Deal and Walmer Community Association - Charities report - 22.2

REGISTERED COMPANY NUMBER: 05170251 (England and Wales)

REGISTERED CHARITY NUMBER: 1105711

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

FOR

DEAL AND WALMER COMMUNITY ASSOCIATION

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

17

TRUSTEES

Dr S B Williams

R Brown (resigned 24.9.22)

M V Carnall (appointed 1.5.22)

M E Gregory (resigned 2.4.22)

COMPANY SECRETARY

Dr S B Williams

REGISTERED OFFICE

Waterfront

Kingsdown Road

Walmer

DEAL

Kent

CT14 7LL

REGISTERED COMPANY NUMBER

05170251 (England and Wales)

REGISTERED CHARITY NUMBER

1105711

INDEPENDENT EXAMINER

McCabe Ford Williams

Chartered Accountants

Charlton House

Dour Street

DOVER

Kent

CT16 1BL

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 2020. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To promote the benefit of the inhabitants of Deal and Walmer in the County of Kent and the neighbourhood without distinction of sex or political, religious or other opinions by associations and inhabitants in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure-time occupation with the objective of improving the conditions of life for said inhabitants.

To establish or to secure the establishment of a community centre and to maintain and manage or to co-operate with any local statutory authority in the maintenance and management of such a centre for activities promoted by the charitable company.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

This has been a year of two halves - first a vibrant community centre continuing its trajectory of growth and effective service of the local community, and then a sudden pandemic-led closure, leaving an empty building and all staff furloughed. When we were able to gradually open again it was with very restricted activity and a local community nervous of coming together, which created a very challenging environment.

Throughout the first part of this year the Landmark Centre has continued to be a venue for an increasing number of local groups, both regular and occasional. Our family and social gatherings, for a variety of anniversary and special events, have been becoming increasingly popular. We have seen a consistent growth in the activity of a variety of groups serving various parts of the local community and with the help of volunteers we brought two mini-conference rooms into use to supplement this opportunity early in the year.

For children we have hosted dance and drama groups most afternoons and early evenings. For adults, throughout the week we have hosted activities that have focused on health and well-being, bringing people together for shared experiences in areas such as physiotherapy, tai chi, yoga, postural stability and small groups supporting emotional health. We have also welcomed choirs, music groups, photography, wine-tasting, a community church, quilting, family history, etc. Our facilities are also well-used by local civic groups.

The charity has also continued operating a café on the premises with discounted 'home-cooked' food as a way of serving the local community. This provision is used regularly by a number from the retired community around Deal and Walmer, those who live alone and those who have special needs as well as visitors. Our busiest day has been a Saturday, offering refreshments to those shopping at the buoyant market next door to the Centre.

The charity's trading subsidiary, Spires Hospitality (Deal) Ltd, has continued to operate the bars for functions as well as providing a discounted community bar for locals and visitors open daytime and evenings. For the first year since the new bar was launched we have had consistent attendance throughout the winter months and, prior to the pandemic we were looking forward to an exciting summer. Customers in the bar have also been ordering food from the café.

All these activities halted overnight with the required closure in March 2020 due to the pandemic. The building was locked up and remained empty for nearly four months.

From early July 2020 we have been grateful for continuity of courageous staffing in re-opening, setting up totally new social distancing practices to create a safe and welcoming environment for all our visitors. In the midst of the restrictions that remained in place we were able to begin service in the bar and café and a small number of groups returned, although most of our hirers have waited until after the summer to return.

FINANCIAL REVIEW

Review of the year

During the previous three financial years income from hall hire and the café had seen consistent increases, helping the charity towards a stable financial base. This momentum has continued during this year before March 2020. Prior to our closure during the pandemic, our bar was beginning to make a significant contribution. This continues to be indicative of the ongoing movement toward the Landmark re-establishing its contribution and reputation as a community resource in the centre of the High Street.

The pandemic brought a halt to this activity and the trajectory of growth that was building, which has been disappointing. However we were fortunate to be able to benefit from a number of grants during the closure together with financial support for furloughed staff. This enabled us to remain in a stable financial position and ready to embrace the significant extra operational costs of operating the Centre with restrictions on numbers of attendees and heightened hygiene and safety precautions.

