Heswall Hall Community Trust - Charities report - 22.2

REGISTERED COMPANY NUMBER: 07461381 (England and Wales)

REGISTERED CHARITY NUMBER: 1140612

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 August 2022

for

Heswall Hall Community Trust

Page

Report of the Trustees

1

to

3

Statement of Trustees' Responsibilities

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Statement of Financial Position

7

to

8

Notes to the Financial Statements

9

to

16

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 August 2022. 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 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 Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The Trust has therefore established a wholly owned Trading Company to undertake additional activities to help fund the Trust in the future.

Public benefit

The charity is meeting the public benefit requirement as the purpose of the charity is to benefit the community of Heswall and the surrounding area.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

This was the third consecutive challenging year for the Trust resulting from the after-effects of the pandemic and the rising cost of living.

The Trust is continuing to execute its planned strategy to provide sustainable services in a highly uncertain environment.The Trust's partnerships are continuing, although the current financial challenges require our operating model to be flexible and adaptable. The new state-of-the-art sound and lighting has enabled the Trust to offer enhanced packages for private celebration functions as well as providing first class entertainment for the community. This has helped us attract a wider audience from across the Wirral and further our aim to balance and meet the needs not only of our current users but also the next and future generations.

The impact of the cost-of-living crisis has continued to influence our reserves and we are actively reviewing our overhead costs and prices. We are putting in place plans to gradually move towards an operational surplus and build up our reserves.

Our future strategy aims to balance and meet the needs not only of our current users, but also our next and future generations. We are continuing to support local businesses through the local Business Association with the aim of keeping Heswall Hall at the heart of the community and helping to sustain the local economy. We are constantly looking for ways to develop our links with the local businesses for the benefit of the whole community.

Management Review

This has been another very difficult year and we are grateful to our Trustees, staff and volunteers for their help and support. Although next year will be challenging, the Trust has a clear strategy and plans for the future including recruiting additional Trustees.

FINANCIAL REVIEW

Financial position

There was an operating deficit of £37,611 \2021 £115,080) and further gains on investments of £9,134 (2021 £87,345\ leaving unrestricted reserves of £500,935 (2021 £600,285) and restricted reserves of £43,579 (2021 £43,579\at the year end.

Reserves policy

It is the intention of the Board to maintain sufficient reserves to ensure that Heswall Hall is maintained as a first-class facility. These funds are managed with expert advice. 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 the accounts.

Going concern

The financial statements have been prepared on a going concern basis.

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.

Heswall Hall Community Trust was incorporated on 6 December 2010 and registered with the Charity Commission on 28 February 2011 to enable Trustees to take into community use Heswall Hall (111 Telegraph Road, CH60 0AR) under Wirral Borough 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.

Recruitment and appointment of new trustees

Trustees are appointed by the Trustees for a term of up to three years. The Trustees when complete consist of at least three and not more than twelve individuals.A Trustee may not act as a Trustee unless he / she:

is over the age of 18 years; and

has signed a written declaration confirming: (i) his or her willingness to act as a charity trustee of the Charity and to act only in the best interests of the Charity; (ii) any conflicts of interest or loyalty; and (iii) his or her eligibility to act as a charity trustee of the Charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07461381 (England and Wales)

Registered Charity number

1140612

Registered office

Heswall Hall

111 Telegraph Road

Heswall

Wirral

CH60 OAF

Trustees

D J Cooley (appointed 14.6.22)

S J Ellis

Mrs J M Stock

Mrs K A Griffith

Ms S A Cannon (appointed 16.1.23)

Ms K S Zelaskowski (appointed 10.11.22)

W J Finch (appointed 3.10.22)

Ms B L Mather

W J Finch resigned on 27/03/2023.

Company Secretary

Mrs J M Stock

Independent Examiner

Stuart Kellner FCA

Dufton Kellner Limited

Chartered Accountants

Barnston House

Beacon Lane

Heswall

Wirral

Merseyside

CH60 0EE

Approved by order of the board of trustees on 31 March 2023 and signed on its behalf by:

Mrs K A Griffith - Trustee

The trustees (who are also the directors of Heswall Hall Community Trust for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent examiner's report to the trustees of Heswall Hall Community Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022.

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.

Stuart Kellner FCA

Dufton Kellner Limited

Chartered Accountants

Barnston House

Beacon Lane

Heswall

Wirral

Merseyside

CH60 0EE

31 March 2023

31.8.22

31.8.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

4,001

-

4,001

40,356

Charitable activities

Room hire

66,877

-

66,877

8,569

Bar income

33,839

-

33,839

5,937

Events income

104,431

-

104,431

8,239

General

6,540

-

6,540

-

Investment income

2

2,636

-

2,636

4,457

Other income

3,313

-

3,313

(206

)

Total

221,637

-

221,637

67,352

EXPENDITURE ON

Raising funds

3

2,897

-

2,897

4,349

Charitable activities

General

258,352

-

258,352

154,692

Other

(2,001

)

-

(2,001

)

23,391

Total

259,248

-

259,248

182,432

Net gains on investments

9,134

-

9,134

87,345

NET INCOME/(EXPENDITURE)

(28,477

)

-

(28,477

)

(27,735

)

Other recognised gains/(losses)

Gains/(losses) on revaluation of fixed assets

(70,873

)

-

(70,873

)

-

Net movement in funds

(99,350

)

-

(99,350

)

(27,735

)

