Barnwood Reading Room CIO
Annual Report and Unaudited Financial Statements
For the Reporting Period 1 January 2023 to 31 December 2023
(including a comparison with the consolidated accounts for the previous reporting period)
Barnwood Reading Room CIO
Legal and Administrative Information
Charity Trustees MR Bashford RJ Crowhurst BM Matheson (resigned 30 April 2023) MM Moutloatse (appointed 9 March 2023) PM Murphy MD Scott 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 Unincorporated Until 7 March 2022 the Barnwood Reading Charity Room was managed by the Charity for a Reading Room or Institute in the former parish of Barnwood (registered as a charity in England and Wales no. 251212)
Barnwood Reading Room CIO
Foreword
This version of the 2023 accounts for Barnwood Reading Room CIO includes a comparison with the ‘consolidated’ version of the 2022 accounts.
Following the merger of the Unincorporated Charity with the CIO on 7 March 2022, ‘consolidated’ and ‘standalone’ versions of the 2022 accounts were produced. These dealt with the merger in different ways.
The ‘consolidated’ version of the 2022 accounts aggregated the assets, liabilities and funds of the Unincorporated Charity and the CIO and presented them as though they had always been part of the same reporting charity.
This 2022 ‘consolidated’ version was required in order to comply with accounting standards[1] regarding the merger of the Unincorporated Charity with the CIO.
1 Paragraphs 21.1 to 27.16 of 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).
Separate ‘standalone’ version
An alternative ‘standalone’ version of the 2022 accounts was also prepared, which did not aggregate the assets, liabilities and funds of the Unincorporated Charity and the CIO, nor present them as though they had always been part of the same reporting charity.
Instead, in the ‘standalone’ version, the transfer of the assets and liabilities from the Unincorporated Charity to the CIO on the merger date was shown separately.
The difference between the two versions of the 2022 accounts does not affect the figures for the statement of financial activities during 2023. This is because the merger of the Unincorporated Charity with the CIO took place before 2023.
Barnwood Reading Room CIO
Contents
| Page | |
|---|---|
| Trustees’ Report | 1 - 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 - 10 |
| Analysis of Principal Components of Merger | 11 |
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
The Charity Trustees (“the Trustees ”) of Barnwood Reading Room CIO (“the CIO ”) present their report and financial statements for the period from 1 January 2023 to 31 December 2023 (“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 (resigned 30 April 2023) MM Moutloatse (appointed 9 March 2023) PM Murphy MD Scott
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. These should 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.
1
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
Objectives and activities
In the constitution, the objectives of the CIO are described as the provision and maintenance of the village hall located at 146 Barnwood Road, Gloucester, GL4 3JT for the use of the inhabitants of Barnwood and the neighbourhood (broadly representing 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
During the Reporting Period, the following improvements were made to the facilities provided at the Barnwood Reading Room:
-
Installation of a new electrical consumer unit; and
-
Re-decoration of the main hall, below new picture rails.
The new bookings system continued to be used successfully. A calendar is published on the website showing room availability. Over the year there was a significant increase in the number of bookings, including several new regular users.
Policy on reserves
The CIO is operated as a value-for-money non-profit making charity. Any surplus of income over expenditure is held as a reserve for maintenance of the land and building.
The Trustees’ policy is to build up the reserves to a sustainable level by –
-
promoting the use of the Barnwood Reading Room to maximise utilisation and income, and
-
• keeping expenses under control,
with the aim of an annual contribution to reserves. In the long term this will ensure that the reserves:
-
keep pace with inflation
-
include a margin for contingencies (such as a future unforeseen event outside of the Trustees control which leads to closure of the Barnwood Reading Room for a temporary period)
-
are sufficient to cover maintenance costs, and
-
enable the Barnwood Reading Room to continue as a financially viable entity with good quality facilities on offer to its customers.
Financial review
During the Reporting Period, net operating income was £6,145.91, driven primarily by the increased income from room hires. Around half of this income was used to cover the one-off cost of the improvements described above. Allowing for one-off expenditure, the reserves increased by £3,208.76.
During the Reporting Period, inflation remained much higher than in recent years. This had a material impact on the price of electricity and gas. This was mitigated by careful adjustment of the temperature of the building via the remote-controlled thermostat. Also, the installation of smart meters has enabled energy use to be closely monitored.
