Charity registration number 1159795 (England and Wales)
THE HARROW MISSION
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
THE HARROW MISSION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr A Wauchope | |
|---|---|---|
| Mr A J Trotter | ||
| Mr W M A Land | ||
| Mr K W B Gilbert | ||
| Mr N Moss | ||
| Mr E Buxton | ||
| Honorary Secretary | Ms R Oxley | |
| Charity registration | England and Wales | 1159795 |
| Auditor | Haines Watts Swindon Limited | |
| Old Station House | ||
| Station Approach | ||
| Swindon | ||
| Wiltshire | ||
| SN1 3DU |
THE HARROW MISSION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent auditor's report | 4 - 6 |
| Statement of financial activities | 7 |
| Statement of financial position | 8 |
| Notes to the financial statements | 9 - 15 |
THE HARROW MISSION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
Objectives and activities
The Harrow Mission ("the Original Charity") was established, by subscriptions given by old boys of Harrow School, as a Christian mission. In 2015 the Original Charity was incorporated as a charitable incorporated organisation ("the CIO") and its primary objectives amended at that time. Over the years, the Original Charity, and now its successor the CIO, has sponsored, and will continue to sponsor, a number of different activities based on the premises that it owns in Freston Road W10 for the benefit of the local community. These premises are occupied under formal leases by The Harrow Club, the Octavia Foundation and Catch 22.
The CIO seeks to make grants which are of direct benefit to the local community through the support of these, and other voluntary organisations, which provide services and opportunities to the members of the local community that are consistent with the principles of the CIO’s objects and compliment the activities of the organisations occupying the CIO’s buildings.
Public benefit
The objects of the Original Charity, as originally constituted, were the advancement of religion and other charitable purposes for the benefit of the Parish of Holy Trinity, Latimer Road, established by an Order of Her Majesty in Council dated 12 August 1885. The Mission’s direct association with the Parish of Holy Trinity ended on 1 January 1940.
The objects of the CIO are the promotion of any charitable purpose for the benefit of the inhabitants of Greater London (“the area of benefit”) and in particular the advancement of education, the protection of health and the relief of poverty, distress and sickness, the promotion of racial harmony and the provision of recreation and leisure time occupations for the purpose of promoting social welfare, the spiritual, social, moral and physical well-being of the youth of the area of benefit.
In the Trustees’ opinion the Charity’s objectives and grant making policies are demonstrably for the public benefit and the Trustees have regard to the Charity Commission guidance in making their decisions.
Achievements and performance
Significant activities and achievements against objectives
Financial review
The charity’s investments produced a negative total return over the year, after fees, new invested monies and adjustment to market value at year end, resulting in a fall in value of £169,145 to £5,719,909 at 31 March 2025. The decrease in value, together with the Charities Deposit Fund resulted in a value of £5,865,501 at 31 March 2025.
The value of the Capital Fund consequently declined, although partially offset by a positive increase of £120,000 in
the market value of the investment property, from £7,241,833 to £7,080,088
Total incoming resources decreased slightly by £11,365 to £314,931 (2024 - increase of £30,237). The surplus in the General Fund, after expenditure, was £94,784 (2024 - £102,200) resulting in an increase in the Fund, including the designated Fund, from £549,330 to £644,114.
All funds are unrestricted at the year end including the Designated Fund.
The investment policy is to manage the assets in the Capital Fund on a total return basis to produce a return of CPI+4% on a rolling four-year average basis.
In the year the Charity made grants of £190,000 (2024: £200,302).
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THE HARROW MISSION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Reserves policy
The Capital Fund derives from the subscriptions raised in 1885 to establish the Original Charity to acquire land to enable the Original Charity to conduct its activities. The land acquired whether by purchase or donation was not permanent endowment but expendable endowment for the long-term benefit of the beneficiaries. Where such properties have been sold, the proceeds are held for investment in the Capital Fund. The Trustees seek to preserve the real value of the Capital Fund by limiting expenditure on grants, including provision for the maintenance of the Charity's properties, to net incoming resources.
In the year ended 31 March 2021 the trustees agreed to establish a designated fund of £50,000 for the maintenance and improvement of the 19th century listed building which it owns. There was no change in value of the designated fund which remained at £50,000 (2024: £50,000)
Major risks
The Trustees have considered the risks the Charity faces and believe these to be the risks of fraud, poor investment performance and significant damage to or failure of the Charity’s buildings to meet the standards required for their use.
The Trustees consider variability of investment returns on the Capital Fund constitute the Charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio with performance monitored on a regular basis.
Risk of fraud is mitigated by ensuring that donations are made only to registered charities.
The property risk is mitigated by appropriate insurance and making proper provision for the maintenance and preservation of the buildings to ensure that they are fit for purpose for which the Designated Fund has been established.
Structure, governance and management
The Charity is a Charitable Incorporated Organisation (CIO) in the name of the Harrow Mission (Registered Charity No. 1159795) having assumed all of the assets and liabilities of the predecessor charity (registered charity no. 264219) (the “Original Charity”) with effect from 1 April 2015. The predecessor charity was removed from the Charity Commission register on 28 July 2025.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr A Wauchope Mr A J Trotter Mr W M A Land Mr K W B Gilbert Mr N Moss Mr E Buxton
Recruitment and appointment of trustees
The day-to-day affairs of the Charity are under the control of the Trustees. The Secretary is responsible for the dayto-day administration of the Charity and its assets and the organisation of the Trustees’ meetings.
The Trustees have long experience of being a charity trustee and of the voluntary sector. New trustees are appointed by the Trustees, who select candidates with the relevant skills and experience to compliment those of the continuing Trustees. When new Trustees are selected, they are given an introduction to the work of the Charity, its strategy and operational policies and provided with the information they need to fulfil their roles, including information about the role of a charity trustee and charity law.
The Trustees received no remuneration for their services.
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Draft Financial Statements at 27 October 2025 at 06:52:39 soooooooodonnat THE HARROW MISSION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Statement of trustees' responsibilities
The trustees 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).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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.
The trustees' report was approved by the Board of Trustees.
..............................
Chairman
Date: . ......................
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THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE HARROW MISSION
Opinion
We have audited the financial statements of The Harrow Mission (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the Charities Act 2011.
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 the financial statements section of our report. We are independent of the charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HARROW MISSION
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
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obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
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assessing the risk of management override including identifying and testing journal entries;
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challenging the assumptions and judgements made by management in its significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) 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 now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HARROW MISSION
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Haines Watts Swindon Limited
Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN1 3DU Date: .........................
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THE HARROW MISSION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
| Unrestricted Unrestricted funds funds generalCapital Fund 2025 2025 Notes £ £ Income and endowments from: Investments 2 311,453 - Other income 3,478 - Total income 314,931 - Expenditure on: Raising funds 3 22,447 2,100 Charitable activities 4 197,700 - Total expenditure 220,147 2,100 Net gains/(losses) on investments - (279,645) Net income/(expenditure) 94,784 (281,745) Other recognised gains and losses: Revaluation of tangible fixed assets - 120,000 Net movement in funds 7 94,784 (161,745) Reconciliation of funds: Fund balances at 1 April 2024 549,330 7,241,833 Fund balances at 31 March 2025 644,114 7,080,088 |
Total Unrestricted Unrestricted funds funds generalCapital Fund 2025 2024 2024 £ £ £ 311,453 324,799 - 3,478 1,497 - 314,931 326,296 - 24,547 21,344 1,500 197,700 202,752 - 222,247 224,096 1,500 (279,645) - 488,772 (186,961) 102,200 487,272 120,000 - (60,000) (66,961) 102,200 427,272 7,791,163 447,130 6,814,561 7,724,202 549,330 7,241,833 |
Total 2024 £ 324,799 1,497 326,296 22,844 202,752 225,596 488,772 589,472 (60,000) 529,472 7,261,691 7,791,163 |
|---|---|---|
There are no recognised gains and losses other than those passing through the Statement of Financial Activities. The accounting policies and notes form part of the Financial Statements.
The notes on pages 9 to 15 form part of these financial statements.
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Draft Financial Statements at 27 October 2025 at 06:52:39 sooooooendletford THE HARROW MISSION
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
| 2025 | 2024 | ||||||
|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |||
| Fixed assets | |||||||
| Tangible assets | 10 | 1,747,815 | 1,627,814 | ||||
| Investments | 11 | 5,865,501 | 6,055,778 | ||||
| 7,613,316 | 7,683,592 | ||||||
| Current assets | |||||||
| Debtors | 12 | 75,187 | 74,710 | ||||
| Cash at bank and in hand | 80,278 | 109,976 | |||||
| 155,465 | 184,686 | ||||||
| Creditors: amounts falling due within | 13 | ||||||
| one year | (38,548) | (70,223) | |||||
| Net current assets | 116,917 | 114,463 | |||||
| Total assets less current liabilities | 7,730,233 | 7,798,055 | |||||
| Creditors: amounts falling due after | |||||||
| more than one year | 14 | (6,031) | (6,892) | ||||
| Net assets | 7,724,202 | 7,791,163 | |||||
| The funds of the charity | |||||||
| Unrestricted funds - general | 16 | 644,114 | 549,330 | ||||
| Unrestricted funds - Capital Fund | 15 | 7,080,088 | 7,241,833 | ||||
| 7,724,202 | 7,791,163 |
The notes on pages 9 to 15 form part of these financial statements.
The financial statements were approved by the trustees on .........................
..............................
Chairman
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
Charity information
The Charity constitutes a public benefit entity as defined by FRS 102.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention except for investments held as fixed assets and Investment properties. The principal accounting policies adopted are set out below.
1.2 Going concern
The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the charity's objectives.
1.4 Income
Investment income is accounted for when due for payment or in the case of the COIF Charities Funds in the period to which it relates.
Grants and donations are accounted for when received. Rent is accounted for when receivable.
1.5 Expenditure
Expenditure is accounted for on the accruals basis.
1.6 Tangible fixed assets
Tangible fixed assets are stated at cost or valuation less depreciation.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, except that no depreciation is provided on freehold land and buildings.
It is the Charity’s policy to maintain freehold buildings in such condition that their value is not impaired by the passage of time. As a consequence, any element of depreciation would, in the opinion of the Trustees, be immaterial and no provision has been made.
Investment properties, which are revalued annually, are shown at their open market value on the last valuation date.
1.7 Fixed asset investments
Investments held as fixed assets are stated at market value at the Balance Sheet date. Changes in market value are reflected in the Statement of Financial Activities.
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
(Continued)
1.8 Taxation
As a registered charity, the Charity is not liable to taxation on its investment income and gains or income and gains arising from activities in furtherance of its charitable objectives and charitable donations.
Recovery of income tax is made on tax credits arising from investments income, from receipts under deeds of covenant and gift aid payments.
1.9 Debtors and creditors
Debtors and creditors shown with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
1.10 True and fair view
By the nature of its principle activities, the Charity is a non-profit making organisation and therefore a Profit and Loss Account is not included in these financial statements, being replaced by a Statement of Financial Activities.
2 Income from investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Rental income | 137,968 | 159,221 |
| Net investment portfolio income | 172,471 | 165,578 |
| Interest receivable | 1,014 | - |
| 311,453 | 324,799 |
3 Expenditure on raising funds
| Unrestricted Unrestricted funds funds generalCapital Fund 2025 2025 £ £ Trading costs Property maintenance and repair - 2,100 Insurance 22,447 - 22,447 2,100 |
Total Unrestricted Unrestricted funds funds generalCapital Fund 2025 2024 2024 £ £ £ 2,100 - 1,500 22,447 21,344 - 24,547 21,344 1,500 |
Total 2024 £ 1,500 21,344 |
|---|---|---|
| 22,844 |
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
4 Expenditure on charitable activities
| Direct costs Grant funding of activities (see note 5) Share of support and governance costs (see note 6) Support Governance Analysis by fund Unrestricted funds - general 5 Grants payable Grants to institutions: Harrow Club W10 Kensington Dragons Avondale Extra - 6 Support costs allocated to activities Other expenses Governance costs Analysed between: Income Fund |
Income Fund 2025 £ 190,000 330 7,370 197,700 197,700 Income Fund 2025 £ 170,000 10,000 10,000 190,000 2025 £ 330 7,370 7,700 7,700 |
Income Fund 2024 £ 200,302 410 2,040 202,752 202,752 Income Fund 2024 £ 200,302 - - 200,302 2024 £ 410 2,040 2,450 2,450 |
|---|---|---|
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
| 7 | Net movement in funds | 2025 | 2024 |
|---|---|---|---|
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the audit of the charity's financial statements | 3,710 | 2,000 |
8 Trustees
The trustees, who are also considered to be the Key Management Personnel, received no remuneration or any individual expenses incurred in providing services to the charity.
9 Taxation
As a registered charity, the Charity is not liable to taxation on its investment income and gains or income and gains arising from activities in furtherance of its charitable objectives and charitable donations.
