## **WESTWAY TRUST**
## **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
**CONTENTS**
||Page|
|---|---|
|**REPORT OF THE BOARD OF TRUSTEES**||
|Objectives and activities|4|
|Public Benefit|4|
|Achievements and Performance|6-13|
|Plans for the future|14 - 16|
|Financial Review|17 - 19|
|Structure of governance and management|20 - 22|
|Risk and Internal controls|23 - 25|
|Other matters|25 - 28|
|Statement of Trustees’ responsibilities|29|
|**INDEPENDENT AUDITOR’S REPORT**|**31 - 36**|
|**FINANCIAL STATEMENTS**||
|Statement of financial activities|37-38|
|Balance sheets|39|
|Cash flow statement|40|
|Notes to the financial statements|42 - 66|
|**REFERENCE AND ADMINISTRATIVE INFORMATION**|**67 - 68**|
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**REPORT OF THE BOARD OF TRUSTEES 2022**
_Incorporating the Directors’ Strategic Report and Administrative Report for Companies Act purposes._
In order to ensure our reporting of activity and finances over the year is accessible to all, we have again this year produced this 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 2022 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 2022**
## **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.
In the last quarter of 2021 we developed a forward-looking Horizon Plan (2022-25) which sets out the following strategic principles:
**Our Vision:** Happier, healthier and more prosperous communities.
**Our mission:** To dedicate the Trust’s resources to the social, economic and environmental wellbeing of communities.
## **Strategic Outcomes:**
1. Encourage connectivity and understanding between communities and reduce barriers to mutual engagement.
2. Increase community and citizen participation,
3. Ensure greater access to the land, environmental improvements and increase space for community use.
4. Encourage access to the range of life chances and therefore opportunities to fulfil potential.
5. Ensure well-led workforce within an organisation that is structured for good performance and supports continuous improvement and staff well-being.
These outcomes provide the framework for future reporting (2022-2025), so that all our efforts, and crucially individual staff goals can be traced from personal and team objectives, to our outcomes, mission and vision. This will assist communications with our communities and show how we are meeting our overall vision.
## **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
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a local impact in North Kensington. In 2018, we made it explicit publicly 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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## **ACHIEVEMENTS AND PERFORMANCE**
## **Independent Review into Institutional Racism at Westway Trust**
Following the publication of a landmark Report in December 2020, finding that “Westway Trust has been and remains institutionally racist”, much of 2021/22 was spent beginning to address each recommendation in the Report, and solidifying our relationship with the independent ‘Community Advisory Group’ to the Review, who have been engaged to oversee the transformation process of the Trust, as recommended in the Report.
The full report can be viewed at www.westwayreview.com
Trustees have set a strong context for Equality, Diversity and Inclusion (EDI), Anti-racist and Reparations work with a formal apology and by securing a statement of intent to engage further on the subject from RBKC. Our Horizon Plan built on a commitment for all staff and new staff to read and discuss the Tutu Foundation Report and we began a programme of awareness raising on the subject of Institutional Racism and Understanding Reparations, with external expert input and important local input. We have continued discussions with the Community Advisory Group (CAG) and made an 'in principle' decision to allocate Bay 56 to the stewardship of the African Caribbean community for the duration of our lease. We will enable a mechanism for this to be activated in the near future. We delivered a pilot grant programme with the CAG; committed to and timetabled the development of an Equality, Diversity and Inclusion Action Plan and a plan to become an anti-racist organisation. We have allocated resource for the development of a campaign with our local community to deliver a Centre for Civil Rights and Culture (working title.) We have committed to a grants review with the goal of piloting grants in social justice and antiracism within the next two years. In the coming year we will conduct an Accessibility Audit of the property portfolio and undertake a review of the Trust’s use of zero hours contracts. In this year we have also changed the demographic profile of our Board and appointed a CEO with British Indian heritage to lead the organisation through transformation.
## **Grant Making**
In the financial year 2021/22, a total of £183,038 was distributed in grants to 136 community groups and individuals. A full list of grants is available later in this document, grants include:
- Rapid Response Fund
- Grenfell Anniversary Fund
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- Fundraising Support
- Community Advisory Group
- Celebration & Events
- Covid-19 Relief
- Sports Bursaries
- Young Achievers Participatory Grant-making pilot
## **Rapid Response Fund**
The Rapid Response Fund is designed for urgent activities/projects or unexpected circumstances when other funds are not available. 16 community groups and individuals received Rapid Response funding in 2021/22. £16,374 was awarded in total.
## **Grenfell Anniversary Fund**
As the North Kensington community marked the fourth anniversary of the tragedy at Grenfell Tower in June 2021, Westway Trust provided financial and in-kind assistance to local community groups holding events to commemorate the anniversary. A total of £9,525 was distributed to eight community groups in support of their anniversary commemorations.
## **Fundraising Support**
One of the most impactful ways we can support community organisations and groups is to provide professional support in attracting external funding for their projects.
The aim of the Fundraising Support Fund is to partner community organisations, whose objectives align with Westway Trust’s charitable purpose, with fundraising consultants who will work with the organisation to attract external funding.
Successful applicants to this fund receive a minimum of three days working with a professional fundraising consultant to identify and apply for external funding streams for their organisations; covering both project and core costs.
In 2021/22, £16,625 was spent on fundraising support for 18 community organisations. In future years we will be reporting on the impact of our investment on levering other investment. We will include for example, the amount of funds applied for by the organisations we have assisted and the corresponding success rate.
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## **Community Advisory Group (CAG) Pilot Grants**
Grants were made under this pilot as a direct result of recommendations from the Review into Institutional Racism at the Westway Trust.
Eligible applicants applied for grants of up to £3,000 for the following purposes:
- To sustain existing activity that is focused on delivering social impact* to the community.
- To purchase an essential piece of equipment.
- To increase functionality.
- To enable personal / professional progress that will deliver community benefit.
We funded six community groups and a total of £17,132 was awarded. The lessons from this pilot will inform a future grants review.
## **Celebration & Events**
This grants programme aims to support community celebrations and events, particularly those that give local talent a chance to be showcased. This fund is designed to receive applications for events and projects where this is either central to the activity or where there is a significant element of public engagement.
In 2021/22 we funded 27 community groups and awarded a total of £46,370.
## **Covid-19 Relief Fund**
In October 2021, we launched a new, one-off grants programme designed to assist locallyowned small businesses in their recovery from the Covid-19 pandemic. The programme provided small grants of up to £1,000 for local small businesses and community organisations with an annual turnover of £100,000 or less.
This programme was designed to reach a number of organisations that would normally not access funds. It did meet that criterion, which in itself was an important outcome.
A total of £35,000 was distributed to 35 community organisations. This included a number of Westway Trust’s tenants, and Portobello market traders.
## **Sports Bursaries**
In partnership with the operator of Westway’s sporting facilities, Everyone Active, we distributed bursaries for individuals in North Kensington to participate in sports programmes
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at the centres, to a total value of £30,000. This programme of bursaries forms part of Everyone Active’s social contribution, as detailed in their contract with Westway Trust.
## **Young Achievers Participatory Grant-making Pilot**
In 2021 we recommenced the rollout of a participatory grant-making pilot, aimed at young people in North Kensington aged 11-18 years. Applicants were given the opportunity to receive grant funding for a project of their choice. Grants of up to £250 were available for individuals or up to £750 for groups.
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. For this pilot programme, young applicants to the fund were asked to provide input and feedback to fellow applicants, with a view of fostering collaboration between each applicant’s project.
A total of £10,000 was awarded to 25 young individuals.
## **Miscellaneous support**
In addition to the grant programmes outlined above, a £620 one-off payment was made to repair and replace damaged art work at Maxilla.
## **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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## **COVID-19 response**
The pandemic had a massive impact on Westway Trust in 2021/22. It would not be an understatement to say that it actually threatened the future of the Trust, particularly at a time when a new Board was in place having to deal with a transition plan in terms of governance and operations. Naturally, this also affected the speed at which key drivers such as ‘Community Centring’ could be implemented.
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. Had the Trust not been able to achieve re-negotiations with Everyone Active or had Everyone Active had to close due to the resurfacing of the pandemic, the Trust would have been left with an almost insurmountable problem in terms of replacing the lost income. We should not forget how serious the income pressures were for the Trust as well as for our tenants.
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 have 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.
## **Learning**
The area of learning was one of the few areas of the Trust where delivery remained at a good level. The majority of the Trust’s learning programmes continued to be delivered throughout the
**REPORT OF THE BOARD OF TRUSTEES 2022**
pandemic This was largely achieved by adapting to new and inventive ways of delivering classes and courses online even as other areas were furloughed
The Learning Team showed remarkable resilience to continue to support the local community in a variety of ways. In the last year they provided:
## **Pop-up Nursery**
- Nursery hours from April 2021-March 2022 = 1152 hours
- Creche hours from April 2021-March 2022 = 406 hours
- We provided creches for RBKC and the Race Equality Foundation
- Two parents were provided with support for housing and gained one Education health plan for a child
- One Kickstart apprentice worked in the Nursery for six months who then got a full-time job in childcare at another setting when she finished her work placement.
## **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 feeling more confident (93%) as a result of the course.
## **Supplementary Schools**
- St. Mary’s Ukrainian School joined our RBKC Supplementary Schools Partnership in May 2022.
- Over 1,000 children attended 140,000 contact hours of learning
- 425 contact hours of training – Training including First Aid, Health & Safety, interactive Safeguarding, Safer Recruitment, Triple P, Be Well Do Well.
- Awards night to celebrate the children’s hard work over the year – 16 Supplementary Schools took part and more than 290 people attended. 128 Awards were given out to the children and volunteers.
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- SFSC Parenting Courses & Triple P (Positive Parenting Programme) In total 3 SFSC Programmes (13 WKs each) were delivered, 30 Parents attended.
## **Community Development – Traveller Community**
This opportunity was central to the Trust demonstrating that at a time of significant challenge we were able to respond to an extremely vulnerable group, and also a group that is resident adjacent to the Westway Trust estate.
- 35 hours a week community development which includes 17.5 hours a week supporting the Irish Traveller Community in North Kensington.
- Community advice, information and guidance, referrals to relevant agencies, one to one support and walk-in Crisis support
- Run an after-school club for under-eights on Stable Way Traveller’s site every Monday and Thursday term time.
- £6,966 awarded to 36 individuals through Westway’s sports bursaries. Football pitches, football sessions, football coaches, tournaments, gym memberships, swimming lessons.
- 17 referrals made to SHELTER where households received professional housing advice, support and legal services.
- Professional singing lessons for the Traveller children on Stable Way
- Weekly mindfulness group for the Traveller women on Stable Way. This included meditation, yoga, qigong.
- £4,208 awarded from the Westway Trust Emergency Response Fund which included a seizure detector, laptops, iPads, dryers, washing machines, fridges, freezers, beds, tables and chairs.
- £5,000 awarded from Westway Trust for school uniforms for families on a low income.
- £9,500 awarded by Westway Trust for young participatory grants – Including horse riding, hair and beauty course, boxing lessons and kit, digital anime workshops, go-Karting, sky diving.
## **Westway Community Street**
In March 2020 Westway Trust secured £1,346,000 in funding from the Greater London Authority (GLA) Good Growth Fund to make significant improvements to the estate through a project called Community Street. Whilst this might appear to be a large amount, particularly when enhanced by
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our own contribution, this sum when distributed through the many projects that we would like to see across the estate only touches the surface of investment required in the medium – long term.
The Community Street project accomplished a number of key milestones as part of the project development in 2021/22.
1. **RIBA STAGE 1 - Preparation and Brief** , signed off in December 2021. During this time we have been recording the preparatory stages of the project. This included extensive site research: photographic study of the Trust estate, detailed mapping and audits of the existing estate conditions, engagement with key community stakeholders and preparation of an initial project list.
**2. RIBA STAGE 2 – Concept Design** , signed off in March 2022. This was built on the outcomes of the Co-design process delivered in collaboration with Lugadero where we have put forward a full list of potential projects. Consideration was given to equal distribution of the projects across the Trust’s estate but it appeared from the outset that the available budget at this point was not sufficient to deliver all identified projects. However, this wider vision has helped the Trust to establish a future direction and framework for further investment on the estate so that the successful Community Street transformation is achieved.
Inevitably the pressure on construction materials and labour costs will see a rise in the overall costs of this important project and we will need to prioritise the different aspirations that were articulated through our consultation period. This project is also an illustration of the importance of partnership building and supporting the local economy, whether that be with statutory bodies such as the GLA or with locally based operators such as Lugadero.
More information on the Community Street project can be found at www.communitystreet.org
## **REPORT OF THE BOARD OF TRUSTEES 2022**
## **PLANS FOR THE FUTURE**
A new strategic ‘Horizon Plan’ was agreed by the Trustees in December 2021 ready to start in the calendar year 2022 and the financial year of 2022/23. Like so many organisations, we have had to review our activity in the wake of the Covid-19 pandemic and acknowledge that the impact on so many communities and businesses has been devastating. Our immediate response was pro-active which has helped set the scene for recovery, but operating in a post Covid world will be a true test of our character.
In order to survive and thrive going forward, we should remain hopeful, reminding ourselves that we must focus our efforts to become more purposeful, courageous, innovative, skilful and more determined to stand with those most in need in North Kensington, inspiring hope and offering opportunities for connection, growth and progression.
The Trust is currently engaged in two equally critical processes. That of ‘continuous improvement’ and that of ‘transformation.’ Both take account of the changing environment, the willingness and necessity to fully engage with the communities of North Kensington. And the recognition that we must learn from the setbacks, challenges and successes we have faced over the last few years.
The plan takes an outcomes-based approach. In other words, the outcomes are drivers towards our Mission and Vision and these are underpinned by a set of Values. We have paid particular attention to the recommendations from the Tutu Foundation (UK) Review into Institutional Racism at the Westway Trust, which was published in 2020, and honour the commitment to implement all the recommendations. Indeed, we wish to go further whenever we identify the right opportunity to do so. The plan is balanced, in that it considers the needs of our social, charitable and commercial operations, as well as allowing for unforeseen opportunities.
We believe the Horizon Plan and the rigorous approach to Equality, Diversity and Inclusion responds to evidence of need, that it is a commitment for change and transformation and that it offers a clear, purposeful and measured pathway for the next part of our journey with our communities.
**Outcomes and Work Packages**
**Encourage connectivity and understanding between communities and reduce barriers to mutual engagement.** Work packages:
1. Define and articulate ‘Social Value’
2. Define and articulate ‘Place-based Working’
3. Review Processes to manage complaints and compliments
4. Design and pilot social justice grants
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5. Design and pilot Anti-racism grants
6. Conduct extended open conversation/s with the African / Caribbean community
7. Commission and Deliver an Understanding Reparations learning programme
8. Pilot a National Programme for Racial Literacy
9. Research and develop an Archive of the Westway Story
## **Increase community and citizen participation.**
## Work packages:
10. Stakeholder engagement plan
11. Define and articulate ‘Community Centering’
12. Build a media engagement plan (as part of wider Communications Plan)
13. Westway Alumnii Programme
14. Build Policy partnerships
15. Review opportunities for expansion of the learning team via learning partnerships
16. Programme Innovation and Small Grants – including by proxy
17. Citizen Science and Community Researchers Programme
18. Review and Introduce policy and practice for Volunteer Management
19. Develop a response to Artists / Creative Conversations
20. Commission and deliver a Grants Review
21. Enhance Community Networks
22. Develop a programme for Civic Participation for Under-represented groups
23. Amplify Community Voices
24. Review of Membership, including in relation to Governance)
## **Ensure greater access to the land, environmental improvements and increase space for**
**community use.**
## Work packages:
25. Articulate the Asset Management Plan and enhance the tools for effective management
26. Review the plans for Forward Maintenance
27. Plan and Deliver Disability Audit
28. Review the Refurbishment Policy
29. Review the Service Charges Policy and Practice
30. Review the Nursery Service
31. Review the Pods Experiment and develop a Meanwhile Use Plan
32. Develop a long-term Environmental Plan
33. Develop and articulate an Estate Development Plan
34. Deliver the Community Street Project
35. Secure a Green Flag Standard for the estate Gardens
## **Encourage access to a range of life chances and therefore opportunities to fulfil potential**
## Work packages:
36. An Equality, Diversity and Inclusion Action Plan
37. Becoming and Anti-Racist Action Plan
38. Design and deliver speakers programme – Institutional Racism
39. Develop a campaign for the Centre for Civil Rights and Race (working title)
40. Deliver a plan for the Centre for Civil Rights and Race (working title)
41. Enable and participate in the Review of the Review (working title)
42. Explore the opportunity for a Free University of North Kensington
43. The Westway Innovation Unit
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44. Formalise the Work Experience programme
45. Research the opportunities to expand Supplementary Schools Programme
46. Research and create a data bank to support sign-posting
47. Research the potential for business, enterprise and trades development programme
48. Research opportunities for capacity building programmes
49. Scope for opportunities in physical and mental health programme delivery
## **A well-led workforce within an organisation that is structure for good performance and supports continuous improvement and staff well-being.**
Work packages:
50. Strengthen the Executive Team
51. Strengthen the Staff Team
52. Develop a Staff Well-being Plan
53. Begin review of Policies
54. Strengthen Financial Planning
55. Plan for better financial sustainability
56. Develop an Income Generation Plan
57. Review of Risks and Risk Management
58. Develop Annual Impact Reporting Framework
59. Board Enablement Programme
60. IT Audit
61. Review of Organisational Calendar, Work Cycle and Internal Meetings
62. Review of Property Team Structure
63. Review of recording Concerns around External Engagement
64. Review of Zero Hours Contracts
65. Review of Website and implement changes
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## **FINANCIAL REVIEW**
## **Recognised Income**
Recognised Income for the year was £6,772,000 in 2022 as compared to £5,980,000 in 2021. This represents an increase on the previous financial year of £792k. This increase mainly relates to the agreement with Sports Leisure Management (see Note 26) and the lifting of Covid-19 restrictions and the resultant increase in economic activity. In this reporting year, 2022, provision for bad debt has also increased to £4,278k (2021: £2,725k.)
The largest proportion of our income is from property rental £5,219,000 (2021: £4,561,000). We also received £660,000 in grants and other earned income (2021: £883,000).
## **Recognised Income: April 2021 to March 2022**
**----- Start of picture text -----**
Grants received
Other income
from Royal
and interest,
Borough of
£328k
Property Service Kensington & Grants and Donations for
Charges, £418k Chelsea, £400k other activities, £145k
Car Park Income,
Earned
£162k
income, £77k
How we
generate our
income:
£6,772,000
Property Rental
Income, £5,219k
**----- End of picture text -----**
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We received £423k including Grenfell funds (of £23k) in grants and crèche fees from the Royal Borough of Kensington and Chelsea (2021: £462k including Grenfell funds). These amounts funded several of our charitable community programmes including learning and creche programmes.
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## **Expenditure**
Total expenditure was £6.1m as compared £6,8m in 2021. This is arising mainly from a reduction in Property Management costs as various projects have not started. The main items that make up this amount include:
- Our Staffing Costs were £1.8m up from 2022(1.6m) primarily arising from filling vacant roles post Covid.
- £539k of grants awarded, an increase of £37k from 2021.
- £83k in support of Bay20 an increase in from £77k in 2021.
- £325k maintaining and improving the property estate we have began improving the look and feel of the estate.
- £44k on maintaining the grounds and gardens of the estate to provide usable green spaces for the community’s wellbeing.
