Royal Albert Dock Trust - Charities report - 20.2

REGISTERED COMPANY NUMBER: 02702502 (England and Wales)

REGISTERED CHARITY NUMBER: 1010519

for

Page

Report of the Trustees  

1

to

6

Report of the Independent Auditors  

7

to

8

Statement of Financial Activities  

9

Balance Sheet  

10

Cash Flow Statement  

11

Notes to the Cash Flow Statement  

12

Notes to the Financial Statements  

13

to

18

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

STRATEGIC REPORT

Achievement and performance

Fundraising activities

Financial review

Financial position

Going concern

After making appropriate enquiries, despite the challenges of the impact of Covid-19 on operations since March 2020, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future.  

Financial risk management objectives and policies

The Trustees continue to monitor the financial position of the Trust and its trading subsidiary. The majority of the charity's income derives from renting out parts of its building and curtilage at its Docklands site to compatible businesses, notably to a restaurant and car hire. This rental income is an essential contribution to the charity's overall income and to its continuing financial viability. The national lockdown measures associated with the Covid-19 pandemic have seriously curtailed these business operations and rental income has fallen from £644K in 2019/20 to an estimated £379K in 2020/21. We have taken advantage of various Government support schemes to sustain our financial viability as summarised below.      

As stated above, for the financial year ending 31st March 2021, income from normal operating activities has been severely impacted due to the Covid 19 pandemic. However, rationalisation of costs and taking advantage of the various schemes and support in respect of Covid-19 have meant that we are still expecting to return a cash surplus position before depreciation for the year.  

The Trust have taken advantage of the following schemes to assist with ensuring their viability through this time:

- Furlough scheme - £69k expected to be claimed

- Business rates relief - usually around £30k, £0 for 2021

- VAT payment relief - delayed payment of £24k, due the following year

- Sport England grant - £54k

- Local restrictions grant - applied for December 2020 - expected £3k

The above will be reflected in the 2021 accounts.

Reserves policy

Future Developments

Our aim to continue developments in 2019 and increase participation in 2020 was made impossible by the onset of the Covid-19 pandemic. The centre had to close for many weeks during the lockdown periods beginning March 2020, in common with other similar facilities across the country, with a consequential material impact on activity through our many delivery partners. For 2021 the centre's management team is working closely with several of the Dragon boat clubs based at the centre who have expressed an interest in helping to deliver community activity. We will continue to work closely with our charitable partners LYR and MSSC, and with the GLA Royal Docks Team. The RADT aims to make strategic decisions that will enable us to contribute to the GLA's regeneration programme, providing a range of activities as well as new employment and training opportunities.

Following a detailed review in summer 2020 of our governance and procedures by BDO as independent reviewers, and supported by Sport England, it was decided that RADT needed to make significant changes and improvements in governance arrangements. As part of these changes RADT terminated its executive management contract with TALC, and the RADT is determined to make very good progress in implementing the independent reviewers' recommendations.

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.

Charity constitution

Royal Albert Dock Trust is registered with the Charity Commission (Number 1010519) and is limited by guarantee. The company is registered in England and Wales with registered number 02702502.

London Regatta Centre is the 100% trading subsidiary of Royal Albert Docks. London Regatta Centre is also registered in England and Wales and has the registered number 02506268.

Recruitment and appointment of new trustees

Organisational structure

Induction and training of new trustees

Key management remuneration

Our approach to pay and reward enables us to recruit and retain the skilled staff we need. We have a performance management culture that enables all team members to understand and deliver our charitable objectives while being accountable for their role in doing so. We are proud of the diversity of our team and our ability to provide training and employment opportunities for young people.

Our pay policy is structured to reflect this and is guided by the following principles:

- We aim to pay staff a salary that is at the market median position of the relevant sector

- We benchmark salaries against charities of comparable size and roles to ours

- Every three years we fully benchmark all salaries, in order to monitor our pay position in the market

- We aim to offer a good benefits package

Fair, honest and open fundraising

We rely on the generosity of our supporters to support the development and improvement of our activities and facilities. That generosity means that we can help more vulnerable young people to access our activities to develop their confidence, self-reliance and independence, as well as learning vital life skills such as team work and leadership. Because we're committed to fair fundraising, we follow the Institute of Fundraising's Codes of Fundraising practice and will continue to operate within the best practices as set out by any new regulatory body.

We will:

- use all donations carefully and responsibly

- respect our supporters wishes in how to assign a gift to a particular activity or facility

- thank you for your support, and let you know what your donations do

- fund work with a demonstrable, positive impact on the lives of young people, while keeping support costs to a minimum

- follow the Institute of Fundraising Codes of Fundraising Practice, ensuring our activities are open, fair, honest and legal

- use our supporters preferred communication channels - if these change, we'll adapt them swiftly to suit your needs

- acknowledge any queries and complaints within three working days, and respond fully within ten working days via your preferred method of contact.

