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2021-12-31-accounts

Charity Registration No. 303032

PETTS WOOD WAR MEMORIAL TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

PETTS WOOD WAR MEMORIAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr R E Jones Mr M Ricketts Miss J Barber Mr A Stotesbury Ms L K Patel (Appointed 22 September 2021) Mr C Jones (Appointed 11 January 2022) 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 Bankers Barclays Bank 167 High Street Bromley BR1 1NJ

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 - 12

PETTS WOOD WAR MEMORIAL TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

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)" (effective 1 January 2019).

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 expenditure of £22 for the year (2020: net expenditure of £12,443), with a gain/(loss) on investment assets of £5,755 (2020: loss of £689) resulting in an overall deficit of £5,777 (2020: deficit of £13,132).

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

The charity’s finances are still recovering from the pandemic. Income for 2021 was much improved when compared to 2020 but was still £30,000 lower than 2019. As a result of the significant financial loss in 2020 the trustees decided it be prudent that planned projects such as renovating the kitchens be postponed and then reviewed for feasibility in 2022.

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:

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.

PETTS WOOD WAR MEMORIAL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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 (Resigned 31 March 2022) Mr R L Brown (Resigned 27 April 2022) Mr M Ricketts Miss J Barber Mrs L Scothern (Resigned 27 April 2022) Mr A Stotesbury Ms L K Patel (Appointed 22 September 2021) Mr C Jones (Appointed 11 January 2022)

The trustees' report was approved by the Board of Trustees.

Mr A Stotesbury Trustee

30 October 2022

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 2021.

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:

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: 31 October 2022

PETTS WOOD WAR MEMORIAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2021 2020
Notes £ £
Income from:
Donations and grants 3 2,230 3,196
Charitable activities 4 60,111 46,039
Investments 5 14,968 17,287
Total income 77,309 66,522
Expenditure on:
Charitable activities 6 76,131 77,780
Other 9 1,200 1,185
Total resources expended 77,331 78,965
Net gains/(losses) on investments 10 (5,755) (689)
Net movement in funds (5,777) (13,132)
Fund balances at 1 January 2021 796,828 809,960
Fund balances at 31 December 2021 791,051 796,828

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

PETTS WOOD WAR MEMORIAL TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2021

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		 2021
£
2,590
506,847
11,658
521,095
(2,992)		 £
142,021
130,927
272,948
518,103
791,051
791,051
791,051		 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

The financial statements were approved by the Trustees on 30 October 2022

Mr R E Jones Mr A Stotesbury Trustee Trustee

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). 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 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. 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 recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

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 the statement of financial activities.

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 payments 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 received 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.

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

3 Donations and grants

**Unrestricted ** Unrestricted
funds funds
2021 2020
£ £
Donations and grants 2,230 900
Covid-19 Job Retention Scheme - 2,296
2,230 3,196

4 Charitable activities

Charitable Charitable
Income Income
2021 2020
£ £
Room hire and letting fees 60,111 46,039

5 Investments

**Unrestricted ** Unrestricted
funds funds
2021 2020
£ £
Rental income 11,400 12,350
Income from investments 2,285 2,324
Interest receivable 1,283 2,613
14,968 17,287

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Charitable activities

Charitable
Charitable
Expenditure Expenditure
2021 2020
£ £
Staff costs 8,448 18,019
Depreciation and impairment 5,522 5,533
Admin services staff costs 28,393 26,331
Rates 3,628 3,787
Power, light and heat 10,399 6,186
Repairs, maintenance and refurbishments 6,191 4,836
Telephone and internet 619 607
General costs and licences 5,692 4,609
Insurances 7,239 7,872
76,131 77,780

7 Trustees

Trustees neither received nor waived any emoluments during the year.

Expenses totaling £500 (2020: £666) were reimbursed to 1 (2020: 1) trustee during the year.

Indemnity insurance is provided for the trustees. Premiums paid during the year were £429 (2020: £390).

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:

2021 2020
Number Number
1 2
Employment costs 2021 2020
£ £
Wages and salaries 8,448 18,019

Employees were employed predominantly for dealing with management of the hall.

No employee received emoluments of over £60,000 during the year (2020: £Nil).

There were no employees whose annual remuneration was more than £60,000 (2020: £Nil).

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Other

Unrestricted Total
funds
2021 2020
£
Accountancy 1,200 1,185
1,200 1,185
10 Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments (5,755) (689)
11 Tangible fixed assets
Freehold land Plant and Total
and buildings equipment
£ £ £
Cost
At 1 January 2021 184,828 13,982 198,810
At 31 December 2021 184,828 13,982 198,810
Depreciation and impairment
At 1 January 2021 40,055 11,212 51,267
Depreciation charged in the year 5,049 473 5,522
At 31 December 2021 45,104 11,685 56,789
Carrying amount
At 31 December 2021 139,724 2,297 142,021
At 31 December 2020 144,773 2,770 147,543

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

12 Fixed asset investments

Investments
£
Cost or valuation
At 1 January 2021 136,733
Additions 19,757
Valuation changes (5,806)
Disposals (19,757)
At 31 December 2021 130,927
Carrying amount
At 31 December 2021 130,927
At 31 December 2020 136,733

13 Debtors

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
14
Current asset investments
Unlisted investments		 2021
£
726
1,864
2,590
2021
£
506,847		 2020
£
1,105
2,484
3,589
2020
£
505,835

Included in this balance is £75,000 investment with Cynergy Bank. On 31 October 2021, this balance was due to repaid into the charity's bank account but this did not take place. Formal action was taken on 07 June 2022, with the Financial Ombudsman retrieving the money in August 2022.

15 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
-
717
2,275
2,992		 2020
£
29
867
3,637
4,533

PETTS WOOD WAR MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

16 Related party transactions

One of the trustees' partner is the hall manager, and received £28,391 (2020: £26,331) in fees.