Charity number: 1111898
The Frontline Club Charitable Trust
Trustees' Report and Financial Statements
for the year ended FOR THE YEAR ENDED 31 MARCH 2021
With offices in Bishop’s Stortford City of London Cambridge Ely Mayfair Norwich Sawston
THE FRONTLINE CLUB CHARITABLE TRUST
TRUST INFORMATION
| TRUST INFORMATION | |
|---|---|
| at the date of this report | |
| Trustees | R Sambrook |
| F A Carmichael (resigned 31 January 2022) | |
| S Phillips | |
| P Conroy | |
| W R N Clayton (appointed 21 June 2021, resigned 7 July 2023) | |
| N B Dahrendorf (appointed 12 December 2021) | |
| Honorary Chief Excecutive | H V L Smith |
| Chief Operating Officer | M Armani |
| Charity Commission reg number | 1111898 |
| Headquarters and Registered Office | 13 Norfolk Place |
| London | |
| W2 1QJ | |
| Solicitors | Duane Morris |
| London | |
| EC2Y 9AW | |
| Independent Examiners | Price Bailey LLP |
| Chartered Accountants | |
| Norwich | |
| NR7 0HR | |
| Bankers | HSBC |
| Praed Street | |
| London | |
| W2 1NJ |
THE FRONTLINE CLUB CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 5 |
| Independent Examiner's report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Accounts | 9 - 15 |
THE FRONTLINE CLUB CHARITABLE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The trustees submit their annual report and the financial statements of The Frontline Club Charitable Trust ('FCCT') for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The Charity is constituted by a Trust Deed dated 28th October 2005, and is a UK registered charity, number 1111898.
The registered office is 13 Norfolk Place, London, W2 1QJ
Method of Appointment and Election of Trustees
Potential new trustees are interviewed by the board of trustees and are selected with a view to ensuring an appropriate mix of skills and expertise.
The trustees who served during the period were R Sambrook, F Carmichael, S Phillips and P Conroy
Policies adopted for the Induction and Training of Trustees
All trustees are issued with the Charity Commission booklet setting out the duties and responsibilities of trustees. New trustees also receive the latest financial statements and management accounts, and other briefing documentation explaining the organisational structure and practices and are invited to attend the offices and events programme at any time.
Risk Management
The trustees regularly monitor the major risks to which the trust is exposed, in particular those related to the operations and finances of the trust and are satisfied that systems are in place to mitigate exposure to these risks.
The trustees consider the major risk to the Charity to be the continuing impact of the Covid 19 pandemic, which reduced the charity’s membership donation income, and the impact of inflation on our ability to rebuild our supporter base.
OBJECTIVES AND ACTIVITIES
Public Benefit Statement
The charity benefits the public and the global community by promoting independent and responsible journalism and media coverage throughout the world, through education and forums for journalists, decision-makers, educators and anyone interested in matters of public concern. This is achieved through the charity's year-round programme of public events, training courses, international projects and website information. More details of all of these can be found on the charity's website www.frontlineclub.com
Aims and Objectives
The Frontline Club Charitable Trust exists to advance, for the benefit of the public, education of journalists, media decision-makers, educators and other interested persons in matters of public concern, such as equality, diversity, accountability and human rights, including the right to freedom of expression.
1
THE FRONTLINE CLUB CHARITABLE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Frontline Club Charitable Trust aims to:
-
Promote free, accurate and responsible media coverage anywhere in the world
-
Train in the safety and health of journalists and other personnel exposed to danger as a result of media activities in areas of conflict
Activities for Achieving Objectives
To achieve it's objectives the trust provides a forum for conferences, courses, debates, discussions, events, seminars and exhibitions; promotes writing, films and recordings; undertakes research and promotes the provision of information, advice, guidance and counselling.
Grant making policy
The Trust does not currently undertake the making of grants from its own resources.