Risk management

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02702502 (England and Wales)

Registered Charity number

1010519

Registered office

London Regatta Centre

Dockside Road

London

E16 2QT

Trustees

Mr G Batten Manager (resigned 6.2.20)

Mr D N Bridge Programme Director

Mr M J Coles Ceo

Mr S J Derben Managing Director

Mr J R Faragher Property Developer

Mr G Harris Self-Employed

Mr A L Laws Retired

Mr E K Sorensen Non-Executive Director

Mr D L Blaney Solicitor (appointed 5.10.19) (resigned 2.11.20)

Company Secretary

Ms J Pledge

Auditors

Haines Watts

Chartered Accountants and

Statutory Auditors

4 Claridge Court

Lower Kings Road

Berkhamsted

Hertfordshire

HP4 2AF

STATEMENT OF TRUSTEES' RESPONSIBILITIES

AUDITORS

The auditors,  Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 2 February 2021 and signed on the board's behalf by:

Ms J Pledge - Secretary

Opinion

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion.  Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shaun Brownsmith FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

Chartered Accountants and

Statutory Auditors

4 Claridge Court

Lower Kings Road

Berkhamsted

Hertfordshire

HP4 2AF

8 February 2021

31.3.20

31.3.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£   

£   

£   

£   

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

-

-

-

2,055

Other trading activities

3

-

-

-

11,000

Investment income

4

572,926

-

572,926

448,651

Total

572,926

-

572,926

461,706

EXPENDITURE ON

Raising funds

5

740

-

740

-

Charitable activities

6

Charitable Actiivty

360,169

-

360,169

528,164

Total

360,909

-

360,909

528,164

NET INCOME/(EXPENDITURE)

212,017

-

212,017

(66,458

)

RECONCILIATION OF FUNDS

Total funds brought forward

8,637,154

-

8,637,154

8,703,612

TOTAL FUNDS CARRIED FORWARD

8,849,171

-

8,849,171

8,637,154

31.3.20

31.3.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£   

£   

£   

£   

FIXED ASSETS

Tangible assets

11

7,915,334

-

7,915,334

8,166,449

Investments

12

2

-

2

2

7,915,336

-

7,915,336

8,166,451

CURRENT ASSETS

Debtors

13

1,080,766

-

1,080,766

487,784

Cash at bank

72,919

-

72,919

166,266

1,153,685

-

1,153,685

654,050

CREDITORS

Amounts falling due within one year

14

(219,850

)

-

(219,850

)

(183,347

)

NET CURRENT ASSETS

933,835

-

933,835

470,703

TOTAL ASSETS LESS CURRENT

LIABILITIES

8,849,171

-

8,849,171

8,637,154

NET ASSETS

8,849,171

-

8,849,171

8,637,154

FUNDS

15

Unrestricted funds

8,849,171

8,637,154

TOTAL FUNDS

8,849,171

8,637,154

The financial statements were approved by the Board of Trustees and authorised for issue on 2 February 2021 and were signed on its behalf by:

Mr A L Laws - Trustee

Cash flows from operating activities

Cash generated from operations

1

517,576

109,253

Decrease/(increase) in sum owed by sub

(595,868

)

(200,810

)

Net cash used in operating activities

(78,292

)

(91,557

)

Cash flows from investing activities

Purchase of tangible fixed assets

(15,126

)

(4,224

)

Interest received

71

-

Net cash used in investing activities

(15,055

)

(4,224

)

Change in cash and cash equivalents

in the reporting period

(93,347

)

(95,781

)

Cash and cash equivalents at the

beginning of the reporting period

166,266

262,047

Cash and cash equivalents at the end

of the reporting period

72,919

166,266

1.

RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING

ACTIVITIES

31.3.20

31.3.19

£   

£   

Net income/(expenditure) for the reporting period (as per the

Statement of Financial Activities)

212,017

(66,458

)

Adjustments for:

Depreciation charges

266,241

268,071

Interest received

(71

)

-

Decrease/(increase) in debtors

2,886

(42,753

)

Increase/(decrease) in creditors

36,503

(49,607

)

Net cash provided by operations

517,576

109,253

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£   

£   

£   

Net cash

Cash at bank

166,266

(93,347

)

72,919

166,266

(93,347

)

72,919

Total

166,266

(93,347

)

72,919

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, with the exception of investments which are included at market value.

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and account.

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

Freehold property

-

2% on cost

Fixtures and fittings

-

20% on reducing balance

Taxation

Fund accounting

Hire purchase and leasing commitments

2.

DONATIONS AND LEGACIES

31.3.20

31.3.19

£   

£   

Donations

-

2,055

3.

OTHER TRADING ACTIVITIES

31.3.20

31.3.19

£   

£   

Management

-

11,000

4.

INVESTMENT INCOME

31.3.20

31.3.19

£   

£   

Rents received

461,862

448,651

Parking Income

110,993

-

Deposit account interest

71

-

572,926

448,651

5.