- £1.5m on additional bad debts provision relating to the agreement with SLM (see Note: 26.)
## **Expenditure: April 2021 to March 2022**
**----- Start of picture text -----**
Grants awarded,
£539k
Bad Debts,
Support for
£1,552k
Bay20, £83k
Depreciation, Materials and
£465k
overheads,
2021-22 £269k
Other staffing Expenditure and
related costs, provisions:
£125k £6,111,000 Development
, £148k
Governance,
£43k Payroll costs,
£1,716k
Ground and
Garden
Property
Maintenance ,
improvement,
£44k
Insurance and repairs &
Communicati
other maintenance,
ons and
£325k
establishment
marketing,
£15k costs, £787k
**----- End of picture text -----**
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## **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 Chair of the Trust is selected annually by the other trustees from the six openly recruited trustees and the community also played an important part in the initial recruitment process. This is part of our new process of community centring which will be seen across other key appointments in the Trust in the future.
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 offers 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 previous 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 but came to an end in February 2022. However, the issue of how we best support trustees from diverse backgrounds is not closed. We
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## **REPORT OF THE BOARD OF TRUSTEES 2022**
will continue to work on a case-by-case basis to explore how we can enable the full range of talent in our community to become involved in the Governance of the organisation. We will also take up conversations with regulatory bodies around this issue because we must help shift the dial as to who is enabled to become a strategic decision maker and who is at risk of remaining excluded.
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 2022 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.
The Trustees delegate the day-to-day running of the Trust to the Chief Executive. 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. Her recruitment was another moment where the community were involved in decision making. Community involvement and the appointment of a person with empathy for this has been a vital step in the transformation of the Trust.
The work of trustees is guided by four sub-committees to the Board, each one chaired by a Trustee. The current set of sub-committees is as follows:
- **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. The Committee also monitors the governance of the Trust; and
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- **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. The Committee also oversees the recruitment of trustees, as well as trustee induction, training and development.
## 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 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. 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.
22
**REPORT OF THE BOARD OF TRUSTEES 2022**
## **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 the pandemic and its aftermath. 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 adversely affected by developments, decisions or lack of progress on key issues of importance to the community. Community confidence decreases as a result of poor communication by the Trust.
Communications plan regularly reviewed and day to day communications further strengthened. Continuing programme to bring demonstrable community involvement in decision-making as 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 at the Trust. Offering more touch points around the direction of the Trust, such as community forums about our future plans. Making visible progress on implementing recommendations from the Institutional Racism Review and reporting to the community on how this is moving forward. Press ahead with the Centre for Civil Rights and Race.
23
**REPORT OF THE BOARD OF TRUSTEES 2022**
The Covid-19 pandemic resurfaces and leads to further lockdowns. Reduced income continues due to the pandemic impact on the Trust’s tenants and their ability to recover. This is further exacerbated by the cost of living increase where inflation has risen considerably in the later part of the financial year.
Capture learnings from first lockdown so we can react quickly. Review budget implications of new lockdown. Active monitoring and account management of key tenants, including through short-term support packages as necessary to help tenants manage through any further lockdown and the aftermath. Increase levels of income generation and fundraising, develop Income Generation Plan and find ways of diversifying our income streams as well as a contingency plan for increased expenditure.
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.
Ongoing review our Business Continuity plan. Risk of ill-health, reduced morale and losing Further development and implementation of staff as a result of staff wellbeing issues, Staff Wellbeing Programme, offering a range including concerns around capacity or of activities and other support in response to workload not being addressed. what staff have said they would find helpful. Ensure system in place to handle matters of staff concern. Recruitment into key posts taking place, alongside re-assessing work priorities and capacity levels. Failure to find balance between maximising Develop an appropriate Asset Management commercial income and providing more tool and a clear policy. Implement planning affordable spaces for community use and also and reporting. Ensure the policy is publicised maximising income. widely. Trial of new processes on Lettings and consider Meanwhile Space.
24
**REPORT OF THE BOARD OF TRUSTEES 2022**
Major roadworks on the Westway lead to Ensure good working relationships with TfL. disruption of Trust activities or to other Agree leeway with TfL on the timetable for any problems 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 consider that the Trust is in a sufficiently secure financial position going forward for the next 12 months from the date these accounts have been signed. They have reviewed our financial position and financial forecasts, taking into account the level of reserves and cash, the effects of the pandemic, the cost of living increase and our systems of financial control and risk management.
There is risk in the current cost of living increase and the upcoming recession, however, we have processes in place to give us good notice of fluctuations to enable mitigating actions and we are seeing a recovery in our rental income. We have planned for debt recovery in the coming year which should see an increase in our income and we have made contingency provision to support costs and wages.
At year end a bad debt provision of £4,278k was held in the balance sheet to account for revenue that had been invoiced but not yet received. At the year end Trust still held a positive accumulated reserves balance of £63.604m of which £1.155m is unrestricted, £12.845m is designated and Revaluation reserve of £39.0 m. Also, cash deposit balances amounted to £5.576m. A contingency budget line has been approved for the next two years in order to counter the negative impact of increased inflation.
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 cost of living risks successfully. And that the Trust has adequate resources to continue in operation for at least the next 12 months. It
25
**REPORT OF THE BOARD OF TRUSTEES 2022**
is therefore appropriate to adopt the going concern basis of accounting in preparing the annual accounts.
## **Valuation of Property Portfolio**
The Trust is required to measure its investment properties at Fair Value. This year a report has been prepared by the CEO based on the 2021 Cushman & Wakefield valuation, which indicates that there has been no change in the fair value of the investment portfolio. The CEO report draws upon market data from Knight Frank, Derwent London, Avison Young and Carter Jonas. It also considers the condition of the property, compliance factors, statutory factors, the marketable value and the RBKC local plan for relevant context.
As we emerge from the Covid-19 pandemic the property portfolio is not subject to material uncertainty in its valuation. As we are concentrating on medium-term development and new lettings business we are well placed to balance medium term objectives with stakeholder responsibilities and relationships with our community. We are not in the corporate market where there has been a ‘flight to quality’ and we score highly with local demand, flexibility, and the dynamic development of the land surrounding the estate, which helps buoyancy. Whilst we are challenged on quality, design and technology in some of our units, this is counteracted by the demand for smaller industrial units, small-batch making units, the fast approaching implementation of our Community Street project and our connectivity and proximity to amenities.
The CEO report gives specific consideration to the valuation of the Sports Centre, arguably our biggest asset. Whilst income fell considerably, we can see recovery and with further development on the horizon and the fact we are making provision for an upgrade, in the medium term, we think the asset will remain on an even keel or may even increase its value.
In summary, we have positive indicators that allow us to plan for the future and a context that indicates us to hold the fair value of our portfolio at £56,625,000.
## **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
26
**REPORT OF THE BOARD OF TRUSTEES 2022**
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. (2021: nil). Capital commitments at the year-end amounted to £nil (2021: 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 £558,840.
However, our free, undesignated reserves amounted to £1.155m as at 31 March 2022. The Trust is holding these reserves to ensure we have enough capacity to undertake minor refurbishments to the estate.
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 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.
27
**REPORT OF THE BOARD OF TRUSTEES 2022**
## **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 £498k.
## **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.
28
**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.
29
**STATEMENT OF TRUSTEES’ RESPONSIBILITES**
Signed on behalf of the Trustees
Toby Laurent Belson Chair 11 January 2023
30
**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 2022 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 2022 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.
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST**
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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 has 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:
32
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST**
- 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
- 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
33
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST**
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
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:
34
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST**
- 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.