ACHIEVEMENTS AND PERFORMANCE
Review of Activities
Over the 2020-21 year, The Frontline Club’s membership donations reduced by approximately 22% under pandemic pressures as the charity was unable to provide previous activities and the Charity’s community of international freelancers struggled to maintain pre-pandemic income streams. This was offset by the receipt of some government covid grants, including from the CJRS (furlough) scheme.
The Charity’s popular public events programme of discussions and screenings was moved online and maintained, albeit at a more modest level of two events each month rather than that number weekly.
As an example of our events, on the 11 March 2021 the Frontline Club Charitable Trust hosted an event moderated by Gabriel Gatehouse, BBC Newsnight’s International Editor, discussing the state of international protest and civil right movements.
On 26 November 2020 we held another popular event called “The Rise of Populism” with
Jon Lee Anderson.
On 30 July 2020 we continued our “Kleptoscope” series with Oliver Bullough titled “What are Trump and Covid doing to the fight against corruption”.
On 4 June 2020 Anthony Loyd of The Times spoke on a panel about Afghanistan, the Taliban and the planned draw-down of US troops.
The Frontline Freelance Register (FFR) has continued to support the international community of conflict freelancers and remains the only international body to represent them.
FINANCIAL REVIEW
Result for the year
A surplus for the year of £118,904 (2020: deficit £60,849) arose on the general unrestricted fund giving a balance of £114,823 (2020: deficit £4,081) to carry forward at the year end.
2
THE FRONTLINE CLUB CHARITABLE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
A surplus for the year of £84 (2020: £5,165) arose on the restricted fund resulting in a balance on the restricted fund at the year end of £37,696 (2020: £37,612).The detailed income and expenditure figures are set out in the financial statements which follow this report.
Investment policy and performance
Any surplus funds are placed into a deposit account with the Trust's bankers. Funds need to be readily available and so they are subject to low interest rates. The Trustees do not consider that more longer term, higher yield investments are realistic at this time.
Key management personnel remuneration
The Trustees consider the board of trustees, along with Mr H Vaughan L Smith and Mr Mario Armani, as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. No remuneration or expenses were paid to Mr H V L Smith or Mr M Armani. Details of trustee expenses and related party transactions are disclosed in note 16 to the accounts.
Reserves policy
Unrestricted reserves are needed:
-
to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice, and
-
to cover administration, fund-raising and support costs, without which the trust could not function.
The trustees consider it prudent that unrestricted reserves should be sufficient to cover two to three months' expenditure on the forum events programme, administration, fund raising and support costs, which is approximately £30,000 per month.
The level of reserves is monitored and reviewed by the Trustees, who have determined that it should be a strategic aim of the charity to improve this in order to give a greater margin of comfort in the charity's ability to withstand the unexpected.
The Trustees have considered the Charity to be a going concern and believe that the Trust should make a small surplus in 2023/24 and onwards. The Trustees have put in place efficiencies to reduce ongoing costs.
Principal Risks and Uncertainties
The main income for the Charity currently comes from membership donations and these are beginning to recover after having eroded because of the pandemic.
The Charity’s former partner organisation, The Frontline Club Limited, ceased to trade in December 2020, and the trustees reviewed all it’s own operations in early 2021.
The charity has reduced its costs to counter the impact of its reduced membership income and is ensuring that the charity has continued use into the future of all relevant assets and utilities which were previously shared with The Frontline Club Limited.
The trustees have drawn up and implemented contingency plans to replace the hospitality services that the charity depends upon in order to be able to re-open fully following the pandemic.
3
THE FRONTLINE CLUB CHARITABLE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
Going Concern
The Trustees have considered the going concern basis of preparation of the financial statements noting the fall in external funding, liquidity or cash flow problems and the need for additional funding:
The Charity has been rebuilding its activities after the problems brought about by the pandemic, lockdowns and post-covid periods. It has used reserves, the government-backed Bounceback Loan and Covid recovery grants to assist, but with the political volatility in the UK and internationally, and the energy price crisis, rising wages and inflation, and hospitality staff shortage, a full recovery continues to be challenging. Since the year end the charity has incurred losses in running its operations and has negative unrestricted funds of 118,083 as at 31 March 2023. From 1 April 2023 to 25 October 2023, the charity has since made a small surplus of £18,592.
