REGIsfERED COMPANY NUMBER: 01799707 (England and Wales) REGisfERED CHARrrY NUMBEtL" 289235 REPORT OF THE TRusfEES AMD FINAMCIAL STATEMENTS R THE H20 FOR DAvENAl CEPRE HE ASHFOIIDS Choileied Ceililied Accountants Registoiod Auclilors
THE DAVENANT QE_1irRE CONTEItts OF THE FINANaAL ATEmENTs R THE YEAR E ED AR 24 Report of the Trusteqs I to 6 Rep(Yt of the IndependentAudit 7 to 10 statement rf Flnancial Actiyiiies li 12 Notes to the TrOnaal Ststements 13 to 20 Detalled Statement of Finanaal Acllvliles 21
srERED NUMBER. 01799707 REPORT OF THE TRUSTEES E YEAR ENDED 31 MARCH 2024 The trustees who are also direLtors of the charity for the purposes of the Companes Act 2006, present thr rewrt Ylith the finanaal statements of the (harity for the year ended 31 March 2024. The trustees have adDPted the provi%ons of Accounts"ng and Repjrting ty Charities.. Statement of Recommended practi aprAicable to charities preparing thelr accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effecknve l January 20191. OBJECTIVES AND AcrivrriES Objective5 and aims The charity'5 principal actwity during the year continued to be that of the provision of communty ntre5 for the educab.onal and social beneffts of the inhabitants of the London Borough of Tower Hamlets. The Communlty Centres IoL7tion and charities (Kcupying them during the year are;. al 179-181 whech3o Road, London, El IDN Contract for sale wa5 exchanged on 6th March 2023 and completion took pla on Ilth April 2023. bl 183-185 Whtiechapd Road, London, El IDN il The RainLK)w Centre, a registered tharty providing children's playgroup ServIS. ii) CGL, a registered charty providing a range of treatment sewes for drug and alcohol reLed l5e. The truee5 consider that The Davenant Centre charty is athieving its obJ"ecbves thmugh the above Char"eS, who ctojpy the propertie5 owned by the charty. The trustees cfirM that they have gwen due consderation to the alarity Commission's published gUae on PuLIic Benefft requirnent under the Char6ties Act 2011. srRATEGIC REPORT Financial revlew Principal funding sources The Davenant Centre's maln SOU of fvnding during the peri&J wa5 from rental income ¢Jerived from the leiting of its tyio propErties to other charib"es. The rental income for the year has gone down in the year due to the propety at 179-181 WhitechapEI Road, being vacant thrghOut the period Reserves policy The totsl Unrestrtted funds at 31st Marth 2024 arnujnted to £3,721.103 (2023 £347,819). These funds repre1t surplusldefiat on the day to day activit5 of the charty. The total Restricted funds at 31st Narch 2024 8mounted to £2,550,000 (2023 £5,365,820). The restricted funds represent the net bTh)k value of the freehold kand and bjildings and funds due from the sak of building at 179-181 WhitechapEI Road, less the related loans. The property revaluation reserve induded within the total Restritted funds at 31* Marth 2024 arnounted to £841.071 {2023 £841,071). These funds cAn onty te used for any accounts'ng adjustments in the fair value of the Freehold properknes. The Restricted funds cannot be used for the day to day acbv6tie5 of the thar Going concern The trustees have congdered the going COnM S.On of the company and a 5akn'sfied that the company has sufficient reserves trj continue to 0rate for the immediate future with the help of the London BorcAJgh of Tower Hamlets Page I
VE STERED 707 REPORT OF THE TRUSTEES R THE ENDED 31 MA 2024 srRATEGIC REPORT Financial review Summary of activities for the year The totsl income receivable by the Charity in the year arnoLJntsd to £281,149 (2023 £108,218). The total expenditure for the year amounted to £132,358 12023 £218,193}. The net income for the year amounted to £148,791 (2023 deficit £110,695). The deficit malnty Jed from the increased light and heat co5 in the year a5 well a5 a notional105s on the sale of the building. The Charty's t)verall debt deLreased to Nil 12023 £623,780) following repayThent of London BoroLKJh of Tower Harnlet5 faalities Ilth Awl 2023. Principal rlsks and uncertainties The Davenant Centre is dependent on rental income from the two Communty Centres which are let out to other Charitie5. The economic climate for the past few years has been difficult for Charit5 generally who suNive cn donab.ons from the public or grants from other public dieS. If the Tenants are Unab tr) pay the rent on time or go into adrnini5tration or liquidation, The Davenant cent in turn is unable to make payments for its Loan commitments and repairs to ts buiklings as and when they arise. In addition, 5irKe Marth 2L120, Covid-19 has affetted many charitie5 financially and con5equenUy their continued ryration. The hvo cornrnunity ntre buildings are over 100 year5 old and may from time to time require major repairs am1 furtxshments and the trustees consider that the funds held at the bank are rUired to rneet these cornrnitments. Revaluatlon of frnehold property The tsvo propeeS were professionally valued by Dobbin & Sullivan, Chartered Surveyors during Septernter 2019 at an on market value of £6,(H)O,000. On the sale of one of the buildingi the remaining property value amounts to £2,550,0(X). The trustees are of the opinion this amount represents a fabr value at the Balan Sheet date. STRUCRE GOVERNANCE AND MANAGEMENT Go¥ernin9 document The cornpany is registered as a tharable company limited by guarnntee as set up in the Memorandum of A5SOOation on 13 March 1984. The management of the cotnpany is the responsibility of the trustees who are elettl and c4)-OPted under the tems of the Articles of Associatk)n. The PA)ard of directors is made up of the the t$t of the Davenant Centre. Recruitment and appointment of new trustees The rd of tnj$ will engjre that any new appointMts will have an approprke mix of busines5 5kill5. Oryanlsatlonal strurture The trustees are responsible for the overall management of the charity. The trustees have appointed a firm of chartered surveyors to manage the prO[rtIeS and provide administrative and financial services from January 2023. The trustees meet regularly to review the activitie5 and finèndal performance. They also meet on infomal basis as the need arise5. The d)arrty ha5 no employees. Induction and training of new trustees New trustees are made aware of their responsibi1.es. This includes an Introd10 to the objethes, scope aThJ policles of the charity. Related parties The Ldon Borough of Tower Hamlets has provided financial support through an overdraft facilty to the charity. This frdcillty am(nted to £Nil at 31st March 2024 12023 £623,780). Interest 15 payable and the facilty was secured by SeC(d charge over the charity's proFerties. These fadlrties We repaKJ on Ilth April 2023. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 01799707 (England and Wales) Registered Charlty number 289235 Page 2
REPORT OF THE TRUSTEES R THE YEAR E14DED 31 MARCH 2024 Re9lstsred office 114-116 G0Maye5 Road Iword IG3 9UZ J A Pulford MBE G K Collins Ms C A Rider Chaplain {ap[mnted 13.3.24) Ms R Nizamuddin Sustainabilty Programme Manager {appw)inted 13.3.24} Ms T A C Baird Architect (ap)int 13.3.24) Company Secretsry Senior Statutory Auditor Athok Mukundlal Shah Auditors Ashfords Partrershlp LLP 11+116 G1Ma Rtsad Iord Esex IG3 9UZ Bankers National Westminstsr Bank PLC Mile End Brdnch Albion Yard 3311335 WhttechaFel Road London EI IAU Page 3
GISTERED REPORT OF THE TRUSTEES E YEAR ENDED 31 MA BACKGROUND INFORMATION OF THE CHARITY The Davenant Centre 15 a former GLC- owned building that was transfeThed by Grant Aid, along wh the neighbouring Jaganori Centre to the trustees of the Centre in 1984 by the formation ef a Company Limited by guarantee. The properties are Ic(ated at 179-181 and 183-185 Whitethapel Road, London El. The property at I7181 Whitechapel Road was on 6th March 2023. In 2004, Tr Charfjty embarked on a major capital project to trBnsform the 179-181 buildir4J la former Virtorian schocl) into a modern educats.on and youth centre with the help of funding secured frorn a numLv of 9)Ur including loan fao'lities from Natwest Bank. However by 2005 the wolt was suffering from Seve funding shortsge ultIng fr¢)m cost overruns as a consequence of a numLEr of fattors including the discovery of ancient burial mains and InCaSe$ in building material costs. During 2006, The Davenant Centre encountered ggnificant internal management problems, culminating in lengthy lits"gation proceedings betrieen a number of fomier trustee and the management committee (new trustees) resultsng in paynEnt delays to the builder5, additional al5 cos and interest payments on contrdctual liabilities. A court order was subsequenty approved in February 2007 settin9 Out various COrKIon5 induding the treation of a steering committee consisb'ng of more than 4 people tD carry out the fLJnction of the management committee to deal with all matters arising from and reL3ting tr) the financial affairs and day to day business of the Centre. During 27 and 2008, The Davenant Centre had financial prolAem5 resultirvJ frorn delay5 in completion of the Centre and the consequent kJs5 of revenue from ntaI income of the Centre. This to the Centre defaU1ThJ on Loan rq)ayments to the Barik and the rerwotiation of the facilities. In the ea part of 2009, London Borough of Tower Hamlets consdered that there would a very high risk that a high profile cornrnunty aet whth has benefited from ggnificant public Snvesbment, WOLJld be lo# and alJVan further fundiThJ facllloes in subordination to the NaiWe Loan facilities, subject to a nUmr of condfoon5. As part of the financial restruttLJrirvJ, the Davenant Centre was taken into administrab.on in luly 2009. The Natwest Bank loan tsrms were furth renegotiated and the London Borough of Tower Hamlets advanced additional funding facilitS to the Cenire. Two senior Offir5 of the London Borough of Tower Hamlets were appyjinted to the Board of trustees to ensure correct governance of the oryanis)tion. As trustees, they were required to take a disinterested view in the affair5 of The Davenant Centre indepeThlentty from their respon9bi1e5 as Council officers. From this p)int, the Davenant Centre ernbarked upon a business recovery process aimed at ensuring that the Centre was able to pay all outgoings from its income and that the two buildings In ts portfolK) remain available for community use. The trustee5 have also ensured that the Charity's debt paYments are met on time and have focused on reduorwj the total debt of the tharity. As part of this recovery prCess, in a bid to reduce the cwtgoings, the tStee5 decided to change its busin mojel frorn lettj'ng of Sery1 offices at the Centre to a grant of leases to sngle occupiers ft>r