Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, rt is probable thal a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by aclivty. The costs of each activity are made up of the totsl of direct costs and shared c051s. in¢luding support costs involved in undertaking each acb"vty. Direct Costs attributable lo 8 Single activity are allocated directly to that aclivty. Shared costs 1¢h contribute lo more than one activity and support costs vthich are not attributable to a single activity are apportioned beeen those activities on a basis consistent wth the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset'5 use. Expenditure on charitable acts'vilies is incurred on direcuy undettsking the aclivth'es which further the Charity's objects'ves. as V•*ll as any assoualed support costs. All expenditure is indusive of irrecoverable VAT. 2.5 Taxatlon The Charity is considered to pass the tests sel out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore f( meets the definition of a charrtable company for UK ¢orporation lax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received wthin categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gain5 Act 1992, to the extent that such income or gains are applied exclusively lo charitable pvrposes. 2.6 Tanglble fixgd assets and dgpre¢l•llon Tangible fixed assets costing £350 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are inib'alty cOgnised at cost. After CognitIon. under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into r(s intended working condition should be induded in the measurement of c05t. Depreciation is charged so as to all(xate the cost of tsngible fixed assets less their SIdUal value over their eslimaled useful lives. using the straigh14ine method. Depreciation IS Provided on the followng bases.. Long lea5eholtl pToperty Leasehold improvements over the term of the lease over the tem) of the lease or over the lrfe ofthe asset (between S and 50 years) 2.7 Debtors Trade and other debtors are recognised at the seluement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discount$ due_ Page 8
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 A¢¢ounllng poll¢lo$ l¢onllnuod} 2.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments wth a short maturity of three months or less from the date of acquisition or opening of the deposrt or similar account. 2.9 LlabblltS Liabilities are fecognised when there is an obligation at the Balance Sheet date as a result of a past event, rt is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliabty. Liabilities are recognised al the amount that the Charity anlicipales il wll pay to settle the debt or the amount il has received as advanced payments for the goods or seNices il musl provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Vvhere the effect of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rale that reflects the risks specific lo the liability. The unwinding ol the discount is iecognised in the Statement of Financial Actsvities as a finance cost. 2.10 Flnanclal Instruments The Charity does not have a material holding in complex ffinancial instruments. The Charity only holds basic Financial Inslrumenls. The finanual assets and financial liabilities of the Charity are as follows.. Debtors - trade and olher debtors (including accrued income) are basic financial in$trument$ and are debt instruments measured at aMa'sed cost as detailed in Note 9. Prepayments are not rinancial instruments. Cash al bank- is dassffied as a basic financial instrument and is measured al face value. trade creditors, accruals and other creditors wll be classified as financial instruments, and are measured at amortised cost as detailed in Notes 10 and 11. Taxation and social security are not included in the financial instruments disclosure. Deferred income 15 not deemed to be a financial liability, as in the ¢a5h settlement has already taken place and there Is simply an obligation lo deliver charitable services rather than Cash or another financial instrument. 2.11 Fund accountlng General funds are unrestricted fiJnd5 lch are available for use at the discretion of the Trustee5 in furtherance of the general objectives of the Charrty and which have not been designated foi other purposes. Page 9
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Crltl¢al a¢¢ountlng èstimatès and areas of Judg•mont Estimates and judgements are contsnually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptlons." Depreciabon rates for tsngible fixed assets.. The Charity makes esb"mate5 and assumptions conceming the frJture. The resulting accounting eslimales and assumptions IMII, by definition. seldom equal the related adual results. The eslimales and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgemgnl.. Useful economic lives of assets. Incomg from othfjr tradlng actlvlll•¥ Unrestrlctsd fvnds 2021 Totsl fund$ 2021 Rent receivable 91,200 91.200 Unrestn¢tgd funds 2020 Total funds 2020 Rent receivable 91,200 91,200 Page 10
