THE LOPPING ENDOWMENT (Registered charity no. 228236)
known as
LOUGHTON LOPPING ENDOWMENT FUND
REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
| LOUGHTON LOPPING ENDOWMENT FUND | |
|---|---|
| REPORT AND FINANCIAL STATEMENTS | |
| For the year ended 31 December 2020 | |
| CONTENTS | |
| Reference and administrative information | 3 |
| Directors' report | 4 |
| Independent Examiner’s Report | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 |
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LOUGHTON LOPPING ENDOWMENT FUND
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS DIRECTORS AND ADVISERS
For the year ended 31 December 2020
Sole corporate trustee: The Lopping Endowment Corporate Trustee Limited
Directors of The Lopping Endowment Corporate Trustee Limited
Elected Directors from May 2017, (when Director status changed): Alan Martin John Orgar Sonia Lard Resigned 7 August 2020 Becky Ford Lindon Barr Garett Fitzgerald Appointed March 2021 Council appointed director Cllr Jayna Jogia Assumed Directors - under the trust deed Martin Howarth Treasurer Paul Mercer RIBA Secretary Mr S Radley Employees John Mahoney Hall Manager Les House Deputy Hall Manager (Health & Safety, Security and Child Protection) Diane Peters Assistant Hall Manager
Charity reg. no. 228236
The Lopping Endowment Corporate Trustee Limited Company number 09943247
Registered office Lopping Hall 189 High Road Loughton IG10 4LF Accountants Cooper Paul Abacus House 14-18 Forest Road Loughton Essex IG10 1DX Bankers HSBC 191 High Road Loughton IG10 4LN Solicitors Foskett, Marr, Gadsby & Head 106-108 High Road Loughton IG10 4HN
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LOUGHTON LOPPING ENDOWMENT FUND
DIRECTORS' REPORT
For the year ended 31 December 2020
The Board of Directors submit their annual report and the financial statements of Loughton Lopping Endowment Fund for the year. The Directors confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity's governing document and the Charities SORP (FRS 102 ‘Accounting and Reporting by Charities.
Structure, governance and management - and change this year.
The charity was set-up by a scheme in 1881, as varied by a scheme in 1993.
The charity is set-up for the benefit of the householders of Loughton, in substitution for their ancient right of lopping within Epping Forest to carry on and maintain Lopping Hall, which was erected for the purpose.
Directors are elected by the parishioners of the ancient parish at an Annual General Meeting. In addition, the Loughton Town Council appoints one trustee as its representative pursuant to the Local Government Act 1894.
The Directors have, as discussed at various member meetings, set-up a "corporate trustee", "The Lopping Endowment Corporate Trustee Limited", and that body is now the sole trustee of the charity. That company has responsibilities of the Directors. This has been agreed by the Charity Commission, and with effect from May 2018 the AGM elected the directors for that company, rather than electing individual Directors.
Chairman’s report
This report covers our financial year to December 2020 and developments so far in 2021.
Hall usage
The pandemic has seriously impacted our income from bookings. The initial instruction to close named businesses was made by the Prime Minster on the night of March 20th 2020
Given improved marketing and upgraded Hall facilities, our original target for this financial year (2020) was increased from approx. £54,000 (2019) to £65,000.
In my last report (Addendum dated June 2020), I stated that due to the epidemic, our total bookings for 2020 were expected to be around £40,000 and this assumed that bookings in Q3 and Q4 remained fairly stable.
Unfortunately, lockdown restrictions were extended and as I write this report, a full re-opening of the Hall is not expected until May 17th 2021. Even then, we do not expect to see Theatre groups returning until June or July for rehearsals.
2019 £55,711. Actual.
2020 £24,213. Actual.
Room letting rate review
The Board of Directors agreed that modest increases to our room letting rates, that were to be applied from April 2020, would not be applied until the Government confirmed that “normal activities” could resume.
When this report was written, this was likely to be in June 2021 and we have therefore agreed that:
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Our room letting base rates (Before any agreed discounts are applied) will be increased from January 2022 by between £1.00 - £2.00 per hour dependent on the type of user – For example, not for profit Groups, or small organisations. We will give at least two months advance notice to all users.
Rates for Commercial Organisations are agreed with individual users and dependent on such factors as the required room package and whether a day or an evening booking.
Theatre complex and Theatre Suite.
The base rates for the Theatre complex (Theatre productions), which includes the Main Hall (Auditorium), Stage, Backstage and Changing rooms and the Theatre Suite (Parties and conferences), which includes the Main Hall, Kitchen and Bar, are also negotiated with individual users.
These rates will be increased from January 2022 and these changes will be discussed with our regular Theatre Groups at least two months in advance of implementation.
Our rates have remained at the same level for three years. During this period fixed and semi fixed costs have increased and at the same time we have made considerable progress in modernising and renovating our facilities.
