## **WESTWAY TRUST** 

**TRUSTEES’ ANNUAL REPORT AND ACCOUNTS** 

**FOR THE YEAR ENDED 31 MARCH 2021** 



**CONTENTS** 


||Page|
|---|---|
|**REPORT OF THE BOARD OF TRUSTEES**||
|Objectives and activities|4 – 5|
|Public Benefit|5|
|Transforming the Trust|6|
|Achievements and Performance|6 - 11|
|Plans for the future|12 - 13|
|Financial Review|14 - 16|
|Structure of governance and management|17 - 19|
|Risk and control|19 - 21|
|Other matters|21 - 23|
|Statement of Trustees’ responsibilities|24|
|**INDEPENDENT AUDITOR’S REPORT**|**25 - 29**|
|**FINANCIAL STATEMENTS**||
|Statement of financial activities|30|
|Balance sheets|31|
|Cash flow statement|32|
|Notes to the financial statements|33 - 62|
|**REFERENCE AND ADMINISTRATIVE INFORMATION**|**63 - 64**|



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**REPORT OF THE BOARD OF TRUSTEES 2021** 


_Incorporating the Directors’ Strategic Report and Administrative Report for Companies Act purposes._ 

This year, to ensure our reporting of activity and finances over the year is accessible to all, we have produced one primary document, accompanied by a short video presentation outlining our impact, financial position and response to the Covid pandemic. 

- The Annual Report and accompanying film are available on our website at www.westway.org/annualreport 

The Trustees of Westway Trust present their Annual Report for the year ended 31 March 2021 under the Charities Act 2011 and the Companies Act 2006, including the Directors’ Report and the Strategic Report under the 2006 Act, together with the audited financial statements for the year. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **OBJECTIVES AND ACTIVITIES** 

The objects of the Trust are to promote for the benefit of those living or working in the Royal Borough of Kensington and Chelsea and adjoining London Boroughs, by such exclusively charitable means as the Trustees think fit. 

Our objectives and activities fall into three mutually supporting categories – social, environmental and economic wellbeing: 

## _**Our strategic objectives**_ 

_**Our charitable objects**_ 

- Social Wellbeing  People are given opportunities to  Provision, or assistance in the participate and their voices are heard; provision of, facilities for recreation, 

- People feel proud of the area its heritage, sporting or other leisure-time culture and creativity; and occupation; 

   - People feel proud of the area its heritage, culture and creativity; and 

- Where everyone is active and healthy,  Advancement of health; has the opportunities they need to get  Development of the capacity and the skills and qualifications to get on in skills of members of the local life, is engaged in a strong community communities; ecosystem, and has a sense of  Advancement of the arts, culture and belonging. heritage;  Advancement of amateur sports;  Promotion of civic responsibility; and 

- Relief of those in need. 

- Environmental Wellbeing  An improved public realm, where  Maintenance, improvement or green space is cherished, protected provision of public amenities and and enhanced; public consciousness of public art;  and environmental issues heightened and  Advancement of environmental behaviour modified; protection or improvement provided 

- environmental sustainability at the that such activity is delivered by heart of every development along the programmes designed to benefit the 23 acres;  and public. 

- exemplary standards sought at every opportunity. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## Economic Wellbeing 

 A flourishing local economy, where many more local people, including tenants, traders and earners, directly benefit; 

- Local start-ups supported to get on their feet and develop sustainable enterprises, and all tenants playing a part in building a strong and robust local economy;  and 

- Advancement of education, including training or retraining, work experience; 

- Provision of financial assistance;  and 

- Support of the performing and visual arts. 

 A sustainable organisation that embraces innovation and entrepreneurship reinvests in the community’s asset and operates for the long-term. 

More information is provided in the Trust’s Memorandum and Articles of Association, including restrictions applicable to the Trust. 

This can be viewed on our website at www.westway.org/constitution or is available by request. 

## **PUBLIC BENEFIT** 

The Trust’s **area of benefit** is widely defined as the Royal Borough of Kensington and Chelsea and adjoining London Boroughs.  However, the intention when the Trust was established was to make a local impact in North Kensington.  The strategy we launched in 2018 made it explicit that we concentrate our efforts on North Kensington - the local authority wards of Dalgarno, St Helen’s, Golborne, Colville and Notting Dale.  Full details of our area of benefit can be found on our website at www.westway.org/ourcommunity. 

We have referred to the Charity Commission’s general guidance on public benefit, including the guidance on ‘Public benefit: running a charity’ (PB2), and are confident that our objects and activities fulfil these requirements. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **TRANSFORMING THE TRUST** 

In 2020/21, Westway Trust continued on its journey of transformation, as outlined below. 

|**Old Westway**||**New Westway**|
|---|---|---|
|Commercial property development||A mixed economy of spaces, including<br>community spaces|
|Culture of telling and doing to||Culture of listening and responding; putting the<br>interests of the community at our heart|
|Community engagement and grant giving||Community participation and ownership|
|Emphasis on the technical||Residents feel connected and have affinity to<br>Westway Trust|
|Tenants are cash||Tenants are partners delivering cash and social|
|||impact|
|Staff are workers||Colleagues are nurtured and developed – one|
|||Westway team|



## **ACHIEVEMENTS AND PERFORMANCE** 

## **Independent Review into Institutional Racism at Westway Trust** 

In 2018, Tutu Foundation UK was commissioned by Westway Trust to conduct an independent review into claims of institutional racism at the charity. The Review was officially launched on 7 November 2018, in a joint event hosted by Westway Trust, Tutu Foundation UK and the independent Community Advisory Group to the Review. 

Over the course of the following two years, and under the guidance of the independent Community Advisory Group, the Tutu Foundation UK collected testimony for the Review. 

The Review was published in December 2020 at a community and media launch event on the Westway estate. The full report can be viewed at www.westwayreview.com 

## **Grant Making** 

In the financial year 2020/21, a total of £150,270.88 was distributed in grants to 85 community groups and individuals. These grants include: 

- Community Small Grants 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


- Rapid Response Fund 

- Computers for North Kensington 

- Young Achievers’ participatory grant-making pilot 

- Grenfell Response Fund 

## **Community Grants** 

The aim of the Community Grant Investment programme is to provide small amounts of funding for one off projects to help community organisations deliver meaningful benefits in the areas of economic, social and environmental wellbeing for the area in and around North Kensington. 

In 2020/21, we funded 18 organisations through the Community Investment Grant, a total of £60,161. 

## **Rapid Response Fund** 

The Rapid Response Fund is designed for urgent activities/projects or unexpected circumstances when other funds are not available. 18 Community Groups and individuals received Rapid Response funding in 2020/21.  £43,676.88 was awarded in total. 

## **Computers for North Kensington** 

In 2020/21, Westway Trust provided funding for computers for local children. North Kensington Primary Schools were targeted and stipulated they should go to the children who needed it the most who were North Kensington residents. We did this as the school would be aware of those who needed them most. These were all distributed directly to the schools. Total expenditure on this programme was £18,693. 

## **Young Achievers Participatory Grant-making pilot** 

Westway Trust is developing a process whereby the community can participate in the decision-making behind Westway’s community investment and grant-making activities. We began developing a pilot programme in early 2020. 

Participatory Grant-making involves a range of different methods and challenges. At its heart, this approach gives greater decision-making power over grants to the communities impacted by funding decisions. 

Throughout 2019 and early 2020, we ran a number of community meetings and events to help us understand the types of programmes or initiatives that local people want funded. Prior to the Coronavirus pandemic we gained this insight by recruiting 14 people including local residents and staff from local charitable organisations, to form a steering group to take 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


the pilot programme forward. The steering group began co-designing how the fund would work in practice, the application process, and decide how decisions will be made. Once the nationwide Coronavirus lockdown had begun, the impact suffered within the community meant this pilot had to be re-evaluated. After much deliberation our trustees decided to proceed with a renewed focus on the needs of young people aged 11-18 yrs. After recruiting a new steering group of 10 young people from across North Kensington, this pilot has emerged as an opportunity to provide 11-18 yr. olds in the 5 wards of North Kensington with a chance to be heard, be creative and have fun. 

Up to £250 was available for individual applicants. Alternatively, group applications were welcomed. £500 for 2 people in a group. £750 for 3 people in a group. 

A total of £11,509 was distributed to 37 young people. 

## **Grenfell Response Fund** 

As the North Kensington community marked the 3rd anniversary of the tragedy at Grenfell Tower in June 2020, Westway Trust provided financial and in-kind assistance to local community groups holding events to commemorate the anniversary. 

A total of £10,325 was distributed to 6 community groups. 

## **Miscellaneous support** 

In addition to the grants programmes outlined above, a total of £5,906 was distributed to two community groups as one-off financial support for events support. 

## **Bay 20** 

Westway Trust continued with a Service Level Agreement with North Kensington Hearts and Minds CIC, an independent community-based operator of the Bay 20 Community space. The independent CIC was chosen as the operator for the space by the independent Bay 20 Steering Group, and began managing the space in January 2020. 

Following the appointment of the operator, Westway Trust has affirmed its previous commitment to: 

- Subsidise Bay 20 for local community groups and to ensure it will remain affordable; 

- Ensure the building remains a community asset in perpetuity; and 

- Create a community-led steering group to oversee the operation of Bay 20 and the appointment of a community operator. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **COVID-19 response** 

The pandemic had a major impact on Westway Trust in 2020/21. 

The Trust’s primary source of income is the rent received from tenants across the 23-acre Westway estate. This income is used to maintain the estate, and is put back into the community through grants programmes, capacity building, sports and fitness, events and cultural activities, and programmes aimed at boosting the local economy and creating opportunities for individuals and businesses in North Kensington. 

But with the arrival of Covid, this income took a major hit. A significant rise in bad debt leading to a fall in received income has meant that we’ve had to make some difficult decisions, while attempting to cushion the impact of the Trust’s depleted resources on the community. 

While dealing with unprecedented financial challenges, the Trust acknowledged the importance of locally-owned small businesses to the economy of the community, and the importance of protecting tenants through this difficult time. 

A rent concession panel was established to assess any requests for support from tenants.  In making tough decisions on support for tenants, the panel considered things like the services and benefit that our tenants provide to our community, their previous track record on rent payments, access to grant/funding support, as well as their ability to trade remotely and online, any other government restrictions and the impacts of decreased footfall on their business, and the measures that have been necessary to keep themselves and their customers safe. 

Prior to the pandemic, the projected rental income for 2020/21 was £5,445,524.46 

Throughout the pandemic during the 2020/21, we subsided the rent of approximately 28% of our tenants, leading to an actual rental income of £4,561,000. 

In 2020/21, Westway Trust claimed a total of £385,000 from the government’s Job Retention Scheme (JRS), with up to 70% of staff going onto either full or part-time furlough at some point during the pandemic. While the JRS enabled the charity to minimise the losses from diminished revenue, it meant that the service provision of the charity was significantly diminished throughout the past year. 

## **Learning** 

The majority of the Trust’s learning programmes have continued to be delivered throughout the pandemic. This was largely achieved by adapting to new and inventive ways of delivering classes and courses online. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


The Learning team have continued to support the local community in a variety of ways.  In the last year they provided: 

## **Pop-up Nursery** 

- 750 hours of nursery provision for local children. 

- 10 nursery parent/carers were supported to access advice and financial support during the pandemic. 

- The nursery managed to access seven Educational Health and Care Plans for children with special educational needs. This meant that the children were able to receive additional support to meet their needs. 

## **Adult Learning** 

- 2060 hours of online tuition to 184 learners (420 enrolments). 

- 74% of adult learners live in RBKC. 

- Supported learners by carrying out a digital skills audit (providing equipment where available to support learning), implementing robust risk assessments and also providing crèche facilities to support learners with childcare needs. 

- Upon completion of courses, 43% of learners started a new job or began volunteering. 

- The vast majority of learners reported to feeling more confident (93%) as a result of the course. 

## **Supplementary Schools** 

- 845 children attended 2042 contact hours of learning. 

- 289 contact hours of training – Training included Health and Safety, Safeguarding, Special Education needs & Disability. 

- Careers Fair/Training Opportunities for Young People over the summer holidays 30 children attended for a 5 hour session. 

- Awards night to celebrate the children’s hard work over the year – 16 Schools took part 200 people attended. 

## **Grenfell and Wider Community Support** 

- 35 hours a week community support which includes 17.5 hours a week supporting the Irish Traveller Community in North Kensington. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


- After school club for under-eights on Stable Way Traveller’s site every Monday and Thursday term time. 

- 27 Items awarded (including white goods and furniture) through applications made to Emergency Essentials - BBC Children in Need - Supporting families living with severe financial, health and social difficulties which affect children's wellbeing. 

- £4,528 awarded to 25 individuals through Westway’s sports bursaries. Including gym, swimming, karate, dance memberships. 

- Referrals for 50 households to receive food packages every week through North Kensington Community Kitchen. 

- 21 referrals made to SHELTER where households received professional housing advice, support and legal services. 

## **Westway 50** 

On 5 February 2021, Westway Trust marked the 50[th] anniversary of the charity (formerly North Kensington Amenity Trust) with the launch of an anniversary website and an online, live streamed event hosted by Chair Toby Laurent Belson. The website and event video can be viewed at www.westway50.com 

## **Westway Community Street** 

In March 2020 Westway Trust secured £1,346,000 in funding from the GLA Good Growth Fund to make significant improvements to the estate through a project called Community Street. The funding starts in March 2022, and income and expenditure will be reflected in our accounts from this time. 

The Community Street encompasses the Westway estate and will include improvements to lighting, additional greening, tackling poor air quality and improving a number of the Trust’s buildings. 

Despite unavoidable delays as a result of the pandemic in 2020/21, the project progressed throughout the year and is due for completion at the end of 2022/23. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **PLANS FOR THE FUTURE** 

The previous Westway Trust Strategy was adopted by the then Board of Trustees in 2018. 

As we deliver the strategic priorities of this document, we recognise that the operating environment for our charity has changed significantly; not least with the impact of COVID-19 and the appointment of a new CEO who took up post full-time in August 2021. 

For the first time, Westway Trust's Board of Trustees has been drawn from the local community. Together, the new leadership of the Trust identified six new strategic priorities that will help set out a path to transform Westway Trust into a charity which is truly community centred. 

The strategic priorities, outlined in the diagram below, will form the key pillars of a new strategic document currently in development. 

## **Strategic Goals** 

- Social, economic and environmental wellbeing and justice for the North Kensington Community . 