Recovery of income tax is made on tax credits arising from investments income, from receipts under deeds of covenant and gift aid payments.
10 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Freehold land | |
| and buildings | |
| £ | |
| Cost | |
| At 1 April 2024 | 1,627,815 |
| Revaluation | 120,000 |
| At 31 March 2025 | 1,747,815 |
| Carrying amount | |
| At 31 March 2025 | 1,747,815 |
| At 31 March 2024 | 1,627,814 |
Historical book cost is £345,686 (2024: £345,686).
The tangible fixed assets represent the following freehold land and buildings owned by the charity: (a) a Norman Shaw Grade II listed former church building at 187 Freston Road (b) a residential building at 189 Freston Road (c) an office building at 191 Freston Road
The Properties at 187 and 189 Freston Road are leased on concessionary terms to Harrow Club and the Octavia Foundation respectively. The premium for the lease on 189 Freston Road is specified in a separate note. Both properties are regarded as functional and are included at nominal value in the overall property valuation.
The property at 191 Freston Road is treated as an investment property, is leased at full market rate and was revalued as at 31 March 2025 at £1,680,000 by BNP Paribas Real Estate, Chartered Surveyors, in accordance with the valuation standards of the Royal Institute of Chartered Surveyors. The Trustees' policy is to revalue the property annually to ensure that the carrying value does not differ materially from the fair value at the reporting date.
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11 Fixed asset investments
| COIF Charities Deposit Fund COIF Charities Deposit Fund £ £ Cost or valuation At 1 April 2024 166,724 5,889,054 Additions - 110,502 Valuation changes (21,132) (279,647) At 31 March 2025 145,592 5,719,909 Carrying amount At 31 March 2025 145,592 5,719,909 At 31 March 2024 166,724 5,889,054 |
Total £ 6,055,778 110,502 (300,779 |
|---|---|
| 5,865,501 | |
| 5,865,501 | |
| 6,055,778 |
Investment management fees are charged within the COIF Funds and CCLA provide a statement of the costs and charges on a quarterly basis calculated in accordance with the Markets in Financial Instruments Directive (MiFID II). The total of such charges in the COIF Charities Funds in the year to March 2025 was £60,275 (2023-24: £60,011).
| 12 | Debtors | ||
|---|---|---|---|
| 2025 | 2024 | ||
| Amounts falling due within one year: | £ | £ | |
| Trade debtors | 33,187 | 35,810 | |
| Prepayments and accrued income | 42,000 | 38,900 | |
| 75,187 | 74,710 | ||
| 13 | Creditors: amounts falling due within one year |
| 13 | Creditors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Notes | £ | £ | ||
| Deferred income | 34,048 | 36,671 | ||
| Other creditors | - | 30,302 | ||
| Accruals | 4,500 | 3,250 | ||
| 38,548 | 70,223 | |||
| 14 | Creditors: amounts falling due after more than one year | |||
| 2025 | 2024 | |||
| Notes | £ | £ | ||
| Deferred income | 6,031 | 6,892 |
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
14 Creditors: amounts falling due after more than one year
(Continued)
On the grant of the 36-year lease of 189 Freston Road in 1997 a premium of £31,000 was received which is being released in equal instalments over the period of the lease at £861 per annum.
15 Unrestricted funds - Capital Fund
These are unrestricted funds which are material to the charity's activities.
| Capital Fund Previous year: Capital Fund |
At 1 April 2024 Resources expended Gains and losses At 31 March 2025 £ £ £ £ 7,241,833 (2,100) (159,645) 7,080,088 At 1 April 2023 Resources expended Gains and losses At 31 March 2024 £ £ £ £ 6,814,561 (1,500) 428,772 7,241,833 |
|---|---|
The Capital Fund derives from the subscriptions raised in 1885 to establish the original charity and acquire land to enable the original charity to conduct its activities. Any land acquired, whether by purchase or donation, was not a permanent endowment but an expendable endowment for the long-term benefit of the beneficiaries. Where such properties have been sold, the proceeds have been retained for investment in the Capital Fund. The Trustees seek to preserve the value of the Capital Fund by limiting expenditure on grants, including provision for the maintenance of the charity's properties, to an amount not exceeding the net incoming resources.
16 Unrestricted funds
| Designated Fund General funds Previous year: General funds |
At 1 April 2024 Incoming resources Resources expended At 31 March 2025 £ £ £ £ 50,000 - - 50,000 499,330 314,931 (220,147) 594,114 549,330 314,931 (220,147) 644,114 At 1 April 2023 Incoming resources Resources expended At 31 March 2024 £ £ £ £ 447,130 326,296 (224,096) 549,330 |
|---|---|
The Designated Fund balance was set up in 2021. Its purpose is for maintenance and improvements to the listed buildings owned by the charity,
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
17 Analysis of net assets between funds
| Unrestricted Unrestricted funds funds general Capital Fund 2025 2025 £ £ At 31 March 2025: Tangible assets 1,747,815 - Investments 5,865,501 - Current assets/(liabilities) 116,917 - Long term liabilities (7,086,119) 7,080,088 644,114 7,080,088 Unrestricted Unrestricted funds funds general Capital Fund 2024 2024 £ £ At 31 March 2024: Tangible assets 1,627,814 - Investments 6,055,778 - Current assets/(liabilities) 114,463 - Long term liabilities (7,248,725) 7,241,833 549,330 7,241,833 |
Total 2025 £ 1,747,815 5,865,501 116,917 (6,031) 7,724,202 Total 2024 £ 1,627,814 6,055,778 114,463 (6,892) 7,791,163 |
|---|---|
18 Related party transactions
Mr K W B Gilbert (until 31 March 2025), Mr A J Trotter and Ms R Oxley are trustees of the Harrow Club, to which the Mission leases 187 Freston Road. Rent charged for the year to the Club was £15,000 (2024: £10,000).
In addition, grants totalling £170,000 (2024: £200,302) were made to the Harrow Club.
