Charity number.. 1158378 WATLINGTON HOUSE UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
WATLINGTON HOUSE CONTENTS Page Reference and administrative details of the Charity, its Trustees and advisers Trustees. report Independent examiner's report statement of flnanclal actlvltles Balance sheet statement of cash flows Notes to the financial statements 10-18
WATLINGTON HOUSE REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Trustees G Adair (appointed 2 April 20141 A M Andrews (appointed 2 April 20141 R Bennett, Hon. Secretary lappointed 14 September 20161 M Cookson lappoinled 3 July 20131 Canon B Shenton, Chairman lappoinled 22 January 20141 S Thomton (resigned 10ecember 20221 D C H Williams, Hon. Treasurer lappointed 2 April 20141 D J Cottam lappoinled 30 November 20221 Charity registered numbor 1158378 Principal office Wallington House 44 Wallington Street Reading Bert(shire RG1 4RJ AoUntantS James Cowper Kreslon Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Bert(shire RG1 8LS Bankers Natwest Bank PIC Level 1 The Oracle Centre Reading Bert(shire RG1 2AH Solicitors Field Seymour Parkes 1 London Street Reading Bert(shire RG1 4QW Page 1
WATLINGTON HOUSE TRUSTEES. REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2023 The Trustees present their Report with the Financial Statements of the Charity lo the year ended 30 September 2023. The Trustees confirm that the Annual Report and Financial Statements of the Charity comply wlh current statutory requirements, the requirements of the Charitys goveming document and the provisions of the Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effective 1 January 20191. CONSTITUTION The Charity is controlled by its governing document, a Constitution registered with the Charity Commission on 28 August 2014, and constitutes a Charitable Incorporated Organisation {ClOI. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES The management of the charity is the responsibility of the Trustees, who are elected and c(H)pted 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 concem was open to question. In view of this the charity look a number of steps lo increase its income and reduce its operating costs. The Charity was successful in its endeavours and by 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 reslriclions on Hall hire. The charity was not eligible for any government grants relating to the impact of the pandemic during the period April lo September 2020. Nevertheless the Trust still posted a small surplus of £464. During the financial year 2020-21 the local NHS Primary Care Network established a very successful Covid Centre lo serve ntral Reading. To compensate for loss of income the Trust were paid £36,920 during the year in question. In addition the policy on Covid grant support changed and the Trust received £27,357 in Covid support grants from Reading Borough Council. In the event only one of the Trust's 5 tenants Ithe Gurkhas Total Security Lldl required rent relief, this represented a loss of £5,460 for the financial year 2012-2022 and a total of £8,190 since the pandemic started. However, despite assistance they were unable lo re-start their business and they terminated their agreement with the Trust from 31 sl March 2022 after 10 years, occupancy. The Trust completed the refurbishment of the front garden and enclosure of Wallington House. In November 2021 al a gross cost of £56k. The project was supported by a grant of £1 gk from the Earley Poors Charity, as part of their Bi-centennial celebrations, reducing the net cost lo £36k. The Trust has received very positive feed- back about the added presence the improvements give to both the House and SLJrrounding conservation area. The works were unveiled by Cllr Stevens Imayor of Reading}, Willie Hartley-Russell MVO DL (High Sheriff of the Royal County) and Trustees of Earley Charity. Page 2
WATLINGTON HOUSE TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 30 SEPTEMBER 2023 The Trust have consolidated their financial position during the current year. The two upstairs rooms al the front of the house, vacated by the Gurkhas, having been refurbished in 2021-22 were re-lel to one of the Trustees, Mrs M Cookson lo house her personal archives and to Chris Weston of Vveslon & Co Archilecls. This meant that Chris Vveslon had two rooms. However, the financial challenges he faced during 2023 meant that during the summer he has now concentrated work in the larger room at the front and has surrendered his original room at the back, which remains lo be relel. Hall and Parking income has recovered after the Covid downlum and is approaching pre-covid levels. Following the major expenditure last year on the House surrounds, expenditure has decreased and overall the Trust has posted a surplus of £20,702. 