- Supporting the citizens of North Kensington to empower themselves to address injustice, discrimination, poverty and exclusion especially for the most marginalised groups. 

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13

**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **FINANCIAL REVIEW** 

The net free reserves utilised in the year to 31 March 2021 was £200,000 (2020: £141,000 utilised) and is made up as follows: 

|Recognised income<br>less: non-cash rental income<br>**Cash income**<br>Grants and subsidies<br>Community consultation<br>Expenditure on charitable activities<br>Expenditure on property management and maintenance<br>**Total expenditure**<br>**Net cash operating surplus/(loss)**<br>Add back: expenditure funded from reserves (net)<br>Less:  amounts allocated for future property refurbishment<br>and capital maintenance<br>Less: Funds designated to support community initiatives for<br>the 2nd anniversary of the Grenfell Tower fire<br>**Free reserves generated (used) in the year**|**2021**<br>**_2020_**<br>**£'000**<br>**_£’000_**<br>5,980<br>_6,055_ <br>(225)<br>_(207)_|
|---|---|
||**5,755**<br>**_5,848_**|
||<br>(482)<br>_(826)_ <br>-<br>_(117)_ <br>(2,352)<br>_(3,394)_ <br>(3,999)_(1,834)_|
||**(6,833)**<br>**_(6,131)_**|
||<br>(1,078)<br>**_(283)_** <br>885<br> <br>**_924_** <br>-<br>**_(760)_** <br>**(7)**<br>**_(22)_**|
||**(200)**<br>**_(141)_**|



## **Recognised Income** 

Recognised Income was £5,980,000 in 2021 (2020: £6,055,000).  While this represents a slight reduction on the previous year, it is compounded by a substantial increase in bad debts provisions arising from the Covid 19 Lockdown. In this reporting year 2021 Bad debt provisions of £2,227,000 compared to £469,000 in 2020. The Trust has engaged with tenants in line with government policy offering concessions where it is deemed applicable. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **Reserves Cash Income** 

Reserves Cash income expected for the year was £5,980,000 (2020: £5,848,000).  The largest proportion of our income is from property rental (2021:  £4,561,000; 2020:  £4,740,000).  We also received £883,000 in grants and earned income (2019:  £503,000). 

## **Cash income:  April 2020 to March 2021** 


**----- Start of picture text -----**<br>
Other income and  Grants received from<br>Property Service<br>interest, £107k Royal Borough of<br>Charges, £326k<br>Kensington & Chelsea,<br>£449k<br>Car Park Income, £103k<br>Grants and Donations<br>received for other<br>activities, £409k<br>Earned income, £17k<br>How we<br>generate our<br>income:<br>£5,988,000<br>Property Rental<br>Income, £4,561k<br>**----- End of picture text -----**<br>


We received £456,900 in grants and crèche fees from the Royal Borough of Kensington and Chelsea (2020:  £420,000).  This amount funded several learning programmes. 

15 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **Expenditure** 

Total expenditure was £6,833,000 (2020: £6,131,000).  We spent £702,000 more in 2021 

compared to 2020.  The main items that make up this amount include: 

- Bad debts for the year totalled £2,227,000. This is exceptionally high and is as a result of the challenges of the pandemic faces by Westway Trust tenants. 

- £502,000 of grants awarded, a decrease of £435,000 from 2020.  The decrease is primarily due to decreased activity levels as a result of the lockdowns due to the Covid 19 pandemic. On pages 6-8 of this document is an outline of grants to groups and individuals as £150,270.88. This figure is included in the total of £502,000, along with other items such as rental subsidies to charitable tenants, grants for projects at Bay 20 and special projects with the supplementary schools we support. 

- £77,000 in support of Bay20. 

- £144,000 on maintaining and improving the property estate including EPC improvements. 

- £30,000 on maintaining the grounds and gardens of the estate to provide usable spaces for the community. 

## **Expenditure:  April 2020 to March 2021** 


**----- Start of picture text -----**<br>
Grants awarded, £502k<br>Support for Bay20, £77k<br>Materials and overheads,<br>£243k<br>Bad Debts, £2,599k Development, £266k<br>2020-21<br>Expenditure<br>and provisions:<br>£6,833,000<br>Payroll costs, £1,629k<br>Other staffing related<br>costs, £208k<br>Depreciation, £487k<br>Property improvement,<br>Ground and Garden  repairs & maintenance,<br>£144k<br>Maintenance , £30k<br>Insurance and other<br>Governance, £32k<br>establishment costs,<br>Communications and  £603k<br>marketing, £13k<br>**----- End of picture text -----**<br>


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**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **STRUCTURE OF GOVERNANCE AND MANAGEMENT** 

The Trust is a charity that was first set up in 1971.  Since 2008, the activities of the Trust have been undertaken through a charitable company, limited by guarantee. 

We have a Board of up to 12 trustees: 

- Up to three are elected for three-year terms by our Member Organisations; 

- Up to three are nominated by the Royal Borough of Kensington and Chelsea;  and 

- Up to six are openly recruited by the other Trustees against skills-needs and other criteria. 

The Nominations and Governance sub-committee of the Board has overseen trustee recruitment.  The Chair of the Trust is selected annually by the other trustees from the six openly recruited trustees. 

No single person or organisation has the right to appoint Board members or exercise more than 25% of the voting rights in meetings of the Trust.  The Royal Borough of Kensington and Chelsea has a right within the Trust’s constitution to appoint up to three trustees to the Board, which comprises up to 25% of the voting rights on the Board if the maximum number of trustees have been appointed, or a higher proportion if not all the Board positions are filled. 

Trustees can serve up to two, three-year terms of office, although the Board may authorise a third term of office where it is felt that a serving trustee offer skills that are of particular relevance to the Trust. 

Trustees are not paid, although reasonable costs incurred on Trust business are reimbursed. Furthermore, with Charity Commission approval, during the year we started to reimburse the loss of earnings incurred by two trustees whilst engaged on Trust business to an extent that was significantly above the level of commitment that could reasonably be expected in the normal course of exercising their responsibilities as a trustee. This arrangement reflected the particular circumstances of the Trust in unprecedented times and will come to an end by February 2022. 

New trustees are introduced to the Trust with a formal induction programme.  We also provide ongoing training and development opportunities, based on periodic skill assessments. The names of all those who are currently trustees or who served as a trustee during the year to 31 March 2021 is set out in the section on “Reference and administrative information” at the end of this report.  Further information on our current trustees is available on our website at www.westway.org/trustees. 

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**REPORT OF THE BOARD OF TRUSTEES 2021** 


The Trustees delegate the day-to-day running of the Trust to the Chief Executive.   For the first part of the year under review Alex Russell was Joint Chief Executive until her departure with effect from 31 July 2020 (the other Joint Chief Executive, Mark Lockhart, retired on 31 March 2020 and that specific post was left vacant after that date). Mark Lister was appointed Interim Chief Executive with effect from 1 August 2020 and remained in post until 31 January 2021. A recruitment exercise in spring 2021 to recruit a new CEO concluded with the appointment of Venu Dhupa who took up post full-time on 2 August 2021, although she undertook some work in the role on a part-time basis during June and July 2021. 

The work of trustees is guided by five sub-committees to the Board, each one chaired by a Trustee. The current set of sub-committees is as follows: 

- **Nominations and Governance Committee** :  develops and monitors governance, recruits Trustees and is responsible for succession planning. 

- **Charitable Purposes Committee** :  examines the social impact delivered by the Trust and guides the strategic direction of the Trust’s charitable activities.  This committee also reviews and provides support for engagement and communications with communities and stakeholders; 

- **Property and Place Committee** : guides the strategic use and development of the Westway estate and scrutinises the Trust’s estate management land strategy and practice. 

- **Finance, Audit and Risk Committee** :  oversees the management of risk and finance and supervises the appointment of independent auditors;  and 

- **People Committee (** replaced the Remuneration Committee and adopted a wider remit):    oversees the development and implementation of Westway Trust’s People Strategy, ensuring that this supports the Trust’s overall ambition to become a truly community focused organisation. 

## Westway Trust’s remuneration policy is as follows: 

Westway Trust is committed to ensuring that we pay our staff fairly and in a way that ensures we attract and retain the right skills in order to have the greatest impact in delivering our charitable objectives.  Delivery of our charitable vision and purpose is primarily dependent on the performance and efforts of our staff, which is the largest single element of charitable expenditure.  We aim to recruit, subject to experience, towards the lower point within a salary band, providing scope to be rewarded for excellence and growth within the role.  We do not employ interns without pay.  The Trust is an accredited member of the Living Wage Foundation 

18 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


and has paid the London Living Wage since 2004.  We pay at least the London Living Wage for all our staff other than apprentices and interns.  Westway Trust evaluates each post against other posts in the Trust and market comparators to arrive at salary rates based on a consistent and transparent process, designed to offer a fair pay framework for all salary assessments and decisions.  The pay structure is reassessed on an annual basis.  All staff confirmed in post are subject to regular performance conversations, at least annually but quarterly or more frequently is strongly encouraged. 

Our **Member Organisations** are legal members of our limited company.  The Member Organisations are active local charities and other organisations.  A full list of current Members is available on our website at www.westway.org/members or by request. 

The Trust is committed to upholding its organisational culture in line with the seven overarching principles of the Charity Governance Code 2017:  Organisational Purpose; Leadership; Integrity; Decision Making and Controls; Board Effectiveness; Diversity; and Openness and Accountability. 

## **RISK AND INTERNAL CONTROLS** 

The Trustees continue to review the risks facing the Trust, the controls in place and the effectiveness of mitigating actions.  The Trust has a risk register which records risks and how they are mitigated, including (but not limited to) our income, assets, management, staff, partners and beneficiaries, reputation, financial controls and governance.  The Trustees delegate risk management to the Chief Executive.  The risk register is reviewed regularly by the Finance, Audit & Risk Committee and at least annually by the Board. 

The Trust has a comprehensive insurance policy, reviewed annually, and currently provided by Zurich Insurance. 

The Trustees have considered the nature and extent of any risks and uncertainties that arise as a result in particular of COVID-19.  Any material concerns have been included in the following table, which set out the specific areas that give rise to the potential major strategic risks for the next financial year. 

|**Risk**|**Current mitigating actions**|
|---|---|
|The Trust’s reputation with the community is<br>adversely affected by developments, decisions or<br>lack of progress on key issues of importance to the|Communications plan being reviewed and day<br>to day communications being strengthened.<br>Continuing programme to bring demonstrable|



19 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


community. Community confidence decreases as a community involvement in decision-making as result of poor communication by the Trust. part of the Trust’s move towards putting the community at the heart of everything we do. This includes continuing with community involvement in the selection process for key posts, building on the success of this approach. Offering more touch points around the direction of the Trust, such as community forums about our future plans. Make visible progress on implementing recommendations from the Institutional Racism Review. Covid-19 pandemic situation deteriorates and Capture learnings from first lockdown so we leads to further lockdowns. Reduced income can react quickly. Review budget implications continues due to the pandemic impact on the of new lockdown. Active monitoring and Trust’s tenants and their ability to recover. account management of key tenants, including through short-term support packages as necessary to help tenants manage through this period. Increase levels of income generation and fundraising, develop Income Generation Plan and find ways of diversifying our income streams. 

Ensure Covid-safe working environment for staff and ensure also home-working policy in place, backed up by staff having the necessary equipment to work effectively from home. Risk of ill-health, reduced morale and resignations Further development and implementation of of staff as a result of staff wellbeing issues, Staff Wellbeing Programme, offering a range including concerns around capacity or workload notof activities and other support in response to being addressed. what staff have said they would find helpful. Ensure system in place to handle matters of staff concern. Press ahead with recruitment into key posts, alongside re-assessing work priorities and capacity levels. Failure to find balance between maximising Develop an appropriate Asset Management commercial income and providing more affordable tool and a clear policy. Implement planning and 

20 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


spaces for community use and also maximising reporting. Ensure the policy is publicised income. widely. Major roadworks on the Westway lead to Ensure good working relationships with TfL. disruption of Trust activities or to other problems Agree leeway with TfL on the timetable for any works. Be proactive in asking any safety questions of TfL. Agree emergency planning with TfL in case things do go wrong. Lease with TfL has a compensation clause in the event of serious problems from any roadworks 

## **OTHER MATTERS** 

## **Going concern** 

The Trustees have reviewed our financial position and financial forecasts, taking into account the level of reserves and cash, the effects of the COVID-19 pandemic and our systems of financial control and risk management. 

COVID-19 has impacted the Trust’s rental revenue from its property portfolio, with many tenants being unable to trade due to the lockdown period and suffering from lower turnover when it ended. At 30 September 2021, a bad debt provision of £2,599k was held in the balance sheet to account for revenue that had been invoiced but not yet received. The Trust utilised the Coronavirus Job Retention (JRS) scheme extensively from April – September 2021 as it was unable to provide services to the community due to the impact of the pandemic.  This reduced the net cash outflow for payroll that was required and also reduced costs associated with delivering the services.  The outcome of this is that at 30 September 2021 the Trust still held a positive accumulated reserves balance of £62.718m of which £199,000 is unrestricted £12.84m is designated and Revaluation reserve of £38.8m. Also, cash deposit balances amounted to £5.576m. 

As a result of this and an ongoing review of operational and staffing costs, the Trustees believe that we are well placed to manage operational, financial and COVID-19 risks successfully, that the Trust has adequate resources to continue in operation for the foreseeable future and it is appropriate to adopt the going concern basis of accounting in preparing the annual accounts. 

21 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


## **Investment policy** 

Historically, Trustees have set aside 15% of Trust land, excluding the sports estate, for commercial development to provide shops, offices, light industrial units and other suitable buildings that fit within the Trust’s property strategy.  At the year end, approximately 13% of the estate was developed for commercial purposes.  As the Trust is looking to invest in improvements to its estate, the Trustees do not consider any other form of long-term investment to be relevant and we place surplus cash on deposit, so that it is then available to draw down in the short-term as the need arises.  As well as ongoing improvement works, we are now looking to create a policy for longer term investment of the Trust’s reserves in order to spread risk and ensure the Trust’s financial sustainability. 

This policy will be reviewed in future years. 

## **Reserves policy** 

The Trustees set aside available funds from our income to pay for anticipated costs and for planned refurbishment, development of the estate and environmental improvements.  The Trustees also set aside a small amount each year, when rental income is strong, to allow for some flexibility in periods of economic downturn.  In this financial year, there were no funds set aside due to the economic downturn brought about by the Covid 19 Pandemic. (2020: £759,000).  Capital commitments at the year-end amounted to £nil (2020: nil) see note 21. 

