Wise Thoughts - Charities report - 20.1.6

REGISTERED COMPANY NUMBER: 03758786 (England and Wales)

REGISTERED CHARITY NUMBER: 1077616

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

WISE THOUGHTS

(A COMPANY LIMITED BY GUARANTEE)

Page

Report of the Trustees

1

to

6

Independent Examiner's Report

7

Statement of Financial Activities

8

Statement of Financial Position

9

to

10

Notes to the Financial Statements

11

to

20

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the

financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of

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

Objectives and aims

Wise Thoughts is a pioneering arts charity that combines creative use of diverse art form such as film, visual art.

performance and delivers targeted services to help address social justice issues and needs of Lesbian, Gay, Bisexual,

Transgender, Queer, Intersex + (LGBTQI+) and Black, Asian and Minority Ethnic (BAME) communities.

Wise Thoughts creates arts projects, develops, delivers training initiatives, and services that help to inform and raise

awareness of issues related to cultural identity, ethnicity, sexual health, HIV/AIDS, and human rights. Each initiative is

defined by the nature of each issue, the needs of target communities, available resources and uses diverse art forms,

including South Asian arts.

The objectives of the charity are (extracted from the Memorandum and Articles of Association):

1. To promote principally issue-based Arts from marginalised communities for the benefit of the inhabitants of UK and

elsewhere.

2. Developing public appreciation of Arts and by improving public access to, and the quality of the arts.

3. Promotion of Human Immune deficiency Virus/Acquired Immune Deficiency Syndrome issues through the medium of arts

and in particular (but without prejudice to generality of the foregoing) the Company shall seek to bring forth issues related to

HIV/AIDS and diverse sexual, cultural and ethnic identities through its creative expressions.

4. Develop and deliver the annual LGBTQI+ arts festival 'GFEST- Gaywise FESTival'

There have been no changes in the charity's objectives during the year.

These objectives are achieved by implementing the following policies:

1. To improve standards of practice and appreciation of Arts through the development and delivery of training including arts

from marginalised communities.

2. To provide peer/social support, information, advice and guidance services for LGBTQI+ people .

3. To promote, advance, encourage and assist in the practice, presentation and study of arts from marginalised communities.

4. To bring forth issues related to HIV/AIDS and diverse sexual, cultural and ethnic identities through the provision of

information, guidance, outreach and consultation services.

5. To bring together and co-operate the efforts of local authorities, bodies, organisations, societies and individuals concerned

or interested in attainment of all or any of the objects of the Charity.

6. To commission, arrange, prepare, print, publish, issue and disseminate any programme, pamphlet, book, documents, film,

recording or other artistic work and fix, make and receive fees, royalties and other charges therefore and for admission to

and otherwise in respect of any exhibition performance or display.

Significant activities

The main activities for the year under review were:

1. Presented the 12th GFEST-Gaywise FESTival, in its new format that allows diverse venues and programmers to

programme their own GFEST event during the GFEST fortnight. The theme was 'Queer Queries' and events were

programmed by other agencies.

2. Established the 'Reach and Connect' service for older people aged 50+ as part of a local consortium led by Public Voice.

The service is commissioned by Haringey Council

3. Commissioned by Haringey Council to pilot two services for younger LGBTQI+ people and women and girls dealing with

violence and expand the LGBTQI+ social meetups and drop-in services within Homes for Haringey venues.

4. Delivered 'WiseOUT!' LGBTQI+ awareness training workshops and presentations for schools, statutory agencies and

community groups.

5. Expansion of arts and wellbeing activities to support greater social integration of diverse communities at Wise

Thoughts-Creative Cultural Hub (CCH) in Wood Green Library.

6. Delivered arts and cultural activities to help celebrate the Borough's own LGBTQI+ History for LGBT+ History Month

and Haringey Has Pride.

7. Supporting the local authority's Health & Wellbeing agenda via the CCH's #MoversandShakers programme and weekly

sexual health advice stalls in partnership with Public Health Haringey.

8. Acting as community advocates for local LGBTQI+/BAME communities on local regional and national advisory panels

including Greater London Authority Haringey Clinical Commissioning Group, Haringey Council, Metropolitan Police

Services, Public Health England, etc.

