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COMPANY REGISTRATION NUMBER: 07867225
CHARITY REGISTRATION NUMBER: 1146677
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Unaudited Financial Statements
31 December 2022
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Financial Statements
Year ended 31 December 2022
Page
Trustees' annual report (incorporating the director's report)
1
Independent examiner's report to the trustees
11
Statement of financial activities (including income and expenditure account)
13
Statement of financial position
14
Notes to the financial statements
16
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2022
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2022 .
Reference and administrative details
Registered charity name
Westgate Community Trust (Canterbury) Ltd
Charity registration number
1146677
Company registration number
07867225
Principal office and registered
Westgate Hall
office
Westgate Hall Road
Canterbury
Kent
CT1 2BT
The trustees
Jane Alison Brooke
Lydia Ann Jackson
Imogen Beatrice Morizet
Katherine Rebecca Simmonds
Jo-Anne Tharpe-Skelton
(Retired 24 February 2022)
Sammy Jayne Gildroy
Sarah Jane Wren
Independent examiner
Thomas Saltmer Burgess Hodgson LLP
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
Structure, governance and management
a. Constitution
Westgate Community Trust (Canterbury) Ltd is a company limited by guarantee with charitable status. It was incorporated on 1 December 2011 (Company Number 7867225) and became a registered charity on 29 March 2012 (Charity Number 1146677 ). Reference and administration information is set out on page 1 of the financial statements.
b. Methods of appointment or election of trustees
The management of the charitable company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust's Memorandum and Articles of Association.
c. Policies for the induction and training of Trustees
On appointment, new Trustees are supplied with copies of all necessary documents and guidance for them to understand their role in the Trust. The charitable company also refers to guidance related to decision making issued by the Charities Commission and Community Matters (formerly the National Federation of Community Associations). All Trustees are chosen with a view to them providing the essential and relevant skills for managing and developing Westgate Community Trust (Canterbury) Ltd.
d. Organisation structure and decision making
The charitable company has a Board of Trustees which meets regularly. Between board meetings, the Chair and individual Directors are responsible for necessary decisions and actions.
e. Risk assessment
The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the Trust's operations and finances and are satisfied that systems and procedures are in place to mitigate exposure to major risks.
Objectives and activities
a. Policies and objectives
In February 2014 Canterbury City Council granted the Trust a 99-year lease to Westgate Hall through the process of community asset transfer. The objectives and activities of the charitable company, as defined in the Articles of Association, are twofold:
- The preserving, maintenance and management of the building known as The Westgate Hall, Canterbury, Kent, for the benefit of the people of Canterbury and its districts as a community and leisure centre without distinction of disability, sex, colour, race, political, religious or other opinions by associating the local authorities, public, private and voluntary organisations, and inhabitants, in a common effort to provide facilities in the interests of education, social welfare, recreation and leisuretime occupation with the object of building community and thereby improving the conditions of life of the above inhabitants.
- To further such other charitable purposes for the benefit of the said inhabitants as may from time to time be determined.
The Westgate Community Trust's Objects and Powers to further its Objects (Articles 4 and 5 respectively in WCT's Articles of Association) have provided the Trust the flexibility and to adapt to the financial and social uncertainties and upheavals created by the 2020 Covid-19 pandemic and weather the storm.
Instrumental to the successful governance of the Trust through the 2020 Covid-19 pandemic was Article 41, Proceedings of Directors, points 1 and 6:
- The directors may regulate their proceedings as they think fit, subject of the articles.
- A meeting may be held by suitable electronic means agreed by the directors in which each participant may communicate with all the other participants.
Achievements and performance
2022 Objectives
The Trust's primary objectives in 2022 continued to be those of 2021: assuring the Trust's financial sustainability beyond the challenges of the Covid-19 pandemic and fostering and strengthening its relationships with Westgate Hall's users and communities.
Backdrop to 2022
The Trust's pandemic related experience of 2020 continued to shape the Trust's approach to strategy, governance and operations: the health and safety of staff; collaboration between staff, Trustees, Hall users and customers; identifying risks; putting in place new resources and ways of reporting and monitoring, and initiatives to ensure the Trust was resilient and adaptable to change.
Throughout 2021, the Trust/Hall was required to follow and comply with Government Covid Guidelines related to retail (for our indoor markets); performing arts; multi-purpose community venues; the visitor economy/hospitality; civic responsibilities.
