REGISTERED COMPANY NUMBER: 01799707 (England and Wales)
REGISTERED CHARITY NUMBER: 289235
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
FOR
DAVENANT CENTRE(THE)
DAVENANT CENTRE(THE)
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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Report of the Trustees |
1 |
to |
6 |
Report of the Independent Auditors |
7 |
to |
10 |
Statement of Financial Activities |
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11 |
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Balance Sheet |
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12 |
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Notes to the Financial Statements |
13 |
to |
20 |
Detailed Statement of Financial Activities |
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21 |
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DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
ThetrusteeswhoarealsodirectorsofthecharityforthepurposesoftheCompaniesAct2006,presenttheirreportwith the
financialstatementsofthecharityfortheyearended31March2023.Thetrusteeshaveadoptedtheprovisionsof Accounting
andReportingbyCharities:StatementofRecommendedPracticeapplicabletocharitiespreparingtheiraccounts in
accordancewiththeFinancialReportingStandardapplicableintheUKandRepublicofIreland(FRS102)(effective1 January
2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
Thecharity'sprincipalactivityduringtheyearcontinuedtobethatoftheprovisionoftwocommunitycentresfor the
educational and social benefits of the inhabitants of the London Borough of Tower Hamlets.
The two Community Centres location and the charities occupying them during the year are;-
a) 179-181 Whitechapel Road, London, E1 1DN
Thepropertywasvacantthroughouttheperiod.Contractforsalewasexchangedon6thMarch2023andcompletion took
place on 11th April 2023.
b) 183-185 Whitechapel Road, London, E1 1DN
i) The Rainbow Centre, a registered charity providing children's playgroup services.
ii) CGL, a registered charity providing a range of treatment services for drug and alcohol related misuse.
ThetrusteesconsiderthatTheDavenantCentrecharityisachievingitsobjectivesthroughtheabovecharities,who occupy
the properties owned by the charity.
ThetrusteesconfirmthattheyhavegivendueconsiderationtotheCharityCommission'spublishedguidanceon Public
Benefit requirement under the Charities Act 2011.
STRATEGIC REPORT
Financial review
Principal funding sources
TheDavenantCentre'smainsourceoffundingduringtheperiodwasfromrentalincomederivedfromthelettingofits two
propertiestoothercharities.Therentalincomefortheyearhasgonedownintheyearduetothepropertyat 179-181
Whitechapel Road, being vacant throughout the period
Reserves policy
ThetotalUnrestrictedfundsat31stMarch2023amountedto£347,819(2022£432,462).Thesefunds represent
surplus/deficit on the day to day activities of the charity.
ThetotalRestrictedfundsat31stMarch2023amountedto£5,365,820(2022£5,393,315).Therestrictedfunds represent
thenetbookvalueofthefreeholdlandandbuildingsandfundsduefromthesaleofbuildingat179-181Whitechapel Road,
less the related loans.
ThepropertyrevaluationreserveincludedwithinthetotalRestrictedfundsat31stMarch2023amountedto£841,071 (2022
£1,619,607). These funds can only be used for any accounting adjustments in the fair value of the Freehold properties.
The Restricted funds cannot be used for the day to day activities of the charity
Going concern
Thetrusteeshaveconsideredthegoingconcernpositionofthecompanyandaresatisfiedthatthecompanyhas sufficient
reserves to continue to operate for the immediate future with the help of the London Borough of Tower Hamlets
Page 1
DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
STRATEGIC REPORT Financial review
Summary of activities for the year
ThetotalincomereceivablebytheCharityintheyearamountedto£108,218(2022£183,320).Thetotalexpenditurefor the
yearamountedto£218,913(2022£82,557).Thedeficitfortheyearamountedto£110,695(2022NetIncome £100,763).
Thedeficitmainlyresultedfromtheincreasedlightandheatcostsintheyearaswellasanotionallossonthesaleof the
building.
TheCharity'soveralldebtincreasedby£17,095to£623,780attheyearend.Theincreaseindebtresultsfromthe interest
payable on London Borough of Tower Hamlets facilities. These facilities were fully repaid on 11th April 2023.
Principal risks and uncertainties
TheDavenantCentreisdependentonrentalincomefromthetwoCommunityCentreswhichareletouttoother Charities.
TheeconomicclimateforthepastfewyearshasbeendifficultforCharitiesgenerallywhosurviveondonationsfrom the
publicorgrantsfromotherpublicbodies.IftheTenantsareunabletopaytherentontimeorgointoadministration or
liquidation,TheDavenantCentreinturnisunabletomakepaymentsforitsLoancommitmentsandrepairstoitsbuildings as
andwhentheyarise.Inaddition,sinceMarch2020,Covid-19hasaffectedmanycharitiesfinanciallyandconsequently their
continued operation.
