REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
3SPACE |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
3SPACE |
3SPACE |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Report of the Trustees | 1 | to | 6 |
Independent Examiner's Report | 7 |
Statement of Financial Activities | 8 |
Balance Sheet | 9 | to | 10 |
Notes to the Financial Statements | 11 | to | 15 |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
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). |
The Charity is also registered with the Office of Scottish Charity Regulator (OSCR) number SC042130. |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The charity's objects ("Objects") are specifically restricted to the following: |
(1) To promote the efficiency and effectiveness of charities and the effective use of charitable resources for the benefit of the public by providing charities, non-profit or community organisations with access to property in otherwise vacant units on a non-commercial basis; and |
(2) To promote charitable use of property as a means of empowering communities, regenerating areas, developing a robust community sector, supporting social enterprise and delivering public benefit. |
Significant activities |
The charity's work involves signing short-term, meanwhile use, leases on empty commercial properties, which are then made available to charitable organisations, social enterprises, recognised community groups and qualifying local start-up businesses. |
ACHIEVEMENT AND PERFORMANCE |
How our activities deliver public benefit |
Our main activities and who we try to help are described below. Our activities focus on providing charities, not for profit organisations and qualifying local start-up businesses with access to properties in which they can carry out their own activities for public benefit. |
During the period, the charity provided space to over 180 organisations. Organisations who used our spaces have included registered charities (with a primary focus on education, unemployment, health, sport, arts, youth entrepreneurship, start-up business and food poverty), universities, social enterprises, community groups, qualifying local start-up businesses and Local Authorities. |
Projects running in the charity's properties have continued to expand the reach of voluntary and community sector organisations at a time when traditional models of service delivery have been under pressure if not out-of-reach. |
A brief summary of activities undertaken by beneficiary organisations during the period is included below: |
The BuyGiveWork model continues to be employed using the 'Buy One Give One' approach that 3Space has pioneered in the property sector. BuyGiveWork means for every desk rental (supplied at below-market rate), one is provided free of charge to a qualifying non-profit, local start-up, or experimental project. This model enables the space to support a wide base of charitable projects and encourages collaboration between locals and non-locals. |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
The charity's major project during the period is International House, in partnership with Lambeth Council. 3Space was selected in September 2018 via a competitive tender to take the former Council office in Brixton on a five year Meanwhile Use to expand its BuyGiveWork program. International House remains in Council ownership and has been earmarked for redevelopment after five years as part of the Brixton Central masterplan. 3Space's interim activity will play a part in informing these future regeneration plans. The charity committed to a total rent payment to Council of £1.1 Million over 5 years with a 1 year rent free period. Quarterly payments have continued through the reporting period and throughout the uncertainty of Covid-19. |
The building is split over 12 floors with five Give floors provided to support youth entrepreneurship, community initiatives and the arts. Five Buy floors are let at a below market rate to support Lambeth's drive to diversify Brixton's economic offer away from food & drink and retail, and towards the Creative & Digital Industries. The top two floors were scheduled to be used for free of charge co-working, meeting and hospitality offer. |
The charity has continued to deliver its outputs through what has been a challenging period as it recovers from the impact from Covid-19. In December 2020 the charity commissioned economics consultancy PRD to prepare a report on International House which demonstrated its value to London Borough of Lambeth as well as alternative options for the future development plans proposed for the building. A summary of the report findings is as follows: |
Typical Annual Outputs of International House |
In International House has delivered the following benefits: |
- 230 New jobs |
- 337 People employed |
- 111 Lambeth residents employed |
- New jobs created during Covid 19 |
- 130 Businesses had access to space |
- 22 New youth led businesses started |
- 300 Events a quarter |
- 58 Non-profits & social enterprises have a home free of charge |
- 30 NEET young people into employment per year (2019) |
- 20 Apprentices employed per year (2019) |
- 64 Work experience placements per year (2019) |