We received a grant during the year for the repairs to the roof, which will significantly improve the quality of experience for all our users and staff. We are grateful to the Co-op Local Community Fund and to all the public who nominated us as the beneficiary of their gifts. Work on the roof had to be postponed until after the pandemic restrictions. We also received a grant from Deal Town Council for repairs, which we are very appreciative of.

The uncertainty caused directors regretfully to choose to continue to only make minimal repayment to debts inherited from prior to the current directorship team. We have appreciated the generosity of creditors in this decision. Support continues to be received from directors loans although no new loans have been needed.

Investment policy and objectives

Under the memorandum and articles of association, the charitable company has the power to invest in any way the trustees wish.

The trustees, having regard to the liquidity requirements of operating the centre, and maintaining restricted funds separately, have whenever possible, operated a policy of keeping available funds in an interest bearing deposit account and seek to achieve the highest rate of deposit interest available commensurate with availability and convenience of management.

Reserves policy

The trustees have forecast the level of free reserves (that is those funds not tied up in fixed assets and designated and restricted funds) the charitable company will require to sustain its operations on a day to day basis. This would also meet unexpected repair costs to the building. The trustees estimate that £10,000 of free reserves will be required. It is the charitable company's aim that after a period of consolidation, there will be an opportunity to create these reserves.

FUTURE PLANS

The new financial year has begun with a more extended closure of the premises due to the pandemic. Opening was once again restricted and gradual, but the community centre is continuing to rebuild its momentum.

The charity is working closely with Spires Hospitality (Deal) Ltd to continue to develop the community bar as a resource for the local community and an opportunity to generate funds for the charity. The bar has launched live music events which continue to raise the profile of the community centre as a venue, as well as generating increased finances. With the growth of the bar we will be refurbishing the upstairs 'lounge' bar to provide additional space for pool, darts and general socialising.

We are pursuing a mutually beneficial partnership with the local Rotary Club, who are providing volunteers and taking on decorating projects as well as helping to bring new clientele to the Landmark through their activities. We hope to add in other volunteer projects and fund-raising on the back of this goodwill and publicity.

Hall hire has been slower to recover momentum, with a number of our previous hirers moving to online classes and no longer needing to use our facilities as frequently. However we have been pleased to welcome new hirers and continue to explore how to make the best use of our remarkable collection of halls and rooms. Family parties and other social events are beginning to return.

The charity continues to benefit from extensive volunteer support including its directors and teams that support the maintenance of the building and numerous activities. The hard work of the staff, volunteers and all the contribution of the local community are all once again consolidating a new lease of life for the Centre in the midst of these significant challenges.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charitable company 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.

In the event of winding up, the liability of each member of the charitable company is limited to £10.

Recruitment and appointment of new trustees

As set out in the articles of association a trustee must be a natural person aged 18 or older, and a member of the charitable company.

All members are circulated with invitations to nominate trustees prior to the annual general meeting advising them of retiring trustees and requesting nominations for the annual general meeting. When considering co-opting trustees, the board has regard to the requirement for any specialist skills needed.

Organisational structure

The board of trustees, which must not be less than 3 members, administers the charitable company. The board now meets as regularly as needed and not less than once per quarter. They are supported by volunteers who cover membership, finance, liaison with clients, property maintenance, etc. To facilitate effective operations, volunteers can be given specific delegated authority, within terms of delegation approved by the trustees, for operational matters including finance and employment.

Induction and training of new trustees

New trustees undergo a briefing on their legal obligations under charity and company law, the content of the memorandum and articles of association, the committee and decision making processes, the business plan and recent financial performances of the charitable company.

Risk management

The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Approved by order of the board of trustees on 4 October 2022 and signed on its behalf by:

Dr S B Williams - Trustee

Independent examiner's report to the trustees of Deal and Walmer Community Association ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts 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

4.

the accounts 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 accounts to be reached.

Ian Pascall FCA

McCabe Ford Williams

Chartered Accountants

Charlton House

Dour Street

DOVER

Kent

CT16 1BL

4 October 2022

2020

2019

Unrestricted

Restricted

Endowment

Total

Total

fund

funds

fund

funds

funds

Notes

£

£

£

£

£

INCOME AND

ENDOWMENTS FROM

Donations and legacies

3

29,963

19,463

-

49,426

2,299

Charitable activities

Charitable activities

33,238

-

-

33,238

70,192

Other trading activities

4

54,256

-

-

54,256

79,209

Other income

38

-

-

38

406

Total

117,495

19,463

-

136,958

152,106

EXPENDITURE ON

Raising funds

53,339

17,438

-

70,777

76,494

Charitable activities

Charitable activities

60,358

1,020

6,810

68,188

61,766

Other

3,550

-

-

3,550

4,070

Total

117,247

18,458

6,810

142,515

142,330

NET INCOME/(EXPENDITURE)

248

1,005

(6,810

)

(5,557

)

9,776

RECONCILIATION OF

FUNDS

Total funds brought forward

(110,302

)

1,191

409,688

300,577

290,801

TOTAL FUNDS CARRIED FORWARD

(110,054

)

2,196

402,878

295,020

300,577

2020

2019

Unrestricted

Restricted

Endowment

Total

Total

fund

funds

fund

funds

funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

11

-

-

402,878

402,878

410,108

Investments

12

10

-

-

10

10

10

-

402,878

402,888

410,118

CURRENT ASSETS

Stocks

13

550

-

-

550

450

Debtors

14

59,112

-

-

59,112

65,541

Cash at bank and in hand

2,248

2,196

-

4,444

3,514

61,910

2,196

-

64,106

69,505

CREDITORS

Amounts falling due within one year

15

(98,963

)

-

-

(98,963

)

(103,085

)

NET CURRENT ASSETS/(LIABILITIES)

(37,053

)

2,196

-

(34,857

)

(33,580

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(37,043

)

2,196

402,878

368,031

376,538

CREDITORS

Amounts falling due after more than one year

16

(73,011

)

-

-

(73,011

)

(75,961

)

NET ASSETS

(110,054

)

2,196

402,878

295,020

300,577

FUNDS

18

Unrestricted funds

(110,054

)

(110,302

)

Restricted funds

2,196

1,191

Endowment funds

402,878

409,688

TOTAL FUNDS

295,020

300,577

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 4 October 2022 and were signed on its behalf by:

S B Williams - Trustee

1.	STATUTORY INFORMATION

Deal and Walmer Community Association is a charitable company, limited by guarantee, registered in England and Wales. The charitable company's registered number and registered office address can be found on the Reference and Administrative Details page.

The charity's place of business is The Landmark Centre, 129 High Street, Deal, Kent, CT14 6BB.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Deal and Walmer Community Association as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

No amounts are included in the financial statements for the services donated by volunteers.

Charitable trading activities:

Rental income from the use of the Community Centre is included within incoming resources in the period in which the room is hired.

Donations, legacies and similar incoming resources:

Donations, legacies and similar incoming resources are included in the period in which they are receivable, which is when the charitable company becomes entitled to the resources.

Government grants:

Revenue based grants are recognised as income over the periods in which the related expenditure is incurred. Grants for the purpose of giving immediate financial support with no related future costs are recognised as income when receivable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

- Straight line over 15 years (heating improvements) and Straight line over 100 years (the property)

Fixtures, fittings and equipment

- Straight line over 4 years

Individual fixed assets costing £500 or more are capitalised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds are related to assets which are core to the function of the charitable company. Although there is no general restriction on these funds, by their nature, they are not available for use by the trustees.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged on a straight line basis over the period of the lease.

3.	DONATIONS AND LEGACIES

2020

2019

£

£

Donations and grants

49,426

2,299

4.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Café sales

54,256

79,209

5.	INCOME FROM CHARITABLE ACTIVITIES

2020

2019

Activity

£

£

Hire of halls

Charitable activities

21,238

58,192

Rent from bar

Charitable activities

12,000

12,000

33,238

70,192

6.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

7,230

7,231

Independent Examiner - examination fee

2,580

2,160

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 October 2020 nor for the year ended 31 October 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 October 2020 nor for the year ended 31 October 2019.

8.	STAFF COSTS

2020

2019

£

£

Wages and salaries

81,030

78,584

Other pension costs

909

887

81,939

79,471

The average monthly number of employees during the year was as follows:

2020

2019

Administration

-

1

Cafe

6

6

Facilities

2

2

8

9

No employee earned over £60,000 for the year ended 31 October 2020 nor for the year ended 31 October 2019.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Endowment

Total

fund

funds

fund

funds

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

343

1,956

-

2,299

Charitable activities

Charitable activities

70,192

-

-

70,192

Other trading activities

79,209

-

-

79,209

Other income

406

-

-

406

Total

150,150

1,956

-

152,106

EXPENDITURE ON

Raising funds

76,494

-

-

76,494

Charitable activities

Charitable activities

54,010

946

6,810

61,766

Other

4,070

-

-

4,070

Total

134,574

946

6,810

142,330

NET INCOME/(EXPENDITURE)

15,576

1,010

(6,810

)

9,776

RECONCILIATION OF FUNDS

Total funds brought forward

(125,878

)

181

416,498

290,801

TOTAL FUNDS CARRIED FORWARD

(110,302

)

1,191

409,688

300,577

10.	GOVERNMENT GRANTS

During the year the charitable company has received government grants due to the COVID-19 pandemic. The company received the Coronavirus Job Retention Scheme grant, a revenue based grant, which has been credited to the profit and loss account to match the related employment costs. The sum of £17,438 was receivable in the year. The company also received the sum of £25,000 through other government grants due to nationally and locally imposed lockdowns, being compensatory grants to give immediate financial support to the company.

11.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

Freehold

and

property

equipment

Totals

£

£

£

COST

At 1 November 2019 and 31 October 2020

436,928

34,817

471,745

DEPRECIATION

At 1 November 2019

27,240

34,397

61,637

Charge for year

6,810

420

7,230

At 31 October 2020

34,050

34,817

68,867

NET BOOK VALUE

At 31 October 2020

402,878

-

402,878

At 31 October 2019

409,688

420

410,108

12.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

MARKET VALUE

At 1 November 2019 and 31 October 2020

10

NET BOOK VALUE

At 31 October 2020

10

At 31 October 2019

10

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Spires Hospitality (Deal) Ltd

Registered office:

Nature of business: Hospitality services

%

Class of share:

holding

Ordinary

100

31.10.20

31.10.19

£

£

Aggregate capital and reserves

(66,372

)

(78,366

)

Profit/(loss) for the year

11,994

(21,604

)

13.

STOCKS

2020

2019

£

£

Stocks

550

450

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

53,403

59,504

Sundry debtors

5,709

6,037

59,112

65,541

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Loans (see note 17)

81,791

81,227

Social security and other taxes

3,459

1,374

Other creditors and accruals

13,713

20,484

98,963

103,085

16.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Mortgage - 2-5 years

22,900

22,266

Mortgage - over 5 years

50,111

53,695

73,011

75,961

The mortgage is secured on the freehold property.

17.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year on demand:

Mortgage

5,725

5,566

Other loans

76,066

75,661

81,791

81,227

18.	MOVEMENT IN FUNDS

Net

At

movement

At

1.11.19

in funds

31.10.20

£

£

£

Unrestricted funds

General fund

(110,302

)

248

(110,054

)

Restricted funds

General repairs

181

1,005

1,186

Spires Maintenance Fund

1,010

-

1,010

1,191

1,005

2,196

Endowment funds

Endowment

409,688

(6,810

)

402,878

TOTAL FUNDS

300,577

(5,557

)

295,020

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

117,495

(117,247

)

248

Restricted funds

General repairs

1,850

(845

)

1,005

Spires Maintenance Fund

175

(175

)

-

Covid

17,438

(17,438

)

-

19,463

(18,458

)

1,005

Endowment funds

Endowment

-

(6,810

)

(6,810

)

TOTAL FUNDS

136,958

(142,515

)

(5,557

)