Davenant Centre(THE) - Charities report - 22.2

REGISTERED COMPANY NUMBER: 01799707 (England and Wales)

REGISTERED CHARITY NUMBER: 289235

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

DAVENANT CENTRE(THE)

Page

Report of the Trustees

1

to

6

Report of the Independent Auditors

7

to

10

Statement of Financial Activities

11

Balance Sheet

12

Notes to the Financial Statements

13

to

19

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 2023. 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

The charity's principal activity during the year continued to be that of the provision of two community centres for the educational and social benefits of the inhabitants of the London Borough of Tower Hamlets.

The two Community Centres location and the charities occupying them during the year are;-

a) 179-181 Whitechapel Road, London, E1 1DN

The property was vacant throughout the period. Contract for sale was exchanged on 6th March 2023 and completion took place on 11th April 2023.

b) 183-185 Whitechapel Road, London, E1 1DN

i) The Rainbow Centre, a registered charity providing children's playgroup services.

ii) CGL, a registered charity providing a range of treatment services for drug and alcohol related misuse.

The trustees consider that The Davenant Centre charity is achieving its objectives through the above charities, who occupy the properties owned by the charity.

The trustees confirm that they have given due consideration to the Charity Commission's published guidance on Public Benefit requirement under the Charities Act 2011.

STRATEGIC REPORT

Financial review

Principal funding sources

The Davenant Centre's main source of funding during the period was from rental income derived from the letting of its two properties to other charities. The rental income for the year has gone down in the year due to the property at 179-181 Whitechapel Road, being vacant throughout the period

Reserves policy

The total Unrestricted funds at 31st March 2023 amounted to £347,819 (2022 £432,462). These funds represent surplus/deficit on the day to day activities of the charity.

The total Restricted funds at 31st March 2023 amounted to £5,365,820 (2022 £5,393,315). The restricted funds represent the net book value of the freehold land and buildings and funds due from the sale of building at 179-181 Whitechapel Road, less the related loans.

The property revaluation reserve included within the total Restricted funds at 31st March 2023 amounted to £841,071 (2022 £1,619,607). These funds can only be used for any accounting adjustments in the fair value of the Freehold properties.

The Restricted funds cannot be used for the day to day activities of the charity

Going concern

The trustees have considered the going concern position of the company and are satisfied that the company has sufficient reserves to continue to operate for the immediate future with the help of the London Borough of Tower Hamlets

Summary of activities for the year

The total income receivable by the Charity in the year amounted to £108,218 (2022 £183,320). The total expenditure for the year amounted to £218,913 (2022 £82,557). The deficit for the year amounted to £110,695 (2022 Net Income £100,763). The deficit mainly resulted from the increased light and heat costs in the year as well as a notional loss on the sale of the building.

The Charity's overall debt increased by £17,095 to £623,780 at the year end. The increase in debt results from the interest payable on London Borough of Tower Hamlets facilities. These facilities were fully repaid on 11th April 2023.

Principal risks and uncertainties

The Davenant Centre is dependent on rental income from the two Community Centres which are let out to other Charities. The economic climate for the past few years has been difficult for Charities generally who survive on donations from the public or grants from other public bodies. If the Tenants are unable to pay the rent on time or go into administration or liquidation, The Davenant Centre in turn is unable to make payments for its Loan commitments and repairs to its buildings as and when they arise. In addition, since March 2020, Covid-19 has affected many charities financially and consequently their continued operation.

The two community centre buildings are over 100 years old and may from time to time require major repairs and refurbishments and the trustees consider that the funds held at the bank are required to meet these commitments.

Revaluation of freehold property

The two properties were professionally valued by Dobbin & Sullivan, Chartered Surveyors during September 2019 at an open market value of £6,000,000. On the sale of one of the building, the remaining property value amounts to £2,550,000. The trustees are of the opinion that this amount represents a fair value at the Balance Sheet date.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The company is registered as a charitable company limited by guarantee as set up in the Memorandum of Association on 13 March 1984. The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association. The Board of directors is made up of the the trustees of the Davenant Centre.

Recruitment and appointment of new trustees

The Board of trustees will ensure that any new appointments will have an appropriate mix of business skills.

Organisational structure

The trustees are responsible for the overall management of the charity. The consultant, who was appointed during the corporate restructuring in July 2009, resigned his position during the year and the trustees have continued to manage the two properties owned by the charity. The trustees have appointed a firm of chartered surveyors to manage the properties and provide administrative and financial services from January 2023. The trustees meet regularly to review the activities and financial performance. They also meet on informal basis as the need arises. The charity has no employees.