each of the tm propErb"es. The two buildings were let out to tr40 parate charib.es whose alTr and objettbves correlated to those of the Dalant Centre. t)uring the finanoal year 2016-17, The Davenant Centre's priority has teen to attrart attematwe income generating u for L83-185 Whtschapel Road, followirvJ the In1verY and Subsequent ck)sure of former tenan¢ Jagonari Women's Education Resource Centre IJWERC) at the end of August 2015. At the b8Jinning of September 2015, The Davenant Centre granted a lease for the c¢cupation of the rear nursery premi and ground floor Offi to Rainbow House, a [KoVer of important loKal chiFdcare seryices. Efforts continued to bring the remainder of 183-185 Whtschapel Road. cotnPri5ing the first, second and third floors, into revenue earnirwJ use. This included viewings by a number of communty organisab.ons and a feasibilty study undertaken in conjunction with London Borough of Tower Hamlets for converting the space fc)r use as an enterprise workspace ntre. This wwld have been dependent on grant funding from the Council's Whitechapel Regeneration team. The propDsed grant was not subsequently forthcorning and the search for alternative tenants continued. Ir) NovemtrEr 2016, The Davenant Centre entered Into a lea* agreement with Lrfeline, a charity which had been awarded a drugs recovery contrart by the London Bomugh of Tower Hamlets, to occupy the three upper floors of 163-185 Whthchapel Road. Because the building had been left in a somewhat rundown wdition by JWERC, an eXtenve amount of landlord's works were esary to bring the building back into Viab use. Page 4
OAV ED 1799 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The Davenant Centre recewed notifKation on 2nd JLJne 2017 that Lrfeline had been placed into receNership and of the appointment of an adrninistrator ft)r Lifeline, to whom a claim for the unpaid funds was submrtted. Subsequendy the L¢)ndon Borough of Tower Hamlets appoint CGL, a large national charity deliverirvJ simiLHr drug recovery servi5 to Lifeline, to tske over the project. Under thi5 aThangement, CGL decided to contir)ue delNery of the drugs Very seNices from The Davenant Centre's building at 183-185 Whitechapel Road. CGL has sn been occupying the premises under a linse agreed wrth the receivers of Lifeline, who have continued to the pay the full rnonthly rent stkofied in Lifeline's lease, to end of June 2018. Frorn July 2018, CGL have occutmed the premi on a linse. By mutual agreement, the Bangladeshi Drugs Project who C(Cupd 179-181 Whitechapel Road, terminated their lease in March 2018, due to their financK31 inability to pay the rent and the F¥emises were let to YMCA George Williams College, initialty on a IenSe from 1st Nay 2018 and a 5 year lease from 1st August 2018.The lease was relinquished at its mid point on 31 July 2021. The Davenant Centre has thefOre been able to continue to maintain liquidity over this rIOd and had £84,452 at the Bank & the year end {2023 E442,7451, The company's cash p)sition has continued to be closely and ukirly monitored and a nUrnb of optkms for IreasIng le¥UeS and buikling reserves are under Cdern.0n. The debt owed to London Borough of Tower Hamlets of £623,780 was fully repaid on Ilth April 2023. The building at 179-181 Whitethapl Road, was g)Id for £3,450,000 on 6th March 2023 urth completKJn tsking plats on Ilth April 2023. The trustees reached the decision to sell this building after considering various issues wrth finding appropriate tenants and the time taken to manage the builditvJs as wdl as the conb.nued investment required to maintaln the bLJildings thith are over 100 years dd. Frorn 1st January 2023, the tmstees have aPinted Dobbin and Sullwan, Charter&J Surveyors as the property manager to fully manage the property at 183-185 whechapel Road. STATEMENT OF TRUSTEES. RESPONSIBILThIES The trustees {who are also the dirertors of Davenant Centre(THE) for the pUr[seS of company law) are resps•e for preparing the RepK)rt of the Truees and the financial statements in accordan th applicable law and Unrf(&l Jd0M Accounting Standards (United Kiwdom Generally Accepted Accounting Practi). Company law requires the trustees to prepare financial statements for each finandal year whlch give a true and fair vlew of the stste of affairs of the charitable company and of the incoming resources and application of resources, including the inc(xne and expend6ture, of the charitable company for that Fer. In preparing those finanoal statements, the truees are required to selett sutsble accounting polKie5 and then appty them Consteny* obseNe the meth¢yJs and prinoples in the Charity SORP- make judgements and estimates that are rea9)nable and prudent. prepare the finanaal staternents on the goino cOrM basis unless it is Inappropriate to presume that the charitable company will continue in business. The tW51ees are responslble for keeping woper accounting records which dIose with reasonable accuracy at any tirne the finanaal positKJn of the charitsble company and to enable them to ensure that the financial statsments comply wth the Companies Act 2006. They are a19) responsible for safeguarding the assets of the charttable company and hence for tsking wsonable steps for the preventy.on 8nd detection of fraud and other Srwularities. ATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the trustee5 are aware, therE is no rejevant information (as defined by Section 418 of the Companies Art 2006) of whlth the charitsble companys auditors are unaware, and each trustee has tsken all the steps that they ought to have tsken as a trustee in order to make them aware of any audit information and to estsbli5h that the charitatrAe cornpany's auditors are aware of that infomiation. AUDITORS The auditors, A5hfords Partnership LLP, wlll be propMd for re-apwbntment at the forthcoming Annual General Meeting. Rert of the trustee5, inCorrating a strategic report, apwov&l by grder of the tthird of tru51ees, as the company directors, on 24 December 2024 and svJned on the board's tehalf by.. Page S
