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2022-03-31-accounts

THE NEW CROSS GATE TRUST

(A Company Limited by Guarantee)

Company No. 05862134 Charity No. 1118010

Annual Report and Financial Statements For the year ended

31 March 2022

The New Cross Gate Trust

Annual Report and financial statements

For the year ended 31 March 2022

Contents
Page
Reference and administrative information 1
Trustees’ annual report 2
Independent auditors' report 15
Statement of financial activities 19
(incorporating an income and expenditure account)
Balance sheet 20
Notes to the financial statements 21

The New Cross Gate Trust Reference and administrative information details of the charity For the year ended 31 March 2022

Name of charity: The New Cross Gate Trust The New Cross Gate Trust
(also referred to as NXG Trust)
Charity Registration number: 1118010
Company Number: 05862134
Address of the office: Besson Street Community Garden,
Besson Street, New Cross, SE14 5AE.
Charity Trustees: Helen Mathie Chair
Andy Rothery Treasurer
Wendy Braithwaite
John Lumley
Pamela Martin
Joan Millbank
Imogen Slater (resigned 24 February 2022)
Laura Wirtz
Cathy Druce (resigned 30 September 2021)
Matthew Gerry
Jo Walker
Janet Bygrave
Company Secretary Katie Overton
Senior Statutory Auditor Anthony Epton
Goldwins Limited
75 Maygrove Road, London, NW6 2EG
Solicitors Russell Cooke Solicitors
2 Putney Hill, London SW15 6AB
Property Management Strettons
Central House,
189-203 Hoe Street, London E17 3SZ
Payroll provider Dataplan Payroll Ltd
1 Prince Albert Gardens, Grimsby DN31 3AG
Pension provider Scottish Widows

1

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Chair’s Report

On behalf of the Board of trustees, I’m pleased to introduce the New Cross Gate Trust’s 2021/22 Annual Report.

It has been a year that has brought welcome energy and optimism to the Trust, with the recommencement of our full programme of activities after covid-19. It has been wonderful to see local people coming back to Besson Street, enjoying the garden, taking up learning and connecting in this special green oasis at the heart of New Cross. This year we’ve seen the continuation of many of the services and activities which are hugely valued by local people – such as stay and play sessions, IT skills and our environment programme with local primary schools. We’ve also extended provision in response to growing gaps locally, including around mental health where need is even greater following the pandemic.

As a Board we’ve been considering the Trust’s role in the wider community and how we can ensure we can do more to help build the capacity of local community groups and act collectively with others to provide the infrastructure support which is so critical to the sector. We’ve continued to extend our reach with local partners, working with colleagues across the Local Authority, NHS and schools to explore new initiatives and secure funding to help grow activities in neighbouring areas.

One of the key developments from the year has been the progress with the Besson Street development which will bring much needed housing and community premises to the area. The Trust continues to be actively involved in this process and work closely with the developers and Lewisham Council to ensure plans reflect the needs of the community as well as the Trust. We are excited about the potential this will bring us to further extend our reach and impact in the coming years.

The staff team continues to amaze us with their energy and commitment, and we’ve been pleased to welcome new staff members to the team. We are highly indebted to the team of volunteers who help make Besson Street the unique place it is – from the gardening group, to those helping behind the scenes. Thank you to every one of you who’s generously contributed your time, vision and skills.

As we present this year’s report, the damaging impacts from the pandemic, continued austerity and the growing cost of living crisis are already being seen, and as a Trust we are well aware these will become worse over the next 12 months. We’re also facing a fiercely competitive funding environment, higher running costs and increased demand from our community. We have commenced some internal projects to strengthen our own infrastructure to help make us better placed to respond to these challenges in the year ahead, and enable us to continue to help make New Cross a positive and optimistic place to live.

Helen Mathie, Chair of the New Cross Gate Trust

2

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Trustees’ annual report for the year ended 31 March 2022.

The Trustees present their Report and Accounts for the year ended 31 March 2022, which also comprises the Director’s report required by the Companies Act 2006.

The legal name and operating name of the charity is: The New Cross Gate Trust . The charity is also known by local people as ‘NXG Trust’

Legal Structure

The New Cross Gate Trust is registered in England and Wales with the Charity Commission in England and Wales (CCEW) with Charity Number 1118010.