- 15 -
Charity registration number 1159795 (England and Wales)
THE HARROW MISSION
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
THE HARROW MISSION
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr A Wauchope | |
|---|---|---|
| Mr A J Trotter | ||
| Mr W M A Land | ||
| Mr K W B Gilbert | ||
| Mr N Moss | ||
| Mr E Buxton | ||
| Honorary Secretary | Ms R Oxley | |
| Charity registration | England and Wales | 1159795 |
| Auditor | Haines Watts Swindon Limited | |
| Old Station House | ||
| Station Approach | ||
| Swindon | ||
| Wiltshire | ||
| SN1 3DU |
THE HARROW MISSION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent auditor's report | 4 - 6 |
| Statement of financial activities | 7 |
| Statement of financial position | 8 |
| Notes to the financial statements | 9 - 15 |
THE HARROW MISSION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
Objectives and activities
The Harrow Mission ("the Original Charity") was established, by subscriptions given by old boys of Harrow School, as a Christian mission. In 2015 the Original Charity was incorporated as a charitable incorporated organisation ("the CIO") and its primary objectives amended at that time. Over the years, the Original Charity, and now its successor the CIO, has sponsored, and will continue to sponsor, a number of different activities based on the premises that it owns in Freston Road W10 for the benefit of the local community. These premises are occupied under formal leases by The Harrow Club, the Octavia Foundation and Catch 22.
The CIO seeks to make grants which are of direct benefit to the local community through the support of these, and other voluntary organisations, which provide services and opportunities to the members of the local community that are consistent with the principles of the CIO’s objects and compliment the activities of the organisations occupying the CIO’s buildings.
Public benefit
The objects of the Original Charity, as originally constituted, were the advancement of religion and other charitable purposes for the benefit of the Parish of Holy Trinity, Latimer Road, established by an Order of Her Majesty in Council dated 12 August 1885. The Mission’s direct association with the Parish of Holy Trinity ended on 1 January 1940.
The objects of the CIO are the promotion of any charitable purpose for the benefit of the inhabitants of Greater London (“the area of benefit”) and in particular the advancement of education, the protection of health and the relief of poverty, distress and sickness, the promotion of racial harmony and the provision of recreation and leisure time occupations for the purpose of promoting social welfare, the spiritual, social, moral and physical well-being of the youth of the area of benefit.
In the Trustees’ opinion the Charity’s objectives and grant making policies are demonstrably for the public benefit and the Trustees have regard to the Charity Commission guidance in making their decisions.
Achievements and performance
Significant activities and achievements against objectives
Financial review
The charity’s investments produced a negative total return over the year, after fees, new invested monies and adjustment to market value at year end, resulting in a fall in value of £169,145 to £5,719,909 at 31 March 2025. The decrease in value, together with the Charities Deposit Fund resulted in a value of £5,865,501 at 31 March 2025.
The value of the Capital Fund consequently declined, although partially offset by a positive increase of £120,000 in
the market value of the investment property, from £7,241,833 to £7,080,088
Total incoming resources decreased slightly by £11,365 to £314,931 (2024 - increase of £30,237). The surplus in the General Fund, after expenditure, was £94,784 (2024 - £102,200) resulting in an increase in the Fund, including the designated Fund, from £549,330 to £644,114.
All funds are unrestricted at the year end including the Designated Fund.
The investment policy is to manage the assets in the Capital Fund on a total return basis to produce a return of CPI+4% on a rolling four-year average basis.
In the year the Charity made grants of £190,000 (2024: £200,302).
- 1 -
THE HARROW MISSION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Reserves policy
The Capital Fund derives from the subscriptions raised in 1885 to establish the Original Charity to acquire land to enable the Original Charity to conduct its activities. The land acquired whether by purchase or donation was not permanent endowment but expendable endowment for the long-term benefit of the beneficiaries. Where such properties have been sold, the proceeds are held for investment in the Capital Fund. The Trustees seek to preserve the real value of the Capital Fund by limiting expenditure on grants, including provision for the maintenance of the Charity's properties, to net incoming resources.
In the year ended 31 March 2021 the trustees agreed to establish a designated fund of £50,000 for the maintenance and improvement of the 19th century listed building which it owns. There was no change in value of the designated fund which remained at £50,000 (2024: £50,000)
Major risks
The Trustees have considered the risks the Charity faces and believe these to be the risks of fraud, poor investment performance and significant damage to or failure of the Charity’s buildings to meet the standards required for their use.
The Trustees consider variability of investment returns on the Capital Fund constitute the Charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio with performance monitored on a regular basis.
Risk of fraud is mitigated by ensuring that donations are made only to registered charities.
The property risk is mitigated by appropriate insurance and making proper provision for the maintenance and preservation of the buildings to ensure that they are fit for purpose for which the Designated Fund has been established.
Structure, governance and management
The Charity is a Charitable Incorporated Organisation (CIO) in the name of the Harrow Mission (Registered Charity No. 1159795) having assumed all of the assets and liabilities of the predecessor charity (registered charity no. 264219) (the “Original Charity”) with effect from 1 April 2015. The predecessor charity was removed from the Charity Commission register on 28 July 2025.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr A Wauchope Mr A J Trotter Mr W M A Land Mr K W B Gilbert Mr N Moss Mr E Buxton
Recruitment and appointment of trustees
The day-to-day affairs of the Charity are under the control of the Trustees. The Secretary is responsible for the dayto-day administration of the Charity and its assets and the organisation of the Trustees’ meetings.
The Trustees have long experience of being a charity trustee and of the voluntary sector. New trustees are appointed by the Trustees, who select candidates with the relevant skills and experience to compliment those of the continuing Trustees. When new Trustees are selected, they are given an introduction to the work of the Charity, its strategy and operational policies and provided with the information they need to fulfil their roles, including information about the role of a charity trustee and charity law.
The Trustees received no remuneration for their services.
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Draft Financial Statements at 27 October 2025 at 06:52:39 soooooooodonnat THE HARROW MISSION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Statement of trustees' responsibilities
The trustees 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).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.
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;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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.
The trustees' report was approved by the Board of Trustees.
..............................
Chairman
Date: . ......................
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THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE HARROW MISSION
Opinion
We have audited the financial statements of The Harrow Mission (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its incoming resources and application of resources, 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 Charities Act 2011.
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 the financial statements section of our report. We are independent of the charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
-
4 -
THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HARROW MISSION
Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
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obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
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assessing the risk of management override including identifying and testing journal entries;
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challenging the assumptions and judgements made by management in its significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) 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 now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
- 5 -
THE HARROW MISSION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HARROW MISSION
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Haines Watts Swindon Limited
Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN1 3DU Date: .........................
