**CCT Trustee Report for End Dec 22 Annual Return** Prepared by Tom and Yamila, Sep 2023 ## **Structure, Governance and Management** Type of governing document: Constitution How is the charity constituted: CIO (Foundation Model) Trustee recruitment via Reach Volunteering and local forums. We have a Trustee Handbook. The first Trustees have completed training with NCVO. Organisational structure: Chair Secretary Treasurer ## **Objectives and Activities** The CCT will manage and develop the Carnegie building on behalf of the community as a Community Hub and Enterprise Library, enhancing the lives of our local communities, strengthening the local economy, supporting local culture and encouraging wellbeing. - The long-term sustainable future of the Carnegie Library building in Herne Hill will be secured as a community owned and managed asset. - The building will provide wide public access and community use to include a wide range of activities that complement the learning, literary, cultural and creative ethos originally envisaged in Andrew Carnegie's endowment. - The historical legacy and the architectural fabric of the building will be secured. The Trustees of CCT CIO have developed and operate the Carnegie Library Hub at Carnegie Library. We operate under a licence currently renewed every 6 months, pending agreement of a long term lease. The main activity of the Hub is to hire out the five rooms in the building, except the library room itself, for community and commercial activities to generate income. Wherever possible hires ae community based, local and attract local residents. One room is dedicated to individual desk hires - the Enterprise Centre. The Trustees have had regard to guidance issued by the Charity Commission on Public Benefit. Volunteers make an important contribution by tending to the large garden area which surrounds the building. ## **Achievements and Performance** Our first employee was hired as Centre Manager in late 2021, thus we started the year with an excellent cross section of activities from pre-covid clients to new clients. The website and advertising helped kickstart this growth phase of the community hub. It was quickly recognised that managing the enquiries and bookings, as well as staffing events, required more resources. In March we hired a second Centre Manager, as well as several Caretakers who could staff evenings and weekends. The community business or room hire continued to grow steadily throughout the year, made more efficient by use of a more streamlines enquiry process. In the last quarter we had a record 57 enquires for bookings, many of which converted into one-off or repeat bookings. By the end of the year our core business was breaking even. One off partners were varied. We were very popular for children’s parties, but also hosted one off events for refugees, NHS away days, filming, etc. Regular partners are equally diverse including karate, choir, yoga & wellness, craft, art, drama, ballet to name a few. In the Autumn we ran an Autumn Fayre with food and entertainment in one large room, and local craft sellers in another. It was popular and well attended and raised awareness and funding. We invested heavily in equipment. Using various funds, we purchased 100 premium folding chairs, 16 premium tables and trolleys. Additionally, we purchased some provisional café equipment which has immediate use for our hirers. We also invested in technology, purchasing laptops and ms365 licenses so that our teams could be more productive and connected. We continue to invest in communications and social media moving to a paid for model, rather than volunteer run. We were able to adopt a modern accounting system which streamlined invoice creation and payment. Operating under license we continued to work with Lambeth Council on frequent updates to move towards a more permanent footing. We frequently fed back to Lambeth as the freeholder on steps needed to improve the community hub offering. We ran an open tender process for running of a community café inviting local independent café operators. Our shortlist included 2 local operators, one of which was chosen for the next phase of planning and delivery. We meet with the Chief Executive of Lambeth council in December 2022 to review our progress to date, confirm their commitment and outline existing bottlenecks to our success. We received affirmation from the Chief Executive of our current strategy. During 2022 we were able to attract 4 more trustees and saying goodbye to one of the founding trustees taking the board to 7. At the end of the year and going into the next, we were active in refining our business strategy, resource strategy and community response. ## **Financial Review** The financial position was stable - see accounts - as we had more outgoings in 2021. Reserves held by the charity are detailed in the Statement of Financial Position on page 7 of the accounts. A Reserves Policy is under consideration. In 2022 we hired 3 part time employees and several caretakers on casual worker contracts. Income generated from room hires and grant applications. The risks facing the charity as of end 2022 are: 1. Lambeth refurbishing plans for the building continue to be delayed, with active leaks in our rooms. 2. We are unable to secure an agreed lease. 3. The building - Carnegie Library - is not maintained in good enough repair for successful room hires. CHARITY REGISTRATION NLIMBER: 1164005 The Carnegie Herne Hill Community Trust CIO Unaudited Financial Ststements 31 December 2022 WALTER HUNTER & CO LIMITED Chartered accountants 24 Bridge Street Newport South Wales NP20 4SF The Carnegie Herne Hill Community Trust CIO Flnanclal Statements Year ended 31 Decembar 2022 Page Trustees, annual report Independent examinerfs report to the trustees Statement of financial activities Statement of financial position Notes to the financial statements The Carnegie Heme Hill Communlty Trust CIO Trustees. Annual Report Year endod 31 December 2022 The injslees present their report and the unaudited financial stslemenls of charity for the year ended 31 De￿rnbel 2022. Refere￿¢ and administrdtive detalls Regi$lered chafity name The Camegie Hetne Hill Community Trust CIO Chaiity registration number 1164005 Principal office Camegie Library 192 Heme Hill Road Heme Hill LONDON SE24 ODG The trustses B pr1r￿e N McLeod Y B K2rraz T Halahan B Morrison R Wilson L Nightingale (Appolnted 17 March 20221 (Appointed 3 October 20221 (Appointed 1 November 2022) (Appointed 1 November 2022 Indapendent examiner Mr Jonathan Rhodes Bsc BFP FCA 24 Bridge Street Newport South Wales NP20 4SF Structure, governante and management Typ8 of goveming document.. Constilulion How is the charity consliluled.. CIO {Foundation Model) Trustee recruitmnl via Reach Volunteering and local forums. We have a Trust* HandbofJ(. The first Trustees have completed training with NCVO. Organisational structure". Chair S&retary Treasurer The Carnegie Herne Hill Community Trust CIO Trustees. Annual Roport fcontlntmdj Year ended 31 December 2022 Objectives and activities The CCT will manaJe and devel(T) the Carneg(e building on behalf of the cornmunty as a Community Hub and EnteJpti5e Library, enhancing the live5 of our kxal t￿mMun￿e$, stréngthening the hjcal economy, supporting Itxal culture and eneourdging wellbeing. - The long-tem sustsinable future of the Camegte Library building in Heme Hill will be secured as a cotThnunty owned and managed asset. - The building will provwje wide public access and community use to include a wide range of activities that complem8nt lh8 leaming, h'terary, cumural and creative ethos originalty envisaged in Andrew Camegie's endowment. - The historul legacy and the architectural fabr￿ of the building will be secured. The Trustees of CCT CIO have developed and operate the Camegie Librdry Hub at Carnegie Library. We operate under a li￿n￿ currently renewed every 6 months, pending agreem8nl of a long temi The main activity of the Hub is lo hire out the five rooms in the building, except the library room itself, for communty and commercial activtties to generate income. Wherever possible hires ￿ community based, Ictal and attract local residents. One room is dedicated lo individual desk hires - the Enterprise Cerrtre. The Trustees have had regard to gutdanLE issued by the Charity Commissk?n on Public Benefit. Volunteers make an important contribution by tending to the large gafdefi area which surrounds the building. The Carnegie Herne Hill Community Trust cio Trustees. Annual Report (conthu Year ended 31 December 2022 Achigvgmgnts and porfomlance Our firsl emptyee was hired as Cantre Manager in kle 2021, thus we started the year with an excellent cross section of actIv￿eS from Pfe•covid clients lo new Clients. The website and advertising help￿ kid(slart this growth phase of the community hub. It wa8 quickly rBcognised that managirtg the 8nquiries and bookings, as well as staffing events, required more resources. In March we hired a S￿ond Centre Manager, as well as several Caretakers who wuld staff evenings and weekends. The community business or rwm hirE continu8d lo grow steadity throughout the year. made more ethent by use of a more streamlines enquiry process. In the last quarter we had a record 57 enquires for bookings, many of which conv8rted into one4)ff or repeal bookings. By the end of the year our core busine55 was breaking even. One off partners werè varied. We were very popular for children's parties. but also hosted one off events for refugees, NHS away days, filming, etc. Regular partners are equally diverse including karate, chw. yoga & wellness, craft, art, drama, ballet to nanE a few. In the Autumn we ran an Athumn Fayre with foTrJ and entertainment in one large room, and k)cal craft sel*s in another. It was popular and well atterKled and raised awareness and funding. We invested heavily in equipment. Using various funds, we purchased 100 premium folding chairs, 16 premium tables and 1101*5. Additionally, we purchased some Pfuvisional café equipment which has immediate use for our hirers. We also invested in technology. purchasing laptops and ms365 li￿nSeS so that our teams could b& more productive and conneded. We continue to invest in communicatK)ns and social media moviny to a paid for model, ralhèr than volunteer run. We were able to adopt a nv)dern aCCo￿ling systèm which streamlined invoice creation and payment. op￿￿1n9 under license we continLFed to work with Lambeth Council on frequent updates to move ttr￿ardS a ￿Ore pemianenl footing. We frequentw fed back to Lambeth as the freeholder on steps needed to improve the Community hub offering. We ran an open tender prrJcess for running of a community café inviting local Midependent café operators. Our shortlist includ￿£ 2 local operators, one of which was chosen for the nexi phase of P￿NnIng and delivery. We mael wfth the Chief Executive of Lambelh council in December 2022 to review our progress to date, confim their commitrnent and ￿tlIne existing bottkr)e¢ks to our success. T￿1ved affwmatioft from the Chief Executs've of our current strategy. During 2022 we were ab￿ lo attract 4 more trustees and saying g¢Jodbye to one of the lounding tiustees taking the board lo 7. Al the end of the year arwJ going into the nexl, we were actNe in reffining our business strategy. resource strategy and community response. The Camegie Heme Hill Community Trust CIO Trustees. Annual R•port(cOkrt￿Ue Year ended 31 December 2022 Financial rnvlew The financial position was stable- see aco)unts- as we had I￿re outgoings in 2021. Reserves held by th8 charty ar8 detailed in the Statement of Financial Position on paje 7 of the a￿)￿nIs. A Reseryes Policy is under consideration. In 2022 we hired 3 part tirne employees and several caretake￿ on casual worker contracts. InccKne generated from roc*n hires and grdnt applications. The risks facing the as of ènd 2022 are.. 1. Lambeth refurbishing plans forthe building continue lo be deLAyed, with active leaks in our room5. 2. We unable tr) secure an agreed lease. 3. The buiwing - Camegie Library- is not maintained in gocKI encwgh repair for SUC￿3$￿1 ro¢Kn hires. The trustees. annual report was approved on 5 October 2023 and signe(l on behalf of the board of tnjslees by.. T Halahan Truste8 The Carnegie Herne Hill Community Trust CIO Indgpendent Examinerfs Report to the Trustees of The Camegle Herne Hill Community Trust CIO Yaar ended 31 December 2022 l ￿POrt to the trustees on my examination of th8 financial statements of The Cam4￿ Heme Hill Community Trust CIO {'the charity'l for the year ended 31 December 2022. Responslbllltl8s and basis of report As the trustees of the Gharity you are responsible for the preparation of Ihe fina￿101 statements in accordance with the requirements of the Charities Act 2011 Ilhe Act'i. I report in respect of my examinatm of the ¢harty's finanoal stalements cathed OLrt urKler séction 145 of the 2011 Act and in Gairying out my examination I have followed all the applicable Direct*￿$ given by the Charity Commission under section 145(5llb) of the Act. Independent WAaminefs ststement I have completed my examination. l Confirm that no matetial matters have como lo my attention in connection with the examination giving me cause to b81i8ve that in any malerial respect" accounting recL)ids were not kept in respect of the charity as iequired by secbon 130 of the Act., or the fi'nancial statements do not accord with those records", or the financial statements do not Comp￿ with the applÈcable requirements conceming the form and content of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any [pquI￿rne￿t that the accounts give a *rue and fail view which is not a maller consKlered as part of an Independent examination. I have no concerns and have come across no other matters in connecticm with the examinatiorl to which attention should be drawn in this report in order to enable a propw understanding of the accounts to be reached. Mr Jonathan Rhodes Bsc BFP FCA Independent Examin 24 Bridge Street South Wales NP20 4SF 5 Cktober 2023 The Carnegie Herne Hill Community Trust CIO Statement of Financial Activities Year anded 31 December 2022 2022 Restricted funds Total funds Total funds 2021 Unrestricted fijnds Nots Incomè and endowments Donations and legacies Charitable aclivilies 38.175 47,613 38,175 47.613 42,686 15,618 Total Income 85,788 85,788 58,304 ExpendltuT8 Expenditure on charilable activf(ies Totsl expendltura 36,330 22.590 58.920 9,538 9,538 36,330 22,590 58,920 Net Income and net movem8nt In funds 49.458 (22.5901 26,868 48.766 Reconciliation of funds Total funds brought forward Total funds Ca￿led forward 48,662 26,922 75,584 26,818 98.120 4,332 102,452 75,584 The ststen￿l of financial actwi(ies includes all gains and losses recognised in th8 yw. All income and expenditure derwe from continuing &tMlies. Th• not•s on paoes 8 to 15 fomi part of these financlal 5tatemonts. The Carnegie Herne Hill Community Trust CIO Statement of Financial Position 31 December 2022 2022 2021 Fixed assets T*gible fixed assets 11 4,332 CUr￿nt assets Dobtors Cash at bank