Charity Registration No. 1171098
HQR LONDON CHARITABLE FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
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 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 - 11 |
HQR LONDON CHARITABLE FOUNDATION
TRUSTEES' ANNUAL REPORT REPORT FOR THE YEAR ENDED 31 OCTOBER 2021
The Trustees present their report and financial statements for the year ended 31 October 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 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.
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, and as stated in our 2020 annual accounts and report, the ball had to be postponed for a further year. The ball will be held 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
The trustees review the policy for grant making each year. 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.
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.
Financial review
Financial position
At 31st October 2021 the total funds of the charity were £3,522. 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.
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
- 1 -
HQR LONDON CHARITABLE FOUNDATION
TRUSTEES' ANNUAL REPORT REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
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 report was approved by the Board of Trustees.
Mr D Size
Trustee Dated: 19 July 2024
- 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 2021.
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: 19 July 2024
- 3 -
HQR LONDON CHARITABLE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 2 - - Charitable activities 3 - - Total income - - Expenditure on: Raising funds 4 - 630 Total resources expended - 630 Net income/(expenditure) for the year/ Net movement in funds - (630) Fund balances at 1 November 2020 1,000 3,152 Fund balances at 31 October 2021 1,000 2,522 |
Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ - - 2,958 - - 250 - - 3,208 630 - 2,459 630 - 2,459 (630) - 749 4,152 1,000 2,403 3,522 1,000 3,152 |
Total 2020 £ 2,958 250 |
|---|---|---|
| 3,208 | ||
| 2,459 | ||
| 2,459 | ||
| 749 3,403 |
||
| 4,152 |
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 2021
| Notes Current assets Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year Other creditors 8 Net current assets Income funds Restricted funds 9 Unrestricted funds |
2021 £ 27,249 9,387 36,636 33,114 |
£ 3,522 2,522 1,000 3,522 |
2020 £ 49,365 74,939 124,304 120,152 |
£ 4,152 |
|---|---|---|---|---|
| 3,152 1,000 |
||||
| 4,152 |
The financial statements were approved by the Trustees on 19 July 2024
Mr D Size Trustee
- 5 -
HQR LONDON CHARITABLE FOUNDATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2021
| 2021 2020 Notes £ £ £ Cash flows from operating activities Cash (absorbed by)/generated from operations 12 (65,552) Net cash used in investing activities - Net cash used in financing activities - Net (decrease)/increase in cash and cash equivalents (65,552) Cash and cash equivalents at beginning of year 74,939 Cash and cash equivalents at end of year 9,387 |
£ 71,491 - - |
|---|---|
| 71,491 3,448 |
|
| 74,939 |
- 6 -
HQR LONDON CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
Charity information
The charity is a public benefit entity and a registered charity in Englance 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.
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.
-
7 -
HQR LONDON CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
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.
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.
- 8 -
HQR LONDON CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
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
| Donations and gifts Other - Exceptional income from donations and legacies |
Total Restricted funds 2021 2020 £ £ - 2,807 - 151 - 2,958 |
Total Restricted funds 2021 2020 £ £ - 2,807 - 151 - 2,958 |
|---|---|---|
| 2,958 |
3 Charitable activities
| 2020 | |
|---|---|
| £ | |
| 2020 | |
| £ | |
| Sales within charitable activities | 250 |
4 Costs of other trading activities
| Costs of other trading activities | ||
|---|---|---|
| Restricted | Restricted | |
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Fundraising and publicity | ||
| Advertising | - | 1,782 |
| Trading costs | ||
| Other trading activities | 630 | 677 |
| 630 | 2,459 |
- 9 -
HQR LONDON CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
5 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the HQR London during the year.
6 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.
| 7 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income 8 Other creditors falling due within one year Trade creditors Other creditors |
2021 £ 27,249 - 27,249 2021 £ 57 33,057 33,114 |
2020 £ 27,249 22,116 |
|---|---|---|
| 49,365 | ||
| 2020 £ 32 120,120 |
||
| 120,152 |
9 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 | Resources | Balance at | |
| 1 November | resources | expended | 1 November | expended | 31 October | |
| 2019 | 2020 | 2021 | ||||
| £ | £ | £ | £ | £ | £ | |
| Restricted fund - HQR | ||||||
| Summer Ball | 2,403 | 3,208 | (2,459) | 3,152 | (630) | 2,522 |
| 2,403 | 3,208 | (2,459) | 3,152 | (630) | 2,522 |
- 10 -
HQR LONDON CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
| 10 Analysis of net assets between funds Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 31 October 2021 are represented by: Current assets/(liabilities) 1,000 2,522 1,000 2,522 11 Related party transactions There were no disclosable related party transactions during 12 Cash generated from operations (Deficit)/surpus for the year Movements in working capital: Decrease/(increase) in debtors (Decrease)/increase in creditors Cash (absorbed by)/generated from operations |
Total Unrestricted funds 2021 2020 £ £ 3,522 1,000 3,522 1,000 |
Restricted funds 2020 £ 3,152 3,152 |
Restricted funds 2020 £ 3,152 3,152 |
Total 2020 £ 4,152 4,152 2020 £ 749 (49,365) 120,107 71,491 |
|---|---|---|---|---|
| the year (2020 - none). | ||||
| 2021 £ (630) 22,116 (87,038) (65,552) |
13 Analysis of changes in net funds The HQR London had no debt during the year.
- 11 -