- 6 -
THE HARROW MISSION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
| Unrestricted Unrestricted funds funds generalCapital Fund 2025 2025 Notes £ £ Income and endowments from: Investments 2 311,453 - Other income 3,478 - Total income 314,931 - Expenditure on: Raising funds 3 22,447 2,100 Charitable activities 4 197,700 - Total expenditure 220,147 2,100 Net gains/(losses) on investments - (279,645) Net income/(expenditure) 94,784 (281,745) Other recognised gains and losses: Revaluation of tangible fixed assets - 120,000 Net movement in funds 7 94,784 (161,745) Reconciliation of funds: Fund balances at 1 April 2024 549,330 7,241,833 Fund balances at 31 March 2025 644,114 7,080,088 |
Total Unrestricted Unrestricted funds funds generalCapital Fund 2025 2024 2024 £ £ £ 311,453 324,799 - 3,478 1,497 - 314,931 326,296 - 24,547 21,344 1,500 197,700 202,752 - 222,247 224,096 1,500 (279,645) - 488,772 (186,961) 102,200 487,272 120,000 - (60,000) (66,961) 102,200 427,272 7,791,163 447,130 6,814,561 7,724,202 549,330 7,241,833 |
Total 2024 £ 324,799 1,497 326,296 22,844 202,752 225,596 488,772 589,472 (60,000) 529,472 7,261,691 7,791,163 |
|---|---|---|
There are no recognised gains and losses other than those passing through the Statement of Financial Activities. The accounting policies and notes form part of the Financial Statements.
The notes on pages 9 to 15 form part of these financial statements.
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Draft Financial Statements at 27 October 2025 at 06:52:39 sooooooendletford THE HARROW MISSION
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
| 2025 | 2024 | ||||||
|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |||
| Fixed assets | |||||||
| Tangible assets | 10 | 1,747,815 | 1,627,814 | ||||
| Investments | 11 | 5,865,501 | 6,055,778 | ||||
| 7,613,316 | 7,683,592 | ||||||
| Current assets | |||||||
| Debtors | 12 | 75,187 | 74,710 | ||||
| Cash at bank and in hand | 80,278 | 109,976 | |||||
| 155,465 | 184,686 | ||||||
| Creditors: amounts falling due within | 13 | ||||||
| one year | (38,548) | (70,223) | |||||
| Net current assets | 116,917 | 114,463 | |||||
| Total assets less current liabilities | 7,730,233 | 7,798,055 | |||||
| Creditors: amounts falling due after | |||||||
| more than one year | 14 | (6,031) | (6,892) | ||||
| Net assets | 7,724,202 | 7,791,163 | |||||
| The funds of the charity | |||||||
| Unrestricted funds - general | 16 | 644,114 | 549,330 | ||||
| Unrestricted funds - Capital Fund | 15 | 7,080,088 | 7,241,833 | ||||
| 7,724,202 | 7,791,163 |
The notes on pages 9 to 15 form part of these financial statements.
The financial statements were approved by the trustees on .........................
..............................
Chairman
- 8 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
Charity information
The Charity constitutes a public benefit entity as defined by FRS 102.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention except for investments held as fixed assets and Investment properties. The principal accounting policies adopted are set out below.
1.2 Going concern
The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the charity's objectives.
1.4 Income
Investment income is accounted for when due for payment or in the case of the COIF Charities Funds in the period to which it relates.
Grants and donations are accounted for when received. Rent is accounted for when receivable.
1.5 Expenditure
Expenditure is accounted for on the accruals basis.
1.6 Tangible fixed assets
Tangible fixed assets are stated at cost or valuation less depreciation.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, except that no depreciation is provided on freehold land and buildings.
It is the Charity’s policy to maintain freehold buildings in such condition that their value is not impaired by the passage of time. As a consequence, any element of depreciation would, in the opinion of the Trustees, be immaterial and no provision has been made.
Investment properties, which are revalued annually, are shown at their open market value on the last valuation date.
1.7 Fixed asset investments
Investments held as fixed assets are stated at market value at the Balance Sheet date. Changes in market value are reflected in the Statement of Financial Activities.
- 9 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
(Continued)
1.8 Taxation
As a registered charity, the Charity is not liable to taxation on its investment income and gains or income and gains arising from activities in furtherance of its charitable objectives and charitable donations.
Recovery of income tax is made on tax credits arising from investments income, from receipts under deeds of covenant and gift aid payments.
1.9 Debtors and creditors
Debtors and creditors shown with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
1.10 True and fair view
By the nature of its principle activities, the Charity is a non-profit making organisation and therefore a Profit and Loss Account is not included in these financial statements, being replaced by a Statement of Financial Activities.
2 Income from investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Rental income | 137,968 | 159,221 |
| Net investment portfolio income | 172,471 | 165,578 |
| Interest receivable | 1,014 | - |
| 311,453 | 324,799 |
3 Expenditure on raising funds
| Unrestricted Unrestricted funds funds generalCapital Fund 2025 2025 £ £ Trading costs Property maintenance and repair - 2,100 Insurance 22,447 - 22,447 2,100 |
Total Unrestricted Unrestricted funds funds generalCapital Fund 2025 2024 2024 £ £ £ 2,100 - 1,500 22,447 21,344 - 24,547 21,344 1,500 |
Total 2024 £ 1,500 21,344 |
|---|---|---|
| 22,844 |
- 10 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
4 Expenditure on charitable activities
| Direct costs Grant funding of activities (see note 5) Share of support and governance costs (see note 6) Support Governance Analysis by fund Unrestricted funds - general 5 Grants payable Grants to institutions: Harrow Club W10 Kensington Dragons Avondale Extra - 6 Support costs allocated to activities Other expenses Governance costs Analysed between: Income Fund |
Income Fund 2025 £ 190,000 330 7,370 197,700 197,700 Income Fund 2025 £ 170,000 10,000 10,000 190,000 2025 £ 330 7,370 7,700 7,700 |
Income Fund 2024 £ 200,302 410 2,040 202,752 202,752 Income Fund 2024 £ 200,302 - - 200,302 2024 £ 410 2,040 2,450 2,450 |
|---|---|---|
- 11 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
| 7 | Net movement in funds | 2025 | 2024 |
|---|---|---|---|
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the audit of the charity's financial statements | 3,710 | 2,000 |
8 Trustees
The trustees, who are also considered to be the Key Management Personnel, received no remuneration or any individual expenses incurred in providing services to the charity.
9 Taxation
As a registered charity, the Charity is not liable to taxation on its investment income and gains or income and gains arising from activities in furtherance of its charitable objectives and charitable donations.
Recovery of income tax is made on tax credits arising from investments income, from receipts under deeds of covenant and gift aid payments.
