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← The London Reading Centre

2024-07-31-accounts

Charity registration number 1170902

THE LONDON READING CENTRE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

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 2024

The trustees present their annual report and financial statements for the year ended 31 July 2024.

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 35% 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" is a highly researched and devolped programme to master the basic yet fundimental skills of reading.

The charity partnered with local schools to provide the programmes.

In the year under review the charity generated income of £89,827 (2023: £81,007) and incurred expenses of £85,300 (2023: £97,006).

Financial review

The charity's statement of financial activities shows a surplus of movement in funds this year of £4,527 which has been used to reduce the deficit, which stands at £7,761 at the 31 July 2024. The restricted reserves were £1,645. The trustees have furthered their fundraising efforts post year end to meet the reserves policy below.

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.

THE LONDON READING CENTRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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 the charity.

The trustees' report was approved by the Board of Trustees.

..............................

Mr A J Halpert

Trustee Dated: .........................

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 2024.

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:

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: .........................

THE LONDON READING CENTRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2024

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
Notes £ £ £ £ £ £
Income from:
Donations and
legacies 3 83,827 6,000 89,827 80,757 250 81,007
Expenditure on:
Raising funds 4 11,613 - 11,613 1,238 - 1,238
Charitable activities 5 69,332 4,355 73,687 92,518 3,250 95,768
Total expenditure 80,945 4,355 85,300 93,756 3,250 97,006
Net income/(expenditure)
for the year/
Net movement in funds 2,882 1,645 4,527 (12,999) (3,000) (15,999)
Fund balances at 1 August
2023 (12,288) - (12,288) 711 3,000 3,711
Fund balances at 31 July
2024 (9,406) 1,645 (7,761) (12,288) - (12,288)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE LONDON READING CENTRE

BALANCE SHEET

AS AT 31 JULY 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 11 5,309 4,892
Current assets
Cash at bank and in hand 2,997 455
Creditors: amounts falling due within
one year 12 (16,067) (17,635)
Net current liabilities (13,070) (17,180)
Total assets less current liabilities (7,761) (12,288)
Income funds
Restricted funds 1,645 -
Unrestricted funds (9,406) (12,288)
(7,761) (12,288)

The financial statements were approved by the Trustees on .........................

.............................. Mr A J Halpert Trustee

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

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 amounts 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 notwithstanding the current deficit 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.

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.

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

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 payments 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.

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

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 these 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
2024
2024
£
£
Donations and gifts
20,451
-
Grants
28,000
6,000
Membership fees
35,376
-
83,827
6,000		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
20,451
30,271
-
34,000
7,820
250
35,376
42,666
-
89,827
80,757
250		 Total
2023
£
30,271
8,070
42,666
81,007

4 Raising funds

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising and publicity
Staging fundraising events 10,278 -
Advertising 1,335 -
Other fundraising costs - 1,238
Fundraising and publicity 11,613 1,238

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

5 Charitable activities

Charitable
Charitable
expenditure expenditure
2024 2023
£ £
Staff costs 31,965 42,369
Depreciation and impairment 1,770 1,631
Reading Programmes 15,981 30,426
Other charitable activities 7,244 7,114
56,960 81,540
Grant funding of activities (see note 6) 3,983 627
Share of support costs (see note 7) 9,492 8,859
Share of governance costs (see note 7) 3,252 4,742
73,687 95,768
Analysis by fund
Unrestricted funds 69,332 92,518
Restricted funds 4,355 3,250
73,687 95,768
For the year ended 31 July 2023
Unrestricted funds 92,518
Restricted funds 3,250
95,768

6 Grants payable

Charitable Charitable
expenditure expenditure
2024 2023
£ £
Grants to institutions:
Other 3,441 627
Grants to individuals 542 -
3,983 627

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

7 Support costs

Support
costs
Governance
costs
£
£
General Administration
costs
9,492
-
Accountancy
-
2,400
Legal and professional
-
804
Bank charges
-
48
9,492
3,252
Analysed between
Charitable activities
9,492
3,252		 2024
Support
costs
Governance
costs
£
£
£
9,492
8,859
-
2,400
-
2,000
804
-
2,706
48
-
36
12,744
8,859
4,742
12,744
8,859
4,742		 2023
£
8,859
2,000
2,706
36
13,601
13,601

Governance costs includes a payment to the independent examiner of £2,400 for accountancy fees and £804 for other services.

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:

2024 2023
Number Number
5 7
Employment costs 2024 2023
£ £
Wages and salaries 31,962 42,347
Other pension costs 3 22
31,965 42,369

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

11 Tangible fixed assets

Fixtures and
fittings
Computers
£
£
Cost
At 1 August 2023
8,334
5,000
Additions
280
1,907
At 31 July 2024
8,614
6,907
Depreciation and impairment
At 1 August 2023
5,692
2,750
Depreciation charged in the year
731
1,039
At 31 July 2024
6,423
3,789
Carrying amount
At 31 July 2024
2,191
3,118
At 31 July 2023
2,642
2,250		 Total
£
13,334
2,187
15,521
8,442
1,770
10,212
5,309
4,892

12 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2024
£
585
12,738
2,744
16,067		 2023
£
1,517
14,118
2,000
17,635

13 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £3 (2023 - £22).

THE LONDON READING CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

14 Analysis of net assets between funds Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Fund balances at 31
July 2024 are
represented by:
Tangible assets 3,621 1,688 5,309 2,642 2,250 4,892
Current assets/(liabilities) (14,715) 1,645 (13,070) (17,180) - (17,180)
(11,094) 3,333 (7,761) (14,538) 2,250 (12,288)

15 Related party transactions

The London Reading Centre occupied rent free premises provided by one of the trustees of the charity.

There were no disclosable related party transactions during the year (2023 - none), other than the above.