and in hand 12 44.696 65.438 788 75,937 110,134 76,725 Creilitr>rs: amounts falling dug wfthln one year Net CUTrent ass•ts 13 12,014 1,141 75,584 98,120 Totsl assets less currenl liabllttles 102,452 75,584 Net assets 102,452 75,584 Funds of the charlty Restricted funds Unrestricted funds 4.332 98.120 26.922 48,662 75,584 Total charity funds 16 102.452 The8e finanoal statements were approved by the IKJard of trustees 8nd aulhorised for i88ue on 5 October 2023. and are signed on behaw of the board by.. T Halahan Trustee The noies on p8geg 8 to 15 form part of th88e ftnan¢lal Ststgrnents. The Carnegie Herne Hill Community Trust CIO Nots8 to the Financial Statements Year ended 31 De¢emb6r 2022 GeneTal Informatlon The charity is a public benefrt anlity and a registered tharty in Engknd and Wales and Is unincorporated. The address ol the PlTnupal offic& is Carn8gie LibTrry. 192 Heme Hill Road, Heme Hill, LONDON, SE24 00G. Ststement of compliance These financial statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of IreLand', the Statement of Recommended Practice applicable to charities preparing their aeeounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) Icharities SORP (FRS 102)) and the Charities Act 2011. Accounting policigs Basls of preparation Th8 financial sialements have been prepared on the historical cost basis. The financial stalemenls are prepared in sterling, whiGh is the fvnCt￿nal currenty of the &nlty. rounded to the nearest pound. Going concem There ate no material uncertainties about the charity's abilrty to continuè. Judgements and key Sources of estimation uncertainty The preparation of the financial slalemenls requires management to make judgements. 8slimates and assumptions that affect the amounts reported. These estimates and judgements are Continual￿ rewewed and are based on experience and other factors, indudiw expectsliMs of future events Ihal are believed lo be reasonabl8 und8r the circumstsnces. Income tax The tha￿ty is exempt from lax on its charrtable aGlivrties. Fund accountlng Unrestricted funds are avalable for use at the discretion of the trust￿ to further any of the charl￿S purposes. Des￿nated funds are unrestricted furNJs earvnarked by the trustees for partrular fLrture project or commitment. Restricted funds subjected lo restrictions on their expendfture declared by the donor or through the terms of an appeal. and fall into one of two sub-classes.. reslrthd i￿Orne fvnds or endofftnt funds. The Carnegie Herne Hill Community Trust CIO Notes to the Financlal Statements (eontlnuedj Year ended 31 December 2022 Accounting pollcles (coNUnuedJ Incomlng regources l incoming resources are included in the slaiement of financial activities when entitlement has passed lo the charty- it is probable that the economic benefrts associated with the transaction will flow to the charty and the amount can be rgliably measured. The following Spe¢rf￿ policies are applEd to particular categories of income. income from donations or grants is recognis8d when there is eV￿￿en￿ of entitlement to the grft, receipt is probable and its amount can be me88ured reliably. acy irthme is re¢ognised when r￿1p1 is probable and entitlement is established. incLNne from donated goods is measured al Ihe fair value of the wods unless this is impractical lo measure reliably, in which case the value is derived from the cost lo the donor or the estimated resale value. Donated facilities and s8rvices are ￿e￿gnIsed in the accounts when received rf tha value Can be teliabty measure(l. No amounts are included for the contribution of general volunteer3. income from contracts for the suppty of services is re¢￿jnISod with the delivery of the Contract￿ seNice. This is classtfied as unrestricted funds unless there is a contractual requirement for rt lo be spent on a partieukr purpose and retumed ￿ unspent, in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liabilty is incurred Expendf(ure includes any VAT which cannot be fully recovered. and is eLas$ified under headings of the statement of an¢kql activitie5 to which il relates.. expenditure on raising fvnds includes the eosts of all fvndfaising activities, ev8nls, non-chal1t8b￿ trading aclivilies, and the sale of donated got>Ys. expenditure on ChaNtab￿ activit￿$ includes all eosts incurred by a charity in undertaking tivitips that further ils charitable aim5 for the ben8fil of ils beneftciaries. including those support costs and costs relating to the governance of the charty apportioned to charitable activrties. other expenditure includes all expenditure that is neither ￿lated to raising funds for Ihe charity nor part of its expendrture on charitable activities. Atl costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activty are allocated directly to that activity. Shared costs are apportioned belY￿n the activilkgs th8y contribute to on a reasonable, jusliffiable and Consistent basis. Tanglble assets Tangible assets a￿ initially reeorded at cost, and SL*seyuentty stated at cost less 4ny accumulated d8preciats.on aF￿ Impalm￿nI losses. The Carnegie Herne Hill Community Trust CIO Notes to the Financlal Statements (C￿￿e0? Year ended 31 December 2022 Accounting pollcia$ (eonthitrt Depreciation Dep￿CIation is (31culated 50 as to vKit8 off the cost or valuation of an asset, le88 its residual value, ¢)ver the useful economic lrfe of that asset as folk)ws'. Plant and machinery p.a. Straight Line Impainnent of fix8d assets A review for indicators of impaimient Is carriéd Dut at each reporting dale, with the recoverable amount being estimated where such indicators exist. ￿￿ere the carrying value exceed5 the recoverab￿ amount, the asset 1$ impaired accordingly. Prioi impairments are also reviewed for possible reversal at each reporting date. Financial instruments A finar￿la1 asset or a financtal Ik8bility is recognised only when the entty b￿c￿e$ a party lo the contractual provisK)ns of the instrument. Basi¢ finarKial instruments afe initialty recogni5ed al the amcojnl receivable or payable including any related transaction costs, unless the arrangement Conslilules a financing Iransaction, where is recognised at the present value of the future payments discounted at 8 market rale of interest for a slmilar debt InStrun￿nt. Current assets and current k'abilities are subsequéntty I￿sUred at the cash or olher consideration expected lo be paid or weived and not discounled. Defined contribution plans Contribuik)ns lo defined contribution plans are re￿nised as an expense in the pericrfj in which the related Servi￿ is provided. Prepaid contribut￿)n$ are rec(¥Jnised as an asset to the exlent that the p￿paYment will lead to a reduclion in future paym￿ or a cash refund. V41)en coniributions are not expected lo be settled wholty within 12 months of the end of the rep(xting date in which the employees rendèr thè related service, the liability is measured on discounted pres8nt value basis. The unwindmig of the discount is rwnised as an expense in the period in which it arises. Donations and legacies UnrestrKl&J Funds Restricted Total Funds FuThls 2022 Donations Donations Donations- Endowment 1,469 1,706 1.469 1,706 10 The Carnegie Heme Hill Community Trust CIO Notes to the Financial Ststements (contlnued) Year ended 31 December 2022 Donations and legacies (¢onbnye Unrest￿ed Funds ReStr￿ted Total Funds Funds 2022 Grants London Borough of Lambeth London Catalyst The London Community 35,000 35.000 38,175 38.175 Unrestricted Funds Restr￿ed T¢)tral Funds Funds 2021 Donations Donations Donat￿n$ - Endowment Grants London Borough of Lambelh London Catalyst The London CorTwnunty 35,000 35.000 2,000 5.000 2,000 5,000 35,686 7,ODO 42.686 Charitable activities Unrp51ricted Total Funds Unr85tricled Total Funds Funds 2022 Funds 2021 Room & Desk Hire 47.613 47.613 15.618 15,618 11 The Carnegie Heme Hill Community Trust cio Notes to the Flnan¢lal Statements fconllnu•dJ Year onded 31 December 2022 Expendlture on charltable actlvities by fund typ8 Unrestricted Funds Restricted Total Funds Funds 2022 Room & Oesk Hire Awards forAII Co-op Borough London Borough of Lambeth Catalyst The London Conmnunity End[P￿ment 5,498 5,498 4,357 15,565 29,617 2.000 668 1,215 4,357 15,565 29,617 2,000 668 1,215 36,330 22,590 58,920 Unrestricted Funds Restricted Total Funds Funds 2021 R￿n & Desk Hire Awards for All C(kOp Borough London Borough of Lambeth Catstysl Th8 London Community Endowment 1,952 1,952 1,131 2,847 3,608 1.131 2,847 3,608 3.978 9,538 Net income Nel inLX)me 15 slated after chargingllcrediting}'. 2022 2021 Depreciation of tangible fixed assets Independent examlnatlon fe85 2022 2021 Fees payable to the independent examiner for.. Indèpendent examinalion of the financial statements 1.254 1,140 Staff costs The total slaff costs and err¢*loyee benefits for thé reporting period are analysed as follows.. 2022 2021 Wages and salaries Employer contributi￿$ to pens•)n plans 39,283 39,567 12 The Carnegie Herne Hill Community Trust CIO Notes to the Financial Statements (conthugrf) Year ended 31 December 2022 Staff costs (conthuedj Tho average head ryJunt of employees during the year was 3 (2021.. Nill. No employee received empbyee beneffts of mre than £60,IXa) during the year {2021'. Nil}. 10. Trustse remuneration and expenses No remuneration or expenses or other benefrts from 8mployment wth the ch8ftLy or a Telated entity were re￿Ned by the Iruslees. 11. Tanglble fixed assets Plant and machlnery Cost At 1 January 2022 Additions 4,999 At 31 December 2022 4,999 Depreciation Al 1 January 2022 Charge for the year At 31 December 2022 667 Carying amount At 31 Decembei 2022 4,332 Al 31 December 2021 12. Debtors 2022 2021 Trade debtors 44.696 788 13. Crodltots: amounts falling due wlthln one year 2022 2021 Trade Gredi(ors A¢¢ruals and deferred S￿) Social security and othertaxe5 Other creditors 11,254 635 114 1,141 12,014 1,141 13 The Carnegle Herne Hill Community Trust cio Notes to the Financial Statements {conlinwd) Year endod 31 December 2022 14. Deforrod Income 2022 2021 AnKJunl deterred in year 10,OCN) 15. Pensions and other posl retlrement baneflts Definod contrlbutlon plans The amount recognised in income or expenditure as an expens@ in r8lalion trj defined contribution plans was £284 (2021.. £Nil}. 