10 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Freehold land | |
| and buildings | |
| £ | |
| Cost | |
| At 1 April 2024 | 1,627,815 |
| Revaluation | 120,000 |
| At 31 March 2025 | 1,747,815 |
| Carrying amount | |
| At 31 March 2025 | 1,747,815 |
| At 31 March 2024 | 1,627,814 |
Historical book cost is £345,686 (2024: £345,686).
The tangible fixed assets represent the following freehold land and buildings owned by the charity: (a) a Norman Shaw Grade II listed former church building at 187 Freston Road (b) a residential building at 189 Freston Road (c) an office building at 191 Freston Road
The Properties at 187 and 189 Freston Road are leased on concessionary terms to Harrow Club and the Octavia Foundation respectively. The premium for the lease on 189 Freston Road is specified in a separate note. Both properties are regarded as functional and are included at nominal value in the overall property valuation.
The property at 191 Freston Road is treated as an investment property, is leased at full market rate and was revalued as at 31 March 2025 at £1,680,000 by BNP Paribas Real Estate, Chartered Surveyors, in accordance with the valuation standards of the Royal Institute of Chartered Surveyors. The Trustees' policy is to revalue the property annually to ensure that the carrying value does not differ materially from the fair value at the reporting date.
- 12 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11 Fixed asset investments
| COIF Charities Deposit Fund COIF Charities Deposit Fund £ £ Cost or valuation At 1 April 2024 166,724 5,889,054 Additions - 110,502 Valuation changes (21,132) (279,647) At 31 March 2025 145,592 5,719,909 Carrying amount At 31 March 2025 145,592 5,719,909 At 31 March 2024 166,724 5,889,054 |
Total £ 6,055,778 110,502 (300,779 |
|---|---|
| 5,865,501 | |
| 5,865,501 | |
| 6,055,778 |
Investment management fees are charged within the COIF Funds and CCLA provide a statement of the costs and charges on a quarterly basis calculated in accordance with the Markets in Financial Instruments Directive (MiFID II). The total of such charges in the COIF Charities Funds in the year to March 2025 was £60,275 (2023-24: £60,011).
| 12 | Debtors | ||
|---|---|---|---|
| 2025 | 2024 | ||
| Amounts falling due within one year: | £ | £ | |
| Trade debtors | 33,187 | 35,810 | |
| Prepayments and accrued income | 42,000 | 38,900 | |
| 75,187 | 74,710 | ||
| 13 | Creditors: amounts falling due within one year |
| 13 | Creditors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Notes | £ | £ | ||
| Deferred income | 34,048 | 36,671 | ||
| Other creditors | - | 30,302 | ||
| Accruals | 4,500 | 3,250 | ||
| 38,548 | 70,223 | |||
| 14 | Creditors: amounts falling due after more than one year | |||
| 2025 | 2024 | |||
| Notes | £ | £ | ||
| Deferred income | 6,031 | 6,892 |
- 13 -
THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
14 Creditors: amounts falling due after more than one year
(Continued)
On the grant of the 36-year lease of 189 Freston Road in 1997 a premium of £31,000 was received which is being released in equal instalments over the period of the lease at £861 per annum.
15 Unrestricted funds - Capital Fund
These are unrestricted funds which are material to the charity's activities.
| Capital Fund Previous year: Capital Fund |
At 1 April 2024 Resources expended Gains and losses At 31 March 2025 £ £ £ £ 7,241,833 (2,100) (159,645) 7,080,088 At 1 April 2023 Resources expended Gains and losses At 31 March 2024 £ £ £ £ 6,814,561 (1,500) 428,772 7,241,833 |
|---|---|
The Capital Fund derives from the subscriptions raised in 1885 to establish the original charity and acquire land to enable the original charity to conduct its activities. Any land acquired, whether by purchase or donation, was not a permanent endowment but an expendable endowment for the long-term benefit of the beneficiaries. Where such properties have been sold, the proceeds have been retained for investment in the Capital Fund. The Trustees seek to preserve the value of the Capital Fund by limiting expenditure on grants, including provision for the maintenance of the charity's properties, to an amount not exceeding the net incoming resources.
16 Unrestricted funds
| Designated Fund General funds Previous year: General funds |
At 1 April 2024 Incoming resources Resources expended At 31 March 2025 £ £ £ £ 50,000 - - 50,000 499,330 314,931 (220,147) 594,114 549,330 314,931 (220,147) 644,114 At 1 April 2023 Incoming resources Resources expended At 31 March 2024 £ £ £ £ 447,130 326,296 (224,096) 549,330 |
|---|---|
The Designated Fund balance was set up in 2021. Its purpose is for maintenance and improvements to the listed buildings owned by the charity,
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THE HARROW MISSION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
17 Analysis of net assets between funds
| Unrestricted Unrestricted funds funds general Capital Fund 2025 2025 £ £ At 31 March 2025: Tangible assets 1,747,815 - Investments 5,865,501 - Current assets/(liabilities) 116,917 - Long term liabilities (7,086,119) 7,080,088 644,114 7,080,088 Unrestricted Unrestricted funds funds general Capital Fund 2024 2024 £ £ At 31 March 2024: Tangible assets 1,627,814 - Investments 6,055,778 - Current assets/(liabilities) 114,463 - Long term liabilities (7,248,725) 7,241,833 549,330 7,241,833 |
Total 2025 £ 1,747,815 5,865,501 116,917 (6,031) 7,724,202 Total 2024 £ 1,627,814 6,055,778 114,463 (6,892) 7,791,163 |
|---|---|
18 Related party transactions
Mr K W B Gilbert (until 31 March 2025), Mr A J Trotter and Ms R Oxley are trustees of the Harrow Club, to which the Mission leases 187 Freston Road. Rent charged for the year to the Club was £15,000 (2024: £10,000).
In addition, grants totalling £170,000 (2024: £200,302) were made to the Harrow Club.
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The Harrow Mission
Audit Summary Report 31 March 2025
Contents
Introduction Key reporting matters Review of the year Key audit risks & audit approach Fraud & independence Accounting systems & internal controls Appendix I – Summary of misstatements Appendix II – Letter of representation Appendix III - Recommendations
Introduction
We are pleased to present a summary of our audit findings for The Harrow Mission (“the Company”) financial statements for the year ended 31 March 2025.
Our audit work is substantially completed, and we take this opportunity to draw your attention to those matters we have noted during the course of the audit thus far.
As auditors, we are also required under the International Standard on Auditing 260 (ISA 260) to communicate certain matters arising from the audit of the financial statements to those charged with governance.
Audit approach
We performed our audit work to date using the audit approach we communicated to you in our audit planning document.