In order to protect our charitable projects from the loss of short-term funding, a target for a minimum level of free reserves has been set at three months’ grants receipts for project delivery together with three months’ expenditure on the Trust’s infrastructure and property and estate management functions.  Therefore, our general reserves target is £422,320. 

However, our free, undesignated reserves amounted to £199,000 as at 31 March 2021.   This is below target due to the impact of COVID-19 but £750,000 had been put into designated funds as a contingency in 2019/20 and the Trust will continue to monitor our free reserves level within our financial management process. 

Note 19 to the financial statements gives more detail on the purposes of the designated funds and the reasons for holding those funds.  This policy is reviewed every year. 

## **Treasury policy** 

The Trust deposits its cash funds in a pooled deposit fund or with UK-based financial institutions authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.  We only deposit funds in institutions with acceptable credit ratings.  We make a variety of instant access, short-term and medium-term deposits to allow funds to be accessed according to the needs of the Trust’s forecast cash flow.  In order to protect the ordinary activities 

22 



**REPORT OF THE BOARD OF TRUSTEES 2021** 


of the Trust from unforeseen events while the Trust plans and undertakes estate improvement, we will seek to hold treasury reserves of £500,000 or more at all times. 

## **Funds held as custodian trustee on behalf of others** 

The Trust asks most of its commercial tenants to pay a refundable deposit.  It is our policy not to use the deposits to fund charitable or other activity.  At the year-end, tenant deposits amounted to £384k. 

## **Auditors** 

Our auditors, Moore Kingston Smith LLP, have indicated their willingness to continue in office and it is proposed that they be re-appointed as auditors for the ensuing year. 

23 



**STATEMENT OF TRUSTEES’ RESPONSIBILITES** 


The Trustees (who are also directors of Westway Trust for the purpose of company law) 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). 

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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statement;  and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The Trustees are responsible for keeping proper accounting records that 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 and the Charities Act 2011 and regulations made thereunder.  They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

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

In so far as the Trustees are aware: 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

Signed on behalf of the Trustees 


> 26 January 2022 

Toby Laurent Belson Chair 

24 




## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST** 

## **Opinion** 

We have audited the financial statements of Westway Trust (‘the company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial 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 charitable company'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 trustees with respect to going concern are described in the relevant sections of this report. 

25 




**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST** 

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to 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: 

- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ annual report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the company 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 where the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. Or 

26 




**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST** 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a Strategic Report. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s 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 charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (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 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 is detailed below. 

## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and 

27 




## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST** 

implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. 

Our approach was as follows: 

- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are [the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council] 

- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. 

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

28 




**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST** 

- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **Use of our report** 

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

Date: 26 January 2022 


## **Shivani Kothari** (Senior Statutory Auditor) 

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor Devonshire House 

60 Goswell Road 

London 

EC1M 7AD 

29 




## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** 

|**Note**<br>**Income**<br>**Income from continuing activities**<br>_Income from charitable activities_<br>Grants, earned and other income<br>2<br>Miscellaneous income<br>Donated asset<br>_Income from investments_<br>Land and property rentals<br>Covid – 19 Concession<br>Car Park income<br>Miscellaneous income<br>Interest receivable<br>_Other income_<br>Property service charges<br>Miscellaneous income<br>**Total income**<br>**Expenditure**<br>**Expenditure on continuing activities**<br>_Expenditure on charitable activities_<br>3<br>_Investment management costs_<br>Property management<br>6<br>**Total expenditure**<br>Net gain/(loss) on investments<br>11<br>**Total net income (expenditure) before transfers**<br>Transfers between funds<br>9<br>**Net income (expenditure) after transfers**<br>**Net movement in funds**<br>_Reconciliation of funds_<br>_Balances brought forward at 1 April 2020_<br>**Balances carried forward at**<br>**31 March 2021**<br>19|<br>**General**<br>**funds**<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total 2021**<br>**_Total_**<br>**_2020_**<br>_(note 26)_<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**_£'000_**<br> <br>396<br>-<br>478<br>874<br>478<br>7<br>-<br>2<br>9<br>25<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**403**<br>**-**<br>**480**<br>**883**<br>503|
||4,774<br>-<br>-<br>4,774<br>4,740<br>(213)<br>-<br>-<br>(213)<br>103<br>-<br>-<br>103<br>141<br>-<br>-<br>-<br>-<br>147<br>11<br>-<br>-<br>11<br>32<br>-<br>-<br>326<br>326<br>442<br>96<br>-<br>-<br>96<br>49|
||**5,173**<br>**-**<br>**807**<br>**5,980**<br>6,055|
||<br>1,933<br>16<br>885<br>2,834<br>4,297<br> <br>3,649<br>99<br>252<br>4,000<br>1,834|
||**5,582**<br>**115**<br>**1,136**<br>**6,833**<br>6,131|
||<br>-<br>(370)<br>-<br>(370)<br>1,534|
||**(409)**<br>**(485)**<br>**(469)**<br>**(1,223)**<br>1,458|
||<br>5<br>-<br>(5)<br>-<br>-|
||**(404)**<br>**(485)**<br>**(470)**<br>**(1,223)**<br>1,458|
|||
||**(404)**<br>**(485)**<br>**(470)**<br>**(1,223)**<br>**1,458**|
||603<br>52,142<br>11,196<br>63,941<br>62,483|
||<br>**199**<br>**51,657**<br>**10,862**<br>**62,718**<br>**63,941**|



All gains and losses recognised in the year are included on the Statement of Financial Activities. The accompanying notes form part of these financial statements. 

30 



## **BALANCE SHEET AT 31 MARCH 2021** 


|**Note**|**2021**<br>**_2020_**|**2021**<br>**_2020_**|
|---|---|---|
|**£'000**|**£'000**<br>**_£'000_**|**_£'000_**|
|**Non-current assets**|||
|Charitable buildings<br>10|2,060|_2,505_|
|Investment property<br>11|55,196|_55,566_|
|Other tangible fixed assets<br>12|50|_84_|
|Intangible assets<br>13|10|_18_|
|Accrued income<br>14|1,204|_1,429_|
||**58,520**|**_59,602_**|
||||
|**Current assets**|||
|Debtors<br>15<br>670|<br>_568_||
|Short term deposits<br>3,666|<br>_4,666_||
|Cash at bank and in hand<br>1,612|<br>_574_||
|5,948|<br>_5,808_||
|**Liabilities:**|||
|amounts fallingdue within oneyear<br>16<br>(1,478)|_(1,245)_||
||||
|**Net current assets**|**4,470**|**_4,563_**|
||||
|**Total assets less current liabilities**|**62,990**|**_64,165_**|
||||
|**Liabilities:**|||
|amounts falling due after more than<br>one year<br>17|(273)|_(224)_|
||||
|**Net assets**|**62,718**|**_63,941_**|
||||
||||
|**Funds**<br>19|||
|Unrestricted funds|||
|Accumulated fund|199|_603_|
|Revaluation reserve|38,818|_39,188_|
|Other designated funds|12,840|_12,954_|
||**51,858**|**_52,745_**|
||||
|**Restricted funds**|**10,861**|**_11,196_**|
||||
||**62,718**|**_63,941_**|



Approved by the Trustees on 20 January 2022 and signed on their behalf 


Toby Laurent Belson, Chair 

31 



## **CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021** 


|**Note**<br>**2021**|**Note**<br>**2021**|**_2020_**|**_2020_**|
|---|---|---|---|
|**£'000**|**£'000**|**_£'000_**|**_£'000_**|
|**Net cash inflow from**||||
|**operating activities**<br>24|**29**||**_1,010_**|
|||||
|**Interest and servicing of loans**||||
|Bank interest received<br>9||_31_||
|Other interest received<br>-||_-_||
|**Net interest**|**9**||**_31_**|
|||||
|**Capital expenditure**||||
|Payments to improve charitable<br>buildings<br>10<br>-||_-_||
|Payments to improve investment<br>buildings<br>11<br>-||_(12)_||
|Payments to acquire other charity fixed<br>assets<br>12<br>-||_(31)_||
|Payments to acquire intangible assets<br>13<br>-||_-_||
|**Total capital expenditure**|**-**||**_(43)_**|
|||||
|**Increase/(Decrease) in cash and bank**<br>**deposits**<br>26|**38**||**_998_**|
|||||
|||||
|**Represented by:**||||
|||||
|Increase/(decrease) in short-term deposits|(1,000)||_826_|
|Increase/(decrease) in cash|1,038||_172_|
|||||
|25|**38**||**_998_**|



32 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **1. ACCOUNTING POLICIES** 

## **1.1 Form and content of accounts** 

The accounts are prepared in accordance with the requirements of the Trust’s constitution, the Companies Act 2006, the Charities Act 2011, Statement of Recommended Practice “Accounting and Reporting by Charities”(SORP) revised by the Charity Commission in 2015 and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.  The order of certain items in the Statement of Financial Activities (SOFA) and their headings have been adapted, as required by SORP, in order to present a true and fair view of the nature and scale of the activities of the Trust.  The financial statements are stated in Pounds Sterling, which is the transactional currency of the Trust. 

## **1.2 Cost convention** 

The accounts have been prepared under the historical cost convention, as modified by the revaluation of investment property and the measurement of financial assets and liabilities at fair value. 

## **1.3 Going concern** 

COVID-19 has impacted the Trusts rental revenue from its property portfolio, with many tenants being unable to trade due to the lockdown period and suffering from lower turnover when it ended.  At 31 March 2021, a bad debt provision of £2,599k was held in the balance sheet to account for revenue that had been invoiced but not yet received. The Trust utilised the Coronavirus Job Retention (CJRS) scheme extensively as it was unable to provide services to the community due to the impact of the pandemic.  This reduced the net cash outflow for payroll that was required and also reduced costs associated with delivering the services.  The outcome of this is that at 31 March 2021 the Trust still held a positive accumulated reserves balance and cash deposit balances in excess of £3m. 

Further to this, the Trust is providing support in an attempt to enable Tenants to continue to operate and be able to resume trading when the effects of the pandemic are reduced.  It is also reviewing staffing levels required for its future work and reviewing its overall cost base in order to reduce operating expenses and cash outflows.  The Trust will also continue to utilise the CJRS in future to further reduce cash outflows while it is unable to operate effectively in the community.  Designated reserves are also available that can support the Trust’s activities in the medium-term, although these would need to be re-built once the impact of COVID-19 lessens and reduced costs alongside increased revenues enable the Trust to return to an operating surplus. 

Although there are risks with this strategy, management has determined that the actions that it has taken are sufficient to mitigate the uncertainty and has therefore prepared the financial statements on a going concern basis as it has a reasonable expectation that the Trust will continue in operational existence for the foreseeable future. 

## **1.4 Critical estimates and judgements** 

The Trust’s significant accounting policies are stated in this note.  Not all of these significant accounting policies require the Trustees to make difficult, subjective or complex judgements or estimates.  The assets and liabilities of the Trust that are subject to a significant degree of estimation or judgement are: the fair value of the Trust’s investment properties; the cumulative amortisation and depreciation of assets; the timing of capitalisation of costs of new developments, dependent on probable planning permission; the assets and liabilities of the defined-benefit pension scheme; and the recoverability of trade debt.  The Trustees consider the valuation of investment properties to be critical because of the level of complexity, judgement or estimation involved and its impact on the financial statements.  These judgements involve assumptions or estimates in respect of future events.  Actual results may differ from these estimates.  The valuation of the Trust’s property portfolio is inherently subjective due to, among other factors, the individual nature of each property, its location and the expected future rental income.  As a result, the valuation the Trustees place on the property portfolio is subject to a degree of uncertainty and is made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction flow in the commercial property market.  Other estimates that affect the Statement of Financial Activities comprise the allocation of support costs as detailed in policy 1.10. 

## **1.5 Income** 

Income other than grant income is recognised at the fair value of the consideration received or receivable for goods and services provided.  Fair value takes into account settlement discounts allowed on sales. 

## **1.6 Grants received** 

Where grants are received for specific purposes they are credited to the restricted funds of the Trust.  Grants that are awarded for a specific period are recognised in the SOFA in that period.  Capital grants are recognised in the SOFA to the 

33 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


extent that the Trust has met the conditions for draw-down of those grants.  Otherwise, grants are shown as income in the period in which they are received. 

## **1.7 Grants payable** 

Grants payable as cash are accounted for in the period in which they are approved.  Certain properties are set aside for letting to local charitable groups at one-third of market rent.  The full commercial rent is shown as investment income and the corresponding two-thirds reduction is shown as grants payable.  This is a departure from the standard treatment of rent under FRS102; the Trustees consider this provides a more useful presentation of the deployment of the Trust’s resources than a simple statement of the discounted rent.  Grants awarded to Member Organisations of the Trust, including grants by way of discounted rent, are identified within Note 5 to the accounts. 

## **1.8 Rents** 

## **1.8.1 Rents Receivable** 

Rental income receivable from tenants under operating leases is recognised on a straight-line, accruals basis over the term of each lease.  Where chargeable, Value Added Tax is excluded from all amounts.  Income arising as a result of rent reviews is recognised when agreement of the new lease terms is reasonably certain. 

Premiums receivable from tenants to surrender their lease obligations are recognised in the SOFA.  The cost of any lease incentives, such as rent-free periods and stepped rentals, are spread over the minimum, non-cancellable term of each lease.  Rents recognised in the SOFA in advance of becoming payable by the tenant are not available for disbursement on charitable activities and are transferred to a designated accrued income fund and are released as they become payable. 

## **1.8.2 Accrued income** 

Under FRS102, the Trust must accrue for the average annual rents receivable under property leases irrespective of whether that level of rent is currently due from the tenant, as set out in accounting policy 1.8.1.  Accrued income arises when there are significant incentives to enter into a lease, such as a rent-free period at the beginning of a lease or a stepped rental.  The accrued rent is not available for disbursement on charitable activities until receivable and is held as a debtor on the balance sheet.  The balance represents the excess of income recognised in the Statement of Financial Activities in advance of it being payable by the tenant.  The balance is reduced by instalments as the income becomes due from the tenant. 

## **1.9 Property service charges** 

Income and expenditure arising from the service charge accounts of tenanted buildings are included within these accounts at their gross values.  The Trust is accountable to its tenants for the expenditure incurred on maintaining these properties and, under the terms of the leases, the accounting records and vouchers are available for their inspection on demand. 

