The Trustees present their annual report and financial statements for the year ended 31 May 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The charity's objects are:
a) To provide for the benefit of the community a social relief and care service working by means of befriending, encouraging and caring for individuals to assist in relieving and rehabilitating persons suffering deprivation and to raise their levels of confidence so that they are better able to develop the capacity to participate more fully in society in particular but not exclusively by means of visiting persons in prisons hospitals homes and communities in London and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit
b) To provide in the interests of public benefit community facilities (particularly but not exclusively recreational and other leisure-time activities) so as to develop the physical social and mental capacities of young people that they may grow to full maturity as individuals and members of society in London and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit
Public benefit
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The core work to date has been to continue developing the Edmonton Eagles Boxing Club, to run the youth football coaching and games, to continue the youth project 'Youth Zone' and to develop the ‘Signpost’ project, to carry out the objectives of the charity. The Edmonton Eagles Boxing Club has use of Council premises, where qualified ABA coaches train and coach both adults and children from the surrounding communities.
Running with the Vision Youth Football (RWTV), Edmonton Eagles Boxing Club & Youth Zone continue to go from strength to strength.
As part of the Youth Zone, a talent show has been introduced whereby local talent enter an annual competition with prize money issued to the top 3 winners.
The Signpost project was born out of a commitment to reach out to those on the margins of our community to help support them in sourcing the housing, food, benefits, and emotional support they need. The project continued to function during the week. With our current resources, we are able to provide a meal twice a week. The Project runs weekly on Thursdays for meals and Saturdays for teas, coffees, snacks and once a month on a Saturday for a full breakfast.
Also, a Christmas meal was held during the festive season, which proved to be a great success with many homeless and vulnerable people attending. Through the various donations given, Christmas bags containing clothing and toiletries were given out.
We held four amateur boxing shows throughout the year and Sadiq Khan, Mayor of London, visited the club in July 2022 in relation to the youth work we do at the Boxing Club.
As the project grows, various avenues of funding are being pursued to help maintain and further expand the immensely impacting work of the project. During the year, the charity has applied for and received various forms of funding and donations which have enabled the Charity to further enhance and develop the boxing, football, youth work and Signpost projects that are run.
We recently set up a food bank whereby we provide food parcels to those who are in need within the local community. We use the Boxing club as a base whereby nonperishable food is stored and given out Monday and Wednesday evenings from the Club and Thursdays during our signpost meals. We have linked up with the Felix project who also provide as with frozen and chilled products. The number of people that use the food bank have steadily increased and we are now distributing approximately 120 food bags weekly via the club and Thursday evenings.
This is set out on page 5 of the financial statements. There were funds in hand at 31 May 2023 on all funds of £95,521.
Reserves
The charity is seeking to retain sufficient monies on reserve to cover three months operational expenditure, although at the present time this proved difficult to achieve.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a company limited by guarantee.
The organisational structure of Community Heart (London) at present comprises six community project leaders, Mr Julian Tobierre who heads the day to day running of the Edmonton Eagles Amateur Boxing Project, Mr Kyri Yiallouris and Mr Andy Sotiriou who head the day to day running of the Running with the vision Youth Football project, Mr Dominic Samy who heads the day to day running of the Youth Zone project, Mr Mario Constantinou who heads the day to day running of the Signpost Project and Mr Beki Mustafa who heads the day to day running of the Foodbank. All six project leaders report to the appointed trustees on a regular basis.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Trustees, who are also the directors of Community Heart (London) for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Community Heart (London) (the charity) for the year ended 31 May 2023.
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements 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
the financial statements 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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Community Heart (London) is a private company limited by guarantee incorporated in England and Wales. The registered office is 193-195 Fore Street, Angel Place, Edmonton, London, NW18 2UD.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Fees are recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Grants are recognised in the financial statements in the period in which they are received unless material and related to a specific period, when they are deferred to the balance sheet and carried forward to the next accounting period.
Resources expended are recognised in the period in which they are incurred and allocated to the particular cost centre to which they relate. Expenditure includes irrecoverable VAT.
Costs of rent and support other overheads are allocated to the cost centres in the following proportions to reflect usage;
Support Costs Governance
Edmonton Eagles 90% 85%
Running with the Vision 5% 5%
Youth Zone 5% 5%
General fund 0% 5%
Property, plant and equipment are measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed assets costing below £200 are not capitalised as well as various small items of boxing equipment.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the opinion of the Trustees the charity is not liable to United Kingdom corporation taxation on its charitable activities.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants received
Gift aid receivable
Fees and contributions (Edmonton Eagles)
JRS Grants received
Grants Enfield Borough Council
General
Edmonton Eagles
Running with the Vision
Youth Zone
Signpost Project
Boxing equipment, events and other costs
Small items of equipment and sundries
Travel and accommodation
Subscriptions and licenses
Youth Retreat
Football costs
Youth Zone costs
Sign post project (rent and other costs)
Seminars and books
Insurance
General
Edmonton Eagles
Running with the Vision
Youth Zone
Signpost Project
Boxing equipment, events and other costs
Small items of equipment and sundries
Subscriptions and licenses
Football costs
Youth Zone costs
Sign post project (rent and other costs)
Seminars and books
Insurance
Rent and services
Gas and electricity
Insurance
Telephone, fax and website
Printing, postage and stationery
Repairs, maintenance and small equipment
Software costs
Professional fees
Sundries
Accountancy and bookkeeping fees
Independent Examiners fees
Payroll fees
Bank charges
Dr C Evangelou (a trustee) received a gross salary of £49,983 (2022: £50,460) in accordance with the memorandum and articles of association.
P Efstathiou (a trustee) received a gross salary of £9,995 (2022: £10,093) in accordance with the memorandum and articles of association..
None of the other Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £2,412 (2022 - £2,444).
Notes
The deficits on Edmonton Eagles and Signpost were corrected by transfers from the unrestricted fund in the year.
Funds
Edmonton Eagles
This deals with the boxing activities of the charity which includes restricted grants and fees and gifts towards the work of the boxing club.
Running with the Vision
This deals with the football activities of the charity.
Youth Zone
This deals with the other youth activities of the charity.
Signpost Project
This deals with the provision of free meals and other support by the charity.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There is a lease dated 19 September 2008 for the rental of a Boxing Club and Community Room at a rental of £2,500 per annum payable to the London Borough of Enfield. This was renewed for 10 years from July 2022.
There were no disclosable related party transactions during the year (2022 - none).