- 2,800 Attended training per year (2019) |
- 4,916 Volunteers per year (2019). |
Valuing these Outputs |
Using standard accepted measures, it is possible to come up with an approximate gross value of each of these: |
- 337 Jobs provided on site provides gross contribution of £15.9m GVA for the local economy |
- 230 new jobs created account for £11m of GVA |
- Tenants report increase in turnover and employment. Turnover now c £12m amongst tenants |
- £800,000 rent foregone to civil society per year = effective donation to these activities |
- £2.6m of social value generated per year (estimated at 15 x typical office building) |
To provide a more effective net figure for policy analysis additionally is applied to the core GVA (derived from earning in the building to give an approximate value of activity within International House): |
- Displacement of 35% (i.e. we assume that a proportion of the activity within International house would have happened in some form in the borough, if International House had not moved forward in its current form). This is lower than would normally be the case, but reflects a more curatorial approach and the fact that a number of the larger occupiers can from outside the borough. |
- Leakage of 20% (i.e. 20p of every £ in value leaves the borough as staff or suppliers are nit based in Lambeth). This is lower than might be typical given the number of local people working or supported in the building. |
- Deadweight of 20%, Assumes that some of the activity would have taken place in the borough |
- A standard multiplier 1.2 which reflects the recycling of value generated within the local economy |
Allowing for this gives a rough net annual added value of c £5m per year. With additional benefits of £3.4m in direct benefits to charities and social value. |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
Although International House is located in an office and provides workspace, it is wrong to simply classify it as a managed workspace project. The interface between private businesses, civil society, start-ups, charities, culture and creation make it unlike a typical market led 'product'; it is therefore difficult to benchmark it against other developments. |
Based on the impact numbers presented here however, it is reasonable to argue that a purpose-built office would deliver similar (or slightly higher) employment numbers and density than is currently achieved at International House. |
Social value is clearly a more significant differentiator. Comparing International House to a proposed development in the north of Lambeth using similar metrics shows that the new development is estimated to deliver £27psqm social value. This compares to £413psqm at International House. |
2022/2023 update |
The charity has not undertaken a similar independent study in 2022/2023, however it expects to provide a report in 2023/24 when the International House project is expected to end. However, the charity has undertaken monitoring of its tenants via regular surveys. This shows similar activity has continued as in the year 2021/2022 where during that period: |
- 97 new jobs were created |
- 140 Businesses had access to space |
- 13 youth led businesses |
- 73 local orgs given space for free |
- 1760 volunteering opportunities |
- 41 apprenticeships |
- 182 work experience placements |
- 390 training places (2019) |
- 107 placements for NEETS |
- 147 events per quarter |
The list of organisations the project continues to support across the different floors including the following five Give floors: |
1. Business Launchpad (BLP) was up until early 2022 the delivery partner for the Youth Entrepreneurship floor. The new delivery partner since April 2022 is the youth led organisation called Innovators League. |
There are a range of youth organisations and start-ups led by young people who use the floor including Abdul Karim, BiG/Bestys inspirational Guidance, Grooveschool, House on Fire, Inzyme, Juvenis, Milk Honey Bees, No Roof, Step Now and TPro. This floor is provided free of charge to the Innovators League and their end users. |
2. Photofusion is the delivery partner for the Photographic Services Floor. Photofusion is a registered charity and London's largest photographic resource centre. They moved to International House having been unable to afford a rent increase on their existing site and were at risk of displacement from the Borough. The centre's facilities include digital suites, darkrooms, exhibition production services and picture library alongside a contemporary gallery which places an emphasis on showcasing emerging photographers, alongside new work by mid-career artists. The exhibition programme includes artist talks, panel discussions and occasional related masterclasses or workshops. |
Alongside its professional development and training programmes, Photofusion delivers a range of crucial outreach engagement projects, working with socially and culturally marginalised young people, offering photographer-led creative programmes, skills-based accredited courses, bursaries and internships in collaboration with local organisations and a range of funding partners. |
