**Charity number: 1158378**
## **WATLINGTON HOUSE**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **WATLINGTON HOUSE**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 3|
|**Independent examiner's report**|4|
|**Statement of financial activities**|5|
|**Balance sheet**|6|
|**Statement of cash flows**|7|
|**Notes to the financial statements**|8 - 14|
## **WATLINGTON HOUSE**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Trustees**
G Adair
A M Andrews
R Bennett, Hon. Secretary
M Cookson Canon B Shenton, Chairman
S Thornton
D C H Williams, Hon. Treasurer
## **Charity registered number**
1158378
## **Principal office**
Watlington House 44 Watlington Street Reading Berkshire RG1 4RJ
## **Accountants**
James Cowper Kreston Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS
## **Bankers**
NatWest Bank Plc Level 1 The Oracle Centre Reading Berkshire RG1 2AH
## **Solicitors**
Field Seymour Parkes 1 London Street Reading Berkshire RG1 4QW
Page 1
## **WATLINGTON HOUSE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
The Trustees present their Report with the Financial Statements of the Charity for the year ended 30 September 2020. The Trustees confirm that the Annual Report and Financial statements of the Charity comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2016).
## **CONSTITUTION**
The Charity is controlled by its governing document, a Constitution registered with the Charity Commission on 28 August 2017, and constitutes a Charitable Incorporated Organisation (CIO).
## **METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
The management of the charity is the responsibility of the Trustees, who are elected and co-opted under the terms of the Constitution registered with the Charity Commission on 28 August 2014.
## **RISK REVIEW**
The Trustees actively review the major risks which the Charity faces on a regular basis.
The loss of key tenants poses a significant risk for the charity. In 2010, following the loss of several of its tenants, the Charity’s income fell and its ability to keep trading as a going concern was open to question. In view of this the charity took a number of steps to increase its income and reduce its operating costs.
The Charity was successful in its endeavours and by the 30 September 2019 income from Letting and Hall and other hire had risen to £89,058. By 30 September 2020 this figure had dropped to £71,280, as the full effects of the coronavirus pandemic were felt, resulting in restrictions on Hall hire. The charity was not eligible for any government grants relating to the impact of the pandemic during the period April to September 2020. Nevertheless the Trust still posted a small surplus of £464.
Having regard to the pandemic the Trustees have reviewed the risk of proceeding with the re-modelling of the front garden, to bring it back as far as possible to its state prior to the commencement of the 1st World War. This will be a major project for 2020/21 costing £50K. Earley Poors Charity have agreed to make grant of £19K and having reviewed the risk, the Trustees have agreed to proceed.
The Trustees also keep the potential cost of improvements, planned maintenance and unforeseen repairs under regular review and have adopted a policy of ensuring that the Trust always has a reserve of at least the equivalent of three months’ expenditure. Once the current programme of refurbishment and improvements has been completed the Trustees intend to create a ‘sinking fund’ from their reserves to cover any future major expenditure.
## **OBJECTIVES AND ACTIVITIES FOR PUBLIC BENEFIT**
In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.
Watlington House is a Grade 2 starred listed building. When threatened with demolition in 1930, public monies were raised and the building was purchased by the National Council of Social Service (now the National Council for Voluntary Service) in 1931 for £1,705 plus expenses, to be run by the Watlington House Management Committee, which was then registered as a charity in its own right. The value of the building now for insurance purposes is £3.5m and it is insured with the Ecclesiastical Insurance Co Ltd.
The Charity was formed to manage and maintain Watlington House for the general benefit of the local community. The house has a number of rooms and a Hall for letting and hire by individuals or organisations in accordance with the standard hiring agreement and the scale of charges adopted for the year. The income from lettings is used to maintain the property.
Page 2
WATLIHGTON HOUSE
TRUSTEEV REPORT (CONTINUED)
FOR THE YEAR ENDED 30 $8OTEMBER 2020
On 2 Apll 2014 the Ch8rlty obtsk)8d Charity Commfjssm opprovd to L**8nge 118 ¢MstiluUon. 11 Is now 8
Charitable Incowated Organlzèllon ICIOI. A CIO c*n acqulr818nd and in Jsjy 2016 the chatY acquired the
Ir¢ghold of Wfjdington House from the Nation81 Coun¢il for voltsry Servlc* INCVO). No con81deration was
paid.