RE 0179 70 REPORT OF THE TRusfEES R THE YEAR ENDED 31 MARCH 2024 J A Pulford MBE - Tru Page 6
REPORTOF THE 114DEPENDENT AUDITORSTO THE MEMBERS OF DAVENANT Opinion We have audtsd the financial siatements & Davenant Centre(THEI (the 'CharItab company,) for the year ended 31 March 2024 which comprise the Ststement of Finanaal Activibes, the Balan Sheet and notes to the financial Statements, including a summary of significant accounting poliae5. The finanaal reporting fratnework that ha5 trttn applied in their preparation is applicable law and United Kingdom Accoundng Standards {United Kingdom Generally Atted Accounb"ng Prnctice). In our opinion the financial statements.. give a true and fair view of the state of t1 charitsble companys affalrs as at 31 Mard) 2024 and of Its incoming resources and application of SOurs, including its income and e%nditure, for the year then ended,. have been properly wepared in accordance wth United KirrfJdom Generally ACpted Accounbng pr1. and have been ppared in accordan wh the requirements of the Cornpanies Att 2006. Basis for opinion We conducted our audit in accordan with Intemational Stsndards on Auditing {UKI IISAS {UKII and aPicable law. Our responsibilities under those standards are further descriLEd in the Auditors, responsibilitie5 fer the audit of the financial statements section of our report. We are inderEndent of the charitable company in accordan with the ethical requirements that are relevant to our audrt of the finanoal statements in the UK, induding the FRC5 Ethical Stsndard, we have fulfilled our other ethical responsbiliti'es in accordance with the requirements. We believe that the aud eviden we have obtained is suffiaent and appropriate to rAovide a basis for our opinion. Concluslons relating to going concern In auditing the flnancial statements, we have concluded that the trustees, u of the going cOnM bags of accounting in the preparation of the finanaal 5taternents is appropriate. Based on the work we have performed, we have not identified any rnaterial Unrtainbe5 relating to events or conditKJns that, individualty or collectivelyi may cast significant doubt on the charitable company's abilty to conb.nue as a going COnrn for a pertod of at least twelve months frorn when the financtal statements are authori for issue. Our respDnsibilrties and the responsibileS of the trustees with reskEtt to going u)nrn are described the relevant 5eLtLins of this report. Other Inforniation The tnjstees are responsiNe for the other infOrtion. The other information comprises the infom)ats"on included in the Annual Report other than the finanaal ststements and our Report of the Indendent Auditors thereon. Our opinK)n on the financial statements does nrt cover the other inft>rmation and, expt to the extent otherwise explicitly std in our rekrt we do not express any fcffii of assuran concluson thereon. In connection with iyjr audit of the financial statements, our res[4)nbilitY is to read the other inforfflation and, in doing , consider whether the other information is Material inconsistent with the financial staterllents or our knowl&Jge obtained in the audfc or othewise appears to te rnatsrially misstated. If we Mlentify such material incon9Stencies or apparent material mis#atements, we are qUired to determine whether this gives rise to a material misstatement in the financial statements themlves, If, based on the work we have Ferformed, we condude that there is a material misstatement of this other infom'on, we are wuir&l to report that f*. We have mthing to report in this regard. Opinions on other matters prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Rert of the Trustees for the financial year for whkh the finandal statements are prepared is consistent with the financial ststements. and the Report of the Truaees has LEen prepared in accordan with appIltre legal requirements. Page 7