## **1.10 Basis of allocation of support costs** 

Staff and other support costs are allocated to the various activities of the Trust based upon the direct staff costs involved in delivering direct charitable activities and on the estimated time devoted to the governance of the Trust. 

## **1.11 Pension costs** 

## **1.11.1 Defined benefits pension scheme** 

The Trust participates in a defined benefits pension scheme under a local government scheme, the assets of which are held wholly independently from those of the Trust.  Pension costs in respect of employees who are members of this scheme are charged to the SOFA so as to spread the cost of pensions over the service lives of employees.  The current service cost and net return on pension assets are charged to resources expended; actuarial gains and losses are shown separately on the SOFA.  Any deficit of scheme liabilities over scheme assets is recognised on the balance sheet and a deficit reserve carried in the designated funds of the Trust as explained within the reserves policy.  Net pension assets in excess of amounts that could be recovered through reduced contributions in future years, if any, are not recognised in the balance sheet due to the uncertain nature of such assets and the high level of dependency of the calculation of pension liabilities upon actuarial estimates that cannot be guaranteed. 

## **1.11.2 Defined contributions pension scheme** 

Employer contributions to the Trust’s defined contribution Group Personal Pension Scheme are charged to the SOFA on an accruals basis. 

34 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **1.12 Value Added Tax** 

The Trust is partially exempt for VAT purposes.  Where input VAT is not recoverable, it is included in the accounts as part of the expenditure on which it was incurred. 

## **1.13 Volunteers** 

The Trust provides volunteering opportunities in a number of its activities.  These are currently concentrated in the Grounds and Gardens and the Learning teams.  The work performed by the volunteers is well appreciated and is explained in the Trustees’ Report.  No financial appraisal of the value of volunteering is included within these accounts. 

## **1.14 Land and buildings** 

**1.14.1 Land** : the Trust has a 130-year lease with a total historical cost of £280,000.  The land is included in the property valued as an investment asset. 

**1.14.2 Investment property** : the Trust has developed some of its land with commercial building so as to provide a source of income.  These buildings and land are carried at open market value as set out in Note 12.  Movements on unrealised revaluation surpluses are shown separately on the face of the Statement of Financial Activities and the cumulative unrealised surplus is shown as a designated fund in the balance sheet.  Investment property valuation is reduced by the cumulative value of accrued income. 

**1.14.3 Charitable buildings** : buildings occupied by the Trust for its own charitable purposes (“charitable buildings”) are shown at cost less depreciation.  This has the effect of setting the cost of these buildings against the income of the Trust over the expected useful lives of the buildings.  Buildings are maintained in a constant state of sound repair; the amount at which the buildings are carried in the balance sheet is reviewed annually and reduced to the extent that it is considered that there has been an impairment of value. 

## **1.15 Intangible assets** 

Intangible assets comprise: 

**1.15.1 Software:** the acquisition and configuration costs of software, less amortisation.  Software that is no longer in use is written off; and 

**1.15.2 Social investments** :  the lower of cost or fair value of investment in social enterprises, where fair value is assessed by the Trustees at the balance sheet date. 

## **1.16 Capitalisation** 

**1.16.1 Property developments** : The costs of developments are written-off in the year in which they are incurred until the point that probable planning consent is obtained and the project has a realistic likelihood of being built.  Where projects are curtailed, all previously capitalised costs are written-off. 

**1.16.2 Threshold** : Goods acquired are capitalised where they represent an asset of continuing value to the Trust and the cost exceeds £1,000 per item or group of items. 

## **1.17 Depreciation and amortisation** 

Rates of depreciation and amortisation are designed to write-off assets over their useful economic lives. 

## **1.17.1 Charitable buildings:** 

(a) Buildings are depreciated at a rate of 2% per annum on cost. 

(b) Major refurbishments: depreciation is charged annually at the rate of 10% on cost. 

(c) Partitioning to increase short-term office space: depreciation is charged annually at the rate of 20% on cost. 

**1.17.2 Landscaping and environmental improvements** : expenditure is written-off in the year in which it is incurred. 

**1.17.3 Office furniture and fixtures** : depreciation is charged at the rate of 20% p.a.  on cost. 

**1.17.4 Computers and software** : depreciation is charged at the rate of 33.3% p.a.  on cost. 

**1.17.5 Intangible assets (software)** : amortisation is charged at the rate of 33.3% p.a.  on cost. 

35 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **1.18 Bad debts** 

Provisions are made against monies due to the Trust where the debt is overdue and recovery is in doubt.  Debts are written-off according to procedures agreed by the Trustees. 

## **1.19 Other financial instruments** 

Basic financial instruments are recognised as the amount payable or receivable when the instrument is first recognised together with any subsequent transaction costs, but modified in respect of trade debtors for an assessment of potential bad debt, as set out in policy 1.18. 

## **1.20 Restricted funds** 

**1.20.1 Capital grants** : Grants that are received for capital projects are credited to a restricted fund.  Subsequent charges for depreciation of those capital assets are charged directly to the fund in the statement of financial activities.  The balance of such grants are released to general funds when they are considered to be no longer repayable. 

**1.20.2 Service charges** : Provisions are made in the service charge accounts for tenanted buildings towards the expected costs of building repairs that may be required in the future in accordance with the terms of the relevant leases.  Interest on the unexpended balances is credited to those balances.  These funds may only be spent on the specific tenanted buildings to which they relate. 

**1.20.3 Other project grants** : Grants that are received for specified purposes are credited to a restricted fund. Expenditure that is attributable to such grants is charged directly to the fund in the statement of financial activities. 

## **1.21 Designated funds** 

**1.21.1 Buildings funds** : The balances on the funds represent investment and charity land and buildings.  The capital costs of buildings that are met from the Trust’s own resources are represented by designated buildings funds.  Depreciation is charged directly against the fund in the statement of financial activities. 

**1.21.2 Revaluation reserve** : Unrealised surpluses or deficits arising upon valuation of the Trust’s investment property are credited or debited directly to a designated fund to indicate that any surplus is also represented by buildings rather than cash. 

**1.21.3 Refurbishment fund** : Transfers are made into these funds to meet the anticipated costs of renovating depreciating assets at the end of their anticipated lives, such as the playing surfaces of sports facilities and the current commercial rental portfolio.  In addition, funds are transferred for capital developments to provide reserves to meet, or contribute, so far as reserves permit, towards the cost of capital expenditure that is not funded by loans or grants. 

**1.21.4 Development fund** : Transfers are made into these funds to provide reserves to meet, or contribute, so far as reserves permit, towards the cost of capital expenditure that is not funded by loans or grants. 

**1.21.5 Maintenance funds** : It is the Trust’s policy to set aside an amount of its surplus in years when rental income is strong in order to allow for some flexibility during periods of economic downturn. 

**1.21.6 Pension reserve** : The reserve represents the recognised surplus or deficit, if any, on the Trust’s defined benefits pension scheme.  Contributions are paid into the scheme in accordance with the recommendations of the scheme actuary and may be made over a number of years to spread the cost of funding the deficit over the future service lives of active scheme members. 

36 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **2. INCOME FROM CHARITABLE ACTIVITIES** 

|2021|_2020_|
|---|---|
|Earned<br>income<br>Restricted<br>grants<br>Grenfell<br>Response<br>Total|_Earned_<br>_income_<br>_Restricted_<br>_grants_<br>_Grenfell_<br>_Response_<br>_Total_|
|_£'000_<br>_£'000_<br>_£'000_<br>_£'000_|_£'000_<br>_£'000_<br>_£'000_<br>_£'000_|
|||
|Social Wellbeing<br>-<br>6<br>8<br>14|_-_<br>_5_<br>_-_<br>_5_|
|Environmental<br>Well being<br>-<br>-<br>-<br>-|_-_<br>_-_<br>_-_<br>_-_|
|Economic<br>Wellbeing<br>403<br>466<br>-<br>869|_21_<br>_477_<br>_-_<br>_498_|
|**403**<br>**472**<br>**8**<br>**883**|**_21_**<br>**_482_**<br>**_-_**<br>**_503_**|
|||



37 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2020** 


## **2.  INCOME FROM CHARITABLE ACTIVITIES (continued)** 

|**2.  INCOME FROM CHARITABLE ACTIVITIES (continued)**||
|---|---|
|**2021**<br>**Earned**<br>**income**<br>**Grants and**<br>**Restricted**<br>**Income**<br>**Grenfell**<br>**Response**<br>**Total**<br>**Source**<br>**Programme**<br>£’000<br>£’000<br>£’000<br>£’000<br>Royal Borough of Kensington and<br>Chelsea<br>Adult Learning<br>-<br>236<br>-<br>236<br>Supplementary Schools<br>-<br>76<br>-<br>76<br>Crèche<br>4<br>91<br>-<br>96<br>Parenting<br>-<br>28<br>-<br>28<br>Early Years<br>-<br>16<br>-<br>16<br>Sport bursary<br>-<br>2<br>-<br>2<br>Grenfell Response<br>-<br>-<br>8<br>8<br>Other<br>-<br>-<br>-<br>-<br>**Sub-total RBKC**<br>**4**<br>**449**<br>**8**<br>**462**<br>John Lyon's Charity<br>Supplementary Schools<br>-<br>8<br>-<br>8<br>Private Crèche usage<br>Crèche<br>13<br>-<br>-<br>13<br>GLA<br>Enterprise Pods<br>-<br>10<br>-<br>10<br>Bay 20 usage<br>Community Usage<br>-<br>-<br>-<br>-<br>DWP<br>CJRS COVID 19 Grants<br>385<br>-<br>-<br>385<br>Sport England<br>Go Gen Project<br>-<br>5<br>-<br>5<br>**Total**<br>**403**<br>**472**<br>**8**<br>**883**|**_2020_**<br> **_Earned income_**<br>**Grants and**<br>**Restricted**<br>**Income**<br>**_Grenfell_**<br>**_Response_**<br>**_Total_**<br>_£’000_<br>_£’000_<br>_£’000_<br>_£’000_<br>-<br>181<br>-<br>181<br>-<br>76<br>-<br>76<br>-<br>119<br>-<br>119<br>-<br>28<br>-<br>28<br>-<br>16<br>-<br>16<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
||**-**<br>**420**<br>**-**<br>**420**<br>-<br>40<br>-<br>40<br>-<br>16<br>-<br>16<br>-<br>-<br>-<br>-<br>21<br>-<br>-<br>21<br>-<br>6<br>-<br>6|
||**21**<br>**482**<br>**-**<br>**503**|



38 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **3. EXPENDITURE ON CHARITABLE ACTIVITIES** 

|**2021**<br>**Social Wellbeing**<br>Engagement<br>Health and wellbeing<br>Arts, culture and community<br>grants<br>Grenfell response<br>**Environmental**<br>**Wellbeing**<br>**Economic Wellbeing**<br>Stewardship (including<br>property development)<br>Economy and Skills<br>**Made up of:**<br>Grants awarded<br>Community consultation<br>Materials and project costs<br>Staff Costs<br>Other staff costs<br>Improvements, repairs and<br>maintenance<br>Car Park expenditure<br>Environment projects<br>Ground and Garden<br>Maintenance<br>Insurance and other<br>establishment costs<br>IT costs<br>Communications and<br>marketing<br>Governance<br>Professional fees<br>Other overheads<br>Bank charges<br>Depreciation<br>_2020_|**General**<br>**funds**<br>**Allocated**<br>**Support**<br>**Costs**<br>(Note 7)<br>**Total**<br>**(**including<br>support<br>costs)<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**Charitable**<br>**Expenditure**<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>90<br>156<br>246<br>-<br>-<br>246<br>-<br>-<br>-<br>-<br>-<br>-<br>626<br>52<br>678<br>1<br>400<br>1,079<br>34<br>0<br>34<br>7<br>6<br>47|
|---|---|
||**750**<br>**208**<br>**958**<br>**8**<br>**406**<br>**1,372**|
||**203**<br>**157**<br>**360**<br>**-**<br>**-**<br>**360**<br>93<br>156<br>249<br>8<br>0<br>257<br>106<br>260<br>366<br>-<br>479<br>845|
||**199**<br>**416**<br>**615**<br>**8**<br>**479**<br>**1,102**|
||**1,152**<br>**781**<br>**1,933**<br>**16**<br>**885**<br>**2,834**|
||424<br>-<br>**424**<br>7<br>71<br>**502**<br>-<br>-<br>**-**<br>-<br>-<br>**-**<br>3<br>2<br>**5**<br>-<br>24<br>**29**<br>597<br>302<br>**899**<br>-<br>316<br>**1,215**<br>27<br>113<br>**140**<br>-<br>5<br>**165**<br>26<br>1<br>**27**<br>8<br>-<br>**35**<br>-<br>-<br>**-**<br>-<br>-<br>**-**<br>6<br>-<br>**6**<br>-<br>-<br>**6**<br>6<br>-<br>**6**<br>-<br>-<br>**6**<br>85<br>37<br>**122**<br>-<br>36<br>**158**<br>-<br>142<br>**142**<br>-<br>19<br>**161**<br>-<br>10<br>**10**<br>-<br>-<br>**10**<br>-<br>24<br>**24**<br>-<br>-<br>**24**<br>11<br>53<br>**64**<br>-<br>9<br>**73**<br>(33)<br>30<br>**(3)**<br>-<br>5<br>**2**<br>-<br>2<br>**2**<br>-<br>-<br>**2**<br>-<br>65<br>**65**<br>1<br>400<br>**466**|
||**1,152**<br>**781**<br>**1,933**<br>**16**<br>**885**<br>**2,834**|
||2,179<br>992<br>3,171<br>200<br>926<br>4,297|



Comparative figures for 2020 are analysed in Note 27. 

