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2021-03-31-accounts

Company registration number: 07566546 Charity registration number: 1141606

FRIENDS OF KENSAL RISE LIBRARY LIMITED

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021

Friends of Kensal Rise Library Limited

(Co No - 07566546)

_____________ _____________
Contents
Trustees' Report 1
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 - 13

Friends of Kensal Rise Library Limited (Co No - 07566546)

Trustees’ Report for the year ended 31st March 2021

The Board of Trustees are pleased to submit their report and independently examined financial statements for the year ended 31st March 2021.

Reference and Administrative Information

Friends of Kensal Rise Library Limited is a charitable company limited by guarantee, incorporated as a company on 16th March 2011 and registered as a Charity on 26th April 2011.

The company was established under a Memorandum of Association which established the objects and the powers of the charitable company and is governed under its Articles of Association.

Friends of Kensal Rise Library Limited is a registered charity (number 1141606) and is constituted as a company limited by guarantee (number 07566546). Its objects, powers and other constitutional matters are set out in its Memorandum and Articles of Association. These financial statements comply with current statutory Memorandum and Articles of Association and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Registered office Bathurst Gardens London NW10 5JA

Directors

The directors of the company are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees serving during the year and since the year end were as follows:

Ms Margaret Catherine Bailey - Chair Mr Kyle Clark Mrs Carole Buck – Treasurer Mr Jonathan Bertulis-Fernandez Mr Mark Fisher Ms Elaine Sheppard (Resigned 15 December 2020) Mr John Patrick Walsh Adam Charles Green Mr Michael Mapstone (Appointed 14 September 2020) Ms Maria Balinska (Appointed 14 September 2020) Mrs Marina Valles (Appointed 14 September 2020)

Bankers Independent Examiners CAF Bank Additude Ltd 25 Kings Hill Avenue 9 Rhapsody Court West Malling Wakeman Road Kent London ME19 4JQ NW10 5DF

Page 1

Friends of Kensal Rise Library Limited Trustees’ Report for the year ended 31st March 2021 (continued)

(Co No - 07566546)

Objects, Aims and Activities

Objects and Aims

The objects of the charity are:

Activities

The principal charitable activity of Friends of Kensal Rise Library Limited is in seeking to meet the above aims. We deliver our services in the library through various activities, events, other projects in close collaboration with the community. The activities include charitable services provided either without charge or for reasonable and proper remuneration which support this object. These charitable services are designed to respond to the various and changing needs of the community and are not limited by the Charity’s constitution.

The Charity’s main activity is the running of a single library in Bathurst Gardens for the benefit of the broader community. The library allows the borrowing of books, access to newspapers and journals, study area, public access computers and Wi-Fi and a printing and photocopying service. The Charity also organises a number of events all open to the public based on literacy, theatre and music. These events are intended to provide the community with access to high quality speakers and performers at modest cost. These events also provide part of the source of funding for the Charity.

Achievements and Performance during the year

The library continued to develop new, and strengthened existing, partnerships with other local charities like the Mayhew, Octavia, (both ’new’), schools and nurseries, businesses, churches. As well as operating the library, during the year there were numerous public events/classes/meetings organised by the Charity. These continued to prove popular with the local community and maintained the use of the library space. Hire of the space was promoted and used by various users: local ward Councillors held their monthly surgery and ward meetings; local children’s parties and other social functions have been held; two successful markets have taken place. All of this has contributed to the sustainability of the charity. We closed in March due to the pandemic, although we did open to the public in December 2020 for two sessions, but then had to close due to another lockdown. The reopening preparations involved much work and expenditure to make the setting covid secure. In this we were aided by some successful funding applications to: Government, Power to Change and the Lottery. We also changed our library management system (LMS) and attendant procedures. Volunteers received training for these new procedures via zoom. We also offered online events like the Poetry Group, artist John Rogers talking about his work with the community and the library for the Brent London Borough of Culture 2020 – as the pandemic put paid to face-toface events. We strengthened our partnership with The Mark Twain House and Museum in America collaborating on online events about Mark Twain (who opened the library in 1900). This drew local audiences and also international ones. We had monthly Zoom meetings with the Brent library Service and other Brent Community Libraries. Thanks to a grant from Octavia Housing we installed a projector and sound system. We also partnered our local Kensal Green Mutual Aid during Covid. The pandemic has severely impacted our room hire income stream. Our Trustees have continued to meet throughout the pandemic.