REPORT OFTHE INDEPENDENT AUDITORS TO THE MEMBERS OF DAVENANT Matter5 on which we are requlred to report by exception In the light of the knowledge and understanding of the charitsble company and rts environment obtsined in the course of the aud¢ we have not identified material rnisstatements in the Report of the Tru&. We have nothing tg re[ in re5Fert of the fdlowong tter$ where the Companies 2LK)6 requires us to rel to you if, in our opynion: adequate accounting records have not been kept or returns &Jequate for our audit have not tEen received from branches not visited by us; or the financial Statements are not In agreement with the accountiw records arml returns. or rtain disclosures of twstees, MUneratIon specified by law are not made,. or we have not received all the infomatson and explanations we QUI for our audtt. or the trust were not entitled to take advantsge of the small companies exemption from the requlrement to prepare Strategic RetX)rt or in preparing the Report of the Twstees. Responsibilitles of trustees s explained more fully in the Ststement of Tnjsteeg Responsibilities, the trustees (who are 31so the dirtar5 of the charitable company for the purp)ses of cornpany law} are responsible for the preparation of the hnancial sLatefflents aTrJ for beiryJ satisfied that they give a true and fair view, and for such intemal cortrol a5 the trustee5 determine is necessary to enable the preparation of financkal ststements that a free from material missiatement, whether due to fraud or error. In preparing the financial ststements, the trustees are responsib for awsng the charitsble company's abilty to continue as a going cOnM, disclosing. as applicable, matters relatj to going conrn and usng the going concern basis of Counting unless the trustees either Intend to Ilquidate the drthble company or to cease operab"(ffis, or have no reallth altemative but to do so. Page 8
REPORTOFTHE INDEPENDENT AUDITORSTOTHE MEMBERSOF DAVENANT CENTRE THE Our responslbllltles lor the audlt of the Ilnancial statements Our objectives are tr) obtain reasonabk assuran about whether the financial staternents as a whole are fr from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that indudes ovr opinion. Reasonable assurance is a high level of assuran, but is not a guarantee that an audit conduct&l in accordance with tSAs (UK) will always detect a materlal misststement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggwate, they could reasonably be expected to influen the eG)nomt deci%ons of users taken on the basis of these financial statements. Chjr approach to ideffjlng and assesgng the risks of material mi55tstement in respect of IrregUlare$, Indudlng fraud and non-complian with laws and regulations, was as follows- The engagement partner ensured that the engagement team collectivety had the approprhite c0mpetrn, capabilities and 5kn115 to identify or recognise non-ccKnpli3nce wvch applicable laws and regulations,. we identified the law5 and regulation5 applicab to the company through dixu55ions Wrth direttors and other management, and from our commer(ial knowledge and experien of the congjltancy services sertor; we focused on SlfIC laws and gU1.0nS which we consdered may have a direct rnaterial effect on the financial statements or the operatlOll5 of the companyi induding the Companles Art 2006, taxation legIatIon and dats prc)tection, anti-bribery, employmenL and heah and safety l&Ji48tion,' kve asseswi the extent of compliance with the law5 and regulations identrfied above through making enquiries of management and inspeth.ng legal corresp(A)derKe: and identffied laws and regulations were communicated wthin the audit tearn regulady and the team remained alert to InStsn of n0n-cornplian throughout the audit. We assessed the susceptibilTty of the cornpany'5 finanaal statements to rnaterial misstatement, irKluding obtaining an understanding of how fr3ud Mht (tcur. by making enquiries of management as to where they c(M)sidered there was susceptibiltty tri frnud, their thowledge of artual, SUSrted and alleged fraud,. and considering the internal controls in pla to mitsgate risk5 of fraud and non-complian with laws and reguktion5. To address the risk of fraud through management bias and override of controls, we.. performed analykncal ProdureS to identify any unusual or unexpected relationships; - tested journal entr$ to idenb'fy unusual tranctbns. - assessed whether judgements and a55umpts.ons made in determining the accounting esb"mates were reasonable - were indicative of bias; and investigated the rats"onale behind significant or unugjal transactions. In re5F¥)nse to the risk of irregularities and non-comr4iance with laws and regulations, we designed procedures which induded, trtjt Ylere not litnited to.. agreeing finanaal ststernent disclosures to undertying supporting documentstion. reading the minutes of meetings of those charged wtih governanTr,' enquiring of tnanagement as to actual and potential litigat and ckims,. and reviewing corre5p(A)dere with HMRC, relevant regulators and the company's legal advisors. There a inherent limitations in our audit prOdureS described above. The more removed that laws and regulations are from financial transactions, the les5 like is that we would become aware of non£ompl1an. Audib"ng standards al limit the audit prcKedures reqLJired to identify rK)n-complIan with laws and regulatnS to enquiry of the directors and other management and the insmion of regulatory ènd legal correspondence, if any. A further description of our resnbilitieS for the audit of the finanaal Statements is located on the Financial Rewrbng Council's website at ww.frc.org.uklauditorsrespK)nsbilitie5. This description forms part of our Rewrt of the Independent Auditors. Page 9