Our audit has also been conducted in accordance with International Standards of Auditing (UK and Ireland) issued by the Auditing Practices Board.
Audit status
The following matters are outstanding at the date of this report:
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Approval of the final financial statements;
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Signed Letter of Representation (see Appendix II);
We hope to be able to complete the audit sign off immediately following the Directors’ approval of the final financial statements.
Acknowledgements
We would like to thank Rosalind Oxley for her help and co-operation during our audit fieldwork.
Disclaimer
This report has been prepared solely for your use and should not be quoted in whole or in part without our prior written consent. No responsibility to any third party is accepted as the report has not been prepared for and is not intended for any other purpose.
Key reporting matters
Significant audit risks
At the planning stage we issued our audit planning letter which highlighted the key audit risks we had identified and the work we planned to perform to address them. We carried out these procedures during our audit and have summarised our findings and conclusions in the key audit risks and audit approach section.
Unadjusted misstatements detected by us
We have included a summary which records the adjusted and unadjusted misstatements in appendix I. The schedule does not include matters we believe to be clearly trivial or any matters still under review.
Expected modifications to our report
We do not expect to make any modifications to our audit report subject to the conclusion on outstanding matters in the introduction section. However, our responsibilities with regards to the audit report extend up to the date on which it is signed, and we will advise you of any changes to this position if necessary.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) (“ISAs”). Our engagement letter sets out more fully the respective responsibilities of the Directors and the auditors. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and its members as a body, for our audit work, for the audit report, or for the opinions we form. A statement to this effect will be incorporated within our audit report.
Significant difficulties
We are required to communicate to you if we encounter significant difficulties while performing our work.
We have not experienced any significant difficulties during our audit, and we have not identified any significant matters which we consider should be reported to you.
Internal controls
Any control deficiencies identified during the course of our audit have been summarised for you in the accounting systems and internal controls section.
The purpose of our audit is to express an opinion on the financial statements and not to express an opinion of the effectiveness of the internal control environment. Had our work been focused on assessing the internal control environment further deficiencies may have been identified.
Any deficiencies we have identified and reported to you should not therefore be regarded as a complete list of all deficiencies which may exist.
continued… Key reporting matters
Required communications
Auditing standards require us to communicate further matters to you by exception and to evaluate the adequacy of the communication process between us.
We confirm that there are no further matters to be communicated and that we are satisfied with the adequacy and effectiveness of the communication between us.
We are also required to communicate our assessment of the preparedness of management for the audit, and any impact this had on our work.
Readiness for audit
An audit file had been prepared in advance of the audit, and we were provided with comprehensive working papers as they were required.
Qualitative aspects of accounting practices and financial reporting
During the course of our audit, we consider the qualitative aspect of the financial reporting process, including items that have a significant impact on the relevance, reliability, comparability and materiality of the information provided by the financial statements. We have discussed with you the following observations:
- The appropriateness of the accounting policies to the particular circumstances of the Company;
Responses to queries
All staff worked hard to assist us during the audit and responded to our queries.
Availability of staff
All staff were made available to us when we needed to speak to them.
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The appropriateness of accounting estimates and judgements, including the consistency of assumptions and degree of prudence reflected in the accounting records;
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The potential effect on the financial statements of any uncertainties including significant risks and disclosures, such as pending litigation that are required to be disclosed in the financial statements; and
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Material uncertainties related to events and conditions that may cast significant doubt on the Company's ability to continue as a going concern.
Our audit work to date has not identified any issues in relation to the above matters which we need to bring to your attention.
Review of the year
Income
Rental income for the year decreased from £159,221 in 2024 to £137,968 in 2025.
Investments made a loss of £279,645 in 2025, compared to a gain of £488,772 in 2024.
3.4%
Income decrease (2024 | 10.2% increase)
Costs
Expenditure related to raising funds and charitable activities remained quite stable year-on-year, decreasing from £224,096 in 2024 to £220,147 in 2025.
Assets
Tangible assets increased from £1,627,814 in 2024 to £1,747,815 in 2025.
Investments decreased from £6,055,778 in 2024 to £5,865,501 in 2025.
Current assets decreased from £184,686 in 2024 to £155,465 in 2025.
2.2%
Net asset increase (2024 | 16.9%)
Key audit risks & audit approach
Revenue recognition
Our approach
Conclusion
The treatment of revenue in line with appropriate income recognition policies is a key financial principle and is a presumed risk under the International Standards on Auditing (ISAs)
We have considered the accounting policies applied by the Company and have performed testing to ensure these policies have been correctly applied.
We also performed cut-off testing to ensure income was recorded in the correct period.
Our audit work in this area has been successfully completed. We have obtained the audit evidence we require to conclude that revenue recognition is not materially misstated and there are no significant matters which need to be reported to you.
Management override
Our approach
Conclusion
The key procedures in place to ensure that the financial statements cannot be unduly influenced, or adjustments made to alter the presentation of the financial statements. Due to the unpredictable way in which such an override could occur, there is an inherent risk of financial misreporting due to fraud which represents a significant risk on all audits.
We have addressed this risk through the work we have performed on journal entries made during the year. We have reviewed all significant or unusual entries to ensure they are appropriate and reasonable. We have also reviewed the key estimates which have been made in preparing the financial results for the year.
Our audit work in this area has been successfully completed. We have obtained the audit evidence we require to conclude that no management override issues have arisen which need to be reported to you.
Going concern
Our approach
Conclusion
The reliance upon external funding impacts significantly on the assessment of going concern.
We reviewed the budgets/forecasts and minutes to ensure that appropriate levels of funding are being obtained for future periods.
Our audit work in this area has been successfully completed. We have obtained the audit evidence we require to conclude that the going concern assumption is appropriate.
Going concern was inspected and discussed throughout the various stages of the audit.
During the audit we must assess whether any new risks have arisen that would impact the work required. We have not identified any additional significant risks during the course of performing our audit.
Fraud & independence
Fraud
International Standard on Auditing (UK & Ireland) 240 “The Auditor’s responsibilities relating to fraud in an audit of financial statements” sets out our responsibilities as auditors for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error.
Our key objectives in connection with this responsibility are:
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To identify and assess the risks of material misstatement of the financial statements due to fraud;
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To obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
Independence
In relation to the audit of the financial statements of the Company for the year ended 31 March 2025, we confirm that there were no relationships between Haines Watts Swindon Limited and the Company, its Directors and senior management and its affiliates that we consider may reasonably be thought to bear on the objectivity and independence of the audit engagement lead and audit staff.