GOING CONCERN
Aftor meklno epproprfata enqLlrle& the Tru6tets hove a rna80nable expeclauon that the tharlty h88 adequale
resources tc contlnue In operallonal existen¢8 for the loreseeable fLrture. For thls reason they con? lo adopt
the going concem baNs in preparing the financ4al statement& Further delAlls regarding Ihe adoptbon of th8
gclng concem basis be It)d in the A¢unting Polities.
FINANCES
Tho Ghallty'6 lolal fund8, exdudlng Investmanl FNoperty, a5 al 30 Seplomber 2020 amounted 10 £86,757
(£85,291 as al 30 September 20191. In view of the Trust's improved finanaal poglion the Trust h86 embarked
on a wogrwnme of rep8lr, refijrblshrnent and improvemenL DLNng the fingndal year 2016117 the roof 8nd
exlerfor of the m8in bulldlng knere repalred and reILwbish. the year 2017118. the Hall refurblthed
and extended to pmvide 8dditional offlce accommo¢Jation. During the year 2018119 Ihe botndary wall was
rafurt$h8d and fvrther %%tvk vrds don8 to the House. Durtng the year of Ihls re[ an exlengon programrne of
repalrs. rnainl8nance and painting was undèrtaken lo the 7ndOwS and doors al tho rèar of Ihe house. As part
ot this lisien lIding consenl was obtained lo replacE S sath wndows. In lh8 lorthwming year 2020121, 0$
atre8dy mentioned In the 5erti on Risk Review, the front garrsen of the Housa wll b8 rewmodelled, so that11
reveris doser to ils poslllon prlor to the 1st Wofld War. Wlh the completlcn of thls project the Trust vlll have
completed Its progr8mme ol oulst8nding repair, refurbithmonl and m8inlen8nc£ iswes, lIe mdnlalnlng
hethY b8nk balance. All Ihis h85 been othipved in spite of Ihe adverse economlc effeds of th8 cortsnavlNs
demia The Trustees we c¢rfd8nt, therefore, that the Trust con ¢ontinue lo opwale as a going COnceL
TRUSTEE'S IIESPONSIBIUTIES STATEMENT
The TNae¢s oTr respon>'ble for preparfng the TnJsiees' Report end Ihe fin8ndal statemenls in owirdan¢e
th 8PF41cable lthv and United Acc4unling Standards (ithled Kjngdom Gen•r81ty Accepted
Accounting Pradlce).
The law aPpG&ble to tharflle6 In Enoland ar Wal&8 requlres Iha Trustees lo prepare finandal 8lalement8 for
Ich financaal year glve a true and fair view of the stale of affairs of the charity and of the Incomlng
rer4)urees and 4PF41caiion of resources ol Ihe charity for thai period. In pr8paring these finanLid statements, the
TnJsiee8 arè reqLtired lo..
Sdecl sLKlable accoling paliaes and then apF4y them ccnsostendy:
Observe the methods and prlne4plès in the Charities SORP,.
Make judgements estlmales th81 are reasonabl? and pwdenl..
PrepeAe the flnanoal statements on the going o)ncem basls uesS it is inapprcpria¢e to pregjme thal Ihe
tharity wjll conttnua In operation.
The Tntsie05 are responstle fcr ke¥ng prcper accounting records that are ffident lo thow and explaln the
tharity'5 transadlons and disdose reasonable 8coJracy 8t Ony tlme the finanad po&tion of the d)8rity and
ènable them lo enwre that the financial stal8menls comply vllh the Charities Act 2011 the Charity (Accounts
gnd Reports) Regul?tlons 2008 and the provi&ons of the trust deed. Thay are dso reswslble for safoguardlng
thg assets (rf thg thwity and henca for 18kinu reascrfa sleps for tho pr&v8nUon and dotection of fraud and
other lffeoularitte&
Ths Rewl eppmved by the Trustees on
OAI wtd slgned on th*r beho)f by..
