**Charity registration number 278891** **Company registration number 01227745 (England and Wales)** **WEST HERTS CHARITY TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** ## **WEST HERTS CHARITY TRUST LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees And Directors** Mr Richard Minashi Mr Matthew Humphreys Mr Michael Humphreys Mr Paul Miller **Charity number** 278891 **Company number** 01227745 **Registered office** Brandon House First Floor 90 The Broadway Chesham Buckinghamshire HP5 1EG **Auditor** Dickinsons Brandon House First Floor 90 The Broadway Chesham Buckinghamshire HP5 1EG **Bankers** HSBC Bank Plc 31 Chequer Street St Albans Hertfordshire AL1 3YN ## **WEST HERTS CHARITY TRUST LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Independent auditor's report|4 - 7| |Statement of financial activities|8| |Balance sheet|9| |Notes to the financial statements|10 - 16| ## **WEST HERTS CHARITY TRUST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2023** ## **Trustees' Annual Report** The trustees and directors present their annual report together with the audited financial statements for the year ended 31 July 2023. The financial statements have been prepared in accordance with the Companies Act 2006, the Charities Act 2011, as amended by the Charities Act 2022, the memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102.) This report is also a directors' report as required by the Companies Act 2006, as all trustees are directors. ## **Objectives and activities** The trustees and directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the West Herts Charity Trust Limited should undertake. The trustees consider that the charity exists for the purpose of the local public benefit within Hertfordshire and surrounding districts as defined in Section 4 of the Charities Act 2011 as amended by the Charities Act 2022. The objectives are: - to advance education for the public benefit by the award of grants and the provision of funding to schools, colleges, universities and other educational establishments (but not so as to replace, or support the replacement of, funding required to be provided by statutory authorities) and by the award of grants, scholarships, bursaries and maintenance allowances to pupils or students attending school, college, university or other educational establishments; - to promote road safety for the benefit of the public, and to promote the efficiency and effectiveness of charities by the provision of suitable vehicles, transport facilities, grants or equipment. ## **Achievements and performance** During the year the charity continued to make donations of vehicles adapted to meet the needs of local deserving causes. In the year the charity made 11 (2022: 2) such donations. Donations are financed from income generated through the rental of investment properties, which have continued to be maintained in order to maximise current and future rental income from these assets supplemented in certain cases by way of parallel contributions from beneficiaries. The Trustees intend to continue to raise income through the letting of investment properties to enable the support of local charities. ## **Future Development and Strategies** The charity intends to continue its mission in providing better accessibility to groups in need. The key strategy going forward is to ensure rental properties remain fully let to ensure sufficient inflow of cash. ## **Financial review** The Statement of Financial Activities for the year is set out on page 8 of the accounts. The result for the year is a deficit of £13,644 (2022: £113,024 surplus). The Trustees consider the result for the year to be satisfactory and in line with expectations. Unrestricted reserves amount to £3,609,669 (2022: £3,623,313) of which £2,385,835 (2022: £2,385,835) relates to a revaluation reserve. ## **Reserves Policy** The Trustees have established a policy to build up unrestricted reserves to a level to support the charity's core expenditure for a minimum of twelve months. This level of reserves has been maintained throughout the year. - 1 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023** ## **Structure, governance and management** West Herts Charity Trust Limited is a company limited by guarantee and a registered charity, managed by an elected Council, and set up under a Trust deed dated 25 September 1975. The management of the charity is the responsibility of the trustees who are also appointed Directors of the company. New trustees are appointed on the recommendation of existing trustees and who are deemed to have appropriate experience and knowledge for the role. There are no formal procedures for inducting new trustees, however, any new trustees appointed would be practically aware of the work undertaken by the Charity and support is always provided by existing trustees. Details of related party transactions, where applicable, can be found in the notes to the accounts. The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to these risks. The trustees and directors, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr Richard Minashi Mr Matthew Humphreys Mr Michael Humphreys Mr Paul Miller ## **Legal and Administration Information** The company is limited by gurantee and has no share capital. None of the trustees and directors has any beneficial interest in the company. All of the trustees and directors are members of the company. Under the provision of the company's memorandum of association, each member would be required to contribute a sum not exceeding £1 for the payment of the debts of the company, in the event of a deficiency of assets on winding up of the company. The company is a registered charity under the Charities Act 2011, as amended by the Charities Act 2022. The company registration number is 01227745 and the charity number is 278891. Principal Office: Ver House, Park Industrial Estate, St Albans, Herts, AL2 2WH. Registered Office: Brandon House, First Floor, 90 The Broadway, Chesham, Bucks, HP5 1EG. - 2 - WEST HERTS CHARITY TRUST LIMITED TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED} FOR THE YEAR ENDED 31 JULY 2023 statement of trustees. re5ponslbllltles The Iruslees and dire¢lors, who are also the directors of Wesl Herts Charity Trust Limited for the purpose ol company law, are responsible lor preparing the Trustees. Report and the finan¢ial statements in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Pra¢licel. Company Law requires the Iruslees anLI directors lo prepare financial slatements for each financial year which give a true and lair view of the slate of affairs of the Wesl Herts Charity Trust Limited and of the incorning resources and appli¢alion of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statemen15. the Iruslees and diroctors are required lo.. select suitable accounting poliaes and then apply them consislenlly., obsetve the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures dis¢losed and explained in the financial slatemenls.. and prepare the financial statements on the going ¢on¢8rn basis unless they consider this basis is inappropriate. The Iruslees and directors are responsible lor keeping adequate accounting records that disclose with reasonable accuracy at any lime the Iinancial position of the Wesl Herts Charity Trust Limited and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Wesl Herts Charity Trust Limited and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities, So far as the Iiuslees are aware, there is no relevant audit inforrllalion of which the charity's auditors are unaware and they have taken all the steps that they ought to have taken as Iru51ees in order lo make themselves aware of any relevant audit information and lo establish that the charity's auditors are aware of that information. Auditor In accordance with the company's articles, a resolution proposing that Dickinsons Chartered Accountants be reappointed as auditor of the Company will be put at a General Meeting. The Auditors, Dickinsons Chartered Ac¢ounlanls, have indicated that they are willing lo be reappointed al the forthcoming Annual General Meeting. Risk Ass8ssm8nt In order lo comply with the Statement of Recommended Praclise for Charity Accounts (FRS 1 021 a revaew ol the major risks to which the charity is exposed and the systems that have to be e51abli5hed lo miligale those risks has been Carriad out. The Iruslees ieceive iegular reports and these are monitored on an ongoing basis al Board level. Exemption Statement The accounts have been prepared in accordance with the special provision for small companies under Part 15 01 the Companies Act 2006. The trustees, report was approved by the Board of Trustees And Directors. Mr Matthew Humphreys Director Dale.. ## **WEST HERTS CHARITY TRUST LIMITED** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES AND DIRECTORS OF WEST HERTS CHARITY TRUST LIMITED** ## **Opinion** We have audited the financial statements of West Herts Charity Trust Limited for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice,) the Statement of Recommended Practice Accounting and Reporting by Charities and the Charities Act 2011, as amended by the Charities Act 2022. In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its deficit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the West Herts Charity Trust Limited in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' (who are also directors' of the charitable company for the purpose of company law) use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the West Herts Charity Trust Limited’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees and directors with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees and directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 4 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES AND DIRECTORS OF WEST HERTS CHARITY TRUST LIMITED** ## **Matters on which we are required to report by exception** In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' report or the trustees were not entitles to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the trustees' report and from the requirements to prepare a strategic report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees and directors** As explained more fully in the statement of trustees' responsibilities, the trustees and directors, who are also the directors of the West Herts Charity Trust Limited for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees and directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees and directors are responsible for assessing the West Herts Charity Trust Limited’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees and directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. - 5 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES AND DIRECTORS OF WEST HERTS CHARITY TRUST LIMITED** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ## Our approach was as follows: We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to include the Companies Act 2006, and the Charities Act 2011, as amended by the Charities Act 2022. We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit. We discussed with management any known or suspected instances of fraud or non-compliance with laws and regulations. We assessed the risks of material misstatement in respect of fraud as follows: - The audit team discussed whether there were any areas that were susceptible to misstatement as part of their fraud discussion. - In addressing the risk of management override of controls, we tested the appropriateness of journal entries with a focus on large or unusual transactions based on criteria determined using our knowledge of the business and industry. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements. We incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures. Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including designing audit procedures to address, for example: - The possibility of fraudulent or corrupt payments made through third parties. - The risk of bribery and corruption. - The opportunity to segregate duties within the entity. Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. - Using our general commercial and sector experience and through discussions with management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either because of fraud or error. - The engagement partner considers the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws or regulations. We considered the extent to which the audit was considered capable of detecting irregularities: There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 6 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES AND DIRECTORS OF WEST HERTS CHARITY TRUST LIMITED** ## **Opinion on other matters prescriber by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees' report, which included the Directors' Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Directors' Report included in the Trustees' Report has been prepared in accordance with applicable legal requirements. Dickinsons is eligible for appointment as auditor of the West Herts Charity Trust Limited by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Natalie Spalton (Senior Statutory Auditor) for and on behalf of Dickinsons Chartered Accountants Statutory Auditor** 3 April 2024 Brandon House First Floor 90 The Broadway Chesham Buckinghamshire HP5 1EG - 7 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 31 JULY 2023** |||**Unrestricted**|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2023**|**2022**| ||**Notes**|**£**|**£**| |**Income from:**|||| |Donations|**2**|33,290|2,050| |Investment income|**3**|209,264|206,910| |**Total income**||242,554|208,960| |**Expenditure on:**|||| |Charitable activities|**4**|256,198|95,936| |**(Deficit)/surplus for the year and**|||| |**Net movement in funds**||(13,644)|113,024| |Fund balances at 1 August 2022||3,623,313|3,510,289| |**Fund balances at 31 July 2023**||3,609,669|3,623,313| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure accounts under the Companies Act 2006. - 8 - WEST HERTS CHARITY TRUST LIMITED BALANCE SHEET ASAT 31 JULY 2023 2023 2022 Notes Fixed assets Tangible assets Investmènt property 500 3.280.000 1,755 3,280,000 3,280,500 3,281,755 Current assets Stocks Debtors Cash at bank and in hand 89,300 77,989 276,632 70,948 335,707 406,655 423,921 Creditors- amounts falling due within one year 11 77,486 82,363 Nel current assets 329,169 341,558 Total assets less current Ilabllltles 3,609,669 3.623,313 Income funds Unrestricted funds 3,609,669 3,623,313 3.609,669 3.623,313 The company is enlilled lo exemption from the audit requirement contained in section 477 of the Cornpanies Act 2006 for the year ended 31 July 2023, although an audit has been cairied out under section 144 of the Charities Ac12011. The directors acknowledge their responsibilities lor complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial stalemenls. The members have required the company to obtsin an audit of ils financial slatemenls. These financial statements have been prepared in accordance with the provisions appllcable lo companies subject lo the small companies regime. The finan¢ial slalemenls were approved by the trustees and directors on . Mr Matthew Humphreys Trustee Company registration number 01227745 IEngland and Wales) ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** ## **1 Accounting policies** ## **Charity information** West Herts Charity Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Brandon House, First Floor, 90 The Broadway, Chesham, Buckinghamshire, HP5 1EG. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the memorandum and Articles of Association of West Herts Charity Trust Limited, the Companies Act 2006 and the Charities Act 2011, as amended by the Charities Act 2022, the Charities SORP Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102.) The financial statements include the results of the charity's operations which are described in the Trustees' Annual Report. The West Herts Charity Trust Limited has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling, which is the functional currency of the West Herts Charity Trust Limited. Monetary amounts in these financial statements are rounded to the nearest pound. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. The trustees consider that the charity exists for the purpose of the local public benefit as defined in section 4 of the Charities Act 2011, as amended by the Charities Act 2022. ## **1.2 Going concern** The trustees and directors have adopted the going concern basis of accounting in preparing the financial statements; the trustees are satisfied the charity has sufficient reserves and working capital to enable the charity to remain in operational existence for the foreseeable future. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees and directors in furtherance of their charitable objectives. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market value. Investment income, gains and losses are allocated to the appropriate fund. ## **1.4 Income** Total incoming resources are rental income from investment properties and contributions from donations as shown in the Statement of Financial Activities when the charity is legally entitles to the income and the amount can be quantified with reasonable accuracy. ## **1.5 Expenditure** Expenditure is accounted for on an accrual basis, recognised when a liability is incurred, and classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading they been allocated to activities on a basis consistent with the use of the resources. - 10 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **1 Accounting policies (Continued)** ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings 20% on cost Computers 33% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Investment property** Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. No depreciation provision has been made in the accounts as the amount would be considered immaterial. ## **1.8 Impairment of fixed assets** At each reporting end date, the West Herts Charity Trust Limited reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.9 Stocks** Stocks are stated at the lower of cost or net realisable value. Cost comprises the purchase price of minibuses and related modifications made to ensure they are all health and safety compliant and associated costs incurred to the date of donation. Net realisable value is based on the the expected sales value of the minibuses if sold and not donated to a third party. ## **1.10 Cash and cash equivalents** Cash and cash equivalents include cash in hand and other short-term liquid investments with short maturities of three months or less from the date of acquisition ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 11 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023** ## **1 Accounting policies (Continued)** ## _**Impairment of financial assets**_ Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year. ## _**Derecognition of financial assets**_ Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the West Herts Charity Trust Limited transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. ## _**Basic financial liabilities**_ Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the West Herts Charity Trust Limited’s contractual obligations expire or are discharged or cancelled. ## **2 Income from donations** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |Donations and gifts|33,290|2,050| - 12 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 JULY 2023** ## **3 Income from investments** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |Rental income|205,987|206,825| |Interest receivable|3,277|85| ||209,264|206,910| **4 Expenditure on charitable activities** |**Direct costs**
Depreciation and impairment
Opening stock
Purchases of vehicles
Modifications and livery
Closing stock
Managing agent fees
Rates (recovered)
Computer running costs
Travel costs
Entertaining
Telecommunications
Printing, postage and stationery
Sundry expenses
Bank charges
Other charitable expenditure
**Analysis by fund**
Unrestricted funds|**Total**
**2023**
**£**
1,255
69,300
148,843
9,782
-
18,804
-
1,909
781
1,413
-
241
67
546
3,257
256,198
256,198|**Total**
**2022**
**£**
1,276
-
96,240
1,655
(69,300)
17,695
(1,497)
2,892
186
1,228
87
117
67
303
44,987| |---|---|---| |||95,936| |||95,936| ## **5 Trustees And Directors** None of the trustees and directors (or any persons connected with them) received any remuneration or benefits from the West Herts Charity Trust Limited during the year. ## **6 Employees** There were no employees in the year (2022: None). - 13 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 JULY 2023** |**7**
**Tangible fixed assets**
**Fixtures and**
**fittings**
**£**
**Cost**
At 1 August 2022
228
At 31 July 2023
228
**Depreciation and impairment**
At 1 August 2022
19
Depreciation charged in the year
46
At 31 July 2023
65
**Carrying amount**
At 31 July 2023
163
At 31 July 2022
209
**8**
**Investment property**
**Fair value**
At 1 August 2022 and 31 July 2023|**Computers**
**£**
3,771
3,771
2,225
1,209
3,434
337
1,546|**Total**
**£**
3,999| |---|---|---| |||3,999| |||2,244
1,255| |||3,499| |||500| |||1,755| |||**2023**
**£**
3,280,000| Investment properties comprises four units in two blocks. The fair value of the investment properties have been arrived at on the open market value for existing use basis from a valuation carried out at 10 October 2019 by Brasier Freeth, who are an independent firm of Chartered Surveyors, not connected with the West Herts Charity Trust Limited. In the opinion of the directors there has been no material change in valuation since the valuations in 2019. If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows: |Freehold
**9**
**Stocks**
Stock of vehicles for donation|**2023**
**£**
894,165
**2023**
**£**
-|**2022**
**£**
894,165| |---|---|---| |||**2022**
**£**
69,300| - 14 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023** ## **10 Debtors** |**Debtors**||| |---|---|---| |**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income|**2023**
**£**
64,324
6,624
70,948|**2022**
**£**
71,442
6,547| |||77,989| ## **11 Creditors: amounts falling due within one year** |Deferred income
Other creditors
Accruals and deferred income|**2023**
**£**
19,146
51,503
6,837
77,486|**2022**
**£**
27,012
48,815
6,536| |---|---|---| |||82,363| ## **12 Corporation Tax** The charity is exempt from tax on income and gains falling within part of 10 of the Income Tax Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. ## **13 Called up share capital** The company is limited by guarantee and has no share capital. Under the provisions of the company's memorandum of association, each member would be required to contribute a sum not exceeding £1 for the payment of debts of the company in the event of a deficiency of assets on a winding up of the company. The charity has been controlled throughout the year by the trustees, whom are identified in the company information. - 15 - ## **WEST HERTS CHARITY TRUST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023** ## **14 Operating lease commitments** ## **Lessor** The company owns two investment properties held for rental purposes. Rental income earned during the year was £205,987 (2022: £206,825) and a service charge surplus arose on the properties amounting to £7,330 (2022: deficit £21,724). There are three tenants that are committed for more than 5 years. All operating lease contracts contain market review clauses in the event that the lessee exercises an existing option to renew. The lessees hold no option to purchase the properties at the expiry of the lease period. At the reporting end date the West Herts Charity Trust Limited had contracted with tenants for the following minimum lease payments: |Within one year
Between two and five years
In over five years|**2023**
**£**
176,952
657,335
598,706
1,432,993|**2022**
**£**
194,160
687,835
745,158| |---|---|---| |||1,627,153| ## **15 Related party transactions** During the year there were no related party transactions. ## **16 Non-audit services provided by auditor** In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements. - 16 -