Charity registration number: 254992
Avenons Charity
Annual Report and Financial Statements
for the Year Ended 31 March 2021
Brooks Green Registered Auditors Chartered Accountants & Registered Auditors Abbey House 342 Regents Park Road London N3 2LJ
Avenons Charity
Contents
| Trustees' Report | 1 to 3 |
|---|---|
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 12 |
Avenons Charity
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021.
Objectives and activities
Objects and aims
The Charity's historic assets were buildings, the income from which was used for the benefit of West Ham Parish Church, until most of the properties became the subject of compulsory purchase, and the proceeds of these disposals were invested. The Charity's last property was sold in March 2004. Following that, the Charity's sole source of income is investment income. This is used both to assist with the costs of maintaining the fabric of West Ham Parish Church (a Grade I listed building over 900 years old), and to support the services that the Church is able to provide to the community.
One of the Trustees' main objectives is for the long term, so to manage their contributions to provide for part of the cost of work on the fabric of West Ham Church as to ensure the continuing viability of Avenon's Trust. As to grants in support of the church's regular budget, they take careful account of the need so to use the Avenons funds that the congregation are not discouraged from raising their individual giving to church as a sign of part of their Christian commitment.
Objectives, strategies and activities
2020/21, like the years immediately before, was a period of operating with reduced funds as a result of the recent expenditure on major work on the West Ham church building. Avenons continues to assist with items to improve the practical operation of the church, and to make monthly payments to the church to help meet various regular commitments.
In 2020/21, church activities and income were adversely affected by the Covid-19 lockdown and restrictions.
Public benefit
The Trustees consider that public benefit in the locality arises from the support of West Ham Church, the work of which is an expression of the Christian faith.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Grant making policies
The Charity makes an annual donation of £5.20 to the West Ham United Non-Ecclesiastical Charities.
Page 1
Avenons Charity
Trustees' Report
Structure, governance and management
Nature of governing document
Avenons Charity is constituted under a Deed of Trust, and registered with the Charity Commission (No 254992).
Under this constitution, the Trustees of the Charity are the incumbent of West Ham Parish Church, the currently elected Churchwardens, and two persons nominated by the Bishop of Chelmsford. The Trustees who served during the year to 31st March 2020 were:
Vicar of West Ham:
There was no vicar in office during the year.
Churchwardens: Mr M Serwadda Mrs P Bhuruogu
Bishop's Nominees (from March 2021): Rev Nicholls Ms J Driver Ms L Malcolm Mr W Johnson
Arrangements for setting key management personnel remuneration
The Charity does not employ anyone, but is administered on behalf of the Trustees by its Clerk and Receiver: Dr R J Meadway, 4 Glebe Avenue, Woodford Green, Essex IG8 9HB.
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Avenons Charity
Trustees' Report
Major risks and management of those risks
Investment risk
As to the management of their capital assets, the Trustees continue to minimise the risk of avoidable loss by diversification of equity holdings. The Trustees consider that one particular risk in their activities is that their capital might be depleted due to short term factors at a time when work on the fabric makes a significant call on their resources. The dilemma is whether to keep more of the fund liquid, which could mean a loss in income and possible capital growth, or by failing to do this to risk a capital loss as a result of having to sell investments at an inappropriate time. The Trustees continue to review the position with their fund managers and consider that the previous conclusions remained valid in general, but against the risk of the unexpected, some holding of cash reserves should continue.
The annual report was approved by the trustees of the charity on 16 February 2022 and signed on its behalf by:
......................................... J Driver Trustee
Page 3
Avenons Charity
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 16 February 2022 and signed on its behalf by:
......................................... J Driver Trustee
Page 4
Avenons Charity
Independent Examiner's Report to the trustees of Avenons Charity
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 12.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Avenons Charity 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 Avenons Charity'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 Commission under section 145(5)(b) of the 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:
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accounting records were not kept in respect of Avenons Charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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.
...................................... Brooks Green Registered Auditors
Chartered Accountants & Registered Auditors Abbey House 342 Regents Park Road London N3 2LJ
25 February 2022
Page 5
Avenons Charity
Statement of Financial Activities for the Year Ended 31 March 2021
| Note Income and Endowments from: Investment income 2 Expenditure on: Grant funding of activities Distributions per clauses 22 and 23 Independent Examiner’s remuneration Other governance costs Total Expenditure Gains/losses on investment assets Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 8 |
Unrestricted funds £ 13,799 (30,000) (5) (2,640) (5,923) (38,568) 156,679 131,910 601,654 733,564 |
Total 2021 £ 13,799 (30,000) (5) (2,640) (5,923) (38,568) 156,679 131,910 601,654 733,564 |
Total 2020 £ 22,912 (5) (42,000) (3,420) (6,019) |
|---|---|---|---|
| (51,444) | |||
| (64,106) | |||
| (92,638) 694,292 |
|||
| 601,654 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 8.
Page 6
Avenons Charity
(Registration number: 254992) Balance Sheet as at 31 March 2021
| Note Current assets Investments 6 Cash at bank and in hand Creditors: Amounts falling due within one year 7 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 8 |
2021 £ 732,426 5,689 738,115 (4,552) 733,563 733,564 733,564 |
2020 £ 598,909 8,034 |
|---|---|---|
| 606,943 (5,289) |
||
| 601,654 | ||
| 601,654 | ||
| 601,654 |
The financial statements on pages 6 to 12 were approved by the trustees, and authorised for issue on 16 February 2022 and signed on their behalf by:
......................................... J Driver Trustee
Page 7
Avenons Charity
Notes to the Financial Statements for the Year Ended 31 March 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Avenons Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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Avenons Charity
Notes to the Financial Statements for the Year Ended 31 March 2021
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Current asset investments
Current asset investments are included at the lower of cost and net realisable value / market value.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Page 9
Avenons Charity
Notes to the Financial Statements for the Year Ended 31 March 2021
2 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Other investment income |
Unrestricted funds General £ 6 13,793 13,799 |
Total 2021 £ 6 13,793 13,799 |
Total 2020 £ 12 22,900 |
|---|---|---|---|
| 22,912 |
3 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Other governance costs 4 Independent examiner's remuneration Examination of the financial statements |
Unrestricted funds General £ 2,640 5,923 8,563 |
Total 2021 £ 2,640 5,923 8,563 2021 £ 2,640 |
Total 2020 £ 3,420 6,019 |
|---|---|---|---|
| 9,439 | |||
| 2020 £ 3,420 |
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Avenons Charity
Notes to the Financial Statements for the Year Ended 31 March 2021
5 Taxation
The charity is a registered charity and is therefore exempt from taxation.
6 Current asset investments
| 6 Current asset investments |
||||
|---|---|---|---|---|
| Listed other shares 7 Creditors: amounts falling due within one year Accruals 8 Funds Balance at 1 April 2020 £ Unrestricted funds General (601,654) Balance at 1 April 2019 £ Unrestricted funds General (694,292) |
Incoming resources £ (13,799) Incoming resources £ (22,912) |
2021 £ 732,426 2021 £ 4,552 Resources expended £ Other recognised gains/(losses) £ 38,568 (156,679) Resources expended £ Other recognised gains/(losses) £ 51,444 64,106 |
2020 £ 598,909 |
|
| 2020 £ 5,289 |
||||
| Balance at 31 March 2021 £ (733,564) |
||||
| Balance at 31 March 2020 £ (601,654) |
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Avenons Charity
Notes to the Financial Statements for the Year Ended 31 March 2021
9 Analysis of net funds
| 9 Analysis of net funds |
||
|---|---|---|
| At 1 April 2020 £ Cash at bank and in hand 8,034 Current asset investments 598,909 606,943 At 1 April 2019 £ Cash at bank and in hand 14,782 Current asset investments 684,799 Net debt 699,581 |
Cash flow £ (2,345) 133,517 131,172 Cash flow £ (6,748) (85,890) (92,638) |
At 31 March 2021 £ 5,689 732,426 |
| 738,115 | ||
| At 31 March 2020 £ 8,034 598,909 |
||
| 606,943 |
Page 12
Avenons Charity
Detailed Statement of Financial Activities for the Year Ended 31 March 2021
| Income and Endowments from: Investment income (analysed below) Total income Expenditure on: Charitable activities (analysed below) Total expenditure Gains/losses on investment assets (analysed below) Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2021 £ 13,799 13,799 (38,568) (38,568) 156,679 131,910 131,910 601,654 733,564 |
Total 2020 £ 22,912 |
|---|---|---|
| 22,912 | ||
| (51,444) | ||
| (51,444) (64,106) |
||
| (92,638) | ||
| (92,638) 694,292 |
||
| 601,654 |
Page 13
Avenons Charity
Detailed Statement of Financial Activities for the Year Ended 31 March 2021
| Investment income Interest on cash deposits Income from other investments Charitable activities Distributions per clauses 22 and 23 West Ham United Non Ecclesiastical Charities Stockbroker charges Clerk and receiver fees Accountancy fees Gains/losses on investment assets Funds - investment assets |
Total 2021 £ 6 13,793 13,799 (5) (30,000) (4,383) (1,540) (2,640) (38,568) 156,679 |
Total 2020 £ 12 22,900 |
|---|---|---|
| 22,912 | ||
| (42,000) (5) (4,484) (1,535) (3,420) |
||
| (51,444) | ||
| (64,106) |
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