Canon B Shenton,
Pag8 3
## **WATLINGTON HOUSE**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Independent Examiner's Report to the Trustees of Watlington House ('the Charity')**
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 30 September 2020.
## **Responsibilities and Basis of Report**
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent Examiner's Statement**
Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Dated: Alexander Peal FCA
**James Cowper Kreston** Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS
Page 4
## **WATLINGTON HOUSE**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Note**
**Income from:**
Charitable activities
2
**Total income**
**Expenditure on:**
Charitable activities
3
**Total expenditure**
**Net income/(expenditure) before other recognised**
**gains**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**71,401**
**71,401**
**70,935**
**70,935**
**466**
**466**
**3,585,291**
**466**
**3,585,757**|**Total**
**funds**
**2020**
**£**
**71,401**
**71,401**
**70,935**
**70,935**
**466**
**466**
**3,585,291**
**466**
**3,585,757**|Total
funds
2019
£
89,058|
|---|---|---|---|
||||89,058|
||||56,824|
||||56,824|
|||||
||||32,234|
|||||
||||32,234|
||||3,553,057
32,234|
||||3,585,291|
The notes on pages 8 to 14 form part of these financial statements.
Page 5
WATUNGTQN HQU
BALAP4CE SHEET
AS AT 30 sEPTlBER ZD20
2Q20
2019
Flxed assoll
Invethent prwy
Cuyvent assets
500,000
3,500,OC#)
Gath at bard( in hand
47Tr1a1
a6.656
87,121
86.655
Crethicffs: anounts falllng due *ilNn
(1.3641
86.767
65,291
Total not assets
4684767
3.585,291
Charfty funds
Re#rfthd funds
Un[LIed fuThJ5
1584757
3,585,291
Total fund5
4584757
3.585,291
The finandal thtomffntse wwuvad artlKwi*d f(r isgje by tha Tnlltees and signed an their tsohaw ty.
Canon B Shenlon, Chalmmn
Date..
The notes on pages 8 to 14 fomi part of these finandal *temg7I&
Page 6
## **WATLINGTON HOUSE**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Cash flows from operating activities**
Net cash used in operating activities
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 8 to 14 form part of these financial statements|**2020**
**£**
**466**
**466**
**86,655**
**87,121**|2019
£
32,254|
|---|---|---|
|||**32,254**
54,401|
||||
|||86,655|
||||
Page 7
**WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1. Accounting policies**
## **1.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Watlington House meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **1.2 Going concern**
The Trustees are of the view that the charity has sufficient funds to enable it to continue its activities on a going concern basis for a period of at least 12 months. The trustees believe that financial statements have been prepared appropriately on the going concern basis.
## **1.3 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
## **1.4 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Page 8
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1. Accounting policies (continued)**
## **1.5 Expenditure (continued)**
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the charity's educational operations including support costs and costs relating to the governance of the charity apportioned to charitable activities.
## **1.6 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.7 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **1.8 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2. Income from charitable activities**
|**Unrestricted**
**funds**
**2020**
**£**
Tenant's rent
53,353
Hall and other income
18,048
71,401
Total 2019
89,058|**Total**
**funds**
**2020**
**£**
**53,353**
**18,048**
**71,401**
89,058|Total
funds
2019
£
59,051
30,007|
|---|---|---|
|||89,058|
||||
Page 9
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **3. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2020**
**£**
Direct costs
70,161
Governance costs
774
70,935
Total 2019
56,824|**Total**
**funds**
**2020**
**£**
**70,161**
**774**
**70,935**
56,824|Total
funds
2019
£
56,100
724|
|---|---|---|
|||56,824|
||||
## **4. Analysis of expenditure by activities**
|Direct costs
Governance costs
Total 2019|**Activities**
**undertaken**
**directly**
**2020**
**£**
70,161
-
70,161
56,100|**Support**
**costs**
**2020**
**£**
-
774
774
724|**Total**
**funds**
**2020**
**£**
**70,161**
**774**
**70,935**
56,824|Total
funds
2019
£
56,100
724|
|---|---|---|---|---|
|||||56,824|
||||||
Page 10
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **4. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Caretaking