We also confirm that we have complied with the requirements of auditing standards (ISAs UK & Ireland) and UK Ethical Standards in relation to independence and objectivity.
- To respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with management and the Board of Directors. It is important that management place a strong emphasis on fraud prevention by putting in place a structure which deters individuals from committing fraud because of the likelihood of detection and punishment. This involves a commitment to creating a culture of honesty and ethical behaviour. The Board of Directors also have a responsibility to consider the potential for override of controls or other inappropriate influence over the financial reporting process, such as efforts by management to manage results.
Accounting systems & internal controls
During the course of our audit of the financial statements for the year ended 31 March 2025, we examined the principle internal controls which the Directors have established to enable them to ensure, as far as possible, the accuracy and reliability of the Company’s accounting records and to safeguard the Company’s assets.
We are writing formally in order to draw your attention to any weaknesses in control which came to our attention during this examination and to suggest ways in which the system could be improved.
Key systems in use
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Sharepoint for data sharing
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Excel bank movements reconciliations
Key financial internal controls
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Annual budget
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Authorisation required for any expenditure
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Dual authorisation
There were no significant weaknesses in current operational controls that were discovered as part of our audit work. Our testing does not place any reliance on the controls that are in place, however we do satisfy ourselves with an understanding by carrying out walk through testing.
Our recommendations are detailed in Appendix III.
Summary of misstatements
This section contains details of unadjusted and adjusted misstatements, which we have found during the course of our audit work and are obliged to bring to your attention.
The Board of Directors (“those charged with governance”) are requested to consider the uncorrected misstatements and to confirm whether they consider that these are not significant to the financial statements and should not be amended..
If the misstatements are not amended, we will require a written representation from you explaining your reasons (for example, if the Board consider that the adjustments are not material).
Adjusted misstatements
No adjusted misstatements were identified during our audit fieldwork.
Unadjusted misstatements
No unadjusted misstatements were identified during our audit fieldwork.
Materiality was set at £16,640, and the triviality threshold at £1,040. There were no matters identified for discussion that either individually, or cumulatively, exceeded the triviality threshold, and therefore there are no matters to report here.
Appendix I
Letter of representation
Haines Watts Swindon Limited Old Station House Station Approach Newport Street Swindon SN1 3DU
Dear Sirs
The Harrow Mission
The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the Company’s financial statements for the year ended 31 March 2025. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.
General
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We have fulfilled our responsibilities as Directors, as set out in the terms of your engagement letter under the Companies Act 2006, for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you.
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All the transactions undertaken by the company have been properly reflected and recorded in the accounting records.
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All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the company, and with all other records and related information requested, including minutes of all management and shareholder meetings.
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The financial statements are free of material misstatements, including omissions.
Appendix II
continued… Letter of representation
Internal control and fraud
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We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud.
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We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements.
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We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others.
Assets and liabilities
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The company has satisfactory title to all assets and there are no liens or encumbrances on the company’s assets, except for those that are disclosed in the notes to the financial statements.
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All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate.
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We have no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities reflected in the financial statements.
Accounting estimates
- Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
Loans and arrangements
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The company has not granted any advances or credits to, or made guarantees on behalf of, Directors other than those disclosed in the financial statements.
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There is no undisclosed security or guarantees in respect of loan finance.
Legal claims
- We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements.
Appendix II
continued… Letter of representation
Laws and regulations
- We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
Related parties
- Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with the requirements of company law or accounting standards.
Subsequent events
- All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed.
Going concern
- We believe that the company's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the company's needs. We have considered a period of twelve months from the date of approval of the financial statements.
We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.
Each Director has taken all the steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establish that you are aware of that information.
Yours faithfully
~~~~ ___ d of Directors Date
Appendix II
Recommendations
Following the conclusion of our audit work, we would like to advise you of other matters that came to our attention during the assignment. These matters do not impact on our audit opinion and the following recommendations are based upon our observations when conducting our audit testing. We have not undertaken a full internal control review. However, if this is something you wish to discuss, please let us know.
| review. However, if this is something you wish to discuss, please let us know. | |
|---|---|
| Matter | Recommendation |
| Corporate Criminal Offences It is a criminal offence for a company to participate in, or facilitate, the evasion of tax whether in the UK or overseas. An absence of appropriate procedures can be considered facilitation. |
As part of the internal control procedures, we recommend that you check the suitability of procedures, which might include systems for: checking the identity of third parties; identifying unusual or suspicious activity; identifying circumstances where the risk of the evasion of tax is higher. If you require our assistance or advice on this matter, please let us know. |
| Going concern evaluation A going concern evaluation is used by an entity to assess its financial position in periods to come. This is useful in decision making. We noted during the audit that a formal evaluation does not appear to be minuted by the Trustees. Whilst investment assets remain robust and liquid, it is likely that the Trustees and the Auditors can reasonably assess the appropriateness of the adoption of the going concern basis without full forecasts [cash flow, SoFA, SoFP] covering the review period. However there is a risk that the absence of such forecasts could result in the adoption of going concern not being appropriately supported [for example, where the cash flow masks growth in liabilities or increasing illiquidity in the investment portfolio]. |
If not already in place, a formal evaluation should be minuted by the Trustees. Consideration should be given to preparing balance sheet, SoFA and cashflow forecasts by month for the full review period. This would become a more significant issue if reserve levels drop or are forecast to drop. Where such forecasts are not prepared, we would recommend that the Trustees document why this was considered unnecessary [this demonstrates that the Trustees are aware of the process and have reasonably determined that it is unnecessary in the circumstances] |
Appendix III
Recommendations
Matter
Recommendation
Financial Reserves Policy
The Financial Reserves Policy is an important document as the Trustees are required to determine the level of reserves necessary to reasonably enable the Charity to continue to carry out its primary objectives.
The Charity Commission can, and does, consider whether charities hold excessive reserves. Where, as in this case, reserves are significant and are not represented by functional assets or permanent endowments, there is a risk that the Charity Commission might challenge the level of reserves.
The primary objective of the charity is the benefit on persons in the Greater London area. Given that the Capital Fund is an expendable endowment, it might be argued that maintaining the fund [say] purely for the perpetuation of the charity is contrary to the primary objective where there is no realistic prospect of the funds being spent for that purpose. As a result, consideration should be given to enhancing the Financial Reserves Policy to address that challenge, coupled with a disclosure in the accounts.
At present, the disclosures state that the Trustees seek to preserve the Capital Fund, but not the reason for this.
Appendix III
Issuer
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