9. Raise funding to support development and delivery of our annual programme of work.

Our annual report offers a comprehensive description of the services and activities offered by Wise Thoughts.

Volunteers

The value of services provided by volunteers is not incorporated in these financial statements. However, payments are made

to cover the volunteers' actual expenses which are included in the financial statements.

FINANCIAL REVIEW

Principal funding sources

The future of Wise Thoughts services is dependent on continued support from statutory sources and income from grants and

donations, which are essential for the maintenance and expansion of services to meet the increasing demand.

Wise Thoughts provides essential services and develops unique arts and training projects that help to profile/meet the needs

of marginalised individuals and is supported in part by Local Authority and The National Lottery Community Fund.

Although such funding continues, demand for projects, services, and an increase in core costs considerably outweighs the

funding provided by these sources, to the extent that Wise Thoughts has to continually look for funding from other

organisations, charitable and corporate bodies and individual donors. In the year under review new funding was received

from Bridge Renewal Trust and other other organisations.

Reserves policy and Investment powers

The Board of Trustees is responsible for deciding how to invest the Charity's reserves. The appropriate level of reserves is

established through an annual review of the Charity's requirements and stated in the financial report. The Treasurer is

responsible for proposing to the Board the balance of cash on deposit and investments, and acts on the Board's instructions.

Going concern

The accounts have been prepared on a going concern basis.

The trustees are aware however of material uncertainties that cast doubt on the charity's ability to continue as a going

concern. As with most organisations, these material uncertainties are in relation to the ongoing Covid-19 virus outbreak

which has had an impact on the operations, donors, suppliers, trustees and volunteers. The trustees have (where appropriate)

utilised the grants and benefits available from the organisations and government and are taking all the steps they can to

protect the future of the charity.

Review of transactions, financial performance and funds

As shown in the Statement of Financial Activities (page 9) total income for the year to 31 March 2020 amounted to

£100,396 (2019 - £61,927) and expenditure in the furtherance of charitable activities totalled £98,771 (2019 - £60,559).

Again in a very difficult climate for fundraising due to huge efforts from the management and the high quality of the

services, Wise Thoughts was able to attract sufficient income to cover the running costs which resulted in a Net resources

surplus of £1,625 (2019 £1,368 Surplus).

Awards totalling £12,584 (2019 - £24,367) received in advance towards the project costs have been carried forward under

Accruals and deferred income.

The Artistic director and his team control all costs rigorously. The services are much admired and viewed as important

models to emulate, however in these financially challenging times it is extremely difficult to attract essential funding. The

Trustees are addressing the strategic planning essential for the provision of services within the framework of the anticipated

funding.

The future of Wise Thoughts services is dependent on continued support from statutory sources and income from grants and

donations, which are essential for the maintenance and expansion of services to meet the increasing demand.

Wise Thoughts provides essential services and develops unique arts and training projects that help to profile/meet the needs

of marginalised individuals and was supported in part by Local Authority funding. There has been an increase in demand for

projects, services and core costs that considerably outweighs the level of funding currently available.

In this very challenging climate, Wise Thoughts is pleased to have had support from London Borough of Haringey, The

National Lottery Community Fund, John Lyons Foundation, and other charitable bodies and individual donors. We have

also entered in partnership with Public Voice to deliver the Reach and Connect service.

Total net assets of the charity as at 31 March 2020 were £29,640 (2019 - £28,015). Income received for the year for specific

purposes was spent in full.

In providing day to day services, the Trustees are mindful of the charity's duty to comply with section 4 of the Charities Act

2006 to have due regard to public benefit guidance published by the Commission.

FUTURE PLANS

In light of the current economical climate and the impact from COVID-19 on the programme, the organisation will review its

business plan/operational model to help it ensure sustainability and will make any changes needed. It remains committed to

supporting the primary beneficiaries of our activities and services (LGBTQI+/BAME people) and will aim to continue

delivery of a programme of key activities and associated services.

The organisation plans to continue working strategically at a Borough level, with the Council and other agencies to help

achieve our objectives. The recession and reduction in funding available from both statutory and other sources, has had an

impact on all small voluntary organisations and will lead to the re-evaluation of any proposed new services by the

organisation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee,

as defined by the Companies Act 2006.

