Wise Thoughts - Charities report - 22.2

REGISTERED COMPANY NUMBER: 03758786 (England and Wales)

REGISTERED CHARITY NUMBER: 1077616

FOR

Page

Report of the Trustees  

1

to

8

Independent Examiner's Report  

9

Statement of Financial Activities  

10

to

11

Statement of Financial Position  

12

to

13

Notes to the Financial Statements  

14

to

27

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 2022. 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

Significant activities

Volunteers

FINANCIAL REVIEW

Principal funding sources

Reserves policy and Investment powers

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 8) total income for the year to 31 March 2022 amounted to £201,790 (2021 - £226,788) and expenditure in the furtherance of charitable activities totalled £194,298  (2021 - £216,825). 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 £7,492 (2021  £9,963 Surplus).

Awards totalling £91,519 (2021  £85,766) received in advance towards the project costs have been carried forward under Accruals and deferred income.

The CEO/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 necessary 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 vital 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, Arts Council and other  charitable bodies and individual donors. We have also continued our partnership with Public Voice to deliver the Reach and Connect service.

Total net assets of the charity as at 31 March 2022 were £47,905 (2021 - £39,603). Income received for the year for specific purposes was spent as necessary and unspent balance is carried forward to be utilised next year.

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 continues to 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 current economic climate 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

Organisational structure

Induction and training of new trustees

PARTNERSHIPS AND CO-OPERATION WITH OTHER CHARITIES AND ORGANISATIONS

Risk management

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

Ms Ella GOSCHALK (appointed 14.1.22)

Mr Sakib KHAN (appointed 14.1.22)

Ms Katie WOOD (appointed 14.1.22)

Company Secretary

Ms Bhavini Chavda - Chair

Independent Examiner

Mr Michael Filiou

Chartered Certified Accountants

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

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

Approved by order of the board of trustees on 22 July 2022 and signed on its behalf by:

Ms Bhavini Chavda - Chair - Trustee

Independent examiner's report to the trustees of Wise Thoughts ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.

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

Chartered Certified Accountants

Michael Filiou Ltd

Chartered Certified Accountants

www.michaelfiliou.com

Salisbury House

81 High Street

Potters Bar

Hertfordshire

EN6 5AS

22 July 2022

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£   

£   

£   

£   

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

8,161

177,928

186,089

152,104

Other activities income

3

1,050

14,600

15,650

74,586

Investment income

4

51

-

51

98

Total

9,262

192,528

201,790

226,788

EXPENDITURE ON

Charitable activities

Charitable activities

-

-

-

139

Gross salary

-

45,772

45,772

63,114

Project costs

-

131,718

131,718

57,808

Employer's NI

-

275

275

1,801

Rent

-

7,500

7,500

-

Travel and subsistence

-

-

-

5

Telephone

372

-

372

395

Insurance

448

-

448

393

Sundry expenses

212

-

212

-

Depreciation

704

-

704

817

Professional services

450

-

450

420

Accountancy fees

3,240

-

3,240

3,120

WiseOUT

-

-

-

(16

)

Creative Cultural Hub

-

-

-

43,355

Training costs

-

2,550

2,550

-

Community Connector

-

-

-

10,570

COVID-19

-

-

-

33,709

Employer pension

-

1,057

1,057

1,195

Total

5,426

188,872

194,298

216,825

NET INCOME

3,836

3,656

7,492

9,963

RECONCILIATION OF FUNDS

Total funds brought forward

22,169

17,434

39,603

29,640

TOTAL FUNDS CARRIED FORWARD

26,005

21,090

47,095

39,603

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£   

£   

£   

£   

FIXED ASSETS

Tangible assets

9

3,172

2,719

5,891

6,595

CURRENT ASSETS

Debtors

10

-

-

-

5,505

Cash at bank

23,984

116,739

140,723

168,196

23,984

116,739

140,723

173,701

CREDITORS

Amounts falling due within one year

11

(1,151

)

(98,368

)

(99,519

)

(140,693

)

NET CURRENT ASSETS

22,833

18,371

41,204

33,008

TOTAL ASSETS LESS CURRENT

LIABILITIES

26,005

21,090

47,095

39,603

NET ASSETS

26,005

21,090

47,095

39,603

FUNDS

12

Unrestricted funds

26,005

22,169

Restricted funds

21,090

17,434

TOTAL FUNDS

47,095

39,603

The financial statements were approved by the Board of Trustees and authorised for issue on 22 July 2022 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

Plant and machinery

-

at variable rates on reducing balance

Fixtures and fittings

-

10% on reducing balance

Computer equipment

-

20% on reducing balance

Taxation

Fund accounting

Pension costs and other post-retirement benefits

2.

DONATIONS AND LEGACIES

2022

2021

£   

£   

Voluntary grants income

106,236

109,600

Donations

5,204

4,149

Grants

72,149

35,855

Subsidy towards rent

2,500

2,500

186,089

152,104

Grants received, included in the above, are as follows:

2022

2021

£   

£   

Other grants

72,149

35,855