- 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
35
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESTWAY TRUST**
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: 11 January 2023
**Shivani Kothari** (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
9 Appold Street
London
EC2A 2AP
36
**STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
_Income from charitable activities_
Grants, earned and other income
2
Miscellaneous income
_Income from investments_
Land and property rentals
5
Rent Concession
Car Park income
Interest receivable
Miscellaneous income
_Other income_
Property service charges
Miscellaneous income
**Total income**
**Expenditure**
_Expenditure on charitable activities_
3
_Investment management costs_
Property management
7
**Total expenditure**
Net gain/(loss) on investments
12
**Total net income (expenditure) before**
**transfers**
Transfers between funds
10
**Net movement in funds**
_Reconciliation of funds_
_Balances brought forward at 1 April 2021_|**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total 2022**
**Total 2021**
**£'000**
**£'000**
**£'000**
**£’000**
**£'000**
114
-
546
660
874
-
-
-
9|
|---|---|
||**114**
**-**
**546**
**660**
**883**|
||5,334
-
-
5,334
4,774
(115)
-
-
(115)
(213)
162
-
-
162
103
1
294
-
-
1
-
2
294
11
-
-
-
418
418
326
17
-
-
17
96|
||**5,807**
**-**
**965**
**6,772**
**5,980**|
||
1,834
164
906
2,904
2,834
2,756
91
360
3,207
4,000|
||**4,590**
**255**
**1,266**
**6,111**
**6,833**|
||
-
225
-
225
(370)|
||**1,217**
**(480)**
**(301)**
**886**
**(1,223)**|
||
(261)
261
-
-
-|
||**956**
**741**
**(301)**
**886**
**(1,223)**|
||199
51,657
10,862
62,718
63,941|
37
**STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
|**Balances carried forward at**
**31 March 2022**
19|
**1,155**
**51,888**
**10,561**
**63,604**
**62,718**|
|---|---|
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
38
## **BALANCE SHEETAS AT 31 MARCH 2022**
|**Note**
**Non-current assets**
Charitable buildings
11
Investment property
12
Other tangible fixed assets
13
Intangible assets
14
Accrued income
15
**Current assets**
Debtors
16
Short term deposits
Cash at bank and in hand
**Liabilities:**
amounts falling due within one
year
17
**Net current assets**
**Total assets less current liabilities**
**Liabilities:**
amounts falling due after more
than one year
18
**Net assets**
**Funds**
19
Unrestricted funds
General fund
Revaluation reserve
Other designated funds
**Restricted funds**||**2022**
**_2021_**
**£'000**
**_£'000_**
**_£'000_**
1,618
_2,060_
55,421
_55,196_
54
_50_
10
_10_
979
_1,204_
**58,082**
**_58,250_**
670
3,666
1,612
_5,948_
(1,478)
**6,019**
**_4,470_**
**64,101**
**_62,990_**
(498)
_(273)_
**63,604**
**_62,718_**
1,155
_199_
39,043
_38,818_
12,845
_12,840_
**53,043**
**_51,858_**
**10,561**
**_10,861_**
**63,604**
**_62,718_**|**2022**
**_2021_**
**£'000**
**_£'000_**
**_£'000_**
1,618
_2,060_
55,421
_55,196_
54
_50_
10
_10_
979
_1,204_
**58,082**
**_58,250_**
670
3,666
1,612
_5,948_
(1,478)
**6,019**
**_4,470_**
**64,101**
**_62,990_**
(498)
_(273)_
**63,604**
**_62,718_**
1,155
_199_
39,043
_38,818_
12,845
_12,840_
**53,043**
**_51,858_**
**10,561**
**_10,861_**
**63,604**
**_62,718_**|
|---|---|---|---|
||**£'000**|||
|||||
|||||
|||||
|||||
|||||
|||||
||||**_58,250_**
**_4,470_**|
|||||
|||||
||1,501|||
||3,666|||
||1,738|||
||6,905|_5,948_
(1,478)||
|||||
||(886)|||
|||**6,019**
**64,101**
(498)
**63,604**
1,155
39,043
12,845
**53,043**
**10,561**
**63,604**||
|||||
|||||
||||**_62,990_**
_(273)_|
|||||
|||||
|||||
|||||
||||**_62,718_**|
||||_199_
_38,818_
_12,840_|
|||||
|||||
|||||
|||||
|||||
|||||
||||**_51,858_**
**_10,861_**|
|||||
|||||
|||||
||||**_62,718_**|
Approved by the Trustees on 11 January 2023 and signed on their behalf
Toby Laurent Belson, Chair
39
**CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**Net cash inflow from**
**operating activities**
24
**Interest and servicing of loans**
Bank interest received
**Net interest**
**Capital expenditure**
Payments to acquire other charity fixed
assets
13
**Total capital expenditure**
**Increase/(Decrease) in cash and bank**
**deposits**
25
**Represented by:**
Increase/(decrease) in short-term deposits
Increase/(decrease) in cash
25|**2022**
**_2021_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
**152**
**_29_**
2
_9_
**2**
**_9_**
(28)
_-_
**(28)**
**_-_**
**126**
**_38_**
-
_(1000)_
126
_1038_
**126**
**_38_**|**2022**
**_2021_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
**152**
**_29_**
2
_9_
**2**
**_9_**
(28)
_-_
**(28)**
**_-_**
**126**
**_38_**
-
_(1000)_
126
_1038_
**126**
**_38_**|**2022**
**_2021_**
**£'000**
**£'000**
**_£'000_**
**_£'000_**
**152**
**_29_**
2
_9_
**2**
**_9_**
(28)
_-_
**(28)**
**_-_**
**126**
**_38_**
-
_(1000)_
126
_1038_
**126**
**_38_**|
|---|---|---|---|
||**£'000**|||
|||||
|||||
|||||
|||||
||2|||
|||||
|||**2**
_-_||
|||||
|||||
||
(28)|||
|||||
|||**(28)**
**126**
-
126
**126**||
|||||
||||**_38_**|
||||_(1000)_
_1038_|
|||||
|||||
|||||
|||||
|||||
|||||
||||**_38_**|
40
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **1.a. 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**
The going concern of the Trust rests on its ability to receive its rental income and meet its expenditure obligations for the next 12 months from the signing of the financial statements. The trust has engaged proactively with its tenants ensuring that they meet their obligations and where they have experienced difficulties we have given concessions to support the viability of our tenants which facilitates the going concern of the Trust. The Trust renegotiated its agreement with SLM Everyone Active to ensure we are on a firmer footing going forward these (see note 26). Due to the cost of living increase and inflationary pressures, the Trust is continuously reviewing its performance against the set budget to ensure it is financially viable and able to meet its commitments. It has also been agreed in the new budget to make contingency provision to support costs and wages. The Trust has a healthy unrestricted reserves and designated reserves are available to support the trusts activities.
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
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
the 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
42
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
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.
## **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.
43
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
(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.
## **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
44
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
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.
## **1.b. INCOME FROM CHARITABLE ACTIVITIES BY AREA**
|Social Wellbeing
Environmental
Well being
Economic
Wellbeing|2022
Earned
income
Restricted
grants
Grenfell
Response
Total
_£'000_
_£'000_
_£'000_
_£'000_
-
-
23
23
-
105
-
105
92
440
-
532
**92**
**545**
**23**
**660**|_2021_
_Earned_
_income_
_Restricted_
_grants_
_Grenfell_
_Response_
_Total_
_£'000_
_£'000_
_£'000_
_£'000_
_-_
_7_
_8_
_14_
_-_
_-_
_-_
_-_
_402_
_466_
_-_
_869_|
|---|---|---|
|||**_403_**
**_472_**
**_8_**
**_883_**|
45
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **2. INCOME FROM CHARITABLE ACTIVITIES BY FUNDER**
|**2. INCOME FROM CHARITABLE ACTIVITIES BY FUNDER**||
|---|---|
|**2022**
**Earned**
**income**
**Grants and**
**Restricted**
**Income**
**Grenfell**
**Response**
**Total**
**Source**
**Programme**
£’000
£’000
£’000
£’000
Royal
Borough of
Kensington
and Chelsea
Adult Learning
-
190
-
190
Supplementary
Schools
-
76
-
76
Crèche
-
90
-
90
Parenting
-
28
-
28
Early Years
-
16
-
16
Sport bursary
-
-
-
-
Grenfell Response
-
-
23
23
Other
-
15
-
-
**Sub-total RBKC**
**0**
**415**
**23**
**438**
John Lyon's
Charity
Adult Learning
-
40
-
40
DWP
CJRS Grants
60
-
-
60
SLC
Crèche
9
-
-
9
GLA
Community Street
-
105
-
105
Sport England Go Gen Project
-
-
-
-
Crèche and
others
Various
8
-
-
8
**Total**
**77**
**560**
**23**
**660**|**_2021_**
**_Earned_**
**_income_**
**Grants and**
**Restricted**
**Income**
**_Grenfell_**
**_Response_**
**_Total_**
_£’000_
_£’000_
_£’000_
_£’000_
-
236
-
236
-
76
-
76
4
91
-
95
-
28
-
28
-
16
-
16
-
2
-
2
-
-
8
8
-
-
-
-|
||**4**
**449**
**8**
**462**
-
8
-
8
385
-
-
385
_2_
-
-
2
-
10
-
10
-
5
-
5
_11_
_-_
-
_11_|
||**402**
**472**
**8**
**883**|
46
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **3. EXPENDITURE ON CHARITABLE ACTIVITIES**
|**Expenditure on**
**continuing activities**
Charitable Activities
Investment Activities
property
management
**Expenditure on**
**charitable activities**
**Social Wellbeing**
Engagement
Health and wellbeing
Arts, culture and
community grants
Grenfell response
**Environmental**
**Wellbeing**
**Economic Wellbeing**
Stewardship
(including property
development)
Economy and Skills
**Made up of:**
Grants awarded
Community
consultation
Materials and project
costs|**General**
**funds**
**Allocated**
**Support**
**Costs**
**(Note 8)**
**Total**
**(including**
**support**
**costs)**
**Designate**
**d funds**
**Restricted**
**funds**
**Total 2022 Total 2021**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
1,051
783
1,834
164
906
**2,904**
**2,834**
2,351
405
2,756
91
360
**3,207**
**3,999**|
|---|---|
||**3,402**
**1,188**
**4,590**
**255**
**1,266**
**6,111**
**6,833**|
||**General**