16. Analy818 of charltable funds Unrestricted fvnds At 31 Dgcombg r 2022 1 January 20 Incom8 Expenditur8 General funds London BotDugh of Lambeth Endowment 17,269 31,393 49,082 35.000 1.706 15,4981 (29,6171 11,215 (36,3301 60,853 36,776 491 48,662 85.788 98,120 At 1 January 20 21 31 December 2021 Income Expenditure General fijnds London Borough of Lambeth Endowment 2,918 16.304 35.000 {1,953) {3,607} 17,269 31,393 2.918 51.304 (5.560) 48,662 14 The Carnegie Herne Hill Community Trust CIO Notes to th• Financial Statements (¢t)nt￿l￿*￿) Year ended 31 December 2022 16. Anatysls of charltabl8 funds (￿￿11￿￿ Restrfcted funds Al 1 January 20 At 31 Decembe r 2022 Income Expenditure Awards for All >Op Borough London Catalyst The Lorklon Communty 4,357 15,S65 2,000 5,000 (4,3571 (15,565) (2,000) (e68) (22.5901 4,332 26,922 4,332 1 January 20 21 31 De￿mber 2021 Income Expenditure Awards forAII Co-op Borough London Calalysl The London Communty 5,488 18,412 11,131} 12,847} 4,357 15,565 2,000 5,000 26,922 2,000 5,000 7,000 23,900 13.9781 17. Analysls of net assots between funds Unrestricted Funds Restricted Total Funds Funds 2022 Tangible ftxed 8ssets Current assets Creditors less than 1 year Net assets 4.332 4,332 110,134 {12,0141 102,452 110,134 112.0141 98,120 4,332 Unrestrthd Funds Reslricte(l Total Funds Funds 2021 Tangible fixed assets Current assets Creditors 18SS than 1 year Net assets 48,662 26,922 75,584 48,662 26,922 75,584 15 Our ref: JR/GT 05 October 2023 The Directors Carnegie Herne Hill Community Trust Carnegie Library 192 Herne Hill Road Herne Hill LONDON SE24 0AG Dear Sirs We are pleased to be appointed as your accountants. The purpose of this schedule and the Standard Terms of Business is to set out the basis on which we are to act as accountant and advisors to the charity in respect of the independent examination you have requested us to carry out and to clarify our respective responsibilities in respect of that work. ## **1 Your responsibilities as trustees/directors** - 1.1 Our independent examination will be conducted on the basis that you acknowledge and understand that you have responsibility: - (a) to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for that period. As directors/trustees, you must not approve the financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the charitable company; - (b) in preparing those financial statements, to: - (i) select suitable accounting policies and then apply them consistently; (ii) make judgments and accounting estimates that are reasonable and prudent; and (iii) prepare the financial statements on the going concern basis, considering in particular the charitable company’s ability to continue in operation for at least twelve months from the date when the financial statements are expected to be approved, unless it is inappropriate to presume that the charitable company will continue in operation; - (b) for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the relevant SORP, the Companies Act 2006 (CA 2006) and applicable accounting standards. You are also responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error; and Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Walter Hunter is the trading name of Walter Hunter & Co Limited. Registered in England and Wales No. 7807319. Registered office 24 Bridge Street, Newport, Gwent, NP20 4SF (d) for safeguarding the assets of the charitable company and hence for taking reasonable steps to ensure the charitable company’s activities are conducted honestly and for the prevention and detection of fraud and other irregularities. - 1.2 As trustees of the charitable company, you have a duty under CA 2006 to prepare a directors’ report for each financial year and also an annual report complying in its form and content with regulations made under the Charities Act 2011 (ChA 2011). You should also have regard to the relevant Statement of Recommended Practice Accounting and Reporting by Charities (SORP), published jointly by the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator, and any subsequent amendments or variations to this statement. - 1.3 In addition to the general duties of directors specified in CA 2006 s. 170-177, you are responsible for ensuring that the charitable company complies with laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur. - 1.4 You are also responsible for determining whether, in respect of the year, the charity meets the conditions for exemption from an audit set out in the ChA 2011 and the CA 2006, namely that: - (a) no notice has been received from the Charity Commission requiring an audit; - (b) no notice has been received from the members requiring an audit; - (c) the charity’s gross income in the current year is not more than £500,000 for years ending before 31 March 2015, or £1m for years ending on or after this date; - (d) where gross income exceeds £250,000, the