The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2023. The Trustees, who are also directors of the charity for the purposes of the Companies Act, present their annual report and the financial statements for the year ended 31 December 2023. The trustees have prepared the financial statements in accordance with applicable law and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) (Charities SORP (FRS102)).
Structure, Governance and Management
Whitehaven Community Trust Limited (known hereafter as WCT), was incorporated on the 12 December 1996 and is constituted as a company limited by guarantee, and is therefore governed by a memorandum and articles of association. The company was registered as a charity with the Charity Commission for England and Wales on 20 January 1997.
Recruitment and appointment of trustees
All directors of the company are also trustees of the charity and there are no other trustees. All of the trustees named on page 1 served from the date of appointment until the year end. Other trustees that were appointed and resigned during the year have also been disclosed. The Board has the power to appoint additional trustees as it considers fit to do so.
Trustees Selection and Experience
The Trustees are from a variety of relevant professional business and charitable background with a number having experience in the charity field. The composition of the trustees’ board and their experience and skills are regularly reviewed, to ensure the number and balance of the trustees remains appropriate.
Organisational Structure
The trustees meet quarterly to review and manage the operation of the WCT. The WCT Team now includes 5 directors, 7 full time staff and 4 part time staff. One of the directors is a financial director who maintains the charity’s financial systems. The WCT Team meet quarterly to review and plan activities.
Risk Management
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risks.
Aims, Objectives and Public Benefit Activities
The charity and trustees aim to continue to provide a high quality service to the community. The Trust is seeking alternative funding for the Homeless hostels to provide a public service. In shaping our objectives for the year and planning our activities the trustees have considered the Charity Commission guidance on public benefit including the guidance ‘public benefit: running a charity
Achievements and Performance
Whitehaven Community Trust is a diverse and flexible charitable organisation that has been delivering socially relevant projects for the benefit of the local community for the past thirty four years. We are committed to tackling social disadvantage and reducing the impact associated with various related issues, including homelessness, poverty, and health and wellbeing, throughout the district of Copeland and beyond.
Over the years our core areas of expertise with young people aged 16 - 24 years has emerged. The Trust's flagship project, the Market Hall Cafe, which opened in 1993, provided training and work experience for 715 young people during its 20 years of operation. Building on the experience gained with the young people in the cafe and responding to the lack of supported accommodation in the Copeland area, the trust opened its first supported housing project, Bakewell House, in 1998, offering a stable, secure and comfortable living environment for 16 - 24 year olds, originally with 24 hour support but later reduced due to funding cut backs. Due to high demand for places a second young person's homeless hostel, 1 Lowther Street, opened in 2005. A further property, Smith House, was secured in 2011 with funding from Francis C Scott Trust and Copeland Community Fund. This was renovated and converted into four studio trainer flats known as our 'Move On Project' to benefit the young people of our Homeless Hostels. Over 700 young people were supported in the hostels until changes to the contract with Cumbria County Council led to the Trust withdrawing from the tender process in June 2016 and the subsequent closure of the hostels.
During the 2016/17 year the Trust worked tirelessly to secure alternative funding to re-open the Hostels. Bakewell House re-opened in October 2017 as a "Mother and Baby" Unit and Lowther Street re-opened in December 2017 for homeless 16 - 24 year olds.
The Trust also owns the Senhouse Centre - "A place for Healthy Living" which opened in May 2000 with aim of promoting healthy living in the community. The centre has therapists, counsellors and community groups using the facilities who supply a range of treatments and services. The rental income from this enables the Trust to give free room hire to groups and counsellors offering free services to the local community. The centre provides employment for two part time staff, and one volunteer. For 7 years the Trust successfully ran the wellbeing programme from the Senhouse Centre, which was funded by The Big Lottery and provided free services in confidential listening, young person's anger and stress management, stress awareness workshops, support groups, self-esteem and self-confidence workshops..
The site of the old Whitehaven Pottery is now the home of the Whitehaven Community Trust's main office. Previously purchased by the Trust and used as a commercial pottery offering bespoke ceramics to order, the building was refurbished in 2015 when the Trust relocated its main offices from the Market Hall. Situated in the town's market place, the building also offers affordable town centre office space for other local businesses and community groups.
Transactions and Financial Position
The statement of financial activities shows net expenditure for the year of £73,014 and at the year end, the reserves stand at £1,614,381 in total. Included within the financial statements is the designated reserve for the Freehold and Leasehold properties which are included at valuation. It has been necessary to create the reserve in order to give a true representation of the level of reserves available for the charity use to meet its day to day charitable activities. The freehold and leasehold property reserve is £1,345,312..
Tangible Fixed Assets for use by the Charity
Details of movements in fixed assets are set out in note 11 to the accounts. The trustees have previously revalued various properties owned by the charity which led to a revaluation reserve of £573,231.