Induction and training of new trustees

New trustees are made aware of their responsibilities. This includes an introduction to the objectives, scope and policies of the charity.

Related parties

The London Borough of Tower Hamlets has provided financial support through an overdraft facility to the charity. This facility amounted to £623,780 at 31st March 2023 (2022 £606,685). Interest is payable and the facility is secured by a second charge over the charity's properties. These facilities were repaid on 11th April 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01799707 (England and Wales)

Registered Charity number

289235

Registered office

114-116 Goodmayes Road

Ilford

Essex

IG3 9UZ

Trustees

J A Pulford MBE

G K Collins

Company Secretary

Senior Statutory Auditor

Rameshchandra Arjan

Auditors

Ashfords Partnership LLP

114-116 Goodmayes Road

Ilford

Esex

IG3 9UZ

Bankers

National Westminster Bank PLC

Mile End Branch

Albion Yard

331/335 Whitechapel Road

London

E1 1AU

BACKGROUND INFORMATION OF THE CHARITY

The Davenant Centre is a former GLC- owned building that was transferred by Grant Aid, along with the neighbouring Jaganori Centre to the trustees of the Centre in 1984 by the formation of a Company Limited by guarantee. The two properties are located at 179-181 and 183-185 Whitechapel Road, London E1. The property at 179-181 Whitechapel Road was sold on 6th March 2023.

In 2004, The Charity embarked on a major capital project to transform the 179-181 building (a former Victorian school) into a modern education and youth centre with the help of funding secured from a number of sources including loan facilities from NatWest Bank.

However by 2005 the project was suffering from severe funding shortage resulting from cost overruns as a consequence of a number of factors including the discovery of ancient burial remains and increases in building material costs.

During 2006, The Davenant Centre encountered significant internal management problems, culminating in lengthy litigation proceedings between a number of former trustee and the management committee (new trustees) resulting in payment delays to the builders, additional legals costs and interest payments on contractual liabilities.

A court order was subsequently approved in February 2007 setting out various conditions including the creation of a steering committee consisting of no more than 4 people to carry out the function of the management committee to deal with all matters arising from and relating to the financial affairs and day to day business of the Centre.

During 2007 and 2008, The Davenant Centre had serious financial problems resulting from delays in completion of the Centre and the consequent loss of revenue from rental income of the Centre. This led to the Centre defaulting on Loan repayments to the Bank and the renegotiation of the facilities.

In the early part of 2009, London Borough of Tower Hamlets considered that there would be a very high risk that a high profile community asset which has benefited from significant public investment, would be lost and advanced further funding facilities in subordination to the NatWest Loan facilities, subject to a number of conditions.

As part of the financial restructuring, the Davenant Centre was taken into administration in July 2009. The NatWest Bank loan terms were further renegotiated and the London Borough of Tower Hamlets advanced additional funding facilities to the Centre. Two senior officers of the London Borough of Tower Hamlets were appointed to the Board of trustees to ensure correct governance of the organisation. As trustees, they were required to take a disinterested view in the affairs of The Davenant Centre independently from their responsibilities as Council officers.

From this point, the Davenant Centre embarked upon a business recovery process aimed at ensuring that the Centre was able to pay all outgoings from its income and that the two buildings in its portfolio remain available for community use. The trustees have also ensured that the Charity's debt repayments are met on time and have focused on reducing the total debt of the charity.

As part of this recovery process, in a bid to reduce the outgoings, the trustees decided to change its business model from letting of serviced offices at the Centre to a grant of leases to single occupiers for each of the two properties. The two buildings were let out to two separate charities whose aims and objectives correlated to those of the Davenant Centre.

During the financial year 2016-17, The Davenant Centre's priority has been to attract alternative income generating uses for 183-185 Whitechapel Road, following the insolvency and subsequent closure of former tenant, Jagonari Women's Education Resource Centre (JWERC) at the end of August 2015.

At the beginning of September 2015, The Davenant Centre granted a lease for the occupation of the rear nursery premises and ground floor offices to Rainbow House, a provider of important local childcare services. Efforts continued to bring the remainder of 183-185 Whitechapel Road, comprising the first, second and third floors, into revenue earning use. This included viewings by a number of community organisations and a feasibility study undertaken in conjunction with the London Borough of Tower Hamlets for converting the space for use as an enterprise workspace centre. This would have been dependent on grant funding from the Council's Whitechapel Regeneration team. The proposed grant was not subsequently forthcoming and the search for alternative tenants continued.

