The trustees present their annual report and financial statements for the year ended 31 March 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the trust's Memorandum and Articles of Association dated 9 September 2009, 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)” (as amended for accounting periods commencing from 1 January 2016).
The trust's objects are to further or benefit the residents of Exeter and in particular the neighbourhood of St. David's without distinction of gender, sexual orientation, race or of political, religious or other opinions by associating together with the said residents and the local authorities, voluntary and 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. There has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
The activity of the charity is that of the running and maintenance of the Exeter Community Centre at 17 St. Davids Hill, Exeter in furtherance of its objectives as detailed above.
The trust's policy is to consult and discuss with employees and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins, meetings and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the centre's performance.
May 2022 saw the official closure of our National Lottery Heritage Fund grant, with evaluations complete. The independent evaluations of both ‘Our Big Project’ and the All’s Well’ arts/wellbeing project showed a steady increase by 10% in the numbers of people coming into the Centre. Feedback from those surveyed showed how much they valued particularly the welcoming ambience of the Centre and its friendly, approachable staff. This increase in footfall was most welcome as 2021/22 had seen a big drop in numbers attending the Centre as well as a concurrent drop in hire income as more and more people were meeting virtually on Zoom and others were reluctant to leave home to attend classes or social activities.
The end of the National Lottery grant also marked the end of 10 years since the Centre opened as a community trust under local ownership – an asset transfer by Devon County Council. It was time for us to reflect, as founding trustees, on the aptness of the Calvin Coolidge quote on our website:
‘Nothing in this world can take the place of persistence…..Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.’
It was time this year to stand back and reflect on the hard work and determination of the founding trustees and our determination to keep the Centre as a hub of community life in St David’s when so many other facilities and services – post office, local shop, pubs – had closed. We celebrated the achievement of trustees, other local people and community groups and the funders who supported our Vision. We are especially grateful to The Social Investment Business who have supported us from the very beginning with a substantial grant and loan. Their officer and Board’s understanding of our difficulties during first structural and rot issues and then the pandemic has been instrumental in keeping us afloat during the hard times.
The return of hirings at the Centre in 2022 was initially very slow, with our income down by a third compared to pre-pandemic levels. Following a refresh of our promotional booklet and increased social media activity – as well as a national slow return to in-person meetings – our income has increased and by March 2023 was 20% off pre-pandemic levels. We were also able to line our walls with the heritage panels created to celebrate the local history and heritage information that had been gathered and archived by local people in Our Big Project. The archive of the information is now available on our website, on panels and on touchscreen in the Centre.
This year we took on the ownership from BT of the 2 redundant K6 phone boxes outside the Centre. These had suffered over many years from neglect and vandalism and needed a complete overhaul. One day, in the middle of our fundraising efforts to reglaze and repaint the phone boxes, a contractor from BT turned up to begin the work. How lucky was that – the first contractor maintenance of the boxes in 20 years and just at the right time! By not having to use the funds for repairing the boxes, we will be able to purchase a defibrillator for one of the boxes and will consult the community on the usage of the second phone box .
The community use of our Community Kitchen, created last year has increased, with regular cookery training classes being organised by voluntary groups and social services working with vulnerable people.
As always, I am grateful for the commitment of staff and volunteers at the Centre. This year saw the resignation of trustee AH and we wish him all happiness with his new young family. We continue to seek more trustees to the board. Longstanding trustees continue to support me and the Centre with commitment and humour – as well as with persistence and determination. Hopefully, after 10 years of turbulence, we now enter some years of consolidation and ‘clear water’, where we can continue to have an impact bringing together communities in and around Exeter.
Cash Flow
The current account bank balance at the end of March 2023 was £54k with the deposit account at £195k which is broadly in line with the balance at the previous year end.
Budgets/SOFA
Income
Sessional hire income has continued to grow in 2023 after Covid-19 and lease income has also continued to improve. The total grants of £78.2k in the year is as follows: National Heritage £76k & Digital Inclusion £2.2k.
Expenditure
SIB interest continued to be charged at an interest rate of 0.5% to March 2023. Grant expenditure is not technically operational so should be monitored against the grant income.
Balance sheet
The SIB Loan has decreased by £19k due to a capital repayments made (balance £930k at end of Mar 2023). No property improvements were made during the year.
Trade debtors
This figure has increased by £3.8k to £8.1k when compared to March 2022 which is due to the increase within customer invoicing due to centre being open more.
Grant Income/Expenditure (please refer to the departmental report for income/expenditure breakdown)
The majority of the income and expenditure was on ‘The Big Project’ and a total of £76k was received in the year from HLF.
Impairments of freehold property
As part of the process to refinance the loans provided by the Social Investment Business Bank the trust property was independently valued by Stratton Creber Commercial in January 2023. A fair value of the property was concluded to be £1.5m. These accounts reflect an impairment of £488,553 to reduce the carrying value of the freehold property in the accounts to £1.5m.
