**Charity registration number 1174220**
**Company registration number 10892952 (England and Wales)**
## **THE LOG CABIN CHARITY**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
**PAGES FOR FILING WITH REGISTRAR**
## **THE LOG CABIN CHARITY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|J M Davis||
|---|---|---|
||R Palfreeman||
||H A Johnson||
||W R Hardman||
||R K Sangha|(Appointed 1 February|
|||2022)|
|**Secretary**|J M Davis||
|**Charity number**|1174220||
|**Company number**|10892952||
|**Registered office**|259 Northfield Avenue||
||Ealing||
||London||
||W5 4UA||
|**Independent examiner**|Clarke & Co||
||Acorn House||
||33 Churchfield Road||
||London||
||W3 6AY||
|**Bankers**|HSBC Bank Plc||
||PO Box 260||
||46 The Broadway||
||Ealing||
||London||
||W5 5JR||
## **THE LOG CABIN CHARITY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 4|
|Independent examiner's report|6|
|Statement of financial activities|7 - 8|
|Summary income and expenditure account|9|
|Balance sheet|10 - 11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 25|
## **THE LOG CABIN CHARITY**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The Trustees present their annual report and financial statements for the year ended 31 March 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 Memorandum and Articles of Associations, the Companies Act 2006 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 Log Cabin Charity provides inclusive adventure play and short breaks for children and young people aged 4 to 15 from the London Borough of Ealing, and is primarily for children with additional needs, disabilities or who are in need. The variety of facilities offered on The Log Cabin Charity site includes a large playground with a water play feature, a multi-use ball games area and quieter outdoor areas such as a sensory garden and raised gardening areas. Indoors are a large hall, computer-controlled multi-sensory room, large, bright arts and craft room, a games room, a quiet room and a calm room. It is open for fifty weeks of the year six days a week.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Mission Statement**
The Log Cabin Charity aims to make a positive difference to the lives of children and young people who have additional needs or disabilities or are in need by providing exciting and stimulating play opportunities in a safe , caring , inclusive and fun environment.
## **Achievements and performance**
The results for the year are set out on pages 7 to 25.
In August 2017 the Log Cabin Charity merged the activities, assets and ongoing obligations of "The Log Cabin", charity number 275183. The Log Cabin Charity has continued the good work of its predecessor by providing a range of activities for children, primarily with additional needs and disabilities.
Although strict Covid restrictions ended in July 2021, the variants of Covid and infection rates are still high. The charity continues to be vigilant and adhere to strict infection prevention and control safety measures.
We continue work supporting families by providing a range of activities for the most vulnerable children , primarily those with additional needs and disabilities.
We experienced considerable challenges in responding to the ongoing crisis, seeing rising demand for services, particularly for some of the most challenging children and young people who found both lockdown and post lockdown difficult which had a definite impact on service. Through our efforts we believe we've been able to make a positive difference to children and young people with SEND.
From September 2021 to March 2022, we extended our Saturday provision to two sessions, morning and afternoon, to accommodate the rising need for services. During the year in addition to our usual services we ran HAF (Holiday Activity and Food Programme) projects. The minibuses which transport the children and young people to and from the Log Cabin have been replaced with newer models.
We will continue to provide effective support to children, young people and families, focusing on meeting their needs and how we can expand our services and better support them on our path to a sustainable future.
- 1 -
## **THE LOG CABIN CHARITY**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Financial review**
In this financial year the charity continued to receive restricted grants from BBC Children in Need, John Lyon's Charity, London Borough of Ealing and the National Lottery Fund. There were also a few small grants from local charities as well as donations from supporters. The year end surplus was £184,276.
The uplift to income enabled us to make the initial move towards paying the permanent staff the London Living Wage hourly rate from April 2021. The uplift was completed in July 2022 and all staff now receive the London Living Wage.
It also enables us to set up reserves which form part of our contingency plan as well as start building reserves towards the cost of renovating the now dilapidated playground.
## **General Policies**
The policies of the Trustees are to ensure The Log Cabin Charity operates in accordance with the rules laid down in its Memorandum and Articles of Association and within that context in accordance with its stated mission. More particularly the Trustees' aims are: -
• providing high quality services, such as holiday play schemes, an after school club, Saturday club sessions for older young people.