The Charity has had to contend with increased energy costs as it has worked to rebuild its activities, and those activities are now returning to levels that they were before lockdown. To manage those increased costs, which have recently subsided, the charity surrendered the lease on one of its offices, and has made other cost savings to stabilise its finances. Further restructuring of operations is in process to bring down overheads and achieve financial security. The charity's hospitality subsidiary, which commenced trading in 2022, has ceased to trade and these services are now provided by a third party, with no risk to the charity.
The trustees and management of the Charity continue to monitor performance closely and to manage on a daily basis since the year end 31 March 2021. During 2023, progress has been made with fresh recruitment of new members, with a successful reinstatement of 'in-person' events and the provision of life-saving training for journalists in Ukraine. The Charity has managed to train 287 Ukrainian journalists in battlefield first aid, providing each of them with a bespoke media first aid kit. This programme completed its task and has now closed.
The Charity’s growing membership is committed to it's values and objectives. The Settlor and landlord of the Charity, also it's main creditor, is also committed to the long-term survival of the Charity, but unfortunately he has been going through a divorce since early 2020, and the charity was pulled into some ancillary litigation relating to employment and trademarks as a result of the divorce which caused the charity to incur some legal costs and poor publicity. It is expected that this matter will be finalised in late autumn 2023 and no financial liability to the charity will arise from it. Because of this, we are confident that the Charity has a long-term future.
With the continued support of members and the hard work of the staff, The Frontline Club Charitable Trust will continue to provide its essential services to the journalistic community for the foreseeable future. The Trustees are seeking to obtain donations and grants as available, and they will adapt operations in the light of ongoing financial circumstances, to build a strong basis for the long-term future of the charity. At the date of these accounts being approved, November 2023, the company has sufficient cash to meet liabilities as they fall due for a period not limited to 12 months from the date of approval of these financial statements. However, due to the financial position of the charity at the year end, the Trustees do have a material uncertainty over the future of the charity in being able to secure adequate future income and resolve its outstanding litigation issues, these create a material uncertainty related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. At the date of approving these financial statements however, the Trustees are comfortable that the Charity will receive the required funding. On this basis the Trustees believe that the accounts should be prepared on a going concern basis.
4
THE FRONTLINE CLUB CHARITABLE TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
Litigation
The charity has been engaged in litigation caused by the attempted use of the 'Frontline' name and brand by a third party, which cost the charity approximately £35,000 in legal fees.
The litigation has currently ceased, and it is hoped that this matter will be settled satisfactorily in the near future, The Charity’s objective is to ensure that its brand ownership is legally established and registered.
PLANS FOR THE FUTURE
The Charity will ensure that a good quality hospitality service will be available at its premises at 13 Norfolk Place in Paddington as we operate post-pandemic. This was provided from September 2021 through our wholly-owned trading subsidiary, in accordance with charity law and good practice. It has subsequently been replaced by a new provider at no risk to the charity.
After the pandemic the Charity is rebuilding its public events programme and continues to encourage third parties to use the building to support its costs.
The Charity will continue to develop its work supporting international conflict freelancers and freelance journalists local to the stories that they work on. It will continue to seek another grant to extend FFR and launch more local chapters in countries where journalism is being severely tested. FFR will continue to investigate alternative sources of revenue for independent journalists and photographers.
TRUSTEES' RESPONSIBILITIES
The trustees 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).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principals of the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the trustees on 17 Nov 2023 and signed on its behalf, by
R Sambrook The Frontline Club Charitable Trust (Nov Chair of the Trustees17, 2023, 4:43pm)
5
THE FRONTLINE CLUB CHARITABLE TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE FRONTLINE CLUB CHARITABLE TRUST
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 7 to 15.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement – matter of concern identified
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants of England and Wales (ICAEW), which is one of the listed bodies.