Rates
Insurance
Light and heat
House expenditure
Repairs and maintenance
House improvements
Water
Cleaning
Sundry
Total 2019|**Activities**
**2020**
**£**
7,440
5,140
4,790
10,471
13,860
19,213
3,546
2,683
2,735
283
70,161
56,100|**Total**
**funds**
**2020**
**£**
**7,440**
**5,140**
**4,790**
**10,471**
**13,860**
**19,213**
**3,546**
**2,683**
**2,735**
**283**
**70,161**
56,100|Total
funds
2019
£
7,440
4,885
4,728
7,681
7,219
5,483
14,187
1,551
2,819
107|
|---|---|---|---|
||||56,100|
|||||
## **5. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £774 (2019 - £724).
## **6. Investment property**
|**Valuation**
At 1 October 2019
At 30 September 2020|**Freehold**
**investment**
**property**
**£**
**3,500,000**|
|---|---|
||**3,500,000**|
The freehold investment property was acquired from the National Council for Voluntary Organisations (NCVO) for a peppercorn on 18 July 2016. The freehold property was revalued by the Trustees, on an open market for existing use basis.
Page 11
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **7. Creditors: Amounts falling due within one year**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Accruals and deferred income|**1,364**|1,364|
## **8. Statement of funds Statement of funds - current year**
|**Balance at 1**
**October**
**2019**
**£**
**Unrestricted funds**
Unrestricted funds
**85,291**
Revaluation reserve
**3,500,000**
**3,585,291**
**Statement of funds - prior year**
Balance at
1 October
2018
£
**Unrestricted funds**
Unrestricted funds
53,057
Revaluation reserve
3,500,000
3,553,057|**Income**
**£**
**Expenditure**
**£**
**71,401**
**(70,935)**
**-**
**-**
**71,401**
**(70,935)**
Income
£
Expenditure
£
89,058
(56,824)
-
-
89,058
(56,824)|**Balance at**
**30**
**September**
**2020**
**£**
**85,757**
**3,500,000**|
|---|---|---|
|||**3,585,757**|
|||Balance at
30
September
2019
£
85,291
3,500,000|
|||3,585,291|
Page 12
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **9. Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|**Unrestricted**
**funds**
**2020**
**£**
Investment property
3,500,000
Current assets
87,121
Creditors due within one year
(1,364)
**Total**
3,585,757|**Total**
**funds**
**2020**
**£**
**3,500,000**
**87,121**
**(1,364)**|
|---|---|
||**3,585,757**|
## **Analysis of net assets between funds - prior period**
|Investment property
Current assets
Creditors due within one year
**Total**|Unrestricted
funds
2019
£
3,500,000
86,655
(1,364)
3,585,291|Total
funds
2019
£
3,500,000
86,655
(1,364)|
|---|---|---|
|||3,585,291|
## **10. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/(expenditure) for the year (as per Statement of Financial
Activities)
**Net cash provided by operating activities**|**466**
**466**|32,234|
|---|---|---|
||||
||||
|||32,234|
|**11.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**|**2020**
**£**
**87,121**
**87,121**|2019
£
86,655|
|---|---|---|
||||
|||86,655|
Page 13
## **WATLINGTON HOUSE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **12. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1**
**October**
**2019**
**£**
**86,655**
**86,655**|**Cash flows**
**£**
**466**
**466**|**At 30**
**September**
**2020**
**£**
**87,121**|
|---|---|---|---|
||||**87,121**|
## **13. Related party transactions**
During the year, one trustee received payments totalling £2,631 (2019: £NIL) for garden maintenance.
During the year, Berkshire Youth Limited, related by common Trusteeship, paid the charity £11,880 (2019: £11,220) for rent.
During the year, The Mills Archive Trust, related by common Trusteeship, paid the charity £21,691 (2019: £21,691), for rent.
During the year, Reading Civic Society, related by common Trusteeship, paid the charity £140 (2019: NIL), for hall hire.
## **14. Controlling party**
The Charity is under joint control of the Trustees, who oversee all administration and operations that the Charity undertakes.
Page 14