Despite these constraints, the Hall's generous space had allowed it to facilitate delivery of front-line services such as NHS blood donations, gatherings by Bemix clients (a charity working with people with learning disabilities and difficulties), a workshop of Canterbury District Community Halls and Venues, and Canterbury City Council staff meetings. Remaining open for such events and services had helped the Trust/Hall to maintain a business and community presence, enabled potential hirers to see a a space suited to social distancing for those still feeling nervous about holding events and offered small community groups a place where they could safely meet.
While such events continued to provide a small but regular income, the Trust's business model and plans for 2022 were defined by needing to adapt to much-reduced numbers of regular bookings to those pre-pandemic.
With Covid acknowledged as having a similar impact on business as flu, the Trust recognised it needed to integrate this thinking into developing a sustainable financial business model adapted to a post Covid world. Maintaining an outward and forward-looking dialogue with its network of users, audiences and communities needed to be part of this.
Financial review
Finance
The Trust began 2022 in structural deficit, a situation representative of the hospitality sector in Canterbury, and needing to make monthly repayments for its "bounce-back" loan. In addition, the Government and Local Authority Covid grants ended.
This critical situation was exacerbated by the Hall's depleted "pipeline" of events. At the start of 2022, a significant number of events continued to be postponed or cancelled, particularly parties, celebrations, university society balls, and dance-based sessions such as Ceroc and Salsa. In addition, no large-scale income-generating events, such as weddings, celebrations and parties, were scheduled; these are generally booked one to two years ahead. However, February and March saw a light increase in interest in hiring with some regular hirers, such as Canterbury Academy, returning; and as of April, weekend bookings began to improve. As a result, cashflow slowly became more predictable after the first quarter. As part of this there has been a shift in how the Hall is hired as customers use it for a broader spectrum of events, including more frequent music gigs; income from bar sales has consequently grown.
Despite the increase in customer confidence, at the end of 2022 the Trust was still recovering from the pandemic period with its months without income from events, bar or food sales. Re-building reserves lies at the core of the recovery for the Trust.
Underpinning this objective were the following and a recognition of the need for the Trust to be adaptable:
- Regular upgrading of the Westgate Hall website with quarterly market analysis, marketing and communication reviews continued with the aim of reaching new markets and driving sales.
- Reviewing the Trust's Articles of Association and polices, including the Trust's Health and Safety policy.
- Reviewing and redrafting our financial protocols and reserves policy, including the Hall's fees for hire.
- Reviewing booking contracts.
- Reviewing staff contracts (full-time/part-time/flexible); job descriptions.
- Assessing whether the Hall's facilities and generous space met the needs of clients.
- Analysing best use of the Hall's space, with layouts responding to client needs and hybrid working.
- Continuing to grow brand awareness through Marketing and PR opportunities, particularly social media and website.
- Applying for grants which support updating equipment to enable hybrid events (e.g., audio visual).
- Continuing to examine bookings to identify new audiences.
- Continuing fostering our networks and audiences and develop partnership collaborations.
- Undertaking Trustee training.
- Clearing the overgrown side of the Hall and develop a green strategy.
- Assessing building maintenance (wind catchers, floor, toilets, repainting, grounds clearance, gas boiler servicing, reviewing electrical standards etc.) to plan short, medium, and long-term works.
- Addressing security concerns by appointing Akon Security as keyholders for the Hall.
Board of Trustees
Our Trustees represent local independent businesses, marketing, public relations, human resources, the nonprofit sector, economics, fund raising, international corporate sector, and hospitality. They continued to volunteer their professional skills and time in supporting our Hall CEO, Clare Millett. Everyone remained focused on guaranteeing the Hall's future and the security of our CEO and staff. In accordance with Article 41 of the Trust's Articles of Association, communication between the CEO and Trustees could take place electronically. This flexibility ensured Board meetings and conversations could take place either electronically or in person frequently while working through a critical revival of Hall use and business.
Staff Structure and Operations
The decision taken in 2020, following legal advice, to restructure the Hall's staffing, was validated in 2021 and throughout 2022 with benefits both financially and in terms of efficiency. Westgate Hall now operates with three permanent staff (CEO, Events Manager, Event Supervisor), as well as agency and casual staff when required.
Consultancies covering marketing and communications, cleaning, finance and security have improved the Hall's standards and public image.