Material uncertainty related to going concern
I have completed my examination. I have identified a matter of concern in my report because, as indicated in accounting policy note 2.1b, the charity has incurred losses since the year end and has negative unrestricted funds of £118,083 as at 31 March 2023. From 1 April 2023 to 25 October 2023, the charity has since made a small surplus of £18,592. As stated in note 2.1b, the charity indicates that the energy price crisis, rising wages and inflation have caused significant losses and negative unrestricted funds which indicate that a material uncertainty exists that cast significant doubt on the charity to continue as a going concern.
I confirm that no other matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no other 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.
Helena Wilkinson FCA DChA
Price Bailey LLP Chartered Accountants
Anglia House, 6 Central Avenue St Andrews Business Park Thorpe St Andrew Norwich NR7 0HR
Date: 17 Nov 2023
6
The Frontline Club Charitable Trust
Statement of Financial Activities for the year ended 31 March 2021
| Note INCOME Donations and legacies 4 Investment income 5 Income from charitable activities 6 Other income (COVID related grants) TOTAL INCOME EXPENDITURE Charitable activities 7 TOTAL EXPENDITURE MOVEMENT IN TOTAL FUNDS FOR THE YEAR Net income/(expenditure) Transfers between funds 14 Total funds brought forward Prior year adjustment TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds 2021 £ 210,577 8,007 7,982 69,184 295,750 176,846 176,846 118,904 - (4,081) 114,823 |
Restricted funds 2021 £ - - 90 - 90 6 6 84 - 37,612 37,696 |
Total funds 2021 £ 210,577 8,007 8,072 69,184 295,840 176,852 176,852 118,988 - 33,531 152,519 |
Total funds 2020 £ 248,758 24,024 69,327 2,411 |
|---|---|---|---|---|
| 344,520 | ||||
| 400,204 | ||||
| 400,204 | ||||
| (55,684) - 89,215 - |
||||
| 33,531 |
Total income and expenditure arises from continuing operations of the charity
The notes on pages 9 to 15 form part of these accounts.
7
The Frontline Club Charitable Trust Balance Sheet as at 31 March 2021
| Notes | 2021 | 2020 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| Fixed assets | |||||
| Tangible assets | 10 | 20,985 | 30,962 | ||
| 20,985 | 30,962 | ||||
| Current assets | |||||
| Debtors | 11 | 75,428 | 63,135 | ||
| Cash at bank and in hand | 145,709 | 8,676 | |||
| 221,137 | 71,811 | ||||
| Creditors: amounts falling due within one | |||||
| year | 12 | (39,603) | (69,242) | ||
| Net current (liabilities)/assets | 181,534 | 2,569 | |||
| Bounceback loan due after more than one | |||||
| year | (50,000) | - | |||
| Total assets less current liabilities | 152,519 | 33,531 | |||
| Net assets | 152,519 | 33,531 | |||
| Funds | |||||
| Unrestricted funds | 14 | 114,823 | (4,081) | ||
| Restricted funds | 14 | 37,696 | 37,612 | ||
| 152,519 | 33,531 |
These financial statements were approved by the Board of Trustees on 25 March 2022 and signed on it's behalf 17 Nov 2023 by:
……………………………………..
R SambrookThe Frontline Club Charitable Trust (Nov on behalf of the Trustees17, 2023, 4:43pm)
The notes on pages 9 to 15 form part of these accounts.
8
The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
1 General Information
The Frontline Club Charitable Trust is an unincorporated not-for-profit organisation. The registered office is 13 Norfolk Place, London W2 1QJ, and the charitable trust is registered in the UK. The financial statements are presented in pounds sterling, which is the functional currency of the trust, and are rounded to the nearest pound.
