**Charity Registration No. 1170902**
## **THE LONDON READING CENTRE**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2020**
## **THE LONDON READING CENTRE**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr A J Halpert Mr M S Geldzahler Mrs B G Krausz **Charity number** 1170902 **Principal address** 8 Craven Park London N15 6AB **Independent examiner** J Silver FCCA Precision Ltd 32 Castlewood Road N16 6DW
## **THE LONDON READING CENTRE**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1|
|Independent examiner's report|2|
|Statement of financial activities|3|
|Balance sheet|4|
|Notes to the financial statements|5 - 10|
**TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **THE LONDON READING CENTRE**
The trustees present their report and financial statements for the year ended 31 July 2020.
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 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)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The charity's objects are the advancement of education in general and particularly for those under the age of 18, and to promote any other exclusively charitable objects and purposes as the trustees see fit, provided they are regarded as charitable by the law of England & Wales.
The charity achieves these objectives primarily through operating, a Lending Library specialising in Cultural Texts, providing a reading software system to educational institutions, and grants to charities whose charitable objects are in line with the charity's objects.
The charity ensures that even those in difficult financial situations are able to use the software system by offering reduced fees and where required waiving the fee all together.
The trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the charity's aims and objectives and in planning future activities.
## **Achievements and performance**
In the year under review the charity generated income of £ 28,144 (201 9 : £ 24,481 ) and incurred expenses of £27,269 (2019: £22,069) .
## **Financial review**
The charity's statement of financial activities shows total free reserves of £ 13,238 as at the 31 July 2020 . The trustees are satisfied with the results for the year .
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 which will not impinge on its ability to support Charitable institutions . 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 trust governed by its trust deed dated 5 July 2016, and is a registered charity.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr A J Halpert Mr M S Geldzahler Mrs B G Krausz
The power to appoint new trustees is vested in the current board. It is not the intention of the trustees of the charity to appoint any trustees. Should the situation change in the future, the trustees will apply suitable induction and training procedures. The trustees administer the day to day running of the charity. None of the trustees has any beneficial interest in th e charity.
The trustees' r eport was approved by the Board of Trustees.
..............................
## **Mr A J Halpert**
Trustee Dated: .........................
- 1 -
## **THE LONDON READING CENTRE**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE LONDON READING CENTRE**
I report to the trustees on my examination of the financial statements of The London Reading Centre (the charity) for the year ended 31 July 2020.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
J Silver FCCA Precision Ltd 32 Castlewood Road N16 6DW
Dated: .........................
- 2 -
## **THE LONDON READING CENTRE**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 JULY 2020**_
|**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Donations and legacies
**3**
28,144
**Expenditure on:**
Charitable activities
**4**
27,269
**Net income for the year/**
**Net movement in funds**
875
Fund balances at 1 August 2019
12,363
**Fund balances at 31 July 2020**
13,238|Total
2019
**£**
24,481
22,069
2,412
9,951
12,363|
|---|---|
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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## **THE LONDON READING CENTRE**
## **BALANCE SHEET**
## _**AS AT 31 JULY 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**9**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**11**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2020**
**£**
14,956
4,932
19,888
(8,998)|**£**
2,348
10,890
13,238
13,238
13,238|**2019**
**£**
9,459
73
9,532
(300)|**£**
3,131
9,232
12,363
12,363
12,363|
|---|---|---|---|---|
The financial statements were approved by the Trustees on .........................
..............................
Mr A J Halpert **Trustee**
- 4 -
## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **1 Accounting policies**
## **Charity information**
The London Reading Centre is a charitable trust registered in England & Wales.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). 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 applying FRS 102 Update Bulletin 1 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. 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 based upon the continued financial support from the community. 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 unless the funds have been designated for other purposes.
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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **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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## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **1 Accounting policies**
## **(Continued)**
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
## **1.5 Resources expended**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% RBM
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
## **1.8 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.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**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.
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## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**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.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **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 preparation of the se financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.
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## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **3 Donations and legacies**
|**Unrestricted**
**funds**
**2020**
**£**
Donations and gifts
15,160
Government Grants
1,484
Membership fees
11,500
28,144|Total
2019
£
-
-
24,481
24,481|
|---|---|
The government grant above relates to an amount the charity received under the Coronavirus Job Retention Scheme.
## **4 Charitable activities**
||**Charitable**|
**Charitable**|
|---|---|---|
||**Expenditure**|
**Expenditure**|
||**2020**|
**2019**|
||**£**|
**£**|
|Staff costs|12,687|
14,264|
|Depreciation and impairment|783|
1,043|
|Charitable expenditure|10,563|
6,043|
||24,033|
21,350|
|Grant funding of activities (see note 5)|1,690|
-|
|Share of governance costs (see note 6)|1,546|
719|
||27,269|
22,069|
|**Grants payable**|||
||**Charitable**|
2019|
||**Expenditure**||
||**2020**||
||**£**|
£|
|Grants to institutions:|||
|Other|1,690|
-|
## **5 Grants payable**
-
- 8 -
## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **6 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Accountancy
-
600
Legal and professional
-
946
Bank charges
-
-
-
1,546
Analysed between
Charitable activities
-
1,546|**2020**
**£**
600
946
-
1,546
1,546|2019
£
300
-
419
719
719|
|---|---|---|
Governance costs includes a payment to the independent examiner of £ 600 for accountancy 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**
## **Number of employees**
The average monthly number of employees during the year was:
||**2020**|**2019**|
|---|---|---|
||**Number**|**Number**|
||2|2|
|**Employment costs**|**2020**|**2019**|
||**£**|**£**|
|Wages and salaries|12,641|14,264|
|Other pension costs|46|-|
||12,687|14,264|
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## **THE LONDON READING CENTRE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2020**_
## **9 Tangible fixed assets**
|**Cost**
At 1 August 2019
At 31 July 2020
**Depreciation and impairment**
At 1 August 2019
Depreciation charged in the year
At 31 July 2020
**Carrying amount**
At 31 July 2020
At 31 July 2019
**10**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**11**
**Creditors: amounts falling due within one year**
Other creditors
Accruals and deferred income|**Fixtures and fittings**
**£**
5,398
5,398
2,267
783
3,050
2,348
3,131
**2020**
**2019**
**£**
**£**
14,956
9,459
**2020**
**2019**
**£**
**£**
8,398
-
600
300
8,998
300|
|---|---|
## **12 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
- 10 -