**funds**
**Allocated**
**support**
**costs**
**Total**
**including**
**support**
**costs**
**Designate**
**d funds**
**Restricted**
**funds**
**Total**
**2022**
**Total**
**2021**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**612**
**160**
**772**
**28**
**474**
**1,274**
**1,372**
60
62
122
0
0
**122**
**246**
0
0
0
0
54
**54**
**-**
530
54
584
1
400
**985**
**1,079**
22
44
66
27
20
**113**
**47**
**176**
**129**
**305**
**0**
**0**
**305**
**360**
**263**
**494**
**757**
**136**
**432**
**1,325 1,102**
25
69
94
136
105
**335**
**257**
238
425
663
0
327
**990**
**845**|
||**1,051**
**783**
**1,835**
**164**
**906**
**2,904**
**2,834**|
||443
0
443
18
78
539
502
0
0
-
0
0
0
0
17
3
20
10
60
90
29|
47
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Staff Costs
Other staff costs
Improvements,
repairs and
maintenance
Car Park expenditure
Environment projects
Ground and Garden
Maintenance
Insurance and other
establishment costs
Information technology
Communications and
marketing
Property Development
Governance
Professional fees and costs
Other overheads
Bank charges
Bad debts
Depreciation
Internal recharges|456
328
784
46
188
1,018
1,215
18
199
217
16
6
239
145
42
3
45
50
106
201
35
0
0
-
0
0
0
0
4
0
4
0
0
4
6
21
0
21
0
0
21
6
45
62
107
0
40
147
158
1
85
86
0
7
93
161
0
10
10
0
0
10
10
0
0
-
0
0
0
0
0
28
28
0
0
28
24
0
10
10
22
11
43
73
4
11
15
1
5
21
2
0
2
2
0
0
2
2
0
0
-
0
0
0
0
0
42
42
1
400
443
466
-
-
-
-
0
0
0|
|---|---|
||**1,051**
**783**
**1,831**
**166**
**906**
**2,904**
**2,834**|
48
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **4. GRANTS AWARDED**
||Supplementary|
Small grants to|Bay 20|COVID 19|Young|Sports Grants|Grenfell|Rent subsidies|**Grand Total**|
|---|---|---|---|---|---|---|---|---|---|
||Schools|local charities||Support|achievers||Response|to charity||
|||and community|||awards|||tenants||
|||groups||||||||
|**2022**|£|£|£|£|£|
£|£|£|**£**|
|ALL Saints Catholic College|990||||||||**990**|
|ACAVA|||||||1,050|24,000|**25,050**|
|Age UK Kensington & Chelsea||2,500|||||||**2,500**|
|Nisa Empowerment Response|7,570||||||||**7,570**|
|Azza Supplementary School|6,232|
500|||||||**6,732**|
|Babajani Ltd Total||498|||||||**498**|
|Baraka Youth Association|6,478||||||||**6,478**|
|Bike Works CIC||||||||10,833|**10,833**|
|Chabad of Notting Hill Total||3,000|||||||**3,000**|
|C R||5,600|||||||**5,600**|
|Children & Parents||2,700|||||||**2,700**|
|CL Standing||11,200|||||||**11,200**|
|D Somali Organisation|4,467||||||||**4,467**|
|Dalgarno Supplementary|6,204|||1,000|||||**7,204**|
|School||||||||||
|Dance West CIC||1,416|||||||**1,416**|
|Eritrean Parents' & Children's|||||1,900||||**1,900**|
|Association||||||||||
|EPCA|1,503|
2,160||||||228|**3,891**|
|Gabrielle Tierney Consulting||2,200|||||||**2,200**|
|Ltd Total||||||||||
|Gold & Ashes|||||||2000||**2,000**|
49
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|**Grants Awarded**
**(Continued)**|Supplementary
Schools|
Small grants to
local charities and
community|Bay 20|COVID 19
Support|Young
achievers
awards|Sports Grants|Grenfell
Response|Rent subsidies to
charity tenants|**Grand Totals**|
|---|---|---|---|---|---|---|---|---|---|
|||groups||||||||
|**2022**|£|£|£|£|£|£|£|£|**£**|
|HSS HIRE SERVICE GROUP PLC||398|||||||**398**|
|Total||||||||||
|Just Solutions 123 Limited||620|||||||**620**|
|Kamitan Arts|||||||600||**600**|
|Kodjo Yenga Educational Trust &||2,500|||||||**2,500**|
|Foundati Total||||||||||
|Kids On The Green|1,800||||||||**1,800**|
|Latimer Community Art Therapy|||||||200||**200**|
|Leisure-Net Solution Ltd Total||5,760|||||||**5,760**|
|Lesa Flight Seminar (Lesa Thomas||1,500|||||||**1,500**|
|Dodd) Total||||||||||
|London Funders Total||870|||||||**870**|
|London Youth Hindleap Warren|4,100||||||||**4,100**|
|Making Communities Work &|794||||||||**794**|
|Grow||||||||||
|Maestro7 CIC||4,550|||||||**4,550**|
|Midaye Somali Development||||||||||
|Netw|4,120||||||||**4,120**|
|Mangrove Community Association||||||||||
|Total||2,675|||||||**2,675**|
|MO1YOUTHS Total||1,985|||||||**1,985**|
|Mutual Aid, Kensington and||||||||||
|Chelsea Total||2,860|||||||**2,860**|
|Neighbourhood Doulas||3,600|||||||**3,600**|
|North Kensington Hearts and||||||||||
|Minds CIC||4,270|38,450||||||**42,720**|
|Notting Hill Community Church|||||||2,000||**2,000**|
|One Voice Community Collective||||||||||
|Total||2,700|||||||**2,700**|
50
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Our Needed Education (ONE)
**Grants Awarded**
**(Continued)**
**2022**
Orange Coffee
Pavilion Hive
Pimento
Persian Care Centre
Pink Tea Café
Patrycja Skala-Williams
Portobello Lampshades
P3 T/A The Rugby Portobello
Trust Total
Quinoa Arepa Peru ltd
RBK&C Financial Services Total
Red Star Catering LTD
Renagade Theatre Total
Robert Barbers
Ramadan Tent Project Limited
Total
Response Community Projects
Sarita Aujla Consultancy Total
S H Ragab Total
Simply Paella Limited
Somali Women's Association
Steve O'Hara Total|3,000
**3,000**
Adult &
Community
Learning
Artists
Professional
Development,
training and
commissions
Covid-19
support
Festival
Funds
Grenfell
Response
Green
Infrastructure
Fund
Rent
subsidies to
charity
tenants
Small grants to
local charities and
community
groups
**Grand Total**
£
£
£
£
£
£
£
£
**£**|
|---|---|
||51
-
-
-
1,000
-
-
-
-
**1,000**
-
2,500
-
-
-
-
-
-
**2,500**
3,546
900
**4,446**
851
1,000
**1,851**
1,000
**1,000**
250
**250**
1,000
**1,000**
1,296
**1,296**
1,000
**1,000**
13,329
**13,329**
1,000
**1,000**
2,500
**2,500**
1,000
**1,000**
2,500
**2,500**
4,374
**4,374**
3,000
**3,000**
2,500
**2,500**
1,000
**1,000**
5,199
**5,199**
420
**420**|
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
Success Path Ltd Total
1,950
**1,950**
Talking Places Ltd
1,000 **1,000**
|**Grants Awarded**
**(Continued)**|Adult &
Community
Learning|Artists
Professional
Development,
training and
commissions|Covid-19
support|Festival
Funds|Grenfell
Response|Green
Infrastructure
Fund|
Rent
subsidies to
charity
tenants|Small grants to
local charities and
community
groups|**Grand Total**|
|---|---|---|---|---|---|---|---|---|---|
|**2022**|£|£|£|£|£|£|
£|£|**£**|
|T G||2,035|||||||**2,035**|
|Teit Ethopia Supplementary||||||||||
|School|4,878|1,000|||||||**5,878**|
|The First Georgian Supp School|2,187||||||||**2,187**|
|The Gheez Rite Community Assoc|3,366|2,000|||||||**5,366**|
|The Learning Club Community||||||||||
|Association||4,000|||||||**4,000**|
|1 Thorpe Close Offices||||||||63,615.18|**63,615**|
|2 Thorpe Close Offices||||||||43,056.72|**43,057**|
|7 Thorpe Close Offices||||||||83,558.06|**83,558**|
|The Hip-Hop Shakespeare||||||||||
|Foundation Ltd||||||||10,595.00|**10,595**|
|The New Maxilla Social Club Ltd||||||||14,599.98|**14,600**|
|The Playground Theatre Company||2,500|||||||**2,500**|
|The SPACE|||||||3,425||**3,425**|
|The Tabernacle Total||3,500|||||||**3,500**|
|The Regal Duck Ltd||||1,000|||||**1,000**|
|The Warrior Programme||||||||490|**490**|
|The West London Turkish School|2,187||||||||**2,187**|
|Thomas Joseph Michael Delaney||||||||||
|Total||2,500|||||||**2,500**|
52
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Tun Family LTD
Venture Community Association
West London Moroccan Widadia
WSHA
Your Canal Boat CIC Total
53am Hairdresser
AACamoMart- Andrew Spooner
Adrianaz Limited
Bodi Products Ltd
Brave Indie
B M
Common Ground
Compa Food
Dan Street Ltd
Danto Street Food LTD
Director Pepito's Ltd
Emmanuel Peters Sole Trader
Erno Deco ltd
Herbie Mensah Vintage
Hlaing Ltd (Best Falafel)
Hlaing ltd (Singaporean Food)
Homemade Teachers CIC
Mister Greek ltd
M E - founder
Nattymagic Portobello
J C Sports and Education
Youth Action Alliance
Sports & Leisure Management Ltd
**Grants to community**
**organisations**|1,000
**1,000**
2,500
**2,500**
5,706
**5,706**
2,187
1,500
1,000
**4,687**
2,500
**2,500**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
1,000
**1,000**
500
**500**
150
**150**
3,768
833
**4,601**|
|---|---|
||**77,888**
**123,943**
**38,450**
**33,000**
**3,450**
**3768**
**10,358**
**250,976**
**541,833**|
53
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
**Total 2022 77,888 123,943 38,450 33,000 3,450 3,768 10,358 250,976 541,833**
## **2021 Comparative.**
##
|Small grants to local charities and community groups
Supplementary Schools
Green infrastructure
Bay 20
COVID 19 Support
Young achievers awards
Grenfell Response
Rent subsidies to charity tenants
**Total**|49,236
71,189
22,530
37,000
52,851
3,050
6,900
259,334|
|---|---|
||**502,090**|
54
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **5. Income from Property**
|**Income from**
**Property**
Rental Income
Other Property Income|**General**
**Designated**
**Restricted**
**funds**
**funds**
**funds**
**£'000**
**£'000**
**£'000**
2,232
-
-
3,102
-
-|**Total**
**_Total_**
**2022**
**2021**
**£'000**
**£'000**
2,232
2,199
3,102
2,574|
|---|---|---|
||5,334
-
-|
5,334
4,774|
The Income from property for the year was £5.33m up £0.56m (2021: 4.77m). This was primarily as a result of Westway Sports Centre recognised income accounted for prior to finalisation of the renegotiated agreement effective August 2022 (See post balance sheet note 26). This Deed of Variation was entered to ensure the long-term viability of the Westway Sports Centre and its contribution to the Economic, Health and Wellbeing of the local community and the wider area benefiting from their services.