• empowering children to make informed choices and to gain a sense of achievement and self-respect;
• providing opportunities for children to develop socially, physically, intellectually, creatively and emotionally;
• developing positive relationships with, and working partnerships with parents/carers, schools, the local community and other organisations;
• ensuring equality of opportunity for children who use the services and for the staff and volunteers;
• improving the welfare of families who have a child or children with additional needs by providing affordable childcare and short breaks for children and their parents/carers; and
• offering an inclusive service, integrating special needs and mainstream children in all activities and encouraging social interaction between all children, regardless of ability.
## **Reserve Policy**
Subject to everyday current requirements, all monies held at the bank are available for charitable purposes in accordance with the objects and policies of the charity.
The Trustees aim to maintain free reserves in unrestricted funds at a level that equates to approximately three months of unrestricted charity expenditure. The current level of reserve meet this objectives.
The playground which is the sole responsibility of the charity is in need of major renovation within the next 12 months. We have started fundraising for this project but it is very likely that the charity will have to contribute substantially and as such we hold some of the surplus towards this.
We will continue to build upon our existing links with local businesses from which we have received generous support in the past, as well as developing new contacts in the local community.
## **Principal Grant Funding**
Principal grant funding is negotiated with the London Borough of Ealing.
- 2 -
## **THE LOG CABIN CHARITY**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Investment Policy and Objectives**
The charity has no surplus funds available for investing at present.
The Trustees are not currently considering investing due to the lack of adequate, regular and sustainable funding. Should surplus funds become evident then the Trustees will follow the law applicable to Trustees in such circumstances. Independent financial advice will always be obtained before making any investment. Investments held are legacy endowment funds.
## **Risk Management**
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The Trustees have assessed the major risks to which the charity is exposed and have put systems in place to mitigate their exposure to such risks.
## **Specific risk**
The charity has limited control over rent, rates, utility and service charges due to the London Borough of Ealing, including building and grounds maintenance, which are apportioned by LBE to users of the premises. The charity currently receives a rent subsidy and discretionary rate relief, but this is not guaranteed. The charity receives a grant from the London Borough of Ealing towards core costs but this is not guaranteed.
Similarly, a few major funders have provided continuous restricted grants in the past two to three years but those too are not guaranteed to continue.
## **Structure, governance and management**
The Log Cabin Charity was incorporated on 1st August 2017 as a company limited by guarantee. It operates under the name "The Log Cabin Charity". The company is governed by its Memorandum and Articles of Association.
Other detailed information as required by SORP is shown on page 1 of the financial statements.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
L R Thomas-Buttigieg (Resigned 26 April 2021) J M Davis R Palfreeman H A Johnson W R Hardman R K Sangha (Appointed 1 February 2022)
## **Organisational Structure**
The Log Cabin Charity is run by a Management Committee of 5 Trustees (but not more than 15). Up to 5 members within this total may be co-opted at a special management committee meeting.
The Board of Trustees meets six times a year. The Head of Service and the Fund Raising Manager also attend the
meetings.
Sub-committees, made up of Trustees and appropriate staff members, focus on finance and strategic planning, marketing and PR, human resources/remuneration and premises/health and safety.
- 3 -
## **THE LOG CABIN CHARITY**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Trustee Induction and Training**
Training is given on what is expected of the Trustees under charity law, in particular acting as a Trustee, management and governance and strategic planning.
After obtaining enhanced DBS clearance new Trustees are inducted into the workings of the charity, including the policies and procedures of the Management Committee.
## **Disclosure of Information to the Independent Examiner**
Each of the Directors has confirmed that there is no information of which they are aware which is relevant to the accounts but of which the Independent Examiner is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the Independent Examiner is aware of such information.
The Trustees report was approved by board of Board of Trustees and was signed by the secretary on behalf of the board of trustees.
J M Davis **Secretary**
14 December 2022
- 4 -
## **THE LOG CABIN CHARITY**
## **STATEMENT OF TRUSTEES RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The Trustees, who are also the directors of The Log Cabin Charity for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.
- 5 -
## **THE LOG CABIN CHARITY**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE LOG CABIN CHARITY**
I report to the Trustees on my examination of the financial statements of The Log Cabin Charity (the charity) for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity ’ s financial statements carried out under section 145 of the Charities Act 2011 (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**
Since the charity ’ s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
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 charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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.
## **Clarke & Co**
## **M.T. Stower FCA**
Acorn House 33 Churchfield Road London W3 6AY
Clarke & Co. Chartered Accountants
Dated: 14 December 2022
- 6 -
## **THE LOG CABIN CHARITY**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Current financial year**
**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
566,603
313,098
-
Other trading activities
**4**
2,436
-
-
Investments
**5**
29
-
-
Other Income - London Borough of
Ealing
**6**
16,834
-
-
**Total income**
585,902
313,098
-
**Expenditure on:**
Raising funds
Fundraising and publicity
**7**
4,851
-
-
Charitable activities
**8**
397,858
313,098
-
**Total expenditure**
402,709
313,098
-
Net gains/(losses) on investments
**11**
-
-
1,083
**Net movement in funds**
183,193
-
1,083
Fund balances at 1 April 2021
200,529
-
62,447
**Fund balances at 31 March 2022**
383,722
-
63,530|**Total**
**2022**
**£**
879,701
2,436
29
16,834
899,000
4,851
710,956
715,807
1,083
184,276
262,976
447,252|**Total**
**2021**
**£**
718,091
1,305
13
9,790|
|---|---|---|
|||729,199|
|||741|
|||533,889|
|||534,630|
|||5,906|
|||200,475
62,501|
|||262,976|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **THE LOG CABIN CHARITY**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Prior financial year**
**Unrestricted**
**Restricted Endowment**
**funds**
**funds**
**funds**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
532,854
185,237
-
Other trading activities
**4**
1,305
-
-
Investments
**5**
13
-
-
Other Income - London Borough of Ealing
**6**
9,790
-
-
**Total income**
543,962
185,237
-
**Expenditure on:**
Raising funds
Fundraising and publicity
**7**
741
-
-
Charitable activities
**8**
348,652
185,237
-
**Total expenditure**
349,393
185,237
-
Net gains/(losses) on investments
**11**
-
-
5,906
**Net movement in funds**
194,569
-
5,906
Fund balances at 1 April 2020
5,960
-
56,541
**Fund balances at 31 March 2021**
200,529
-
62,447|**Total**
**2021**
**£**
718,091
1,305
13
9,790|
|---|---|
||729,199|
||741|
||533,889|
||534,630|
||5,906|
||200,475
62,501|
||262,976|
- 8 -
## **THE LOG CABIN CHARITY**
## **SUMMARY INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**All income funds**
**2022**
**£**
Gross income
**899,000**
Total expenditure from income funds
**715,807**
**Net income for the year**
**183,193**|2021
£
729,199
534,630|
|---|---|
||194,569|
- 9 -
## **THE LOG CABIN CHARITY**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Capital funds**
Endowment funds - general
**18**
**Income funds**
Unrestricted funds
Designated funds
**19**
General unrestricted funds|**2022**
**£**
9,675
398,891
408,566
(70,267)
333,000
50,722|**£**
45,423
63,530
108,953
338,299
447,252
63,530
383,722
447,252|**2021**
**£**
68,684
216,106
284,790
(92,745)
-
200,529|**£**
8,484
62,447|
|---|---|---|---|---|
|||||70,931
192,045|
|||||262,976|
|||||62,447
200,529|
|||||262,976|
- 10 -
## **THE LOG CABIN CHARITY**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 MARCH 2022**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 14 December 2022
J M Davis W R Hardman **Trustee Trustee**
## **Company registration number 10892952**
- 11 -
## **THE LOG CABIN CHARITY**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**22**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(50,145)
29
(1,139)|**£**
234,040
(50,116)
(1,139)
182,785
216,106
398,891|**2021**
**£**
(4,630)
13
(401)|**£**
185,229
(4,617)
(401)
180,211
35,895
216,106|
|---|---|---|---|---|
- 12 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity information**
The Log Cabin Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is 259 Northfield Avenue, Ealing, London, W5 4UA.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, 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 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, [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 charity 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.
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.
- 13 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset ’ s use.
## **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:
Plant and equipment 20% Straight Line Motor vehicles 20% Straight Line
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 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.8 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).
## **1.9 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.
## **1.10 Financial instruments**
The charity 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 charity's balance sheet when the charity 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.