Thetwocommunitycentrebuildingsareover100yearsoldandmayfromtimetotimerequiremajorrepairs and
refurbishments and the trustees consider that the funds held at the bank are required to meet these commitments.
Revaluation of freehold property
ThetwopropertieswereprofessionallyvaluedbyDobbin&Sullivan,CharteredSurveyorsduringSeptember2019atan open
marketvalueof£6,000,000.Onthesaleofoneofthebuilding,theremainingpropertyvalueamountsto£2,550,000. The
trustees are of the opinion that this amount represents a fair value at the Balance Sheet date.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
ThecompanyisregisteredasacharitablecompanylimitedbyguaranteeassetupintheMemorandumofAssociationon 13
March1984.Themanagementofthecompanyistheresponsibilityofthetrusteeswhoareelectedandco-optedunder the
terms of the Articles of Association. The Board of directors is made up of the the trustees of the Davenant Centre.
Recruitment and appointment of new trustees
The Board of trustees will ensure that any new appointments will have an appropriate mix of business skills.
Organisational structure
Thetrusteesareresponsiblefortheoverallmanagementofthecharity.Theconsultant,whowasappointedduring the
corporaterestructuringinJuly2009,resignedhispositionduringtheyearandthetrusteeshavecontinuedtomanage the
twopropertiesownedbythecharity.Thetrusteeshaveappointedafirmofcharteredsurveyorstomanagethe properties
andprovideadministrativeandfinancialservicesfromJanuary2023.Thetrusteesmeetregularlytoreviewtheactivities and
financial performance. They also meet on informal basis as the need arises. The charity has no employees.
Induction and training of new trustees
Newtrusteesaremadeawareoftheirresponsibilities.Thisincludesanintroductiontotheobjectives,scopeandpolicies of
the charity.
Related parties
TheLondonBoroughofTowerHamletshasprovidedfinancialsupportthroughanoverdraftfacilitytothecharity.This facility
amountedto£623,780at31stMarch2023(2022£606,685).Interestispayableandthefacilityissecuredbya second
charge over the charity's properties. These facilities were repaid on 11th April 2023.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
01799707 (England and Wales)
Page 2
DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2023
Registered Charity number
289235
Registered office
114-116 Goodmayes Road
Ilford
Essex
IG3 9UZ
Trustees
J A Pulford MBE
G K Collins
Company Secretary
Senior Statutory Auditor
Rameshchandra Arjan
Auditors
Ashfords Partnership LLP
114-116 Goodmayes Road
Ilford
Esex
IG3 9UZ
Bankers
National Westminster Bank PLC
Mile End Branch
Albion Yard
331/335 Whitechapel Road
London
E1 1AU
Page 3
DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
BACKGROUND INFORMATION OF THE CHARITY
TheDavenantCentreisaformerGLC-ownedbuildingthatwastransferredbyGrantAid,alongwiththe neighbouring
JaganoriCentretothetrusteesoftheCentrein1984bytheformationofaCompanyLimitedbyguarantee.The two
propertiesarelocatedat179-181and183-185WhitechapelRoad,LondonE1.Thepropertyat179-181Whitechapel Road
was sold on 6th March 2023.
In2004,TheCharityembarkedonamajorcapitalprojecttotransformthe179-181building(aformerVictorianschool) into
amoderneducationandyouthcentrewiththehelpoffundingsecuredfromanumberofsourcesincludingloan facilities
from NatWest Bank.
Howeverby2005theprojectwassufferingfromseverefundingshortageresultingfromcostoverrunsasaconsequenceof a
number of factors including the discovery of ancient burial remains and increases in building material costs.
During2006,TheDavenantCentreencounteredsignificantinternalmanagementproblems,culminatinginlengthy litigation
proceedingsbetweenanumberofformertrusteeandthemanagementcommittee(newtrustees)resultinginpayment delays
to the builders, additional legals costs and interest payments on contractual liabilities.
AcourtorderwassubsequentlyapprovedinFebruary2007settingoutvariousconditionsincludingthecreationofa steering
committeeconsistingofnomorethan4peopletocarryoutthefunctionofthemanagementcommitteetodealwith all
matters arising from and relating to the financial affairs and day to day business of the Centre.
During2007and2008,TheDavenantCentrehadseriousfinancialproblemsresultingfromdelaysincompletionofthe Centre
andtheconsequentlossofrevenuefromrentalincomeoftheCentre.ThisledtotheCentredefaultingonLoan repayments
to the Bank and the renegotiation of the facilities.