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 al least the equivalent of three months, expenditure. Once the current programme of refurbishment and improvements has been completed the Trustees intend lo create a 'sinking fund, from their reserves to cover any future major expenditure. OBJECTIVES AND ACTIVITIES FOR PUBLIC BENEFIT In selling our objectives and planning our activities, the Trustees have given careful consideration lo the Charity Commission's general guidance on public benefit. Wallington 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 Setvice (now the National Council for Voluntary Service} in 1931 for £1,705 plus expenses, lo be run by the Wallington House Management Committee, which was then registered as a charity in ils 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 lo manage and maintain Wallington 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 organisalions in accordance with the standard hiring agreement and the scale of charges adopted for the year. The income from letlings is used lo maintain the property. On 2 April 2014 the Charity obtained Charity Commission approval lo change ils conslitulion. 11 is now a Charitable Incorporated Organization ICIOI. A CIO can acquire land and in July 2016 the Charity acquired the freehold of Vvatlinglon House from the Nab'onal Council for Voluntsry Setvice INCVOI. No consideration was paid. GOING CONCERN After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existen for the foreseeable future. For this reason they continue lo adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the Accounting Policies. FINANCES The Charity has a reserves policy of three months of expenditure. Based on average expenditure for the first seven months of the 2024 financial year of £5,464 per month, the Charity has reseNes of-22 months. Page 3
WATLINGTON HOUSE TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 30 SEPTEMBER 2023 The Charills total funds, excluding investment property, as at September 2023 amounted lo £119,160, being £3,619.160 less property of £3,500,0001£98,458 as al 30 September 20221. The Trust has now completed the major part of its repair and refurbishment programme. 2016117 - roof and exterior of main building refurbished 2017118 - Hall refurbished and extended lo provide additional office accommodation 2018119- Boundary wall re-furbished and extra work lo the House 2019120 - repairs, maintenance and painting of windows and doors at rear of the House and refurbishment of others, also refurbishment of front garden and curtilage 2021122 - major refurbishment of the rooms vacated by the Gurkhas in March 2022,which have been re-lel from September 2022. The Trust completed the refurbishment of the front garden and enclosure of Wallington House in November 2021 al a gross cost of £56k. The project was supported by a grant of £19k from the Earley Poors Charity, as part of their B1-ntennIal celebrations, reducing the nel cost 10 £36k. The Trust has received very positive feedback about the added presence the improvements give lo both the House and surrounding consetvalion area. 2022123- Following our experience supporting the NHS during COVID we were approached by the lead practi we worked with lo see if we would be willing lo erect a building in the rear of Ihe main building lo rent lo the Central Reading Primary Care Network for health purposes. The feasibility study concluded during 2023 that although it might be possible lo erect such a building in the available space, the constraints of our Grade Il. property, which includes the garden, would have made Planning Consent challenging lo secure.11 was also judged that il would be difficult lo avoid impacting adversely on the House and garden. As a result no further action has been taken lo implement the proposal. TRUSTEE'S RESPONSIBILITIES STATEMENT The Trustees are responsible for preparing the Trustees, Report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally A¢PIed Accounting Practice). The law applicable lo charities in England and Wales requires the Trustees lo prepare financial slalements for each financial year which give a true and fair view of the stsle of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required lo.. 1. select suitable accounting policies and then apply them consistently- 2. obseNe the methods and principles in the Charities SORP IFRS1021', 3. make judgments and accounting estimates that are reasonable and prudent., 4. prepare the financial statements on the going concem basis unless il is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy al any time the financial position of the charity and enable them lo ensure that the financial stslemenls comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4
WATLINGTON HOUSE TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 30 SEPTEMBER 2023 Approved by order of the members of the board of Trustees and signed on their behalf by.. Canon B Shenton Dale.. Z•LL Page 5
WATLINGTON HOUSE INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2023 Independent Examinerfs Report to the Trustees of Watlington House {'the Charity'l report to the charity Trustees on my examination of the accounts of the Charity for the year ended 30 September 2023. 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 {'Ihe 2011 Act'l. I report in respect of my examination of the Charitys 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 14515llb} of the 2011 Act. Independent Examiner's Statement I have completed my examination. I confirm that no mallers have come lo my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act,. or the accounts do not accord with those records., or the accounts do not comply wlh the applicable requirements conceming the form and conlenl of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fairf view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other mallers 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- Pe Dated.. 25 June 2024 Alexander Peal Bsc (Honsl FCA DChA James Cowper Kreston Chartered Accounlanls and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG18LS Page 6
WATLINGTON HOUSE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023 Unrestricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Charitable activities 83.163 83.163 79,114 Total income 83.163 83.163 79,114 Expenditure on: Charitable activities 62.461 62.461 113,734 Total expenditure 62,461 62,461 113,734 Net movement In funds 20.702 20.702 134,6201 Reconciliation of funds.. Total funds brought forward Nel movement in funds 3,598,458 20,702 3,598,458 20,702 3,633,078 134,6201 Total funds carrled fonNard 3,619.160 3,619.160 3,598,458 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 10 to 18 form part of these financial statements. Page 7
WATLINGTON HOUSE 8ALANCE SHEET AS AT 30 SEPTEM8ER 2023 2023 2022 Note Flx•d as$els Investment property Current assets 3,500,000 3,500.000 Debtors Cash al bank and in hand Creditors.. amounts falling due within one year 2,600 95,858 119,560 14001 Not current assets 119,160 98,458 Total 888ots less current Ilabilitles 3,619.160 3,598.458 Total net ossets 3.619,160 3,598,458 Charlty funds Restricled funds Unrestricted funds 3,619,160 3,598.458 Total funds 3.619,160 3.598,458 The financial slalements were approved and authorised for issue by the Trustees and signed on their behalf by.. Canon 8 Shenton The notes on pages 10 10 18 form part of these financial slalements. Page 8
WATLINGTON HOUSE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2023 2023 2022 Note Cash flow$ from operating activities Nel cash used in operating activities 12 23,702 {18,2201 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 23,702 (18,2201 114,078 95.858 Cash and cash equivalents at the end ofthe year 13 119,560 95,858 The notes on pages 10 to 18 fomi part of these financial statements Page 9
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Accounting policies 1.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financi81 Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} and the Charities Act 2011. Wallinglon House meets the definition of a public benefit entity under FRS 102. Assets and liabilities a initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy. 1.2 Going concern The Trustees a of the view that the charity has sufficient funds to enable il lo continue its activities on a going concern basis for a period of al least 12 months. The Iruslees believe that financial statements have been prepared appropriately on the going concern basis. 1.3 Fund accounting General funds are unreslricled funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial slalements. 1.4 Income All income is recognised once the Charity has enlillemenl lo the income, il 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 al valuation and recognised as income when they a distributed lo the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included al 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. Page 10
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Accounting policies (continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty. 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 aclivily. 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 lo a single activity are apporboned 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. 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 charitls educational operations including support costs and costs relating to the governance of the charity apportioned to charitable activities. 1.6 Investment property Freehold property is revalued by the Trustees, on an open market for existing use basis. 1.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-lerm highly liquid investrnenls with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 1.9 Liabilities and provisions Liabilities are recognised when there is an obligation al the Balance sheet dale as a result of a past event. it is probable that a transfer of economic benefit will be required in selllemenl, and the amoLJnt of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay lo settle the debt or the amount il has received as advanced payments for the goods or services it musl provide. 1.10 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 al transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page11
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Income from charitable activities Unrestricted funds 2023 Total funds 2023 Total funds 2022 Tenant's rent Hall and other income 61,606 21,557 61,606 21.557 47,336 31,778 83,163 83,163 79,114 Total 2022 79,114 79,114 Analysis of expenditure on charitable activities Summary by fund type Restricted Unrestricted funds funds 2023 2023 Total 2023 Total 2022 Direct costs 61,161 1,300 61,161 1.300 112,894 840 Governance costs 62,461 62,461 113,734 Total 2022 19,000 94,734 113,734 Page 12
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Analysis of expenditure by activities Activities undertaken directly 2023 Support costs Total funds 2023 Total funds 2022 2023 Direct costs Governance costs 61,161 61,161 1.300 112,894 840 1,300 61,161 1,300 62,461 113,734 Total 2022 112,894 840 113,734 Govemance costs £1,300 comprises annual independent examination fee of £900, plus the £400 accountancy charge for additional reconciliation work. Analysis of dirert COSts Total funds 2023 Total funds 2022 Activities 2023 Caretaking Rates Insurance Light and heat House expenditure Repairs and maintenance House improvements Garden expenditure Water 12,350 5,651 6,354 10,113 12,172 4,414 12,350 5.651 6,354 10,113 12,172 4.414 7,800 5,171 5,726 9,225 12,041 8,518 58,564 6,002 813 6,002 813 757 Cleaning Sundry 2,470 822 2.470 822 4,766 326 61,161 61,161 112,894 Total 2022 112,894 112,894 Independent examiner's remuneration The independent examinerfs remuneration amounts to an independent examiner fee of £900 12022 £8751. Page 13
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Investment property Freehold Investment property Valuation At 1 October 2022 3,500.000 At 30 September 2023 3,500,000 The freehold investment property was acquired from the National Council for Voluntary Organisalions {NCVOI for a peppercorn on 18 July 2016. The freehold property was revalued by the Trustees, on an open market for existing use basis. Debtors 2023 2022 Due within one year Other debtors 2.600 2,600 Creditors- amounts falling due within one year 2023 2022 Accruals and deferred income 400 400 Creditors falling due within one year1£400 accrual) being accountancy fee for additional reconciliation work. Page 14
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 Statement of funds Statement of funds - current year Balance at 30 September 2023 Balance at 1 October 2022 Income Expenditure Unrestrlcted funds Unrestricted funds 3,598,458 83,163 (62,4611 3,619,160 Statement of funds - prlor year Balance at 30 September 2022 Balance al 1 October 2021 Income Expenditure Unrestricted funds Unreslricled funds 3,614,078 79,114 194,7341 3,598,458 Restricted funds Reslricled Funds- all funds 19,000 119,0001 Total of funds 3,633,078 79,114 1113,7341 3,598,458 Page 15
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 10. Summary offunds Summary offunds - current year Balance at 30 September 2023 Balance at 1 October 2022 Income Expenditure General funds 3.598.458 83.163 {62.4611 3,619.160 Summary offunds - prior year Balance at BalanTr al 1 October 2021 30 September 2022 Income Expenditure General funds Restricted funds 3,614,078 19,000 79,114 194,7341 3,598,458 119,0001 3,633,078 79,114 1113,7341 3,598,458 11. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Total funds 2023 Investment property Current assets 3,500,000 119,560 14001 3,500,000 119,560 14001 Creditors due within one year Total 3,619,160 3,619,160 Page 16
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 11. Analysis of net assets between funds {continuedl Analysis of net assets between funds - prior year Unrestricted funds 2022 Total funds 2022 Investment propety Current assets 3,500,000 98,458 3,500,000 98,458 Total 3,598,458 3,598,458 12. Reconciliation of net movement in funds to net cash flow from operating activities 2023 2022 Nel incomelexpendilure for the year {as per Statement of Financial Acliviliesl 20.702 134,6201 Adjustments for- Decrease in debtors Increase in creditors 2,600 400 16.400 Net cash provlded byl(used In) operatlng actlvltles 23.702 118,2201 13. Analysis of cash and cash equivalents 2023 2022 Cash in hand 119.560 95,858 Total cash and cash equivalents 119,560 95,858 Page 17
WATLINGTON HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 14. Analysis of changes in net debt At1 October 2022 Cash flows At30 Soptember 2023 Cash at bank and in hand 95,858 23,702 119,560 95,858 23,702 119,560 15. Related party transactlons During the year, one trustee received payments tolalling £1,727 12022.. £3,924) as as reimbursement for plants purchased for use in the Charity gardens. During the year, one trustee received payments lotalling £2812022.. £nill as reimbursement for purchase of materials used in the Charity gardens. During the year, one trustee paid the charity £4,30012022'. £nill for rent. During the year, Berkshire Youth Limited, related by common Trusteeship, paid the charity £11,88012022: £11,880) for rent. During the year, The Mills Archive Trust, related by common Trusteeship, paid the charity £22.981 12022: £21,696) for rent. During the year, The Reading Civic Society. related by common Trusteeship, paid the charity £24012022: £1401 for room hire. 16. Controlllng party The Charity is under joint control of the Trustees, who oversee all administration and operations that the Charity undertakes. Page 18