HESWALL_HALL_COMMUNITY_TR - Accounts

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)” (as amended for accounting periods commencing from 1 January 2016).

The Charitable Company was formed to benefit the Community of Heswall and its surrounds with the primary purpose of taking over and managing Heswall Hall for the benefit of the community.

The report covers the eighth year of managing Heswall Hall as a community asset following its transfer from Wirral Council (WC). The year has again been one of general consolidation and increased marketing of the hall with firm control over expenditure. Hire charges were slightly increased this year and the room hire income, community activities and bar profits gave rise to an operating surplus. The support funding from WC received during the first six years enabled a reserve fund to be established towards funding major necessary repairs and improvements in the future.

The Trust has continued with its programme of marketing the hall through social media, the foyer TV screen, monthly emails to our mailing list and regular advertisements in local magazines. Our monthly ‘what’s on’ leaflet is now distributed to local businesses, GP surgeries, dentists etc with the aim of reaching a wider audience and the socially isolated. We have rebranded our logo and developed a new website to modernise our image, market our facilities and show ‘what’s on’ at the Hall. We will continue to review new ways of promoting the hall including advertising on local radio. Online ticketing is still very popular allowing us to manage our events more effectively and our customer relationship management system continues to help us control our bookings and forecast future income. This is all aimed at increasing usage, particularly daytime and we have seen an increase in regular users and children’s functions. However daytime usage is still difficult mainly due to the Council’s car park charges.

Our community activities and events continue to be well attended. The ‘Big Room’ brand of monthly live music particularly is very popular and has been developed to include a comedy club, big stage concerts and folk and root evenings. The Trust continues to support the Wirral Arts Festival, local businesses and community groups. It provides its facilities free of charge to a community arts team for people with disabilities and other community groups. The Riverside Legacy fund, to help support local groups to fund the costs of a production, has been actively promoted and we have already received two grant requests for next year.

Throughout the year the Board has continued the process of maintaining and improving the hall facilities including the major refitting and modernisation of the ladies and disabled toilets and the refurbishment of the Manager’s office. We are continuing to review and update our policies, procedures and the Disaster Recovery Plan. Plans for next year include replacing the stage floor, upgrading the foyer and starting to update our theatre lighting.

The successful management of the Hall has only been achieved with the considerable help and support of the employees and we continue to recruit volunteers to assist with community activities and are very grateful for their invaluable support.

Management Review

This year has been one of continuing consolidation in managing the hall on a day to day basis with the use of the hall increasing. The Board is conscious that whilst the facility is available to the community generally, there is still much work to be done to attract the disabled, the socially isolated and youth to the Hall. This will continue to be a focus of the Board in the future and will include building partnerships with local charities and continuing to work with schools.

There was an operating surplus of £3,342 (2018: £12,387) and further gains on investments of £25,554 (2018: £31,602) leaving unrestricted reserves of £599,009 and restricted reserves of £43,579 at the year end.

Reserves Policy

While unrestricted funds are available it is the intention of the Board to establish sufficient reserves, to be managed with expert advice, to ensure that Heswall Hall is maintained as a first-class facility. Reserves are maintained to fund liabilities in the event of discontinuance and for major maintenance, refurbishment and development works. The trustees have created designated funds for this which are shown in note 22, and take account of the ready availability of the investments and the expected long term expenditure of the Riverside Fund.

Risk policy

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

To promote the hall for private, charity, school and business use and continue to maintain the facility to a high standard in which residents can take pride as the recognised centre for charity and community activity.

Covid 19

At the time of approving this report Heswall Hall is currently closed owing to the Covid 19 outbreak and the resulting Government social distancing and lockdown measures. The Hall was closed from 17 March 2020 and from that date all income from business  activities ceased.

The board has taken numerous steps to minimise the effect of Covid 19 and the long term risk to the Trust. A £25,000 Retail, Hospitality and Leisure Grant under the governments Covid 19 support schemes was granted to the Trust and all staff were furloughed within two weeks of the closure utilising the governments Job Retention Scheme. Expenditure on utilities (normally the second biggest cost of the Trust) have also been minimised and the board are confident the grant monies received will be sufficient to meet the ongoing costs whilst the hall remains closed.  

Heswall Hall Community Trust was incorporated on 6 December 2010 and registered with the Charity Commission on 28 February 2011 to enable the Trustees to complete negotiations with Wirral Borough Council (WBC) to take into community use Heswall Hall located in Heswall, Wirral under the Council’s Community Asset Transfer scheme (CAT).

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Small company provisions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board of Trustees

The Trustees, who are also the directors of Heswall Hall Community Trust for the purpose of company law, are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, 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; and

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity 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 charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity 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 Heswall Hall Community Trust (the charity) for the year ended 31 August 2019.

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my examination, for this report, or for the opinions I have formed.

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 includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2019. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Heswall Hall Community Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 111 Telegraph Road, Heswall, Wirral, CH60 0AF.

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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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 accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

Since the balance sheet date Heswall Hall was closed on 17 March 2020 to comply with Government enforced lockdown to reduce the spread of the Covid 19 virus. As a result the Trust ceased to generate income from business activities from that date. To minimise the effect of Covid 19 and the risk to the charity the board had applied for, and had been granted a £25,000 Retail, Hospitality and Leisure Grant, which was announced under the range of government support schemes.

Immediate steps were also taken by the board to reduce expenditure by means of putting all staff into furlough within 2 weeks.  Expenditure on utilities (normally the second biggest cost) was also reduced to a minimum.  The Trust’s ongoing expenditure is estimated to be approximately £1,400 per month whilst the Hall remains closed and the above mentioned grant is expected to cover these costs until lockdown is relaxed.  Furthermore, the Trust has additional funds available on deposit and invested which can be drawn upon if required.

At the time of approving the financial statements the lockdown was still in full effect and the Hall remained closed. However, despite the uncertainty caused by this the Trustees believe that, given the measures put in place and the availability of cash reserves that there is 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.

Designated funds comprise unrestricted funds that have been set aside by trustees for a particular purpose. The aim and use of the designated fund is 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 the restricted funds are set out in the notes to the accounts.

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 is recognised at the time of the donation.

Expenditure reflects all amounts paid and accrued during the year. All costs are allocated between expenditure categories of the statement of financial activities (SOFA) on a basis designed to reflect the use of the resource.

Tangible fixed assets are initially measured at cost (or deemed cost where relevant at the date of transition to FRS 102) and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Items costing £500 or more are capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

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 net income/(expenditure) for the year.

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).

Stock is valued at the lower of cost and net realisable value.

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.

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.

Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from qualifying income and from receipts under Gift Aid.

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.

Room hire

Bar income

Events income

Fixed costs

Bar costs

Maintenance costs

Event costs

Marketing costs

Utilities

Other operational costs

Donations

Sundry

Bank charges

Governance costs include payments to the independent examiner of £900 (2018: £900) for independent examination fees. Also included is £1,955 (2018: £1,494) for other accountancy services and advice.

None of the Trustees (or any persons connected with them) received any remuneration or expenses for their duties as Trustees during the year (2018: nil).

The average monthly number of employees during the year was:

Deferred income is included in the financial statements as follows:

Deferred income relates to amounts received in advance of entitlement.

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £3,010 (2018: £3,121).

The remuneration of key management personnel is as follows.