The Charity is constituted as a company limited by guarantee, registered under the Companies Act. The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation (company number 5862134) and incorporated on 29 June 2006.

There are no restrictions in the governing documents on the operation of the charity or on its investment powers other than those imposed by Charity law. By operation of law, all trustees are directors under the Companies Act 2006 and all directors are trustees under charity legislation and have responsibilities as such under both company and charity legislation.

Organisational Objectives

The objectives of the New Cross Gate Trust, as set out in our Articles of Association are:

To promote regeneration and community development for the benefit of people of the New Cross Gate and surrounding area, and in particular to:

These charitable objectives are broad and ambitious for an organisation of our size. Our vision, mission, and strategic objectives therefore help us to focus our activities on what is currently achievable while setting out our ambitions for building on these in the future.

Our vision is that the local community of New Cross Gate should be able to live happy, healthy, stable and fulfilled lives.

Our mission is to support our local community to: build social networks; develop self-confidence; learn new skills; improve their employment prospects; feel safe and supported, maintain a healthy lifestyle and; access relevant services according to their needs.

3

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Our values are:

Our Strategic objectives for 2021/22 were

  1. To maximise the use of Besson Street Community Garden as a high-quality environmental resource and community asset, to deliver projects which address our education and family learning, employment, health, community development and environmental objectives.

  2. To support the sustainability of other local community and voluntary organisations, through taking a collaborative approach to delivering against our charitable objectives. This includes the sharing of facilities and resources, including offering capacity building training for staff and volunteers, and where possible providing supportive funding for key local projects.

  3. To support local community development: achieved through the provision of free or low-cost delivery space, capacity building training, networking opportunities, fundraising support, sharing information and resources through community networks and promoting activities of other groups through our media and communications systems.

  4. To identify issues of local concern to the community, share information, encourage community involvement in local consultations and advocate on behalf of the local community on local issues of concern.

  5. To identify new sources of funding to maintain existing projects (particularly the Big Lottery funded projects which are currently funded until June 2021), and to and develop new services according to identified priorities and need.

  6. To secure new community premises and additional investment income through the development of the Besson Street Healthy Living Centre, enabling us to build our asset base and through this expand our service provision.

Key Activities

Over the past year we have seen our services return following the covid-19 pandemic. By the end of the year (March 2022) everything was back running as in early 2020. We saw increased participation at our Adult learning courses, our Stay and Play sessions and our mental well-being offer, as people reconnected with the community.

The pandemic experience has further highlighted the need for us to continue developing our mental well-being offer and develop activities that help people make new connections and reconnect with the community.

For children and young people :

4

The New Cross Gate Trust Trustees’ Report

For the year ended 31 March 2022

of 17 families per session. We pride ourselves on offering quality provision delivered by experienced and qualified staff who embrace the outdoors and encourage families to do so too. Signposting and connecting people up with other activities and services is an important part of this service too. A long-standing member of the Stay and Play team retired in December, and she was successfully replaced with two workers covering different days.

For Adults :

5

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Volunteers

Volunteers form an essential part of the work of the New Cross Gate Trust. The garden itself benefitted significantly from the ongoing hard work of many of our regular and long-standing volunteers - without whom we could not maintain this beautiful space. In addition to our regulars, we have many people who dip in and out over the summer months, their work is also invaluable. We made good use of a group of corporate volunteers (from a bank) who wished to get out of the office and give some of their time the community. They shifted several tons of manure and compost. In addition to volunteering in the garden, we have people volunteering sometime to help with admin tasks, with our Stay and Play sessions and at our summer school.

6

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

New developments

Through grants from the GLA Greener Fund and LB Lewisham’s Green Spaces fund we continued to develop our garden with green roofs and new plants. We hosted the London Borough of Lewisham Phase 2 launch of their Greener Spaces Fund providing a lovely backdrop and impressive narrative for the success of Phase 1.

This year we were able to obtain a grant from local organisation Deptford First to support local residents affected by the cut to universal credit. With this funding we were able to give out supermarket vouchers to help people transition to this new lower income. As part of the offer, we also ensured that residents were linked with a local advice agency to ensure they were maximising their income.

