Woodford Community Centre
Charitable Incorporated Organisation Charity Registration Number: 1171494
Annual Report and Financial Statements
31 December 2020
Simply Churches Chartered Accountants
17 Heathville Road London N19 3AL
Woodford Community Centre
Annual Report and Financial Statements For the year ended 31 December 2020 Contents
| Page | |
|---|---|
| Legal & Administrative Information | 2 |
| Annual Report of the Trustees | 3 |
| Report of the Independent Examiner | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 |
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Woodford Community Centre
Legal & Administrative Information For the year ended 31 December 2020
Charity Name
Woodford Community Centre
Charity no. 1171494. The Charity was registered with the Charity Commission on 7 February 2017.
Registered Office Woodford Community Centre, 71 Abbotsford Gardens, Woodford Green, IG8 9HP.
Governing Document CIO Foundation
Objects
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to advance the Christian faith in Woodford, Essex and the surrounding area for the benefit of the public through the holding of regular services, prayer groups and provision of religious instruction for children to encourage and facilitate religious practice by existing followers and enlighten others about the Christian faith;
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• to provide facilities for recreation or other leisure time occupation in the interests of social welfare for persons in Woodford, Essex and the surrounding area, who have need of such facilities by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances with the object of improving the conditions of life for such persons in the same location and elsewhere as the trustees may from time to time think fit including the establishment and operation of one or more community centres to further such purposes;
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such other charitable purposes as shall, in the opinion of the trustees, further the work of the charity.
Trustees The Trustees who served during the year or who were serving at the date of this report were:
Jonathan Drane Jeremy Clifton Kong Yee Yap Trevor Newman Adrian Hodder Martin Lawrence Appointed 7[th] May 2020 Key Management Those in charge of planning, directing, controlling, running and operating the Charity, Personnel including those members of staff who are the senior management personnel to whom the trustees have delegated significant authority or responsibility in the day-to-day running of the charity, are the Managing Trustees and the Centre Manager.
Bankers CAF Bank 25 Kings Hill Ave Kings Hill West Malling ME19 4JQ Independent Examiner John Helm ACA Simply Churches Limited 17 Heathville Road London N19 3AL
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Woodford Community Centre
Report of the Trustees For the year ended 31 December 2020
The Trustees submit their report and the financial statements of Woodford Community Centre (“the Charity”) for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.
1. Structure, Governance & Management
1.1. Trustees
The Board of Trustees, who meet approximately 4 times per annum, are responsible for the strategic direction and policy of the Charity. At present the Board is made up of 6 Trustees from a variety of variety of backgrounds relevant to the work of the Charity. Four of the trustees in the year were also elders of Woodford Evangelical Church, and two of the trustees in the year were also deacons of Woodford Evangelical Church, which was the main user of Prospect Hall in the year under review.
In accordance with the CIO Foundation the number of Trustees shall not be less than three, but is not subject to any maximum. New Trustees must be over the age of 18 and subscribe to the Statement of Beliefs set out in the schedule to the memorandum
The Trustees will ensure that any new Trustees appointed have the necessary skills and experience and that they will receive any necessary training and individual briefings about the Charity’s achievements to date, its future plans and their responsibilities.
1.2 Risk Management
The Trustees acknowledge that they have a responsibility for the identification and proper management of risks faced by the Charity in achieving its primary aims. The Trustees have therefore assessed the major risks to which the Charity is exposed, in particular those relating to the specific operational areas of the Charity and its finances. The Trustees believe that, by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the Charity, they have established effective systems and procedures to mitigate those risks.
2. Activities & Strategies
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The Charity manages:
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a community hall, hired by a variety of community and leisure organisations. The hall is managed under a lease from the London Borough of Redbridge.
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a freehold residential property, adjacent to the community hall, which during the year was occupied by the pastor of a Noah’s Ark church and his family, rent free. Noah’s Ark Church is based on the Orchard Estate in Woodford Green and is involved in a number of community projects and activities.
3. Achievements and Performance
During the year of 2020, activities started strongly during the months of January and February before the global Covid19 pandemic severely impacted the community centre operations. Over the course of the month of March bookings reduced or cancelled their use of the hall before hall operations were completely closed on 23[rd] March 2020. The government order for full closure of the premises lasted 12 weeks, during which time the community centre received zero income revenue for venue hire. Funding was allocated to the community centre via government grants provided to the hospitality sector. Alongside this the London Borough of Redbridge approved a rent relief on the premises of Prospect Hall for 1 quarter (July-September), which eased the pressure on financial restraints and adapting to Covid-19 operational guidelines. During this closure period Prospect Hall was utilised as a Food bank for the local community and operated by a local food bank group.
