2020-10-31-accounts

Charity Registration No. 1171098

HQR LONDON CHARITABLE FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

HQR LONDON CHARITABLE FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr D Size Mr A Crispin Mr C J C Butler

Charity number

1171098

Independent examiner

Simon Toghill 5 Beauchamp Court Victors Way Barnet London EN5 5TZ

HQR LONDON CHARITABLE FOUNDATION

CONTENTS

	Page
Trustees' Annual Report	1 - 2
Independent examiner's report	3
Statement of financial activities	4
Statement of financial position	5
Statement of cash flows	6
Notes to the financial statements	7 - 13

HQR LONDON CHARITABLE FOUNDATION

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 OCTOBER 2020

The Trustees present their report and financial statements for the year ended 31 October 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 HQR London'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 was established to advance such charitable purposes, for the public benefit, as the trustees see fit, by making grants.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities HQR London should undertake.

Summary of main activities

In support of this objective, the charity normally holds an annual summer ball at the Grosvenor House Hotel. However, due to the COVID-19 pandemic, the ball had to be postponed. The ball will not be going ahead in 2021 either due to the ongoing pandemic, so current plans are to hold the next ball in the summer of 2022.

Public benefit

The trustees have been mindful of the Commission's guidance on public benefit, including the guidance "Public benefit: running a charity (PB2)".

Policy on grant making

During the year charity grants have been deferred to 2021.

The charity grants 50% of funds raised though ticket sales, the auction and raffle to the Lighthouse Construction Industry Charity (registered charity no. 1149488), who provide financial and emotional support to the construction community and their families. The remaining 50% is granted to a charity selected by the trustees.

The trustees review policy on grant making each year.

Achievements and performance

Due to the COVID-19 pandemic, the activities of the charity were put on hold and so there were no achievements this year.

The trustees did however manage to raise funds independently of the charity for the Lighthouse Construction Industry Charity though a JustGiving page.

Financial review

Financial position

At 31 October 2020 the total funds of the charity were £4,152. These are 100% designated funds, being a donation towards the 2022 summer ball.

Reserves policy

It is the charity’s policy not to hold reserves. All funds raised are to be paid out as grants, as all overhead costs are met by the trustees’ firms and there are no paid staff.

• 1 -

HQR LONDON CHARITABLE FOUNDATION

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

The Trustees have assessed the major risks to which the HQR London is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

Type of governing document and charity constitution

The charity is a Foundation Charitable Incorporated Organisation (CIO) governed by a Constitution.

The Trustees who served during the year and up to the date of signature of the financial statements were: Mr D Size

Mr A Crispin

Mr C J C Butler

Trustee selection

The charity currently has three trustees. While there are no current plans to install further trustees, any decision to recruit trustees in the future will be by mutual agreement of the existing trustees, with selection being made with due regard to the skills, experience and contacts deemed necessary to further the objectives and aims of the charity.

The Trustees' Annual Report was approved by the Board of Trustees.

Mr D Size

Trustee Dated: 11 June 2021

• 2 -

HQR LONDON CHARITABLE FOUNDATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF HQR LONDON CHARITABLE FOUNDATION

I report to the Trustees on my examination of the financial statements of HQR London Charitable Foundation (the HQR London) for the year ended 31 October 2020.

Responsibilities and basis of report

As the Trustees of the HQR London 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 HQR London’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

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 HQR London 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.

Simon Toghill

Independent Examiner 5 Beauchamp Court Victors Way Barnet London EN5 5TZ

Dated: 11 June 2021

• 3 -

HQR LONDON CHARITABLE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 OCTOBER 2020

Unrestricted Restricted funds funds 2020 2020 Notes £ £ Income from: Donations and legacies 2 - 2,958 Charitable activities 3 - 250 Other trading activities 4 - - Total income - 3,208 Expenditure on: Raising funds 5 - 2,459 Charitable activities 6 - - Total resources expended - 2,459 Net income/(expenditure) for the year/ Net movement in funds - 749 Fund balances at 1 November 2019 1,000 2,403 Fund balances at 31 October 2020 1,000 3,152	Total Unrestricted Restricted funds funds 2020 2019 2019 £ £ £ 2,958 - 26,535 250 - 2,000 - - 322,294 3,208 - 350,829 2,459 - 245,182 - - 106,178 2,459 - 351,360 749 - (531) 3,403 1,000 2,934 4,152 1,000 2,403	Total 2019 £ 26,535 2,000 322,294 350,829 245,182 106,178 351,360 (531) 3,934 3,403

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

All income and expenditure derive from continuing activities.