2 Accounting policies
2.1a Basis of Preparation of Financial Statements
The accounts (Financial Statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 1A (reduced disclosure)) and the Charities Act 2011.
The financial statements have been prepared to give us a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Trust constitutes a public benefit entity as defined by FRS 102.
2.1b Going concern
The Trustees have considered the going concern basis of preparation of the financial statements noting the fall in external funding, liquidity or cash flow problems and the need for additional funding:
The Charity has been rebuilding its activities after the problems brought about by the pandemic, lockdowns and postcovid periods. It has used reserves, the government-backed Bounceback Loan and Covid recovery grants to assist, but with the political volatility in the UK and internationally, and the energy price crisis, rising wages and inflation, and hospitality staff shortage, a full recovery continues to be challenging. Since the year end the charity has incurred losses in running its operations and has negative unrestricted funds of 118,083 as at 31 March 2023. From 1 April 2023 to 25 October 2023, the charity has since made a small surplus of £18,592.
The Charity has had to contend with increased energy costs as it has worked to rebuild its activities, and those activities are now returning to levels that they were before lockdown. To manage those increased costs, which have recently subsided, the charity surrendered the lease on one of its offices, and has made other cost savings to stabilise its finances. Further restructuring of operations is in process to bring down overheads and achieve financial security. The charity's hospitality subsidiary, which commenced trading in 2022, has ceased to trade and these services are now provided by a third party, with no risk to the charity.
The trustees and management of the Charity continue to monitor performance closely and to manage on a daily basis since the year end 31 March 2021. During 2023, progress has been made with fresh recruitment of new members, with a successful reinstatement of 'in-person' events and the provision of life-saving training for journalists in Ukraine. The Charity has managed to train 287 Ukrainian journalists in battlefield first aid, providing each of them with a bespoke media first aid kit. This programme completed its task and has now closed.
The Charity’s growing membership is committed to it's values and objectives. The Settlor and landlord of the Charity, also it's main creditor, is also committed to the long-term survival of the Charity, but unfortunately he has been going through a divorce since early 2020, and the charity was pulled into some ancillary litigation relating to employment and trademarks as a result of the divorce which caused the charity to incur some legal costs and poor publicity. It is expected that this matter will be finalised in late autumn 2023 and no financial liability to the charity will arise from it. Because of this, we are confident that the Charity has a long-term future.
With the continued support of members and the hard work of the staff, The Frontline Club Charitable Trust will continue to provide its essential services to the journalistic community for the foreseeable future. The Trustees are seeking to obtain donations and grants as available, and they will adapt operations in the light of ongoing financial circumstances, to build a strong basis for the long-term future of the charity. At the date of these accounts being approved, November 2023, the company has sufficient cash to meet liabilities as they fall due for a period not limited to 12 months from the date of approval of these financial statements. However, due to the financial position of the charity at the year end, the Trustees do have a material uncertainty over the future of the charity in being able to secure adequate future income and resolve its outstanding litigation issues, these create a material uncertainty related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. At the date of approving these financial statements however, the Trustees are comfortable that the Charity will receive the required funding. On this basis the Trustees believe that the accounts should be prepared on a going concern basis.
9
The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
2 Accounting policies (continued)
2.2 Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and adminstering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2.3 Income Recognition
All income is included in the Statement of Financial Activities when the charity has earned entitlement to the income, it is probably that the income will be received and the amount of the income receivable can be measured reliably.
Donations are recognised when the Trust has been notified in writing of both the amount receivable and the settlement date or when the donation is received if later.
Event income is recognised when received.
Grants are recognised in the Statement of Financial Activities when the charity is entitled to the funds, the amount can be reasonably and accurately quantified and it is probable the funds will be received. To the extent that their purpose is restricted they are included as restricted funds or endowment funds.
Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
2.4 Expenditure
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. Single or multi-year grants are accounted for when either the recipient has a resonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Trust.
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
2.5 Operating Leases
Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis
2.6 Financial Instruments
The Trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the trust and their measurement basis are as follows:
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 11. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at face value.
Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised costs as detailed in note 12. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services.
2.7 Allocation of support and governance costs
Governance costs include the external examination, book-keeping some administration costs, legal fees for advice to the trustees and the costs of trustees meetings.
Support costs have been allocated between charitable expenditure and other support costs as detailed in note 8.
Governance costs are allocated 100% to charitable expenditure.
2.8 Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
Fixtures and fittings - 15% straight line Equipment - 20% reducing balance Website - 33% straight line
10
The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
2 Accounting policies (continued)
2.9 Debtors
Debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Prepayments are valued at the amount prepaid.
2.10 Cash and cash equivalents
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.11 Creditors
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event and the amount can be measured reliably.
2.12 Pensions
Employees of the charity are entitled to join a defined contribution pension scheme. The charity contribution is restricted to the contributions disclosed in note 9. Outstanding charity contributions at the year end totalled £85 (2020: £104). The costs of the defined contribution scheme are charged to unrestricted funds. The Trust has chosen to use the NEST pension scheme as its fund provider.
2.13 Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates 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 depreciation.
There are no areas of judgement.
3 Net Income/(Expenditure)
| This is stated after charging: Depreciation of tangible fixed assets: - owned by the charity Operating lease rentals Independent Examination fees 4 Donations and legacies Unrestricted funds 2021 £ Donations 8,895 Members donations 177,665 Gift Aid 24,017 210,577 5 Investment income Unrestricted funds 2021 £ Interest received 7 Rent received 8,000 8,007 6 Income from Charitable Activities Unrestricted funds 2021 £ Frontline Freelance Register 2,636 Frontline Fund - Entry fees to Forum/online events 5,346 7,982 |
Restricted funds 2021 £ - - - - Restricted funds 2021 £ - - - Restricted funds 2021 £ - 90 - 90 |
Total Unrestricted funds funds 2021 2020 £ £ 8,895 550 177,665 220,650 24,017 27,558 210,577 248,758 Total Unrestricted funds funds 2021 2020 £ £ 7 24 8,000 24,000 8,007 24,024 Total Unrestricted funds funds 2021 2020 £ £ 2,636 2,511 90 - 5,346 57,308 8,072 59,819 |
2021 £ 9,983 82,750 3,945 Restricted funds 2020 £ - - - - Restricted funds 2020 £ - - - Restricted funds 2020 £ 9,508 - 9,508 |
2020 £ 4,366 114,580 3,750 Total funds 2020 £ 550 220,650 27,558 |
|---|---|---|---|---|
| 248,758 | ||||
| Total funds 2020 £ 24 24,000 |
||||
| 24,024 | ||||
| Total funds 2020 £ 2,511 9,508 57,308 |
||||
| 69,327 |
11
The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
7 Charitable Activities: Expenditure
| Unrestricted funds 2021 £ - Forum/online events and supporter costs 164,615 Governance costs (note 8) 9,245 Frontline Freelance Register 2,986 Frontline Fund - 176,846 8 Governance Costs Unrestricted funds 2021 £ Independent Examination and accountancy fee 6,745 Bookkeeping & administration costs 2,500 9,245 |
Restricted funds 2021 £ - - - - 6 6 Restricted funds 2021 £ - - - |
Total Unrestricted funds funds 2021 2020 £ £ - - 164,615 342,042 9,245 13,734 2,986 40,085 6 - 176,852 395,861 Total Unrestricted funds funds 2021 2020 £ £ 6,745 5,670 2,500 8,064 9,245 13,734 |
Restricted funds 2020 £ - - - - 4,343 4,343 Restricted funds 2020 £ - - - |
Total funds 2020 £ - 342,042 13,734 40,085 4,343 |
|---|---|---|---|---|
| 400,204 | ||||
| Total funds 2020 £ 5,670 8,064 |
||||
| 13,734 |
Allocation of governance and support costs
Support costs, property support costs and depreciation are allocated 100% to charitable activities.
Governance costs consist of Independent Examination, accountancy, book-keeping and administration costs, allocated 100% to charitable expenditure.
9 Staff costs
| Analysis of staff costs and remuneration of key management personnel Wages and salaries Social security costs Pension costs The average head count of employees during the year were: |
2021 £ 34,802 256 1,074 36,132 2 |
2020 £ 79,437 4,329 1,124 |
|---|---|---|
| 84,890 | ||
| 4 |
No employees received employer benefits exceeding £60,000 (2020: none).
The Trust considers its key management personnel to comprise the trustees, Mr Smith and Mr Armani. The total employment benefits including employer pension contributions of the key management personnel were £nil (2020: £nil).
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The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
10 Fixed Assets
| Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 11 Debtors Trade debtors VAT Other debtors Prepayments and accrued income 12 Creditors: amounts falling due within one Trade creditors Other taxes and social security costs Other creditors Accruals and deferred income Deferred income Deferred income at 1 April 2020 Amounts deferred during the year Amounts released from previous years Deferred income at 31 March 2021 |
Website £ 76,623 - 76,623 55,787 6,946 62,733 13,890 20,836 year |
Fixtures and fittings £ 12,719 - 12,719 11,420 649 12,069 650 1,299 |
Equipment £ 54,731 - 54,731 45,904 2,382 48,286 6,445 8,827 2021 £ 7,200 6,001 11,000 51,227 75,428 2021 £ 2,505 134 29,614 7,350 39,603 2021 £ 548 - (548) - |
Total £ 144,073 - 144,073 |
|---|---|---|---|---|
| 113,111 9,977 123,088 |
||||
| 20,985 | ||||
| 30,962 | ||||
| 2020 £ - 7,158 11,000 44,977 63,135 |
||||
| 2020 £ 18,957 2,951 38,087 9,247 69,242 |
||||
| 2020 £ 2,770 548 (2,770) 548 |
At the balance sheet date, the amount included in deferred income was in relation to deferred forum entry fees.
13 Operating Lease Commitments
| Operating leases expiring: Within one year Between one to five years Later than five years |
2021 Land and buildings £ 12,000 133,000 - 145,000 |
2020 Land and buildings £ 50,250 56,000 - |
|---|---|---|
| 106,250 |
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The Frontline Club Charitable Trust Notes to the Accounts for the year ended 31 March 2021
14 Summary of Funds
| Summary of Funds | |||||
|---|---|---|---|---|---|
| Unrestricted funds Restricted funds Total funds Unrestricted funds Restricted funds Total funds |
2021 Brought forward £ (4,081) 37,612 33,531 2020 Brought forward £ 56,768 32,447 89,215 |
2021 Income £ 295,750 90 295,840 2020 Income £ 335,012 9,508 344,520 |
2021 Expenditure £ (176,846) (6) (176,852) 2020 Expenditure £ (395,861) (4,343) (400,204) |
2021 Transfers £ - - - 2020 Transfers £ - |
2021 Carried forward £ 114,823 37,696 |
| 152,519 | |||||
| 2020 Carried forward £ (4,081) 37,612 |
|||||
| 33,531 |
The General unrestricted fund includes income and expenditure from services provided by the Frontline Club Limited in order to enable the Forum Events Programme run by the Charity to operate effectively.
The Frontline Freelance Register (FFR) fund is a representative body open to all freelance journalists working in conflict or foreign reporting.
