The Renfield Centre - Charities report - 21.2

REGISTERED COMPANY NUMBER: SC153177 (Scotland)

REGISTERED CHARITY NUMBER: SCO22996

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2020

for

The Renfield Centre

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

to

19

TRUSTEES

A C G Kennedy

M B A Glass

R Nicolson

F G Hay

R Yorke

J Peckenson

V Osso

Rev D Johnston (appointed 12.7.21)

COMPANY SECRETARY

S A Kerrigan

REGISTERED OFFICE

260 Bath Street

Glasgow

Glasgow

G2 4JP

REGISTERED COMPANY NUMBER

SC153177 (Scotland)

REGISTERED CHARITY NUMBER

SCO22996

INDEPENDENT EXAMINER

Stevenson & Kyles

Chartered Accountants

25 Sandyford Place

Glasgow

G3 7NG

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 December 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

The charity is a non-denominational Christian organisation, whose over-arching objective is to advance the Christian faith through service to the community.To this end it provides serviced accommodation for an extremely wide range of social activities. In a typical year it supports 280 organisations and with a footfall of over 60,000 individuals, thus contributing a substantial public benefit. The charity is financially self-reliant and, in order to continue covering its costs in the long run, it aims to achieve a mix of customers that can be charged for use of its accommodation on an 'ability to pay' basis.Thus, affordable rents for other registered charities, churches and self-help groups are cross subsidised from rents paid by organisations that operate in the commercial market for space for meetings, training events and conferences. However, this means that the quality of accommodation provided must be of a comparable quality to what is available in that market.

Public benefit

The charity provides accommodation for meetings, training events, performances and conferences arranged by numerous organisations including other registered charities, churches and self help groups in the Glasgow area.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Achievements

In the course of 2020, the Renfield Centre was severely impacted from mid-March to the year-end by the restrictions imposed by both the U.K and Scottish Governments in response to the Covid pandemic.

Being unable to open or having restricted opening severely reduced the Centre's revenue and whilst expenditure was cut, certain items such as Pest Control, Fire Safety Systems, lift maintenance and Legionella Control still had to be carried out.

The rateable value of the Centre was too high for it to qualify for the £10k awarded by Councils from Government funding. Although applications were made to other grant awarding bodies none was successful.

We are grateful for the funding from the Job Retention Scheme (Furlough).

The Centre successfully provided support across the following categories:

-Various other charities occupied serviced office accommodation provided at affordable rents: Glasgow Presbytery of the Church of Scotland (SCO07691); Greater Glasgow Girls Brigade (SCO15668); Headway Glasgow, (a Brain/Head injuries charity, SCO30113); Triple Tap Tech (a charity supporting visually impaired people SCO48975); and Alpha (a Christian Charity 1086178). However, covid restrictions reduced their activities and income and as result several required temporary rent reductions.

-Loaves and Fishes (SCO09413), a charity which supports disadvantaged people, was supplied with 3,250 hot nutritious meals over the year, prepared by the Centre's wholly owned subsidiary Renfield Enterprises Ltd, trading as the Oasis Café. However, this was suspended from mid-March due to Covid and associated restrictions.

-Hall accommodation for congregational activities and administrative services were provided for St Andrews West Parish Church (SC011423), and regular meetings took place of a wide range of Christian churches and groups, including Grace Church, (Grace Communion) Worldwide Church of God, WISPM and the Norwegian Church. Again, from mid-March Covid restrictions curtailed this. Most of the following regular customer groupings ceased meeting from mid-March due to the Covid restrictions:

-Self-help groups included Alcoholic Anonymous, Gamblers Anonymous, Al Anon and Gam Anon

-In education and training the Centre's customers included charities - such as Place2be, Rape Crisis, Scottish Care, Clyde Scouts, Glasgow Disabled Scouts, Girls Brigade, Mary's Meals - and academic institutions including Robert Gordon, Strathclyde, Glasgow Universities, Glasgow School of Art and Cornell University.

-A number of retirement fellowship groups that help reduce social isolation for older people made use of the Centre, including BMA Retired Ladies, Civil Service Pensioners Association, WRNS, and Bank of Scotland Pensioners

-Several hobby groups, Scrabble, Paddle Steamers preservation Society and Caledonian Railway Society met regularly in the Centre.

-The Centre also continued to serve the general public through the Oasis Café and by the organisation of a concert series in conjunction with Classical Musicians Scotland and annual performances by Clyde Opera.

-In the performing arts, on the musical front the Centre accommodated piano lessons, rehearsal programmes for several choirs and a wind band, and components of the annual Glasgow Music Festival; on the theatrical front rehearsal space has been provided for both small and large groups, some professional.

-Due to exemptions from the restrictions, we were able to host ABRSM Music Exams and Royal Conservatoire rehearsals.

- Another exemption allowed us to provide a polling station for an election on behalf of the Moldovan Embassy for their citizens based in Glasgow.

FINANCIAL REVIEW

Financial position

2019 had been the Centre's most successful year, both from a financial perspective and in terms of growth in the customer base. So, it was particularly galling to experience a nearly 60 per cent reduction in bookings of accommodation down from £186,650 in 2019 to £78,158 due to factors beyond the Centre's control, while despite considerable efforts (aided by the Government's Furlough Scheme) operating costs could only be reduced by 22 per cent from £200,937 in 2019 down to £157,151. Accordingly, a surplus of £16,892 in 2019 became a deficit of £22,782 in 2020. That it was contained to this level was very largely the result of the hard work and considerable efforts on the part of the Centre Manager, Administrator and Facilities Manager and a motivated Board of Directors. A return to an acceptable level of performance is entirely dependent on the resumption of normal operating conditions, a matter largely in the hands of the UK and Scottish governments. The Centre is well-placed to take advantage of this, when it occurs. The forthcoming COP 26 event due to take place in October/November 2021 has already brought a welcome increase in bookings which is expected to contribute significantly to an improvement in the results for 2021.

During the year the Charity received generous donations amounting to £5700, the donors wish to remain anonymous. This money was used to purchase and install wall mounted televisions and a large portable television as part of an I.T upgrade based on customer feed back .

Principal funding sources

The principal source of funding is income from the letting of accommodation within the centre to other church orgainsations, other charities, self help groups and other commercial entities. The charity also receives grant income from the Renfield Street Trust and St Andrew's West Parish Church.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity 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.

Recruitment and appointment of new trustees

New trustees may be sought to enhance or increase the range of expertise available to the charity. New trustees are appointed by the existing trustees. There is no formal induction programme for any newly appointed trustees. New trustees are given information containing a brief history of the charity, copies of most recent annual reports and accounts, advice on powers and responsibilities of trustees, a copy of the trust deed and a copy of the Scottish Charity Regulator's Guidance: Guidance for Charity trustees.

Organisational structure

The charity has seven trustees with responsibility for the direction of the charity in meeting its objectives. The day to day running of the Renfield Centre is the responsibility of the Centre Manager who reports regularly to the trustees. The trustees meet four times a year to review performance and decide on the charity's future role while developing solutions to issues as they arise.

Decision making

The decision making process is determined by the trustees and implemented by the Centre Manager.

Related parties

The charity has a wholly owned trading subsidiary, Renfield Enterprises Limited, which provides catering services within the The Renfield Centre and to the general public. During this company's income fell by 77% due to the effects of Covid19 severely affecting the company's ability to operate. The results show a loss of £8,353 compared to a profit of £18 in the previous year. The company ceased trading to the general public at the end of September 2020 due to the continued impact of the pandemic, but has continued to provide services to users of the Renfield Centre. The directors are hopeful that trading will commence again in early 2022 but this depends on a number of factors which cannot be predicted with any certainty as this point.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The principal risks are ensuring continued compliance with relevant laws and regulation regarding the maintenance of the property occupied, risk associated with rising minimum wage and associated pension costs and continuing pressure on utility costs, which continue to rise. The nature of the customer base means that there is constant pressure to minimise increased costs being passed on to customers but this is being managed at the present time. The trustees and the Centre Manger are acutely aware of these risks and they are continually under review and they have plans in place to deal with these issues as and when they arise.

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

Approved by order of the board of trustees on 28 September 2021 and signed on its behalf by:

S A Kerrigan - Secretary

I report on the accounts for the year ended 31 December 2020 set out on pages seven to nineteen.

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

(1)	which gives me reasonable cause to believe that, in any material respect, the requirements

-	to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-	to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Mark Dunn

Chartered Accountant

Stevenson & Kyles

Chartered Accountants

25 Sandyford Place

Glasgow

G3 7NG

28 September 2021

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

30,205

792

Charitable activities

Grants recieved

25,838

30,387

Other trading activities

2

78,326

186,650

Total

134,369

217,829

EXPENDITURE ON

Charitable activities

3

General

157,151

200,937

NET INCOME/(EXPENDITURE)

(22,782

)

16,892

RECONCILIATION OF FUNDS

Total funds brought forward

111,160

94,268

TOTAL FUNDS CARRIED FORWARD

88,378

111,160

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

10

21,830

19,190

Investments

11

100

100

21,930

19,290

CURRENT ASSETS

Debtors

12

77,034

86,812

Cash at bank

1,339

29,270

78,373

116,082

CREDITORS

Amounts falling due within one year

13

(11,925

)

(24,212

)

NET CURRENT ASSETS

66,448

91,870

TOTAL ASSETS LESS CURRENT LIABILITIES

88,378

111,160

NET ASSETS

88,378

111,160

FUNDS

14

Unrestricted funds

88,378

111,160

TOTAL FUNDS

88,378

111,160

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 28 September 2021 and were signed on its behalf by:

F G Hay - Trustee

Cash flows from operating activities

Cash generated from operations

1

(22,353

)

28,545

Net cash (used in)/provided by operating activities

(22,353

)

28,545

Cash flows from investing activities

Purchase of tangible fixed assets

(5,578

)

(11,684

)

Net cash used in investing activities

(5,578

)

(11,684

)

Change in cash and cash equivalents in the reporting period

(27,931

)

16,861

Cash and cash equivalents at the beginning of the reporting period

29,270

12,409

Cash and cash equivalents at the end of the reporting period

1,339

29,270

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020

2019

£

£

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities)

(22,782

)

16,892

Adjustments for:

Depreciation charges

2,938

4,966

Decrease in debtors

9,778

6,829

Decrease in creditors

(12,287

)

(142

)

Net cash (used in)/provided by operations

(22,353

)

28,545

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank

29,270

(27,931

)

1,339

29,270

(27,931

)

1,339

Total

29,270

(27,931

)

1,339

1.	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. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

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

Preparation of consolidated financial statements

The financial statements contain information about The Renfield Centre 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.

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.

Fixtures and fittings

-

15% on cost

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 charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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.

2.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Centre bookings

78,158

186,517

Other income

168

133

78,326

186,650

3.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 4)

note 5)

Totals

£

£

£

General

143,923

13,228

157,151

4.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2020

2019

£

£

Staff costs

78,973

97,416

Rates and insurance

11,552

11,941

Light and heat

17,603

27,076

Telephone

4,026

5,356

Postage and stationery

3,403

3,541

Sundries

3,557

9,961

Repairs

12,903

18,547

Cleaning

1,497

1,964

Equipment hire

3,480

2,295

Bank charges

491

833

Bad debts

3,500

1,500

Depreciation

2,938

4,966

143,923

185,396

5.	SUPPORT COSTS

Governance

costs

£

General

13,228

6.	NET INCOME/(EXPENDITURE)

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

2020

2019

£

£

Depreciation - owned assets

2,938

4,966

7.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

8.	STAFF COSTS

2020

2019

£

£

Wages and salaries

73,588

90,371

Social security costs

4,295

5,801

Other pension costs

1,090

1,244

78,973

97,416

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

2020

2019

Management and administration

2

2

Caretakers

2

4

4

6

The key management are deemed to be the trustees and the Centre Manager. Total employment benefits of the key management personnel including employer pension contributions were £29,711 (2019- £32,839).

No employee received emoluments in excess of £60,000.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

792

Charitable activities

Grants recieved

30,387

Other trading activities

186,650

Total

217,829

EXPENDITURE ON

Charitable activities

General

200,937

NET INCOME

16,892

RECONCILIATION OF FUNDS

Total funds brought forward

94,268

TOTAL FUNDS CARRIED FORWARD

111,160

10.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 January 2020

50,814

Additions

5,578

At 31 December 2020

56,392

DEPRECIATION

At 1 January 2020

31,624

Charge for year

2,938

At 31 December 2020

34,562

NET BOOK VALUE

At 31 December 2020

21,830

At 31 December 2019

19,190

11.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

MARKET VALUE

At 1 January 2020 and 31 December 2020

100

NET BOOK VALUE

At 31 December 2020

100

At 31 December 2019

100

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:

The investment in subsidiary represents 100% of the issued share capital of Renfield Enterprises Ltd, a company registered in Scotland. At 31 December 2020, the aggregate reserves of this company was £(68,569) and the company made a loss for the year of £8,353.

12.

DEBTORS

2020

2019

£

£

Amounts falling due within one year:

Trade debtors

14,218

25,024

Other debtors

1,738

1,711

15,956

26,735

Amounts falling due after more than one year:

Amount due from subsidiary

61,078

60,077

Aggregate amounts

77,034

86,812

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Social security and other taxes

7,797

16,649

Accrued expenses

4,128

7,563

11,925

24,212

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.20

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

111,160

(22,782

)

88,378

TOTAL FUNDS

111,160

(22,782

)

88,378

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

134,369

(157,151

)

(22,782

)

TOTAL FUNDS

134,369

(157,151

)

(22,782

)

Comparatives for movement in funds

Net

movement

At

At 1.1.19

in funds

31.12.19

£

£

£

Unrestricted funds

General fund

94,268

16,892

111,160

TOTAL FUNDS

94,268

16,892

111,160

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

217,829

(200,937

)

16,892

TOTAL FUNDS

217,829

(200,937

)

16,892

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.1.19

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

94,268

(5,890

)

88,378

TOTAL FUNDS

94,268

(5,890

)

88,378

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

352,198

(358,088

)

(5,890

)

TOTAL FUNDS

352,198

(358,088

)

(5,890

)