Page 2

Friends of Kensal Rise Library Limited Trustees’ Report for the year ended 31st March 2021 (continued)

(Co No - 07566546)

Plan for Future Periods

Between the re-opening in Oct and closing for lockdown in March, over 600 adult and children membership cards were issued. All the book stock has been donated and there are now over 4,000 books of library condition on the shelves. The library continued to be a popular venue hire until lock down on 23 March 2021. Lockdown means the complete halt of our income stream from room hire - we had to cancel bookings that had been made all the way through to the summer. Further fundraising from successful award applications, donations and fundraising events like Programme of Writers’ Masterclasses, including authors’ and publisher’s talks, until lockdown halted this also. Virtual events, meetings continue to take place and their extension explored to maintain engagement with the community. Links with local Mutual Aid were established and the library space is used for both food and clothes collections. Preparations are underway for a phased reopening, including risk assessment for staff, volunteers and users.

Public Benefit

Friends of Kensal Rise Library Limited carries out a wide range of activities as detailed in pursuance of its charitable aims. In setting our work programme each year the trustees have regard to the Charity Commission’s guidance on public benefit and ensure activities we undertake are in line with our charitable objectives and aims.

The Trustees are satisfied that the Charity’s activities throughout the year provided public benefit because:

Financial Review

During 2020-21 the charity made a surplus on its Unrestricted Funds of £5,761 (2020 – Deficit of £7,703). Unrestricted Income made up of grants, donations and earned income totalling £42,568 (2020 - £52,006) were received during the year. Overall, at 31[st] March 2021, the charity had total reserves of £91,580 (2020 - £85,819). These reserves were totally made up of free reserves (funds which are neither restricted nor designated). At that time the charity held cash at bank of £93,198 (2020 - £89,841).

Compliance with Reserves Policy

Friends of Kensal Rise Library Limited reserves policy is designed to reflect the underlying risks facing the charity and to ensure that we have an appropriate level of reserves to safeguard its operations. We are in compliance with the Reserves Policy (as set out in the Structure, Governance and Management section) for 2020-21 and will continue an annual review of this policy and the underlying risks.

Structure, Governance and Management

Governing document

The Memorandum of Association which established the objects and the powers of the charitable company and is governed under its Articles of Association.

Page 3

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Trustees’ Report for the year ended 31st March 2021 (continued)

Governance

It is the Board's duty to:

The Trustees have not delegated their powers to any one Trustee or other person. The Trustees as individuals take on certain aspects of management of the Charity. The Charity employs one part-time staff. The Trustees manage the day-to-day affairs of the Charity; there is no executive management. The Trustees meet regularly and take note of the acts of individual Trustees on behalf of the Company.

Responsible governance of the charity is exercised through the Board of Trustees who are all trustees of the charity (‘the Board’). The Board is made up of independent lay members who are responsible for the conduct of Friends of Kensal Rise Library Limited and for ensuring that it satisfies all legal and contractual obligations. The trustees are volunteers and are not remunerated for their time. The Board is responsible for setting the strategic direction of the charity and is ultimately accountable for how effectively the charity meets the defined aims through direct charitable activity. The Board employs a part time Library Manager to engage in direct charitable activities to service users.

Principle Risks and Uncertainties

The Trustees have a duty to identify and review the risks to which the company is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

In relation to these matters, and apart from matters completely outside the charities’ control, the trustees consider that the risks to which the charity is subject have been mitigated to a satisfactory level.

The Trustees of Friends of Kensal Rise Library Limited have a risk management strategy which comprises:

The key types of risk to which the charity is exposed, along with the principal processes in place to manage and mitigate the risks, are briefly described below:

1. Risk on Personnel: a reliance on one part-time member of staff for all aspects of operation.

Page 4

Friends of Kensal Rise Library Limited Trustees’ Report for the year ended 31st March 2021 (continued)

(Co No - 07566546)

2. Funding Risks: the Charity is reliant on grants and donations of various kinds. The Trustees have proved adept at adapting their fundraising sources over the past years and are confident of continuing to do so. The level of reserves buys considerable time to adapt further should the Charity find funding difficult. The Trustees maintain contacts with a range of grant providers and potential donors to understand their requirements and to try to develop future funding.

Related parties

No trustees received any payment of money or other material benefit (whether directly or indirectly) from the Charity except for reimbursement of reasonable out of pocket expenses as per our Memorandum and Articles.

Reserves policy

It is Friends of Kensal Rise Library Limited’ policy to maintain free reserves (unrestricted reserves not invested in fixed assets or designated for specific purposes) at a level which can finance our projected closing liabilities, calculated based on shutting down the organisation with legal costs, redundancies and any other liabilities.

The reserves level approved for 2020-21 are £20,000.

Statement as to Disclosure of Information to the Independent Examiner

Each of the persons who are trustees at the time when this report is approved confirms that:

Independent Examiners

A resolution to re-appoint Additude Ltd as the charity’s independent Examiner will be put forward to the forthcoming Annual General Meeting.

The trustees have prepared this report in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

Approved by the Board and signed on its behalf by:

Ms Margaret Catherine Bailey - Chair

Date: 24 Sept 2021

Page 5

Friends of Kensal Rise Library Limited Trustees’ Report for the year ended 31st March 2021 (continued)

(Co No - 07566546)

Statement of Trustees’ responsibilities

The Trustees (who are also the Directors of Friends of Kensal Rise Library Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping proper and adequate 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. 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.

Page 6

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Independent Examiner’s Report to the Directors of Friends of Kensal Rise Library Limited for the year ended 31st March 2021

We report on the accounts of the company for the year ended 31 March 2021, which are set out on pages 8 to 13.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. I am qualified to undertake the examination by being a qualified member of CIPFA.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in, any material respect, the requirements:

have not been met; or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Andi Dollia, CPFA ADDITUDE LTD 9 Rhapsody Court Wakeman Road London NW10 5DF

Date: 24 Sept 2021

Page 7

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Statement of financial activities for the year ended 31st March 2021 (incorporating an income and expenditure account)

______________

Income from:
Note
Donations and
legacies
3
Charitable
activities
4
Total income
Expenditure
on:
5
Raising funds
Charitable
activities
Total
expenditure
Net income
(expenditure)
6
Transfers
between funds
Net movement
in funds
Reconciliation of
funds:
Total funds
brought
forward
Total funds
carried forward		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-		 Unrestricted
£
41,883
685
42,568
9,175
27,632
36,807
5,761
-
5,761
85,819
91,580		 2021
Total
£
41,883
685
42,568
9,175
27,632
36,807
5,761
-
5,761
85,819
91,580		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-		 Unrestricted
£
38,858
13,148
52,006
14,771
44,938
59,709
(7,703)
-
(7,703)
93,522
85,819		 2020
Total
£
38,858
13,148
52,006
14,771
44,938
59,709
(7,703)
-
(7,703)
93,522
85,819

The notes on pages 10 to 13 form part of these financial statements.

Page 8

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Balance Sheet at 31st March 2021

______________

Note

Fixed Assets
Tangible fixed assets

Current assets
Debtors
Cash at bank
Creditors: amounts falling due within one year9
Net current assets
Net assets10
Funds
11
Restricted
Unrestricted
Total funds		 2021 2020
£
£
--
-
-
93,198
89,841
93,198
89,841
(1,618)
(4,022)
91,580
85,819
91,580
85,819
-
-
91,580
85,819
91,580
85,819

For the year ended 31 March 2021 the company was entitled to exemption under section 477 of the Companies Act 2006; and no notice has been deposited under section 476. No members have required the company to obtain an audit of its accounts for the year in question. The trustees acknowledge responsibility for: i) Ensuring the company keeps accounting records which comply with section 386; and ii) Preparing financial statements which give a true and fair view of the state of affairs of the company as at the year-end in accordance with requirements of section 394 and 395, and which otherwise comply with requirements of the Companies Act 2006 relating to financial statements, so far applicable to the company. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the Trustees on 24 Sept 2021 and signed on their behalf by:

Ms Margaret Catherine Bailey

Chair, Director

Page 9

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Notes to the Financial Statements for the year ending 31st March 2021

_____________

1. Accounting policies

a. Going concern

The Trustees confirm that at the time of approving the financial statements, there are no material uncertainties regarding the Charity’s ability to continue in operational existence for the foreseeable future. In arriving at this conclusion, the Trustees have taken account of current and anticipated financial performance in the current economic conditions, its business plan and its reserves position. For this reason, the going concern basis continues to be adopted in the preparation of the Charity’s financial statements.

b. Basis for preparation

The financial statements have been prepared under the historic cost convention unless otherwise stated in the relevant accounting policy notes and in accordance with Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The principal accounting policies that have been applied to all years presented in these financial statements are set out below.

c. Recognition of outstanding employee benefits

No provision for outstanding holiday pay was made under previous UK GAAP. Under FRS 102 the costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employees’ services are received.

d. Fixed assets

Individual fixed assets costing £10,000 or more are initially recorded at cost. Fixed assets that cost less than £10,000 are treated as expenditure in the statement of financial activities.

e. Income

Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. Donations and grants are split between restricted and unrestricted funds in accordance with the terms of the grant or donation. Donations and gifts are recognised in the statement of financial activities when receivable. Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred. Donated services and facilities are included at the value to the charity where this can be quantified.

Bank interest is recognised on an accrual basis.

Page 10

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Notes to the Financial Statements for the year ending 31st March 2021 (continued)

_____________

f. Expenditure

Expenditure is included in the statement of financial activities on an accrual’s basis, inclusive of any VAT. It is recognised when there is a legal or constructive obligation to pay for it. Certain expenditure is directly attributable to specific activities and has been included in those cost categories.

g. Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Fixtures, fittings and equipment

33.33% straight line basis

2. Critical judgements and estimates

No critical judgements have been made by management in applying the charity’s accounting policies.

3. Donations and Legacies
London Borough of Brent
Big Lottery Fund
Power to Change
Octavia Foundation
Aspect Capital
Other Grants and Donations
Total		 Restricted
Unrestricted
2021
Total
2020
Total
£
£
£
£
-
28,645
28,645
8,808
-
-
-
10,000
-
8,500
8,500
4,806
-
-
-
5,000
-
-
-
2,000
-
4,738
4,738
8,244
-
41,883
41,883
38,858

There were no unfulfilled conditions or other contingencies attaching to these grants.

4. Income from Charitable
Activities
Events
Room Hire
Sales of books and other income
Total		 Restricted
Unrestricted
2021
Total
2020
Total
£
£
£
£
-
-
-
3,628
-
685
685
8,846
-
-
-
674
-
685
685
13,148

Page 11

Friends of Kensal Rise Library Limited (Co No - 07566546)

Notes to the Financial Statements for the year ending 31st March 2021 (continued)

_____________

5. Expenditure
Staff costs (note 7)
Rent, Insurance and
Services
Office Overheads
Office Refurbishment
and Repairs
Bank Charges
Event Costs
Independent
Examination fee
Other Professional
fees
Add: allocation of
support costs
Total expenditure		 Raising
funds
4,031
-
-
-
-
-
-
-
4,031
5,144
9,175		 Charitable
activities
£
12,094
-
-
-
-
108
-
-
12,202
15,430

27,632		 Support
Costs
£
8,063
3,490
5,319
2,333
69
-
1,250
50
20,574
(20,574)
-		 2021
Total
£
24,188
3,490
5,319
2,333
69
108
1,250
50
36,807
-
36,807		 2020
Total
£
25,073
3,771
1,944
26,806
89
626
1,250
150
59,709
-
59,709

6. Net income/(expenditure) for the year

This is stated after charging / crediting:
Independent Examination fees
7. Staff Costs
Salaries and wages
Social security costs
Pension contributions
 2021
£
1,250
2021
£
24,188
-
-
24,188		 2021
£
1,250
2021
£
24,188
-
-
24,188		 2020
£
1,250
2020
£
25,073
-
-
25,073

Page 12

Friends of Kensal Rise Library Limited

(Co No - 07566546)

Notes to the Financial Statements for the year ending 31st March 2021 (continued)

_____________

The average weekly number of staff (expressed as full-time equivalents) during the year was 0.6 (2020: 0.6)

Raising funds
Charitable activities
Support costs		 2021
No.
0.1
0.3
0.2
0.6		 2020
No.
0.1
0.3
0.2
0.6

8. Taxation

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

9. Creditors: amounts due within 1 year

2021
£
Taxation and social security
368
Other Creditors
-
Accruals and provisions
1,250

1,618
10.
Analysis of net assets
between funds
Restricted
Funds
Unrestricted
funds
£
£
Tangible fixed assets
-
-
Net current assets
-
91,580
Net assets at the end of the year
-
91,580
11. Movements in Funds
At the start
of the year
Incoming
resources
Outgoing
resources Transfers

£
£
£
Unrestricted funds:
General funds
85,819
42,568
(36,807)
-
Total unrestricted funds
85,819
42,568
(36,807)
-		 2021
£
Taxation and social security
368
Other Creditors
-
Accruals and provisions
1,250

1,618
10.
Analysis of net assets
between funds
Restricted
Funds
Unrestricted
funds
£
£
Tangible fixed assets
-
-
Net current assets
-
91,580
Net assets at the end of the year
-
91,580
11. Movements in Funds
At the start
of the year
Incoming
resources
Outgoing
resources Transfers

£
£
£
Unrestricted funds:
General funds
85,819
42,568
(36,807)
-
Total unrestricted funds
85,819
42,568
(36,807)
-		 2020
£
314
2,458
1,250
4,022

Total
funds

£

-
91,580
91,580
At the end
of the year
£
91,580
85,819
42,568
(36,807)
-		 91,580

Page 13