Our "Cloud based" helpdesk enquiry system, Jira, is now integrated with the new Hall website. Efficiency in responding to customer queries and bookings has improved with resulting growth in business and customer relations and networks.
Chief Executive Officer
Throughout 2022, Clare Millett (CEO) continued to handle all financial and operational matters, including event bookings, rescheduling of events to future dates, correspondence with suppliers, service providers and customers.
Clare also continued the collaboration launched in 2020 with the Chair of Trustees and Jennie Sherwood, the Trust's accountant, in maintaining re-payments for the Government Covid Loan via Lloyds Bank. During 2022, Jennie continued modelling the Hall's financial outlook (as far as possible given the unpredictability of Covid) for six (6) months, one year, 18 months, 2 years. This set the Trust/Hall income goals and created a benchmark against which to assess the Trust's financial position.
During 2022 Cathy Blower, Events Manager handled an increased number of graduation events that had been postponed due to the pandemic. Cathy also oversaw several events and weddings also postponed, she secured new dates for these clients.
Jennie and Clare once again negotiated with HMRC requesting 'Time to Pay' for tax and National Insurance payments.
Concurrently with the above, Clare was assiduous in maintaining the Trust's relationships and
networks with Hall users including Canterbury City Council, Canterbury BID, charities, and Canterbury residents. She also kept the Board abreast of personnel and financial developments and the Trust's communications strategy developed with BeeBee Communications (Bryony Bishop).
In her additional voluntary role as Chair of the Board of Canterbury's Business Improvement District, Clare also further strengthened the Trust/Hall's links further with local businesses, organisations and their staff.
Training
Both the Board and Clare continued participating in Zoom/Teams training and network sessions provided by, for example, Canterbury BID, the Kent and Medway Business Hub and Social Enterprise Kent.
These courses helped the Trust to adapt and, as far as possible, provided us with tools to anticipate the next wave of economic and social change.
Trust Programmes and Events
Underlying our programmes and events is the Trust's ambition to secure the Hall's future for Canterbury's and the District's communities. By engaging our communities, we build business and care for our networks.
Through 2022, despite its uncertain financial situation at the start of the year, the Trust provided "business as usual" by adapting delivery of its programmes to the needs of regular clients as well as new clients including:
- Bemix and Discovery Catering sessions
- Westgate Hall Market
- The Hall's Cafe and Bar
- The Trust's Annual International Women's Day breakfast
- Breakfast networking with Brachers Solicitors
- Canterbury Wine Festival: the Trust was able to deliver the Festival in June 2022 after having to postpone this significant annual event during the pandemic.
- The Sidney Cooper Gallery
During 2021 and 2022, the Trust helped establish a working group together with community representatives, to secure The Sidney Cooper Gallery, adjacent to Westgate Hall, as a Community Asset. This working group met regularly, identified funding opportunities, launched conversations with Canterbury City Council Officers and Councilors. The Trust made an application to register this Grade II former school of art and birthplace of Canterbury born and renowned 19th century landscape artist, Sidney Cooper, listed as a Community Asset. The long-term aim is to secure the building as a creative venue for Canterbury's communities. Conversations have continued throughout 2023 and, together with CCC, the working group is in the process of securing a feasibility study to identify the best way to use the building while also exploring the best suited governance structure for the project.
- Collaboration with Canterbury City Council -- The Community Halls and Venues Project
This project aims at supporting Canterbury Districts' community spaces. Community venues are acknowledged as key to community life and cohesion. Building on the first meeting at the Hall during the pandemic in August 2020, this project has been re-evaluating venues' governance, business plans and income streams to help them develop financial resilience as well as reviewing volunteer recruitment and engagement.
The Trust will explore the potential of innovative funding based on cross-sector partnerships presented as blended finance options.
- Canterbury Wine Circuit (November 2022)
Following the second Canterbury Wine Festival postponement in 2021 (for a second year on account of Government pandemic restrictions), the Trust built on the success the Wine Circuit event. This event helped the Trust retain its connections with the local wine industry, continue boosting Canterbury's reputation as the spiritual home of Kent wine and momentum towards the 2023 Canterbury Wine Festival.
- The Trust's fifth International Women's Day Event, March 2022
Ruth Simpson, co-founder of Simpsons Wine Estate, was the Trust's guest speaker. Over 75 participants from across Kent joined us.
