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Charity Registration No. 1168131
TRANSFORM SOUTHWARK
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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TRANSFORM SOUTHWARK
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Obafemi Omisade Chris Price Lincoln Serwanga Philip Stokes
Charity number 1168131 Registered office The Wells Community Church Wells Way London SE5 7SY Accountant Richard F Hopper 4 Rhodfa Clawdd Offa Denbigh Denbighshire LL16 4RJ
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TRANSFORM SOUTHWARK
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Accountant's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 10 |
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TRANSFORM SOUTHWARK
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their annual report and financial statements for the year ended 31 March 2021.
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 constitution , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The charity's objects are to advance the Christian religion for the benefit of the public, primarily through partnering with, supporting and facilitating unity and action among Southwark churches and faith-based organisations.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Details of the charity's achievements during the year are set out in a separate annual report.
Financial review
The income and expenditure for the year and the financial position at the end of the year are summarised in the attached accounts. The trustees consider the financial position to be satisfactory.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a c haritable incorporated organisation .
The trustees who served during the year and up to the date of signature of the financial statements were: Obafemi Omisade
Chris Price Lincoln Serwanga Philip Stokes
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The charity is run by the trustees who are appointed by the other trustees or by the members in general meeting from representatives of churches and other supporting organisations in the London Borough of Southwark.
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TRANSFORM SOUTHWARK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
The trustees' r eport was approved by the Board of Trustees.
.............................. Philip Stokes Trustee 08/02/2022 Date: .............................................
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TRANSFORM SOUTHWARK
CHARTERED ACCOUNTANT'S REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED FINANCIAL STATEMENTS OF TRANSFORM SOUTHWARK FOR THE YEAR ENDED 31 MARCH 2018
In order to assist you to fulfil your duties under the Charities Act 2011, I have prepared for your approval the financial statements of Transform Southwark for the year ended 31 March 2021, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given me .
As a practising member firm of the Institute of Chartered Accountants in England and Wales, I a m subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/ regulations-standards-and-guidance/
This report is made to the charity's trustees, as a body, in accordance with the terms of my engagement letter dated 22 February 2018. My work has been undertaken solely to prepare for your approval the financial statements of Transform Southwark and state those matters that I have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than Transform Southwark and the charity's trustees as a body, for my work or for this report.
It is your duty to ensure that Transform Southwark has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Transform Southwark. You consider that Transform Southwark is exempt from the statutory audit requirement for the year , and is not required to obtain an independent examiner's report.}
I have not been instructed to carry out an audit or a review of the financial statements of Transform Southwark. For this reason, I have not verified the accuracy or completeness of the accounting records or information and explanations you have given to me and I do not, therefore, express any opinion on the statutory financial statements.
07/02/2022 Richard F Hopper .........................
Chartered Accountant
4 Rhodfa Clawdd Offa Denbigh Denbighshire LL16 4RJ
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TRANSFORM SOUTHWARK
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 3 2,550 2,095 Expenditure on: Charitable activities 4 369 2,122 Net income/(expenditure) for the year/ Net movement in funds 2,181 (27) Fund balances at 1 April 2020 8,881 4,540 Fund balances at 31 March 2021 11,062 4,513 |
Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 4,645 2,400 6,841 2,491 1,517 2,301 2,154 883 4,540 13,421 7,998 - 15,575 8,881 4,540 |
Total 2020 £ 9,241 3,818 5,423 7,998 13,421 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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TRANSFORM SOUTHWARK
BALANCE SHEET
AS AT 31 MARCH 2021
| 2021 Notes £ Current assets Cash at bank and in hand 16,769 Creditors: amounts falling due within one year 9 (1,194) Net current assets Income funds Restricted funds 10 Unrestricted funds The financial statements were approved by the Trustees on ........................ .............................. .............................. Chris Price Philip Stokes Trustee Trustee 13/01/2022 |
£ 15,575 4,513 11,062 15,575 . |
2020 £ 14,271 (850) |
£ 13,421 4,540 8,881 13,421 |
|---|---|---|---|
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TRANSFORM SOUTHWARK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
Transform Southwark is a charitable incorporated organisation
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” (“FRS 102”) 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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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TRANSFORM SOUTHWARK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is charged in the accounts at the time when a liability to make payment is incurred.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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TRANSFORM SOUTHWARK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
3 Donations and legacies
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| funds | funds | funds | funds | |||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Donations and gifts | 2,550 | 2,095 | 4,645 | 2,400 | 6,841 | 9,241 |
4 Charitable activities
| General | General | ||
|---|---|---|---|
| church | church | ||
| projects | projects | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Direct project costs | 2,122 | 1,941 | |
| Grant funding of activities (see note 5) | - | 900 | |
| Share of support costs (see note 6) | 69 | 677 | |
| Share of governance costs (see note 6) | 300 | 300 | |
| 2,491 | 3,818 | ||
| Analysis by fund | |||
| Unrestricted funds | 369 | 1,517 | |
| Restricted funds | 2,122 | 2,301 | |
| 2,491 | 3,818 | ||
| 5 | Grants payable |
| General | |
|---|---|
| church | |
| projects | |
| 2020 | |
| £ | |
| Grants to institutions: | |
| Other | 900 |
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TRANSFORM SOUTHWARK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 6 Support costs Support costs Governance costs £ £ Administrative expenses 69 - Accountancy - 300 69 300 Analysed between Charitable activities 69 300 |
2021 Support costs Governance costs £ £ £ 69 677 - 300 - 300 369 677 300 369 677 300 |
2020 £ 677 300 977 977 |
|---|---|---|
Governance costs includes payments to the independent accountant of £ 300 (2020- £ 300 ) for a ccountancy fees
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2021 | 2020 | ||
| Number | Number | ||
| Total | - | - | |
| There were no employees whose annual remuneration was more than £60,000. | |||
| 9 | Creditors: amounts falling due within one year | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Accruals and deferred income | 1,194 | 850 |
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
10 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement | in funds | Movement | in funds | ||||
|---|---|---|---|---|---|---|---|
| Incoming | Resources | Balance at | Incoming |
Resources | Balance at | ||
| resources | expended | 1 April 2020 | resources |
expended | 31 |
March 2021 | |
| £ | £ | £ | £ |
£ | £ | ||
| Street Pastors 6,841 |
(2,301) | 4,540 | 2,095 |
(2,122) | 4,513 | ||
| 11 | Analysis of net assets between funds | ||||||
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | ||
| funds | funds | funds | funds | ||||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | ||
| £ | £ | £ | £ | £ | £ | ||
| Fund balances at 31 | |||||||
| March 2021 are | |||||||
| represented by: | |||||||
| Current assets/ | |||||||
| (liabilities) 11,062 |
4,513 | 15,575 | 8,881 | 4,540 | 13,421 | ||
| 11,062 | 4,513 | 15,575 | 8,881 | 4,540 | 13,421 |
12 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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