Charity Registration No. 1170902
THE LONDON READING CENTRE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
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 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
THE LONDON READING CENTRE
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 JULY 2022
The trustees present their annual report and financial statements for the year ended 31 July 2022.
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) " (effective 1 January 2019 ).
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 London Reading Centre targets vulnerable young people who are disadvantaged by low income, dysfunction, social exclusion, various learning and emotional disabilities, giving them the support they need, to flourish in school and beyond.
The charity achieves these objectives primarily through operating, a Lending Library specialising in Cultural Texts, providing a reading software system to educational institutions, and various reading programmes to address literacy issues . 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 .
In response to the needs of the community, the organisation has evolved in the last year, and we now use art, creativity, and media as tools to enable disadvantaged children to thrive and develop in all areas.
Based in Haringey, where 40% of children in the borough live in households of poverty, we aim to make a difference by providing creative outlets so that the children can grow despite their challenges. We believe that core skills, development of creativity, and stable, nurturing relationships are essential to a healthy childhood and will subsequently impact life chances. We give our youth opportunities they wouldn’t have access to otherwise, allowing them to develop, grow and shine.
The charity also makes occasional grants to charities whose charitable objects are in line with the charity's
objects.
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
During the last year the charity ran various programmes which were made possible with the help of our generous sponsors.
"Read with me" and "Reading Recovery" both highly researched and devolped programmes to master the basic yet fundimental skills of reading. The charity partnered with local schools to provide the programmes.
A project "Stronger together" providing therapy sessions for children aged 8 - 12 years old.
In the year under review the charity generated income of £ 145,117 (2021: £101,111) and incurred expenses of £ 153,517 (2021: £98,871).
Financial review
The charity's statement of financial activities shows total reserves of £ 3,711 as at the 31 July 2022, of which £3,000 are restricted reserves . The trustees are satisfied with the results for the year .
The charity’s aspirational reserves policy is to maintain reserves comprising three months of operational cost in unrestricted funds. Trustees believe maintenance of reserves at this level will ensure continuous operation in the face of unanticipated developments or fluctuations in funding.
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THE LONDON READING CENTRE
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
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: .........................
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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 2022.
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:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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: .........................
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THE LONDON READING CENTRE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 130,087 15,030 Expenditure on: Raising funds 4 3,367 - Charitable activities 5 137,347 16,170 Total resources expended 140,714 16,170 Net (expenditure)/income for the year/ Net movement in funds (10,627) (1,140) Fund balances at 1 August 2021 11,338 4,140 Fund balances at 31 July 2022 711 3,000 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 145,117 69,344 31,767 3,367 - - 153,517 71,244 27,627 156,884 71,244 27,627 (11,767) (1,900) 4,140 15,478 13,238 - 3,711 11,338 4,140 |
Total 2021 £ 101,111 - 98,871 98,871 2,240 13,238 15,478 |
|---|---|---|
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 2022
| Notes Fixed assets Tangible assets 10 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current (liabilities)/assets Total assets less current liabilities Income funds Restricted funds Unrestricted funds |
2022 £ 1,092 (3,904) |
£ 6,523 (2,812) 3,711 3,000 711 3,711 |
2021 £ 13,663 (2,946) |
£ 4,761 10,717 15,478 4,140 11,338 15,478 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on .........................
.............................. Mr A J Halpert Trustee
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022
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, 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. 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.
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 Income
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.
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
1 Accounting policies
(Continued)
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.
1.5 Expenditure
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 Computers 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 the statement of financial activities .
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 ) .
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.
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.
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.9 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.
1.10 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.
3 Donations and legacies
| Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 95,165 - Grants - 15,030 Membership fees 34,922 - 130,087 15,030 |
TotalUnrestricted Restricted funds funds 2022 2021 2021 £ £ £ 95,165 45,910 - 15,030 911 31,767 34,922 22,523 - 145,117 69,344 31,767 |
Total 2021 £ 45,910 32,678 22,523 101,111 |
|---|---|---|
4 Raising funds
| Unrestricted | Total | |
|---|---|---|
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Fundraising and publicity | ||
| Other fundraising costs | 3,367 | - |
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
5 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| expenditure | expenditure |
|
| 2022 | 2021 |
|
| £ | £ |
|
| Staff costs | 41,656 | 32,806 |
| Depreciation and impairment | 2,174 | 1,587 |
| Reading Programmes | 61,360 | 59,941 |
| Other charitable activities | 24,294 | - |
| 129,484 | 94,334 |
|
| Grant funding of activities (see note 6) | 3,500 | 1,420 |
| Share of support costs (see note 7) | 17,200 | - |
| Share of governance costs (see note 7) | 3,333 | 3,117 |
| 153,517 | 98,871 |
|
| Analysis by fund | ||
| Unrestricted funds | 137,347 | 71,244 |
| Restricted funds | 16,170 | 27,627 |
| 153,517 | 98,871 |
|
| For the year ended 31 July 2021 | ||
| Unrestricted funds | 71,244 | |
| Restricted funds | 27,627 | |
| 98,871 |
6 Grants payable
| Charitable | Charitable | |
|---|---|---|
| expenditure | expenditure | |
| 2022 | 2021 | |
| £ | £ | |
| Grants to institutions: | ||
| Other | 3,500 | 1,420 |
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
7 Support costs
| Support costs Governance costs £ £ General Administration costs 17,200 - Accountancy - 2,040 Legal and professional - 1,293 17,200 3,333 Analysed between Charitable activities 17,200 3,333 |
2022 Support costs Governance costs £ £ £ 17,200 - - 2,040 - 1,080 1,293 - 2,037 20,533 - 3,117 20,533 - 3,117 |
2021 £ - 1,080 2,037 3,117 3,117 |
|---|---|---|
Governance costs includes a payment to the independent examiner of £ 2,040 for accountancy fees.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| 7 | 6 | |
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 41,577 | 32,725 |
| Other pension costs | 79 | 81 |
| 41,656 | 32,806 |
There were no employees whose annual remuneration was more than £60,000.
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
10 Tangible fixed assets
| Fixtures and fittings Computers £ £ Cost At 1 August 2021 5,398 4,000 Additions 2,936 1,000 At 31 July 2022 8,334 5,000 Depreciation and impairment At 1 August 2021 4,811 2,000 At 31 July 2022 4,811 2,000 Carrying amount At 31 July 2022 3,523 3,000 At 31 July 2021 1,761 3,000 |
Total £ 9,398 3,936 13,334 6,811 6,811 6,523 4,761 |
|---|---|
11 Creditors: amounts falling due within one year
| Other taxation and social security Trade creditors Other creditors Accruals and deferred income 12 Analysis of net assets between funds Unrestricted funds Restricted funds 2022 2022 £ £ Fund balances at 31 July 2022 are represented by: Tangible assets 3,523 3,000 Current assets/ (liabilities) (2,812) - 711 3,000 |
2022 £ 1,723 - 1,491 690 3,904 TotalUnrestricted funds Restricted funds 2022 2021 2021 £ £ £ 6,523 1,761 3,000 (2,812) 9,577 1,140 3,711 11,338 4,140 |
2021 £ 14 540 1,702 690 2,946 Total 2021 £ 4,761 10,717 15,478 |
|---|---|---|
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THE LONDON READING CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
13 Related party transactions
There were no disclosable related party transactions during the year (2021 - none) .
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