Restricted funds
| Frontline Fund Total funds Frontline Fund Total funds |
Brought forward 2021 £ 37,612 37,612 Brought forward 2020 £ 32,447 32,447 |
Income 2021 £ 90 90 Income 2020 £ 9,508 9,508 |
Expenditure 2021 £ (6) (6) Expenditure 2020 £ (4,343) (4,343) |
Transfers 2021 £ - - Transfers 2020 £ - - |
Carried forward 2021 £ 37,696 |
|---|---|---|---|---|---|
| 37,696 | |||||
| Carried forward 2020 £ 37,612 |
|||||
| 37,612 |
The Frontline Fund (formerly named the Fixers Fund) supports families of 'fixers' (nationals who assist foreign journalists in obtaining information and 'fixing' meetings etc) who have been killed or died in the process of their activities. US$10,000 was distributed by the fund in 2021 after the balance sheet date.
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The Frontline Club Charitable Trust Notes to the Accounts
for the year ended 31 March 2021
15 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Long term liabilities Tangible fixed assets Current assets Current liabilities Long term liabilities |
2021 Unrestricted £ 20,985 183,441 (39,603) (50,000) 114,823 2020 Unrestricted £ 30,962 34,199 (69,242) - (4,081) |
2021 Restricted £ - 37,696 - - 37,696 2020 Restricted £ - 37,612 - - 37,612 |
2021 Total £ 20,985 221,137 (39,603) (50,000) 152,519 |
|---|---|---|---|
| 2020 Total £ 30,962 71,811 (69,242) - 33,531 |
16 Related Party Transactions
Key Management Personnel
During the year the Honorary Chief Executive of the Charity was Vaughan Smith, who was also the original settlor of FCCT.
He was also the sole shareholder of Frontline Television News Ltd, and owned a sole trader property letting business trading as Ellingham Land. Mr Smith, his ex-wife Mrs Pranvera Shema Lockhart-Smith and Mr Mario Armani were joint owners of The Frontline Club Ltd. The Frontline Club Ltd ceased to trade in 2020-1 as a result of the Covid-19 pandemic. Vaughan Smith and Mario Armani are considered Key Management Personnel of the Trust. During the year The Frontline Club Ltd recharged costs and services to the Trust of £nil (2020: £130,404). At the year end The Frontline Club Ltd owed the Trust £310 (2020: Trust owed The Frontline Club Ltd £37,733).
During the year Frontline Television News Ltd recharged costs and services to the Trust of £3,000 (2020: £6,000) for computer rental. At the year end the Trust owed Frontline Television News Ltd £nil (2020: £nil).
During the year Ellingham Land charged rent to the Trust of £35,750 (2020: £66,000). At the year end the Trust owed Ellingham Land £6,600 (2020: £nil)
Trustees' expenses and remuneration
The trustees all freely give their time and expertise without any form of remuneration. No subsistence costs were paid on behalf of Trustees (2020:£ nil).
During the year Vaughan Smith claimed reimbursement of £4,176 (2020: £1,341) for equipment and new membership software purchased on the Trust's behalf.
No other related party transactions took place in the year (2020: none)
17 Post balance sheet events
The charity was allowed to re-open 'in person' events in June 2021 after Covid lockdown restrictive measures were ended by HM Government, and the trustees decided to provide hospitality at 31 Norfolk Place directly, under the trading name of Norfolk Place Cafe.
The uptake by the Membership of the hospitality offering was such that the sales turnover exceeded the allowed charities non-primary purpose trading limit by the end of August 2021, and on 13 September 2021 the charity transferred its hospitality services to a fully-owned trading subsidiary company, Norfolk Place Restaurant Ltd, which commenced trading on that day, and continued to provide hospitality at The Frontline Club to members, and guests at events, in the ground floor cafe, first floor clubroom and the forum. Due to ongoing homeworking, followed in 2022-3 by increased energy and other costs, strikes by transport workers in London, and rising inflation which continued into 2023, the company made significant losses and ceased to trade on 5 May 2023. During the period from June to September 2021, the charity covered the energy costs of the trading subsidiary such that the charity had negative reserves of 82,123 on 31 March 2023
The accounts of Norfolk Place Restaurant Ltd will be reported in the charity's next financial statements.
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