- 'Exploring Kent as a place of exchange exploring ideas of travel, trade and settlement', April 2022
The Trust re-connected with collaborators from the local universities, including Professor Mark Connelly, Head of The School of History at University of Kent, who had collaborated with us and the Heritage Lottery during the First World War commemoration events (2014-18).
- The University of Kent Student Experience Team and cross-faculty booked
Westgate Hall once again, having postponed throughout 2020/2021, resulting in 10 days of graduation events at the Hall during 2022.
- The Trust broadened its partnerships including working with Kent Kidney Patient
Association anniversary event; a new 'Drag Bingo' event with Canterbury-based drag artists, which is so popular it is now booking with us up to 2025; an Oast Quilters Show; Screen South Summer Camp for young people and Kent Invicta Chamber of Commerce Networking.
With the third quarter of 2022 we also welcomed our first weekend-long Hare Krishna event, starting with sunrise meditation and including a procession down Canterbury High Street; visitors were local and from overseas.
Our long-standing CD and Record Fair, Postcard and Collectors and Kilo Sale secondhand clothing events resumed and continued to the end of 2022.
Social Enterprise Kent (SEK) held its Breaking Barriers Employment project working with Afghan men and women and supporting them into training and employment. The Hall hosted Oktoberfest, which had been postponed since the pandemic, and Canterbury Festival returned for its two-week run with pre-pandemic capacity of 220 seated auditorium style with live music and performances entertaining family, schools and residents.
Marketing and BeeBee Communications (Bryony Bishop)
The Trust's marketing consultancy, BeeBee Communications, expanded our social media presence so our communities remained connected to the Trust/Hall.
The Trust also continued a proactive marketing plan which has successfully increased footfall, included
- Lead generation emails to reach new businesses to drive future sales.
- Diversifying how we post content about the Trust/ Hall and events, using images, film and stories,we have kept Westgate Hall alive in the mind of our established audiences and helped build new ones.
- Launching our new mailing list with over 450 registered users - which continues to grow.
- Ensuring the website for the Hall is updated with all events.
- Tracking and analysing digital activity, SEO, visual content, refreshed photography, together with google business enhancements, we have increased reach and engagement.
- Engaging and strengthening sponsorships for key events (Westgate Hall Market, Canterbury Wine Festival, Canterbury Festival) with related pitch documents.
Plans for future periods
Entering 2022
The rapid spread of the Omicron variant from late Autumn 2021, with the government implementing its Covid Plan B on 8 December 2021 to manage pressure on the NHS, and mandatory face masks, undermined the emerging social and business confidence and the belief that life was gradually returning to the way it was before March 2020. End of year events were cancelled and with this our gradually reviving income stream ended and Trust ambitions to begin rebuilding its finances through events rather than be be dependent on Government and Local Authority grants faded.
However, despite these uncertainties and disruptions, the Trust/Hall was still afloat. We had made the most of the unexpected fallow periods of lockdowns to explore and action tasks we had too often not had time to take care of, whether as part of governance, operations, marketing or community engagement.
The Hall had also fullfilled its civic duties, as defined by the conditions of its lease, by remaining accessible to NHS blood donations, as a Civil Emergency Centre, and for national, county and local elections.
In fact, the challenge facing the Trust/Hall to be financially self-sustaining encouraged us to consider Westgate Hall and collaboration with our communities in new ways. Among these are how:
- The scale of the Hall made it the leading venue in the area for socially distanced events.
- Our refreshed website and social media presence encouraged dynamic interaction with Hall users and new markets and maintained our community presence.
- Our updated audio-visual equipment allowed us to meet the new communication needs of Hall communities.
- We experimented with new business opportunities such as hiring out the Hall as a film set, a result of an unexpected approach in March by Magneta TV (a subsidiary of Arte, a French television company), to use the Hall as the setting for an interview.
We will build on these achievements in 2022 by
- Targeting income enhancing events to rebuild the Trust/Hall's financial stability following Covid.
- Reviewing the Trust/Hall's brand, audiences and communications strategy.
- Developing and promoting the Trust's programmes, e.g., the Canterbury Wine Circuit and Festival, International Women's Day.
- Telling the stories of the Trust's community engagement despite the pandemic (e.g., the young Kickstarter apprentices; Bemix charity working with people with learning disabilities; NHS blood donations).
- Expanding the number of festivals, markets and music events using the Hall.
- Strengthening the community halls and venue network and relationships with other events spaces and producers in Canterbury (e.g., the Gulbenkian, the Canterbury Fesival).
