Company Reglstratlon No. 01686399 (England and Wales) Charity Registration No, 289827 Tower Hamlets Community Transport Company Limited by Guarantee Annual Report and Financial Statements 31 March 2022 Accountability Europe Limited Omnibus Workspace 39-41 North Road London N7 9DP Tower Hamlets Community Transport Company Limited by Guarantee Trustees, Annual Report {Incorporating the Dlrectors, Report) Year ended 31 March 2022 The trustees, whD are also the directors for the purp05es of company law, present thelr report and the unaudited financial statements of the charity for the year ended 31 March 2022. Reference and admlnistratlve details: Reglstered Charity Name: Tower Hamlets Community Transport Charity Reglstratlon Number: 0289827 Company Registration Number.. 01686399 Principal Office and Registered office: 25-27 Newell StrÈet LimehousÈ London E14 7HP The Trusteesl Dlrectors for the year: Debbie Brady Dudley Flynn ITreasurerl Martin Young Company Secretary: Simon Rouse Accountants: Accountability Europe Limited Omnibus Workspace 39-41 North Road LDndon N7 gDP Tower Hamlets Community Transport Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directors, Report) Year ended 31 March 2022 srRUCTURE, GOVERNANCE AND MANAGEMENT Tower Hamlets Community Tran5POrt ITHCTI is a company limited by guarantee and has no share capltal. Its governing instrument is its Memorandum and Articles of Associatlon. The management of the company is the responsibility of the Tru5tÈes They and other membe15 form thè Management Committee, who are elected and co-opted under tho term% of the Articles of Association. The member groups can include any community group operating mainly but not ne¢èssarily exclusively within Tower Hamlets. Each member group has the right to appoint one representatlve to attend any general meèting and to vote on its behalf. The Management Committee are elected from the body of Group Representatives and others. They are required to complete an application form that specifies whether they are directly assoc13ted with 3 THCT member group and asks them to specify the skills and experience they are bringing to the gmmittee. THCT acts os a service provider to support other Tower Hamlets charities in achieving their aims. The board is able to co-opt members when it considers this necessary. Risk Policy: In line with the requirements of Charity Commissign guidancg, an initial risk revlew has been carried out. The charity is goin8 to work on developing a morg comprehensÈve exercise, reflectinE the matters that are considered to pose the m05t 5eriou5 Potential risks. During the year the charity has continued to review Health and Safety on the site. Objectives and Activities: The principal activlty of the Charity is the provision of a community transport network In the Londo Borough of Tower Hamlets. When planning activlties for the year, the Trustees paid regards to and have considered the Charity Commission's guidance on PLJblic benefit when decidlnB actlvities. From the provision of these transport resources THCT seeks to assist charitable and community organisatlDns in alleviating the social deprivation that exist5 In the London Borough of Tower 14amlets, thereby improving the conditions for borough residents who have encountered some form of deprlvation as a result of economic factor5, physical or learning disability. Public Benefit: We have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing our aims and objective% and in planning our future services. In paTticu13r the staff and the board of tiustees consider how our planned services will contribute fuTther to the aims and Dbjectives they have set. Tower Hamlets Communlty Transport Company Limited by Guarantee Trustees, Annual Report {Incorporating the Directors, Report) Year ended 31 March 2022 Golng Concern- Directors, Statement December 2022 During the year, the Trnstees have contlnued to negotiate for a new lease for the Newell Street site with the Landlord, the London Borough of Tower Hamlets. At the time of writins Tower Hamlets hèd produced a draft lease which is bein8 considered by the Board and the Trustees of the charity that they intend to merge with. Should the lease be accepted by both parties it is hoped that the merger will proceed by thè close of 2022. In thls period the Charlty has to continue to trade at a low level in order to generate sufficient Income to support the overheads of the Newell Street site. Income generating activitiès and administrative functions have been produced on a voluntary basis by the Company Secretary. In the event of the merger process failing it is likely that the Trustees will proceed to affect a Member5 Voluntary liq￿IdatiOn in early 2023, Therefore, these financial statements have been prepared on a breakup basbs, STATEMENTOF RESPONSIBILITIES