Company registration number: 05090173 Charity registration number.. 1107343 Crystal Palace Community Trust Limited IA company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2024 Field Sullivan Limited 9 Hare & Billet Road Blackheath SE3 ORB
Crystal Palace Community Trust Limited Contents Reference and Administrative Delails Trustees, Report 2tolO statement of Trustees, Responsibilitie5 li Independent Auditors, Report 12to15 Statement of Financial Actlvities 16to17 Balance Sheet 18 Statement of Cash Flows 19 Notes to the Financial Statements 20to36
Crystal Palace Community Trust Limited Reference and Administrative Details chalrperson Mark Painter Charity Reglstratlon Number 1107343 Company Registratlon Number 05090173 Reglstered Office Anerley Town Hall Anerley Road London SE20 8BD Auditor Field Sullivan Limited 9 Hare & 8illet Road Blackheath SE3 ORB Bankers HSBC Bromley High street 184 Bromley High street Bromley Kent 8RI IHL Page I
Crystal Palace Community Trust Limited Trustees, Report List of Crystal Palace Communlty Trust Trustees Mark Painter- Chair Eileen Goulding- Company Secretary Christopher Harrison -Treasurer Len Blomstrand - Vice Chair Raymond Bascombe Mahendra Patel Angela Wikins Non-votlng Local Authority Nominees Councilor Ruth McGregor18romley Representative) Councilor Catherine Rose Isouthwark Representative) Staff Members Trust Operations Manager- Tracey Skillern / Ben Harding Iw.e.f. 01/121231 Trust Development Manager- Elaine Harrison Finance and Risk Officer john Gazeley Marketing & Community Engagement Officer- Andre Thorne Admin Officer- Joy Hannon Admin officer- Asia Szalinska Lead Youth Worker- James Harrison Shears Support Youth Worker5'. Maria Ako, Odette Ukando, Simone Boothe Caretakers- Lee Bracel Richard Hicks Weekend Caretakers -10seph Boateng, Alfred Petite, Mikhail Preddie and Richard Hicks Bankers: HSBC- 184 High Street, Bromley, Kent, BRI IHE Auditors: Field Sullivan Chartered Accountants- Blackheath SE3 ORB Page 2
Crystal Palace Community Trust Limited Trustees, Report Chalrfs Report 23124 With the ending of the Kingswood Community Shop and the cross-borough Power of One project in 2023/24 we saw CPCT consolidate it posltion as provider of quality servlces from within Anerley Town Hall I'ATH'I, Its base. Now 7 years into a 40-year lease, we remain proud of our achievements over this time including investing over £800,000 into the iconic building from within which we manage a hlghly popular Busines5 Centre with occupation levels now pushing IOOO/o, the Pineapple Luncheon club continue to be based here and meet every week, the twice weekly youth club is thriving, and life celebration event5 occur nearly every weekend making ATH an ideal destination for Weddings, Birthday, christenings et al. In terms of outcomes in June 23 CPCT ended its Power of One Projed which helped support more than 1,400 young people in the area develop through doing actlvities that pushed them both mentally and physically. The project met its targets and came in on budget, at over £550k, making it cpcfs biggest project to date. Post Covid we like many have found the landscape for projects like ours, where we are at least part in need of external financial support challenging, and we are lucky that financial prudency has given us the means to sponsor the running of the Youth Club going into 24125 from our unrestricted reserves. Funds remain for elders activities, but the funding for the Detached Youth work team based on the Kingswood estate will come to an end during 2024. CPCTS concentration this year has been making sure that we kept things going smoothly following a wholesale change in operational staff during 3 months in 2023, most notably the Trust Manager and Senior Admin Officer who left along with the Finance Officer, Special thanks go to john and Elaine who helped things to run smoothly as we recruited a new team that now comprises Ben, Joy and Asia who have created a new and harmonic atmosphere at Anerley and we hope that they are able to develop their roles and our service further. Additional thanks go to Tracey Skillern who left after 19 years, and her wisdom and experience will be missed. The above meant that we were unable to invest in the building like we have in previous years, but we do have £40,000 budgeted for 24/25 where the focus will be the outside of the building and making it a more welcoming place. To that end we are applylng for funding that will help us replace the remainlng old windows with double glazed and if that is successful should happen 2024-2025. Financially we were able to produce a strong performance with unrestricted reserves going up from negative £-40k to positive £115k, an overall surplus of E155k. This included a re-evaluation of provision5 for works needed to Anerley Town Hall over the next 3 years from £421k to £296k. Restricted Funds received reduced from £285k to £115k as projects came to an end and funding availability dried up. We do have £49k restricted funds carried forward into next year which will help us to continue providing services for younger and elder people* particularly. The way our accounts are presented made it increasingly difficult to lever in funds and as such a Communlty Interest Organisation. 4ward4Youth has been formed around providing services for local young people and we are excited to see how this evolves in 2024. In January 2024 we had a vi51t from the London Mayor who fully supported what we are trying to do to better improve the local area by providlng affordable and accessible Services that Increase the chances of people reaching their full potential. Page 3
Crystal Palace Community Trust Limited Trustees, Report Finally, I would like to say a big thank you to my fellow trustees, paid members of staff and volunteers for their time and efforts in ensuring CPCT provides meaningful benefits for local people now and well into the future. Worklng wlth Young People Funding for Youth Club ran out in October 2023, and due to a change in funding criteria, children in Need declined to provide continuation funding which created financial pressures which has led to a slight restructure of our yosjth club offer; we still operate on Mondays and Thursdays. The youth club is thriving, and we have attendances of up to 45 children and young people. There is good communication with families, and we are well known and respected in our community, parents feeling able to contact youth work staff for support with issues impacting their children's lives. We have built a solid, consistent youth work team. We are approved providers for the Holiday Activities and Food Programme IHAAFI funded via Bromley Council bv the Department of Education. This continues to develop, and we are reaching those who most need this provision. The scheme has flagged a recurring and important issue, which is the need for school holiday provision for children and young people, most particularly for 'the working poor,. CPCT is exploring the potential to develop an ancillary programme that enables us to provide subsidised places for those not on free school meals. We now offer a total of 6 weeks IHAAFI provision, 4 in the summer and one each at Easter and Christmas. More than 100 children and young people participate over summer when we offer enrichment activities in the mornings and Iweather permittingl outside sports/physical activities in the afternoons. We offer a day trip once a week including a seaside trip. Our two-year detached programme on the Kingswood estate ended in March 2023. We had built very good community relationships within the estate and thls brings the Trusts relationship with that estate to an end after more than 12 years. We leave behind a very posltive legacy and retain some meaningful partnerships wilh potential for ongoing collaborative work. Anerley is very under-served in respect of a youth offer and our work pro-actively targets children and young people, diverting them away from challenging behaviours and into positive activities. There is a conslstent increase in numbers of children and young people with additional needs at our youth provislon which despite ratios of I to 8 can create staff inE difficulties because of the need for additional support- we are alleviating this through the involvement of volunteers who help increase the ratio of staff to young people. Anerley Business Centre, 123 Anerley and Community Halls This year has seen Anerley Town Hall maintain its place as a focal point of life in the local area. The business centre 15 virtually full, the community hall space has a blg life event being celebrated most weekends and various activities during the week, and 123 Anerley host a vibrant twice weekly youth club, amongst other things. The Business Centre occupancy has been at 98% for most of 2024 with businesses now fully operational following the fallout from Covid 19. The concerns that we had regarding the long-term effect on how people worked, especially for small businesse5 has so far not transpired and we are optimistic going forward that we have a good product to offer local people. Page 4
Crystal Palace Community Trust Limited Trustees, Report During the week we have offered from the building.. Citizens Advice, Computer classes, Over 50s Activity sessions, Boxing, Kettle Exercise, Salsa Dancing, Adult and chlldren's Art classes, Karate sessions, Bump and Baby club, Rattle and hum mother and baby classes. A Warm Hub for elders, 5 Rhythms sessions The Pineapple Caribbean Luncheon Club, EaBles over 50s activities club Choir Sessions and the aforementioned Youth Club We are now an approved provlder of school holiday schemes for dlsadvantaEed famllies, and we held a 4 week 16 day event last summer that attracted over 120 kids. We will be doing something similar this year. Operationally this year has been challenging with regard to staff turnaround when we lost The Trust Manager, The Senior Admln Officer and the Financer Officer 311 within the space of 3 months, However we have come through that now and we have built a new team of Ben, loy and Asia who have made sure that there has been no loss of service to building users and will look forward to improvement5 in the years to come, Special thanks EO out to the outgoing staff, especially Tracey Skillern for her 19 years dedicated to being the rock that held it all together. Special thanks also to John Gazeley and Elaine Harrison who administered the transition of staff into what now feels like a strong team to take things forward. Due to the churn of staff, we didn't have the capacity to invest in the building as much a5 Usual but were able to provide £6k worth of new carpets and lino in some areas and have a £40k investment plan for 2024/25. Page 5
Crystal Palace Community Trust Limited Trustees, Report Trust Development The outlook for funding has proved to be as forecast; gloomy. Many of the major funders had still not re-opened their funds and those who had had changed their criteria. There is very little funding available for universal, open access provision, which is what we deliver. There is increased use of the Children, Young People and Family Centre that is 123 Anerley with a range of different providers and the local authority youth service now using It regularly, although there Is still no regular use of the Kitchen space. An ongoing issue for the Trust and other organisations like us, who have stepped into the breach created by local authority tutbacks is that many funders will not support charitable activities where they feel that these are a statutory responsibility. Caught in the middle between these views are the elders without day centres and the young people without youth club provision, and the Trust takes its responsibility towards these two groups seriously. Although we have not been able to expand our work with young people, we have maintained it at current levels and have also plan to add valtje through our partnerships by leveraging a small amount of funding to enable us to offer mentoring support to particular young people struggling with a range of issues. We are also particularly concerned about Supporting work with elders as there is no day centre provi51on in the area due to the local authority closures. Research demonstrates that older people who stay active stay healthier physically, mentally and emotionallyi reducing the need for medical treatments e.g. for depression, for falls etc. and we know from the membership of the elders, groups using our building how important this provision is in reducing loneliness and isolation in vulnerable people. We are addressing the issue about our income and reserves levels working against us in terms of acquiring funding. After reviewing our structure, the board made a decision to create an arm's length CIO Icommunity Interest Organisationl focused on work with young people, which can over time build its own track record in terms of managing finances and delivering services. The former Trust Manager will chair the small committee which comprises 3 CPCT Board members. We continue to maintain and develop our partnerships, across sectors. The local authority youth service is using our space to accommodate their youth provision since the closure of Street Wise, which makes CPCT a central point for youth services in the area. Because of our partnerships we continue to be able to generate income and have attracted some small and medium sized grants. We will continue to strive to maintain current levels of provision and prepare ourselves for growth going forward. Commenta on the Financial Position over the ear Over311, our unrestricted reserves increased from negative £40k to positive £115k lincluding a £125k reduclion in the allowance for provisions for repairs to ATHI, while restricted reserves reduced from positive £122k to positive £49k. The remaining £30k increase to unrestricted reserve5 15 primarily due to the reduced investment this year 1£6kl in building improvements. Page 6
Crystal Palace Community Trust Limited Trustees, Report The reduction to restricted reseives was mainly due to difficLtlty of acquiring new funding following the covid pandemic and the using up of old funds, meaning that it will be tougher going into the next financial year. Total income received from Anerley Town Hall's Business Centre office hire was £238k Ivs £198k in the prior financial yearl and £179k from the communlty space hire Ivs £146k in the previous yearl. For 123 Anerley (former old library) we achieved hire income of £29k as opposed to £20k in the previous year. However, we were able to keep occupation of the 25 offices in the Anerley Business Centre at a high level, ending the year with 98Ya of desks occupied. In the year the Trust invested just £6k into improving the buildings fabric due to high staff turnover meaning that this was not our prime concern this financial year. £40k has been provided in 2024/25. cpct received in total £11Sk in external grant funding to SUPPOrt activities as follows.. £0.3k public donations £44k Anerley Town Hall Youth Support. £9k from BBC Children in Need ending for now its support the running of our twlce weekly youth club, £30k from LB Bromley and, É5k from Clarion for the Holiday Hunger Scheme IHAAFI £22k from the Young Londoners Fund towards the running costs of our Power of One project, aiming to improve the life chances of approximately 1,400 young local people over its 3-year life which was extended by 6 months and ended orTr 30106123 £27k for the Kingswood Estate Detached Youth Team contributed by Southwark Council £5k for intergeneration projects from Bromlev £IOk from Jack Petchey towards youth and the Marketing Intern £6k other including support for Black History Month and the London Festival of Architecture CPCT is grateful to all of the above donors for having the belief and trust in us to deliver services that improve the lives of local people. CPCT'S funding CPCT is currently financed by a variety of different funders and income stream5 which mixes the trading income from space hire at Anerley Town Hall 5UPPOrting our core business, alongside other funding streams to support projects that have a tangible social benefit, for instance our twice weekly youth club We have attempted to keep abreast of changes which may affect how CPCT manages to sustain current levels of project delivery and increase the level of funding needed for work planned for the future. CPCt plans its fundraising in advance having 3 minimum 24-month view of its cash flow. Typically, it Can take up to 12 months to secure new funding From initial research through the application process to receiving the first payment. cpcr is funded from several different sources that may place Eeographical and other restrictions on where and how fundinE can be spent. Page 7
Crystal Palace Community Trust Limited Trustees, Report Public Benefit The Trustees have considered the Trust's activitie5 and achievement5 for 2023124 and its plans for 2024125 against the Publlc Benefit Guidance issued by the Charity Commission. They agreed that the Trust's projects and work carrled out in the local community as described elsewhere in this report demonstrate the substantial benefit5 derived by the public in the areas covered by the Trust. Reserves Policy Crystal Palace Community Trust needs reserves to: Meet contractual liabilities should the organisation have to close. This includes redundancy pay, amounts due to creditors and commitments under leases, such as rent and building repairs and payments received for future space hires that may not be able to be honoured. Meet unexpected costs like major building repairs, the breakdown of essential office equipment, cover staff for illness, maternity leave, parental leave, redundancy and legal costs defending the charity's interests. Replace equipment as it wears out, ensuring that the charity can continue to provide a stable and good quality service to those who need it. Provide working capital when funding is paid in arrear5 and place the charity in a position where it could bid for such external funding. External grant funding often has certain restrictions, which means that bv law it must be held in restricted reserves until it is spent in line with the funding agreement and accounted for appropriatelv. A prudent level of reserves Following the stark impact of Covid related social restrictions on our main trading income stream5, a revised level of 5 months to 7 months of core annual operating costs was lin 201211 appropriate at the time. Following the economic downturn, the global socio-economic picture and in line with the understood good practice in our sector we are now amending the level of reserves to 3 to 6 months of core annual operating costs. The trustees consider this revised level of reserves to remain sufficient to provide flexibility to bridge temporaiy differences in working capital and will allow CPCT to operate under emergencies, such as a pandemic, whilst specific changes are implemented. The funding for provision for dilapidations for ATH building is expected to be met over the next 3 years from income from normal business activities, external grants and donations, and where needed from reserves. The amount of investment needed Is consistent with the investments made into ATH building over the previous 7 years. Establishing and maintaining a prudent level of reserves CPCT aims to ordinarily have reserves in the range of 3 to 6 months of current annual operating expenditure. In the event of reserves dipping below the target CPCT will aim to restore the reserves to at least 3 months of annual expenditure over ihe next three years. This could be achieved by increased fund raising, increasing earned income or reducing expenditure. If reseives exceed 6 months of annual expenditure CPCT will consider this in the light of the likely expenditure over the next two years against secured income, and any shortfall that will require external funding. Page 8
Crystal Palace Community Trust Limited Trustees, Report Brlnglng actual reserves into line wlth the policy The unrestricted reserves held at 31103124 are E116k and have been calculated to include a provision of £296k for sper>d on the improving the building's internal and external fabrlc over the next 3 years to bring it back to what the lease requires to be "reasonable" conditlon. It should be noted that currently120241 CPCT expects to be able to ralse £40k per year through its normal btjsiness activities towards this cost, and therefore should only need to use £176k of these funds over the next 3 year5 1£296k less 3 x £40k £120kl effectively bringing the available unrestricted funds to £235k1£11Sk + E120kl. This calculation assumes that no rent is to be paid to Bromley, which is currently being negotlated. The tru5tee5 expect that, in 2024125, overall earned income will remain at 3 level consistent to the previous year documented here, and that rate of operating costs increase is likely to slow down due to the general reduction in inflation. Monltorlng and revlewing of reserves pollcy The trustees will Consider current costs of closure and examine the level of reserves each year when setting the following year's budget. This reserves policy will be reviewed at a minimum every two years. Rlsk Assessment The Board of Trustees h35 conducted its own review of the major risks to which the charity is exposed, and systems and measures put in place lo mitigate those risks. External risks to the continuation of external grant funding have led to the development of a re-worked strategic plan alongside an updated fundraising strategy which will allow for diversification of funding and activities. Internal risks are minimised by the implementation of procedures for authorisation of 311 transactions and projects and to ensure conslstent quality of delivery for all operational aspects of the charity. These procedures are regularly reviewed to ensure that they still meet the needs of the charity. For propriety and transparency, the trust intends to continue to have its annual atcounts externally audited, which is currently beyond the statutory requirement. Provision of informatlon to auditors In accordance wlth company law, the company'5 directors confirm that, so far as they are aware, there is no relevant audit information of which the company's auditors are unaware. Also, as the directors of the company, they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the company's auditors are also aware of that information. Membershlp & Electlon of Officer5 All members will have an opportunity to attend a general meeting which is held annually to review the business of the Trust and approve Its accounts. To undertake the business of the Trust, the membership, at the Annual General Meeting, will appoint a Board of Directors of the Trust. This will comprise of up to 20 representatives as follows.. 9 representatives of community organisations that are members of the Trust elected by the AGM * 3 individual members elected by the AGM 3 persons elected from amongst the bltsiness members 5 persons, one from each local authority that is invited to nominate members of the Board. Page 9
Crystal Palace Community Trust Limited Trustees, Report * A third of the Board elected in this way will retire annually Other Board members will be nominated and appointed on an annual ba51S. The Chair, Vice-chair, Secretary and Treasurer will be elected by the Board from amongst ihe duly appolnted Trustees, at its first meeting following the AGM. At present the Board has 9 members which includes 2 from the public sector. The Board of Directors meets bi-monthly. It is the major dec15ion taking and policy-formulating body of the Trust. Its main functions are.. To set an overall business strategy and monitor and review performance and achievement To establish a financial plan and budget and review it regularly To effectively review and manage risk within the organisation To deal with membership matter5 and staffing appointments To ensure compliance with all of the Trust's contractual and governance obligations To consider all legal matters and ensuie that the Trust's responsibilities are properly met To delegate detailed consideration of matters to working and focus groups Receive reports and make recommendations back. Page 10
Crystal Palace Community Trust Limited Statement of Trustees, Responsibilities The trustees Iwho are also the directors of Crystal Palace Community Trust Limited for the purpose5 of company lawl 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). including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requlre5 the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resource5 and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and apply them consistently- observe the methods and principles in the Charities SORP,. make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financi31 statements on the going concern basis unless it is inappropriate to presume that the charitable company wlll continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This report has been prepared in accordance with the small companies regime undef the Companies Act 2006. Approved by trus ees of the charity on 28 October 2024 and signed on its behalf by.. Mark Painter chairman and trustee Page 11
Crystal Palace Community Trust Limited Independent Auditor's Report to the Members of Crystal Palace Community Trust Limited Oplnlon We have audited the financial statements of Crystal Palace Community Trust Limited Ithe 'charity'l for the year ended 31 March 2024, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financlal Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its 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 requirement5 of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicat>le law. Our responsibilities under those standards are further described In the auditor responsibilitie5 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 statement5, 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 tonditions that, individually or collectively, may cast significant doubt on the charity's ability to conlinue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo 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 annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 12
Crystal Palace Community Trust Limited Independent Auditor's Report to the Members of Crystal Palace Communlty Trust Limited In connection with our audit of the financial statement5, 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 incon5iStencies 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. Opinion on other matter prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report for the financial year for which the financial statements are prepared is conslstent with the financial statements,. and the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the followinB matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the flnancial statements are not in agreement wlth 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. Responslbllltles of trustees As explained more fully in the Statement of Trustees, Responsibilities Iset out on page 111, the trustees 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 mi55tatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability lo 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 charity or to cease operations, or have no realistic alternative but to do so. Page 13
Crystal Palace Community Trust Limited Independent Auditor's Report to the Members of Crystal Palace Community Trust Limited 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 {UKI will always detect a material misstatement when it exists. Mlsstatements 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. The extent to whlch our procedures are capable of detecting irregularities, including fraud is detalled below.. Discussions were held with the management committee with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The following laws and regulations were identified as being of significance to the entity.. Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Companies Act 2006, and The Charities Act 2011. It is considered that the laws and regulations for which non-compliance may be fundamental to the operating aspects of the busine$5 or to avold matelial penalty include complyine with the lease obligations for Anerley Town Hall. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of.. inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potentlal litigation or claims,. inspection of relevant legal corre5pondence,' review of board minutes,. testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period,. and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identlfied. However, the likellhood of detecting irregularities, includlng fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAS IUKI. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditods report. Page 14
Crystal Palace Community Trust Limited Independent Auditor's Report to the Members of Crystal Palace Community Trust Limited Use of our report This ieport is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charlty's trustees 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 OT assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Tim Sullivan FCA (Senior Statutory Auditor) For and on behalf of Field Sullivan Limited, Statutory Auditor 9 Hare & Billet Road Blackheath SE3 ORB Date.. Page 15
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Crystal Palace Community Trust Limited (Registration number: 05090173) Balance Sheet as at 31 March 2024 2024 2023 Note Fixed assets Tangible assets Investments 13 7,585 119,580 8,105 108,882 14 127,165 116,987 Current asset5 Debtors 15 4,716 525,407 2,450 584,070 C35h at bank and in hand 16 530,123 586,520 Creditors: Amounts falllng due withln one year 17 1196,6021 1194,3631 Net current assets 333,521 392,157 Total assets less current liabillties 460,686 509,144 Provisions 19 1296,3651 1426,9021 Net assets 164,321 82,242 Funds of the charity,. Restricted Income funds Restricted funds 48,864 121,921 Unre5trlcted income funds Unrestricted funds 115,457 139,6791 Total funds 20 164,321 82,242 The linancial statement5 on pages 16 to 36 were approved by the trustees, and authorised for issue on 28 October 202 and signed their be alf by.. Mark Painter Chairperson and trustee The notes on pages 20 to 36 form an integral part of these flnanclal statements. Page 18
Crystal Palace Community Trust Limited Statement of Flnancial Activitie5 for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) All of the tharity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 20. The notes on pages 20 to 36 form an integral part of these financial statements. Page 17
Crystal Palace Community Trust Limited Statement of Cash Flows for the Year Ended 31 March 2024 2024 2023 Note Cash flows from operatlng activities Net cash income 82,079 52,154 Adjustments to cash flows from non.cash items Depreciation Investment income 6,149 16,4311 110,6971 7,621 13,5461 5,513 Revaluation of investments 71,100 61,742 Working capital adJustments Ilncreasel/decrease in debtors Increase/ldecreasel in creditors Decrease in provisions IDecreasel/increase in deferred income 15 12,2661 15,950 1130,5371 113,7111 15,813 129,1801 138,9281 2,826 17 19 Net cash flows from operating activities 159,4641 12,273 Cash flows from Investlng activlties Interest ieceivable and similar income 6,430 15,6291 3,547 111,4931 Purchase of tangible fixed assets 13 Net cash flows from investing activities 801 17,9461 Net Idecreasellincrease in cash and cash equivalents 158,6631 4,327 Cash and cash equivalents at l April 584,070 579,743 Cash and cash equivalents at 31 March 525,407 584,070 All of the cash flows are derived from continuing operations during the above two periods. The notes on pages 20 to 36 form an integral part of these financial statements. Page 19
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 I Charity status The charity is limited by guarantee, incorporated in . and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity In the event of liquidation. The address of its registered office is: Anerley Town Hall Anerley Road London SE20 8BD These financial statements were authorised for issue by the trustees on 28 October 2024. 2 Accounting policie5 Summary of significant accounting pollcies and key accountln8 estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policles have been consistently applied to all the years presented, unless otherwise stated. Statement of compllance 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 IFRS 1021 lelfective I january 20191 (Charities SORP IFRS 1021 Second edition October 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. They also comply with the Companies Act 2006 and Charities Att 2011. Basis of preparation Crystal Palace Community Trust Limited 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 notes. Page 20
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 Golng concern The financial statements have been prepared on a going concern basis, which assumes that the Charity will be able to meel its debts as they fall due. However, at the end of the year the charity had unrestricted reserves of £115.45712023'. negative unrestricted reserves of £39,679). The trustees believes it is appropriate to prepare the financial statements on a going concern basis, as the negative unrestricted reserves arises as a result of the dilapidations provision that arose on the inception of the lease of Anerley Town Hall. At the year end the cost of future dilapidation works was estimated by the trustee5 to be £296,365 12023.. £426,902), and these costs would be spread over the remaining period to 31 March 2027 to undertake these works and funded by income arising over that same period. Accordingly, the trustees believe the charity has sufficient resources to meet it's debts as they fall due and highlight ihat unrestricted reserves excluding provisions amount to £411,82212023.. £387,223). Judgements and key sources of estimation uncertalnty In the application of the charity's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent fiom other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the periods in which the estimate is revised where revisions affects only that period, or in the period of the revision and future periods where the revisions affects both current and future periods. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabllities within the next financial year are addressed below.. Repair works provision for Anerley Town Hall Under the terms of the lease for Anerley Town Hall, that the charity entered into on 21 March 2017, is dilapidation/remedial works requirement that is provided for by the Trustee's, based on the assumptions and estimate5 given in Note 19. Income and endowments All income is recognlsed once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Donations and legocies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions Is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Page 21
Crystal Palace Community Trust Limited Notes to the Flnancial Statements for the Year Ended 31 March 2024 Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met. the income is recognised as a liability and included on the balance sheet as deferred income to be released. Deferred Income Deferred income represents amounts received for future periods and is released to incominB resources in the period for which, it has been received. Such income is only deferred when: The donor specifies that the grant or donation must only be used in future accounting periods,. or The donor has imposed conditions which must be met before the charity has unconditional entitlement. Investment income Interest income 15 recognised using the effective interest rate method. Expenditure All expenditure is recognised once there is a legal or con5tru£tive obligation to that expenditure, it is probable Settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar cost5 to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support cost5 are allocated based on the spread of staff costs. Ruisingfund5 These are costs incurred in attracting voluntary income, the management of investments and those incL¢rred in trading activities that raise funds. Charitoble actlvities charltable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It include5 both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Gront provlslons Provision5 for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about elther the timing of the grant or the amount of grant payable. Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategit management and trustees meetings and reimbursed expenses. Page 22
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 Taxatlon The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a Charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Tangible fixed assets Individual fixed assets costing £250.00 or more are initially recorded at cost. Depreciatlon and amortlsatlon Depreclatlon is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated resldual value, over their expected useful economic life as follows.. Asset class Equipment, Furniture and Fittings Depreclation method and rate Straight line over 3 year5 Fixed asset investments Fixed asset investment5, Other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. Trade debtors Trade debtors are amounts due from customers for merchandise sold or setvices performed in the ordinary course of busine55. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortlsed cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the reeeivables. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other 5hort-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insienificant fisk of change in value. PaEe 23
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the credltor for at least twelve months after the reporting dale. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilitie5. Trade creditors are reeoBnised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. Provisions Provisions are recognised when the charily has an obligation at the reporting date as a result of a past event, it is probable that the charity will be required to settle th3t obligation and a reliable estimate can be made of the amount of the obligation. Fund structure Unrestricted income funds are general funds that are available for use at the tru5lees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specifie purposes, the use of which is restricted to that area or purpose. Pensions and other post retlrement obligations The charity operates a defined benefit pension scheme.Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensatlon. The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit oblig3tion is determined by discounting the estimated future payment5 by reference to market yields at the reporting date on high-qualily corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise. Page 24
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 3 Income from donatlons and legacies Unrestricted Total 2024 Total 2023 General Restricted Donations and legacies,. Donations from individuals 308 308 1,105 Grants, including capital grants,. LB Southwark 27,126 9,873 5,097 9,081 22,135 27,126 9,873 5,097 9,081 22,135 27,126 27,499 13,082 48,004 132,883 5,850 2,497 Jack Petchey Foundation LB Bromley 8BC Children in Need Young Londoner's Fund London Sports Clarion for Foodbank Groundwork 5.320 500 5,320 500 LB Bromley HAAF Nicola Woods 30,329 30,329 20,634 1,627 1,454 3,850 CLB Bromley London Youth W G Edwards charitable Foundation Bromley Children and Families Forum Clarion Futures I,ioo 750 I,ioo 750 2,538 495 2,538 495 Penge Bid Bromley Black History Month Other donations 500 soo 554 308 114,844 115,152 286,165 Page 25
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 4 Income from charitable actlvlties Unrestrlcted Total 2024 Total 2023 General Restrlcted Bureau Services 380 380 1,058 29,348 7,127 170,132 203,330 Other Service Charges Other income 25,487 31,183 193,730 212,924 25,487 31,506 193,730 212,924 323 Hall Space Hire Office hire 463,704 323 464,027 410,995 5 Investment income Total 2024 Total 2023 Interest receivable and similar income: Interest receivable on bank deposits 6,431 3,546 6,431 3,546 6 Expendlture on raising funds al Costs of generatlng funds Total 2024 Total 2023 PR and promotion 5,530 2,378 Page 26
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 7 Expenditure on charltable activities Total 2024 Total 2023 Staff costs 239,298 1130,5371 12,000 55,116 12,846 28,192 5,384 40,839 276 228,757 138,9281 12,000 39,550 9,708 25,399 38,928 42,664 Increaselldecreasel in dilapidation provision for revision Rent Insurance Repairs and maintenance Long-term Building Repairs Telephone and IT Office expenses Printing, postage and stationery Cleaning Legal and professional Bank charges Subcontractors 2,755 45,828 16,890 2,434 88,944 1,327 6,149 41,012 32,446 5,328 2,171 4,322 44,937 13,056 1,860 64,225 1,397 7.621 107,445 31,015 5,082 1,624 Staff training Depreciation Direct costs Rate5 Audit Sundries 508,698 640,662 In addition to the expenditure analysed above, there are also governance costs of £5,32812023 - £5,082) which relate directly to charitable activities. See note for further details. Page 27
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 8 Net Incomingloutgoing resources Net incoming resources for the year include: 2024 2023 Audit fees 5,328 6,149 5,082 7,621 Depreciation of fixed assets 9 Trustees remuneration and expenses No trustees, nor any persons connected with them, have received any remuneration from the charity durlng the year. No trustees have received any reimbursed expenses from the charity during the year. 10 Staff costs The aggregate payroll costs were as follows.. 2024 2023 Staff costs during the year were., Wages and salaries Social security cost5 Pension costs 227,738 9,804 1,756 217,269 10,302 1,186 239,298 228,757 The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows.. 2024 No 2023 No Direct charltable activites No employee received emoluments of more than £60,000 during the year. The tot31 employee benefits of the key management personnel of the charity were £52,28312023 - E62,3881. Page 28
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 11 Auditors, remuneratlon 2024 2023 Audit of the financial Statements 5,328 5,082 The above remuneration includes service5 for the preparation of the financial Statements that are estimated to be £1,500. 12 Taxation The charity is a registered charity and is therefore exempt from taxation. 13 Tangible fixed assets Furniture and equipment Total Cost At l April 2023 Additions Disposals 82,237 5,629 126,4821 82,237 S,629 126,4821 At 31 March 2024 61,384 61,384 Depreclation At l April 2023 Charge for the year Eliminated on disposals 74,132 6,149 126,4821 74,132 6,149 126,4821 At 31 March 2024 53,799 53,799 Net book value At 31 March 2024 7,585 7,585 At 31 March 2023 8,105 8,105 Page 29
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 14 Fixed asset investments 2024 2023 Other investments 119,S80 108,882 Other Investments Llsted investments Total Cost or Valuation At l April 2023 Revaluation 108,883 10,697 108,883 10,697 At 31 March 2024 119,580 119,580 Net book value At 31 March 2024 119,580 119,580 At 31 March 2023 108,883 108,883 15 Debtors 2024 2023 Prepayments other debtors 4,716 1,700 750 4,716 2,450 16 Cash and tash equivalents 2024 2023 Cash on hand 744 Cash at bank 524,663 584,070 525,407 584.070 Page 30
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 17 Creditors: amounts falllng due wlthln one year 2024 2023 Trade creditors 36,000 82,579 78,023 24,000 78,629 91,734 Accruals Deferred income 196,602 194,363 18 Obligatlons under leases and hire purchase contracts Operatlng lease commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2024 2023 Land and buildings Within one year Between one and five years 24,000 48,000 24,000 72,000 72,000 96,000 Discussions with Bromley Council have commenced, lo agree on nullifying our ongoing rent commitment for Anerley Town Hall in light of the resource5 expended in looking after the bullding alongside the provision of service5 supporting the local community of Bromley borough residents. Page 31
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 19 Provlslons Dilapidations provlslon Opening balance Utilised during the period 1426,9021 130,537 At 31 March 2024 1296,3651 As part of the forty-year lease of Anerley Town Hall that commenced on l April 2017, the charity has an obligation to bring the property up to a condition above that in which it was taken on by the charity by 31 March 2027. Previous calculations had been based on original estimates dating back to 2014 and therefore a new assessment was commissioned from external surveyors In early 2022 and this was used as a baseline to work from thereafter. As we approach 2027, we have reviewed the likely spend needed on the building to fulfil our contractual obligations and the board have agreed these new provisions to be satisfactory. It should be noted that this may not exactly replicate what CPCT chooses to prioritise over the time period but does give a broad view of the main works envisaged. Between now and 2027, ongoing dialogue with Bromley Council Estate officers will be sought to ensure we are successfully working towards the same understood goals. Type Internal Decoratlons Main feature 50,603 Paints walls, ceilings etc Carpetslfloorings Window ea5inglleaks Internal New 4,554 Internal Repairs 8,337 Outside Cleaning 11,533 Jet washing etc 29,443 Window frame5/downpipes 264 Outside Decorations Outside New Outside Repairs Mechanical 109,527 Repointing/bricks/drains 23,298 £15k BMS/£9k 2nd glaz Electrical 58,806 £40k lighting 296,365 Page 32
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Crystal Palace Community Trust Limited Notes to the Financlal Statements for the Year Ended 31 March 2024 Restricted funds.. Kingswood Community Shop - Satellite project on Kingswood Estate in Southwark. Essentially grant funded to Sustain two disused shops converted into drop-in facility for local people. Kingswood Detached 2 year funding that provldes a detached youth service on the Kingswood Estate Supporting young people. Youth Projects - Including: Youth Club at ATH Twice weekly, 40 weeks a year, weekly Art Classes, plus Holiday Activities and Food schemes, Easter, Sijmmer and Winter term breaks. Age range tirca 8-16. Young Londoners Fund - Power of One pro5ect for 3 years 2020-2022 designed to support circa 1300 young local people through activities improving their wellbeing and reduce risk of marginalisation. Elders Project- Co-op and Tescos 8aES for Life and Bromley Third age funds supporting activities for older people. Funded Staff - "Wellbeing" Grant supporting staff and volunteers, wellbeing in the light of the impact of Covid restrictions. Sundry grants - Black History Month. London Festival of Architecture, James Dixon Music and Capacity Building Training. The transfer of funds in the year relates to space hire costs for 123 Anerley, the registered address of the charitable company. Page 35
Crystal Palace Community Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2024 21 Analysls of net asset5 between funds 2024 net assets between funds Unrestricted funds General Total funds at 31 March 2024 Restrlcted funds Tangible fixed assets Fixed asset investments 7,585 119,580 481,259 1196,6021 1296,3651 7,585 119,580 530,123 1196,6021 1296,3651 Current assets 48,864 Current liabilities Provisions Total net assets 115,457 48,864 164,321 2023 net assets between funds Unrestricted funds General Total funds at 31 March 2023 Restricted funds Tangible fixed assets Fixed assel investments 8,105 108,882 464,599 1194,3631 1426,9021 8,105 108,882 586,520 1194,3631 1426,9021 Current assets 121,921 Current liabilities Provisions Total net assets 139,6791 121,921 82,242 22 Related party transaction5 During the year the charity made the following related party transactions: Ballers Club Community (Raymond Bascombe, a trustee of Crystal Palace Community Trust, is also a director of Ballers Club Communltyl During the year Ballers Club Community provided £nil12023.. £11,250) of services to Crystal Palace Communitv Trust as a project partner on The Power of One Project. At the balance sheet date the amouni due to/from Ballers club Community was £Nil12023 - ENill. Page 36