- Developing the Armed Forces' historic connections with the Hall by joining the Armed Forces Covenant.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 22 November 2023 and signed on behalf of the board of trustees by:
Imogen Beatrice Morizet
Trustee
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Westgate Community Trust (Canterbury) Ltd
Year ended 31 December 2022
I report to the trustees on my examination of the financial statements of Westgate Community Trust (Canterbury) Ltd ('the charity') for the year ended 31 December 2022.
Responsibilities and basis of report
As the trustees of the company (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 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 the 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 the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), 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 charity as required by section 386 of the 2006 Act; or
2. the financial statements do not accord with those records; or
3. 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
4. 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 accounts to be reached.
Thomas Saltmer Burgess Hodgson LLP
Independent Examiner
Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Statement of Financial Activities
(including income and expenditure account)
Year ended 31 December 2022
2022
2021
Unrestricted funds
Total funds
Total funds
Note
£
£
£
Income and endowments
Donations and legacies
5
16,174
16,174
60,075
Charitable activities
6
255,238
255,238
63,846
Investment income
7
10
10
---------
---------
---------
Total income
271,422
271,422
123,921
---------
---------
---------
Expenditure
Expenditure on charitable activities
8
326,928
326,928
160,070
---------
---------
---------
Total expenditure
326,928
326,928
160,070
---------
---------
---------
---------
---------
---------
Net expenditure and net movement in funds
( 55,506)
( 55,506)
( 36,149)
---------
---------
---------
Reconciliation of funds
Total funds brought forward
565,391
565,391
601,540
---------
---------
---------
Total funds carried forward
509,885
509,885
565,391
---------
---------
---------
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Statement of Financial Position
31 December 2022
2022
2021
Note
£
£
£
Fixed assets
Tangible fixed assets
16
575,703
603,610
Current assets
Stocks
17
2,081
2,081
Debtors
18
9,867
8,592
Cash at bank and in hand
838
11,570
--------
--------
12,786
22,243
Creditors: amounts falling due within one year
19
41,767
16,989
--------
--------
Net current liabilities
( 28,981)
5,254
---------
---------
Total assets less current liabilities
546,722
608,864
Creditors: amounts falling due after more than one year
20
36,837
43,473
---------
---------
Net assets
509,885
565,391
---------
---------
Funds of the charity
Unrestricted funds
509,885
565,391
---------
---------
Total charity funds
24
509,885
565,391
---------
---------
For the year ending 31 December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Statement of Financial Position (continued)
31 December 2022
These financial statements were approved by the board of trustees and authorised for issue on 22 November 2023 , and are signed on behalf of the board by:
Imogen Beatrice Morizet
Trustee
Westgate Community Trust (Canterbury) Ltd
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 December 2022
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Westgate Hall, Westgate Hall Road, Canterbury, Kent, CT1 2BT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings
-
5% reducing balance
Equipment
-
20% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received. Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Limited by guarantee
The company is limited by guarantee. Under the terms of the Memorandum of Association all members (including those who have ceased to be a member in the previous year) are required to contribute a maximum of £1 each to the assets of the company on winding up.