charity’s gross assets do not exceed £3.26m; and - (e) the charity is not ineligible for audit exemption under the CA 2006. - 1.5 The exemption from audit is available only if you, as director/trustees, sign a declaration on the balance sheet stating that: - (a) for the year in question, the company is eligible to take advantage of the audit exemptions; - (b) the members have not required the company to obtain an audit of its financial statements for the year in accordance with CA 2006, s. 476; and - (c) you acknowledge your obligations for complying with the requirements of CA 2006 with respect to accounting records and preparation of financial statements. - 1.6 The availability of the exemption from an audit of the financial statements is conditional upon your causing an independent examiners’ report to be prepared in respect of the financial statements in accordance with the ChA 2011, s. 145. You are responsible for deciding whether that report shall be made and for appointing us as reporting accountants to make that report to the trustees of the charity. - 1.7 If gross income falls to £25,000 or less for the year, then, provided the other criteria set out above are met, you will need neither an audit nor an independent examiner’s report. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Walter Hunter is the trading name of Walter Hunter & Co Limited. Registered in England and Wales No. 7807319. Registered office 24 Bridge Street, Newport, Gwent, NP20 4SF - 1.8 You have undertaken to make available to us, as and when required, all the charity’s accounting records and related financial information, including minutes of management and members’ meetings, necessary to carry out our work. You will make full disclosure to us of all relevant information. ## **2 Our responsibilities as independent examiners** - 2.1 We shall plan our work on the basis that an independent examiner’s report is required for the year, unless you inform us in writing that either: - (a) the charity requires an audit of the financial statements; or - (b) the charity requires neither an audit nor an independent examiner’s report. - 2.2 Should you instruct us to carry out an audit, then the terms of that assignment will be dealt with in a new engagement letter. Should you inform us that the charity requires neither an audit nor an independent examiner’s report, then we shall have no responsibilities to the charity, except those specifically agreed upon between us in respect of other professional services. - 2.3 As independent examiners, we have a statutory responsibility to report to the members of the charity whether, in our opinion, there is reasonable cause to believe that, in any material respect: - (a) adequate accounting records have not been kept, contrary to the requirements of the CA 2006; - (b) the financial statements do not agree with those accounting records; or - (c) the financial statements do not comply with any of the accounting requirements specified in the Charities (Accounts and Reports) Regulations 2008 (SI 2008/629), Regulation 4 (or 5 for common investment funds or common deposit funds) and applicable accounting standards, except to the extent necessary to show a true and fair view. - 2.4 Should our work indicate that the charity is not entitled to exemption from an audit of the financial statements then we will inform you. In such circumstances, we will not issue any report and will withdraw from the engagement to prepare an independent examiner’s report, notifying you in writing of the reasons. In these circumstances, if appropriate, we will discuss with you the possibility of appointing us as auditors. - 2.5 We have a professional responsibility not to allow our name to be associated with financial statements that are, or may be, misleading. Therefore, although we are not required to search for such matters, should we become aware, for any reason, that the financial statements are, or may be, misleading, if the matter cannot be adequately dealt with by means of qualifying our opinion (or by other appropriate modifications of the report), we will not issue any report. In such circumstances, we will withdraw from the engagement, and will notify you in writing of the reasons. In these circumstances you agree that we have a right to invoice you for our time spent examining the financial statements and for time spent on any other work that is not completed as a result of our resignation. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Walter Hunter is the trading name of Walter Hunter & Co Limited. Registered in England and Wales No. 7807319. Registered office 24 Bridge Street, Newport, Gwent, NP20 4SF - 2.6 Under the ChA 2011, s. 156(2), we have a statutory duty to make a written report to the Charity Commission on such matters (which relates to the activities or affairs of the charity or of any connected institution or body) of which we become aware during the course of our examination and which we have reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its functions under the ChA 2011, s. 156(3). In addition under s. 156(4) if we become aware of any matter which does not require to be reported under s. 156(2) but which we have reasonable cause to believe is likely to be relevant for the purposes of the exercise by the Charity Commission of any of its functions then we may make a report on the matter to the Commission. We may have to make this report without your knowledge and consent and we cannot undertake to you to fetter this discretion in any manner. ## **Scope of independent examination** - 2.7 Our work as independent examiners will be carried out in accordance with guidance for such engagements issued by the Charity Commission. It will consist of comparing the financial statements with the accounting records kept by the charity, and making such limited enquiries of the trustees and staff of the charity as we may consider necessary for the purpose of our report. - 2.8 As part of our normal procedures, we may request you to provide written confirmation of any information or explanations provided by you orally during the course of our work. - 2.9 Our work as independent examiners will not be an audit of the financial statements in accordance with International Standards on Auditing (UK). Accordingly, we will not obtain any independent evidence relating to entries in the accounting records, or to the amounts or disclosures in the financial statements. Consequently our work as independent examiners will not provide any assurance that the accounting records or the financial statements are free from material misstatement whether caused by fraud, other irregularity or error. - 2.10 Because we will not carry out an audit, nor otherwise confirm the accuracy or reasonableness of the accounting records maintained by the charity, we will be unable to provide any assurance as to whether the financial statements that we prepare from those records give a true and fair view. - **3 Limitation of liability** - 3.1 We have discussed with you the extent of our liability to you in respect of the professional services described within this engagement letter (the professional services). - 3.2 Having considered both your circumstances and our own, we have reached a mutual agreement that £50,000 represents a fair maximum limit to our liability as a firm in the event of any one claim arising in respect of the professional services. This maximum total liability includes any claims for loss or damage, however caused, whether in respect of breaches of contract, tort (including negligence) or otherwise in respect of the professional services and shall also include all other related costs including legal fees, interest, etc. - 3.3 We acknowledge that the limit in respect of our total aggregate liability will not apply to any acts, omissions or representations that are in any way criminal, dishonest or fraudulent on the part of the firm, its principals or employees. ## **4 Agreement of terms** - 4.1 This engagement will start with your accounts period ending on 31 December 2022. - 4.2 We will not be responsible for earlier years. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Walter Hunter is the trading name of Walter Hunter & Co Limited. Registered in England and Wales No. 7807319. Registered office 24 Bridge Street, Newport, Gwent, NP20 4SF - 4.3 You or we may agree to vary or terminate our authority to act on your behalf at any time without penalty. Notice of variation or termination must be given in writing. - 4.4 The terms set out in this letter and our Standard Terms of Business available to view on our website at www.walterhunter.com (last revised 2023) shall take effect immediately upon your countersigning this letter and returning it to us. If we are instructed to start work before receiving a signed copy of this letter we will treat that as acceptance of all the terms of this engagement letter, unless we hear from you to the contrary within 30 days of you giving that instruction. - 4.5 Once it has been agreed, this letter and the Standard Terms of Business available to view on our website at www.walterhunter.com will remain effective until they are replaced. We shall be grateful if you could confirm your agreement to these terms by signing the enclosed copy of this letter and returning it to us immediately. If this letter and the terms of business are not in accordance with your understanding of our terms of appointment, please let us know. Yours sincerely, ## _Walter Hunter & Co Ltd_ I confirm that I have read and understood the contents of this letter and the attached Standard Terms of Business and agree that they accurately reflect the services that I have instructed you to provide. Signed ..................................... Dated 05/10/2023 ## **For and on behalf of Carnegie Herne Hill Community Trust** Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Walter Hunter is the trading name of Walter Hunter & Co Limited. Registered in England and Wales No. 7807319. Registered office 24 Bridge Street, Newport, Gwent, NP20 4SF