In November 2016, The Davenant Centre entered into a lease agreement with Lifeline, a charity which had been awarded a drugs recovery contract by the London Borough of Tower Hamlets, to occupy the three upper floors of 183-185 Whitechapel Road. Because the building had been left in a somewhat rundown condition by JWERC, an extensive amount of landlord's works were necessary to bring the building back into viable use.

The Davenant Centre received notification on 2nd June 2017 that Lifeline had been placed into receivership and of the appointment of an administrator for Lifeline, to whom a claim for the unpaid funds was submitted. Subsequently the London Borough of Tower Hamlets appointed CGL, a large national charity delivering similar drug recovery services to Lifeline, to take over the project. Under this arrangement, CGL decided to continue delivery of the drugs recovery services from The Davenant Centre's building at 183-185 Whitechapel Road. CGL has since been occupying the premises under a license agreed with the receivers of Lifeline, who have continued to the pay the full monthly rent specified in Lifeline's lease, to end of June 2018. From July 2018, CGL have occupied the premises on a license. By mutual agreement, the Bangladeshi Drugs Project who occupied 179-181 Whitechapel Road, terminated their lease in March 2018, due to their financial inability to pay the rent and the premises were let to YMCA George Williams College, initially on a license from 1st May 2018 and a 5 year lease from 1st August 2018.The lease was relinquished at its mid point on 31 July 2021. The Davenant Centre has therefore been able to continue to maintain its liquidity over this period and had £445,946 at the Bank at the year end (2021 £364,294). The company's cash position has continued to be closely and regularly monitored and a number of options for increasing revenues and building reserves are under consideration.

The company holds regular discussions with the London Borough of Tower Hamlets in relation to the outstanding debt owed to them of £623,780 at the year end. This debt was fully repaid on 11th April 2023.

The building at 179-181 Whitechapel Road, was sold for £3,450,000 on 6th March 2023 with completion taking place on 11th April 2023. The trustees reached the decision to sell this building after considering various issues with finding appropriate tenants and the time taken to manage the buildings as well as the continued investment required to maintain the buildings which are over 100 years old.

From 1st January 2023, the trustees have appointed Dobbin and Sullivan, Chartered Surveyors as the property manager to fully manage the property at 183-185 Whitechapel Road.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Davenant Centre(THE) 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).

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

AUDITORS

The auditors, Ashfords Partnership LLP, 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 30 January 2024 and signed on the board's behalf by:

J A Pulford MBE - Trustee

Opinion

We have audited the financial statements of Davenant Centre(THE) (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the consultancy services sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were

reasonable

- were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims; and reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Rameshchandra Arjan (Senior Statutory Auditor)

for and on behalf of Ashfords Partnership LLP

114-116 Goodmayes Road

Ilford

Esex

IG3 9UZ

30 January 2024

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

103,559

-

103,559

153,777

Other income

4,659

-

4,659

29,543

Total

108,218

-

108,218

183,320

EXPENDITURE ON

Raising funds

3

152,344

17,095

169,439

82,557

Other

-

49,474

49,474

-

Total

152,344

66,569

218,913

82,557

NET INCOME/(EXPENDITURE)

(44,126

)

(66,569

)

(110,695

)

100,763

Transfers between funds

13

(39,074

)

39,074

-

-

Net movement in funds

(83,200

)

(27,495

)

(110,695

)

100,763

RECONCILIATION OF FUNDS

Total funds brought forward

431,019

5,393,315

5,824,334

5,725,014

TOTAL FUNDS CARRIED FORWARD

347,819

5,365,820

5,713,639

5,825,777

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Investment property

8

-

2,550,000

2,550,000

6,000,000

CURRENT ASSETS

Debtors

9

48,403

3,439,600

3,488,003

15,555

Cash at bank

442,745

-

442,745

445,946

491,148

3,439,600

3,930,748

461,501

CREDITORS

Amounts falling due within one year

10

(143,329

)

(623,780

)

(767,109

)

(635,724

)

NET CURRENT ASSETS

347,819

2,815,820

3,163,639

(174,223

)

TOTAL ASSETS LESS CURRENT LIABILITIES

347,819

5,365,820

5,713,639

5,825,777

NET ASSETS

347,819

5,365,820

5,713,639

5,825,777

FUNDS

13

Unrestricted funds

347,819

432,462

Restricted funds

5,365,820

5,393,315

TOTAL FUNDS

5,713,639

5,825,777

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 30 January 2024 and were signed on its behalf by:

J A Pulford MBE - 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, as modified by the revaluation of certain assets.