OFTHE TRUSTEES The trustees (who are also dlrectors of charitable company for the purposes of company lawl are responsible for preparing the Trustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires thè trustees to prepare financial statements for each financlal year which give a true and fairview of the state of affairs of the charitable company 3nd of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees 3re required to.. Select suitable accounting policies and then apply them con51Stently. Observe the methods and principle5 in the Charitie5 SORP. Make judgements and estimate5 that are reasonable and prudent. state whether applicable UK Accounting Standards and statements of recommended practlce have been followed, subject to any material departures disclosed and explalned in the financial statements. Prepare the flnancial 5talement5 on the goin8 concern basis unles5 It is inapproprlate to pre5umÈ that the charity wlll continue in operation. The trustees are responsible for keeping proper accounting records thai disclose with reasonable accuracv at any time the financial position of the charitable company and enable them to ensure that the financlal statement5 comply wlth the Companies Act 2006. They are also responsible for safeguarding the assets of the charitablè cornpany and hence for taking reasonable steps for the prevention and detectlon of fraud and other irregularitie5. Tower Hamlets Community Transport Company Limited by Guarantee Trustees, Annual Report (Incorporatlng the Dlrectors, Report) Year ended 31 March 2022 The trustees are responslble for the maintenance and Inte8rity of the corporate and financial information Included on the ¢harltable company's webslte. Leglslatlon In the Unlted Klngdom governlng thè preparatlon and dlssemlnatlon of flnan¢lal statements may dlffer from leglslatlon in otherjuri5dictlons. Small Company Provislong Thls report has been prepared In accordance wlth the provislons applicable to companies entitled to the small companles, exemption. The trustees, annual report was approved on And slgned on behalf of the board of trusteE5 bv: Dudley Flynn: Slmon Rouse: TreJsurÈrl Trustee Company Sècretary Tower Hamlets Community Transport Company Limited by Guarantee Independent Examlne¢s Report for thg Year ended 31 March 2022 I report to the trustees on my examlnation of the accounts of Tower Hamlets Community Transport for the yeèr ended 31 March 2022. RESPONSIBILITIES AND BASIS OF REPORT As the charity's trustees of the Company land 31so its directors lor the purposes ol company lawl you ale respon51ble for the preparatlon of the accounts in accordance with the requirements of the Companies Act 2006 I'the 2006 Act'l. Having Satisfied my5e1f that the account5 of the Company are not Tequired to be audlted under Part 16 of the 2006 Act and are eligible for Independent examlnation, I report In respect of my examinatlon of you¥ chafity's account5 as C3Tried out undei section 145 of the Charities Act 20111'the 2011 Act'l. In cariying out my examination I have followed the Directians given by the Charity Commlsslon under sectlon 145151 Ibl of the 2011 Act, INDEPENDENT EXAMINER'S STATEMENT I have completed my examinat1on. I confirm that no matters have come to my 3ttentlon in connection with the examinatlDn giving me cause to believe.. accounting records were not kept in respect ol the Company as requlred by section 386 of the 2006 Act,. or the accounts do not accord wlth those rtcords.. or the accounts do not cornply w*th the accounting requirements of section 396 of the 2006 Act other th3n any requirement that the accounts glve a 'tvue and fair view whS¢h is not a matter considered as part ol an independont examination.. or the accounts have not been prepared in accordance with the metht)ds and principles of the Statement of R￿0MMended Practice lor 3ccounting and rpporting by charities applicable to charities prÈparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I draw attention to page 3 IGoin@ Concern Directors, StBiement Dècember 20221 and p2ge 8 (Nore l Going Concern) of the financlal statement, which describes the lacts regarding the future uncertainties of rhe Ctharitls operations, and therefore the financial statement5 havÉ beert prepared on a brake up basis. 23.12.2022 Aamer Shehiad FCCA FCA ate A¢countabllity Europe Ltd Omnibus Workspace 39-41 Norlh Road London N79DP Tower Hamlets Community Transport Company Limited by Guarantee statement of financial activities (includlng income and expenditure account) For the ear ended 31 March 2022 2022 Total Unr&slricled Roslricled Funds Funds Funds 2021 Total Funds Unre$t¥icled Funds Restricted Funds Notg Income from.. Oonalions and granls Other trading activities Investments incovrie 79.806 30.992 28 79,806 30,992 28 29,253 29,2S3 Total income 29.256 110,826 110,826 Expenditure on: Charitable aclivitles 71.937 71,937 287,130 287,130 Total expendllure Net Incomel lexpenditurel for the year 71,937 71,937 287,130 287,130 {42,6811 142,6811 1176,304) 1176,304) Net movèment in funds 142.6811 142,681} 1176,3041 1176,3041 Reconciliation of funds: Totsl lunds brL)ughl forward 89,884 89.884 266,188 266,188 Total funds carrlod forward 11 47,203 47,203 89,884 89,884 The attached nolss form part of the$8 financial slalements. Tower Hamlets Community Transport Company Limited by Guarantee Statsmont of financial positFon As at 31 March 2022 Company registration no, 01686399 2022 2022 2021 2021 Not• Flxed ass¢ts: Tangible assels Current ass•ts: As8818 held for sale Debtors Cash al bank ond in hand Total Current Assets 36091 9,184 50,489 6,665 62,173 139,061 Llabilitlos: Credllors.. amounts falllng du6 wlthin one year 10 49,177 N•t CUTrent assèts l {112bllltl•sl 89,884 TotAI nel assets I IIIAbllltl¢s) Charlty Funds 11 Reslrlcled funds Unrestrlcled bjnds Tolal funds 8g.884 For the year endlng 31 March 2022 the company was entitled lo axemption from audll und8f s8cllon 477 of thè Companles Act 2006 rela￿rIg to sm911 companles. No memb9rs have requlied the company to obtain an audit of its acwunts the year in quesllon In accordance with section 476 of tho Companle8 Act 2006. Thg direcloT8 acknowledge thelr r8sponslbllli(es for complying with the requirments of the Companles Act 2006 wlth respect to acGounUno records and preparatlon of ac(x)unts. Th6 financial stslgments have been prepared in acwrdancg wlth the specSal prov5sk>ns applkabfe to companies subje¢t lo th8 small companie8 regime. Approved by the tru5teos on and signed Dn their ￿half by.. &a/J2 2 022 Dudley Flyn (Treasure The attached notes foTm patt of these financlal statements. Tower Hamlets Community Transport Company Lirnited by Guarantee Notes to the financlal ststement5 For the year ended 31 March 2022 1. Aceountlng pollcies statutory information The Charity IS 8 private Company Limited by Guarante&, iegislered in England & Wales and a regisler8d charity in England & Wales. Thè address of the r6oislered office is 25-27 Newell Street. Limehouse, London, E14 7HP. Basis of preparatlon These linanclal siatements haye been PTèp8red in accordance with Accounting and Reporting by Charities,. Statement of Recommeiided Practice applicable lo charitie5 preparing their accounts in accordance with the Financlal R6porting Standard applicable in the UK and Republ￿ of Iioland IFRS 1021- Ichariliés SORP FRS 1021. the Financtal Reporting Standard appI￿able in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Assets and liabilities afe initially recognised at historical cost or Iransacllon value unless otherwise slated in the relevant accounting policy or note. The charily is èxempted from preparing cash flow slalemenl duè lo adoption of the exemption available lo the Gharilies wllh income less than £500,000. PubliG benefit èntity The charitable Gompany meets thg definition ol a publlc benefit enlily under FRS 102. Golng concern - Direclor$' Statement De¢embgr 2022 'Durtng the year. the Trustees have Continued lo n8gollale for a new lÉase lor the Newell Slre&t site with tha Landlord, the London Borough of Tower Hamlets. Al the time of writing Tower Hamlets had produced x draft lease which Is being consid&red by the Board and th& TrLJslees ()f the charity that they intend to mergs wllh. Should the lease b2 accepted by bolh partles il is hop8d that the merger will procèed by the close of 2022. In this period the Charily has lo continue to trade al a low level in order to generate sufficient Income ID SUPPOrt the overheads of the Newell Slreèl silé. Incom¢ genèrating arliwlies and adminislrative functions have b9en produced on a voluntary basis by the Company Secretary. In the ¢vent of th8 merger process failing il is likely that the Tru$la8s vlll pro¢eed lo aff8cI a Members Voluntary Liquidallon in early 2023,. Therefore, thèse financial slatemenls have been prepaTed on a breakup basis. Income Income is Included in the slalement ol financial activities when enlitlèmenl has passed lo thè charity.. il is probable that the economic benefits associated with the transaclion will flow lo the charity and the amount Can be reliably measured. The following specific Policies are applied lo partiGular categories of incc>me.' Income from donations or grants is recognised when there is evidence of @nlillemenl lo the gill, re¢eipls is probable and its amount can be measured rellably. Legacy income Is reC(￿niSed when receipt Is probable and enlill8ment is eslabllshed. Income from donated goods is measured al tho falr value ol the gcx)ds unlèss this is impractical to measur8 reliably, in which case the value is derived from the cost to the donor or the estimated resale value ¢an be reliabty measured. No amounts are included for IhÉ eonlribulion of gener81 volunteers. Income from conlraels for the supply of services is recognised with th8 delivery of the Conlracled service. This is classlfied as unreslricled funds unless there is a contractual requirement for il lo be spent on a particular purwse and returned il unspent, in which case11 may be regarded as reslricled. Expenditurè Expenditure is recognised on an accruals basls as a Isability is incurred. Expenditure includes any VAT whiGh cannol be lully recovered, and is ¢lassi118d under he8dlngs ol the sÉ8temenl of financial aclivilies to which il relates.. Tower Hamlets Community Transport Company Limited by Guarantee Notes to the financlal statements For the year ended 31 March 2022 1. Accounting pollcles Icontlnuedl Expenditure Icolltinuedl Exptrndilure on Charitable activities in¢ludes 811 costs incurred by a charity in under tsking activities that further Ils charitable aims for the benefit of ils benefictaries, including those support costs and costs relating lo the goverll8n￿ of the charity apportioned to charitable aclivilies. All costs are allocatèd ID expenditure cal￿orieS iefl8cling the use ol the rèsource. DireGI costs allribulable lo a single aelivily are a11ocaled directly lo thal aclivily. Shared costs ale apportioned between the 8clivilies they contribute lo on a reasonable, Justif￿ble and consistent basis. Fund accounting Rfjslricted funds aTe lo be used for sptrcifiG purpose as laid down by the donor. Expenditurè, which meets these criteria, is chargèd to the fund logelh8r with a fair allocation of managomènt and support costs. Unraslricled funds are donations and other incoming resourcés received or generated for the charitable purposes. Design816d fijnds are unrestricted funds earmarked by the management committee lor parfcular purposes. Judg8ment$ and Kèy Sources of Estimatlon Uncertalnty The preparation of the financial statements requires managemÉnt lo make judgements, eslim31és and assumptions that affécl the amounts reported. These èslimales and judgeménis are conlinually reviewed and are based on èxperienGe and other factOTS. including oxpeclalions ol future events that 8re believed to be reasonabl6 under the ctrcumslances. Tangible Assets I fixed assets are initially recorded 8t cost. Depreci81ion is calculated 50 as lo write off the Cost or valu81ion of assèts, less 51s residual valu6, over the useful economic lifé of those assets as follows.. mot￿ vehicles FurllitLTrre & equipment Impalrmont of flxed assgts A review for indicators of impaiiment is ¢arried out al each reportlng dale, with the recoverable amount being estimated where %uch indiGalors exist, Where the caring value exceeds Ihe recoverable amount, the asset is imp8ir6d accordingly. Prior impairments are also reviewèd lor possible reversal al each repor￿￿ dale, For the purposes of impairment testing, when il is not possible lo estimate the recoverable amount ol an individual asset an eslitllale is made of the recoverable amount of the cash-generallng unit is tho smallest identiflable groltp ol assets that includes the asset and generates cash inflows that largely independént of the cash inflows from other assets or groups of assets. 25Ya reducing balance 250/0 redtjcing balance Stock Slocks are measured al the lower of wsl and eslimaled selling price less costs lo Complete and sell. Cost in¢ludes all Costs ol purchase, costs of conversion and other cosls incurred in bringing the stock lo its present Iwalion & condrfcion. Penslon costs Th8 charity E)pemles 8 defined contribution pension scheme for employees. The assols of the scheme are held separately from those of the charity. Pension costs charges in the Stalemenl ol Financial Aclivllies represent the contributions payable by the charity in the year. Conlribullons lo defined contribution plans aig recognised as an expensa in the perlod in which the related service is provided. Prepaid contributions are rè¢ognisgd as an asset lo the gxlent that the prep8yrn8nl will l¢ad lo a reduction in future payments or a cash relurKI. Llmiled by guarantee The company is Ilmil$d by guarantee wllhout shar6 capital. In the èvenl of the Gharity being wound up, the liabillty in respèct of the guarantee Is limited to £1 per member. Tower Hamlets Community Transport Notes to the financlal statements For the year ended 31 March 2022 2. Income from donatlons and grants 2022 Total funds 2021 Total funds Unreslrscled Funds Reslricled Funds Donations Graiils.. FL D8R MOAT Third Sector Consortium HMRC JRS Grant BSOG Grant 2019120 Towof Haml61 Council ITHCVSI 1.000 56.267 10,539 12,000 79.806 3. Income from othèr trading activltles 2022 Total funds 2021 Total funds Unreslflcted Funds Reslricled Funds Vehicle Usage Income Memb8r Training Programme Gar8ga Income M