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Analysis of •xp•nditurn on ¢harltabl• a¢tivltl•s - by ty Support costs 2021 Total fijnds 2021 Training and education 37,437 37,437 Support costs 2020 Total funds 2020 Training and education 25,792 25,792 An*ly818 of Support co8t8 Totsl funds 2021 Total funds 2020 Depreciation Interest and bank charges Legal and prolessional Govemance costs 23,767 12,345 125 1,200 23,767 265 1, 160 37,437 25, 192 Governance costs 2021 2020 Independent Examiners, Temunerats"on- Examinats"on of the financial stslements 1.200 1,160 1,200 1,760 Page11
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Trusto0s' romunorntlon and •xp•ns•s During the year, no Trustee$ received any remuneration or other benefits (2020- £NIL). During the year ended 31 August 2021. no Trustee expenses have been incurred (2020- £NIL). Tanglblo flxod assets Long l•as¢hold L•a$•hold prop•rty Improv¥m•nts Total Cost or valultlon At 1 September 2020 and 31 Augvsl 2021 820,000 860,358 1.680,358 Deprèclatlon Al 1 September 2020 Charge for the year 118,326 6,560 298,822 17,207 417,148 23,767 Al 31 August 2021 124,886 316,029 440,915 N•t book valu• Al 31 August 2021 695,114 544,329 1,239,443 Al 31 Augusl 2020 701.674 561,536 1.263,210 The leasehold propety is hekl under a 125 year lease eXring in 2127. A charge is registered against the tsue of the leasehold propety by the Department of Business, Innovation and Ski115 loriginalty registered al Department for Education and Skills) in respect of a grant from UK-Online. a major contributor towards the purchase of the premises, which secures the repayment of part or all of the grant should the assets not contsnue to be used for the purposes for which the grant was given. The grant ieceived from UK-Online in 2004 was £345,629. There 15 a fvrther charge registered against the property by Transport for London (originally registered wth the London Development Agency). another major contn"butor towards the purchase of the premises. This also secures the repayment of part or all of Ihe grant should the assets not Continue to be used for the purposes for which the grant was given. The grant ceiVed from the LDA in 2004 was £585,012. Page 12
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Debtors 2021 2020 Du• wlthln ono year Amounts owed by group undertakirwjs 209,237 184,437 209.237 184,437 10. Credltorn: Amounts falllng du• wlthln year 2021 2020 Bank loans Trade ¢redrtors Accruals $1.811 1,300 3.050 41,871 1,300 1,970 56,161 45,087 11. Cr9dllors: Amounts falllng dug after morg than ong yr 2021 2020 Bank loans 165,060 214,465 A long term loan from Halrfax Bank of Scolland PLC was received by HNLC and is secured on the Group's property. £216,871 (2020 - £256.336J in total was OLrtstanding at the year end. split betsveen Credilorg.. Amounts falling due within one year and Credrtors.. Am¢)unts falling due after one year. This loan was obtained lo help finance the purchase of. anil V•f)rks to. the Group's propety. Mortgage interest is shown in the SOFA. The loan is secured on the propety, and repayable over 20 years from March 2006 at 2% over base rate. 12. Contlng•nt Ilabllltl¢$ The Charity purchased and developed its leasehold premises wth the financial assistance of the Department of Business, Innovation and Skills loriginally registered at Department for Education Skillsl (via UK-Onlinel and the London Development Agency ILDAI. Both of these agencies placed ongoing reslriclion5 on the asset's use as 11 as a gaI charge over the property. The grant received from UKOnline in 2004 was £345.629 and the grant received from the LDA in 2004 was £585,012. Should a decision be made to sell the property a proportion of these funds would be repayable. At the year end it was not the Trustees intentn to dispose of the propety and therefore no liability has crystallised. Page 13
HAGGERSTON NEIGHBOURHOOD LEARNING CENTRE IA Company Llmltsd by Guarnntso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 13. Rglatgd paity Iran$a¢tlons The Charity is taking the exempti'on under paragraph 33.1A of FRS102 not to dislose Intra-group transactions with fellow %tholty owned subsidiaries and the parent company. There have been no other lated party transaclions in the curn1 or previous year. 14. Controlling party The Charity is under the control of East London Advanced Technology Training IELATTI, a charrtable company (Registered Company Nvmber." 018129081. ELATT was the original subscriber lo the Memorandum and th'¢les of Haggerst¢)n Neighbourh¢)od Leaming Centre IHNLCI. and is the sole member ofthe Company. 15. Analy818 of net aJ80ts betn fund• Analysls of net assets betwoon lunds - current yoar Unr•strlct•d funds 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 1.239,443 234,032 156,1611 1165,0601 1,239,443 234.032 156,1611 1165,0601 Total 1.252,254 1,252,254 Analysis of net •$s¢ts b¢tmn fvnd$ - prlor year Unrestricted runds 2020 Total runds 2020 Tangible fixed assets Current assets Creditors due wlhin one year Creditors due in more than one year 1,263,210 194,827 (45,081) (214.465) 9,263,210 194,827 (45,081) (214,465) Totsl 1, 198.491 7, 198.491 Page 14