REPORT OF THE INDEPENDENT AUDITOR DAVENANT HEM BERS OF Use of our report This is made Sole to the charitsble companvs memlxrs, a5 a bth, in accordan with Chapter 3 of Part 16 of the Companles Art 2006. Our audf( work has been undertaken so that we might state to the charitable company's members those tter$ we are required to state to thern in an auditors, port and for no other purpose. To the fullest exient pEmiitted by law, we do not accept or asgjme responsibility to anyone other than the charitsble company and the charitsble companls members as a body, for our aud worl for this rept, or for the opinions we have forrned. Asho nio Auditor) d on behalf of Ashfords Partnership LLP 116 Gwdmayes ROJJ li ex IG3 9UZ 24 tlecemter 2024 Page 10
DAVENANT STATEME1 OF FINANCIAL Acv[rIEs FOR THE YEAR ENDED 31 MARCH 2024 31.3.24 Total fund5 31.3.23 Total funds Unrestrlcted Restricted fund5 funds INCOME AND ENDOWMENTS FROM Inve#ment income Other Income 180,958 100,191 180,958 100,191 103,559 4,659 Totsl 281,149 281,149 108,218 EXPENDrnIRE ON Raisng funds 78,712 819 79,531 169,439 Charftable activlties (kneral 52,827 52,827 Other 49,474 Total 131,539 819 132,358 218,913 NEf INCOMEI{EXPENDrfuRE) Transfers beiween funds other recognised gainsl(losses) Galns on revaluaty.on of fix assets 149,610 2,815,001 (819) {2,815,(K)11 148,791 1110,6951 14 408,673 408,673 Net nfftment in funds 3,373,284 {2,815.820) 557,464 (110,6951 RECONCIUATION OF FiINDS Trkal funds brought forward 347,819 5,365,820 5,713.639 5,824,334 TOTAL FUNDS CARRIED FORWARD 3,721,103 2,550,000 6,271,103 5.713,639 The notes form part of these financial ststements Page 11
VE T CEKr EGI ERED 707 BALANCE SHEET 31 MARCH 2024 31.3.24 Total fund5 31.3.23 Total fvnds Unrestritted fvTKIs Restrfcted funds Nrtes FIXED ASS5 Investments Jnvestments Investment propty 3,610,598 3,610,598 2.550,OC¥J 2.550,1XJO 2,550,OCN) 3,610,598 2,550,000 6,160,598 2.550,000 CURRENT ASSEts Debtors Cash at bank io 86,788 84,452 86.788 84,452 3.488,003 442,745 171,240 171,24Q 3,930,748 CREDNORS AUnts falling due within one year li {60,735) (60,7351 (767,1091 NET CURREp¥f ASSETS 110,505 110.505 3,163,639 TOTAL ASSETS LESS CURRENT LIABILtTIES 3,721,103 2.550,000 6.271,103 5,713,639 NEf ASSErs 3,721,103 2,550,000 6.271,103 5.713,639 FUNDS Unrestrirted funds Restritted funds 14 3.721,103 2.550,OCK) 347,819 5,365,820 TOTAL FUNDS 6,271,103 5,713,639 These financial staternerts have bn prepared in accordance wf(h the provisK)ns applicable to Charable companies subject to the small companies reglme. TPE financkil statements were approwj by the PKJard of Trust and authorised for iwe on 24 Dmtr¢r 2024 and were svJned on rts behalf by.. J A Pulford MBE - Trustee The notes form part of these finanaal statements Page 12
DAVENANT CENTRE THE NOTES TO THE FINANCIAL ATEmENTs FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Basis of preparlng the flnanclal ststements The financial ststements of the charitsble company, which is a puNic ner entity utxler FRS 102, have prepared in accordance with the chariti.es SORP IFRS 102) 'Accounkn"ng and Reportirvj by Charities.. Statement of Recommended Practi applicable to charrties preparing their accounts in accordance with the Financial Repothng Standard aptdicable in the UK and ReputAic of Ireland (FRS 1021 (effective l January 2019),, Financial Re)rtIng standard 102 The Financial Rerting Standard applicable in the UK and Republic of Irdand, and the Companies Art 2006. The financial statsments have been prepared under the historical cu51 convention, wyith the eXPts.Dn of invements which are iluded at market value, as modified by the revaluation of rtaIrt assets. Income All Income 15 recognised in the Statement gf financial ActivitE5 On the tharity ha5 entitlement to the funds, it is probable that the income will be receivèd and the arnount can be measura reliatAy. Expenditure Liabilibes are recognlsed as expendtiure as soon as there is a legal or constructive obllgation commltting the tharty to that expendvcure, is probable that a transfer of economic benefits will be required in settlement an(J the amount of the obligation can measured reliably. ExndrtUre Is accounted for on an accruals basis and has been das9fied under headings that aggregate all cost related to the category. Where costs cannot LE direcdy attributed to particular headings they have been allocated to activities on a bas5 COn5iStent with the use of resources. Grants offered subieLt to col10n5 which have nL teen met * ttE year end da are noted as a commitmu but not accnJ&J as expenditure. Invesiment property Investment property is shown at most ent valuation. Any aggregate gjrplus cy dert arising from changes in fair value is recognised in the Ststement of Financial Activibe5. The Trustees consider that no Eeplation prow4Dn is required on the Investmert propErt. Taxation The charity is exempt from cortM)ration tsx on its charitatAe attwities. FurNI accountlng General funds are unrestritted funds which are aVailae for the use at the discretion of the Tnjstees in furtheran of the athities of the charty and have not been desgnated for other purposes. Restricted funds are funds which are to be used in accordan with sFEafic rerictw)ns impised by donors which have been Trised by the charity for particular purpx)ses. Tr cost of raigng and aJmini#ering such fund are charyed again the speofic fund. The aim and u of each restricted fund is set out in the notes to the financial 5taterllents. INVmE1 INCOME 31.3.24 31.3.23 Rent r1Vable Other fixed asset invest- FII [kpOs account interest 168,942 8,416 3,6(N) 103,559 180,958 103,559 Page 13 continued...