## **6. GOVERNANCE COSTS**
|Audit services
Statutory audit
Attendance and advice to the Trustees|**2022**
**£’000**
35
5
40|2021
£’000
23
5|
|---|---|---|
|||28|
55
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **7. EXPENDITURE ON INVESTMENT ACTIVITIES – PROPERTY MANAGEMENT**
||**General**|**Allocated**|**Total**|
**Designated**|**Restricted**|
**Total**|
|---|---|---|---|---|---|---|
||**funds**|**Support**|**including**|
**funds**|**funds**|
**Property**|
|||**Costs**|**support**|||**Management**|
|||(Note 8)|**costs**||||
|**2022**|**£'000**|**£'000**|**£'000**|
**£'000**|**£'000**|
**£'000**|
|Materials and project costs|-|2|2|
-|-|
2|
|Staff costs|258|170|**428**|
**-**|36|
464|
|Other staff costs|15|103|**118**|
**-**|-|
118|
|Improvements, repairs and|78|-|**78**|
90|-|
168|
|maintenance|||||||
|Car park expenditure|33|-|**33**|
-|-|
33|
|Environment Projects|4|-|**4**|
-|-|
4|
|Ground and garden|23|-|**23**|
-|-|
23|
|maintenance|||||||
|Insurance and other|284|32|**316**|
-|324|
640|
|establishment costs|||||||
|Information technology|-|44|**44**|
-|-|
44|
|Communications and marketing|
-|5|**5**|
-|-|
5|
|Property Development|-|-|-|
-|-|
-|
|Governance (note 5)|-|15|**15**|
-|-|
15|
|Professional fees and costs|100|5|**105**|
-|-|
105|
|Other overheads|5|6|**11**|
-|-|
11|
|Bank charges|-|1|**1**|
-|-|
1|
|Bad debts|1,552|-|**1,552**|
-|-|
1,552|
|Provisions|-|22|**22**|
-|-|
22|
|Depreciation|-|-|-|
-|-|
-|
|Interest recharges|-|-|-|
-|-|
-|
||2,352|405|2,757|90|360|
3,207|
|_2021_|3,389|260|3,649|98|252|4,000|
Comparative figures for 2021 are analysed in Note 28.
## **8. ALLOCATION OF SUPPORT COSTS**
|||**Charitable**|
**Property**|
**Total**|
**Total**|
|---|---|---|---|---|---|
|||**activities**|
**Managemen**|**2022**|
**2021**|
||**Allocated to:**||**t**|||
|||**£'000**|
**£'000**|
**£'000**|
**£'000**|
|Materials andproject costs||3|
2|
5|
3|
|Staffing, recruitment and training||328|
170|
498|
403|
|Other staff costs||199|
103|
302|
151|
|Improvements, repairs and maintenance||-|
-|
-|
1|
|Insurance and other establishment costs||62|
32|
94|
49|
56
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Information technology|85
44
129
189
10
5
15
13
28
15
43
32
10
5
15
71
12
6
18
40
2
1
3
3
44
22
65
85|
|---|---|
|Communication and Marketing||
|Governance||
|Professional fees and costs||
|Other overheads||
|Bank charges||
|Depreciation||
|||
||783
405
1,187
1,040|
|||
|||
## **9. STAFF COSTS**
|**9. STAFF COSTS**||
|---|---|
||**2022**
**2021**|
||**£'000**
**£'000**|
|||
|Salaries and wages|1,653
1,533
121
138
54
70
-
38|
|Social security costs||
|Pension costs||
|Current service costs||
|||
|Terminationpayments||
||1,828
1,779|
|||
|||
|||
|**Average number of employees**|**2022**
**2021**|
|Monthly paid|57
67|
|Full-time equivalent|47
37|
|**The full-time equivalent number of employees analysed by function:**||
|Economy and Skills|16
8|
|Health and Wellbeing|4
2|
|Arts, Heritage and Community|2
1|
|Environmental|3
1|
|Stewardship|8
12|
|Communications and Engagement|2
3|
|Strategy, governance and resources|12
10|
||47
37|
**Number of employees whose emoluments during the year fell between:**
|||**2022**|**_2021_**|
|---|---|---|---|
|£60,000|and £69,999|1|_1_|
57
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|£80,000|and £89,999|0|_0_|
|---|---|---|---|
|£90,000|and £99,999|0|_0_|
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 are committed to ensuring our suppliers do the same. 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**
**Total**
**2022**
**_2021_**
£’000
_£’000_
409
_130_|
|---|---|---|
||||
||||
||Total staff remuneration and benefits paid to key management personnel||
|The Key management personnel are the Chief Executives and 2 heads of department and the two senior Finance|The Key management personnel are the Chief Executives and 2 heads of department and the two senior Finance|The Key management personnel are the Chief Executives and 2 heads of department and the two senior Finance|
|---|---|---|
|managers.|||
|**Trustee Remuneration**|**Total**|**Total**|
||**2022**|**_2021_**|
||**£'000**|**£'000**|
|Toby Laurent Belson|42|27|
|Eve Wedderburn|7|3|
||49|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.
|**Trustee Expenses**
**No of Trustees 2**
**Payment to Trustee**|**Total**
**Total**
**2022**
**_2021_**
**£'000**
**£'000**
7
4|
|---|---|
||7
4|
|||
The expenses include printing and networking costs as well as childcare costs.
**Related party transactions 2022**
|**Related party transactions 2022**||||
|---|---|---|---|
|||**2022**|2021|
|||**£’000**|£’000|
|Venture Community Association|Huey Walker|19|_10_|
58
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|C.A.S.H
Thomas Fitch
Portobello Shopping LTD
Eve Wedderburn|-
7
-
6|
|---|---|
||19
23|
During the year the transactions with entities that have related parties are summarised above.
## **10. TRANSFERS BETWEEN FUNDS**
||**General**
**funds to**
**(from)**
**Designated**
**funds**
**to (from)**
**Restricted**
**funds**
**to (from)**|
|---|---|
||**£'000**
**£'000**
**£'000**|
|Provisions for the maintenance of the estate|(91)
91
-|
|Funds allocated for development projects in future
years|(136)
136
-|
|Creation of designated fund for Grenfell support|(34)
34
-|
||(261)
261
-|
## **11. CHARITY BUILDINGS**
|**Cost**
At 1 April 2021
Accumulated cost at 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
Accumulated depreciation at 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Buildings occupied for the**
**charity's own purposes**
**£'000**
3,611|
|---|---|
||**3,611**|
||1551
442|
||**1,993**|
|||
||**1,618**|
||**_2,060_**|
Buildings occupied by the Trust to deliver its charitable activities are stated at cost after depreciation amounting to £1,992,000. 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 £6,813,000 including Bay 20 community centre.
59
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **12. INVESTMENT PROPERTY**
|**Valuation**
At 1 April 2021
Rental accruals recognised in SOFA
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Land and**
**buildings**
**£'000**
55,196
225|
|---|---|
||55,421|
||_55,196_|
## **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 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 for the year 31 March 2022.
## **Insurance**
Investment buildings are stated at a net valuation of £55,421,000. The cost of rebuilding was professionally calculated for insurance purposes as at 1 April 2007. Allowing for building cost indexation, the buildings are insured for a reinstatement value of £61,142,000.
## **Fair value at 31 March 2022**
|Property valuation carried out by Cushman and Wakefield LLP in 2021
Less: unamortised lease incentive (Note 15)
**Book value at 31 March 2022**|**2022**
**2021**
**£'000**
**£'000**
56,625
56,625
(1,204)
(1,429)|
|---|---|
||**55,421**
**55,196**|
60
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **13. TANGIBLE FIXED ASSETS**
|**Equipment**
**Fixtures**
**Computer**
**Motor**
**Total**|**Equipment**
**Fixtures**
**Computer**
**Motor**
**Total**|
|---|---|
|**on the**
**and**
**equipment**
**vehicles**||
|**estate**
**fittings**||
|**£'000**
**£'000**
**£'000**
**£'000**
**£'000**||
|**Cost**||
|As at 1 April 2021
57
236
136
19
447||
|Additions
-
-
-
28
28||
|Disposals
(19)
(19)||
|||
|**Accumulated cost at 31**
**57**
**236**
**136**
**28**
**456**||
|**March 2022**||
|||
|**Depreciation**||
|As at 1 April 2021
57
193
128
19
397||
|Charge for the year
-
18
4
2
24||
|Additions
-
-
-
-
-||
|Disposals
-
-
-
(19)
(19)||
|**Accumulated**
**57**
**211**
**132**
**2**
**402**||
|**depreciation at 31 March**
**2022**||
|**2022**||
|||
|**Net book value**||
|At 31 March 2022|-
25
4
26
54|
|||
|_At 31 March 2021_|-
43
7
-
50|
## **14. INTANGIBLE FIXED ASSETS**
|**14. INTANGIBLE FIXED ASSETS**||
|---|---|
||**Software**|
||**£'000**|
|**Cost**||
|As at 1 April 2021|153|
|||
|Accumulated cost at 31 March 2022|153|
|||
|**Amortisation of software**||
|As at 1 April 2021|143|
|Charge for the year|-|
|||
|Accumulated amortisation at 31 March 2022|143|
|||
|**Net book value**||
|At 31 March 2022|10|
|||
|_At 31 March 2021_|_10_|
61
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **15. ACCRUED INCOME**
|**15. ACCRUED INCOME**|||
|---|---|---|
||**2022**|**2021**|
||**£'000**|**£'000**|
||||
|Accrued income in respect of lease incentives|1,204|
1,429|
|Less: included in trade debtors|(225)|(225)|
||||
||**979**|
**1,204**|
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.