Commercial Tenants Rent review
The rent that we receive from our two commercial tenants is reviewed every 5 years. There was therefore no increase in 2020 for Whitney’s Carpet shop.
As a rent review was due in March 2021, we started to review the lease with HSBC in December 2020.
HSBC subsequently advised that they were closing the Loughton branch in August 2021 as part of a UK wide reduction in their high street network, covering 82 branch closures.
At the time of writing this report, we have appointed Bennett Phillips Luton to handle both the marketing and dilapidations connected with this unit.
Marketing and LH new website.
Our new style website that went live in December 2019 has been further improved and I would like to thank Jayna for the many hours of work she has put into this project.
We have also produced a new leaflet to advertise our user groups and our rooms for hire and I would like to thank Becky for completing the artwork.
We have placed a further monitor on the front window to advertise the rooms for hire at Lopping Hall, together with a “What’s on” feature for Theatre groups.
The original and larger monitor shows our user groups and their activities.
Works Completed
Further measures were taken to ensure that we continued to be a “COVID-19” secure facility, to include increased sanitiser stations, signage and room safety assessments.
Old wood and signage was removed from the exterior and interior of the front window area.
New electrical connections for the monitors were installed, the area was painted and new signage was put up.
Given that we currently have a very small entrance fronting the High Road, it is essential that this area is attractive, inviting and informative. I would like to thank Jayna for handling the artwork and designing a new logo
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The sandstone stairs to the Basement were removed, as over time cracks had appeared and we considered these stairs to be unsafe. A new high quality protected wooden staircase was designed and installed by Four Square Building Services. The safety lighting in this area was improved to cover the stairwell and basement.
There was a flash flood in Loughton in August 2020 which blocked the Loughton High Road drainage. This affected many businesses near Lopping Hall.
We had up to two inches of standing water cover the entire ground floor and up to twenty inches deposited in the basement, which houses the central heating system.
The ground floor areas had just been painted and because the skirting at floor level had been sealed, damage to this area was limited. Thank you to those that came in and helped to pump out the water and clean up. We have since purchased a standby emergency pump and flood barrier kit
The central heating system was written off by our insurers and we now have a state-of-the art system that will keep the whole building at the required temperature and should reduce both our consumption of gas and related maintenance costs.
During the Pandemic we have taken the opportunity to repair and paint the stairwell and upper lobby areas, improve lighting and electrics, install WIFI access points in the Main Hall, Willingale and small Hall and connect a PA / Music system to both floors.
Future Plans 2021 / 2022
In some cases, these plans may not be completed if matched funding cannot be agreed. In other cases, works will be carried out using reserves.
Changing rooms. 2021
This area will be partly refurbished, to include the toilets and we hope to carry this out during July – September 2021.
Stage re-design. 2022 - 2023
The stage and Proscenium Arch will be stripped out and the design will allow us to construct a large under stage storage area, accessed using trollies on tracks. This will allow us to increase the use of the Hall by Theatre and other groups requiring storage.
Storage charges may apply.
Front door. 2023
The entrance will be re-designed to include an automatically operated sliding door. This upgrade is desirable, if not essential, given the difficulty of accessing the property using the swing doors, especially for those with children, prams and the infirm.
The window and door set will be moved further out towards the pavement and the cost is therefore considerable. As a result, this may not be possible until the summer of 2023.
Current signage and monitors can be reused in this design.
Stage Lighting and sound. 2021 - 2023
Because of the costs involved, this will happen in two stages. The first part will involve the installation of a basic lighting set and control board that will be sufficient for small performances. This will allow LH staff and those so authorised, to quickly set up and operate stage lighting, without the need to bring in a professional lighting and sound Company.
A sound system suitable for Jazz evenings, other small performances and Corporate events, will also be installed.
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The second part will involve the upgrading of the old lighting patch panel which uses 3 pin round sockets to control lighting via a DMX controller and replace this with a modern lighting control system. This will integrate with the system installed in the first stage upgrade.
Full lighting and sound set-ups for major stage performances will still be handled by outside contractors, such as Terry Tew Sound and Lighting.
Financial reserves.
Taking into account the reduced income from room bookings and some reduction in expenditure during the pandemic and given the receipt of HMG grants, The Board of Directors consider that our current financial reserves will allow us to fully re-open and operate effectively during the balance of 2021 and at least into Q2 / 2022.
This assumes that when we reopen, booking levels will be at least 60% of normal levels and that we will re-lease the property that is now HSBC within twelve months from August 2021.
I would like to thank my fellow Directors and Hall Management for their help and support over the past year.
Alan Martin
April 2021.
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LOUGHTON LOPPING ENDOWMENT FUND
For the year ended 31 December 2020
Independent examiner’s report to the Trustees of Loughton Lopping Endowment Fund Trust
I report to the trustees on my examination of the accounts of the Loughton Lopping Endowment Fund (the Trust) for the year ended 31 December 2020, which are set out on pages 9 to15.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011(‘the Act’).
I report in respect of my examination of the Trustee’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commissioner under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Andrew Gibson BA BFP FCA Cooper Paul Abacus House 14-18 Forest Road Loughton Essex IG10 1DX Cooper Paul
Dated:
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LOUGHTON LOPPING ENDOWMENT FUND
STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2020
| Note Unrestricted Endowment Incoming Resources & Restricted Funds Funds 2020 2020 £ £ Grant from Epping Forrest DC 48,308 - Rental of bank, shop 69,993 - Land & buildings revaluation - 950,200 Lettings of Hall and Rooms 24,213 - Gallery 2 1,821 - Loughton Arts Centre (nett) 490 - Bank & other interest 28 - Investment income 91 - Sundry receipts 2,510 Fundraising events, and donations - - Total Incoming Resources 147,454 950,200 Resources Expended Gallery 2 1,072 - Loughton Arts Centre Premises costs, inc loan interest 3 81,041 5,615 Other expenses 4 14,861 12,962 Total Resources Expended 96,974 18,577 Net incoming/(outgoing) resources 50,480 931,623 TOTAL FUNDS AT 1 JANUARY 2020 121,847 770,278 TOTAL FUNDS AT 31 DECEMBER 2020 12 172,327 1,701,901 |
Total Funds 2020 £ 48,308 69,993 950,200 24,213 1,821 490 28 91 2,510 - 1,097,654 1,072 86,656 27,823 115,551 982,103 892,125 1,874,228 |
Total Funds 2019 £ 5,000 54,954 - 55,711 3,021 - 59 108 - 20,577 |
|
|---|---|---|---|
139,430 |
|||
2,404 148,483 28,814 |
|||
179,701 |
|||
(40,271) |
|||
932,396 |
|||
892,125 |
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LOUGHTON LOPPING ENDOWMENT FUND BALANCE SHEET
As at 31 December 2020
| Notes FIXED ASSETS Tangible assets 7 Investments 8 CURRENT ASSETS Debtors 9 Cash at bank and in hand Total CREDITORS: amounts falling due 10 within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after one year NET ASSETS FUNDS Endowment fund Restricted funds Unrestricted funds: General fund |
12,933 85,480 98,413 (20,357) |
2020 1,941,492 711 1,942,203 78,056 2,020,259 (146,031) 1,874,228 1,701,901 172,327 1,874,228 |
4,368 55,990 60,358 (20,262) |
2019 1,004,137 711 |
|---|---|---|---|---|
| 1,004,848 40,096 |
||||
1,044,944 (152,819) |
||||
892,125 |
||||
770,278 121,847 |
||||
892,125 |
The financial statements were approved, and authorised for issue, by the Trustees on 2021 and signed on their behalf by:
Alan Martin
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LOUGHTON LOPPING ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention and in accordance with 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 (FRS 102) (effective 1 January 2015. The financial statements have been prepared under the historical cost convention.
The effects of events relating to the year ended 31 December 2020 which occurred before the date of approval of the financial statements by the Executive Committee has been included in the financial statements to the extent required to show a true and fair view of the state of affairs at 31 December 2020 and the results for the year ended on that date.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity and which have not been designated for other purposes.
Endowment funds comprise funds that are to be retained in line with the original funder bequest. As the building is held in the Endowment improvements, depreciation, and the loan liability are all included as part of that balance.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Statutory grants which are given as contributions towards the Charity's core services are treated as unrestricted.
Incoming resources
All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
Income tax recoverable in relation to investment income or Gift Aid donations is recognised at the time the relevant income is receivable.
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LOUGHTON LOPPING ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
Resources Expended
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred. However, the basis on which the Charity is now VAT registered, means that input VAT is currently recoverable.
Investments
Investments are stated at cost value at the balance sheet date.
Tangible fixed assets and depreciation
All assets costing more than £500 are capitalised.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Buildings - Over 50 years by equal amounts each year Furniture, fittings & equipment - 15% of reducing balance each year
2. GALLERY ACTIVITIES
| Gallery income for year Gallery expenditure for the year Net profit for year 3. PREMISES COSTS Unrestricted Endowment Funds Funds 2020 2020 £ £ Personnel costs 29,040 - Cleaning - contract 7,776 - District rates and utilities 4,556 - Maintenance contracts 5,326 - Telephone 672 - Building maintenance, repairs and renewals 28,894 - (net of recharges to tenants, & any insurance recovery) Loan interest and charges - 5,615 Insurance 4,777 - (net of recharges to tenants) 81,041 5,615 |
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|---|---|---|
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LOUGHTON LOPPING ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
| 4. OTHER EXPENSES Unrestricted Endowment Funds Funds 2020 2020 £ £ Accountancy fees 570 Print, post and stationery 733 - Depreciation 5,557 12,962 Legal & professional fees 3,983 - Sundry expenses 4,018 - 14,861 12,962 |
Total Funds 2020 £ 570 733 18,519 3,983 4,018 27,823 |
Total Funds 2019 £ 550 62 18,499 4,509 5,194 |
|---|---|---|
28,814 |
5. STAFF COSTS
Premises manager's salary, secretary honorarium, and part time staff
6. DIRECTORS
During the year, no Directors received any remuneration (2019 - the same). Mr Alan Martin received £6,758 (2019: £7,144 in respect of the reimbursement of expenses for materials.
7. TANGIBLE FIXED ASSETS
| Land and buildings Furniture, furnishings and equipment £ £ Cost At 1 January 2020 as revalued 1,086,908 98,106 Transfer from Gallery - 5,674 Revaluation 950,200 Additions - - At 31 December 2020 2,037,108 103,780 Depreciation At 1 January 2020 114,146 66,731 Charge for the year 12,962 5,557 At 31 December 2020 127,108 72,288 Net book value At 31 December 2019 191,635 31,375 At 31 December 2020 1,910,000 31,492 |
Total £ 1,185,014 5,674 950,200 -- 2,140,888 180,877 18,519 199,396 1,004,137 1,941,492 |
|---|---|
A professional valuation of the building of £1,910,000 as at 18 December 2020 was received on 3 March 2021 from James Berlin Associates. It is estimated that the building constitutes half the value of the premises, and this element is amortised by 2% pa. The original cost of the land and building was £3,667. The charity has embarked on a major refurbishment programme. Note 3 refers to recent major repairs.
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LOUGHTON LOPPING ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
8. INVESTMENTS 2020
| 8. INVESTMENTS 2020 | |||
|---|---|---|---|
| The investments are shown at cost. Market value 9. DEBTORS Due within one year Trade debtors VAT Prepayments 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts Trade creditors VAT due Accruals Deferred income 11. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR Bank loans - Triodos |
2020 £ 711 1,801 2020 £ 4,897 3,046 4,990 12,933 2020 £ 8,000 9,347 - 1,010 2,000 20,357 2020 £ 146,031 |
2019 £ 711 2,318 2019 £ - - 4,368 4,368 2019 £ 8,000 6,196 3,344 722 2,000 20,262 2019 £ 152,819 |
2019 £ 711 2,318 2019 £ - - 4,368 4,368 |
2019 £ 8,000 6,196 3,344 722 2,000 |
|||
20,262 |
The charity took out a 25 year loan of £200,000 from Triodos Bank NV with the first draw-down in May 2012. The loan is secured by way of a first charge on the freehold premises, is at a rate of base rate + 3% (subject to a minimum rate of 3.5%), and capital payments began from May 2013.
The element of the loan repayable in the coming year is included in short-term creditors, note 10.
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LOUGHTON LOPPING ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
12. STATEMENT OF FUNDS
| 12. STATEMENT OF FUNDS | ||
|---|---|---|
| Brought Forward £ ENDOWMENT FUND Building & initial fund 892,125 SUMMARY OF FUNDS General Funds 121,847 Endowment fund 770,278 892,125 |
Transfers and Incoming Resources Investment Carried Resources Expended gains/(losses) Forward £ £ £ £ 1,097,654 (115,551) - 1,874,228 147,454 (96,974) - 172,327 950,200 (18,577) - 1,701,901 1,097,654 (115,551) - 1,874,228 |
|
| 172,327 1,701,901 |
||
| 1,874,228 |
Endowment fund - revaluation and mortgage loan
As part of the process of obtaining the mortgage to fund major repairs and improvements to the Hall a valuation was obtained. The mortgage is secured on the premises, and is therefore reflected as a deduction from the endowment fund.
Endowment fund - revaluation and mortgage loan
Included in the Endowment fund is the revaluation reserve of £1,701,901 (2019: £770,278)
The investments, previously considered to be an unspent element of the initial fund, have, in light of improvements funded by unrestricted income, been re-categorised as unrestricted.
13. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Endowment Restricted Funds Funds 2020 2020 £ £ Tangible fixed assets 1,910,000 - Investments - - Net current assets (8,000) - Creditors due in more than one year (146,031) - 1,755,969 - |
General Funds 2020 £ 31,492 711 86,056 - 118,259 |
Total Funds 2020 £ 1,941,492 711 78,056 (146,031) 1,874,228 |
Total Funds 2019 £ 1,004,137 711 40,096 (152,819) 892,125 |
|
|---|---|---|---|---|
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