## **Barnwood Reading Room CIO**
**Annual Report and Unaudited Financial Statements**
**For the Reporting Period 15 February 2021 to 31 December 2021**
## **Barnwood Reading Room CIO**
## **Legal and Administrative Information**
_____________________________________________________________
## **Charity Trustees**
MR Bashford RJ Crowhurst BM Matheson PM Murphy MD Scott JB Stubbings
These are the first charity trustees, as shown in clause 9(4) of the constitution of the Barnwood Reading Room CIO. They are appointed for a term of 3 years from the commencement date of the constitution, 10 February 2021.
**Charity Number** 1193534
**Principal Office** 146 Barnwood Road Gloucester GL4 3JT
## **Website**
www.barnwoodreadingroom.co.uk
**Bankers**
National Westminster Bank plc 21 Eastgate Street Gloucester GL1 1NY
**Barnwood Reading Room CIO**
## **Contents**
_____________________________________________________________
||**Page**|
|---|---|
|Trustees’ Report|1 - 2|
|Statement of Financial Activities|3|
|Balance Sheet|4|
|Notes to the Financial Statements|5 - 6|
|Paying Agent: Cash Under Management|7|
## **Barnwood Reading Room CIO**
## **Trustees’ Report** _**for the period 15 February 2021 to 31 December 2021**_
_____________________________________________________________
The Charity Trustees (“the **Trustees** ”) of Barnwood Reading Room CIO (‘the **CIO** ”) present their report and financial statements for the period from 15 February 2021 (the date the CIO was registered as a charity) to 31 December 2021 (“the **Reporting Period** ”).
## **Structure, governance and management**
The CIO is governed by a constitution dated 10 February 2021. It was registered as a charity number 1193534 in England and Wales on 15 February 2021. The governance and management of the CIO is carried out by the Trustees, who are appointed for a term of three years. There must be at least 3 and no more than 10 Trustees. The Trustees meet on a regular basis.
In accordance with the constitution, the voting members of the CIO are the Trustees and the only persons eligible to be voting members of the CIO are the Trustees. This type of arrangement for the voting members of a charitable incorporated organisation is known as the ‘foundation’ model. The members of the CIO have limited liability which means that if the CIO is wound up, they have no liability to contribute to the CIO’s assets and no personal responsibility for settling the CIO’s debts and liabilities.
New Trustees are appointed by the existing Trustees at a properly convened meeting. In selecting individuals for appointment as new Trustees, the existing Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
The Trustees who served during the Reporting Period were:
MR Bashford RJ Crowhurst BM Matheson PM Murphy MD Scott JB Stubbings
During the reporting period, none of the Trustees had any beneficial interest in the CIO.
## **Responsibility for the accounts**
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Charity law requires the Trustees to prepare financial statements for each financial year or other reporting period which give a true and fair view of the financial state of affairs of the CIO and of the incoming resources and application of resources, including the income and expenditure, of the CIO for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounts policies and then apply them consistently
- Observe the methods and principles in the Charities Statement of Recommended Practice (SORP)
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and SORPs have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
As the CIO’s gross income was less than £25,000 in the Reporting Period, there is no requirement under the Charities Act 2011 for an independent examination or audit of the accounts.
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## **Barnwood Reading Room CIO**
## **Trustees’ Report** _**for the period 15 February 2021 to 31 December 2021**_
## _____________________________________________________________
## **Objectives and activities**
In the constitution, the objectives of the CIO are described as the provision and maintenance of a village hall for the use of the inhabitants of the Former Parish of Barnwood as constituted on the 1[st] of May 1897 without distinction of political, religious, or other opinions, including use for meetings, lectures and classes, and for other forms of recreation and leisure-time occupation, with the object of improving the conditions of life for the said inhabitants.
The Trustees hire out the Barnwood Reading Room to clubs, societies, corporate organisations, charities and individuals. The Trustees are also responsible for the maintenance of the land and buildings.
These activities are undertaken for the public benefit on a not-for-profit basis and the Trustees have had regard to the guidance issued by the Charity Commission on public benefit.
## **Achievements and performance**
The constitution of the CIO was approved by the Charity Commission for England and Wales and entered in the register of charities on 15 February 2021. A bank account was opened with NatWest in the name of the CIO.
## **Paying agent: cash under management**
In August 2021, the trustees of the Charity for a Reading Room or Institute in the former parish of Barnwood (charity registration no. 251212) ("the **Unincorporated Charity** ") appointed the CIO to act as its paying agent on a temporary basis, pending the proposed merger of the Unincorporated Charity with the CIO. Details of the cash under management for this purpose during the Reporting Period are shown on page 7.
Note: the merger of the Unincorporated Charity with the CIO happened after the end of the Reporting Period on 7 March 2022. On that date, the property of the Unincorporated Charity was transferred to the CIO and reserves of approximately £17,000 were vested in the CIO.
## **Financial review**
The CIO is operated as a value-for-money non-profit making charity. Pending the merger of the CIO and the Unincorporated Charity, a small reserve of £6 was held by the CIO at the end of the Reporting Period. After the merger, reserve and investment policies will be drawn up showing how the long-term cost of maintaining the land and buildings at the Barnwood Reading Room will be managed.
## **Future plans**
The Trustees intend to:
- Build up the reserves to a sustainable level by –
- promoting the use of the Barnwood Reading Room to maximise utilisation and income, and
- `o` keeping expenses under control,
with the aim of an annual contribution to reserves from the net income from charitable activities. In the long term this will ensure that the reserves are sufficient to cover maintenance costs, with the Barnwood Reading Room remaining financially viable
- Register ownership of the land and buildings with the Land Registry, in the name of the CIO
- Keep the Barnwood Reading Room well-maintained
- Continue development of the governance of the CIO in line with best practice
This report has been approved by the Trustees.
……………………………………………………….
M Scott, Chair of the Trustees Date: 7 March 2022
2
**Barnwood Reading Room CIO**
## **Statement of Financial Activities**
_____________________________________________________________
|**Note**
Income from donations
**4**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Reporting Period:**
**15 February 2021* to**
**31 December 2021**
**Total (£)**|**Previous period:**
**Not applicable**
**Total (£)**|
|---|---|---|
||6.00|-|
||**6.00**|**-**|
||-|-|
||6.00|-|
- The CIO was set up as a registered charity with effect from 15 February 2021
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## **Barnwood Reading Room CIO**
## **Balance Sheet**
_____________________________________________________________
|**Note**
_Total fixed assets_
**Current assets:**
Cash at bank and in hand
_Total current assets_
**Liabilities:**
Creditors: amounts falling due within one year
**10**
_Net current assets_
Creditors: amounts falling due after more than
one year
**10**
**_Total net assets_**
**The funds of the CIO:**
Unrestricted Funds
**3**
**_Total CIO funds_**|**As of**
**31 December 2021**
**As of**
**15 February 2021***
**Total (£)**
**Total (£)**|
|---|---|
||-
-
6.00
-|
||6.00
-|
||-
-|
||6.00
-|
||-
-|
||6.00
-|
||6.00
-|
||6.00
-|
* The CIO was set up as a registered charity with effect from 15 February 2021
These financial statements were approved by the Trustees and authorised for issue on 7 March 2022, and are signed on behalf of the Trustees by:
MD Scott Chair of the Trustees
RJ Crowhurst Trustee and Treasurer
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**Barnwood Reading Room CIO**
## **Notes to the Financial Statements**
_____________________________________________________________
## **1. General information**
The CIO is a public benefit entity and a registered charity in England and Wales. It is a Charitable Incorporated Organisation. The address of the principal office is 146 Barnwood Road, Gloucester, GL4 3JT, England.
## **2. Statement of compliance**
These financial statements have been prepared in compliance with:
- the Charities Act 2011; and
- the Charities SOPP (FRS 102) - 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 (effective from 1 January 2019 - second edition October 2019).
## **3. Accounting policies**
## **Basis of preparation**
The financial statements are prepared in sterling, which is the functional currency of the CIO. Monetary amounts in these financial statements are shown to the exact penny. The historic cost convention is used.
## **Going concern**
There are no material uncertainties about the CIO’s ability to continue.
## **Fund accounting**
The CIO’s funds may fall into three categories:
- Unrestricted Funds available for use at the discretion of the Trustees to further any of the CIO’s purposes
- Designated Funds (these are unrestricted funds earmarked by the Trustees for a particular future project or commitment)
- Restricted Funds, which are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. They fall into one of two sub-categories: Restricted Income Funds or Endowment Funds
During the Reporting Period the CIO’s funds were made up entirely of Unrestricted Funds.
## **Incoming resources**
Income is recognised, on an accruals basis, when –
- the CIO is legally entitled to it
- the amounts can be measured reliably
- it is probable that income will be received
The following policies are applied to the two main sources of income for the CIO:
- 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
- Income from the hire of the Barnwood Reading Room is recognised when receipt is probable and entitlement is established. Where an invoice has been issued on or before the end of the Reporting Period for a date of hire after the end of the Reporting Period, the income is treated as a prepayment of hire fees for an event, to be recognised beyond the end of the Reporting Period.
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**Barnwood Reading Room CIO**
## **Notes to the Financial Statements**
_____________________________________________________________
## **Resources expended**
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 the CIO 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 CIO that have been 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.
## **Investments**
The Charities SORP (FRS 102) specifies the accounting treatment of certain defined classes of investments. During the Reporting Period the CIO did not hold any such investments.
## **4. Donations and legacies**
The income during the Reporting Period is made up entirely of a donation of £6.00 from the Unincorporated Charity, received on 2 August 2021.
## **5. Investment income**
The CIO did not receive or accrue any bank interest during the Reporting Period.
## **6. Income from charitable activities**
The CIO did not receive or accrue any income from charitable activities during the Reporting Period.
## **7. Expenditure on charitable activities**
No expenditure occurred during the Reporting Period.
## **8. Staff costs**
The average head count of employees during the Reporting Period was Nil (2020: not applicable).
No employee received employee benefits of more than £60,000 during the Reporting Period (2020: not applicable).
## **9. Trustee remuneration and expenses**
None of the Trustees received remuneration or incurred expenses during the Reporting Period.
## **10. Creditors: amounts falling due within one year or after more than one year**
There were no amounts falling due after the end of the Reporting Period.
## **11. Related parties**
There were no disclosable related party transactions during the Reporting Period (2020: not applicable)
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## **Barnwood Reading Room CIO**
## **Paying Agent: Cash Under Management**
##
In August 2021, the trustees of the Unincorporated Charity appointed the CIO to act as its paying agent on a temporary basis, pending the proposed merger of the Unincorporated Charity with the CIO.
The CIO opened a bank account with NatWest Bank and the Unincorporated Charity made a deposit of £1,000 into this account. This was made up of:
- a donation to the CIO of £6 (£1 per Trustee); and
- an initial amount of £994 to be held separately by the CIO on behalf of the Unincorporated Charity (the ‘cash under management’).
At the end of the CIO’s Reporting Period the balance on the NatWest Bank account had risen to £2,623.00, made up of:
- the £6.00 donation to the CIO; and
- £2,617.00 of cash under management.
The change in the cash under management is summarised below.
|**Cash under management**
Opening amount
Deposit of initial amount of cash
under management
Plus: Income collected on behalf of
the Unincorporated Charity
Less: Expenses settled on behalf of
the Unincorporated Charity
Closing amount|**Notes**
**Reporting Period:**
**15 February 2021* to**
**31 December 2021**
**Total (£)**|**Previous period:**
**Not applicable**
**Total (£)**|
|---|---|---|
||-
**A**
994.00
**B**
2,999.06
**B**
(1,376.06)|-
-
-|
||**C**
2,617.00|-|
* The CIO was set up as a registered charity with effect from 15 February 2021
## **Notes**
- **A** The initial amount of cash under management was received from the Unincorporated Charity on 2 August 2021.
- **B** The income collected and expenses settled during the Reporting Period occurred between 2 August 2021 and 31 December 2021.
- **C** The cash under management is included in the Unincorporated Charity's accounts.
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