- 14 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
**(Continued)**
## _**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.
## **1.11 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.
## **1.12 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 estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 15 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
21,503
-
Government and other
organisational grant
42,573
313,098
After school club and
children play scheme
fees
502,527
-
566,603
313,098
**Donations and gifts**
Individual and
organisational donations
21,503
-
21,503
-
**Grants receivable for**
**core activities**
London Borough of
Ealing Grant
-
31,900
Other restricted Grant
-
281,198
Coronavirus Job
Retention Scheme Grant
-
-
Other Grant
42,573
-
42,573
313,098|**Total**
Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
21,503
26,305
-
355,671
42,686
185,237
502,527
463,863
-
879,701
532,854
185,237
21,503
26,305
-
21,503
26,305
-
31,900
-
31,900
281,198
-
153,337
-
42,686
-
42,573
-
-
355,671
42,686
185,237|Total
2021
£
26,305
227,923
463,863|
|---|---|---|
|||718,091|
|||26,305|
|||26,305|
|||31,900
153,337
42,686
-|
|||227,923|
## **4 Other trading activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Hall lettings|2,436|1,305|
- 16 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **5 Investments**
|**6**
**7**|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Interest receivable
29
13|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Interest receivable
29
13|**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Interest receivable
29
13|
|---|---|---|---|
|||||
||**Other Income - London Borough of Ealing**|||
||**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Other income
16,834
9,790
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Fundraising and publicity
Advertising
4,851
741
4,851
741|||
||||741|
- 17 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **8 Charitable activities**
|**Running**
**and**
**maintaining**
**children's**
**recreational**
**activities**
**Depreciation**
**and**
**impairment**
**2022**
**2022**
**£**
**£**
Staff costs
578,732
-
Depreciation and
impairment
-
13,205
Direct charitable
activities cost
86,902
-
665,634
13,205
Share of support costs
27,317
-
Share of governance
costs
4,800
-
697,751
13,205
**Analysis by fund**
Unrestricted funds
384,653
13,205
Restricted funds
313,098
-
697,751
13,205|**Total**
**2022**
**Running**
**and**
**maintaining**
**children's**
**recreational**
**activities**
**Depreciation**
**and**
**impairment**
**2021**
**2021**
**£**
**£**
**£**
578,732
463,214
-
13,205
-
3,894
86,902
21,145
-
678,839
484,359
3,894
27,317
41,016
-
4,800
4,620
-
710,956
529,995
3,894
397,858
344,758
3,894
313,098
185,237
-
710,956
529,995
3,894|**Total**
**2021**
**£**
463,214
3,894
21,145|
|---|---|---|
|||488,253
41,016
4,620|
|||533,889|
|||348,652
185,237|
|||533,889|
## **9 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity charity during the year (2021 - Nil).
## **10 Employees**
The average monthly number of employees during the year was:
|Office and management
Operational
Total|**2022**
**Number**
5
32
37|**2021**
**Number**
5
28|
|---|---|---|
|||33|
- 18 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2022**
**2021**
**£**
**£**
553,066
441,611
19,380
16,008
6,286
5,595
578,732
463,214|**(Continued)**
**2022**
**2021**
**£**
**£**
553,066
441,611
19,380
16,008
6,286
5,595
578,732
463,214|
|---|---|---|
|||463,214|
There were no employees whose annual remuneration was more than £60,000.
## **11 Net gains/(losses) on investments**
||**Endowment**|Endowment|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2022**|2021|
||**£**|£|
|Revaluation of investments|1,083|5,906|
## **12 Tangible fixed assets**
|**Plant and**
**equipment**
**Motor vehicles**
**£**
**£**
**Cost**
At 1 April 2021
138,259
69,060
Additions
8,322
41,823
At 31 March 2022
146,581
110,883
**Depreciation and impairment**
At 1 April 2021
129,776
69,060
Depreciation charged in the year
3,380
9,825
At 31 March 2022
133,156
78,885
**Carrying amount**
At 31 March 2022
13,425
31,998
At 31 March 2021
8,483
1|**Total**
**£**
207,319
50,145|
|---|---|
||257,464|
||198,836
13,205|
||212,041|
||45,423|
||8,484|
## **13 Fixed asset investments**
- 19 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**13**
**Fixed asset investments**
**Cost or valuation**
At 1 April 2021
Valuation changes
At 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021
**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Prepayments and accrued income
**15**
**Loans and overdrafts**
Bank loans
Payable within one year
**16**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**15**
Other taxation and social security
Deferred income
**17**
Trade creditors
Accruals and deferred income|**(Continued)**
**Unlisted**
**investments**
**£**
62,447
1,083
63,530
63,530
62,447
**2022**
**2021**
**£**
**£**
7,407
68,684
2,268
-
9,675
68,684
**2022**
**2021**
**£**
**£**
-
1,139
-
1,139
**2022**
**2021**
**£**
**£**
-
1,139
66
10,061
34,091
44,091
30,104
31,567
6,006
5,887
70,267
92,745|
|---|---|
- 20 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **17 Deferred income**
|Other deferred income|**2022**
**£**
34,091|**2021**
**£**
44,091|
|---|---|---|
||||
|Deferred income is included in the financial statements as follows:|||
|**2022**
**£**
Deferred income is included within:
Current liabilities
34,091
Movements in the year:
Deferred income at 1 April 2021
44,091
Released from previous periods
(44,091)
Resources deferred in the year
34,091
Deferred income at 31 March 2022
34,091||**2021**
**£**
44,091|
|||-
-
44,091|
|||44,091|
## **18 Endowment funds**
Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
||**Balance at**|**Revaluations**|**Balance at**|**Revaluations**|
**Balance at**|
|---|---|---|---|---|---|
|**1**|**April 2020**|**gains and**|**1 April 2021**|**gains and**|
**31 March 2022**|
|||**losses**||**losses**||
||**£**|**£**|**£**|**£**|**£**|
||56,541|5,906|62,447|1,083|63,530|
||56,541|5,906|62,447|1,083|63,530|
- 21 -
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **19 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
||**Movement**||**Movement**||
|---|---|---|---|---|
||**in funds**||**in funds**||
||**Incoming**|**Balance at**|**Incoming**|
**Balance at**|
||**resources**|**1 April 2021**|**resources**|**31 March 2022**|
||**£**|**£**|**£**|**£**|
|Running cost|-|-|183,000|183,000|
|Playground development|-|-|150,000|150,000|
||-|-|333,000|333,000|
- 22 -
* ¢0 co
W75ty
## **THE LOG CABIN CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **21 Related party transactions**
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
The Log Cabin Charity provides 'out of school' services to children on premises and land leased from the London Borough of Ealing. The charity's work and facilities enable the Borough to fulfil its legal obligation to provide such facilities for children with special needs. The Log Cabin Charity received a basic grant of £31,900 (2021 -31,900) towards core funding ; £17,859 (2021 - £25,376) for special children care services ; £49,600 for holiday activity and food (HAF) programme and £16,589 for cleaning, repairs and maintenance services from the London Borough of Ealing.
In addition the Borough paid attendance fees where parents are entitled to free provision of after-school club and play scheme services totalling £463,694 (2021 - £443,614).
Trustee Helen Johnson is also a committee member of the local residents' association which holds meetings at The Log Cabin, for which they pay a rental fee.
|**22**|**Cash generated from operations**||**2022**|**2021**|
|---|---|---|---|---|
||||**£**|**£**|
||Surplus for the year||184,276|200,475|
||Adjustments for:||||
||Investment income recognised in statement of financial activities||(29)|(13)|
||Fair value gains and losses on investments||(1,083)|(5,906)|
||Depreciation and impairment of tangible fixed assets||13,205|3,894|
||Movements in working capital:||||
||Decrease/(increase) in debtors||59,010|(17,416)|
||(Decrease) in creditors||(11,339)|(39,896)|
||(Decrease)/increase in deferred income||(10,000)|44,091|
||**Cash generated from operations**||234,040|185,229|
|**23**|**Analysis of changes in net funds**||||
|||**At 1 April 2021**|**Cash flowsAt 31 March 2022**||
|||**£**|**£**|**£**|
||Cash at bank and in hand|216,106|182,785|398,891|
||Loans falling due within one year|(1,139)|1,139|-|
|||214,967|183,924|398,891|
- 24 -
## **THE LOG CABIN CHARITY**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **24 Mergers**
At 1st April 2018 The Log Cabin Charity assumed the activities of "The Log Cabin", a registered charity with similar objectives. The transaction has been treated as a merger in accordance with the guidance offered by SORP "Accounting and Reporting by Charities" the Statement of Recommended Practice for Charities applying FRS102.
- 25 -