Intheearlypartof2009,LondonBoroughofTowerHamletsconsideredthattherewouldbeaveryhighriskthata high
profilecommunityassetwhichhasbenefitedfromsignificantpublicinvestment,wouldbelostandadvancedfurther funding
facilities in subordination to the NatWest Loan facilities, subject to a number of conditions.
Aspartofthefinancialrestructuring,theDavenantCentrewastakenintoadministrationinJuly2009.TheNatWestBank loan
termswerefurtherrenegotiatedandtheLondonBoroughofTowerHamletsadvancedadditionalfundingfacilitiesto the
Centre.TwoseniorofficersoftheLondonBoroughofTowerHamletswereappointedtotheBoardoftrusteesto ensure
correctgovernanceoftheorganisation.Astrustees,theywererequiredtotakeadisinterestedviewintheaffairsof The
Davenant Centre independently from their responsibilities as Council officers.
Fromthispoint,theDavenantCentreembarkeduponabusinessrecoveryprocessaimedatensuringthattheCentre was
abletopayalloutgoingsfromitsincomeandthatthetwobuildingsinitsportfolioremainavailableforcommunityuse. The
trusteeshavealsoensuredthattheCharity'sdebtrepaymentsaremetontimeandhavefocusedonreducingthetotal debt
of the charity.
Aspartofthisrecoveryprocess,inabidtoreducetheoutgoings,thetrusteesdecidedtochangeitsbusinessmodel from
lettingofservicedofficesattheCentretoagrantofleasestosingleoccupiersforeachofthetwoproperties.The two
buildings were let out to two separate charities whose aims and objectives correlated to those of the Davenant Centre.
Duringthefinancialyear2016-17,TheDavenantCentre'spriorityhasbeentoattractalternativeincomegeneratinguses for
183-185WhitechapelRoad,followingtheinsolvencyandsubsequentclosureofformertenant,JagonariWomen's Education
Resource Centre (JWERC) at the end of August 2015.
AtthebeginningofSeptember2015,TheDavenantCentregrantedaleasefortheoccupationoftherearnursery premises
andgroundfloorofficestoRainbowHouse,aproviderofimportantlocalchildcareservices.Effortscontinuedtobring the
remainderof183-185WhitechapelRoad,comprisingthefirst,secondandthirdfloors,intorevenueearninguse. This
includedviewingsbyanumberofcommunityorganisationsandafeasibilitystudyundertakeninconjunctionwiththe London
BoroughofTowerHamletsforconvertingthespaceforuseasanenterpriseworkspacecentre.Thiswouldhave been
dependentongrantfundingfromtheCouncil'sWhitechapelRegenerationteam.Theproposedgrantwasnot subsequently
forthcoming and the search for alternative tenants continued.
Page 4
DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
InNovember2016,TheDavenantCentreenteredintoaleaseagreementwithLifeline,acharitywhichhadbeenawarded a
drugsrecoverycontractbytheLondonBoroughofTowerHamlets,tooccupythethreeupperfloorsof183-185 Whitechapel
Road.BecausethebuildinghadbeenleftinasomewhatrundownconditionbyJWERC,anextensiveamountof landlord's
works were necessary to bring the building back into viable use.
TheDavenantCentrereceivednotificationon2ndJune2017thatLifelinehadbeenplacedintoreceivershipandof the
appointmentofanadministratorforLifeline,towhomaclaimfortheunpaidfundswassubmitted.Subsequentlythe London
BoroughofTowerHamletsappointedCGL,alargenationalcharitydeliveringsimilardrugrecoveryservicestoLifeline,to take
overtheproject.Underthisarrangement,CGLdecidedtocontinuedeliveryofthedrugsrecoveryservicesfrom The
DavenantCentre'sbuildingat183-185WhitechapelRoad.CGLhassincebeenoccupyingthepremisesunderalicense agreed
withthereceiversofLifeline,whohavecontinuedtothepaythefullmonthlyrentspecifiedinLifeline'slease,toendof June
2018.FromJuly2018,CGLhaveoccupiedthepremisesonalicense.Bymutualagreement,theBangladeshiDrugs Project
whooccupied179-181WhitechapelRoad,terminatedtheirleaseinMarch2018,duetotheirfinancialinabilitytopaythe rent
andthepremiseswerelettoYMCAGeorgeWilliamsCollege,initiallyonalicensefrom1stMay2018anda5yearlease from
1stAugust2018.Theleasewasrelinquishedatitsmidpointon31July2021.TheDavenantCentrehasthereforebeenable to
continuetomaintainitsliquidityoverthisperiodandhad£445,946attheBankattheyearend(2021£364,294). The
company'scashpositionhascontinuedtobecloselyandregularlymonitoredandanumberofoptionsforincreasing revenues
and building reserves are under consideration.
