The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Westbourne Hall Community Trust (the charity) 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 governing document, 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)".
a. Policies and objectives
The objects of the charity are to further or benefit the residents of West Kirby and the neighbourhood and other districts the Trustees shall deem appropriate, without distinction of sex, sexual orientation, race, or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary or other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation leisure time occupation with the objective of improving the conditions of life for the residents.
When planning and programming activities for the local residents, the Trustees are mindful of the Charity Commissions guidelines on Public Benefit.
b. Activities for achieving objectives
We aim to continue to provide a welcoming, safe environment for the community, reflecting local needs and activities, encouraging services supporting and contributing to the health and well-being of all ages and abilities.
Westbourne Hall is available for hire by any individual or organisation in accordance with the standard hiring agreement and scale of charges adopted for the year. It is intended that the scale of charges be sufficient to generate enough income to meet the expenditure incurred in providing the hall on a day to day basis, with designated reserves held for planned future maintenance and development projects.
a. Review of activities
Income
The 2022-23 year was the first period not to be significantly impacted by covid-19 since the pandemic started, and income from the hire of the hall was close to returning to pre-covid levels, with £37,090 (2022: £23,377) generated from the hire of the hall in the year. There was no grant income in the year (2022: £12,821).
Increases in hall hire charges have previously been deferred due to covid and the cost of living crisis, but with inflationary pressures and the need to cover costs, the board agreed a revised scale of charges with effect from September 2023, and we hope that hall hire income will continue to increase in the current and future years.
Continuing efforts have also been made to manage costs as much as possible, and the deficit in the year is reduced to £12,127 (2022: £15,061), part of which has been funded from designated funds. The board hope to be able to move towards an annual break-even position in the future, with the scale charge increases starting to impact from 2023-24.
Staffing
Our two part-time members of staff, the Hall Manager and the Facilities & Administration Officer, remained highly committed in the year and their efforts in managing the hall and improving the facilities for users were once again very much appreciated by the Board.
Policies and Procedures
In prior years there has been a re-drafting of our Conditions of Hire documentation and we also reviewed our Health and Safety and Computer Security procedures and there is an ongoing overview of policies and procedures to ensure they are fit for purpose.
We continue to monitor our hall charges in order to help ensure that the charity can continue to cover its operating costs in future years.
Marketing
It is an ongoing process to improve our marketing of the hall and its facilities and our staff have worked hard again this year to manage our online and social media presence.
Building Improvement Projects
Further funds have been allocated this year for maintenance and development projects to maintain and improve the facilities for Hall users, of which £2,411 (2022: £4,587) is included within the reported deficit for the year. Transfers have also been made from the maintenance fund to general funds of £15,000.
b. Investment policy and performance
The majority of the funds of the charity are held in cash deposits with two banks, being Unity Trust Bank and COIF Charities Deposit Fund.
Two separate interest bearing deposit accounts have been set up with COIF Charities Deposit Fund to hold certain amounts designated by the Trustees for future Planned Maintenance and Development projects.
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
b. Risk Management
The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems, policies and procedures are in place to mitigate exposure to major risks.
c. Reserves policy
Designated Funds
The balances held in Designated Funds at 31 May 2023 represent specific unrestricted funds set aside for future Planned Maintenance and Development projects, to which funds will be moved appropriately and which may be drawn upon as necessary.
General Funds
The balance of £14,418 in respect of general unrestricted funds represents the remaining amounts retained from past activities as well as any transfers from designated funds. The balance is accumulated so as to be available for use when circumstances require and to cover a sufficient period of expected future expenditure, with the aim being that funds held at the year end will cover between three and six months of expected operational expenditure.
d. Plans for future periods
The board agreed a revised scale of charges with effect from September 2023, with the hope that hall hire income will continue to increase in the current and future years. The board also hope to be able to move towards an annual break-even position in the future.
a. Constitution
The charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 18 May 2010. The charity is governed by its Memorandum and Articles of Association (as amended on 9 March 2013) and is a registered charity number 1151658. Every person who is a member of the company agrees to contribute an amount not exceeding £10 in the event of the charity being wound up. There have been no changes in the objectives since the last annual report.
b. Method of appointment or election of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. 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:
c. Organisational structure and decision making
Westbourne Hall Community Trust is run by a Board of Trustees who have control of the charity, its property and funds. There are up to four First Trustees, elected by the members, and up to four Trustees elected by representatives of user groups. Up to a further four Trustees may also be co-opted for particular projects or expertise.
First Trustees retire in rotation, over a 3 year period, and may be re-elected in accordance with our Articles of Association. User Group & Co-opted Trustees stand down every year but may be re-elected or co-opted in accordance with our Articles of Association. The Board establishes a programme of meetings at the beginning of each year with an average of 5 meetings.
Day to day running of the Hall is by a part-time Manager assisted by a part-time Facilities and Administration Officer and a rota of Community Volunteers.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Westbourne Hall Community Trust (the charity) for the year ended 31 May 2023, which are set out on pages 5 to 13.
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.
Westbourne Hall Community Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Westbourne Hall Community Centre, Westbourne Road, West Kirby, Wirral, CH48 4DQ.
The financial statements have been prepared in accordance with the charity's governing document, 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 is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 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.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of any restricted funds are set out in the notes to the financial statements.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
All resources expended are inclusive of irrecoverable VAT.
Tangible fixed assets are initially measured at cost and subsequently 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 bases:
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.
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 and other short-term liquid investments with original maturities of three months or less.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors 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 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 creditors 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 creditors 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.
Grant income
Hire of premises and other income
Investments
Premises and other direct costs
Bank charges
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Westbourne Hall is held under a 99 year lease from Wirral Borough Council, effective from 13 November 2013.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.