In anticipation of increased costs, including more regular cleaning due to the higher usage, and considering the need to continue making an annual contribution to reserves, the Trustees have made a modest increase to the hourly rate of hire fees.
2
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
Future plans
The Trustees intend to:
-
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: 01 March 2024
3
Barnwood Reading Room CIO
Statement of Financial Activities
| Note Income from: Donations 4 Investments 5 Charitable activities 6 Total income Resources expended: Expenditure on charitable activities 7 Total resources expended Net incoming (outgoing) resources (Net movement in funds) 8 Total funds brought forward Total funds carried forward |
Reporting Period: 1 January 2023 to 31 December 2023 Previous Period*: 1 January 2022 to 31 December 2022 Total (£) Total (£) 59.64 58.18 - - 15,422.50 9,570.00 15,482.14 9,628.18 12,273.38 9,088.58 12,273.38 9,088.58 3,208.76 539.60 17,542.34 17,002.74 20,751.10 17,542.34 |
|---|---|
- As the figures shown for the Previous Period were prepared on a ‘consolidated’ basis, the income and expenditure in the Previous Period relates partly to the period before the merger when the Barnwood Reading Room was managed by the Unincorporated Charity, and partly to the period after the merger when it was managed by the CIO. The analysis on page 11 shows a breakdown of the income and expenditure in the Previous Period, split between the periods before and after the merger.
4
Barnwood Reading Room CIO
Balance Sheet
| Note Fixed assets Investments 3(f) Current assets: Cash at bank and in hand 9 Accounts receivable 10 Prepaid expenses 11 Total current assets Creditors: amounts falling due within one year Accounts payable 12 Accrued expenses 13 Total Creditors Net Current Assets Total assets less current liabilities The funds of the CIO: Unrestricted Funds 3(c) Total CIO funds |
Balance Sheet at 31 December 2023 Balance Sheet at 31 December 2022 Total (£) Total (£) |
|---|---|
| - - 21,475.88 17,652.60 240.00 (10.00) 581.48 650.03 |
|
| 22,297.36 18,292.63 |
|
| 1,200.00 (68.10) 346.26 818.39 |
|
| 1,546.26 750.29 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
These financial statements were approved by the Trustees and authorised for issue on 01 March 2024 and are signed on behalf of the Trustees by:
MD Scott Chair of the Trustees
RJ Crowhurst
Trustee and Treasurer
5
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 SORP (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).
To comply fully with the Charities SORP, the assets, liabilities and funds of the Unincorporated Charity and the CIO are aggregated and presented as though they had always been part of the same reporting charity.
3. Accounting policies
a) 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.
b) Going concern
There are no material uncertainties about the CIO’s ability to continue.
c) 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 and Previous Periods, the CIO’s funds were made up entirely of Unrestricted Funds.
6
Barnwood Reading Room CIO
Notes to the Financial Statements
d) 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.
e) 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.
f) Investments
The Charities SORP (FRS 102) specifies the accounting treatment of certain defined classes of investments. The CIO did not hold any such investments during the Reporting Period or the Previous Period.
4. Donations and legacies
2023: The donations of £59.64 are made up of ongoing regular donations of £45.93 and donations from Amazon Smile of £13.71. Amazon Smile is now discontinued
2022: The donations of £58.18 are made up entirely of ongoing regular donations
5. Investment income
The CIO did not receive or accrue any bank interest during the Reporting Period or the Previous Period.
6. Income from charitable activities
The income from charitable activities relates entirely to Room Hire.
7
Barnwood Reading Room CIO
Notes to the Financial Statements
7. Expenditure on charitable activities
The expenditure on charitable activities is split between regular expenditure and one-off expenditure, as shown below.
As the figures shown for the Previous Period were prepared on a ‘consolidated’ basis, they include expenditure on charitable activities relating partly to the period before the merger (when the Barnwood Reading Room was managed by the Unincorporated Charity) and partly to the period after the merger (when it was manged by the CIO).