ThecompanyholdsregulardiscussionswiththeLondonBoroughofTowerHamletsinrelationtotheoutstandingdebt owed
to them of £623,780 at the year end. This debt was fully repaid on 11th April 2023.
Thebuildingat179-181WhitechapelRoad,wassoldfor£3,450,000on6thMarch2023withcompletiontakingplaceon 11th
April2023.Thetrusteesreachedthedecisiontosellthisbuildingafterconsideringvariousissueswithfinding appropriate
tenantsandthetimetakentomanagethebuildingsaswellasthecontinuedinvestmentrequiredtomaintainthe buildings
which are over 100 years old.
From1stJanuary2023,thetrusteeshaveappointedDobbinandSullivan,CharteredSurveyorsasthepropertymanager to
fully manage the property at 183-185 Whitechapel Road.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
Thetrustees(whoarealsothedirectorsofDavenantCentre(THE)forthepurposesofcompanylaw)areresponsible for
preparingtheReportoftheTrusteesandthefinancialstatementsinaccordancewithapplicablelawandUnited Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Companylawrequiresthetrusteestopreparefinancialstatementsforeachfinancialyearwhichgiveatrueandfairview of
thestateofaffairsofthecharitablecompanyandoftheincomingresourcesandapplicationofresources,including the
incomeandexpenditure,ofthecharitablecompanyforthatperiod.Inpreparingthosefinancialstatements,thetrustees are
required to
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
Thetrusteesareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytime the
financialpositionofthecharitablecompanyandtoenablethemtoensurethatthefinancialstatementscomplywith the
CompaniesAct2006.Theyarealsoresponsibleforsafeguardingtheassetsofthecharitablecompanyandhencefor taking
reasonable steps for the prevention and detection of fraud and other irregularities.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
Sofarasthetrusteesareaware,thereisnorelevantinformation(asdefinedbySection418oftheCompaniesAct2006) of
whichthecharitablecompany'sauditorsareunaware,andeachtrusteehastakenallthestepsthattheyoughttohave taken
asatrusteeinordertomakethemawareofanyauditinformationandtoestablishthatthecharitablecompany'sauditors are
aware of that information.
Page 5
DAVENANT CENTRE(THE)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
AUDITORS
The auditors, Ashfords Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Reportofthetrustees,incorporatingastrategicreport,approvedbyorderoftheboardoftrustees,asthecompany directors,
on ............................................. and signed on the board's behalf by:
....................................................................
J A Pulford MBE - Trustee
Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVENANT CENTRE(THE)
Opinion
WehaveauditedthefinancialstatementsofDavenantCentre(THE)(the'charitablecompany')fortheyear ended
31March2023whichcomprisetheStatementofFinancialActivities,theBalanceSheetandnotestothefinancial statements,
includingasummaryofsignificantaccountingpolicies.Thefinancialreportingframeworkthathasbeenappliedin their
preparationisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAccepted Accounting
Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK))andapplicablelaw. Our
responsibilitiesunderthosestandardsarefurtherdescribedintheAuditors'responsibilitiesfortheauditofthe financial
statementssectionofourreport.Weareindependentofthecharitablecompanyinaccordancewiththeethical requirements
thatarerelevanttoourauditofthefinancialstatementsintheUK,includingtheFRC'sEthicalStandard,andwehave fulfilled
ourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewe have
obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
Inauditingthefinancialstatements,wehaveconcludedthatthetrustees'useofthegoingconcernbasisofaccountingin the
preparation of the financial statements is appropriate.
Basedontheworkwehaveperformed,wehavenotidentifiedanymaterialuncertaintiesrelatingtoeventsorconditions that,
individuallyorcollectively,maycastsignificantdoubtonthecharitablecompany'sabilitytocontinueasagoingconcernfor a
period of at least twelve months from when the financial statements are authorised for issue.
Ourresponsibilitiesandtheresponsibilitiesofthetrusteeswithrespecttogoingconcernaredescribedinthe relevant
sections of this report.
Other information
Thetrusteesareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedin the
Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationand,excepttotheextentotherwise explicitly
stated in our report, we do not express any form of assurance conclusion thereon.
Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoing so,
considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtained in
theauditorotherwiseappearstobemateriallymisstated.Ifweidentifysuchmaterialinconsistenciesorapparent material
misstatements,wearerequiredtodeterminewhetherthisgivesrisetoamaterialmisstatementinthefinancial statements
themselves.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthis other
information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVENANT CENTRE(THE)
Matters on which we are required to report by exception
Inthelightoftheknowledgeandunderstandingofthecharitablecompanyanditsenvironmentobtainedinthecourseof the
audit, we have not identified material misstatements in the Report of the Trustees.