39 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **4. GRANTS AWARDED** 

|**4. GRANTS AWARDED**||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|||Supplementary|<br>Small grants to|<br>Green|Bay 20|COVID 19|Young|<br>Sports Grants|Grenfell|Rent subsidies|**Grand Total**|
|||Schools|local charities|<br>infrastructure||Support|achievers||Response|to charity||
||||and community||||awards|||tenants||
||||groups|||||||||
|**2021**||£|£|£|£|£|£|£|£|£|**£**|
|24 Hearts CIC||-|3,406|<br>-|-|-|-|-|-|-|**3,406**|
|ACAVA||-|-|-|-|-|-|-|-|21,750|**21,750**|
|Age UK Kensington & Chelsea||-|-|-|-|-|-|-|-|25,477|**25,477**|
|An Nisa Empowerment Response||7,572|-|-|-|-|-|-|-|-|**7,572**|
|Azza Supplementary School||8,762|-|-|-|-|-|-|-|-|**8,762**|
|Baraka Youth Association||6,478|-|-|-|607|650|<br>-|-|-|**7,735**|
|Barlby Primary School||-|964|<br>-|-|-|-|-|-|-|**964**|
|Bevington Primary School||-|867|<br>-|-|-|-|-|-|-|**867**|
|Bike Works CIC||-|-|-|-|-|-|-|-|10,250|**10,250**|
|C.A.S.H||-|-|-|-|-|-|-|-|8,140|**8,140**|
|Charles Phillips Photography||-|-|-|-|500|-|-|-|-|**500**|
|Colville Primary School||-|1,156|<br>-|-|-|-|-|-|-|**1,156**|
|Cruse Bereavement Care||-|-|-|-|-|-|-|-|9,600|**9,600**|
|Dadihiye Somali Organisation||-|2,500|<br>-|-|-|-|-|-|4,095|**6,595**|
|Dalgarno Supplementary School||6,204|-|-|-|150|750|<br>-|-|-|**7,104**|
|Dar Al-Arqam / MCWG||3,177|-|-|-|-|-|-|-|-|**3,177**|
|Eritrean Parents' & Children's||||||||||||
|Association||-|-|-|-|-|-|-|-|2,740|**2,740**|
|Eritrean Parents & Children Assoc.||5,282|-|-|-|-|-|-|-|-|**5,282**|
|Golborne & Maxilla Children's||||||||||||
|Centre||-|-|2,685|-|-|-|-|-|-|**2,685**|



40 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|**Grants Awarded**<br>**(Continued)**<br>**2021**<br>Heath Farm Equine<br>Homemade Teachers CIC<br>Instituto Español Vicente Cañada<br>Blanch<br>Isis Amlak (through consultancy)<br>Just Solutions 123 Limited<br>K & C Mental Health Association<br>(Mind)<br>Kensington & Chelsea Social<br>Council<br>Kids On The Green<br>Lancaster West Residents<br>Association<br>Making Communities Work &<br>Grow<br>Metronomes Steel Orchestra<br>Midaye Somali Development<br>Network<br>Migrants Organise<br>Neighbourhood Doulas<br>New Maxilla Social Club<br>North Kensington Hearts and<br>Minds CIC<br>North Kensington Young Peoples<br>Music Aca<br>Notting Hill Community Church<br>Notting Hill Therapy Clinic<br>Outreach CI<br>Nova New Opportunities||Supplementary<br>Schools<br>Small grants to<br>local charities and<br>community<br>groups<br>Green<br>infrastructure<br>Bay 20<br>COVID 19<br>Support<br>Young<br>achievers<br>awards<br>Sports Grants<br>Grenfell<br>Response<br>Rent subsidies to<br>charity tenants<br>**Grand Totals**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|
|---|---|---|
||||
|||-<br>4,920<br>-<br>-<br>1,968<br>-<br>-<br>-<br>-<br>**6,888**<br>-<br>5,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**5,000**<br>-<br>2,280<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**2,280**<br>-<br>1,250<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**1,250**<br>-<br>-<br>160<br>-<br>-<br>-<br>-<br>600<br>-<br>**760**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>32,280<br>**32,280**<br>-<br>1,234<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**1,234**<br>-<br>3,569<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**3,569**<br>-<br>-<br>19,500<br>-<br>-<br>-<br>-<br>-<br>-<br>**19,500**<br>-<br>-<br>-<br>-<br>-<br>900<br>-<br>-<br>6,340<br>**7,240**<br>-<br>-<br>-<br>-<br>4,080<br>-<br>-<br>-<br>-<br>**4,080**<br>6,750<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>17,020<br>**23,770**<br>-<br>2,500<br>-<br>-<br>-<br>-<br>-<br>-<br>28,600<br>**31,100**<br>-<br>3,600<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**3,600**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>13,550<br>**13,550**<br>-<br>-<br>-<br>37,000<br>-<br>-<br>-<br>-<br>-<br>**37,000**<br>-<br>-<br>-<br>-<br>1,990<br>-<br>-<br>-<br>-<br>**1,990**<br>-<br>-<br>-<br>-<br>2,000<br>-<br>-<br>500<br>-<br>**2,500**<br>-<br>4,290<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**4,290**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>29,901<br>**29,901**|
||||
||||
||||



41 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|**Grants Awarded**<br>**(Continued)**<br>**2021**<br>Pavilion Hive<br>Pimento<br>Portobello Film Festival<br>Portobello Live Arts<br>RISE KIDS CIC<br>Shareefa Energy<br>Solidarity Sports<br>Somali Women's Association<br>St Giles Trust<br>Streetrunner<br>Sudanese Nubian Association UK<br>Swinbrook Residents Association<br>Teit Ethopia Supplementary<br>School<br>Tendercare Nurseries Ltd<br>The Bevington Trust<br>The First Georgian Supp School<br>The Gheez Rite Community Assoc<br>The Hip-Hop Shakespeare<br>Foundation Ltd<br>The Kensington and Chelsea<br>Foundation<br>The SPACE<br>The Warrior Programme<br>The West London Turkish School|Adult & Community<br>Learning<br>Artists<br>Professional<br>Development,<br>training and<br>commissions<br>Capacity<br>Strengthening<br>Covid-19<br>support<br>Festival<br>Funds<br>Grenfell<br>Response<br>Green<br>Infrastructure<br>Fund<br>Rent<br>subsidies to<br>charity<br>tenants<br>Small grants to<br>local charities and<br>community<br>groups<br>**Grand Total**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|Adult & Community<br>Learning<br>Artists<br>Professional<br>Development,<br>training and<br>commissions<br>Capacity<br>Strengthening<br>Covid-19<br>support<br>Festival<br>Funds<br>Grenfell<br>Response<br>Green<br>Infrastructure<br>Fund<br>Rent<br>subsidies to<br>charity<br>tenants<br>Small grants to<br>local charities and<br>community<br>groups<br>**Grand Total**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|
|---|---|---|
||-<br>-<br>-<br>-<br>5,000<br>-<br>-<br>-<br>-<br>**5,000**<br>7,623<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**7,623**<br>-<br>-<br>-<br>-<br>5,000<br>-<br>-<br>-<br>-<br>**5,000**<br>-<br>5,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**5,000**<br>-<br>-<br>-<br>-<br>2,000<br>-<br>-<br>-<br>-<br>**2,000**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,000<br>-<br>**2,000**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,000<br>-<br>**2,000**<br>5,199<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**5,199**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>6,940<br>**6,940**<br>-<br>-<br>-<br>-<br>6,430<br>-<br>-<br>-<br>-<br>**6,430**<br>-<br>2,796<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**2,796**<br>-<br>20,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**20,000**<br>4,878<br>4,888<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**9,766**<br>-<br>-<br>158<br>-<br>-<br>-<br>-<br>-<br>-<br>**158**<br>-<br>5,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**5,000**<br>2,187<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**2,187**<br>1,793<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**1,793**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>9,780<br>**9,780**<br>-<br>-<br>-<br>-<br>2,000<br>-<br>-<br>-<br>-<br>**2,000**<br>-<br>4,960<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**4,960**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>5,880<br>**5,880**<br>2,187<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**2,187**||
|||-<br>**5,000**|
||||
|||-<br>**7,623**|
||||
|||-<br>**5,000**|
||||
|||-<br>**5,000**|
||||
|||-<br>**2,000**|
||||
|||-<br>**2,000**|
||||
|||-<br>**2,000**|
||||
|||-<br>**5,199**|



42 



## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|**Grants Awarded**<br>**(Continued)**<br>**2021**<br>Thomas Jones Primary School<br>Tudor Environmental (UK) Ltd<br>UCAN CIC<br>Volunteer Centre K & C<br>Walk and Cycle London<br>Watusi 87<br>Adult Learning Programme<br>Women’s Association for African N<br>& D<br>WSHA||Adult & Community<br>Learning<br>Artists<br>Professional<br>Development,<br>training and<br>commissions<br>Capacity<br>Strengthening<br>Covid-19<br>support<br>Festival<br>Funds<br>Grenfell<br>Response<br>Green<br>Infrastructure<br>Fund<br>Rent<br>subsidies to<br>charity<br>tenants<br>Small grants to<br>local charities and<br>community<br>groups<br>**Grand Total**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|Adult & Community<br>Learning<br>Artists<br>Professional<br>Development,<br>training and<br>commissions<br>Capacity<br>Strengthening<br>Covid-19<br>support<br>Festival<br>Funds<br>Grenfell<br>Response<br>Green<br>Infrastructure<br>Fund<br>Rent<br>subsidies to<br>charity<br>tenants<br>Small grants to<br>local charities and<br>community<br>groups<br>**Grand Total**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|Adult & Community<br>Learning<br>Artists<br>Professional<br>Development,<br>training and<br>commissions<br>Capacity<br>Strengthening<br>Covid-19<br>support<br>Festival<br>Funds<br>Grenfell<br>Response<br>Green<br>Infrastructure<br>Fund<br>Rent<br>subsidies to<br>charity<br>tenants<br>Small grants to<br>local charities and<br>community<br>groups<br>**Grand Total**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>**£**|
|---|---|---|---|---|
||||||
|||-<br>578<br>-<br>-<br>-<br>-<br><br>-<br>-<br>27<br>-<br>-<br>-<br><br>-<br>-<br>-<br>-<br>150<br>750<br><br>-<br>-<br>-<br>-<br>-<br>-<br><br>-<br>-<br>-<br>-<br>5,000<br>-<br><br>-<br>-<br>-<br>-<br>-<br>-<br><br>-<br>-<br>-<br>-<br>-<br>-<br><br>-<br>-<br>-<br>-<br>4,980<br>-<br><br>2,187<br>-<br>-<br>-<br>-<br>-<br>|-<br>-<br>-<br>**578**<br>-<br>-<br>-<br>**27**<br>-<br>-<br>-<br>**900**<br>-<br>-<br>13,631<br>**13,631**<br>-<br>-<br>-<br>**5,000**<br>-<br>1,800<br>-<br>**1,800**<br>-<br>-<br>13,360<br>**13,360**<br>-<br>-<br>-<br>**4,980**<br>-<br>-<br>-<br>**2,187**||
|||||-<br>**578**|
|||||-<br>**27**|
||||||
|||||-<br>**900**|
||||||
|**Grants to community**||**70,279**<br>**80,758**<br>**22,530**<br>**37,000**<br>**41,855**<br>**3,050**<br>|-<br>**6,900**<br>**259,334**<br>**521,706**||
|**organisations**|||||
|||910<br>(31,522)<br> <br> <br>10,996<br>|-<br> <br>**(19,616)**||
|Adjustments|||||
||||||
|**2021**|||||
|||**71,189**<br>**49,236**<br>**22,530**<br>**37,000**<br>**52,851**<br>**3,050**<br>|**-**<br>**6,900**<br>**259,334**<br>**502,090**||
||||||




43 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **2020 Comparative.** 

|Adult and Community Learning<br>Artists Professional Development T&C<br>Capacity Strengthening<br>Covid 19 Support<br>Festival Fund<br>Grenfell Response<br>Green Infrastructure Fund<br>Rent subsidies to charity tenants<br>Small Grants to local Charities<br>Sports Grants<br>**Total**|**£**<br>54,814<br>17,821<br>24,030<br>25,000<br>65,768<br>3,944<br>44,465<br>242,085<br>216,641<br>131,437|
|---|---|
||**826,004**|



44 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **5. GOVERNANCE COSTS** 

|Audit services<br>Statutory audit<br>Attendance and advice to the Trustees<br>Tax advisory services<br>Trustee recruitment and training|**2021**<br>**£’000**<br>23<br>5<br>-<br>**28**<br>-<br>**28**|2020<br>£’000<br>17<br>5<br>-|
|---|---|---|
|||22<br>18|
|||40|



## **6. EXPENDITURE ON INVESTMENT ACTIVITIES – PROPERTY MANAGEMENT** 

|**General**<br>**Allocated**<br>**Total**<br>**Designated**<br>**Restricted**<br>**Total**|**General**<br>**Allocated**<br>**Total**<br>**Designated**<br>**Restricted**<br>**Total**|
|---|---|
|**funds**<br>**Support**<br>**Costs**<br>(Note 8)<br>**including**<br>**support costs**<br>**funds**<br>**funds**<br>**Property**<br>**Management**||
|**2021**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**||
|Materials and project costs<br>-<br>1<br>1<br>-<br>-<br>1||
|Staff costs<br>310<br>101<br>411<br>-<br>-<br>411||
|Other staff costs<br>28<br>38<br>66<br>-<br>-<br>66||
|Improvements, repairs and<br>54<br>-<br>54<br>98<br>-<br>152||
|maintenance||
|Car park expenditure<br>28<br>-<br>28<br>-<br>-<br>28||
|Ground and garden<br>24<br>-<br>24<br>-<br>-<br>24||
|maintenance||
|Insurance and other<br>181<br>12<br>193<br>-<br>252<br>445||
|establishment costs||
|Information technology<br>-<br>47<br>47<br>-<br>-<br>47||
|Communications and marketing<br>-<br>3<br>3<br>-<br>-<br>3||
|Governance (note 5)|-<br>8<br>8<br>-<br>-<br>8|
|Professional fees and costs|175<br>18<br>193<br>-<br>-<br>193|
|Other overheads|(10)<br>10<br>-<br>-<br>-<br>-|
|Bank charges|-<br>1<br>1<br>-<br>-<br>1|
|Bad debts|2,227<br>-<br>2,227<br>-<br>-<br>2,227|
|Provisions|372<br>-<br>372<br>-<br>-<br>372|
|Depreciation|-<br>21<br>21<br>-<br>-<br>21|
|||
||**3,389**<br>**260**<br>**3,649**<br>**98**<br>**252**<br>**4,000**|
|||
||_988_<br>_330_<br>_1,318_<br>_47_<br>_469_<br>_1,834_|
|_2020_||
|||



Comparative figures for 2020 are analysed in Note 28. 

45 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **7. ALLOCATION OF SUPPORT COSTS** 

|**7. ALLOCATION OF SUPPORT COSTS**|**7. ALLOCATION OF SUPPORT COSTS**|
|---|---|
|**Allocated to:**<br>**Charitable**<br>**activities**<br>**Property**<br>**Management**<br>**Total**<br>**2021**<br>**Total**<br>**2020**||
||**£'000**<br>**£'000**<br>**£'000**<br>**£'000**|
|Materials andproject costs|2<br>1<br>3<br>3<br>302<br>101<br>403<br>787<br>1<br>-<br>1<br>15<br>37<br>12<br>49<br>84<br>142<br>47<br>189<br>155<br>10<br>3<br>13<br>40<br>53<br>18<br>71<br>63<br>65<br>21<br>85<br>58<br>2<br>1<br>3<br>3<br>30<br>10<br>40<br>73<br>24<br>8<br>32<br>40|
|Staffing, recruitment and training||
|Improvements, repairs and maintenance||
|Insurance and other establishment costs||
|Information technology||
|Communications and marketing||
|Professional fees and costs||
|Depreciation||
|Bank charges||
|Other overheads||
|Governance Costs||
||**781**<br>**260**<br>**1,040**<br>**1,321**|



These costs are included within the total costs analysed by activity reported in the Statement of Financial Activities. 

## **8. STAFF COSTS** 

|**8. STAFF COSTS**||
|---|---|
||**2021**<br>**2020**|
||**£'000**<br>**£'000**|
|||
|Salaries and wages|1,533<br>1,859<br>138<br>176<br>-<br>134<br>70<br>81<br>-<br>-<br>38<br>6<br>-<br>-|
|Social security costs||
|Pension costs||
|Current service costs||
|Defined benefit||
|Defined cost||
|Other finance costs||
|Termination payments||
|Movement on holidayand bonus accruals||
||**1,779**<br>2,257|
|||
|**Average number of employees**|**2021**<br>**2020**|
|Monthly paid|67<br>73|
|Full-time equivalent|37<br>48|
|**The full-time equivalent number of employees analysed by function:**||
|Economy and Skills|8<br>14|
|Health and Wellbeing|2<br>2|
|Arts, Heritage and Community|1<br>2|
|Environmental|1<br>4|
|Stewardship|12<br>12|
|Communications and Engagement|3<br>3|
|Strategy, governance and resources|10<br>11|
||37<br>48|



46 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **10. STAFF COSTS (continued)** 

## **Number of employees whose emoluments during the year fell between:** 

|||**2021**|**_2020_**|
|---|---|---|---|
|£60,000|and £69,999|1|_-_|
|£80,000|and £89,999||_1_|
|£90,000|and £99,999||_2_|



The Key Management Personnel within the £60,000 to £69,999 range received a termination payment of £38,000. Westway Trust is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills in order to have the greatest impact in delivering our charitable objectives.  Delivery of our charitable vision and purpose is primarily dependent on the performance and efforts of our staff which is the largest single element of charitable expenditure.  We aim to recruit, subject to experience, at the lower to medium point within a band, providing scope to be rewarded for excellence.  We do not employ interns without pay.  We pay at least the London Living Wage for all our staff other than apprentices and interns.  Westway Trust evaluates each post against other posts in the Trust and market comparators to arrive at salary rates based on a consistent and transparent process, designed to offer a fair pay framework for all salary assessments and decisions. The pay structure is reassessed on an annual basis.  All staff confirmed in post are subject to a performance review and an annual performance rating (an assessment of performance and contribution, based on behaviours and delivery of tasks and objectives), in accordance with our procedures in place at the time. 

||**Key management Personnel and Trustees**|**Total**<br>**Total**<br>**2021**<br>**_2020_**<br>£’000<br>_£’000_<br>130<br>_331_|
|---|---|---|
||||
||||
||Total staff remuneration and benefits paid to key management personnel||



Key personnel were the two Joint Chief Executives and one Executive Director of the Trust (2019/20: Two Joint Chief Executives and three Executive Directors).  During the year, two Executive Directors left and none joined. During this time and as result of the difficulty, the Chair of the Board of Trustees gave additional support.  To facilitate this, we sought permission from the Charity Commission to reimburse loss of earnings. Of the reimbursement amounts there were no Pension contributions paid. 

|**Trustee Remuneration**|**Total**|**Total**|
|---|---|---|
||**2021**|**_2020_**|
||**£'000**|**£'000**|
|Toby Laurent Belson|27|**-**|
|Eve Wedderburn|3|**-**|
||31|-|



## **Remuneration to Trustees** 

During the year, the Chair of the Board of Trustees Toby Laurent Belson and trustee Eve Wedderburn were reimbursed with the permission of the Charity Commission for their loss of earnings incurred whilst engaged on Trust business. 

47 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|**Trustee Expenses**<br> **No of Trustees**<br>3|**Total**<br>**Total**<br>**2021**<br>**_2020_**<br>**£'000**<br>**£'000**<br>4<br>**-**|
|---|---|
||4<br>-|



## **Trustee Expenses** 

The expenses include printing and networking costs as well as childcare costs. 

## **Related party transactions** 

|**elated party transactions**||
|---|---|
|Venture Community Association<br>Huey Walker<br>C.A.S.H<br>Thomas Fitch<br>Portobello Shopping LTD<br>Eve Wedderburn|**2021**<br>2020<br>**£’000**<br>£’000<br>10<br>_-_<br>7<br>12<br>6<br>-|
||**23**<br>12|



During the year the transactions with entities that have related parties are summarised above. These primarily relate to rental due to charitable entities. 

## **9. TRANSFERS BETWEEN FUNDS** 

||**General funds**<br>**to (from)**<br>**Designated**<br>**funds**<br>**to (from)**<br>**Restricted**<br>**funds**<br>**to (from)**|
|---|---|
||**£'000**<br>**£'000**<br>**£'000**|
|||
|||
|Transfer of oldproject balances|5<br>-<br>(5)|
||**5**<br>**-**<br>**(5)**|



## **10. CHARITY BUILDINGS** 

|**Cost**<br>At 1 April 2020<br>Accumulated cost at 31 March 2021<br>**Depreciation**<br>At 1 April 2020<br>Charge for the year<br>Accumulated depreciation at 31 March 2021<br>**Net book value**<br>At 31 March 2021<br>_At 31 March 2020_|**Buildings occupied for the**<br>**charity's own purposes**<br>**£'000**<br>3,611|
|---|---|
||**3,611**|
||1107<br>444|
||**1,551**|
|||
||**2,060**|
||_2,505_|



48 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


Buildings occupied by the Trust to deliver its charitable activities are stated at cost after depreciation and amount to £2,060,000.  The cost of rebuilding was professionally calculated for insurance purposes as at 1 April 2008.  Allowing for building cost indexation, the buildings are insured for a reinstatement value of £7,017,000 (including Bay 20 community centre). 

## **11. INVESTMENT PROPERTY** 

|**11. INVESTMENT PROPERTY**||
|---|---|
|**Valuation**<br>At 1 April 2020<br>Additions<br>Transfers to charitable buildings<br>Loss on Revaluation<br>**Net book value**<br>At 31 March 2021<br>_At 31 March 2020_|**Land and**<br>**buildings**<br>**£'000**<br>55,566<br>-<br>-<br>(370)|
||55,196|
||_55,566_|



## **Land** 

The Trust holds the land under the elevated A40(M) trunk road under leases commencing 1 May 1972 for 130 years from the Royal Borough of Kensington and Chelsea, who in turn lease the land from the freeholders - Transport for London. 

## **Basis of valuation of investment property** 

The Trustees commissioned an indicative valuation of the Trust’s commercial property portfolio as at 31 March 2021 from Cushman & Wakefield LLP.  The purpose of that valuation was to inform the Trustees of the existing value within the estate. Cushman & Wakefield LLP’s valuation was prepared on a restricted basis and was subject to certain agreed assumptions and considerations with tenancy information provide by the Trust. The valuation complies with the requirements of the RICS Valuation – Professional Standards (the Red Book). The Trustees prepared their own internal valuation of the investment portfolio based on Cushman & Wakefield LLP’s indicative valuation. 

The valuation of £56,625,000 gave rise to a revaluation loss of £595,000 which nets off against lease incentives in debtors to give overall loss of £370,000. 

The valuation was undertaken on the following basis 

- Market Value - The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion), and; 

Significant assumptions include that: 

- all properties are assumed to be leasehold for a term of 130 years from 1972 at a peppercorn and on the basis that the Trust holds a good and marketable title. 

- the values are based on existing usage of the specific sites and buildings. 

- Where tenants are paying reduced or concessionary rents, this has been disregarded and the valuation assumes that the Trust is in receipt of the full market rent. 

- At the valuation date property markets are mostly functioning despite the ongoing pandemic, with transaction volumes and other relevant evidence at levels where an adequate quantum of market evidence exists upon which 

49 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


to base opinions of value. Accordingly, the valuation is not reported as being subject to ‘material valuation uncertainty’ as defined by VPS 3 and VPGA 10 of the RICS Valuation – Global Standards. 

## **Fair value at 31 March 2021** 

|**Fair value at 31 March 2021**||
|---|---|
||**2021**<br>**2020**|
||**£'000**<br>**£'000**|
|||
|Property valuation carried out by Cushman and Wakefield LLP in 2021|56,625<br>57,220|
|Less: unamortised lease incentive(Note 15)|(1,429)<br>(1,654)|
|**Book value at 31 March 2021**|**55,196**<br>**55,566**|



## **12. TANGIBLE FIXED ASSETS** 

|**Equipment**<br>**Fixtures**<br>**Computer**<br>**Motor**<br>**Tota**|**Equipment**<br>**Fixtures**<br>**Computer**<br>**Motor**<br>**Tota**|
|---|---|
|**on  the**<br>**and**<br>**equipment**<br>**vehicles**||
|**estate**<br>**fittings**||
|**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**||
|**Cost**||
|As at 1 April 2020<br>57<br>236<br>136<br>19<br>447||
|Additions<br>-<br>-<br>-<br>-<br>||
|**Accumulated cost at 31**<br>**March 2021**<br>**57**<br>**236**<br>**136**<br>**19**<br>**447**||
|||
|**Depreciation**||
|As at 1 April 2020<br>57<br>170<br>117<br>19<br>363||
|Charge for theyear<br>-<br>23<br>11<br>-<br>34||
|**Accumulated depreciation**<br>**at 31 March 2021**<br>**57**<br>**193**<br>**128**<br>**19**<br>**397**||
|**at 31 March 2021**||
|||
|||
|**Net book value**||
|At 31 March 2021|**-**<br>**43**<br>**7**<br>**-**<br>**50**|
|||
|_At 31 March 2020_|**_-_**<br>**_65_**<br>**_19_**<br>**_-_**<br>**_84_**|



## **13. INTANGIBLE FIXED ASSETS** 

||**Software**<br>**£'000**<br>153<br>153<br>135<br>8|
|---|---|
|||
|**Cost**||
|As at 1 April 2020||
|||
|Accumulated cost at 31 March 2021||
|||
|**Amortisation of software**||
|As at 1 April 2020||
|Charge for the year||
|||



50 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|Accumulated amortisation at 31 March 2021|143|
|---|---|
|||
|**Net book value**||
|At 31 March 2021|10|
|||
|_At 31 March 2020_|_18_|



## **14. ACCRUED INCOME** 

|**14. ACCRUED INCOME**||
|---|---|
|**2021**|**2020**|
|**£'000**|**£'000**|
|||
|Accrued income in respect of lease incentives<br>1,429|<br>1,654|
|Less: included in trade debtors<br>(225)|(225)|
|||
|**1,204**|<br>**1,429**|



Lease incentives arise from rent-free periods at the beginning of long-term leases and stepped rentals.  Lease incentives are allocated between amounts to be allocated to rental income within one year of the balance sheet date and amounts that will be charged against rental income in subsequent years. 

## **15. DEBTORS** 

|**15. DEBTORS**|||
|---|---|---|
||**2021**|<br>**2021**|
||**£'000**|<br>**£'000**|
||||
|Trade debtors|3,080|<br>549|
|Bad debt provision|(239)|<br>(217)|
|Sports and Leisure Management Ltd|(1,988)|<br>(281)|
|Accrued income in respect of lease incentives|225|<br>225|
|Grants receivable|-|<br>85|
|Prepayments and accrued income|70|<br>193|
|Other debtors|20|<br>14|
||||
||**298**|<br>**568**|



|**Bad debt provision**|**Opening**|**Additional**|**Debts**|**Provisions no**|**Closing**|
|---|---|---|---|---|---|
||**provision at**|**provisions**|**written off**|**longer**|**provision at**|
||**1 April 2020**|||**required**|**31 March**|
||**(Note 31)**||||**2021**|
||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
|Rental debt||||||
||217|239|-|-|737|
|Sports and Leisure<br>Management Ltd|281|1,707|||1,988|
|**Total**|498|2,227|-|-|2,725|



Bad debt provisions are based upon the debtor balances on individual accounts. 

51 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


Due to the impact of Coronavirus, a decision was taken by management to assume that the entire unpaid rental debt at 31 March 2020 should be provided for.  The provision on Sports and Leisure Management Ltd is as a result of pending agreement as a result of negotiations. £372,000 of funds received during the period was posted to deferred income pending conclusion of the agreement. 