Regular expenditure on charitable activities
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| Accounting System fees | 309.60 | 224.40 |
| Bathroom and Kitchen Supplies | 222.84 | 416.53 |
| Booking System Fees | 337.49 | - |
| Broadband | 576.00 | 506.50 |
| Business Rates | 42.97 | 61.30 |
| Caretaker | 823.00 | 560.00 |
| Cleaning | 1,902.00 | 1,753.00 |
| Domain Registration | 13.69 | 14.40 |
| Electricity Supply | 734.62 | 561.96 |
| Expenses for Room Hire / Events | - | 35.00 |
| Fire extinguisher / emergency lighting / Portable Appliance Tests |
213.07 | 271.85 |
| Gardening | 253.50 | 125.85 |
| Gas Servicing | 138.00 | 150.00 |
| Gas Supply | 2,291.64 | 977.97 |
| General Expenses | 5.98 | 10.00 |
| Insurance | 608.59 | 542.27 |
| Mobile Phone Receptionist | 340.00 | 170.00 |
| Music Licence | 125.80 | 43.76 |
| Postage and Packing | - | 3.00 |
| Square Fees | 24.81 | - |
| TV Licence | 159.00 | 13.25 |
| Water Supply | 213.63 | 179.59 |
| Total regular expenditure on charitable activities |
9,336.23 | 6,620.63 |
One-off expenditure on charitable activities
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| Fixtures and fittings | 1,271.77 | 2,288.92 |
| Repairs and maintenance | 1,665.38 | 179.13 |
| Total one-off expenditure on charitable activities |
2,937.15 | 2,467.95 |
Overall total
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| Overall total expenditure | 12,273.38 | 9,088.58 |
8
Barnwood Reading Room CIO
Notes to the Financial Statements
8. Net incoming (outgoing) resources
The net incoming (outgoing) resources are split into net operating income and net non-operating income, as shown below.
As the figures shown for the Previous Period were prepared on a ‘consolidated’ basis, they include net incoming (outgoing) resources relating partly to the period before the merger (when the Barnwood Reading Room was managed by the Unincorporated Charity) and partly to the period after the merger (when it was manged by the CIO).
Net Operating income
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| Donations | 59.64 | 58.18 |
| Regular income on charitable activities |
15,422.50 | 9,570.00 |
| Regular expenditure on Charitable activities |
(9,336.23) | (6,620.63) |
| Total net operating income |
6,145.91 | 3,007.55 |
Net non-operating income
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| One-off expenditure on Charitable activities |
(2,937.15) | (2,467.95) |
| Total net non-operating income |
(2,937.15) | (2,467.95) |
Overall total
| Reporting Period (£) | Previous Period (£) | |
|---|---|---|
| Overall total net incoming (outgoing) resources |
3,208.76 | 539.60 |
9
Barnwood Reading Room CIO
Notes to the Financial Statements
9. Cash in bank and in hand
2023: £21,475.88 made up of £21,373.88 in the NatWest current account, £2.00 petty cash and £100 held in the Square card payment system pending a refund of a deposit for a room hire
2022: consists entirely of a balance of £17,652.60 in the NatWest current account
10. Accounts receivable
2023: £240.00, made up of two invoices totalling £251.00, less a credit of £11.00 2022: consists entirely of a credit of £10.00
The credits are held by the CIO to offset against future invoices
11. Prepaid expenses
2023: Prepaid expenses £821.48 (2022: £650.03) are made up of:
| 31 December 2023 (£) | 31 December 2022 (£) | |
|---|---|---|
| Prepaid business rates | 8.76 | 21.62 |
| Prepaid domain registration | 2.38 | 1.68 |
| Prepaid electricity and gas supply | 292.35 | 346.93 |
| Prepaid music licence | 76.56 | 87.52 |
| Prepaid TV licence | 145.75 | 145.75 |
| Prepaid water supply | 55.68 | 46.53 |
12. Accounts payable
2023: £1,200.00 for decorating costs
2022: £(68.10) consisting of a credit of £100.00 issued by the electricity and gas supplier, offset by an expense claim of £31.90 that was settled just after the end of 2022
13. Accrued expenses
2023: £346.26, made up of £244.51 for electricity and gas usage in December 2023, £100 for the refund of a deposit for a room hire, and £1.75 in anticipated fees to Square for handling the refund
2022: £818.39, for electricity and gas usage from 13 November 2022 to 31 December 2022
14. Staff costs
The average head count of employees during the Reporting Period was nil (Previous Period: nil).
No employee received employee benefits of more than £60,000 during the Reporting Period or the Previous Period
15. Trustee remuneration and expenses
None of the Trustees received remuneration or incurred expenses during the Reporting Period or the Previous Period
16. Related parties
There were no disclosable related party transactions during the Reporting Period or the Previous Period
10
Barnwood Reading Room CIO
Analysis of Principal Components of Merger
1) Analysis of principal Statement of Financial Activities components for the Previous Period
(i.e. for 1 January 2022 to 31 December 2022)
| Total Income Total Expenditure Net movement in funds Total funds brought forward Total funds carried forward (31 December 2022) |
Unincorporated Charity £ CIO £ Combined Total £ 1,497.00 8,131.18 9,628.18 (1,077.51) (8,011.07) (9,088.58) |
|---|---|
| 419.49 120.11 539.60 16,996.74 6.00 17,002.74 |
|
| 17,416.23 126.11 17,542.34 |
2) Analysis of net assets at the date of merger (7 March 2022)
| Unincorporated Charity | CIO | Combined Total | |
|---|---|---|---|
| £ | £ | £ | |
| Net Assets | 17,416.23 | 6.00 | 17,422.23 |
| Represented by: | |||
| Unrestricted Funds | 17,416.23 | 6.00 | 17,422.23 |
11
Barnwood Reading Room CIO
Annual Report and Unaudited Financial Statements
For the Reporting Period 1 January 2023 to 31 December 2023
(including a comparison with the standalone accounts for the previous reporting period)
Barnwood Reading Room CIO
Legal and Administrative Information
Charity Trustees MR Bashford RJ Crowhurst BM Matheson (resigned 30 April 2023) MM Moutloatse (appointed 9 March 2023) PM Murphy MD Scott 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 Unincorporated Until 7 March 2022 the Barnwood Reading Charity Room was managed by the Charity for a Reading Room or Institute in the former parish of Barnwood (registered as a charity in England and Wales no. 251212)
Barnwood Reading Room CIO
Foreword
This version of the 2023 accounts for Barnwood Reading Room CIO includes a comparison with the ‘standalone’ version of the 2022 accounts.
Following the merger of the Unincorporated Charity with the CIO on 7 March 2022, ‘consolidated’ and ‘standalone’ versions of the 2022 accounts were produced. These dealt with the merger in different ways.
The ‘standalone’ version of the 2022 accounts did not aggregate the assets, liabilities and funds of the Unincorporated Charity and the CIO, nor present them as though they had always been part of the same reporting charity.
Instead, in the 2022 ‘standalone’ version the transfer of the assets and liabilities from the Unincorporated Charity to the CIO on the merger date was shown separately.
Separate ‘consolidated’ version
To comply with accounting standards[1] regarding the merger of the Unincorporated Charity with the CIO, a separate ‘consolidated’ version of the 2022 accounts was prepared, which aggregated the assets, liabilities and funds of the Unincorporated Charity and the CIO and presented them as though they had always been part of the same reporting charity.
The difference between the two versions of the 2022 accounts does not affect the figures for the statement of financial activities during 2023. This is because the merger of the Unincorporated Charity with the CIO took place before 2023.
1 Paragraphs 21.1 to 27.16 of 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).
Barnwood Reading Room CIO
Contents
| Page | |
|---|---|
| Trustees’ Report | 1 - 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 - 11 |
| Paying Agent: Cash Under Management | 12 |
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
The Charity Trustees (“the Trustees ”) of Barnwood Reading Room CIO (“the CIO ”) present their report and financial statements for the period from 1 January 2023 to 31 December 2023 (“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 (resigned 30 April 2023) MM Moutloatse (appointed 9 March 2023) PM Murphy MD Scott
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. These should 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.
1
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
Objectives and activities
In the constitution, the objectives of the CIO are described as the provision and maintenance of the village hall located at 146 Barnwood Road, Gloucester, GL4 3JT for the use of the inhabitants of Barnwood and the neighbourhood (broadly representing 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
During the Reporting Period, the following improvements were made to the facilities provided at the Barnwood Reading Room:
-
Installation of a new electrical consumer unit; and
-
Re-decoration of the main hall, below new picture rails.
The new bookings system continued to be used successfully. A calendar is published on the website showing room availability. Over the year there was a significant increase in the number of bookings, including several new regular users.
Policy on reserves
The CIO is operated as a value-for-money non-profit making charity. Any surplus of income over expenditure is held as a reserve for maintenance of the land and building.
The Trustees’ policy is to build up the reserves to a sustainable level by –
-
promoting the use of the Barnwood Reading Room to maximise utilisation and income, and
-
keeping expenses under control,
with the aim of an annual contribution to reserves. In the long term this will ensure that the reserves:
-
keep pace with inflation
-
include a margin for contingencies (such as a future unforeseen event outside of the Trustees control which leads to closure of the Barnwood Reading Room for a temporary period)
-
are sufficient to cover maintenance costs, and
-
enable the Barnwood Reading Room to continue as a financially viable entity with good quality facilities on offer to its customers.
Financial review
During the Reporting Period, net operating income was £6,145.91, driven primarily by the increased income from room hires. Around half of this income was used to cover the one-off cost of the improvements described above. Allowing for one-off expenditure, the reserves increased by £3,208.76.
During the Reporting Period, inflation remained much higher than in recent years. This had a material impact on the price of electricity and gas. This was mitigated by careful adjustment of the temperature of the building via the remote-controlled thermostat. Also, the installation of smart meters has enabled energy use to be closely monitored.
In anticipation of increased costs, including more regular cleaning due to the higher usage, and considering the need to continue making an annual contribution to reserves, the Trustees have made a modest increase to the hourly rate of hire fees.
2
Barnwood Reading Room CIO
Trustees’ Report for the period 1 January 2023 to 31 December 2023
_____________
Paying agent: cash under management
During the Reporting Period, there was no cash under management for a third party.
In August 2021, the trustees of the Unincorporated Charity appointed the CIO to act as its paying agent on a temporary basis. This ceased when the Unincorporated Charity merged with the CIO in March 2022, with the cash under management transferred in full to the CIO. Details of the cash under management for this purpose, not only during 2022 but also in 2021, are shown on page 12.
Future plans
The Trustees intend to:
-
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: 01 March 2024
3
Barnwood Reading Room CIO
Statement of Financial Activities
| Note Income from: Donations 4 Investments 5 Charitable activities 6 Total income Resources expended: Expenditure on charitable activities 7 Total resources expended Net incoming (outgoing) resources 8 Merger with Unincorporated Charity Transfer of assets and liabilities 14 Net movement in funds Total funds brought forward Total funds carried forward |
Reporting Period: 1 January 2023 to 31 December 2023 Previous Period*: 1 January 2022 to 31 December 2022 Total (£) Total (£) 59.64 56.18 - - 15,422.50 8,075.00 |
|---|---|
| 15,482.14 8,131.18 |
|
| 12,273.38 8,011.07 |
|
| 12,273.38 8,011.07 |
|
| 3,208.76 120.11 - 17,416.23 |
|
| 3,208.76 17,536.34 |
|
| 17,542.34 6.00 |
|
| 20,751.10 17,542.34 |
- As the figures shown for the Previous Period were prepared on a ‘standalone’ basis, all of the income and expenditure in the Previous Period relates only to the period after the merger date (7 March 2022). This is because the activities before the merger date were carried out by the Unincorporated Charity.
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Barnwood Reading Room CIO
Balance Sheet
| Note Fixed assets Investments 3(f) Current assets: Cash at bank and in hand 9 Accounts receivable 10 Prepaid expenses 11 Total current assets Creditors: amounts falling due within one year Accounts payable 12 Accrued expenses 13 Total Creditors Net Current Assets Total assets less current liabilities The funds of the CIO: Unrestricted Funds 3(c) Total CIO funds |
Balance Sheet at 31 December 2023 Balance Sheet at 31 December 2022 Total (£) Total (£) |
|---|---|
| - - 21,475.88 17,652.60 240.00 (10.00) 581.48 650.03 |
|
| 22,297.36 18,292.63 |
|
| 1,200.00 (68.10) 346.26 818.39 |
|
| 1,546.26 750.29 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
|
| 20,751.10 17,542.34 |
These financial statements were approved by the Trustees and authorised for issue on 01 March 2024 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 SORP (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).
However, the comparators for the Previous Period are not aggregated and not presented as though the assets, liabilities and funds of the Unincorporated Charity and the CIO had always been part of the same reporting charity. Instead, the transfer of the assets and liabilities from the Unincorporated Charity to the CIO on the merger date is shown.
A separate version of these financial statements has been prepared showing the ‘consolidated’ version of the comparators for the Previous Period, where the assets, liabilities and funds of the Unincorporated Charity and the CIO are aggregated and are presented as though they had always been part of the same reporting charity.
3. Accounting policies
a) 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.
b) Going concern
There are no material uncertainties about the CIO’s ability to continue.
c) 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 and Previous Periods, the CIO’s funds were made up entirely of Unrestricted Funds.
Barnwood Reading Room CIO
Notes to the Financial Statements
d) 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.
e) 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.
f) Investments
The Charities SORP (FRS 102) specifies the accounting treatment of certain defined classes of investments. The CIO did not hold any such investments during the Reporting Period or the Previous Period.
4. Donations and legacies
2023: The donations of £59.64 are made up of ongoing regular donations of £45.93 and donations from Amazon Smile of £13.71. Amazon Smile is now discontinued
2022: The donations of £58.18 are made up entirely of ongoing regular donations
5. Investment income
The CIO did not receive or accrue any bank interest during the Reporting Period or the Previous Period.
6. Income from charitable activities
The income from charitable activities relates entirely to Room Hire.
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Barnwood Reading Room CIO
Notes to the Financial Statements
7. Expenditure on charitable activities
The expenditure on charitable activities is split between regular expenditure and one-off expenditure, as shown below.
As the figures shown for the Previous Period were prepared on a ‘standalone’ basis, there is no expenditure on charitable activities relating to the period before the merger date. This is because the activities before the merger date were carried out by the Unincorporated Charity.
Regular expenditure on charitable activities
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| Accounting System fees | 309.60 | 174.00 |
| Bathroom and Kitchen Supplies | 222.84 | 345.95 |
| Booking System Fees | 337.49 | - |
| Broadband | 576.00 | 427.50 |
| Business Rates | 42.97 | 53.76 |
| Caretaker | 823.00 | 500.00 |
| Cleaning | 1,902.00 | 1,442.50 |
| Domain Registration | 13.69 | 12.00 |
| Electricity Supply | 734.62 | 504.83 |
| Expenses for Room Hire / Events | - | 35.00 |
| Fire extinguisher / emergency lighting / Portable Appliance Tests |
213.07 | 271.85 |
| Gardening | 253.50 | 125.85 |
| Gas Servicing | 138.00 | 150.00 |
| Gas Supply | 2,291.64 | 826.28 |
| General Expenses | 5.98 | 10.00 |
| Insurance | 608.59 | 451.80 |
| Mobile Phone Receptionist | 340.00 | 170.00 |
| Music Licence | 125.80 | 43.76 |
| Postage and Packing | - | 3.00 |
| Square Fees | 24.81 | - |
| TV Licence | 159.00 | 13.25 |
| Water Supply | 213.63 | 152.98 |
| Total regular expenditure on charitable activities |
9,336.23 | 5,714.31 |
One-off expenditure on charitable activities
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| Fixtures and fittings | 1,271.77 | 2,117.63 |
| Repairs and maintenance | 1,665.38 | 179.13 |
| Total one-off expenditure on charitable activities |
2,937.15 | 2,296.76 |
Overall total
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| Overall total expenditure | 12,273.38 | 8,011.07 |
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Barnwood Reading Room CIO
Notes to the Financial Statements
8. Net incoming (outgoing) resources
The net incoming (outgoing) resources are split into net operating income and net non-operating income, as shown below.
As the figures shown for the Previous Period were prepared on a ‘standalone’ basis, there are no net incoming (outgoing) resources relating to the period before the merger date. This is because the activities before the merger date were carried out by the Unincorporated Charity.
Net Operating income
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| Donations | 59.64 | 56.18 |
| Regular income on charitable activities |
15,422.50 | 8,075.00 |
| Regular expenditure on Charitable activities |
(9,336.23) | (5,714.31) |
| Total net operating income |
6,145.91 | 2,416.87 |
Net non-operating income
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| One-off expenditure on Charitable activities |
(2,937.15) | (2,296.76) |
| Total net non-operating income |
(2,937.15) | (2,296.76) |
Overall total
| Reporting Period (£) | Previous Period (£) (after merger date) |
|
|---|---|---|
| Overall total net incoming (outgoing) resources |
3,208.76 | 120.11 |
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Barnwood Reading Room CIO
Notes to the Financial Statements
9. Cash in bank and in hand
2023: £21,475.88 made up of £21,373.88 in the NatWest current account, £2.00 petty cash and £100 held in the Square card payment system pending a refund of a deposit for a room hire
2022: consists entirely of a balance of £17,652.60 in the NatWest current account
10. Accounts receivable
2023: £240.00, made up of two invoices totalling £251.00, less a credit of £11.00 2022: consists entirely of a credit of £10.00
The credits are held by the CIO to offset against future invoices
11. Prepaid expenses
31 December 2023: Prepaid expenses £821.48 (2022: £650.03) are made up of:
| 31 December 2023 (£) | 31 December 2022 (£) | |
|---|---|---|
| Prepaid business rates | 8.76 | 21.62 |
| Prepaid domain registration | 2.38 | 1.68 |
| Prepaid electricity and gas supply | 292.35 | 346.93 |
| Prepaid music licence | 76.56 | 87.52 |
| Prepaid TV licence | 145.75 | 145.75 |
| Prepaid water supply | 55.68 | 46.53 |
12. Accounts payable
2023: £1,200.00 for decorating costs
2022: £(68.10) consisting of a credit of £100.00 issued by the electricity and gas supplier, offset by an expense claim of £31.90 that was settled just after the end of 2022
13. Accrued expenses
2023: £346.26, made up of £244.51 for electricity and gas usage in December 2023, £100 for the refund of a deposit for a room hire, and £1.75 in anticipated refund handling fees to the Square card payment system
2022: £818.39, for electricity and gas usage from 13 November 2022 to 31 December 2022
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Barnwood Reading Room CIO
Notes to the Financial Statements
14. Merger with Unincorporated Charity: transfer of assets and liabilities
The breakdown of the transfer on the merger date (7 March 2022) is as follows:
| Transfer of: | £ |
|---|---|
| a) Cash held by the Unincorporated Charity | 14,276.71 |
| b) Cash held under management by the CIO on behalf of the Unincorporated Charity |
2,954.14 |
| c) Asset representing amounts due in respect of unpaid invoices issued by the Unincorporated Charity |
292.50 |
| d) Asset representing prepaid expenses held by the Unincorporated Charity |
487.60 |
| e) Liability for amounts owing in respect of credit notes issued by the Unincorporated Charity |
(32.50) |
| f) Liability for unpaid expenses accrued by the Unincorporated Charity |
(167.22) |
| g) Liability for invoices issued by the Unincorporated Charity before the merger date for the hire of the Barnwood Reading Room on dates after the merger date. Note: As they are for the hire of the Barnwood Reading Room on dates after the merger date, these invoices are recorded in the accounts of the CIO as post-merger income. In effect, the Unincorporated Charity had issued these invoices on behalf of the CIO and it owed the CIO an amount equivalent to the total of the amounts stated on these invoices. |
(395.00) |
| Total transfer of assets and liabilities | 17,416.23 |
15. Staff costs
The average head count of employees during the Reporting Period was nil (Previous Period: nil).
No employee received employee benefits of more than £60,000 during the Reporting Period or the Previous Period
16. Trustee remuneration and expenses
None of the Trustees received remuneration or incurred expenses during the Reporting Period or the Previous Period
17. Related parties
There were no disclosable related party transactions during the Reporting Period or the Previous Period
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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 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 (£1.00 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").
On the merger date (7 March 2022) the balance on the NatWest bank account was £2,960.14, made up of:
-
the £6.00 donation to the CIO; and
-
£2,954.14 of cash under management.
The change in cash under management is summarised below.
| Cash under management Opening amount Initial amount of cash under management (deposit made mid- way through the Initial Period) Plus: Income collected on behalf of the Unincorporated Charity Less: Expenses settled on behalf of the Unincorporated Charity Transfer to the CIO Closing amount |
Notes | Reporting Period1 1 January 2023 to 31 December 2023 Previous Period 2 1 January 2022 to 31 December 2022 Initial Period 3 15 February 2021 to 31 December 2021 Total (£) Total (£) Total (£) |
|---|---|---|
| A B, C B, C D |
- 2,617.00 - - - 994.00 - 1,595.07 2,999.06 - (1,257.93) (1,376.06) - (2,954.14) - |
|
| E | - - 2,617.00 |
1 During the Reporting Period, there was no cash under management for a third party
2 During the Previous Period, the cash under management was transferred to the CIO
3 During the Initial Period, 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 Previous Period occurred between 1 January 2022 and 7 March 2022.
-
C The income collected and expenses settled during the Initial Period occurred between 2 August 2021 and 31 December 2021.
-
D Ownership of the cash under management was transferred to the CIO on 7 March 2022.
-
E The cash under management was included in the Unincorporated Charity's accounts.
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