WehavenothingtoreportinrespectofthefollowingmatterswheretheCompaniesAct2006requiresustoreporttoyou if,
in our opinion:
-
adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
AsexplainedmorefullyintheStatementofTrustees'Responsibilities,thetrustees(whoarealsothedirectorsof the
charitablecompanyforthepurposesofcompanylaw)areresponsibleforthepreparationofthefinancialstatementsand for
beingsatisfiedthattheygiveatrueandfairview,andforsuchinternalcontrolasthetrusteesdetermineisnecessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Inpreparingthefinancialstatements,thetrusteesareresponsibleforassessingthecharitablecompany'sabilityto continue
asagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasis of
accountingunlessthetrusteeseitherintendtoliquidatethecharitablecompanyortoceaseoperations,orhaveno realistic
alternative but to do so.
Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVENANT CENTRE(THE)
Our responsibilities for the audit of the financial statements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrom material
misstatement,whetherduetofraudorerror,andtoissueaReportoftheIndependentAuditorsthatincludesour opinion.
Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewith ISAs
(UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorand are
consideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencethe economic
decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Ourapproachtoidentifyingandassessingtherisksofmaterialmisstatementinrespectofirregularities,includingfraud and
non-compliance with laws and regulations, was as follows:
Theengagementpartnerensuredthattheengagementteamcollectivelyhadtheappropriatecompetence,capabilities and
skillstoidentifyorrecognisenon-compliancewithapplicablelawsandregulations;weidentifiedthelawsand regulations
applicabletothecompanythroughdiscussionswithdirectorsandothermanagement,andfromourcommercial knowledge
andexperienceoftheconsultancyservicessector;wefocusedonspecificlawsandregulationswhichweconsidered may
haveadirectmaterialeffectonthefinancialstatementsortheoperationsofthecompany,includingtheCompanies Act
2006,taxationlegislationanddataprotection,anti-bribery,employment,andhealthandsafetylegislation;weassessed the
extentofcompliancewiththelawsandregulationsidentifiedabovethroughmakingenquiriesofmanagementand inspecting
legalcorrespondence;andidentifiedlawsandregulationswerecommunicatedwithintheauditteamregularlyandthe team
remained alert to instances of non-compliance throughout the audit.
Weassessedthesusceptibilityofthecompany’sfinancialstatementstomaterialmisstatement,includingobtaining an
understandingofhowfraudmightoccur,bymakingenquiriesofmanagementastowheretheyconsideredthere was
susceptibilitytofraud,theirknowledgeofactual,suspectedandallegedfraud;andconsideringtheinternalcontrolsin place
to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were reasonable
-
were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
Inresponsetotheriskofirregularitiesandnon-compliancewithlawsandregulations,wedesignedprocedures which
included,butwerenotlimitedto:agreeingfinancialstatementdisclosurestounderlyingsupportingdocumentation; reading
theminutesofmeetingsofthosechargedwithgovernance;enquiringofmanagementastoactualandpotentiallitigation and
claims; and reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
Thereareinherentlimitationsinourauditproceduresdescribedabove.Themoreremovedthatlawsandregulationsare from
financialtransactions,thelesslikelyitisthatwewouldbecomeawareofnon-compliance.Auditingstandardsalsolimit the
auditproceduresrequiredtoidentifynon-compliancewithlawsandregulationstoenquiryofthedirectorsand other
management and the inspection of regulatory and legal correspondence, if any.
AfurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocatedontheFinancial Reporting
Council'swebsiteatwww.frc.org.uk/auditorsresponsibilities.ThisdescriptionformspartofourReportofthe Independent
Auditors.
Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVENANT CENTRE(THE)
Use of our report
Thisreportismadesolelytothecharitablecompany'smembers,asabody,inaccordancewithChapter3ofPart16of the
CompaniesAct2006.Ourauditworkhasbeenundertakensothatwemightstatetothecharitablecompany's members
thosematterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullest extent
permittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharitablecompanyandthe charitable
company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Rameshchandra Arjan (Senior Statutory Auditor)
for and on behalf of Ashfords Partnership LLP
114-116 Goodmayes Road
Ilford
Esex
IG3 9UZ
Date: .............................................
Page 10
DAVENANT CENTRE(THE)
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2023
Notes
INCOME AND ENDOWMENTS FROM
Investment income
2
Other income
Total
EXPENDITURE ON
Raising funds
3
Other
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
13
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD |
Unrestricted
funds
£
103,559
4,659
108,218
152,344
-
152,344
(44,126)
(39,074)
(83,200)
431,019
347,819 |
Restricted
funds
£
-
-
-
17,095
49,474
66,569
(66,569)
39,074
(27,495)
5,393,315
5,365,820 |
31.3.23
Total
funds
£
103,559
4,659
108,218
169,439
49,474
218,913
(110,695)
-
(110,695)
5,824,334
5,713,639 |
31.3.22
Total
funds
£
153,777
29,543 |
|
|
|
|
183,320 |
|
|
|
|
82,557
- |
|
|
|
|
82,557 |
|
|
|
|
100,763
- |
|
|
|
|
100,763
5,725,014 |
|
|
|
|
5,825,777 |
The notes form part of these financial statements
Page 11
DAVENANT CENTRE(THE)
BALANCE SHEET
31 MARCH 2023
Notes
FIXED ASSETS
Investment property
8
CURRENT ASSETS
Debtors
9
Cash at bank
CREDITORS
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS |
Unrestricted
funds
£
-
48,403
442,745
491,148
(143,329)
347,819
347,819
347,819 |
Restricted
funds
£
2,550,000
3,439,600
-
3,439,600
(623,780)
2,815,820
5,365,820
5,365,820 |
31.3.23
Total
funds
£
2,550,000
3,488,003
442,745
3,930,748
(767,109)
3,163,639
5,713,639
5,713,639
347,819
5,365,820
5,713,639 |
31.3.22
Total
funds
£
6,000,000
15,555
445,946
461,501
(635,724)
(174,223)
5,825,777
5,825,777
432,462
5,393,315
5,825,777 |
|
|
|
|
|
Thesefinancialstatementshavebeenpreparedinaccordancewiththeprovisionsapplicabletocharitablecompanies subject
to the small companies regime.
ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissueon .............................................
and were signed on its behalf by:
.............................................
J A Pulford MBE - Trustee
The notes form part of these financial statements
Page 12
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
Thefinancialstatementsofthecharitablecompany,whichisapublicbenefitentityunderFRS102,have been
preparedinaccordancewiththeCharitiesSORP(FRS102)'AccountingandReportingbyCharities:Statement of
RecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththeFinancial Reporting
StandardapplicableintheUKandRepublicofIreland(FRS102)(effective1January2019)',Financial Reporting
Standard102'TheFinancialReportingStandardapplicableintheUKandRepublicofIreland'andtheCompanies Act
2006.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedby the
revaluation of certain assets.
Income
AllincomeisrecognisedintheStatementofFinancialActivitiesoncethecharityhasentitlementtothefunds,it is
probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructiveobligationcommittingthe charity
tothatexpenditure,itisprobablethatatransferofeconomicbenefitswillberequiredinsettlementandthe amount
oftheobligationcanbemeasuredreliably.Expenditureisaccountedforonanaccrualsbasisandhasbeen classified
underheadingsthataggregateallcostrelatedtothecategory.Wherecostscannotbedirectlyattributedto particular
headings they have been allocated to activities on a basis consistent with the use of resources.
Investment property
Investmentpropertyisshownatmostrecentvaluation.Anyaggregatesurplusordeficitarisingfromchangesin fair
value is recognised in the Statement of Financial Activities.
The Trustees consider that no Depreciation provision is required on the Investment properties.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
GeneralfundsareunrestrictedfundswhichareavailablefortheuseatthediscretionoftheTrusteesinfurtherance of
the activities of the charity and have not been designated for other purposes.
Restrictedfundsarefundswhicharetobeusedinaccordancewithspecificrestrictionsimposedbydonors which
havebeenraisedbythecharityforparticularpurposes.Thecostofraisingandadministeringsuchfundare charged
against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. INVESTMENT INCOME
INVESTMENT INCOME |
|
|
|
31.3.23 |
31.3.22 |
|
£ |
£ |
Rents receivable |
103,559 |
153,777 |
continued...
Page 13
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
3. RAISING FUNDS
Investment management costs
Insurance
Sundries
Management fees
Property repairs
Bank Charges
Light & heat
Cleaning
Water rates
Irrecoverable VAT
Postage and stationary
Computer expenses
Interest - LBTH overdraft
Accountancy fees
Auditors' remuneration
Legal & professional fees
Finance charges
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Deficit on disposal of fixed assets |
31.3.23
£
11,429
290
1,452
14,843
100
101,776
3,270
8,077
19
55
384
17,095
3,950
4,600
1,533
566
169,439
31.3.23
£
49,474 |
31.3.22
£
12,375
240
7,766
15,030
122
23,440
1,512
4,252
3,857
25
384
6,173
3,100
2,700
1,581
- |
|
|
82,557 |
|
|
31.3.22
£
- |
4. NET INCOME/(EXPENDITURE)
5. TRUSTEES' REMUNERATION AND BENEFITS
Therewerenotrustees'remunerationorotherbenefitsfortheyearended31March2023norfortheyear ended
31 March 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.
continued...
Page 14
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
6. STAFF COSTS
The charity had no employees during the year and has had none for a number of years.
7.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Investment income
153,777
Other income
29,543
Total
183,320
EXPENDITURE ON
Raising funds
76,384
NET INCOME/(EXPENDITURE)
106,936
RECONCILIATION OF FUNDS
Total funds brought forward
325,526
TOTAL FUNDS CARRIED FORWARD
432,462
8.
INVESTMENT PROPERTY
FAIR VALUE
At 1 April 2022
Disposals
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022 |
Restricted
funds
£
-
-
-
6,173
(6,173)
5,399,488
5,393,315 |
Total
funds
£
153,777
29,543
183,320
82,557
100,763
5,725,014
5,825,777
£
6,000,000
(3,450,000)
2,550,000
2,550,000
6,000,000 |
Total
funds
£
153,777
29,543 |
|
|
|
183,320 |
|
|
|
82,557 |
|
|
|
100,763
5,725,014 |
|
|
|
5,825,777 |
Thetwopropertiesat179-181and183-185WhitechapelRoad,London,E11DNwererevaluedbyDobbin& Sullivan,
CharteredSurveyorsduringSeptember2019at£6,000,000.TheTrusteesareoftheopinionthatthevalueof the
remaining building at 183-185 Whitechapel Road, represents a fair value at the Balance Sheet date.
continued...
Page 15
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
9. |
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
|
|
|
31.3.23 |
31.3.22 |
|
|
£ |
£ |
|
Amount due from tenants |
9,730 |
7,727 |
|
Amount held by managing agents |
12,680 |
- |
|
Due from Solicitors |
3,439,600 |
- |
|
VAT |
11,371 |
- |
|
Prepayments |
14,622 |
7,828 |
|
|
3,488,003 |
15,555 |
10. |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
|
|
|
31.3.23 |
31.3.22 |
|
|
£ |
£ |
|
Other loans (see note 11) |
623,780 |
606,685 |
|
VAT |
- |
8 |
|
Rent deposit |
3,027 |
3,861 |
|
Accruals |
120,736 |
19,549 |
|
Rent/Service charge received in advance |
19,566 |
5,621 |
|
|
767,109 |
635,724 |
11. |
LOANS |
|
|
|
An analysis of the maturity of loans is given below: |
|
|
|
|
31.3.23 |
31.3.22 |
|
|
£ |
£ |
|
Amounts falling due within one year on demand: |
|
|
|
LBTH loan facility |
623,780 |
606,685 |
12. |
SECURED DEBTS |
|
|
|
The following secured debts are included within creditors: |
|
|
|
|
31.3.23 |
31.3.22 |
|
|
£ |
£ |
|
LBTH loan facility |
623,780 |
606,685 |
TheLondonBoroughofTowerHamletsloanfacilityissecuredbyasubsequentchargeonthecharity's freehold
property.
continued...
Page 16
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023
13. MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
General fund
Property revaluation reserve.
TOTAL FUNDS
Net movement in funds, included in the above are a
Unrestricted funds
General fund
Restricted funds
General fund
Property revaluation reserve.
TOTAL FUNDS |
At 1.4.22
£
431,019
3,773,708
1,619,607
5,393,315
5,824,334
s follows: |
Net
movement
in funds
£
(44,126)
711,967
(778,536)
(66,569)
(110,695)
Incoming
resources
£
108,218
-
-
-
108,218 |
|
Transfers
between
funds
£
(39,074)
39,074
-
39,074
-
Resources
expended
£
(152,344)
711,967
(778,536)
(66,569)
(218,913) |
At
31.3.23
£
347,819
4,524,749
841,071
5,365,820
5,713,639
Movement
in funds
£
(44,126)
711,967
(778,536)
(66,569)
(110,695) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continued...
Page 17
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
13. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
At 1.4.21
£
Unrestricted funds
General fund
325,526
Restricted funds
General fund
3,779,881
Property revaluation reserve.
1,619,607
5,399,488
TOTAL FUNDS
5,725,014
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
183,320
Restricted funds
General fund
-
TOTAL FUNDS
183,320 |
Net
movement
in funds
£
106,936
(6,173)
-
(6,173)
100,763
Resources
expended
£
(76,384)
(6,173)
(82,557) |
At
31.3.22
£
432,462
3,773,708
1,619,607
5,393,315
5,825,777
Movement
in funds
£
106,936
(6,173)
100,763 |
|
|
|
|
|
|
|
|
|
continued...
Page 18
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
13. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
Unrestricted funds
General fund
Restricted funds
General fund
Property revaluation reserve.
TOTAL FUNDS |
At 1.4.21
£
325,526
3,779,881
1,619,607
5,399,488
5,725,014 |
Net
movement
in funds
£
62,810
705,794
(778,536)
(72,742)
(9,932) |
Transfers
between
funds
£
(39,074)
39,074
-
39,074
- |
At
31.3.23
£
349,262
4,524,749
841,071 |
|
|
|
|
5,365,820 |
|
|
|
|
5,715,082 |
Acurrentyear12monthsandprioryear12monthscombinednetmovementinfunds,includedintheaboveare as
follows:
Unrestricted funds
General fund
Restricted funds
General fund
Property revaluation reserve.
TOTAL FUNDS |
Incoming
resources
£
291,538
-
-
-
291,538 |
Resources
Movement
expended
in funds
£
£
(228,728)
62,810
705,794
705,794
(778,536)
(778,536)
(72,742)
(72,742)
(301,470)
(9,932) |
|
|
|
Purposes of unrestricted funds
Unrestricted funds represents the Surplus/deficit on the day to day activities of the charity.
Purposes of restricted funds
The general restricted funds represents the net book value of the freehold land and building less the related loans.
ThePropertyrevaluationreserverepresentstheincrease/decreaseinthebookvalueofthefreeholdpropertiesat fair
value.Thepropertieswillberevaluedeverythreeyearsandanyadjustmentstothisvaluewillbeaccounted for
through this reserve.
continued...
Page 19
DAVENANT CENTRE(THE)
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
13. MOVEMENT IN FUNDS - continued
Transfers between funds
ThetransferbetweenfundsrepresentstheBankloanrepaymentsandothertransactionsfromunrestrictedfunds for
restricted purposes.
14. CONTINGENT LIABILITIES
Thelandandbuildingwerepurchasedbyuseofgrantaidexceeding£1.6million.Theinitialandbyfarthe most
substantialgrantswasfromGreaterLondonCouncil(GLC).AconditionofthegrantaidwasthatGLCand successors
intitlehaveamortgagechargesecuredonthepropertytotheextentofthegrantaid(£1,093,470).Thischarge was
forthirtyyearsfrom6June1984to5thJune2014andhasnowexpired.AstheGLChasbeenabolished,itis unclear
whothesuccessorsintitleareandthelegalchargeremainsinplaceattheLandRegistry.Themortgageisa charge,
contingent on any breaches of the conditions of grant aid and would normally be payable.
15. RELATED PARTY DISCLOSURES
TheTrusteesconsiderTheLondonBoroughofTowerHamletstobearelatedpartybyvirtueofthefactthatit has
advancedinterestbearingloanfacilitieswithnopredefinedscheduleforrepaymentofthesefacilities.The total
amount outstanding at the year end amounted to £623,780 (2022 £606,685).
Page 20
DAVENANT CENTRE(THE)
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2023
|
31.3.23 |
31.3.22 |
|
£ |
£ |
INCOME AND ENDOWMENTS |
|
|
Investment income |
|
|
Rents receivable |
103,559 |
153,777 |
Other income |
|
|
Insurance reimbursed |
2,594 |
7,468 |
Service charges |
- |
18,208 |
Utilities recharged |
- |
3,867 |
Bad Debt Recovered |
2,065 |
- |
|
4,659 |
29,543 |
Total incoming resources |
108,218 |
183,320 |
EXPENDITURE |
|
|
Investment management costs |
|
|
Insurance |
11,429 |
12,375 |
Sundries |
290 |
240 |
Management fees |
1,452 |
7,766 |
Property repairs |
14,843 |
15,030 |
Bank Charges |
100 |
122 |
Light & heat |
101,776 |
23,440 |
Cleaning |
3,270 |
1,512 |
Water rates |
8,077 |
4,252 |
Irrecoverable VAT |
19 |
3,857 |
Postage and stationary |
55 |
25 |
Computer expenses |
384 |
384 |
Interest - LBTH overdraft |
17,095 |
6,173 |
Accountancy fees |
3,950 |
3,100 |
Auditors' remuneration |
4,600 |
2,700 |
Legal & professional fees |
1,533 |
1,581 |
Finance charges |
566 |
- |
|
169,439 |
82,557 |
Other |
|
|
Loss on sale of tangible fixed assets |
49,474 |
- |
Total resources expended |
218,913 |
82,557 |
Net (expenditure)/income |
(110,695) |
100,763 |
This page does not form part of the statutory financial statements
Page 21