5. Donations and legacies
Unrestricted Funds
Total Funds 2022
Unrestricted Funds
Total Funds 2021
£
£
£
£
Grants
Government grant income
16,174
16,174
60,075
60,075
--------
--------
--------
--------
6. Charitable activities
Unrestricted Funds
Total Funds 2022
Unrestricted Funds
Total Funds 2021
£
£
£
£
Events income
97,827
97,827
48,176
48,176
Bar and cafe income
146,141
146,141
9,042
9,042
Other income
11,270
11,270
6,628
6,628
---------
---------
--------
--------
255,238
255,238
63,846
63,846
---------
---------
--------
--------
7. Investment income
Unrestricted Funds
Total Funds 2022
Unrestricted Funds
Total Funds 2021
£
£
£
£
Bank interest receivable
10
10
----
----
----
----
8. Expenditure on charitable activities by fund type
Unrestricted Funds
Total Funds 2022
Unrestricted Funds
Total Funds 2021
£
£
£
£
Charitable activities
215,293
215,293
78,597
78,597
Support costs
111,635
111,635
81,473
81,473
---------
---------
---------
---------
326,928
326,928
160,070
160,070
---------
---------
---------
---------
9. Analysis of direct expenditure on charitable activities
2022
2021
£
£
Cost of events
135,190
14,264
Wages and salaries
64,497
50,416
Pension costs
4,654
2,689
Uniform
38
Advertising and marketing
10,914
11,228
---------
--------
Total
215,293
78,597
---------
--------
10. Analysis of support costs
2022
2021
£
£
Wages and salaries
20,798
4,176
Rates, water, light and heat
12,109
7,992
Repairs, maintenance and insurance
10,611
9,726
Telephone, office and stationery
5,688
4,025
Waste collection
1,891
766
Depreciation
30,814
30,325
Cleaning, equipment and sundry
10,087
6,514
Travel
841
290
Licenses
1,809
1,079
Kitchen equipment and supplies
734
2,675
--------
--------
Total
95,382
67,568
--------
--------
11. Analysis of governance costs
2022
2021
£
£
Wages and salaries
8,626
8,705
Accountancy fees
591
671
Independent examiner fees
700
675
Bookkeeping
2,415
2,273
Bank charges
3,921
1,581
--------
--------
Total
16,253
13,905
--------
--------
12. Net expenditure
Net expenditure is stated after charging/(crediting):
2022
2021
£
£
Depreciation of tangible fixed assets
30,814
30,325
--------
--------
13. Independent examination fees
2022
2021
£
£
Fees payable to the independent examiner for:
Independent examination of the financial statements
700
700
Other financial services
700
700
-------
-------
1,400
1,400
-------
-------
14. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2022
2021
£
£
Wages and salaries
93,921
63,297
Employer contributions to pension plans
4,654
2,689
--------
--------
98,575
65,986
--------
--------
The average head count of employees during the year was 4 (2021: 4 ). The average number of full-time equivalent employees during the year is analysed as follows:
2022
2021
No.
No.
Number of staff
4
4
----
----
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
15. Trustee remuneration and expenses
No trustees received remuneration during the current or previous year.
During the year trustees were reimbursed expenses of £0 (2021: £0).
16. Tangible fixed assets
Land and buildings
Equipment
Total
£
£
£
Cost
At 1 January 2022
863,164
1,614
864,778
Additions
2,907
2,907
---------
-------
---------
At 31 December 2022
863,164
4,521
867,685
---------
-------
---------
Depreciation
At 1 January 2022
260,342
826
261,168
Charge for the year
30,141
673
30,814
---------
-------
---------
At 31 December 2022
290,483
1,499
291,982
---------
-------
---------
Carrying amount
At 31 December 2022
572,681
3,022
575,703
---------
-------
---------
At 31 December 2021
602,822
788
603,610
---------
-------
---------
17. Stocks
2022
2021
£
£
Raw materials and consumables
2,081
2,081
-------
-------
18. Debtors
2022
2021
£
£
Trade debtors
9,867
8,592
-------
-------
19. Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
17,655
3,221
Accruals and deferred income
1,400
1,400
Social security and other taxes
21,980
12,368
Obligations under finance leases and hire purchase contracts
732
--------
--------
41,767
16,989
--------
--------
20. Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
36,837
43,473
--------
--------
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2022
2021
£
£
Not later than 1 year
732
----
----
22. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £ 4,654 (2021: £ 2,689 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2022
2021
£
£
Recognised in income from donations and legacies:
Government grants income
16,174
60,075
--------
--------
24. Analysis of charitable funds
Unrestricted funds
At 1 January 2022
Income
Expenditure
At 31 December 2022
£
£
£
£
General funds
565,391
271,422
(326,928)
509,885
---------
---------
---------
---------
At 1 January 2021
Income
Expenditure
At 31 December 2021
£
£
£
£
General funds
601,540
123,921
(160,070)
565,391
---------
---------
---------
---------
25. Analysis of net assets between funds
Unrestricted Funds
Total Funds 2022
£
£
Tangible fixed assets
575,703
575,703
Current assets
12,786
12,786
Creditors less than 1 year
(41,767)
(41,767)
Creditors greater than 1 year
(36,837)
(36,837)
---------
---------
Net assets
509,885
509,885
---------
---------
Unrestricted Funds
Total Funds 2021
£
£
Tangible fixed assets
603,610
603,610
Current assets
22,243
22,243
Creditors less than 1 year
(16,989)
(16,989)
Creditors greater than 1 year
(43,473)
(43,473)
---------
---------
Net assets
565,391
565,391
---------
---------