VENA T CENTRE THE NOTES TO THE FINANaAL ATEMENTs- continued FOR THE YEAR ENDED 31 MARCH 2024 RAISING FUNDS Investment management costs 31.3.24 31.3.23 Insurance Sundries Management fee5 Property paIrS Bank Charges Light & heat aeaning Water rates 11,429 290 1,452 14,843 loo 101,776 3,270 8.077 6,314 9,217 140 26,776 3,456 485 k 11 Irrecoverable VAT PosEage and thtr"onary Computer expenses Intere5t- LBTH overdraft Accountancy fees Audth, remuneration Legal & profesgonal fees Finan charges 1,280 19 55 819 3,800 2,800 17,862 17,Cy)5 3,950 4,600 1,533 566 79,531 169,439 INCOMEI(EXPENDrruRE) Net incomel(eynditure) Is Sta after drgIng/(cr1tsng). 31.3.24 31.3.23 Deficfc on disFosal of fixed a55ets 49,474 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remunerats.on or otr benefits for the year erkjed 31 March 2024 for the year ended 31 March 2023. Trustees. expenses There were no trustees, exrenses paid for the year en(kd 31 March 2024 nor for the year ended 31 March 2023. STAFF COS The charity had no employees during the year and has had none for a nUMr of year Page 14 (ontinued...
140TES TO THE FINANCIAL ATEMENTS- continued R THE YEAR ENDED 31 MAR H 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTivrriES Unrestricted fvThJs Restrirted funds Totsl funds INCOME AND ENDOWMENTS FROM Investment [rOMe Other income 103,559 4,659 103,559 4,659 Total 108,218 108,218 EXPENDrruRE ON Rais'ng funds 152,344 17,095 169,439 other 49,474 49,474 Total 152,344 66.569 218,913 NET INCOMEI(EXPENDrruRE) Transfer5 between funds (44,126) {39,074) (66,569) 39,074 (110,695) Net movement in funds {83,2LXJ) (27,495) 1110,695) RECONCILIATION OF FUNDS Totsl funds brought forward 431,019 5,393,315 5,824,334 TOTAL FUNDS CARRIED FORWARD 347,819 5,365,820 5,713,639 FIXED ASSET IMVESTMENTS listed investments MARK VALUE Addib"ons Revaluations 3,201,925 408,673 At 31 March 2024 3.610,598 BOOK VALUE At 31 March 2024 3,610,598 At 31 March 2023 The were investment assets outgde the UK. Cost or valuation at 31 March 2024 is eSented by.. invethents Valuat*)n in 2024 408,673 3.201,925 3,610,598 Page 15 continued...
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR EMDED 31 MARCH 2024 INVESTMENT PROPERTY FAIR VALUE At l April 2023 and 31 Mar(h 2024 2.550,(M)O BOOK VALUE At 31 Marth 2024 2,550,CM)O At 31 March 2023 2,550,000 The propert5 at 179-181 and 183-185 whe£hap Road, London, El IDN were revalued by Dobbin & Sullivan, Chartered SuNeyors during Septemikr 2019 at £6,000,IJOO. The Tru&ees a of the opinion that the value of the remaining buikjing at 183-185 Whited)akEI Road, represents a fair value at the Balan Sheet date. 10. DEBTORS: AMOUNTS FALUNG DUE wrrHIN ONE YEAR 31.3.24 31.3.23 Amount due from tenants Arnount held by managing èJents Due from Sollcitors VAT P[Yments 40,295 34,884 9,730 12,680 3,439,600 11,371 14,622 7,150 4,459 86,788 3,488,003 11. CAEDThORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Other loans (see note 12) Rent deposrt Accruals RenVsetVi charge r1ved In advan 623,7PA) 3,027 120,736 19,566 3,027 54,707 3,001 60,n5 767,109 12. LOANS An analysls of the maturity of loans is given below: 31.3.24 31.3.23 Amounts falling due wthin one year on demand.. LBTH loan faalty 623,780 Page 16 continued...
DAVENANT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 13. SECURED DEBTS The fdlowing secured debts are Sncluded wfthin crèjrtors.. 31.3.24 31.3.23 LrH loan fdcilty 623,780 The LoThJon rough of Tower Hamlets loan f&ility was secured by a subsequent charge on the chaiity's freehold proFety.The facility was repaid on Ilth Apnl 2023. 14. MOVEMENT IN FUNDS Net movement in funds Trdnsfer5 between fvnds At 31.3.24 At 1.4.23 Unrestrirted funds General fund 347,819 558,283 2,815,(Ql 3,721,103 Restricted funds General fund 4,524,749 841,071 (819) {2,815,001) 1,708,929 841.071 Property revaluation reserve. 5,365,820 (819} (2,815,001) 2,550.ChJQ TOTAL FUNDS 5,713,639 557,464 6,271,103 Net movement in funds, induded in the above are as follows.. IncomiTrJ ur$ Gains ar*J losses Movement In fijnds expended Unrestrlcted lunds General fund 281,149 (131,539) 408,673 558,283 Restricted funds General fund {819) (8191 TOTAL FUNDS 281,149 (132,358) 408,673 557,464 Page 17 continued...
NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2024 14. MOVEMENT IN FUNDS- contlnued CparatIveS for m(bvement in funds Net movement in funds Transfers At 31.3.23 At 1.4.22 funds Unrestrirted fvndg General fund 431,019 {H,126) (39,0741 347,819 Re5trlcted funds General fvnd 3,773,708 1,619,607 711,967 (778,536) 39,074 4,524,749 841,071 prOrtY revaluation reserve. 5,393,315 {66,569) 39,074 5,365,820 TOTAL FUNDS 5,824,334 (110,695) 5,713,639 CompatBtwe net movement Sn funds, included Sn the atx)ve are as follows: IncomiThJ Resources exFended Movement in funds Llnre5tri¢ted fund5 General fund 108,218 1152,34) (44,126) Restricted funds General fund 711,967 1778,536) 711,967 (778,536) Property waluation reserve. (66,569) (66,569) TOTAL FUNDS 108,218 (218,913) (110,695) A current year 12 months and prior year 12 months combined is as fdlows: Net movement in funds Trnnsfers At 1.4.22 funds 31.3.24 Unrestricted fund5 General fund 431,019 514,157 2,775,927 3,721,103 Restricted funds Genal fund 3,773,7D8 1,619,607 711,148 1778,536) {2,775,927) 1,708,929 841,071 Property rewaluation reserve. 5,393,315 (67,388) {2,775,927) 2,550,L TOTAL FUNDS 5,824,334 446,769 6,271,103 Page 18 continued...
DAVENANT CENTRE HE TE THE XN srATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 14. MOVEMENT IN FUNDS- continued A current year 12 months and or year 12 mnths combined net movement in funds, included in the above are as follows.. Incorning resources Gains and losses Movement in funds expended Unrertricted funds General fund 389,367 (283,883) 408,673 514,157 Restrl¢tsd funds General fuThJ 711,148 1778,5361 711,148 (778,5361 operty revaluati re5erye. (67,3881 167,3881 TOTAL FUNDS 389,367 {351,271) 408,673 446,769 Purposes of unrestricted funds Unresthcted funds rePents the &Jrplusldeficit on the day to day act'wties of the thaTIty. Purposes of restrlrted funds The gene1 restrbcted funds represents the net bcok value of the freehold latwj and building kss the rela1 loans. The ppertY revaluation reserve represents the 1ncrease1decse in the bcx)k value of the freehold prokErUes at fair value. The properb.es will be revalued every three years and any adjustments to this value will accounted for through thi5 re5etve. Trnnsfers between funds The transÈr tethen funds represents the Bank loan repayments and other transattions from UnresknttI fvnds for restricted purposes. 15. CONTINGEMT LIABILtrIES The laTrJ and building were purchased by use of grant aid exceeding £1.6 million. The initial and by far the most yjbstantr'al grants wa5 from Greater London Counol (GLCI. A condition of the grant aid was that GLC and SUC%)r5 in title have a mortga9e charge secured on the pro[ to the extent of the grant aid (£1,093,470). This charge was for thirty years fmm 6 June 1984 to 5th Jtsne 2014 and has now expired. As the GLC has been aiy)lished, it is unclear who the su550r5 in te are and the gaI charge remain5 in place at the Land Registry. The nK>rtgwJe is a charge, contingent on any bread)es of the conditions of grant abd and w¢)uld normally be payable. Pège 19 CDntinL...
ENTRE THE OTES TO THE FINANCIAL STATEMENTS- continued EAR ENDED 31 MARCH 2024 16. RELATED PARTY DISCLOSURES The Tnjstees conslder The LOnde Borough of Tower Hamlets to te a related paty by virtue of the fact that had advancej interest be3n9 loan frdc11ES.TheSe facilit were repald on Ilth Aprti 2023. Page 20
DAVENANT CEfffliE DAILED ATEMENT OF FINANCIAL ACTIVMES FOR THE YEAR ENDED 31 MARCH 2024 31.3.24 31.3.23 INCOME AND ENDOWMEltts Investment income Rert r1Vable (Jher fixcfl asset invest. Fll Deposit account Interest 168,942 8,416 3,600 103,559 180,958 103,559 Other income InranTr reimbursed charges Utilit5 recharyed Bad Debt Recovered Other incorre 13,786 54,552 31,353 2,594 2,065 100,191 4.659 Total incoming resources 281.149 108,218 EXPENDrruRE Investment mJnJgement costs Insurance ndries Managemert fees FtropErty repairs Bank tharges ght & heat Cleaning Water rates lrrec0verae VAT Postage and stab"onary Computer expenses Intere- LBTh overdraft Accountallcy fees Auditorg remunerats.on Legal & profesaonal fs Finano tharges 11,429 290 1,452 14,843 loo 101,776 3,270 8,077 19 55 6,314 9,217 IÈK) 26,776 3,456 485 1,280 48 819 3,800 2,800 17,862 17,095 3,950 4,600 1,533 566 79531 169,439 arltable activities Giants toTenants 52,827 Other L055 on sale of trgIb fixed a5S 49.474 Totsl resources exp&ed 132,358 218.913 Net incomel{expenditure} 148,791 (110,695) This page (k)es not fom part of the statut financral ststements Page 21