Recruitment and Appointment of new trustees

Every person who wishes to be a Member and a trustee as such, shall deliver to the Company an application for membership

in such form as the Directors require executed by that person.

At the next meeting of the Directors after the receipt of any application for membership, the application shall be considered

by the Directors who shall decide upon the admission or rejection of the applicant.

Organisational structure

Wise Thoughts has a Management Committee of up to six members who meet regularly and are responsible for strategic

direction and policy of the charity. At present the committee has five members from a variety of backgrounds relevant to the

work of the charity. The committee is made up of the trustees, two contracted members - Artistic Director and the

Programme Manager.

A scheme of delegation is in place and day to day responsibility for the provision of services rest with the trustees along with

the Artistic Director and the Programme Manager. The trustees are responsible for ensuring that the charity delivers the

services specified and that key performance indicators are met. The Artistic Director has responsibility for the day to day

operational management of the charity, individual supervision of contracted members and also ensuring that the team

continues to develop their skills and working practices in line with good practice.

Induction and training of new trustees

New trustees receive a comprehensive induction package, with information covering the duties of a trustee, a trustee job

description and service agreement, an outline of the vision, mission and implementation of the charity's services, the latest

Report and Accounts, current year's budget and latest management accounts.

All trustees are invited to familiarise themselves with the operations of Wise Thoughts by meeting the Artistic Director and

staff at a weekly Team meeting that reviews service delivery and by appointment when appropriate. Trustees are encouraged

to make use of the training and conference opportunities provided by the NVCO and other bodies.

PARTNERSHIPS AND CO-OPERATION WITH OTHER CHARITIES AND ORGANISATIONS

Wise Thoughts is committed to working in partnership with organisations that help to benefit the aims and objectives of the

organisation and its programme of work, it has collaborated with other statutory and voluntary organisations in the

development and presentation of individual projects that have included arts festivals, conferences and training initiatives

within the past year. Staff regularly attend meetings, forums, seminars and consultative processes co-ordinated by local,

regional and national government and other community and voluntary organisations. They serve as independent advisors to

the local authority and Metropolitan Police Services on policy development, implementation and other matters related to the

primary beneficiaries of the organisation and its programme of work. They serve as community lead on the LGBT+

Community Network initiated by Haringey Council.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls

are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03758786 (England and Wales)

Registered Charity number

1077616

Registered office

2nd Floor, Wood Green Central Library

High Road

Wood Green

London

N22 6XD

Trustees

Ms Bhavini Chavda - Chair

Mr Tim Hoyle - Treasurer

Mr Benjamin Cohen

Dr Trevor John Robert Wood - Secretary

Prof Rainer Uwe Willy Schulze

Miss Amy Alexandra Ashenden (appointed 12.7.19)

Company Secretary

Ms Bhavini Chavda - Chair

Independent Examiner

Michael Filiou Ltd

Chartered Certified Accountants

www.michaelfiliou.com

Salisbury House

81 High Street

Potters Bar

Hertfordshire

EN6 5AS

Bankers

The Co-operative Bank Plc

Business Direct

P O Box 250

Skelmerdale

WN8 6WT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Wise Thoughts (A company limited by guarantee) for the purposes of company

law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law

and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial

Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of

the state of affairs of the charitable company and of the incoming resources and application of resources, including the

income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are

required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the

financial position of the charitable company and to enable them to ensure that the financial statements comply with the

Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small

companies.

Approved by order of the board of trustees on 17 July 2020 and signed on its behalf by:

Ms Bhavini Chavda - Chair - Trustee

Independent examiner's report to the trustees of Wise Thoughts (A company limited by guarantee) ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the

preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and

are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out

under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions

given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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 accounts to be reached.