This floor is provided rent free but Photofusion pay a service charge as some of the services they offer are paid for. |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. The Community Initiatives floor is available free of charge to local charities, non-profits and social enterprises who are based in Lambeth or who deliver programs which directly benefit Lambeth residents. During this period the floor was used by Abstract Benna, ARCS, Access Music Media, The Ascension Agency, Action Plus Foundation, ARCS Lambeth, Asylos, Avid Detention, Be Enriched, Brixton People’s Kitchen, Be Her Lead, Birds Eye View, Brixton bugle, Brixton Neighbourhood Forum, Babel Theatre, Brixton £, Brixton Project, Breadwinners, Built By Us, Earlybird,, Collected Creative, Compass Collect, The Crows, Clapham Film Unit, Cocoon Family Support, Code 7, Commons Legal, Cherry Groce Foundation, City of Sanctuary, Class 13, Craft Forward, Community Arts Box, Compliments of the House, Creative Society, Divert, Dialogue Hub CIC, Eco Soul hostel, Edible Lambeth, Empathy Museum, Exceed Reading Stars, Father Nature, FORTH, Gay Social, Girls United, Global Entrepreneurs UK, Glasshouse Theatre, Gma's Community Kitchen, Grounded Sounds, Global Urban Design, Hope For The Young, Healthy living Platform, Hope in the Heart, Independent Film Trust, Inclusion Arts, Kelly’s Cause Foundation, K3 Media, Bounceback, Lambeth Larder, Library of Things, Lee Lawrence Consultancy, Lerato Community Initiative, LTEN, Mi Comput Solutions, Multi Story Orchestra, New Challenge, The National Windrush Museum, Onwards and Upwards, Project Access, Prop Up Projects, Rapport Festival, Respeito, Restart Projects, Shamha Vibration, School Ground Sounds, Sloth Club CIC, State of the African Diaspora, Strongback Productions, Student Development CIC, Student Hubs, Brixton Topcats, Untold Stories, Urban Growth, We Are Oxygen Arts, We Rise, We Rock, Youth in Excellence, UBL Lambeth, Unjust CIC, Untold, We go Forth. |
The floor is provided free of charge, but tenants are encouraged to pay into a future rent deposit scheme to build up a rent fund for any subsequent workspace. This is returned in full when the tenant moves out or the project comes to an end. |
4. The Events and Projects spaces are across the ground floor and are available free of charge to the buildings tenants and have been extensively used for a range of different types of use with a mixture of workshops, training, meetings and public facing events. The use of the Event Space is free of charge to use which removes any barrier for our tenants who might otherwise not be able to afford access to centrally located and well-equipped event space, specifically young people and local charities. |
5. The fivth Give Hub is a fabrics and textiles studio managed by Assemble, a Turner prize-winning art and design collective. Its tenants include many local and new start-ups including over 50% from BAME backgrounds. The tenants are Aergo, Ascension agency, good studio Riso, Furious Goose, Little Collective, Kangan Auror, LaundRe, White Weft, Stitch School, Glitter Customs, Paq Works, SCRT, Smith Matthias Ltd, Studio 1, United 80 Brixton, Ilara, Fashionwide, Ato studio, Ceres Studio and We Love. |
This floor is provided rent free but Assemble pay a service charge and they in turn charge an affordable rental fee for textiles and fashion start-ups using the space. |
The 5 Buy Floors are tenanted by a mixture of larger charities, freelancers, start-ups and scaleup businesses. All of the Buy Floor tenants are subject to a points-based allocation system which has been formalised in a Tenant Allocation and Marketing Strategy document that was drawn up with Council to align with the Borough's economic regeneration plans. The start-ups and scaleups who have benefited from the use include: Refuaid, Resi, The Ubele Initiative, Amazing Productions, Plantacorp, AKOU, Drew London, CodeBrave, India Thorogood, Food Foundation, ihateironing, National Energy Action, Insurance Supper Club, Fair Education Alliance, Drew & Rose, Minerva Tutors, Richard Nield, Repowering ltd, Rocial Visuals, The Bike Project, White Puzzle, Yes Futures, Iconic Steps, Refugees at home, Just Like Us, Black Thrive, Brixton BID, Road Peace, South London Cares, Age UK Lambeth, Thursday Works, Boz Temple-Morris, and Hello Self. |
International House continues to be recognised by the Living Wage Foundation as Living Wage Building. It was the first Living Wage Building in UK and secured this status for the first time in 2019. This means that any organisation working from the building and their employees are required to be paid the London Living Wage. This is managed by a licence agreement with the tenants and is monitored via half yearly reporting requirements. |
3Space provides space that acts as an interface between private business, civil society, start-ups, charities, culture and creation. Providing space which is free or low cost is one benefit. However, another benefit is from the co-location of similar organisations, the connections that are made by these organisations and the clustering benefits to the local economy. The connections formed between these diverse businesses and community initiatives is a hallmark of 3Space’s BuyGiveWork approach. |