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.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

The Trustees consider that no Depreciation provision is required on the Investment properties.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

General funds are unrestricted funds which are available for the use at the discretion of the Trustees in furtherance of the activities of the charity and have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such fund are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.	INVESTMENT INCOME

31.3.23

31.3.22

£

£

Rents receivable

103,559

153,777

3.	RAISING FUNDS

Investment management costs

31.3.23

31.3.22

£

£

Insurance

11,429

12,375

Sundries

290

240

Management fees

1,452

7,766

Property repairs

14,843

15,030

Bank Charges

100

122

Light & heat

101,776

23,440

Cleaning

3,270

1,512

Water rates

8,077

4,252

Irrecoverable VAT

19

3,857

Postage and stationary

55

25

Computer expenses

384

384

Interest - LBTH overdraft

17,095

6,173

Accountancy fees

3,950

3,100

Auditors' remuneration

4,600

2,700

Legal & professional fees

1,533

1,581

Finance charges

566

-

169,439

82,557

4.	NET INCOME/(EXPENDITURE)

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

31.3.23

31.3.22

£

£

Deficit on disposal of fixed assets

49,474

-

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

6.	STAFF COSTS

The charity had no employees during the year and has had none for a number of years.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

153,777

-

153,777

Other income

29,543

-

29,543

Total

183,320

-

183,320

EXPENDITURE ON

Raising funds

76,384

6,173

82,557

NET INCOME/(EXPENDITURE)

106,936

(6,173

)

100,763

RECONCILIATION OF FUNDS

Total funds brought forward

325,526

5,399,488

5,725,014

TOTAL FUNDS CARRIED FORWARD

432,462

5,393,315

5,825,777

8.	INVESTMENT PROPERTY

£

FAIR VALUE

At 1 April 2022

6,000,000

Disposals

(3,450,000

)

At 31 March 2023

2,550,000

NET BOOK VALUE

At 31 March 2023

2,550,000

At 31 March 2022

6,000,000

The two properties at 179-181 and 183-185 Whitechapel Road, London, E1 1DN were revalued by Dobbin & Sullivan, Chartered Surveyors during September 2019 at £6,000,000. The Trustees are of the opinion that the value of the remaining building at 183-185 Whitechapel Road, represents a fair value at the Balance Sheet date.

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Amount due from tenants

9,730

7,727

Amount held by managing agents

12,680

-

Due from Solicitors

3,439,600

-

VAT

11,371

-

Prepayments

14,622

7,828

3,488,003

15,555

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Other loans (see note 11)

623,780

606,685

VAT

-

8

Rent deposit

3,027

3,861

Accruals

120,736

19,549

Rent/Service charge received in advance

19,566

5,621

767,109

635,724

11.

LOANS

An analysis of the maturity of loans is given below:

31.3.23

31.3.22

£

£

Amounts falling due within one year on demand:

LBTH loan facility

623,780

606,685

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.23

31.3.22

£

£

LBTH loan facility

623,780

606,685

The London Borough of Tower Hamlets loan facility is secured by a subsequent charge on the charity's freehold property.

13.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.22

in funds

funds

31.3.23

£

£

£

£

Unrestricted funds

General fund

431,019

(44,126

)

(39,074

)

347,819

Restricted funds

General fund

3,773,708

711,967

39,074

4,524,749

Property revaluation reserve.

1,619,607

(778,536

)

-

841,071

5,393,315

(66,569

)

39,074

5,365,820

TOTAL FUNDS

5,824,334

(110,695

)

-

5,713,639

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

108,218

(152,344

)

(44,126

)

Restricted funds

General fund

-

711,967

711,967

Property revaluation reserve.

-

(778,536

)

(778,536

)

-

(66,569

)

(66,569

)

TOTAL FUNDS

108,218

(218,913

)

(110,695

)

Comparatives for movement in funds

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

325,526

106,936

432,462

Restricted funds

General fund

3,779,881

(6,173

)

3,773,708

Property revaluation reserve.

1,619,607

-

1,619,607

5,399,488

(6,173

)

5,393,315

TOTAL FUNDS

5,725,014

100,763

5,825,777

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

183,320

(76,384

)

106,936

Restricted funds

General fund

-

(6,173

)

(6,173

)

TOTAL FUNDS

183,320

(82,557

)

100,763