## **16. LIABILITIES: AMOUNTS DUE WITHIN ONE YEAR** 

|**16.  LIABILITIES: AMOUNTS DUE WITHIN ONE YEAR**||
|---|---|
||**2021**<br>**2020**|
||**£'000**<br>**£'000**|
|||
|Trade creditors|248<br>458|
|Accruals|227<br>274|
|Grants awarded but not paid|68<br>68|
|Deferred income|379<br>7|
|Tenants' deposits|111<br>191|
|Taxes and social security costs|434<br>234|
|Other creditors|11<br>13|
||**1,478**<br>**1,245**|



## **17. LIABILITIES: AMOUNTS DUE AFTER ONE YEAR** 

|**17. LIABILITIES: AMOUNTS DUE AFTER ONE YEAR**||
|---|---|
||**2021**<br>**_2020_**|
||**£'000**<br>**_£'000_**|
|||
|Tenants' deposits|**273**<br>**_224_**|



## **18. FINANCIAL INSTRUMENTS** 

|**18. FINANCIAL INSTRUMENTS**||
|---|---|
||**2021**<br>**2020**|
||**£'000**<br>**£'000**|
|||
|Financial assets that are debt instruments measured at amortised cost|**3**<br>**150**|
|||
|Financial liabilities that are measured at amortised cost|**643**<br>**885**|



52 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **19. ANALYSIS OF FUNDS** 

||**At 1 April**<br>**2020**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**Transfers,**<br>**revaluations and**<br>**unrealised gains**<br>**At 31 March**<br>**2021**|
|---|---|
||(Note 32)<br>(Notes 9)|
||**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**|
|**Restricted funds**||
|Investment property|8,505<br>-<br>-<br>-<br>8,505|
|Charitable buildings|2,436<br>-<br>(400)<br>-<br>2,036|
|Service charges|90<br>326<br>(252)<br>-<br>165|
|Projectgrants|165<br>480<br>(485)<br>(5)<br>155|
||**11,196**<br>**807**<br>**(1,136)**<br>**(5)**<br>**10,861**|
|||
|**Unrestricted funds**||
|Investment<br>property|9,496<br>-<br>-<br>-<br>9,496|
|Charitable buildings|17<br>-<br>(1)<br>-<br>16|
|Refurbishment fund|759<br>-<br>-<br>-<br>759|
|Development fund|2,086<br>-<br>(20)<br>-<br>2,066|
|Maintenance funds|596<br>-<br>(86)<br>-<br>510|
|Grenfell Support|-<br>(7)<br>-<br>(7)|
||12,954<br>-<br>(114)<br>-<br>12,840|
|Revaluation reserve|39,188<br>-<br>(370)<br>-<br>38,818|
|General fund|603<br>5,173<br>(5,582)<br>5<br>199|
||52,745<br>5,173<br>(6,066)<br>5<br>51,858|
|||
||63,942<br>5,980<br>(7,202)<br>-<br>62,718|



## **Restricted funds** 

**Investment property** :  This fund represents grants given to the Trust to construct buildings that are let and generate income for the Trust.  Commonly these grants have been awarded from local and central government and European initiatives for regeneration.  Funds continue to be treated as restricted for such time as the Trustees consider there to be an explicit or constructive obligation to keep the underlying asset in use for specified, grant-funded purposes. 

**Charitable buildings** :  This fund represents grants given to the Trust to construct buildings that it occupies for the direct delivery of charitable activities.  These grants may have been awarded from a variety of initiatives for regeneration or charitable purposes.  Funds continue to be treated as restricted for such time as the Trustees consider there to be an explicit or constructive obligation to keep the underlying asset in use for specified, grant-funded purposes, and are reduced to the extent that those assets have been depreciated or reduced due to impairment of value. 

**Service charges** :  These funds, commonly referred to as sinking funds, represent monies collected from tenants through the service charges for the maintenance of the investment properties.  There are several ring-fenced funds, each for a specified property.  The Trust is accountable to its tenants for the income collected, expenditure incurred and refurbishment funds held for each property. 

**Project grants** :  These funds represent grants received by the Trust for specified projects and which can only be spent on those projects.  Income is recognised when the Trust is entitled to receive the grant and where there is no reasonable expectation that the grant could become repayable.  Any unspent funds held at the end of the year are held separately to be spent on the specified project in future years.  At 31 March 2021, the funds on hand comprise: 

53 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


|_Project grants_<br>Sports development<br>Grenfell Response<br>Education<br>Animating Thorpe Close|**2021**<br>**2020**<br>**£'000**<br>**£'000**<br>16<br>16<br>17<br>14<br>31<br>45<br>90<br>90|
|---|---|
||**154**<br>**165**|



## **Designated funds** 

**Investment property** :  This fund represents the money that the Trust has invested from its earnings into buildings that are let commercially to generate further income for the Trust in the future.  The original cash asset has already been spent on the buildings. 

**Charitable buildings** :  This fund represents the money that the Trust has invested from its earnings into buildings that it occupies for the direct delivery of charitable activities.  The fund is reduced to the extent that those assets have been depreciated or reduced due to impairment of value.  The original cash asset has already been spent on the buildings. 

**Refurbishment/Forward Maintenance fund** :  This fund represents money set aside to meet the anticipated costs of renovating depreciating assets at the end of their anticipated lives, such as the playing surfaces of sports facilities.   It also includes monies set aside for identified enhancements to the Trust's sports and fitness facilities.  The refurbishment fund will be expended according to a 15-year life cycle plan. 

**Project funds** : This money is set aside in order to ensure targeted charitable projects can be supported where future funding is in doubt.  The funds also include amounts set aside to provide flexibility during periods of economic downturn and disruptions that may be encountered on the Estate due to major maintenance works.  The long-term nature of property cycles and highway maintenance means that these funds may be built up and expensed over a 15-year-period. 

**Pension reserve:** Currently there is no requirement to hold a pension reserve and this item will not appear next year. 

**Development fund** :  This fund represents money set aside to meet the anticipated costs of progressing identified capital development opportunities to planning stage, at which point grant or loan funding would become available or development partnerships are established.  Development funds are anticipated to be spent over the next five years as the Trust's property development agenda is progressed. 

**Grenfell reserve** :  This fund represents monies set aside that were then donated towards the commemoration of the second anniversary of the fire at Grenfell. This fund was established in FY19/20 and at year-end had a value of £7,000. 

54 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **20. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|Net current assets<br>Liabilities due after more than<br>one year<br>**Working Capital**<br>Investment property<br>Charitable buildings<br>Tangible fixed assets<br>Intangible assets<br>Accrued income<br>**Other funds**|**Accumulated**<br>**fund**<br>**Designated**<br>**funds**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**funds**<br>**2021**<br>**Subtotal**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>215<br>3,983<br>4,198<br>272<br>4,471<br>(273)<br>-<br>(273)<br>-<br>(273)|
|---|---|
||(58)<br>3,983<br>3,925<br>272<br>4,198<br>182<br>46,450<br>46,632<br>8,564<br>55,196<br>15<br>20<br>35<br>2,025<br>2,060<br>50<br>50<br>50<br>10<br>-<br>10<br>-<br>10<br>-<br>1,204<br>1,204<br>-<br>1,204|
||257<br>47,675<br>47,932<br>10,589<br>58,520|
||199<br>51,658<br>51,857<br>10,861<br>62,718|



See Note 32 for an analysis of net assets between funds as at 31 March 2020. 

55 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **21. POST BALANCE SHEET EVENTS** 

|**21. POST BALANCE SHEET EVENTS**||
|---|---|
|**Amounts recognised in financial year**<br>Management fee|**2021**|
||**£'000**|
|||
||1,863|
|||
||1,863|



Due to the lockdown imposed by the Government, Sports and Leisure Management LTD who manage the Westway Sports Centre entered into negotiations to agree concessions to the management fee due to the Trust. As of the date the accounts were being signed these agreements were still awaiting approval from the charities Commission. The current recognised income in the accounts are detailed above with the amounts that would be recognised if the arrangement is approved by the Charity Commission.  Any subsequent changes to the management fee will be reflected in line with the correct accounting policies and any need for a prior year adjustment will be considered for any amounts to be applied retrospectively 

## **22. OPERATING LEASES** 

## **The Trust as lessor** 

Future aggregate minimum rentals receivable under non-cancellable operating leases based on contracted rental income at the year-end: 

|at the year-end:||
|---|---|
||**2021**<br>**2020**|
||**£'000**<br>**£'000**|
|||
|Less than one year|3,531<br>3,796|
|Later than one year but not later than five years|12,536<br>12,397|
|Later than five years but not later than ten years|5,372<br>6,970|
|Later than tenyears|1,771<br>2,412|
||23,210<br>**25,575**|



## **23. RETIREMENT BENEFITS** 

The Trust previously operated two pension schemes:  a group personal pension scheme operated on behalf of the Trust by Legal and General Pensions Limited; and a final salary pension scheme operated by the Royal Borough of Kensington and Chelsea. 

## **Money purchase scheme** 

The Trust operates a group personal pension scheme that is compliant with Auto Enrolment legislation.  During the year, the personal pension scheme required a minimum level of contribution by the employee of 2%, with no maximum level of contribution outside the legislative thresholds.  The Trust contributed between 2% and 8% of salary dependent upon the date of joining and the employee's own contribution level for those members who opt to pay higher contributions. Following changes to the legislative minimum contributions in 2018/19, the minimum contributions from 1 April 2018 have been increased to 4% from both the employee and the Trust, with the Trust matching any additional contributions made by staff members up to a maximum of 8% of salary. 

56 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **23.  RETIREMENT BENEFITS (continued)** 

## **Final salary pension scheme** 

The scheme has now been closed with the retirement of the 1 remaining staff member on the scheme, the detailed FRS102 results given below are the comparatives for prior years. There is currently no need for final salary provisions as no member of staff is within the final salary pension scheme. 

The employer's pension contributions paid in the year were: 

|The employer's pension contributions paid in the year were:||
|---|---|
||**2021**<br>**_2020_**|
||**£'000**<br>**_£'000_**|
|||
|Final salary scheme|-<br>134|
|Money purchase scheme|70<br>81|
||70<br>**215**|



The total pension contributions due from the Trust to the pension Trustees at the end of the year are included within current liabilities (note 17), represent the last month's contributions and amounted to: 

||**2021**<br>**_2020_**|
|---|---|
||**£'000**<br>**_£'000_**|
|||
|Final salary scheme|-<br>_115_|
|Money purchase scheme|9<br>_12_|
||**9**<br>**_127_**|



## **Final salary pension scheme** 

. 

57 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **24. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES** 

|**ACTIVITIES**|||
|---|---|---|
||**2021**|<br>**2020**|
||**£'000**|<br>**£'000**|
|Net movement in funds|(1,223)|<br>1,458|
|Interest receivable|(11)|<br>(31)|
|Pension service costs net of finance costs|-|<br>-|
|Contributions to defined benefits pension scheme|-|<br>-|
|Pension (gains)|-|<br>-|
|Depreciation and amortisation|487|<br>504|
|Valuation deficit (surplus)|370|<br>(1,534)|
|(Decrease) in non-current accrued income|225|<br>208|
|(Increase) in debtors|270|<br>463|
|Increase (decrease) in creditors due within one year|(139)|<br>(190)|
|(Decrease)in creditors due after oneyear|49|<br>132|
|**Total service costs**|**29**|<br>**1,010**|



## **25. ANALYSIS IN CHANGES IN NET DEBT** 

||**At 1 April**<br>**Cash**<br>**Other**<br>**At 31 March**|
|---|---|
||**2020**<br>**flows**<br>**changes**<br>**2021**|
||**£'000**<br>**£'000**<br>**£'000**<br>**£'000**|
|||
|Cash at bank and in hand|574<br>38<br>1,000<br>1,612<br>4,666<br>-<br>(1,000)<br>3,666|
|Short-term deposits||
||5,240<br>38<br>-<br>5,278|



58 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **26. COMPARATIVE FIGURES: STATEMENT OF FINANCIAL ACTIVITIES 2019/20** 

**Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2020** 

|**Note**<br>**General**<br>**funds**<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total 2020**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**Income**<br>**Income from continuing activities**<br>_Income from charitable activities_<br>Grants, earned and other income<br>-<br>-<br>478<br>478<br>Miscellaneous income<br>21<br>-<br>4<br>25<br>Donated asset<br>-<br>-<br>-<br>-<br>**21**<br>**-**<br>**482**<br>**503**|**Note**<br>**General**<br>**funds**<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total 2020**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**<br>**Income**<br>**Income from continuing activities**<br>_Income from charitable activities_<br>Grants, earned and other income<br>-<br>-<br>478<br>478<br>Miscellaneous income<br>21<br>-<br>4<br>25<br>Donated asset<br>-<br>-<br>-<br>-<br>**21**<br>**-**<br>**482**<br>**503**|
|---|---|
|||
|||
|**Income**||
|**Income from continuing activities**||
|_Income from charitable activities_||
|Grants, earned and other income||
|Miscellaneous income||
|Donated asset||
|||
|_Income from investments_|4,740<br>-<br>-<br>4,740<br>141<br>-<br>-<br>141<br>147<br>-<br>-<br>147<br>32<br>-<br>-<br>32<br>-<br>-<br>443<br>442<br>49<br>-<br>-<br>49|
|Land and property rentals||
|Car Park income||
|Miscellaneous income||
|Interest receivable||
|_Other income_||
|Property service charges||
|Miscellaneous income||
|||
|**Total income**|**5,130**<br>**-**<br>**925**<br>**6,055**|
||3,171<br>201<br>925<br>4,297<br>1,318<br>47<br>469<br>1,834|
|**Expenditure**||
|**Expenditure on continuing activities**||
|_Expenditure on charitable activities_||
|||
|_Investment management costs_||
|Property management||
|||
|**Total expenditure**|**4,489**<br>**(248)**<br>**1,394**<br>**6,131**|
||-<br>1,534<br>-<br>1,534|
|Net gain/(loss) on investments||
|||
|**Total net income (expenditure) before**|**641**<br>**1,286**<br>**(469)**<br>**1,458**|
|**transfers**||
||(782)<br>783<br>(1)<br>-|
|Transfers between funds||
|||
|**Net income (expenditure) after transfers**|**(141)**<br>**2,069**<br>**(470)**<br>**1,458**|
||-<br>-<br>-<br>-|
|Actuarial gains on defined benefit pension<br>scheme||
|||
|**Net movement in funds**|**(141)**<br>**2,069**<br>**(470)**<br>**1,458**|
||744<br>50,073<br>11,666<br>62,483|
|_Reconciliation of funds_||
|||
|_Balances brought forward at 1 April 2019_||
|||
|**Balances carried forward at**<br>**31 March 2020**|**603**<br>**52,142**<br>**11,196**<br>**63,941**|