3Space has been working with data consultancy AKOU to develop a model showing the impact of these relationships at International House in Brixton. The map shows how organisations at 3Space are connected to each other, the strength of the relationship and how they collaborate. You can view the work in progress on the network map here https://akou.co.uk/3space/. |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
In April 2022 3Space won a competitive tender from Haringey Council to operate the council owned 40 Cumberland Road, Wood Green. This was a 35,000 sq ft building offered on a 10-year lease where 3Space proposed to implement its Space for Public Good and BuyGiveWork model. Unfortunately, there were several changes made to key parameters and after a year of negotiations the project was no longer considered viable, Despite best efforts, 3Space were unable to agree a way forward with council and the project was terminated in April 2023 (just outside this reporting period). |
Whilst this is disappointing, much of the expenditure was undertaken by consultants which were funded by GLA and Haringey. Apart from the significant amount of 3Space staff time spent in the project, there was very limited risk or cost impact on 3Space. |
Further details of additional past projects can be found on the Charity's website. |
During the period, the charity has continued to work with and develop its Advisory Panel - a group of experts from the property, regeneration and marketing sectors - who provide advice and direction. 3Space hugely appreciates the time, effort and valuable support generously given by the members of the Panel. |
FINANCIAL REVIEW |
Investment policy and objectives |
Under its Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish. The trustees, having regard to the liquidity requirements of operating the charity have maintained a policy of keeping available funds in interest bearing deposit accounts. |
Reserves policy |
It is the policy of the charity to maintain unrestricted funds, which include the free reserves of the charity, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely costs of the charity for the next year. |
The charity had unrestricted funds of £108,011 (2022: £110,473) as at 31 March 2023. |
FUTURE DEVELOPMENTS |
The lease at International House in Brixton was due to expire in September 2023. However, outside this reporting period, 3Space has now secured an extension on its lease to December 2024. 3Space will continue to work closely with its landlord and partner for the project, Lambeth council. |
3Space continues to work on securing new properties to deliver greater impact. 3Space’s goal is to replicate the success of International House and expand its operations by opening a flagship hub in each quadrant of London in the next 5 years. 3Space will continue to focus on opportunities to use publicly owned assets to implement its Spaces for Public Good approach, while also considering opportunities to again work with the private sector. |
3Space is well placed to secure government tenders for affordable workspace and the delivery of social value. The charity will also continue to explore opportunities to expand its reach and impact working with the private sector. |
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. |
In the event of the company being wound up members are required to contribute an amount not exceeding £1. |
Recruitment and appointment of new trustees |
The initial Trustees founded the company due to their interest in the aims of the charity as set out below. |
Organisational structure |
Trustees meet informally on a regular basis to manage the activities of the charity, which are organised by the executive management committee. |
A Trustee is required to sign any property lease that the charity enters into. |
3SPACE (REGISTERED NUMBER: 07221470) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Induction and training of new trustees |
All Trustees have read the guidance issued by Charity Commission concerning their roles and obligations. |
Trustees can retire when they wish as they do not serve under a fixed term. |
Risk management |
The Trustees have conducted a full risk assessment of the organisation. Various systems and checks have been put into operation and these are reviewed annually. |
The Trustees are satisfied that systems are in place to mitigate our exposure to those major risks. |
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 |
Registered Charity number |
Registered office |
Trustees |
Independent Examiner |
DAS Accounting Services Ltd |
105 Eade Road |
OCC Building A |
2nd Floor Unit 11D |
London |
N4 1TJ |
Approved by order of the board of trustees on |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
3SPACE |
Independent examiner's report to the trustees of 3Space ('the Company') |
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023. |
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 |
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies. |
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 Pesach Davidoff FCCA |
DAS Accounting Services Ltd |
105 Eade Road |
OCC Building A |
2nd Floor Unit 11D |
London |
N4 1TJ |
26 December 2023 |
3SPACE |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities | 4 |
Charitable activities | 125,990 | 85,623 |
Investment income | 3 | 3,577 | 11 |
Total | 319,973 | 318,338 |
EXPENDITURE ON |
Charitable activities |
Charitable activities | 322,435 | 225,266 |
NET INCOME/(EXPENDITURE) | (2,462 | ) | 93,072 |
RECONCILIATION OF FUNDS |
Total funds brought forward | 110,473 | 17,401 |
TOTAL FUNDS CARRIED FORWARD | 110,473 |
3SPACE (REGISTERED NUMBER: 07221470) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
FIXED ASSETS |
Investments | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS/(LIABILITIES) |
FUNDS | 12 |
Unrestricted funds | 110,473 |
TOTAL FUNDS | 110,473 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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. |
3SPACE (REGISTERED NUMBER: 07221470) |
BALANCE SHEET - continued |
31 MARCH 2023 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
3SPACE |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATEMENT OF COMPLIANCE |
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. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The financial statements have been prepared under the historical cost convention. |
The financial statements are prepared in Sterling, which is the functional currency of the entity. |
Preparation of consolidated financial statements |
The charity is not required to prepare consolidated financial statements in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertaking comprise a small group. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the charity's accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below. |
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. |
Governance costs |
Governance costs are associated with the governance arrangements of the company and charity and relating to the general running of both. These costs include audit, legal advice for trustees and costs associated with meeting constitutional and statutory requirements such as the cost of trustee meetings and the preparation of the statutory accounts. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
3SPACE |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Fund accounting |
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.There are no restricted funds as at the Balance Sheet date. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease. |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible reference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. |
3. | INVESTMENT INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest |
Interest receivable - trading | 3,135 | - |
4. | INCOME FROM CHARITABLE ACTIVITIES |
2023 | 2022 |
Charitable | Total |
activities | activities |
£ | £ |
Income from charitable activities | 125,990 | 85,623 |
Income from charitable activities relates to rent charged to the charity's subsidiary, 3Space Trading Ltd, in relation to the youth, cultural and community programmes provided on the Give Floors as part of the BuyGiveWork initiative. |
5. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Independent Examiner's fee | 2,575 | 2,350 |
Other operating leases | 206,400 | 206,400 |
3SPACE |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
6. | 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. |
7. | STAFF COSTS |
8. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2022 and 31 March 2023 | 10,100 |
NET BOOK VALUE |
At 31 March 2023 | 100 | 10,000 | 10,100 |
At 31 March 2022 | 100 | 10,000 | 10,100 |
There were no investment assets outside the UK. |
The company's investments at the balance sheet date in the share capital of companies include the following: |
Registered office: 105 Eade Road, OCC Building A, 2nd Floor, Unit 11D, London N4 1TJ |
Nature of business: Management of real estate |
% |
Class of share: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Consolidated financial statements have not been prepared as the charity has taken advantage of the exemption conferred by section 398 of the Companies Act 2006. |
3SPACE |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Other creditors |
Accrued expenses |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
12. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.4.22 | in funds | 31.3.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 110,473 | (2,462 | ) | 108,011 |
TOTAL FUNDS | (2,462 | ) | 108,011 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 319,973 | (322,435 | ) | (2,462 | ) |
TOTAL FUNDS | ( | ) | (2,462 | ) |
3SPACE |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.4.21 | in funds | 31.3.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 17,401 | 93,072 | 110,473 |
TOTAL FUNDS | 17,401 | 93,072 | 110,473 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 318,338 | (225,266 | ) | 93,072 |
TOTAL FUNDS | 318,338 | (225,266 | ) | 93,072 |
13. | RELATED PARTY DISCLOSURES |
During the year the charity received donations of £190,406 and rental income of £125,990 from its subsidiary, 3Space Trading Ltd. |
No transactions with related parties other than disclosed above were undertaken such as are required to be disclosed under Charities SORP (FRS102). |