• 4 -

HQR LONDON CHARITABLE FOUNDATION

BALANCE SHEET

AS AT 31 OCTOBER 2020

2020 Notes £ Current assets Debtors 10 49,365 Cash at bank and in hand 74,939 124,304 Creditors: amounts falling due within one year 11 (120,152) Net current assets Income funds Restricted funds 12 Unrestricted funds	£ 4,152 3,152 1,000 4,152	2019 £ - 3,448 3,448 (45)	£ 3,403
			2,403 1,000
			3,403

The financial statements were approved by the Trustees on 11 June 2021

Mr D Size Trustee

• 5 -

HQR LONDON CHARITABLE FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 OCTOBER 2020

2020 Notes £ Cash flows from operating activities Cash generated from/(absorbed by) operations 15 Net cash used in investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2019 £ £ 71,491 - - 71,491 3,448 74,939	£ (453) - - (453) 3,901 3,448

• 6 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

Charity information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Unit G29 The Light Box, 111 Power Road, London, W4 5PY.

1.1 Accounting convention

The financial statements have been prepared in accordance with the HQR London'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)". The HQR London is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the HQR London. Monetary amounts 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 HQR London 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.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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.

• 7 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

1.4 Income

• All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

1.5 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

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.

• 8 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

1.7 Financial instruments

The HQR London 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 HQR London's balance sheet when the HQR London 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.

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 HQR London’s contractual obligations expire or are discharged or cancelled.

2 Donations and legacies

	Restricted	Restricted
	funds	funds
	2020	2019
	£	£
Donations and gifts	2,807	26,265
Other - Exceptional income from donations and legacies	151	270
	2,958	26,535

• 9 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

3 Charitable activities

4 5	2020 2019 £ £ Sales within charitable activities 250 2,000 Other trading activities Total Restricted funds 2020 2019 £ £ Fundraising events - 189,000 Auctions & raffles - 133,294 Other trading activities - 322,294 Costs of other trading activities Restricted Restricted funds funds 2020 2019 £ £ Fundraising and publicity Staging fundraising events - 240,765 Advertising 1,782 2,102 Fundraising and publicity 1,782 242,867 Trading costs Other trading activities 677 2,315 2,459 245,182	2020 2019 £ £ Sales within charitable activities 250 2,000 Other trading activities Total Restricted funds 2020 2019 £ £ Fundraising events - 189,000 Auctions & raffles - 133,294 Other trading activities - 322,294 Costs of other trading activities Restricted Restricted funds funds 2020 2019 £ £ Fundraising and publicity Staging fundraising events - 240,765 Advertising 1,782 2,102 Fundraising and publicity 1,782 242,867 Trading costs Other trading activities 677 2,315 2,459 245,182
		242,867
		2,315
		245,182

• 10 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

6 Charitable activities

		Awarding of	Awarding of
		Grants	Grants
		2020	2019
		£	£
Grant funding of activities (see note	7)	-	106,178

7 Grants payable

	Awarding of	Awarding of
	Grants	Grants
	2020	2019
	£	£
Grants to institutions:
Other	-	106,178

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the HQR London during the year.

9 Employees

The total staff costs and employee benefits for the reporting period were £Nil.

The average head count of employees during the year was Nil.

10 Debtors

Debtors
Amounts falling due within one year: Trade debtors Prepayments and accrued income	2020 £ 27,249 22,116 49,365	2019 £ - -
		-

• 11 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

11 Creditors: amounts falling due within one year

Trade creditors Other creditors	2020 £ 32 120,120 120,152	2019 £ 45 -
		45

12 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
		Balance at		Incoming	Resources	Balance at	Incoming	Resources	Balance at
	1	November		resources	expended	1 November	resources	expended	31 October
			2018			2019			2020
			£	£	£	£	£	£	£
	Restricted
	fund - HQR
	Summer Ball		2,934	350,829	(351,360)	2,403	3,208	(2,459)	3,152
			2,934	350,829	(351,360)	2,403	3,208	(2,459)	3,152
13	Analysis of net assets between funds
			Unrestricted		Restricted	Total	Unrestricted	Restricted	Total
				funds	funds		funds	funds
				2020	2020	2020	2019	2019	2019
				£	£	£	£	£	£
	Fund balances at	31
	October 2020 are
	represented by:
	Current assets/(liabilities)
				1,000	3,152	4,152	1,000	2,403	3,403
				1,000	3,152	4,152	1,000	2,403	3,403

14 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

• 12 -

HQR LONDON CHARITABLE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

15 Cash generated from operations Surplus/(deficit) for the year Movements in working capital: (Increase)/decrease in debtors Increase in creditors Cash generated from/(absorbed by) operations 16 Analysis of changes in net funds The HQR London had no debt during the year.	2020 £ 749 (49,365) 120,107 71,491	2019 £ (531) 68 10 (453)

• 13 -