To lead a community such as Pilsdon at Malling, and to meet the almost daily challenges that we face, requires Community Members, Volunteers and Trustees to have both great commitment and a willingness to make sacrifices in the service of people coming to our door.
On the 1 October 2024 the Rev. Joss Walker resigned her position as Guardian to subsequently take on the role of Priest in Charge of Fawkham, Hartley and Longfield, this prompted a period of uncertainty and adjustment. Due to the likely challenges ahead, another Community Member felt it would be a good time for her to also leave, leaving just one Community Member in post. Recruiting new Members, particularly Guardians, can be a difficult and drawn out process, and as such the Trustees recognised that the following months would be challenging for both the remaining Community Member and Guests. A decision was made to support as many Guests, who were ready to move on, to find permanent housing and to not accept any further Guests until the new Guardian was in post. However we were truly blessed in that by the end of January 2024, the Rev James McKeran had agreed to become the new Guardian and would take up the post at the end of May 2024.
As with all old buildings, keeping the fabric of the buildings in a good state of repair is both costly and ongoing. Planned works included further upgrades to the electrical system, fire alarm system and installing fire breaks within the cottage. To help address our rising energy costs, we improved the insulation throughout the main house and cottages. Unfortunately we had a few unexpected items including repairing the render on the chapel wall, which had suffered large cracks, and rebuilding an area of collapse in our boundary wall. Work to the latter was carried out by Rev Stewart and Sally Biggs, who very generously provided their labour for free.
We continue to live as self-sufficiently as possible, the gardens continued to provide an abundance of fruit and vegetables. Our sheep have provided meat, although we are now considering whether keeping livestock is cost effective, particularly as the number of vegetarians sitting round the table is increasing. Avian flu restrictions were lifted in April 2024, it was good to see the chickens geese and ducks out and about again.
We have been able to host a number of events in the Barn Chapel including Bazaar, Music at Malling and our own Art Exhibition, which were all well received by the local communities.
We were so very sorry to see Sister Mary Owen step down because of ill health. She had been our secretary for many years and her subsequent death was received with much sadness. Sister Mary John also sadly died on the 1 May 2024, Sister Mary John was one of the founding members of Pilsdon at Malling. Her knowledge, experience and wise council is sorely missed.
I am grateful for the support given by my fellow Trustees and the Community Members for their commitment to the work of the Pilsdon at Malling Community.
The trustees present their annual report and financial statements for the year ended 31 March 2024.
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 Memorandum and Articles of Association, 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's objects are for the public benefit:
a) for the relief of financial need and the relief of sickness and the preservation and protection of good physical and mental health by offering shelter, hospitality and spiritual refreshments to those who by reason of poverty, disability, mental or spiritual incapacity or inability to mange their own affairs are in need of such refuge without regard to gender, race or creed.
b) for the advancement of the Christian Religion by the formation and maintenance of a community of people who from time to time will endeavour to live together as one household in order to welcome people in need and be united in love and prayer according to the precepts of the Christian Gospels.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Directors (Trustees) are responsible for the strategic direction and policy of the Charity and met four times during the year to discuss these and receive written reports from the Guardian and from the Honorary Treasurer.
We have a risk register in place and the Trustees formally review this annually in November. We have been developing an emergency and business continuity plan, which we anticipate developing further in the coming year.
In addition to routine day to day repairs and maintenance we continue to carry out works identified in the Quinquennial Report. As part of our Health and Safety improvements, we have been carrying out a programme of fire safety improvement works, such as the installation of fire blocks and in light of the increasing energy costs, we have been improving our insultation.
Throughout the year, the Guardian kept the Trustees updated on Community life. We are very fortunate to be able to produce much of our own food, which not only helps to reduce our costs, but ensures that Community Members and Guests can eat healthily.
The Trustees consider that the Charity has sufficient funds and maintained reserves at the end of the reporting period to be able to continue operating and providing a beneficial service to the community in line with the Charity's objectives.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. The level of reserves has been maintained throughout the year.
The Community's cash reserves are held in Charities Official Investment Funds (COIF). These are secure and offer easy access to funds when required
The Trustees confirm that they have carried out a review of the major risks that the charity presently faces, and have considered the necessary procedures to minimise any potential impact should those risks materialise. These include the identification and mitigation of all perceived risk of physical accident which could harm Community Members, Guests, Trustees, the general public or the fabric of the Community. Financial risks are dealt with elsewhere in this report and include the risk that the company might not be able to meet its liabilities as they fall due, and in the future its ability to pay the interest and repay the principal on any loans required to develop operations in the future. However, the Trustees recognise that the review of the major risks that the charity faces is a continuing process and have instigated ongoing reviews to ensure and potential impacts that may arise are minimised or mitigated.
The Charity is governed by its Memorandum & Articles of Association, which acts as its Constitution.
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:
The Trustees are responsible for selecting and recruiting suitably qualified Trustees.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The Guardian is responsible for the day to day management of the Community in consultation with the other Community Members, and taking advice as appropriate from Trustees and professional advisors. Regular budgetary control accounts are submitted to meetings of the Trustees.
The Council (Trustees/Directors) meet at least three times each year to determine policy, review performance and policies to ensure that the ethos of the Community is maintained, monitor financial matters and make key decisions.
Contributions are made from Community funds within a scale authorised by the Trustees towards the provision of retirement pensions arranged by full time community members.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Pilsdon at Malling Community (the charity) for the year ended 31 March 2024.
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.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The Pilsdon at Malling Community is a private company limited by guarantee incorporated in England and Wales. The registered office is 27 Water Lane, West Malling, Kent, ME19 6HH.
The financial statements have been prepared in accordance with the charity's Memoranum and Articles of Association, 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 £1.
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.
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 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.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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 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, 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 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.
The Guardian benefits from being a member of the Church Of England defined benefit pension scheme rather than the charity's defined contribution pension scheme (Nest).
In the application of the charity’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.
Donations
Charitable activities
Housing benefit and guest rent
Investment income
Community members
Rent and council tax
Utilities
Provisions and household expenses
Maintenance
Garden and livestock
Transport and travel
Amenities
Chapel expenses
The average monthly number of employees during the year was:
There were no disclosable related party transactions during the year (2023 - none).