59 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **27. COMPARATIVE FIGURES: EXPENDITURE ON CHARITABLE ACTIVITIES 2019/20** 

|**Social Wellbeing**<br>Engagement<br>Health and wellbeing<br>Arts, culture  and<br>community grants<br>Grenfell response<br>**Environmental**<br>**Wellbeing**<br>**Economic Wellbeing**<br>Stewardship (including<br>property development)<br>Economy and Skills<br>**Made up of:**<br>Grants awarded (Note 4)<br>Materials and project costs<br>Community consultation<br>Staff costs<br>Other staff costs<br>Improvements, repairs and<br>maintenance<br>Environment projects<br>Ground and Garden<br>maintenance<br>Insurance and other<br>establishment costs<br>Information technology<br>Communications and<br>marketing<br>Professional fees and costs<br>Depreciation<br>Bank charges<br>Other overheads<br>Internal recharges<br>Governance Costs (note 5)|**General**<br>**funds**<br>**Allocated**<br>**Support**<br>**Costs**<br>(Note 8)<br>**Total**<br>**(**including<br>support<br>costs)<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**Charitable**<br>**Expenditur**<br>**e**<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>314<br>198<br>512<br>-<br>430<br>942<br>-<br>-<br>-<br>-<br>16<br>16<br>1,113<br>66<br>1,179<br>-<br>-<br>1,179<br>37<br>-<br>37<br>24<br>6<br>67<br>**1,464**<br>**264**<br>**1,728**<br>**24**<br>**452**<br>**2,204**<br>**353**<br>**200**<br>**553**<br>**42**<br>**-**<br>**595**<br>215<br>198<br>413<br>135<br>-<br>548<br>147<br>330<br>477<br>-<br>473<br>950<br>**362**<br>**528**<br>**890**<br>**135**<br>**473**<br>**1,498**<br>**2,179**<br>**992**<br>**3,171**<br>**201**<br>**925**<br>**4,297**|
|---|---|
||748<br>-<br>748<br>23<br>55<br>826<br>127<br>2<br>129<br>-<br>46<br>175<br>117<br>-<br>117<br>-<br>-<br>117<br>907<br>515<br>1,422<br>-<br>320<br>1,742<br>71<br>75<br>146<br>-<br>17<br>163<br>80<br>11<br>91<br>145<br>3<br>239<br>9<br>-<br>9<br>-<br>-<br>9<br>73<br>-<br>73<br>-<br>-<br>73<br>38<br>63<br>101<br>-<br>33<br>134<br>-<br>116<br>116<br>-<br>2<br>118<br>17<br>30<br>47<br>-<br>1<br>48<br>16<br>47<br>63<br>14<br>9<br>86<br>-<br>43<br>43<br>18<br>430<br>491<br>-<br>2<br>2<br>-<br>-<br>2<br>(28)<br>58<br>30<br>-<br>10<br>40<br>4<br>-<br>4<br>-<br>-<br>4<br>-<br>30<br>30<br>-<br>-<br>30<br>**2,179**<br>**992**<br>**3,171**<br>**200**<br>**926**<br>**4,297**|



60 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **28. COMPARATIVE FIGURES: EXPENDITURE ON PROPERTY MANAGEMENT 2019/20** 

|**_General_**<br>**_funds_**<br>**_Allocated_**<br>**_Support_**<br>**_Costs_**<br>**_Total including_**<br>**_support costs_**<br>**_Designated_**<br>**_funds_**<br>**_Restricted_**<br>**_funds_**<br>**_Total_**<br>**_Property_**<br>**_Management_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>_Materials and project costs_<br>_2_<br>_1_<br>_3_<br>_-_<br>_-_<br>_3_<br>_Staff costs_<br>_201_<br>_172_<br>_373_<br>_-_<br>_35_<br>_408_<br>_Other staff costs_<br>_17_<br>_25_<br>_42_<br>_-_<br>_-_<br>_42_<br>_Improvements, repairs and_<br>_maintenance_<br>_17_<br>_4_<br>_21_<br>_47_<br>_-_<br>_68_<br>_Car park expenditure_<br>_29_<br>_-_<br>_29_<br>_-_<br>_-_<br>_29_<br>_Ground and garden maintenance_<br>_12_<br>_-_<br>_12_<br>_-_<br>_-_<br>_12_<br>_Insurance and other establishment_<br>_costs_<br>_208_<br>_21_<br>_229_<br>_-_<br>_434_<br>_663_<br>_Information technology_<br>_-_<br>_39_<br>_39_<br>_-_<br>_-_<br>_39_<br>_Communications and marketing_<br>_-_<br>_10_<br>_10_<br>_-_<br>_-_<br>_10_<br>_Governance (note 5)_<br>_-_<br>_10_<br>_10_<br>_-_<br>_-_<br>_10_<br>_Professional fees and costs_<br>_45_<br>_16_<br>_61_<br>_-_<br>_-_<br>_61_<br>_Other overheads_<br>_(12)_<br>_16_<br>_4_<br>_-_<br>_-_<br>_4_<br>_Bank charges_<br>_-_<br>_1_<br>_1_<br>_-_<br>_-_<br>_1_<br>_Bad debts_<br>_469_<br>_0_<br>_469_<br>_-_<br>_-_<br>_469_<br>_Depreciation_<br>_-_<br>_15_<br>_15_<br>_-_<br>_-_<br>_15_|**_General_**<br>**_funds_**<br>**_Allocated_**<br>**_Support_**<br>**_Costs_**<br>**_Total including_**<br>**_support costs_**<br>**_Designated_**<br>**_funds_**<br>**_Restricted_**<br>**_funds_**<br>**_Total_**<br>**_Property_**<br>**_Management_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>_Materials and project costs_<br>_2_<br>_1_<br>_3_<br>_-_<br>_-_<br>_3_<br>_Staff costs_<br>_201_<br>_172_<br>_373_<br>_-_<br>_35_<br>_408_<br>_Other staff costs_<br>_17_<br>_25_<br>_42_<br>_-_<br>_-_<br>_42_<br>_Improvements, repairs and_<br>_maintenance_<br>_17_<br>_4_<br>_21_<br>_47_<br>_-_<br>_68_<br>_Car park expenditure_<br>_29_<br>_-_<br>_29_<br>_-_<br>_-_<br>_29_<br>_Ground and garden maintenance_<br>_12_<br>_-_<br>_12_<br>_-_<br>_-_<br>_12_<br>_Insurance and other establishment_<br>_costs_<br>_208_<br>_21_<br>_229_<br>_-_<br>_434_<br>_663_<br>_Information technology_<br>_-_<br>_39_<br>_39_<br>_-_<br>_-_<br>_39_<br>_Communications and marketing_<br>_-_<br>_10_<br>_10_<br>_-_<br>_-_<br>_10_<br>_Governance (note 5)_<br>_-_<br>_10_<br>_10_<br>_-_<br>_-_<br>_10_<br>_Professional fees and costs_<br>_45_<br>_16_<br>_61_<br>_-_<br>_-_<br>_61_<br>_Other overheads_<br>_(12)_<br>_16_<br>_4_<br>_-_<br>_-_<br>_4_<br>_Bank charges_<br>_-_<br>_1_<br>_1_<br>_-_<br>_-_<br>_1_<br>_Bad debts_<br>_469_<br>_0_<br>_469_<br>_-_<br>_-_<br>_469_<br>_Depreciation_<br>_-_<br>_15_<br>_15_<br>_-_<br>_-_<br>_15_|
|---|---|
|_costs_||
|_Information technology_||
|_Communications and marketing_||
|_Governance (note 5)_||
|_Professional fees and costs_||
|_Other overheads_||
|_Bank charges_||
|_Bad debts_||
|_Depreciation_||
||**_988_**<br>**_330_**<br>**_1,318_**<br>**_47_**<br>**_469_**<br>**_1,834_**|
|||
|||



## **29. COMPARATIVE FIGURES: TRANSFERS BETWEEN FUNDS 2019/20** 

||**_General_**<br>**_funds to /_**<br>**_(from)_**<br>**_Designated_**<br>**_funds to /_**<br>**_(from)_**<br>**_Restricted_**<br>**_funds to /_**<br>**_(from)_**|
|---|---|
||**_£'000_**<br>**_£'000_**<br>**_£'000_**|
|||
|_Transfers to provide for future activities_||
|_Provisions for reinstatement of sports playing surfaces and facilities_|_(259)_<br>_259_<br>_-_|
|_Provisions for the maintenance of the estate_|_(250)_<br>_250_<br>_-_|
|_Funds allocated for development projects in future years_|_(250)_<br>_250_<br>_-_|
|Creation of designated fund for Grenfell support|(24)<br>24|
|_Transfer of oldproject balances_|_1_<br>_-_<br>_(1)_|
||**_(782)_**<br>**_783_**<br>**_(1)_**|



## **30. COMPARATIVE FIGURES: MOVEMENT IN PROVISIONS 2019/20** 

||**_Opening provision_**<br>**_April 2019_**<br>**_Additional_**<br>**_provisions_**<br>**_Debts written off_**<br>**_Provisions no_**<br>**_longer required_**<br>**_Closing provision_**<br>**_March 2020_**|
|---|---|
||**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**|
|||
|_Rental debt_|29<br>469<br>-<br>-<br>498|
||**29**<br>**469**<br>**-**<br>**-**<br>**498**|



61 



**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021** 


## **31. COMPARATIVE FIGURES: ANALYSIS OF FUNDS 2019/20** 

||**_At 1 April 2019_**<br>**_Incoming_**<br>**_resources_**<br>**_Resources_**<br>**_expended_**<br>**_Transfers,_**<br>**_revaluations and_**<br>**_unrealised gains_**<br>**_At 31 March_**<br>**_2020_**|
|---|---|
||_(Note 32)_<br>_(Notes 10 and 12)_|
||**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**|
|**_Restricted funds_**||
|_Investment property_|_8,505_<br>_-_<br>_-_<br>_-_<br>_8,505_|
|_Charitable buildings_|_2,859_<br>_-_<br>_(423)_<br>_-_<br>_2,436_|
|_Service charges_|_117_<br>_442_<br>_(469)_<br>_-_<br>_90_|
|_Project grants_|_185_<br>_483_<br>_(502)_<br>_(1)_<br>_165_|
||**_11,666_**<br>**_925_**<br>**_(1,394)_**<br>**_(1)_**<br>**_11,196_**|
|||
|**_Unrestricted funds_**||
|_Other designated funds_||
|_Investment property_|_9,316_<br>_-_<br>_(1)_<br>_-_<br>_9,315_|
|_Charitable buildings_|_28_<br>_-_<br>_(11)_<br>_-_<br>_17_|
|_Refurbishment fund_|_1,028_<br>_-_<br>_(13)_<br>_259_<br>_1,274_|
|_Development fund_|_1,673_<br>_-_<br>_(170)_<br>_250_<br>_1,753_|
|_Maintenance funds_|_374_<br>_-_<br>_(29)_<br>_250_<br>_595_|
|_Grenfell Support_|_-_<br>_-_<br>_(24)_<br>_24_<br>_-_|
||**_12,419_**<br>**_-_**<br>**_(248)_**<br>**_783_**<br>**_12,954_**|
|_Revaluation reserve_|_37,654_<br>_-_<br>_-_<br>_1,534_<br>_39,188_|
|_Accumulated fund_|_744_<br>_5,130_<br>_(4,489)_<br>_(782)_<br>_603_|
||_50,817_<br>_5,130_<br>_(4,737)_<br>_2,720_<br>_52,745_|
|||
||**_62,483_**<br>**_6,055_**<br>**_(6,131)_**<br>**_1,534_**<br>**_63,941_**|



## **32. COMPARATIVE FIGURES: ANALYSIS OF NET ASSETS BETWEEN FUNDS 2019/20** 

|_Net current assets_<br>_Liabilities due after more than_<br>_one year_<br>**_Net liquid funds_**<br>_Investment property_<br>_Charitable buildings_<br>_Tangible fixed assets_<br>_Intangible assets_<br>_Accrued income_<br>**_Other funds_**|**_Unrestricted funds_**<br>**_Restricted_**<br>**_funds_**<br>**_Total_**<br>**_funds_**<br>**_Accumulated_**<br>**_fund_**<br>**_Designated_**<br>**_funds_**<br>**_Subtotal_**<br>**_2020_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>**_£'000_**<br>_435_<br>_3,873_<br>_4,308_<br>_255_<br>_4,563_<br>_(224)_<br>_-_<br>_(224)_<br>_-_<br>_(224)_|
|---|---|
||_211_<br>_3,873_<br>_4,084_<br>_255_<br>_4,339_<br>_241_<br>_46,820_<br>_47,061_<br>_8,505_<br>_55,566_<br>_51_<br>_18_<br>_69_<br>_2,436_<br>_2,505_<br>_82_<br>_2_<br>_84_<br>_-_<br>_84_<br>_18_<br>_-_<br>_18_<br>_-_<br>_18_<br>_-_<br>_1,429_<br>_1,429_<br>_-_<br>_1,429_|
||_392_<br>_48,269_<br>_48,661_<br>_10,941_<br>_59,602_|
||**_603_**<br>**_52,142_**<br>**_52,745_**<br>**_11,196_**<br>**_63,941_**|



62 



**REFERENCE AND ADMINISTRATIVE INFORMATION** 

## **Governance and management** 

## **Trustees** 

## **Chair** 

Toby Laurent Belson (appointed 27 January 2020, appointed Chair 10 February 2020) 

## **Trustees nominated by RBKC:** 

Cllr Marwan Elnaghi (appointed 26 July 2019) Cllr Sof McVeigh (resigned 6 August 2020) Cllr Marie-Therese Rossi (appointed 6 August 2020) 

## **Openly recruited Trustees:** 

Tom Fitch (appointed 4 November 2019) Jonathan Kelly (appointed 8 June 2021) Minal Patel (appointed 15 July 2021) Eve Wedderburn (appointed 5 February 2020) Sheraine Williams (appointed 11 February 2020) 

## **Elected Trustees** 

Alex Korda (appointed 1 February 2021) Angela Spence (resigned 29 July 2021) Justin Thomas (appointed 29 July 2021; resigned 18 November 2021) Huey Walker (appointed 5 February 2020) 

## **Joint Chief Executives** 

Alex Russell (departed 31 July, 2020) One post vacant since retirement of previous postholder 

## **Interim Chief Executive** 

Mark Lister (appointed 1 August, 2020. Departed 31 January 2021) 

## **Chief Executive** 

Venu Dhupa (in post full-time 2 August 2021) 

## **Company Secretary** 

Alex Russell (appointed 27 April 2020. Departed 31 July 2020) No subsequent appointment made. 

63 



**REFERENCE AND ADMINISTRATIVE INFORMATION** 

## **Administrative information** 

|**Charity number**|**Charity number**|1123127|
|---|---|---|
|**Company number**||06475436|
|**Registered office**||1 Thorpe Close|
|||London W10 XL|
|**Independent auditors**||Moore Kingston Smith LLP|
|||Devonshire House|
|||60 Goswell Road|
|||London EC1M 7AD|
|**Bankers**||Barclays Bank plc|
|||1 Churchill Place|
|||London E14 5HP|
|**Principal solicitors**||Bates Wells LLP|
|||10 Queen Street Place|
|||London EC4R 1BE|
|**icial social**|**media**||
|Website|www.westway.org||
|Facebook|@WestwayTrust||
|Twitter|@WestwayTrust||
|Instagram|@Westway_Trust||



## **Official social media** 

64