The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply 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)" published in October 2019.
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.
This year has seen the consolidation of our sessional base income and the maintenance of the Tenant base that reflects the ongoing income strategy determined by trustees. Combined income for sessional and tenanted space has increased by 25% and we have been pleased to welcome two new tenants occupying space on the refurbished top floor. The Centre opening on both Saturday and Sunday have proved successful and has added to wider community use.
Continued on-going maintenance of the building remains a high priority. A plan has been put in place to permanently resolve water ingress from valley gutters, anticipated to be carried out over the summer of 2025 The Centre Manager remains constantly vigilant for any signs of re-appearance of dry rot. We carry out regular roof inspections for slipped tiles or missing cement fillet. We have a re-painting programme for the ground floor of the building and a maintenance programme of professional support in the garden to assist the garden volunteers with more technical aspects of the garden's maintenance.
Following the findings from our energy survey last year we made an application for funding to replace our lighting, throughout the building with LED bulbs. The successful application enabled comprehensive replacement of all lighting inside and out with LED bulbs that have had a beneficial carbon reduction and improved lighting and associated running costs.
The original terms of the Community Builders loan stipulated a bullet payment after ten years, which meant that refinancing would need to be sought. The charity engaged a consultant to provide support with financial projections and to advise on negotiations with (Social Investment Business) SIB. These discussions led to an agreement with SIB to repay £350,000, with the remaining balance converted into grant. The trustees are actively securing a mortgage facility to finalize the agreed SIB repayment. We wish to express our appreciation for SIB's continued support and anticipate the satisfactory conclusion of this matter by the end of 2025.
Trustees remain committed to future proofing the Trustee Board. We were pleased to be able to appoint a new trustee with youth and perspectives to enhance deliberations. We continue to have an open invitation to local people to join our board.
As a result of the listed status negotiations on the siting of a heritage interpretation board, for our pair of K6 telephone boxes, became protracted and have required a formal council application process. It is anticipated that permissions will be granted in the early summer to enable completion of the project. This will give information to passers-by about this part of the street heritage of St David's. We are grateful for ward Councillor support in respect of this project
The Book Exchange corner has continued to be popular seeing a significant weekly turnover of books over the course of the last year.
We engaged, yet again, in the Exeter 'Heritage Week' events, with combined tours of the Centre, St David's conducted by a trustee. The tours provide an opportunity to engage with local people as well as tourists, showcasing the St David's area and the Centre.
At the heart of the Centre is the continuing valued commitment of the staff. This is crucial for the effective day to day operation of the Centre. The trustees thank them - and in particular the Centre Manager - for yet another year of their hard work.
In my first year as Chair I wish to sincerely thank the trustees for their support and very longstanding vision and commitment to the Centre which is crucial to its success. It is important that I record trustee and staff thanks to Hannah Reynolds for her most valued years of being chair of the trustees and her willingness to continue as a trustee of the Centre.
Cash Flow
The current account bank balance at the end of March 2025 was £87k with the deposit accounts at £236k compared to £51k & £199k in the previous year.
Budgets/SOFA
Income
Sessional hire income has continued to grow in 2025 and lease income has also continued to improve. Grant income of £63k received in year.
Expenditure
SIB interest continued to be charged at an interest rate of 0.5% to March 2025. 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 £911k at end of Mar 2025). No property improvements were made during the year.
Trade debtors
This figure has increased by £6.5k to £17.8k when compared to March 2024 which is due to the increase within customer invoicing due to centre being open more.
Reserves
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to 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 trust’s current activities while consideration is given to ways in which additional funds may be raised.
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.
The trustees, who are also the directors of Exeter Community Centre Trust Ltd for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of Exeter Community Centre Trust Ltd (the trust) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the trust are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the trust’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the trust’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. 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 trust as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
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 financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 published in October 2019.”
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, The Social Investment Business, who have being extremely supportive of the project. In the last few years The Social Investment Business have provided a temporary restructuring of the loan interest payable and a capital repayment holiday. This support is still ongoing.
Since the year end the Trustees have reached an agreement in principle with The Social Investment Business with respect to all amounts due to The Social Investment Business. It is anticipated that this agreement will be fully implemented in late 2025. The new agreement will put the charity in a much more secure financial position going forward.
The Trustees of the Charity work extremely closely with The Social Investment Business 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.
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 trust has been notified of the donation, unless performance conditions require deferral of the amount.
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.
There is no depreciation provided against the carrying value of the freehold land and buildings. This not in accordance with 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 published in October 2019. The Trustees believe that given the nature of the building and the impairment in 2023, the residual value will always equal or exceed the carrying value in the accounts.
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.
The company has elected to use the recognition exemption for leases of low-value assets, as permitted by IFRS 16. These leases are accounted for under the operating lease method, and lease payments are recognised on a straight-line basis over the lease term.
For the year ended 31st March 2025, the total expense recognised in profit or loss for low-value leases was £572. This expense is recognised in Printing, Postage & Stationery.
Grants receivable
Grants receivable other
Room hire
Lease & service charges
Investments
Rates and water
Security and facilities
Insurance
Telephone
Heat and light
Cleaning and hygiene
Printing, postage, stationery and computer
Consultancy and subcontractors
Repairs and maintenance
Bad debt expense
Subscriptions
Motor and travelling
Bank charges and loan interest
Sundries
Accountancy and bookkeeping
Governance
Governance costs includes payments to the independent examiners of £3,220 (2024- £2,830) 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:
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.
There is no depreciation provided against the carrying value of the freehold land and buildings. This not in accordance with 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 published in October 2019. The Trustees believe that given the nature of the building and the impairment in 2023, the residual value will always equal or exceed the carrying value in the accounts.
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.
The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust 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.
SIB funds is for the refurbishment of the Centre and working capital.
HLF & ECC strategic grant are for development of third floor.
LED conversion grant is for updating the lighting.
Digital inclusion grant is for the WiFi/internet access
Power to change grant is for the Community Kitchen
Business development grant is for loan refinancing
Arts council grant is for the All's well project/social prescribing
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.
The key management personnel of the charity comprise the managers. The total remuneration of key management personnel during the period was: