REGISTERED COMPANY NUMBER: 05263412 (England and Wales) REGISTERED CHARITY NUMBER: 1111472
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
FOR
READING ROTARY COMMUNITY PROJECTS
Vale & West Chartered Accountants Victoria House 26 Queen Victoria Street Reading Berkshire RG1 1TG
READING ROTARY COMMUNITY PROJECTS
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 to 7 |
| Notes to the Financial Statements | 8 to 13 |
| Detailed Statement of Financial Activities | 14 |
READING ROTARY COMMUNITY PROJECTS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 June 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's objects as amended by Special Resolution dated 14 February 2012 are:
To relieve financial hardship by the provision of accommodation in and around Berkshire.
To develop the capacity and skills of the members of the socially and economically disadvantaged community in and around Berkshire in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society.
To advance education and to promote the mental, spiritual, moral and physical development and improvement of those undertaking community capacity building so as to develop their full capacities and so that their conditions of life may be improved.
To promote the efficiency and effectiveness of charities by the provision of accommodation for shared facilities and resources.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The Charity owns five single bedded flats at Centenary House Reading let under a twenty one year lease ending in 2026 to Launchpad Reading (formerly Reading Single Homeless Project) charity number 279859.
A joint funding project with another local registered charity to construct a building for charitable use was completed in December 2018. Reading Rotary Community Projects provided a £300,000 financial loan to the other charity, secured on the property assets of that charity.
During the year under review, the board has concentrated upon the management of existing property and awarding of grants.
FINANCIAL REVIEW
Financial position
The charity has performed in line with the Trustees expectation.
Investment policy and objectives
The charity seeks to hold its funds in an interest bearing account with a view to future investment in land and property in order to increase future earnings and enable additional investment in future projects in accordance with the objects of the charity.
FUTURE PLANS
The charity's fundraising will continue so that its objectives can be met.
Page 1
READING ROTARY COMMUNITY PROJECTS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Reading Rotary Community Projects is a company limited by guarantee governed by its Memorandum and Articles of Association dated 12 October 2004 as amended 14 February 2012. It is registered as a charity with the Charity Commission.
Appointment of trustees
The first trustees were appointed on 12 October 2004. The trustees can be appointed or removed by the governing body of the Rotary Club of Reading.
Organisation
The trustees meet half-yearly.
The board, which consists of unpaid volunteers with a variety of professional skills, has dealt with the setting up of the company and the project, administrative, compliance and regulatory issues. In addition it has monitored fund raising and publicity of its projects.
There are two executive directors and five non executive directors all appointed by the Rotary Club of Reading.
Risk management
The trustees have a risk management strategy which comprises:
-
An annual review of the risks the charity may face;
-
The establishment of systems and procedures to mitigate those risks identified in the plan;
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The implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
05263412 (England and Wales)
Registered Charity number
1111472
Registered office
7 South Drive Sonning RG4 6GB
Trustees
P J Webb Chairman Executive J R L Brunnen Executive Dr A P Cowling Non-Executive A M Andrews Non-Executive Rev A Haine Non-Executive W H Montague Non-Executive S Creffield Non-Executive (resigned 30.6.22) R Butler Non-Executive (appointed 1.7.22) H A Castelijn Non-Executive (appointed 1.7.22)
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READING ROTARY COMMUNITY PROJECTS
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022
REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary
Dr A P Cowling
Independent Examiner
Vale & West Chartered Accountants Victoria House 26 Queen Victoria Street Reading Berkshire RG1 1TG
Solicitors
Dexter Montague LLP 105 Oxford Road Reading RG1 7UD
Bankers
Svenska Handelsbanken AB Apex Plaza Forbury Road Reading RG1 1AX
Approved by order of the board of trustees on 4 October 2022 and signed on its behalf by:
Dr A P Cowling - Trustee
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF READING ROTARY COMMUNITY PROJECTS
Independent examiner's report to the trustees of Reading Rotary Community Projects ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 June 2022.
Responsibilities and basis of report
As the charity's 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').
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 charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
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:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
Miss K M Cutts FCA Vale & West Chartered Accountants Victoria House 26 Queen Victoria Street Reading Berkshire RG1 1TG
4 October 2022
Page 4
READING ROTARY COMMUNITY PROJECTS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022
| 30.6.22 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Investment income 2 55,889 EXPENDITURE ON Charitable activities Donations 6,798 Other costs of charitable activities 5,085 Governance costs 1,355 Total 13,238 NET INCOME 42,651 RECONCILIATION OF FUNDS Total funds brought forward 692,976 TOTAL FUNDS CARRIED FORWARD 735,627 |
30.6.21 Total funds £ 55,500 |
|---|---|
| 7,329 5,590 1,709 |
|
| 14,628 | |
| 40,872 652,104 |
|
| 692,976 |
The notes form part of these financial statements
Page 5
READING ROTARY COMMUNITY PROJECTS
BALANCE SHEET 30 JUNE 2022
| Notes FIXED ASSETS Investments Investments 5 Investment property 6 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 7 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 8 NET ASSETS FUNDS 11 Unrestricted funds TOTAL FUNDS |
30.6.22 Unrestricted fund £ 300,000 550,000 850,000 36,387 (28,707) 7,680 857,680 (122,053) 735,627 735,627 735,627 |
30.6.21 Total funds £ 300,000 550,000 850,000 28,946 (30,613) (1,667) 848,333 (155,357) 692,976 692,976 692,976 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 6
continued...
READING ROTARY COMMUNITY PROJECTS
BALANCE SHEET - continued 30 JUNE 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 4 October 2022 and were signed on its behalf by:
J R L Brunnen - Trustee
The notes form part of these financial statements
Page 7
READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Investment property
The investment property is included at open market value and no depreciation is provided in respect of freehold property. This represents a departure from the requirements of the Companies Act 2006. The trustees are of the opinion that it does not prejudice the true and fair view of the financial statements.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
continued...
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READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022
2. INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| Rents received Deposit account interest |
30.6.22 £ 55,889 - 55,889 |
30.6.21 £ 55,497 3 |
| 55,500 |
3. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 June 2022 nor for the year ended 30 June 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 June 2022 nor for the year ended 30 June 2021.
4. CHARITABLE ACTIVITIES
Grants paid
| 30.6.22 | 30.6.21 | |
|---|---|---|
| £ | £ | |
| Benevolent Fund of the Rotary Club of Reading | 300 | 3,244 |
| Launchpad Reading | 2,000 | |
| Dogs for Good | 250 | |
| Faith Christian Group | 1,000 | |
| Red Balloon Learner Centre | 835 | |
| Assisting Berkshire Children to Read | 678 | |
| Laurel Park Football Club | 350 | |
| Oxford Road Scout Group | 490 | |
| Parents and Children Together (PACT) | 1,000 | |
| Reading Mencap | 1,000 | |
| Reading Refugee Support Group | 1,000 | |
| Spotlight UK | 1,480 | |
| The Progress Theatre | 500 | |
| Total Grants Paid | 6,798 | 7,329 |
continued...
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READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022
5. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | ||
|---|---|---|
| Loans At 1 July 2021 and 30 June 2022 There were no investment assets outside the UK. |
30.6.22 £ 300,000 |
30.6.21 £ 300,000 |
| Other loans £ 300,000 |
||
Investment Loan
A loan of £300,000 was made to another charity in 2018 and is secured on property assets of the other charity. The loan has no fixed repayment date but must be repaid on prior sale of the secured property or may be repaid at any time after 24 November 2022.
6. INVESTMENT PROPERTY
| INVESTMENT PROPERTY | |
|---|---|
| FAIR VALUE At 1 July 2021 and 30 June 2022 NET BOOK VALUE At 30 June 2022 At 30 June 2021 |
£ 550,000 |
| 550,000 | |
| 550,000 |
The investment property, Centenary House, was valued on an open market basis on 11 January 2018 by Dunster & Morton LLP, Chartered Surveyors. In the opinion of the Trustees, there has been no change in the value of this property between the date of the professional valuation and 30 June 2022.
continued...
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READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022
| 7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 30.6.22 £ Bank loans and overdrafts (see note 9) 18,929 Bank loan interest 1,091 Accruals and deferred income 8,687 28,707 8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 30.6.22 £ Bank loans (see note 9) 122,053 9. LOANS An analysis of the maturity of loans is given below: 30.6.22 £ Amounts falling due within one year on demand: Bank loans 18,929 Amounts falling between one and two years: Bank loans - 1-2 years 18,929 Amounts falling due between two and five years: Bank loans - 2-5 years 56,787 Amounts falling due in more than five years: Repayable by instalments: Bank loans - more than 5 years 46,337 10. SECURED DEBTS The following secured debts are included within creditors: 30.6.22 £ Bank loans 140,982 |
30.6.21 £ 21,429 985 8,199 30,613 30.6.21 £ 155,357 |
30.6.21 £ 21,429 985 8,199 |
|---|---|---|
| 30,613 | ||
| 30.6.21 £ 21,429 21,429 64,286 69,642 30.6.21 £ 176,786 |
30.6.21 £ 21,429 |
|
| 21,429 | ||
| 64,286 |
The bank loan is secured by a first legal mortgage on the investment property and its associated assets and by a debenture on all the assets and undertakings of the company.
continued...
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READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022
11. MOVEMENT IN FUNDS
| At 1.7.21 £ Unrestricted funds General fund 692,976 TOTAL FUNDS 692,976 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 55,889 TOTAL FUNDS 55,889 Comparatives for movement in funds At 1.7.20 £ Unrestricted funds General fund 652,104 TOTAL FUNDS 652,104 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 55,500 TOTAL FUNDS 55,500 |
Net movement At in funds 30.6.22 £ £ 42,651 735,627 42,651 735,627 Resources Movement expended in funds £ £ (13,238) 42,651 (13,238) 42,651 Net movement At in funds 30.6.21 £ £ 40,872 692,976 40,872 692,976 Resources Movement expended in funds £ £ (14,628) 40,872 (14,628) 40,872 |
|---|---|
continued...
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READING ROTARY COMMUNITY PROJECTS
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 JUNE 2022
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 June 2022.
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READING ROTARY COMMUNITY PROJECTS
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022
| 30.6.22 | 30.6.21 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Investment income | ||
| Rents received | 55,889 | 55,497 |
| Deposit account interest | - | 3 |
| 55,889 | 55,500 | |
| Total incoming resources | 55,889 | 55,500 |
| EXPENDITURE | ||
| Charitable activities | ||
| Bank charges & loan interest | 5,025 | 5,590 |
| Grants to institutions | 6,798 | 7,329 |
| 11,823 | 12,919 | |
| Support costs | ||
| Finance | ||
| Insurance | 67 | 69 |
| Bank charges | 60 | - |
| 127 | 69 | |
| Governance costs | ||
| Accountancy fees | 1,288 | 1,640 |
| Total resources expended | 13,238 | 14,628 |
| Net income | 42,651 | 40,872 |
This page does not form part of the statutory financial statements
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