Mr Michael Filiou

Michael Filiou Ltd

Chartered Certified Accountants

www.michaelfiliou.com

Salisbury House

81 High Street

Potters Bar

Hertfordshire

EN6 5AS

17 July 2020

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

982

99,414

100,396

61,570

Other trading activities

3

-

-

-

357

Total

982

99,414

100,396

61,927

EXPENDITURE ON

Charitable activities

Charitable activities

-

-

-

55,135

IT and website costs

-

-

-

50

Telephone

-

-

-

975

Insurance

-

-

-

272

Sundry expenses

-

-

-

13

Depreciation

952

-

952

1,114

Accountancy fees

-

-

-

3,000

WiseOUT

-

5,535

5,535

-

Creative Cultural Hub

-

50,469

50,469

-

Project Other

-

5,400

5,400

-

Community Connector

-

36,415

36,415

-

Total

952

97,819

98,771

60,559

NET INCOME

30

1,595

1,625

1,368

RECONCILIATION OF FUNDS

Total funds brought forward

17,553

10,462

28,015

26,647

TOTAL FUNDS CARRIED FORWARD

17,583

12,057

29,640

28,015

2020

2019

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

4,693

2,719

7,412

8,364

CURRENT ASSETS

Debtors

-

-

-

-

Cash at bank

14,042

23,771

37,813

47,019

14,042

23,771

37,813

47,019

CREDITORS

Amounts falling due within one year

9

(1,152

)

(14,433

)

(15,585

)

(27,368

)

NET CURRENT ASSETS

12,890

9,338

22,228

19,651

TOTAL ASSETS LESS CURRENT LIABILITIES

17,583

12,057

29,640

28,015

NET ASSETS

17,583

12,057

29,640

28,015

FUNDS

10

Unrestricted funds

17,583

17,553

Restricted funds

12,057

10,462

TOTAL FUNDS

29,640

28,015

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 July 2020 and were signed on its behalf by:

Ms Bhavini Chavda - Chair - Trustee

Mr Tim Hoyle - Treasurer - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies

Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on the going concern basis. However, it must be noted that funding to support core

costs remains a challenge and any reduction or failure to secure will have an impact on sustaining the charity's

programme of work.

The trustees are aware however of material uncertainties that cast doubt on the charity's ability to continue as a going

concern. As with most organisations, these material uncertainties are in relation to the ongoing Covid-19 virus

outbreak and lockdown which has had an impact on the operations, donors, suppliers, trustees and volunteers. The

trustees have (where appropriate) utilised the grants and benefits available from the organisations and government

and are taking all the steps they can to protect the future of the charity.

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is

probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity

to that expenditure, 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 accounted for on an accruals basis and has been classified

under headings that aggregate all cost related 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

at variable rates on reducing balance

Fixtures and fittings

-

10% on reducing balance

Computer equipment

-

20% on reducing balance

Taxation

As a charity, Wise Thoughts is exempt from tax on income and gains falling within section 505 of the Taxes Act

1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its

charitable objects. No tax charges have arisen in the Charity.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

2.	DONATIONS AND LEGACIES

2020

2019

£

£

Voluntary grants income

94,298

56,197

Donations

3,598

2,873

Subsidy towards rent

2,500

2,500

100,396

61,570

3.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Other fees receivable

-

357

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

952

1,114

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended

31 March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

Trustees' expenses comprise of out of pocket expenses reimbursed to the trustees.

6.	STAFF COSTS

2020

2019

£

£

Wages and salaries

23,250

-

Other pension costs

466

-

23,716

-

The average monthly number of employees during the year was as follows:

2020

2019

Full time

2

-

No employees received emoluments in excess of £60,000.

The Charity employed staff during the year in relation to Reach and Connect services.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,873

58,697

61,570

Other trading activities

357

-

357

Total

3,230

58,697

61,927

EXPENDITURE ON

Charitable activities

Charitable activities

-

55,135

55,135

IT and website costs

50

-

50

Telephone

975

-

975

Insurance

272

-

272

Sundry expenses

13

-

13

Depreciation

1,114

-

1,114

Accountancy fees

3,000

-

3,000

Total

5,424

55,135

60,559

NET INCOME/(EXPENDITURE)

(2,194

)

3,562

1,368

RECONCILIATION OF FUNDS

Total funds brought forward

19,747

6,900

26,647

TOTAL FUNDS CARRIED FORWARD

17,553

10,462

28,015

8.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2019 and 31 March 2020

24,370

3,964

15,087

43,421

DEPRECIATION

At 1 April 2019

18,826

3,319

12,912

35,057

Charge for year

452

65

435

952

At 31 March 2020

19,278

3,384

13,347

36,009

NET BOOK VALUE

At 31 March 2020

5,092

580

1,740

7,412

At 31 March 2019

5,544

645

2,175

8,364

All of the charity's tangible fixed assets are used directly for its objectives.