Investment Policy and Returns
Any short term surplus cash is deposited with National Westminster Bank Plc. No medium or long term investments are held by the company.
Reserves
The trustees consider the current level of reserves as adequate, however when the freehold and leasehold property reserve and revaluation reserves are excluded, reserves stand at £269,069. Future delivery of activities is dependent upon receiving funding, however the charity has a good relationship with its funding agents and the trustees believe funding is expected to be maintained.
Future Plans
We have been working with Lloyds Foundation on a Trustee audit and a strategic plan for the future of the Trust, this should be completed in 2023. The directors have decided during 2023 that the trust will consolidate its position and projects with no expansion or new developments,
The engagement of our professional fundraiser will be continued.
We will continue to support staff with quality training and development.
We aim to provide our service users and clients with a quality service across all our projects.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Whitehaven Community Trust Limited (the charitable company) for the year ended 31 December 2023.
As the trustees of the charitable 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 financial statements of the charitable 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 charitable company’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.
Since the charitable company’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 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 that in any material respect:
accounting records were not kept in respect of the charitable company 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.
Investments
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Investments
Whitehaven Community Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 13 - 15 Market Place, Whitehaven, Cumbria, CA28 7JB.
The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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 charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
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 are allocated on the portion of the asset’s use.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Tangible fixed assets costing £500 or more 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 charitable company 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 charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The charitable company operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants receivable
CBC - Housing benefit
Room hire and other
Training costs
Rent and rates
Light, heat and power
Insurance
Repairs and renewals
Telephone
Printing, postage and stationary
Security and other costs
Legal and professional fees
Bank charges
Other governance costs
None of the trustees (or any persons connected with them) received any remuneration, expenses or other benefits from the charitable company during the year.
The average monthly number of employees during the year was:
11 (2022 - 11) of the above employees participated in the Defined Contributions Pension Scheme.
Contributions to the employee pension scheme for the year totalled £4,481 (2022 - £3,150).
The charitable company is a registered charity and is therefore exempt from taxation.
The carrying value of land included in land and buildings comprises:
The charity owns the following freehold properties:
(a) Senhouse Centre, 3 Senhouse Street, Whitehaven
This property was acquired in 1999 at a cost of £60,000, for use as a healthy living centre. Refurbishment work was carried out and in 2003 the property was revalued at £300,000. Since then further work has been carried out on the property and as at 31 December 2023 the net book value is £340,670.
(b) 1 Lowther Street, Whitehaven
This property was acquired in 2002 at a cost of £90,000, for the use as a hostel for teenage pregnancies and to provide support for young women through all stages of pregnancy. Renovation work has been carried out and in 2004 the property was revalued at £260,000. Since then further work has been carried out on the property and at 31 December 2023 the net book value is £222,576.
(c) Smith House, 14/14A Church Street, Whitehaven
This property was acquired in 2010 at a cost of £74,942, for the use as part of the "Move On Project" to help young people move out of hostels and take a step towards unsupported living. Renovation work has been carried out on the property to convert it into four flats. As at 31 December 2023 the net book value is £240,466.
(d) Bakewell House, 41 Lowther Street, Whitehaven
This property was acquired in 1997 with funds from the Big Lottery Fund for use as a hostel. The Fund previously held an interest in the property, however the liability period has now ended and the Big Lottery Fund have confirmed that they no longer have an interest in the property and there is no restriction on the title or any reference to a legal charge. The Trust is now free to deal with the property without requiring any consent from the Big Lottery Fund and during 2018 it carried out improvements to the property. As at 31 December 2023 the net book value is £202,100.
(e) Whitehaven Pottery, 13-15 Market Place, Whitehaven
This property was acquired in 2001 with funds from the New Opportunities Fund, who held an interest in the property. It includes a pottery workshop, a shop and offices. The New Opportunities Fund have confirmed that they no longer have an interest in the property and there is no restriction on the title or any reference to a legal charge. The Trust is now free to deal with the property without requiring any consent from the New Opportunities Fund. As at 31 December 2023 the net book value is £339,500.
In addition to the revaluation of the Whitehaven Pottery property this year, during 2003 and 2004 the freehold properties at Senhouse Centre and 1 Lowther Street were revalued by the Trustees and in 2017 the property at Bakewell House was also revalued. The unrealised surplus on revaluation, which surplus primarily reflects a fair value on the properties, is included in the accounts at £573,231 as at 31 December 2023.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The restricted funds are as follows:
Staffing and running costs - Funding was received from multiple donors to help with the staffing and running costs of Bakewell House and Lowther Street which enabled the mother and baby unit and housing provision to carry on running.
Refurbishment and renewals - Funding was received from multiple donors to help with the kitchen refurbishment at Lowther street as well as other repairs and also to purchase items such as beds and furniture.
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.
There were no disclosable related party transactions during the year (2022 - none).