Charity Registration No. 303032
PETTS WOOD WAR MEMORIAL TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PETTS WOOD WAR MEMORIAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr R E Jones Mr L Parkes Mr R L Brown Mr M Ricketts Miss J Barber Mrs L Scothern Mr A Stotesbury Charity number 303032 Principal address 200 Petts Wood Road Orpington Kent BR5 1LA Independent examiner Mr J L Coombs MA (Cantab) FCA Simpkins Edwards LLP Michael House Castle Street Exeter Devon EX4 3LQ
PETTS WOOD WAR MEMORIAL TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 11 |
PETTS WOOD WAR MEMORIAL TRUST
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The Petts Wood War Memorial Trust is a charity whose objects are to provide and maintain a garden of remembrance and a community centre.
The charity owns and maintains a hall and gardens in Petts Wood, providing a venue for community events, regular activities and private functions.
The trustees have paid due regard to guidance issued by the Charity Commission regarding public benefit and in deciding what activities the charity should undertake.
The community halls and gardens provide a valuable recreational and educational resource to the local community.
Achievements and performance
The charity recorded net income/( expenditure ) of £ (12,444) for the year (201 9 : net expenditure of £ 11,887 ), with a gain/( loss ) on investment assets of £ (689) (201 9 : gain of £ 14,326) resulting in an overall ( deficit )/ surplus of £ (13,220) (201 9 : surplus of £ 26,213 ).
The trustees consider the charity's period end financial position and the results above to be satisfactory , however, the trustee's comments regarding the effect of COVID 19 should be noted.
COVID 19
As a result of the on-going COVID 19 crisis the hall was closed for a period, although provisional bookings could be made. With the relaxation of restrictions, the hall was reopened during the summer of 2020. As a consequence, income from hall lettings was reduced in 2020 .
The Trust's investments saw a significant drop in value at the start of the pandemic, although this position has been latterly reversed.
Financial review
The charity's principal sources of funds are hire of the hall and fundraising .
The charity has a diversified investment portfolio with a low overall risk. Investments are held as a means of earning revenue on surplus funds until they are required and as a reserve against any future shortfall in income to ensure that the charity can continue to meet its objectives.
The trustees have adopted a reserves policy which they consider appropriate to ensure the continued ability of the charity to meet its objectives and obligations. Sufficient funds are held to fund at least six months charitable expenditure and to improve facilities at the hall and gardens.
The trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reassurance that:
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its assets are safeguarded against unauthorised use or disposition
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proper records are maintained and financial information is reliable
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the charity complies with relevant laws and regulations
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PETTS WOOD WAR MEMORIAL TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
As part of the charity's risk management process the trustees acknowledge their responsibility for the charity's system of internal control and reviewing its effectiveness. It is also recognised by the trustees that such a system is designed to manage rather than eliminate the risk of failure to achieve the charity's objectives and can only provide reasonable, not absolute, assurance against material misstatement or loss.
Structure, governance and management
The charity was formed by trust deed dated 31 July 1950. The governing body of the charity is the management committee which meets once a month. Subject to the trust deed, trustees may be elected by subscribers at an Annual General Meeting and also co-opted by the management committee.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr R E Jones
Mr L Parkes Mr R L Brown Mr M Ricketts Miss J Barber Mrs L Scothern Mr A Stotesbury
The trustees' r eport was approved by the Board of Trustees.
Mr R E Jones
Trustee Dated: 22 September 2021
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PETTS WOOD WAR MEMORIAL TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PETTS WOOD WAR MEMORIAL TRUST
I report to the trustees on my examination of the financial statements of Petts Wood War Memorial Trust (the charity) for the year ended 31 December 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mr J L Coombs MA (Cantab) FCA
for and on behalf of Simpkins Edwards LLP
Michael House Castle Street Exeter Devon EX4 3LQ
Dated: 29 October 2021
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PETTS WOOD WAR MEMORIAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2020 | 2019 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and grants | 3 | 3,196 | 8,993 |
| Charitable activities | 4 | 46,039 | 90,858 |
| Investments | 5 | 17,287 | 9,742 |
| Total income | 66,522 | 109,593 | |
| Expenditure on: | |||
| Charitable activities | 6 | 77,780 | 96,171 |
| Other | 9 | 1,185 | 1,535 |
| Total resources expended | 78,965 | 97,706 | |
| Net gains/(losses) on investments | 10 | (689) | 14,326 |
| Net movement in funds | (13,132) | 26,213 |
|
| Fund balances at 1 January 2020 | 809,960 | 783,747 | |
| Fund balances at 31 December 2020 | 796,828 | 809,960 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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PETTS WOOD WAR MEMORIAL TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Investments 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2020 £ 3,589 505,835 7,661 517,085 (4,533) |
£ 147,543 136,733 284,276 512,552 796,828 796,828 796,828 |
2019 £ 5,510 504,375 13,180 523,065 (3,603) |
£ 153,076 137,422 290,498 519,462 809,960 809,960 809,960 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on 22 September 2021
Mr R E Jones Mr L Parkes Trustee Trustee
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Charity information
Petts Wood War Memorial Trust is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 200 Petts Wood Road, Petts Wood, Orpington BR5 1LA.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost relating to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 2% and 10% on a straight line basis Plant and equipment 10% on a straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs .
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price .
1.9 Government Grants
Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred .
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
3 Donations and grants
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Donations and grants | 900 | 8,993 |
| Covid-19 Job Retention Scheme | 2,296 | - |
| 3,196 | 8,993 |
4 Charitable activities
| Charitable | Charitable Income | Charitable Income | |
|---|---|---|---|
| Income | |||
| 2020 | 2019 | ||
| £ | £ | ||
| Room hire and letting fees | 46,039 | 90,858 | |
| Investments | |||
| UnrestrictedUnrestricted | |||
| funds | funds | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Rental income | 12,350 | 4,734 | |
| Income from investments | 2,324 | 2,319 | |
| Interest receivable | 2,613 | 2,689 | |
| 17,287 | 9,742 |
5 Investments
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
6 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| 2020 | 2019 |
|
| £ | £ |
|
| Staff costs | 18,019 | 17,844 |
| Depreciation and impairment | 5,533 | 4,751 |
| Admin services staff costs | 26,331 | 27,787 |
| Rates | 3,787 | 6,076 |
| Power, light and heat | 6,186 | 10,746 |
| Repairs, maintenance and refurbishments | 4,836 | 12,280 |
| Telephone and internet | 607 | 618 |
| General costs and licences | 4,609 | 6,838 |
| Insurances | 7,872 | 7,481 |
| Bad debt | - | 1,750 |
| 77,780 | 96,171 |
7 Trustees
Trustees neither received nor waived any emoluments during the year.
Expenses totalling £ 666 (201 9 : £ 612 ) were reimbursed to 1 (201 9 : 1) trustee during the year.
Indemnity insurance is provided for the trustees. Premiums paid during the year were £ 390 (201 9 : £ 325 ).
The key management personnel of the charity are deemed to be the trustees and the hall manager.
8 Employees
The average monthly number of employees during the year was:
| 2020 | 2019 | |
|---|---|---|
| Number | Number | |
| 2 | 2 | |
| Employment costs | 2020 | 2019 |
| £ | £ | |
| Wages and salaries | 18,019 | 17,844 |
Employees were employed predominantly for dealing with management of the hall.
No employee received emoluments of over £60,000 during the year (201 8 : £Nil).
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
9 Other
| Unrestricted | Total | |||
|---|---|---|---|---|
| funds | ||||
| 2020 | 2019 | |||
| £ | ||||
| Legal and professional fees | - | 480 | ||
| Accountancy | 1,185 | 1,055 | ||
| 1,185 | 1,535 | |||
| 10 | Net gains/(losses) on investments | |||
| Unrestricted | Unrestricted | |||
| funds | funds | |||
| 2020 | 2019 | |||
| £ | £ | |||
| Revaluation of investments | (689) | 14,326 |
||
| 11 | Tangible fixed assets | |||
| Freehold land | Plant and | Total | ||
| and buildings | equipment | |||
| £ | £ | £ | ||
| Cost | ||||
| At 1 January 2020 | 184,828 | 13,982 | 198,810 | |
| At 31 December 2020 | 184,828 | 13,982 | 198,810 | |
| Depreciation and impairment | ||||
| At 1 January 2020 | 35,006 | 10,728 | 45,734 | |
| Depreciation charged in the year | 5,049 | 484 | 5,533 | |
| At 31 December 2020 | 40,055 | 11,212 | 51,267 | |
| Carrying amount | ||||
| At 31 December 2020 | 144,773 | 2,770 | 147,543 | |
| At 31 December 2019 | 149,822 | 3,254 | 153,076 |
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PETTS WOOD WAR MEMORIAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
12 Fixed asset investments
| Investments | |
|---|---|
| £ | |
| Cost or valuation | |
| At 1 January 2020 & 31 December 2020 | 137,422 |
| Valuation changes | (689) |
| Carrying amount | |
| At 31 December 2020 | 136,733 |
| At 31 December 2019 | 137,422 |
| 13 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income 14 Current asset investments Unlisted investments 15 Creditors: amounts falling due within one year Other taxation and social security Other creditors Accruals and deferred income |
2020 £ 1,105 2,484 3,589 2020 £ 505,835 2020 £ 29 867 3,637 4,533 |
2019 £ 3,064 2,446 5,510 2019 £ 504,375 2019 £ 29 1,023 2,551 3,603 |
|---|---|---|
16 Related party transactions
One trustee provided administrative support via a business owned by that trustee. This support was provided at a commercial rate and totalled nil (2019: £ 195) . The trustees' partner is also the hall manager, and received £ 26,331 (2019: £27,592) in fees.
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