RECONCILIATION OF FUNDS

Total funds brought forward

600,285

43,579

643,864

671,599

TOTAL FUNDS CARRIED FORWARD

500,935

43,579

544,514

643,864

31.8.22

31.8.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

357,676

-

357,676

378,157

Investments

10

168,231

-

168,231

230,269

525,907

-

525,907

608,426

CURRENT ASSETS

Debtors

11

6,120

-

6,120

19,858

Cash at bank and in hand

26,316

43,579

69,895

86,360

32,436

43,579

76,015

106,218

CREDITORS

Amounts falling due within one year

12

(16,249

)

-

(16,249

)

(20,468

)

NET CURRENT ASSETS

16,187

43,579

59,766

85,750

TOTAL ASSETS LESS CURRENT LIABILITIES

542,094

43,579

585,673

694,176

CREDITORS

Amounts falling due after more than one year

13

(41,159

)

-

(41,159

)

(50,312

)

NET ASSETS

500,935

43,579

544,514

643,864

FUNDS

15

Unrestricted funds

500,935

600,285

Restricted funds

43,579

43,579

TOTAL FUNDS

544,514

643,864

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 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 31 March 2023 and were signed on its behalf by:

K A Griffith - Trustee

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, as modified by the revaluation of certain assets.

Preparation of consolidated financial statements

The financial statements contain information about Heswall Hall Community Trust 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

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised upon 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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

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.

Long leasehold

-

10% on cost

Improvements to property

-

4% on cost

Computers & equipment

-

33% on cost

Fixtures and fittings

-

10% on cost

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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.	INVESTMENT INCOME

31.8.22

31.8.21

£

£

Other fixed asset invest - FII

2,597

4,244

Deposit account interest

39

213

2,636

4,457

3.	RAISING FUNDS

Investment management costs

31.8.22

31.8.21

£

£

Portfolio management

2,897

4,349

4.	NET INCOME/(EXPENDITURE)

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

31.8.22

31.8.21

£

£

Depreciation - owned assets

38,021

35,695

Surplus/(deficit) on disposal of fixed assets

(5,314

)

23,597

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.

6.	STAFF COSTS

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

31.8.22

31.8.21

Hall manager

1

1

Hall assistants / other staff

5

3

6

4

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

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

40,356

-

40,356

Charitable activities

Room hire

8,569

-

8,569

Bar income

5,937

-

5,937

Events income

8,239

-

8,239

Investment income

4,457

-

4,457

Other income

(206

)

-

(206

)

Total

67,352

-

67,352

EXPENDITURE ON

Raising funds

4,349

-

4,349

Charitable activities

General

154,692

-

154,692

Other

23,391

-

23,391

Total

182,432

-

182,432

Net gains on investments

87,345

-

87,345

NET INCOME/(EXPENDITURE)

(27,735

)

-

(27,735

)

RECONCILIATION OF FUNDS

Total funds brought forward

628,020

43,579

671,599

TOTAL FUNDS CARRIED FORWARD

600,285

43,579

643,864

8.	INDEPENDENT EXAMINERS REMUNERATION

The independent examination fee is £3,000 plus VAT.

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Long

to

Computers

and

leasehold

property

& equipment

fittings

Totals

£

£

£

£

£

COST

At 1 September 2021

284,816

133,142

2,878

18,874

439,710

Additions

15,088

-

2,452

-

17,540

At 31 August 2022

299,904

133,142

5,330

18,874

457,250

DEPRECIATION

At 1 September 2021

29,596

19,594

2,878

9,485

61,553

Charge for year

29,990

5,326

817

1,888

38,021

At 31 August 2022

59,586

24,920

3,695

11,373

99,574

NET BOOK VALUE

At 31 August 2022

240,318

108,222

1,635

7,501

357,676

At 31 August 2021

255,220

113,548

-

9,389

378,157

10.	FIXED ASSET INVESTMENTS

Shares in

Cash and

group

Listed

settlements

undertakings

investments

pending

Totals

£

£

£

£

MARKET VALUE

At 1 September 2021

-

217,836

12,433

230,269

Additions

1

6,715

10,079

16,795

Disposals

-

(7,960

)

-

(7,960

)

Revaluations

-

(70,873

)

-

(70,873

)

At 31 August 2022

1

145,718

22,512

168,231

NET BOOK VALUE

At 31 August 2022

1

145,718

22,512

168,231

At 31 August 2021

-

217,836

12,433

230,269

There were no investment assets outside the UK.

Cost or valuation at 31 August 2022 is represented by:

Shares in

Cash and

group

Listed

settlements

undertakings

investments

pending

Totals

£

£

£

£

Valuation in 2022

-

55,068

-

55,068

Cost

1

90,650

22,512

113,163

1

145,718

22,512

168,231

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

Heswall Hall Trading Limited

Registered office: UK

Nature of business: Events

%

Class of share:

holding

Ordinary

100

31.8.22

31.8.21

£

£

Aggregate capital and reserves

(7

)

-

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Trade debtors

4,445

7,963

VAT

-

9,045

Prepayments and accrued income

1,675

2,850

6,120

19,858

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Bank loans and overdrafts (see note 14)

5,000

-

Trade creditors

2,348

10,122

Social security and other taxes

(517

)

-

VAT

2,168

-

Other creditors

520

520

Deferred income

3,072

3,293

Accrued expenses

3,658

6,533

16,249

20,468

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

31.8.22

31.8.21

£

£

Bank loans (see note 14)

41,159

50,312

14.

LOANS

An analysis of the maturity of loans is given below:

31.8.22

31.8.21

£

£

Amounts falling due within one year on demand:

Bank loans

5,000

-

Amounts falling between one and two years:

Bank loans - 1-2 years

5,000

5,000

Amounts falling due between two and five years:

Bank loans - 2-5 years

15,000

15,000