Hall operations recommenced on 8[th] June 2020 when Rising Stars Nursery & Pre-school, established in February 2017, continued its operations and provided Woodford Community Centre a source of income revenue. Other hall bookings
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Woodford Community Centre
Report of the Trustees For the year ended 31 December 2020
returned between June-October in accordance with government Covid-19 guidance but were reduced significantly during November lockdown period and remained at low numbers for the remainder of 2020.
The principal objective of Woodford Community Centre is the advancement of the Christian faith. During the year Woodford Evangelical Church was one of the main users of Prospect Hall. The activities of Woodford Evangelical Church include its Sunday services, also children’s and young people’s clubs and a monthly club for senior citizens. The support of Noah’s Ark Church continued in the form of rent-free accommodation provided to the Pastor of Noah’s Ark Church, which continues to meet on the Orchards Estate.
During the year Woodford Community Centre invested £5,395 (2019: £5,053) in various repairs and maintenance projects, most notably significant repairs to slate roofing on the premises of Prospect Hall.
A grand total of £3,700 was spent on wooden floor refurbishment and improvements to the premises of Prospect Hall by Woodford Community Centre CIO during June 2020.
The London Borough of Redbridge and Woodford Community Centre Charitable Incorporated Organisation (CIO), signed and entered into a lease agreement to the premises of Prospect Hall on 19[th] April 2017. The tenancy of Prospect Hall, and all rights and obligations in managing the property, transferred from Woodford Community Centre Limited to Woodford Community Centre CIO upon the commencement of the new lease. The lease is 10 years in length. A break clause was inserted into the lease agreement, allowing both Woodford Community Centre CIO and London Borough of Redbridge the mechanism to break the lease agreement at any time once completion of 5 years of the lease has elapsed (18[th] April 2022).
4. Plans for Future Periods
The Charity plans further refurbishment of disabled toilet facilities in 2021 if budget allows.
5. Financial Review
The Charity’s main source of funding is income from the letting of the community hall facilities.
The Statement of Financial Activities and Balance Sheet can be found on pages 7 and 8 respectively. The Charity’s reserves increased by £19,511 (2019: increased by £13,737) during the year. The balance sheet shows total net assets of £540,205 (2019: £520,694).
Reserves Policy
The Trustees consider that it is appropriate to hold free reserves of not less than £10,000. The Trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources and will allow the Charity to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 December 2020 the Charity had reserves of £540,205 (2019: £520,694) and a net free reserves deficit of £59,795 (2019: deficit of £79,306).
The trustees are aware of the reserves deficit. The deficit is largely the result of amounts totalling £84,645 owing to one creditor. The creditor has agreed to be repaid as and when funds become available.
There will be a need for additional funding for the upgrading of the premises. This additional funding may be met from borrowings or additional reserves will be required.
6. Going Concern Review
The significant event to have occurred prior to the signing of these accounts has been the lockdown restrictions made necessary by the COVID-19 pandemic, which broke out in early March 2020.
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Woodford Community Centre
Report of the Trustees For the year ended 31 December 2020
Each year it’s the trustees’ responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 10). Going concern is the assumption that an entity, in this case the charity, has the resources (financial or otherwise) needed to continue operating for the foreseeable future and, in particular, for at least 12 months from the date of approval by the trustees of these annual accounts. If the going concern principle did not apply then the accounts would be drawn up on an insolvent basis.
Clearly, as part of this year’s going concern review, the trustees have had to consider the likely impact of COVID-19 pandemic on the charity’s operations. It has concluded that the financial risks to those operations have increased significantly as a result of the lockdown restrictions imposed by the Government, the closure of schools and facilities and its dependency on the ability of businesses and groups to maintain their current level of usage of the facilities. This uncertainty is likely to continue into the autumn and possibly beyond.
Against this background, the trustees will keep the financial forecast for 2020 under regular review, aware that if the charity incurs a deficit in 2020, its cash reserves are more than adequate to absorb that deficit. Even so it has taken positive steps to reduce the potential impact by furloughing all its employees. Accordingly, it has concluded that it is appropriate to prepare the 2020 Accounts on a going-concern basis and that it is not necessary to make any adjustment to these accounts as a result of the lockdown restrictions. The trustees will continue to keep both the short-term and longer-term impact under review and in particular, the 'degree of return to normality' will be actively monitored in the latter part of 2020, with a view to assessing the likely carryover into 2021 and the effect on the 2021 Budget.
7. Responsibilities of Trustees for the Financial Statements
The Trustees are responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period.
In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles of the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the activities of the Charity will continue.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included in the Charity’s website.
8. Approval
The report of the Trustees was approved by the Trustees on 5[th] October 2021 and signed on their behalf by:
Jeremy Clifton Trustee
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Woodford Community Centre
Report of the Independent Examiner to the Trustees of the Woodford Community Centre For the year ended 31 December 2020
I report on the financial statements of the Woodford Community Centre charitable incorporated organisation (“the CIO”) for the year ended 31 December 2020, which are set out on pages 7 to 13.
Respective responsibilities of trustees and examiner
The trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”). I report in respect of my examination of the CIO’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
I have completed my examination. I confirm that no material 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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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts 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 accounts to be reached.
John Helm ACA 5 October 2021
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Woodford Community Centre
Statement of Financial Activities For the year ended 31 December 2020
| Note Income from: 2 Donations and legacies Charitable activities Investments Total income Expenditure on: Charitable activities 3 Total expenditure Net income before tax 4 Tax payable 5 Net income after tax Other recognised gains and losses Net movement in funds Total funds brought forward Total funds carried forward |
||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| 30,741 | 90 | |
| 50,950 | 69,624 | |
| 2 | 5 | |
| 81,693 | 69,719 | |
| 62,182 | 83,456 | |
| 62,182 | 83,456 | |
| 19,511 | (13,737) | |
| - | - | |
| 19,511 | (13,737) | |
| - | - | |
| 19,511 | (13,737) | |
| 520,694 | 534,431 | |
| 540,205 | 520,694 | |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.
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Woodford Community Centre
Balance Sheet As at 31 December 2020
| Note Fixed Assets Tangible fixed assets 6 Current Assets Debtors 7 Cash At Bank And In Hand Creditors - Amounts Falling Due Within One Year 8 Net Current Liabilities Net Assets Represented By: Unrestricted Income Funds Total Funds |
||
|---|---|---|
| Total | Total | |
| 2020 | 2019 | |
| £ | £ | |
| 600,000 | 600,000 | |
| 600,000 | 600,000 | |
| 10,824 | 3,750 | |
| 22,442 | 6,546 | |
| 33,266 | 10,296 | |
| (93,061) | (89,602) | |
| (59,795) | (79,306) | |
| 540,205 | 520,694 | |
| 540,205 | 520,694 | |
| 540,205 | 520,694 | |
The financial statements were approved by the Trustees on 5[th] October 2021 and signed on their behalf by:
Jon Drane Trustee
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Woodford Community Centre
Notes to the Financial Statements For the year ended 31 December 2020
1. Accounting Policies
Woodford Community Centre is a charitable incorporated organisation in the United Kingdom. The registered office address is 71 Abbotsford Gardens, Woodford Green, IG8 9HP.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of accounting
The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102), the Charities Act 2011 and the Companies act 2006. The financial statements are drawn up on the historical cost basis of accounting with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements
The Charity meets the definition of a public benefit entity under FRS 102.
Going Concern
There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.
Income recognition
Voluntary income and donations (including legacies) are accounted for once the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.
No amounts have been included in the financial statements for services donated by volunteers.
Expenditure recognition
Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Charity is not registered for VAT and accordingly expenditure includes VAT where appropriate.
Charitable expenditure includes those costs in fulfilling the Charity’s principal objects, as outlined in the Report of the Trustees. This includes governance costs. Governance costs are those incurred in connection with the administration of the Charity and compliance with constitutional and statutory requirements, which tasks are undertaken mainly by the Trustees. Governance costs also costs include costs relating to statutory independent examination and legal fees.
The Charity contributes to certain employees' personal pension plans. These are defined contribution schemes, the assets of which are held separately from those of the charity. The cost in the accounts is the amount of contributions paid and payable during the period.
Taxation
The Company is a Registered Charity and is therefore exempt from taxation under the Income and Corporation Taxes Acts.
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Woodford Community Centre
Notes to the Financial Statements For the year ended 31 December 2020
1. Accounting Policies (continued)
Tangible Fixed Assets
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Fixtures & fittings. Depreciation is provided to write off the cost, less estimated residual values, of fixtures and fittings with a cost of £400 or more, over their expected useful lives at a rate of 25% per annum straight line
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Freehold property. Freehold property is included at fair value. Depreciation is not provided on freehold property as the estimated residual value is considered to be the same or higher than the carrying value of the property in the accounts.
Depreciation is not provided on freehold property as the estimated residual value is considered to be the same or higher than the carrying value of the property in the accounts.
Funds Structure
Unrestricted income comprises those funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for specific purposes.
2. Income
| Voluntary Income Donations Grants Charitable activities Rent of community hall Investment income Bank interest |
Total | Total | ||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| - | 90 | |||
| 30,741 | - | |||
| 30,741 | 90 | |||
| 50,950 | 69,624 | |||
| 2 | 5 | |||
| 81,693 | 69,719 | |||
Grants are central government grants (£5,741) and local government grants (£25,000).
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Woodford Community Centre
Notes to the Financial Statements For the year ended 31 December 2020
3. Expenditure – Charitable Activities
| Staff costs Premises costs Office costs Governance costs |
Total | Total | ||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| 21,290 | 21,441 | |||
| 38,812 | 58,242 | |||
| 983 | 1,385 | |||
| 1,098 | 2,388 | |||
| 62,183 | 83,456 | |||
Staff Costs
| Included within expenditure are the following staff costs: Wages and salaries Employer National Insurance Employment allowance Pension contributions Of which the following wages were in respect of Key Management Personnel |
Total | Total | ||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| 20,565 | 20,307 | |||
| 661 | 665 | |||
| (661) | (665) | |||
703 |
595 |
|||
| 21,268 | 20,902 | |||
| 13,532 | 13,398 | |||
The average number of employees of the Charity in the year was 2. The Trustees receive no remuneration for their services to the charity, nor were they reimbursed for any out of pockets expenses.
4. Net Income
| Net income/(expenditure) is stated after charging: Depreciation – owned assets Independent Examiner’s remuneration |
Total | Total | ||
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| - | - | |||
| 780 | 780 | |||
| 780 | 780 | |||
5. Taxation
As a charity, Woodford Community Centre is exempt from tax on income and gains falling within the provisions of the Corporation Taxes Act 2010 or the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen on the Charity.
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Woodford Community Centre
Notes to the Financial Statements For the year ended 31 December 2020
6. Tangible Fixed Assets
| Cost At 1 January 2020 Additions Revaluation Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for Year Disposals At 31 December 2020 Net Book Value At 31 December 2020 At 31 December 2019 |
Freehold land & building £ Fixtures, fittings & equipment £ 600,000 6,591 - - - - - - 600,000 6,591 - 6,591 - - - - - 6,591 600,000 0 600,000 0 |
||
|---|---|---|---|
| Total | |||
| £ | |||
| 606,591 | |||
| - | |||
| - | |||
| - | |||
| 606,591 | |||
| 6,591 | |||
| - | |||
| - | |||
| 6,591 | |||
| 600,000 | |||
| 600,000 | |||
The freehold property is the house at 24 Ewanrigg Terrace, Woodford Green, Essex, IG8 7QJ. It was originally stated at cost and has been revalued at 31 December 2019 by the Trustees using local house prices as comparators. The property is tenanted on a rent-free rolling 1 year assured shorthold tenancy agreement, which was agreed and signed on 2[nd] July 2019.
The Charity operates the community centre at the premises of Prospect Hall in Prospect Road, Woodford Green, Essex under a lease from the London Borough of Redbridge, which owns the freehold. Part of the premises are leased separately to the Woodford Operatic and Amateur Dramatic Society for storage.
As the lease that Woodford Community Centre has is short, no expenditure in the year on the premises has been capitalised as fixed assets.
7. Debtors
| Prepayments Lettings receivable |
2020 | 2019 | ||
|---|---|---|---|---|
| £ | £ | |||
| 6,314 | 3,750 | |||
| 4,510 | - | |||
| 10,824 | 3,750 | |||
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Woodford Community Centre
Notes to the Financial Statements For the year ended 31 December 2020
8. Creditors - Amounts Falling Due Within One Year
| 8. Creditors - Amounts Falling Due Within One Year | ||||
|---|---|---|---|---|
| Lettings deposits Loan Accruals and deferred income |
2020 | 2019 | ||
| £ | £ | |||
| 2,694 | 3,042 | |||
| 84,645 | 84,645 | |||
| 5,722 | 1,915 | |||
| 93,061 | 89,602 | |||
The loan is not interest bearing and is repayable when funds permit.
9. Operating Lease Commitments
The total future minimum lease payments under non-cancellable operating leases are payable:
| Not later than one year Later than one year and not later than five years |
2020 | 2019 £ 15,000 18,250 33,250 |
||
|---|---|---|---|---|
| £ | ||||
| 15,000 | ||||
| 3,250 | ||||
| 18,250 | ||||
The commitment is in relation to a lease with Redbridge Council for the community centre. The 10-year lease, which has a 5-year break clause, requires the charity to invest £148k in the fabric of the building over a period, which ends at the 5-year break clause. Amounts in excess of £148k have already been invested by the charity and the predecessor charity.
10. Related Party Transactions
Trevor Newman, a trustee, received remuneration totalling £13,532 (2019: £13,398) in respect of his employment as Centre Manager.
Janet Drane, the wife of Jonathan Drane, a trustee, received remuneration totalling £7,032 (2019: £6,909) in respect of cleaning duties.
As mentioned in the Trustees’ Report four of the trustees (Jonathan Drane, Jeremy Clifton, Adrian Hodder and Martin Lawrence) were also trustees of Woodford Evangelical Church during 2020. Woodford Evangelical Church used the community centre and paid rent totalling £12,000 (2019: £18,238).
During the year, the Trustees made no donations (2020: £nil) to the charity.
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