## **16. DEBTORS**
|Trade debtors
Bad debt provision
SLM Ltd provision
Accrued income in respect of lease incentives
Prepayments and accrued income
Other debtors
Taxes|**2022**
**£'000**
4,759
(737)
(3,541)
225
523
35
237
**1,501**|
**2021**
**£'000**
3,080
(737)
(1,988)
225
70
20
_-_|
|---|---|---|
|||
**670**|
|**Bad debt provision**
Rental debt
Sports and Leisure
Management Ltd
**Total**|**Opening**
**provision at**
**1 April 2021**
**(Note 31)**
**Additional**
**provisions**
**Debts**
**written off**
**Provisions**
**no longer**
**required**
**Closing**
**provision at**
**31 March**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
737
-
-
-
737
1988
1,553
-
-
3,541|
|---|---|
||2,725
1,553
-
-
4,278|
Bad debt provisions are based upon the debtor balances on individual accounts. Due to the agreed Deed of Variation signing date, resulted in additional provision of £1.5m in the current year.
62
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **17. LIABILITIES: AMOUNTS DUE WITHIN ONE YEAR**
|**17. LIABILITIES: AMOUNTS DUE WITHIN ONE YEAR**||
|---|---|
||**2022**
**2021**|
||**£'000**
**£'000**|
|||
|Trade creditors|173
248|
|Accruals|382
203|
|Grants awarded but not paid|23
92|
|Deferred income|131
379|
|Tenants' deposits|124
111|
|Taxes and social security costs|37
434|
|Other creditors|15
11|
||**886**
**1,478**|
## **18. LIABILITIES: AMOUNTS DUE AFTER ONE YEAR**
|**18. LIABILITIES: AMOUNTS DUE AFTER ONE YEAR**|||
|---|---|---|
||**2022**|**_2021_**|
||**£'000**|**_£'000_**|
||||
|Tenants' deposits|**498**|**_273_**|
63
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **19. ANALYSIS OF FUNDS**
||**At 1 April**
**2021**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers,**
**revaluations and**
**unrealised gains**
**At 31 March**
**2022**|
|---|---|
||(Note 32)
(Note 9)|
||**£'000**
**£'000**
**£'000**
**£'000**
**£'000**|
|**Restricted funds**||
|Investment property|8,505
-
-
-
8,505|
|Charitable buildings|2,036
-
(400)
-
1,636|
|Service charges|165
419
(360)
-
224|
|Projectgrants|155
546
(505)
-
196|
||**10,861**
**965**
**(1,265)**
**-**
**10,561**|
|||
|**Unrestricted funds**||
|Investment
property|9,496
-
-
-
9,496|
|Charitable buildings|16
-
(1)
-
15|
|Refurbishment fund|759
-
-
-
759|
|Development fund|2,066
-
(137)
136
2,065|
|Maintenance funds|510
-
(91)
91
510|
|Grenfell Support|(7)
-
(27)
34
-|
||12,840
-
(256)
261
12,845|
|Revaluation reserve|38,818
-
-
225
39,043|
|General fund|199
5,807
(4,590)
(261)
1,155|
||51,857
5,807
(4,846)
225
53,043|
|||
||62,718
6,772
(6,111)
225
63,604|
## **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.
64
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
**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 2022, the funds on hand comprise:
## **20. ANALYSIS OF PROJECT FUNDS**
|_Project grants_
Sports development
Grenfell Response
Education
Animating Thorpe Close|**2022**
**2021**
**£'000**
**£'000**
70
16
18
17
18
31
90
90|
|---|---|
||**196**
**154**|
## **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 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 15year-period.
**Pension reserve:** The reserve represents the deficit on the Trust’s defined benefits pension scheme and allows for payments that may need be paid into the scheme due to the funding shortfall on past service accrual (see note 23). Contributions towards the pension deficit are paid according to a schedule advised by the Scheme Actuary.
**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.
**Revaluation reserve:** This is the surplus arising upon valuation of the Trust’s investment property and is represented by buildings rather than cash.
65
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
**Accrued income fund:** Under FRS102 the Trust must accrue for the average annual rents receivable under contracts irrespective of whether the rent is currently due from the tenant. Accruals arise when there is a significant rent-free period at the beginning of a lease or where there is a stepped rental. Accrued income is not available for disbursement on charitable activities until received and the balance on this fund represents the excess of income recognised in the Statement of Financial Activities in advance of it being payable by the tenant.
## **21. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Net current assets
Liabilities due after more than
one year
**Working Capital**
Investment property
Charitable buildings
Tangible fixed assets
Intangible assets
Accrued income
**Other funds**|**Accumulated**
**fund**
**Designated**
**funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**2022**
**Subtotal**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
1,394
4,222
5,616
404
6,020
(498)
-
(498)
-
(498)|
|---|---|
||**896**
**4,222**
**5,118**
**404**
**5,522**
182
46,675
46,857
8,564
55,421
13
12
25
1,593
1,618
54
54
54
10
-
10
-
10
-
979
979
-
979|
||**259**
**47,666**
**47,925**
**10,157**
**58,082**|
||**1,155**
**51,888**
**53,043**
**10,561**
**63,604**|
See Note 33 for an analysis of net assets between funds as at 31 March 2021.
## **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:
|income at the year-end:||
|---|---|
||**2022**
**2021**|
||**£'000**
**£'000**|
|||
|Less than one year|3,334
3,531|
|Later than one year but not later than five years|3,873
12,536|
|Later than five years but not later than ten years|1,536
5,372|
|Later than ten years|1,206
1,771|
66
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
9,949 **23,210**
## **23. RETIREMENT BENEFITS**
The Trust previously operated A Money Purchase Group personal pension scheme operated on behalf of the Trust by Legal and General Pensions Limited.
## **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 4%, with no maximum level of contribution outside the legislative thresholds. The Trust contributed between 4% 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.
|The employer's pension contributions paid in the year
were:|**2022**
**2021**|
|---|---|
||**£'000**
**£'000**|
|||
|Money purchase scheme|55
70|
||55
70|
## **23. RETIREMENT BENEFITS (continued)**
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) and represent the last month's contributions and amounted to:
|**Money purchase scheme**|**2022**
**_2021_**|
|---|---|
||**£'000**
**_£'000_**|
|||
||7
9|
||7
9|
## **24. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM**
## **OPERATING ACTIVITIES**
|**OPERATING ACTIVITIES**|||
|---|---|---|
||**2022**|
**2021**|
||**£'000**|
**£'000**|
|Net movement in funds|661|
(1,223)|
|Donated asset|||
|Interest receivable|(2)|
(11)|
|Pension service costs net of finance costs|-|
-|
|Contributions to defined benefits pension scheme|-|
-|
|Pension (gains)|-|
-|
67
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Depreciation and amortisation|466
487
-
370
225
225
(594)
(102)
(829)
233
225
49|
|---|---|
|Valuation (surplus)||
|(Decrease)/increase in non-current accrued income||
|(Increase)decrease in debtors||
|(Decrease)increase in creditors due within one year||
|(Decrease)/increase in creditors due after oneyear||
|**Total service costs**|**152**
**28**|
## **25. ANALYSIS IN CHANGES IN NET DEBT**
|**25. ANALYSIS IN CHANGES**|**IN NET DEBT**|
|---|---|
||**At 1 April**
**Cash**
**Other**
**At 31 March**|
||**2021**
**flows**
**changes**
**2022**|
||**£'000**
**£'000**
**£'000**
**£'000**|
|||
|Cash at bank and in hand|1,612
126
-
1,738
3,666
-
-
3,666|
|Short-term deposits||
||5,278
126
-
5,404|
## **26. Unadjusting Post Balance Sheets Event**
The deed of variation with Sports and Leisure Management LTD (Everyone active) was signed as at 31st August 2022. The Trust applied to the Charity Commission to waive a proportion of the income as agreed in the former lease. The financial impact of the agreement first comes into effect in the financial statements as at 31 March 2023. The proposed lease terms will result in a lease incentive of £1.1m which will be released into the SOFA, £385k will be recognised as a creditor and £1.5m as a deferred asset. The calculation of the respective lease incentive will be calculated each year until 2027 at which point it will be fully released.
## **27. COMPARATIVE FIGURES: STATEMENT OF FINANCIAL ACTIVITIES 2021**
**Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2021**
|**Note**
**Income**
**Income from continuing activities**
_Income from charitable activities_
Grants, earned and other income
Miscellaneous income
Donated asset
_Income from investments_
Land and property rentals
Car Park income
Interest receivable
_Other income_
Property service charges
Miscellaneous income|**Note**
**Income**
**Income from continuing activities**
_Income from charitable activities_
Grants, earned and other income
Miscellaneous income
Donated asset
_Income from investments_
Land and property rentals
Car Park income
Interest receivable
_Other income_
Property service charges
Miscellaneous income|**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total 2021**
**£'000**
**£'000**
**£'000**
**£'000**
403
-
480
883
-
-
-
-
-
-
-
-
**403**
**-**
**482**
**883**|
|---|---|---|
|||4,561
-
-
4,561
103
-
-
103
11
-
-
11
-
-
-
-
96
-
326
422|
68
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|**Total income**
**Expenditure**
**Expenditure on continuing activities**
_Expenditure on charitable activities_
_Investment management costs_
Property management
**Total expenditure**
Net loss) on investments
**Total net income (expenditure) before**
**transfers**
Transfers between funds
**Net income (expenditure) after transfers**
Actuarial gains on defined benefit pension
scheme
**Net movement in funds**
_Reconciliation of funds_
_Balances brought forward at 1 April 2020_
**Balances carried forward at**
**31 March 2021**|**5,173**
**-**
**807**
**5,980**|
|---|---|
||1,933
16
885
2,834
3,649
99
252
4,000|
||**5,582**
**115**
**1,136**
**5,277**|
||-
(370)
-
(370)|
||**(409)**
**(485)**
**(329)**
**(1,223)**|
||5
-
(5)
-|
||**(404)**
**(485)**
**(334)**
**-**|
||-
-
-
-|
||**(404)**
**(485)**
**(334)**
**(1,223)**|
||603
52,142
11,196
63,941|
||**199**
**51,657**
**10,862**
**62,718**|
## **28. COMPARATIVE FIGURES: EXPENDITURE ON CHARITABLE ACTIVITIES 2020/21**
|**28. COMPARATIVE**|**FIGURES: EXPENDITURE ON CHARITABLE ACTIVITIES 2020/21**|
|---|---|
|Charitable Activities
Investment Activities
- property
management
**Expenditure on**
**charitable activities**
Social Wellbeing
Engagement|**General**
**funds**
**Allocated**
**Support**
**Costs**
**Total**
**(**including
support
costs)
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**Charitable**
**Expenditu**
**re**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
1,153
780
1,933
16
885
2,834
3,389
260
3,649
98
252
3,999|
||**4,542**
**1,040**
**5,582**
**114**
**1,137**
**6,833**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
750
208
958
8
406
1,372
90
156
246
-
-
246|
69
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|Health and wellbeing
Arts, culture and
community grants
**Grenfell response**
**Environmental**
**Wellbeing**
**Economic Wellbeing**
Stewardship
(including property
development)
Economy and Skills
**Made up of:**
Grants awarded
Community consultation
Materials and project costs
Staff costs
Other staff costs
Improvements, repairs and
maintenance
Car Park Expenditure
Environment projects
Ground and Garden
maintenance
Insurance and other
establishment costs
Information technology
Communications and
marketing
Property Development
Governance
Professional fees and costs
Other overheads
Bank charges
Bad Debts
Depreciation
Internal recharges
Total expenditure on
charitable activities|-
-
-
-
-
-
626
52
678
1
400
1,079
34
-
34
7
6
47
**203**
**157**
**360**
**-**
**-**
**360**
199
416
615
8
479
1,102
93
156
249
8
-
257
106
260
366
-
479
845
0.00
-
-
-
-
-
**1,152**
**781**
**1,933**
**16**
**885**
**2,834**
424
-
424
7
71
502
-
-
-
-
-
-
3
2
5
-
24
29
597
302
899
-
316
1,215
27
113
140
-
5
145
26
1
27
8
-
35
-
-
-
-
-
-
6
-
6
-
-
6
6
-
6
-
-
6
85
37
122
-
36
158
-
142
142
-
19
161
-
10
10
-
-
10
-
-
-
-
-
-
-
24
24
-
-
24
11
53
64
-
9
73
(33)
30
(3)
-
5
2
-
2
2
-
-
2
-
-
-
-
-
-
-
65
65
1
400
466
-
-
-
-
-
-
**1,152**
**781**
**1,933**
**16**
**885**
**2,834**|
|---|---|
70
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
## **29. COMPARATIVE FIGURES: EXPENDITURE ON PROPERTY MANAGEMENT 2020/21**
||**_General_**|**_Allocated_**|
**_Total_**|
**_Designated_**|**_Restricted_**|
**_Total_**|
|---|---|---|---|---|---|---|
||**_funds_**|**_Support_**|**_including_**|
**_funds_**|**_funds_**|
**_Property_**|
|||**_Costs_**|
**_support costs_**|||**_Management_**|
||**_£'000_**|**_£'000_**|
**_£'000_**|
**_£'000_**|**_£'000_**|
**_£'000_**|
|_Grants awarded_|-|-|
-|
-|-|
-|
|_Community Consultation_|-|-|
-|
-|-|
-|
|_Materials and project costs_|-|1|
1|
-|-|
1|
|_Staff costs_|310|101|
411|
-|-|
411|
|_Other staff costs_|28|38|
66|
-|-|
66|
|_Improvements, repairs and_|54|-|
54|
98|-|
152|
|_maintenance_|||||||
|_Car park expenditure_|28|-|
28|
-|-|
28|
|_Environment projects_|-|-|
-|
-|-|
-|
|_Ground and garden_|24|-|
24|
-|-|
24|
|_maintenance_|||||||
|_Insurance and other_|181|12|
193|
-|252|
445|
|_establishment costs_|||||||
|_Information technology_|-|47|
47|
-|-|
47|
|_Communications and marketing_|
-|3|
3|
-|-|
3|
|_Property Development_|-|-|
-|
-|-|
-|
|_Governance (note 5)_|-|8|
8|
-|-|
8|
|_Professional fees and costs_|175|18|
193|
-|-|
193|
|_Other overheads_|(10)|10|
-|
-|-|
-|
|_Bank charges_|-|1|
1|
-|-|
1|
|_Bad debts_|2,599|-|
2,599|
-|-|
2,599|
|_Depreciation_|-|21|
21|
-|-|
21|
||**_3,389_**|**_260_**|
**_3,649_**|
**_98_**|**_252_**|
**_3,999_**|
## **30. COMPARATIVE FIGURES: TRANSFERS BETWEEN FUNDS 2020/21**
||**_General_**|**_Designated_**|**_Restricted_**|
|---|---|---|---|
||**_funds to /_**|**_funds to /_**|**_funds to /_**|
||**_(from)_**|**_(from)_**|**_(from)_**|
||**_£'000_**|**_£'000_**|**_£'000_**|
|_Transfer of oldproject balances_|_5_|_-_|_(5)_|
||_5_|_-_|_(5)_|
|||||
## **31. COMPARATIVE FIGURES: MOVEMENT IN PROVISIONS 2020/21**
|**_Opening_**|**_Additional_**|
**_Debts written_**|**_Provisions no_**|
**_Closing_**|
|---|---|---|---|---|
|**_provision April_**|**_provisions_**|
**_off_**|**_longer required_**|
**_provision March_**|
|**_2020_**||||**_2021_**|
71
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
||**_£'000_**
**_£'000_**
**_£'000_**
**_£'000_**
**_£'000_**|
|---|---|
|||
|_Rental debt_|217
520
-
-
737|
||281
1,707
-
-
1,988|
|**_Total_**|**498**
**2,227**
**-**
**-**
**2,725**|
## **32. COMPARATIVE FIGURES: ANALYSIS OF FUNDS 2020/21**
|**32. COMPARATIVE**|**FIGURES: ANALYSIS OF FUNDS 2020/21**|
|---|---|
||**_At 1 April_**
**_2020_**
**_Incoming_**
**_resources_**
**_Resources_**
**_expended_**
**_Transfers,_**
**_revaluations and_**
**_unrealised gains_**
**_At 31 March_**
**_2021_**|
||_(Notes 30,12 and_
_24)_|
||**_£'000_**
**_£'000_**
**_£'000_**
**_£'000_**
**_£'000_**|
|**_Restricted funds_**||
|_Investment property_|8,505
-
-
-
8,505|
|
_Charitable buildings_|2,436
-
(400)
-
2,036|
|
_Service charges_|90
326
(252)
-
165|
|
_Projectgrants_|165
480
(485)
(5)
155|
||**_11,196_**
**_806_**
**_(1,137)_**
**_(5)_**
**_10,861_**|
|||
|**_Unrestricted funds_**||
|_Other designated funds_||
|
_Investment property_|9,496
-
-
-
9,496|
|_Charitable buildings_|17
-
(1)
-
16|
|
_Refurbishment fund_|759
-
-
-
759|
|_Development fund_|2,086
-
(20)
-
2,066|
|
_Maintenance funds_|596
-
(86)
-
510|
|_Grenfell Support_|-
-
(7)
-
(7)|
||**_12,954_**
**_-_**
**_(114)_**
**_-_**
**_12,840_**|
|_Revaluation reserve_|_39,188_
_-_
_(370)_
_-_
_38,818_|
|_Accumulatedfund_|_603_
_5,173_
_(5,582)_
_5_
_199_|
||_52,745_
_5,173_
_(6,066)_
_5_
_51,857_|
|||
||**_63,941_**
**_5,979_**
**_(7,203)_**
**_-_**
**_62,718_**|
## **33. COMPARATIVE FIGURES: ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020/21**
|_Net current assets_
_Liabilities due after more than_
_one year_
**_Net liquid funds_**
_Investment property_
_Charitable buildings_|**_Unrestricted funds_**
**_Restricted_**
**_funds_**
**_Total_**
**_funds_**
**_Accumulated_**
**_fund_**
**_Designated_**
**_funds_**
**_Subtotal_**
**_2021_**
**_£'000_**
**_£'000_**
**_+£'000_**
**_£'000_**
**_£'000_**
214
3,983
4,198
272
4,471
(273)
-
(273)
-
(273)|
|---|---|
||(59)
3,983
3,924
272
4,198
182
46,450
46,632
8,564
55,196
15
20
35
2,025
2,060|
72
**NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
|_Tangible fixed assets_
_Intangible assets_
_Accrued income_
**_Other funds_**|50
-
50
-
50
10
-
10
-
10
-
1,204
1,204
-
1,204|
|---|---|
||_258_
_47,675_
_47,932_
_10,589_
_58,520_|
||**_199_**
**_51,658_**
**_51,856_**
**_10,861_**
**_62,718_**|
73
**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 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**
Niamh Graham (appointed 25 April 2022) Alex Korda (appointed 1 February 2021; resigned 2 April 2022) Angela Spence (appointed 26 May 2016, resigned 29 July 2021) Justin Thomas (appointed 29 July 2021; resigned 18 November 2021) Huey Walker (appointed 5 February 2020)
## **Chief Executive**
Venu Dhupa (in post full-time 1 August 2021)
## **Company Secretary**
.Role currently vacant
74
**REFERENCE AND ADMINISTRATIVE INFORMATION**
## **Administrative information**
**Charity number** 1123127 **Company number** 06475436 **Registered office** 1 Thorpe Close London W10 XL **Independent auditors** Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP **Bankers** Barclays Bank plc 1 Churchill Place London E14 5HP **Principal solicitors** Bates Wells LLP 10 Queen Street Place London EC4R 1BE **Official social media** Website www.westway.org Facebook @WestwayTrust Twitter @WestwayTrust Instagram @Westway_Trust
## **Official social media**
75