Challenges

We have faced some funding challenges this year; funding for our employment, ESOL and digital skills service ended at the end of September. We were able to secure additional funding for digital skills and were able to use internal funds to continue ESOL and employment support for a further six months. Unfortunately, we were forced to close our employment service as we have been unable to find a viable alternative funder.

In general, we have found that many funders are still focusing on short-term covid-specific grants making it difficult to secure long term funding for some of our larger projects.

Achievements and Performance

This year we have been fortunate to be able to remain open year-round for face-to-face support for our community. Class sizes have remained small to ensure adequate covid safety and we have continued to offer some support - such as our digital skills programme - in a hybrid format for those who need it.

Some key outputs and outcomes

Big Lottery project – employment, IT and ESOL support

We were unable to get the usual number of self-reported outcomes forms completed this year due to the pandemic, however of those who provided us with feedback we achieved the following:

Digital skills

Outcomes:

ESOL

Outcomes:

Outcomes across the whole project

Of people who provided us with feedback from all areas of the project:

7

The New Cross Gate Trust Trustees’ Report

For the year ended 31 March 2022

Other adult learning and activities

Children’s activities

Community grants and in kind support

Statement of Public Benefit

Trustees have observed the Charity Commission’s guidance on public benefit in the preparation of this annual report and have complied with their duty to have due regard to this guidance when exercising any powers or duties to which the guidance is relevant.

We believe that all of our activities have a strong public benefit. Our activities help to bring together people from across all sections of our local community, and impact on their lives through helping them to feel valued, build self-confidence, develop social networks, learn new skills, improve their health and well-being and access other services and facilities around them to support them to take greater control of their own lives.

We work with all of our beneficiaries on an individual basis, making an effort to understand their story, encourage them to participate in activities that we think will be of value and direct them to wider services that will support their specific needs.

Future objectives

Our key priority in 2022/23 is supporting the local community through increasingly tough financial times. As the cost of living - in particular energy bills - increase, many of our residents will be

8

The New Cross Gate Trust Trustees’ Report

For the year ended 31 March 2022

struggling to make ends meet. This will also bring subsequent effects of increased anxiety and poor mental health.

We have secured funding from Public Health Lewisham and from the Neighbourhood Community Infrastructure Levy (NCIL) for 2022/23 to offer mental health and wellbeing projects. Our NCIL funding will run for two years providing mindfulness and mental health support while our Public Health funded ‘Ginkgo project’ will run for a year supporting older people to feel more connected through activities such as gardening, crafts and ukulele lessons.

We will continue working towards the development of the new GP surgery, pharmacy and community space on Besson Street. Construction is set to begin in 2023/24.

Our final priority will be to seek funding to continue our ESOL support. We have secured additional funding from Hyde Housing Association to continue our digital skills programme and have been able to use an unrestricted grant to fund our ESOL project for a further six months. Sadly ,we have had to make the decision at the end of this year not to continue our employment support programme. ESOL remains a key priority for us, as we offer a unique, open access, service which is widely used within our local community.

Financial Review and principal risks

Generally, over the course of the year our income and expenditure has remained relatively stable and we have ended the year with a good level of reserves (6 months – which is in line with our reserves policy). We have however, encountered some challenges during the course of the year.

On a usual year, the majority of our income comes from our property portfolio, which, when rented out, provides us with a very sustainable income stream with which to deliver the majority of our services. This is supplemented with a smaller proportion of income from grant-based income.

Unfortunately, as mentioned, it was not possible to source continuation funding for our employment project and, as such, this came to an end at the end of the year.

Covid-19 continues to be a risk to the Trust, both to our staff and service users from a health perspective and to the day to day running of the Trust. We have been fortunate to be able to continue to run face-to-face services throughout the year, with appropriate safety mitigations in place. We aim to continue this model into 2022/23, increasing class sizes where it is possible to do so safely. As a small staff team, any periods of staff needing to isolate risk causing significant disruption to service delivery. We will ensure the necessary business continuity plans are in place to manage this risk.

Longer term, there are risks associated with the delivery of the new GP surgery and Healthy Living Centre: ensuring that this is built fit for purpose, that it will generate the expected level of additional income and that grant funded projects are maintained during the intervening period. We have engaged necessary surveyor and legal advisors and undertake frequent client meetings to review the development process. We continue to liaise with our existing grant funders and to seek new funding to ensure that our delivery remains stable in the intervening period.

9

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Principal funding sources

Property income

Our property portfolio represents the core income for the Trust. Both commercial and residential properties are rented out at open market rent. This income supports our core costs and overheads, key staff and services.

With regard to our social, environmental and ethical considerations, we do our best to remain ‘good’ landlords, keeping the properties in good order, undertaking repairs and safety checks promptly as required, and ensuring that any rent increases are reasonable and fair. We work hard to resolve any issues such maintenance, voids or arrears promptly. During the pandemic we worked closely with our tenants to ensure they were able to keep up with rent payments and agreed rent holidays when commercial businesses were forced to close. By doing this we were able to continue to uphold or mission of supporting the local community during a difficult time.

Grants

Grants are pursued to enable us to increase and diversify the range of services that we offer, and to maximise the use of the space that we have in Besson Street Community Garden. Achieving grant funding has become increasingly challenging, due to cuts in local authority funding and the consequent increasing pressure placed on key grant funders. This year we have received grants from the following organisations to support our work:

National Lottery Community Fund BUPA Groundworks Hyde Foundation Avanton

We would like to thank all of our funders for their vital support to our services.

Charges

Small, highly-subsidised charges are made for elements of our adult learning programme, summer school and music lessons. We also rent out our rooms to other community groups when these are not being used for service delivery. However, we maintain a focus on providing low-cost spaces and low-cost learning opportunities to our local community, therefore these tend to produce a relatively small contribution to our overall income.

Grant funding of other organisations

We aim to develop and fund projects according to the needs identified within our local community. We prioritise these needs according to our available resources and in discussion with other local charities. Where other local charities are better placed (on account of their skills, expertise, facilities or client group) to deliver an effective project to address identified needs, we will fund them to do so or support them with fundraising applications to secure external funds.

This year we provided funding to the following organisations:

10

The New Cross Gate Trust Trustees’ Report For the year ended 31 March 2022

Investments, Banking and Designated Funds

We currently maintain two designated cash funds.

Our Charity Bank savings account holds funds designated towards the costs that we expect to incur in relation to the Healthy Living Centre development and the move of the GP surgery into this new premises. This includes legal and monitoring surveyor costs, furniture and IT and any tax liabilities in connection with the new development. Although we are now encountering some costs relating to the necessary lease agreements and monitoring surveyor fees, we expect the majority of this expenditure to take place in 2024/25, as the new building is completed.

We also hold a designated sinking fund in CAF Bank to support the maintenance costs of our existing property portfolio. Each year, 5% of gross property rental income is deposited into this account, less any significant maintenance costs encountered within the year.

Our day-to-day banking is with the Co-operative Bank, where we hold our free reserves.

Reserves policy and current reserves

Trustees have a duty to apply the charity's income for the benefit of its beneficiaries. This means income should be spent rather than invested. However, for the purposes of good financial management, it is our policy that we maintain free reserves amounting to at least three months of running costs in our main bank account.

This is considered necessary to ensure that we have sufficient funds available to provide continuity of service should there be a break in funders, and to ensure we are able to continue to be flexible and adapt quickly to the needs of the local community.

At 31 March 2022, our free reserves equated to 5.9 months running costs.

Our Board of Trustees have reviewed our finances and are satisfied that we remain a going concern.

Staff

Staff
We have the following staff on our payroll.
0.8 FTE Strategy and Operations Manager
1 FTE Besson Street Manager and Community Development
0.6 FTE ESOL Tutor
1 FTE Employment Adviser*
0.25 FTE X 2 Stay and play workers
0.20 FTE Cleaner

*This role ended at the end of March 2021 due to lack of funding.

We employ a number of additional sessional staff who are responsible for the delivery of specific projects, including the various courses within our adult learning programme, mindfulness sessions, gardening club, sewing club, environmental learning sessions for primary schools, ukulele club and our summer school.

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The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

Arrangements for setting pay and remuneration of key management personnel

Trustee remuneration and expenses

There have been no expenses or remuneration paid to trustees in 2021/22.

Structure, Governance and Management

Governing Document

The charity is controlled by its governing document, the Articles of Association, and constitutes a limited company, limited by Guarantee, as defined by the Companies Act 2006.

Recruitment and Appointment of New Trustees

As defined within its constitution, the Board is comprised: 8 local residents, up to 2 representatives from local community organisations, one representative from the local health service, one representative from local education services and one representative from the local authority. There also includes the ability to co-opt up to two additional trustees to fill any particular skill gaps.

The representative from the local authority is an elected post with the post holder decided by the local authority. The local health and education representatives are recruited by way of direct invitation. Resident and community trustee vacancies are advertised through advert and newsletter distributed to the local community and via relevant social media and volunteering websites.

Recruitment is then undertaken by way of an open application and interview process. Criteria for trustee recruitment usually include any identified skill gaps from the existing Board. We particularly encourage people from diverse backgrounds to apply to ensure that our Board is as representative as possible of our local community.

All trustees receive an induction and have access to any necessary training required for their role.

Organisational Structure and Decision Making

Trustees are responsible for the overall governance of the charity. There are two sub-committees of the Board of Trustees for HR and Finance. Minutes, actions, and recommendations from each of these sub-groups are fed back to the full Board at each meeting.

The day-to-day operation of the charity is the responsibility of the staff, on the basis of an annual budget and delivery plan approved by the trustees. The Chair meets regularly with the senior staff.

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The New Cross Gate Trust Trustees’ Report

For the year ended 31 March 2022

Day-to-day management of the charity and names of senior management personnel

Day to day management of the charity is delegated to our two senior staff:

Strategy and Operations Manager – Amy Glover

Amy is responsible for strategic development, financial management, fundraising and grants, facilities, HR and property management.

Besson Street Centre Manager and Community Development – Jill Mountford

Jill is responsible for the management of Besson Street Community Gardens, programme development and delivery, safeguarding, volunteer management and community development.

Safeguarding

All of our staff and sessional workers are expected to have a valid, enhanced DBS check before starting work for the NXG Trust. Any staff working with children or vulnerable adults are also provided with our safeguarding policies and provided safeguarding training, refreshed every 3 years. Our safeguarding and complaints policies are provided to staff and made available on our website.

Statement of responsibilities of the trustees

The trustees (who are also directors of The New Cross Gate Trust for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for maintaining proper accounting records which 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.

13

The New Cross Gate Trust

Trustees’ Report

For the year ended 31 March 2022

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Goldwins limited were appointed as the auditors of the charitable company during the year and have expressed their willingness to continue in that capacity.

24 November

The trustees’ annual report has been approved by the trustees on _____ 2022 and signed on their behalf by;

……………………………………

Helen Mathie (Chair)

14

The New Cross Gate Trust Independent Auditors’ Report

For the year ended 31 March 2022

Opinion

We have audited the financial statements of The New Cross Gate Trust (the ‘Charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorʼs responsibilities 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 FRCʼs 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 statements, 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 conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to 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 auditorʼs report thereon. Our opinion on the financial statements does not cover the other information and, except to

15

The New Cross Gate Trust Independent Auditors’ Report

For the year ended 31 March 2022

the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 inconsistencies 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the 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’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charityʼs ability to 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

16

The New Cross Gate Trust Independent Auditors’ Report

For the year ended 31 March 2022

cease operations, or have no realistic alternative but to do so.

Our 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 auditorʼs 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 (UK) will always detect a material misstatement when it exists. Misstatements 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditorʼs report.

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The New Cross Gate Trust Independent Auditors’ Report

For the year ended 31 March 2022

Use of our report

This report is made solely to the Charityʼs members, 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 Charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Anthony Epton (Senior Statutory Auditor) for and on behalf of

Goldwins Limited Statutory Auditor

Chartered Accountants

75 Maygrove Road

West Hampstead London NW6 2EG

13 December 2022

Goldwins Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

18

The New Cross Gate Trust Statement of financial activities

(incorporating an income and expenditure account) For the year ended 31 March 2022

Unrestricted
funds
Notes
£
Income from:
Charitable activities
3
24,902
Investment income
4
260,577
Total income
285,479
Expenditure on:
Raising funds
58,197
Charitable activities:
226,802
Total expenditure
5
284,999
Net gains / (losses) on investments
-
6
480
Transfers between funds
0
480
Gains / (losses) on revaluation of fixed assets
200,000
Net movement in funds
200,480
Reconciliation of funds:
Total funds brought forward
4,971,986
Total funds carried forward
14
5,172,466
Net income / (expenditure) before net gains /
(losses) on investments
480
Net income / (expenditure) for the year
Net income / (expenditure) before other
recognised gains and losses		 Unrestricted
funds
Notes
£
Income from:
Charitable activities
3
24,902
Investment income
4
260,577
Total income
285,479
Expenditure on:
Raising funds
58,197
Charitable activities:
226,802
Total expenditure
5
284,999
Net gains / (losses) on investments
-
6
480
Transfers between funds
0
480
Gains / (losses) on revaluation of fixed assets
200,000
Net movement in funds
200,480
Reconciliation of funds:
Total funds brought forward
4,971,986
Total funds carried forward
14
5,172,466
Net income / (expenditure) before net gains /
(losses) on investments
480
Net income / (expenditure) for the year
Net income / (expenditure) before other
recognised gains and losses		 Restricted
funds
£
20,085
-		 2022
Total
funds
£
44,987
260,577		 2021
Total
funds
£
139,740
260,278
285,479 20,085 305,564 400,018
58,197
226,802		 -
73,954		 58,197
300,756		 74,083
361,420
284,999 73,954 358,953 435,503
-
480		 -
(53,869)		 -
(53,389)		 -
(35,485)
480
0		 (53,869)
-		 (53,389)
-		 (35,485)
-
480
200,000		 (53,869)
-		 (53,389)
200,000		 (35,485)
-
200,480
4,971,986		 (53,869)
59,851		 146,611
5,031,837		 (35,485)
5,067,322
5,172,466 5,982 5,178,448 5,031,837

There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.

19

The New Cross Gate Trust Balance sheet

As at 31 March 2022

2022
Notes
£
Fixed assets:
9
10
Current assets:
11
55,118
396,979
452,097
Liabilities:
12
(27,857)
13
15
Investment asset fund
4,850,000
Investment property sinking fund
100,197
General fund
222,269
Total unrestricted funds
Investment properties
Tangible assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
Total net assets
Funds
Restricted funds
Unrestricted funds
Total funds
Approved by the trustees on ………………………………
and signed on their behalf by:
24 November 2022		 2022
Notes
£
Fixed assets:
9
10
Current assets:
11
55,118
396,979
452,097
Liabilities:
12
(27,857)
13
15
Investment asset fund
4,850,000
Investment property sinking fund
100,197
General fund
222,269
Total unrestricted funds
Investment properties
Tangible assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
Total net assets
Funds
Restricted funds
Unrestricted funds
Total funds
Approved by the trustees on ………………………………
and signed on their behalf by:
24 November 2022		 2022
£
6,758
4,850,000		 2021
£
31,854
458,842		 2021
£
7,951
4,650,000
4,856,758
424,240		 4,657,951
480,196
452,097
(27,857)		 490,696
(10,500)
4,850,000
100,197
222,269		 4,650,000
100,197
221,789
5,280,998
102,550		 5,138,147
106,310
5,178,448 5,031,837
5,982
5,172,466		 59,851
4,971,986
5,178,448 5,031,837

Helen Mathie (Chair)

Company registration no. 05862134

The attached notes form part of the financial statements.

20

The New Cross Gate Trust Notes to the financial statements For the year ended 31 March 2022

1 Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 - effective 1 January 2015) - (Charities SORP FRS 102) and the Companies Act 2006.

The charitable company 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 or note.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

b) Going concern

As with every community organisation, the biggest challenge that charity faced during this financial year has been the COVID-19 crisis.The trustees consider due to the steps taken by charity to address the COVID-19 situation, there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

d) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

21

For the year ended 31 March 2022

The New Cross Gate Trust Notes to the financial statements

1 Accounting policies (continued)

e) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 5.

f) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

g) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Plant and machinery 15% reducing balance

h) Investment properties

Investment properties are included in the balance sheet at fair value and are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value will be stated in the notes to the accounts.

i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

j) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

k) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

l) Pensions

The Trust operates a company pension scheme through Scottish Widows. Staff who meet the equirements of auto-enrolment are automatically enrolled within this pension scheme. Other staff are given the option whether to join the scheme or not. At the end of 2021/22, four members of staff were enrolled in the pension scheme.

22

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

2 Detailed comparatives for the statement of financial activities

Income from:
Charitable activities
Other trading activities
Investment income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure) for the year
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward
3
Income from charitable activities
Grants and donations
Other income
Total income from charitable activities
4
Income from investments
Rents receivable
Bank interest		 Unrestricted
£
21,264
3,638		 2021
fund
£
27,357
-
260,278
Unrestricted		 2021
fund
£
112,383
-
-
Restricted		 2021
Total
fund
£
139,740
-
260,278
287,635 112,383 400,018
74,083
270,001		 -
91,419		 74,083
361,420
344,084 91,419 435,503
(56,449) 20,964 (35,485)
-
(56,449)
5,028,435		 20,964
38,887		 (35,485)
5,067,322
4,971,986 59,851 5,031,837
£
20,085
-
Restricted		 2022
Total
£
41,349
3,638		 2021
Total
£
129,371
10,369
24,902 20,085 44,987 139,740
Unrestricted
£
260,548
29		 £
-
-
Restricted		 2022
Total
£
260,548
29		 2021
Total
£
258,657
1,621
260,577 - 260,577 260,278

23

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

5 Analysis of expenditure

Basis of
allocation
Besson Street
Direct
Community Investment Fund
Direct
Big Lottery, Employment, ESOL, IT
Direct
Marketing and communication
Direct
Coronavirus Community Support Fund
Direct
Environment Workshop
Direct
Summer skills project
Direct
Growback greener
Direct
BUPA mental health project
Direct
Investment management costs
Direct
Support staff costs
staff time
Audit fees
staff time
Trust admin and running costs
staff time
Depreciation
Direct
Investment property development fund
costs
Direct
Support costs
Total expenditure 2022
Total expenditure 2021
Raising
funds
Charitable
activities
Support
costs
£
£
£
-
29,093
-
-
22,339
-
-
73,035
-
-
2,272
-
-
270
-
-
-
-
-
4,500
-
-
5,588
-
-
9,200
-
58,197
-
-
-
-
128,367
-
-
4,500
-
-
20,399
-
-
1,193
-
2022
Total
£
29,093
22,339
73,035
2,272
270
-
4,500
5,588
9,200
58,197
128,367
4,500
20,399
1,193
-
2021
Total
£
20,031
15,378
47,357
2,071
2,208
1,100
-
1,795
4,334
74,083
122,919
4,500
20,158
1,403
118,166
58,197
146,297
154,459
-
154,459
(154,459)
58,197
300,756
-		 358,953
-
358,953		 435,503
-
74,083
361,420
-		 435,503

Of the total expenditure, £284,999 (2021: £344,084) was unrestricted and £73,954 (2021: £91,419) was restricted.

24

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

6 Net income / (expenditure) for the year
This is stated after charging / (crediting): 2022 2021
£ £
Audit fees 4,500 4,500
Depreciation - owned assets 1,193 1,403
7
Staff costs were as follows:
2022
2021
£
£
Salaries and wages
156,711
151,186
Social security costs
13,908
10,053
Employer’s contribution to defined contribution pension schemes
8,078
7,641
178,697
168,880
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management
personnel		 7
Staff costs were as follows:
2022
2021
£
£
Salaries and wages
156,711
151,186
Social security costs
13,908
10,053
Employer’s contribution to defined contribution pension schemes
8,078
7,641
178,697
168,880
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management
personnel		 7
Staff costs were as follows:
2022
2021
£
£
Salaries and wages
156,711
151,186
Social security costs
13,908
10,053
Employer’s contribution to defined contribution pension schemes
8,078
7,641
178,697
168,880
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management
personnel
178,697 168,880

The total staff costs including pension contributions of the key management personnel were £91,092. (2021: £83,856)

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Staff numbers

The average number of employees during the year was as follows:

2022 2021
No. No.
Charitable activities 4 4
Management and administration 2 2
Cleaning 1 1
7 7

No employee received emoluments in excess of £60,000 (2021: Nil).

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

25

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

9
Tangible fixed assets
Cost
At the start of the year
Additions in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
10 Investment properties
Fair value at the start of the year
Revaluation during the year
Fair value at the end of the year		 £
1
-
Short
leasehold		 £
19,599
-

Plant and
machinery		 Total
£
19,600
-
1 19,599 19,600
-
-		 11,649
1,193		 10,246
1,193
- 12,842 12,842
1 6,757 6,758
1 7,950 7,951
2022
£
4,650,000
200,000		 2021
£
4,650,000
-
4,850,000 4,650,000

The New Cross Gate Trust arranges a full, independent, external valuation through our property management company, Strettons, every five years. The last valuation was undertaken in March 2019. To update property values to 31 March 2022, the Strategy and Partnership manager has undertaken a thorough desk-based review of property value changes in New Cross Gate, with oversight from the Trust’s Treasurer.

11 Debtors

Other debtors
Prepayments
Other debtors represent rents receivable at the year end received in April 2022.		 2022
£
52,970
2,148		 2021
£
29,706
2,148
55,118 31,854
12 Creditors: amounts falling due within one year
Accruals
Deferred income		 2022
£
27,857
-		 2021
£
4,500
6,000
27,857 10,500

26

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

13 Creditors: amounts falling due after one year

Accruals
14 Analysis of net assets between funds
Tangible fixed assets
Investment properties
Net current assets
Long term liabilities
Net assets at 31 March 2022
Analysis of net assets between funds
Tangible fixed assets
Investment properties
Net current assets
Net assets at 31 March 2021
15 Movements in funds
Restricted funds:
Big Lottery
Grow back greener
Coronavirus support fund
BUPA mental health project
Hyde IT Skills
Summer Skills
Lewisham Homes Community fund
Deptford first fund
Total restricted funds
Unrestricted funds:
General fund
Investment asset fund
Investment property sinking fund
Total unrestricted funds
Total funds		 2021
£
47,276
1,823
2,497
8,255
-
-
-
-
At the start
of the year		 £
-
6,250
-
-
4,935
6,000
2,000
900

Income		 Unrestricted
funds
£
6,758
4,850,000
418,258
(102,550)		 2022
£
102,550		 2021
£
106,310
102,550 106,310
Restricted
funds
£
-
-
5,982
-
Total
funds
£
6,758
4,850,000
424,240
(102,550)
5,172,466 5,982 5,178,448
Unrestricted
funds
£
7,951
4,650,000
420,345
(106,310)		 Restricted
funds
£
-
-
59,851
-
Total
funds
£
7,951
4,650,000
480,196
(106,310)
4,971,986 59,851 5,031,837
£
(47,276)
(5,588)
(270)
(8,255)
(4,230)
(5,475)
(2,000)
(860)
Expenses		 £
-
-
-
-
-
-
-
-
Other gains		 £
-
2,485
2,227
-
705
525
-
40
At the end
of the year
59,851 20,085 (73,954) - 5,982
221,789
4,650,000
100,197		 285,479
-
-		 (284,999)
-
-		 -
200,000
-		 222,269
4,850,000
100,197
4,971,986 285,479 (284,999) 200,000 5,172,466
5,031,837 305,564 (358,953) 200,000 5,178,448

27

The New Cross Gate Trust

Notes to the financial statements

For the year ended 31 March 2022

Movements in funds 2021

Movements in funds 2021
Restricted funds:
Sewing and gardening
Big Lottery
Grow back greener
Coronavirus support fund
BUPA mental health project
Earnest Cook (Environmental learning)
Total restricted funds
General fund
Investment asset fund
Investment property sinking fund
Investment property development fund
Total unrestricted funds
Total funds		 £
-
21,286
-
-
16,605
996
At the start
of the year		 £
98,738
6,250
7,395
-
-

Income		 £
(72,748)
(4,427)
(4,898)
(8,350)
(996)
Expenses		 £
-
-
-
-
-
Transfers		 £
-
47,276
1,823
2,497
8,255
-
At the end
of the year
38,887 112,383 (91,419) - 59,851
177,150
4,650,000
100,197
101,088		 270,462
-
95
17,078		 (210,863)
-
(15,055)
(118,166)		 (14,960)
-
14,960
-		 221,789
4,650,000
100,197
-
5,028,435 287,635 (344,084) - 4,971,986
5,067,322 400,018 (435,503) - 5,031,837

16 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

17 Related party transactions

There are no related party transactions to disclose for 2022 (2021: none).

28