Though initially disappointed with the valuation the trustees were also mindful that they needed to spend significant amounts to begin with to make the property fit for purpose and that the current property market, especially office related accommodation, was depressed. In addition the valuation assumed a sale to a similar community or charitable provider and continued community and charitable based use.
Risk management
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity plans to continue the activities outlined above in the forthcoming years. In particular to remain the centre for the local community where individuals and groups can make the most of the wide variety of spaces and activities offered.
The trust 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.
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:
Recruitment and appointment of trustees
Under the requirements of the Articles of Association, trustees are elected for a period of three years after which they must be re-elected at the next Annual General Meeting. Trustees annually review the period of service.
The board of trustees regularly discusses the recruitment of new trustees for their experience, empathy and knowledge of the charity, and to keep the skills and composition of the trustee body as a whole and succession planning under review.
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed by the trustees from the charity are set out in note 8 to the financial statements.
Organisational structure
The charity is administered by a board of directors who are also trustees. The day to day running of the charity is overseen by the Centre Manager, who reports to the trustees.
The trustees met for business meetings in December, March, May, July and September.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the trust for the year ended 31 March 2023, which are set out on pages 6 to 20.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the financial statements under section 145 of the 2011 Act;
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Exceptional impairment losses
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Exeter Community Centre Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 St Davids Hill, Exeter, Devon, EX4 3RG.
The accounts have been prepared in accordance with the trust'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)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.
The trust 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 trust. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts are prepared on a going concern basis which means that the charity can pay its debts as they fall due for the next twelve months.
The charity is reliant on the continued positive support of its only lender, Futurebuilders England who have being extremely supportive of the project. In the last few years Futurebuilders England have provided a temporary restructuring of the loan interest payable and a capital repayment holiday. This support is still ongoing.
The Trustees of the Charity work extremely closely with Futurebuilders England and have no reason to question their continued support to the project and hence feel it is appropriate to prepare the accounts on a going concern basis.
The staff and trustees are working very hard to steer the Trust through these very uncertain times and believe that with the continued support of key stakeholders the Trust will survive and prosper.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the trust 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.
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:
- when donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods; and
- when donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income;
the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business and net of discounts.
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on the accruals basis and includes irrecoverable VAT. Expenditure is allocated to activities on the direct usage basis.
Costs incurred wholly or mainly in support of generating funds, or in support on the objects of the charity and being an integral part of the cost of carry out those activities, are included within Charitable Expenditure as appropriate.
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 trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The trust 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 trust's balance sheet when the trust 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, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade 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 trust’s contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Grants receivable
Grants receivable - CJRS
Grants receivable other
Room hire
Lease & service charges
Rates and water
Security and facilities
Insurance
Publicity and advertising
Telephone
Heat and light
Cleaning and hygiene
Printing, postage, stationery and computer
Consultancy and subcontractors
Repairs and maintenance
Subscriptions
Motor and travelling
Bank charges and loan interest
Sundries
Accountancy and bookkeeping
Governance
Governance costs includes payments to the independent examiners of £2,903 (2022- £2,060) for independent examiners fees.
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed for mileage.
The average monthly number of employees during the year was:
Exceptional impairment losses
As part of the process to refinance the loans provided by the Social Investment Business Bank the trust property was independently valued by Stratton Creber Commercial in January 2023. A fair value of the property was concluded to be £1.5m. These accounts reflect an impairment of £488,553 to reduce the carrying value in the accounts to £1.5m.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
As part of the process to refinance the loans provided by the Social Investment Business Bank the trust property was independently valued by Stratton Creber Commercial in January 2023. A fair value of the property was concluded to be £1.5m. These accounts reflect an impairment of £488,553 to reduce the carrying value in the accounts to £1.5m.
More information on the impairment arising in the year is given in notes 10 and 12.
The long-term loans are secured by fixed charges over the property in which the charity operates from.
Bank loans are amounts borrowed from the Social Investment Business (Community Builders Fund) for the refurbishment of the Centre. The bank is being very supportive and only charging a minimal interest rate and has agreed a lower repayment of £2,000 per month, which is significantly less than its original contracted amount. The Trustees and the bank are working on the basis that the loans will need to be refinanced in 2026.
SIB funds are for the refurbishment of the Centre and working capital.
Peoples Health Trust (PHT) funds are for 'Past Present Future' community development project for pottery equipment and the creation of a sensory garden.
Grass Roots grant and HLF grant are for development of third floor.
Postcode Lottery grant is for development of veg boxes garden.
Moto grant has been granted towards the refurbishment of the building.
The Co-Op grant is for restoring third floor.
At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The key management personnel of the charity comprise the managers. The total remuneration of key management personnel during the period was: