The Renfield Centre - Charities report - 22.2

REGISTERED COMPANY NUMBER: SC153177 (Scotland)

REGISTERED CHARITY NUMBER: SCO22996

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2022

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

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 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 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, thereby acting as manager and factor on behalf of the owner of the premises concerned, the Renfield Street Trust, itself a charity (SC042456). In a typical year it supports 280 organisations and with a footfall of over 60,000 individuals, contributes a substantial public benefit. However, the pandemic restrictions early in the year reduced the level of business: in 2022 around 220 organisations made use of the Centre. The charity is financially self-reliant and, in order to continue covering its costs in the long run, it aims to serve a mix of customers that can be charged for use of its accommodation on an 'ability to pay' basis. Thus, discounted rents for certain other registered charities, churches and self-help groups are cross-subsidised from higher rents paid by organisations that regularly operate in the commercial market for space for meetings, training events and conferences. Accordingly the quality of accommodation provided must be kept comparable to what is available in that market; with the agreement of the Trust any surpluses that arise are reinvested in the facilities to achieve that end.

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 2022, the Renfield Centre continued to be impacted by the restrictions imposed by both the U.K and Scottish Governments in response to the Covid pandemic, although the eventual easing of these allowed some recovery of normal business. However, the Centre again benefitted substantially from the use of premises by organisations which were exempt from these restrictions. Other than the Job Retention Scheme which was fully appreciated, The Centre did not qualify for official pandemic-related grant support but did take out a Bounce-back bank loan which it held in reserve as a safeguard against further loss of business, as various costs must be met to meet statutory obligations, whether or not accommodation is successfully let. This loan remained untouched at the year-end.

- Various other charities occupied serviced office accommodation provided at affordable rents: Glasgow Presbytery of the Church of Scotland (SCO07691); Headway Glasgow, (a Brain/Head injuries charity, SCO30113); Triple Tap Tech (a charity supporting visually impaired people SCO48975); Alpha (a Christian Charity 1086178); and WEA (SCO39239 ) who provide ESOL classes for refugees. However, covid restrictions reduced their activities and income and as result several required temporary rent reductions.

- Hall accommodation for congregational activities and administrative services continued to be 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, New Life Church, Home Church , Mana Church and the Norwegian Church. In the early part of the year Covid restrictions curtailed this. Most of the following regular customer groupings which had ceased meeting during 2020 due to the Covid restrictions began returning in 2022

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

- In education and training , charities such as Place2be, and academic institutions including Glasgow Universities, Glasgow School of Art , Strathclyde University , St Aloysius College and Girl Guiding Glasgow - A number of retirement fellowship groups that help reduce social isolation for older people made use of the Centre, such as the Civil Service Pensioners Association,

-Several hobby groups, including Paddle Steamers Preservation Society

- The Centre also continued to serve the general public by the organisation of a concert series in conjunction with Classical Musicians Scotland

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

- As Covid restrictions eased we were able to host the Glasgow Music Festival and Clyde Opera after the enforced break .

Performance

Recent years have been turbulent thanks to Covid. The surplus of nearly £17k in 2019, the Centre's most successful year both from a financial perspective, and in terms of growth in the customer base, was followed by a deficit of almost £23k in 2020.

This would have been much worse were it not for the excellent house-keeping and considerable efforts on the part of the Centre Manager, Administrator and Facilities Manager and a motivated Board of Directors. But thanks to a continuation of these efforts and seizing opportunities afforded by the delayed COP 26, together with flexibilities and changes in the Covid restrictions, 2022 brought a another surplus of £20k. The 2021 surplus was reduced despite the impact of COP 26, to £10k. By arrangement with the Renfield Street Trust, the owner of the premises, any surplus is reinvested in improving the facilities or spent on staff training.

With business slowly returning to its pre-Covid level the outlook is considerably brighter, though the continuing inflation, including rising energy costs in particular, will present a challenging economic context. Plans are being made to improve the marketing of the facilities offered via a new web site due to be launched before Easter 2023 and in particular to restore the Oasis Café, operated by the Centre's subsidiary company, Renfield Enterprises.

FINANCIAL REVIEW

Financial position

During the year Centre bookings increased from £126,028 in 2021 to £182,839 in 2022 helped by pandemic restrictions being lifted completely during the year. The charity received government assistance under the Job Retention Scheme of £17,833 in 2021 which was not repeated in the current year as that scheme ended in 2021. The charity continued to received financial support from both the Renfield Street Trust and St Andrew's West Parish Church which resulted in total income of £209,593 compared with £173,414 in the previous year. Total overheads amounted to £189,856 (2021 - £163,203) the increase due to increased wage costs as activities recovered and repair costs, which has resulted in a surplus for the year of £19,737 (2021 - surplus £10,211).

The directors are confident that income in 2023 will increase further as business activity returns to levels seen before the pandemic impacted business activity, and with costs controlled, 2023 will show further surpluses which will continue to be reinvested in improved facilities for users of the Centre.

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 now only provides catering services within the The Renfield Centre . The company ceased trading to the general public at the end of September 2020 due to the continued impact of the pandemic, and this activity has not recommenced, but the company has continued to provide services to users of the Renfield Centre. In the year to 31 December 2022 income was recorded as £12,499 up from £9,334 in the previous year and with continuing reduced overheads showed a profit of £5,220 compared with a profit of £6,590 in the previous year. The directors are considering options regarding future trading activities but this depends on a number of factors which cannot be predicted with any certainty as this point. In the meantime cash generated is being used to reduce the inter company indebtedness.

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 27 September 2023 and signed on its behalf by:

S A Kerrigan - Secretary

I report on the accounts for the year ended 31 December 2022 set out on pages seven to nineteen.

Respective responsibilities of trustees and examiner

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 (as amended). 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.

Amardeep Kalsi

The Institute of Chartered Accountants of Scotland

Stevenson & Kyles

Chartered Accountants

25 Sandyford Place

Glasgow

G3 7NG

27 September 2023

2022

2021

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

7,220

18,807

Charitable activities

Grants recieved

19,534

28,025

Other trading activities

2

182,839

126,582

Total

209,593

173,414

EXPENDITURE ON

Charitable activities

3

General

189,856

163,203

NET INCOME

19,737

10,211

RECONCILIATION OF FUNDS

Total funds brought forward

98,589

88,378

TOTAL FUNDS CARRIED FORWARD

118,326

98,589

2022

2021

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

10

18,926

20,104

Investments

11

100

100

19,026

20,204

CURRENT ASSETS

Debtors

12

64,550

66,249

Cash at bank

55,065

53,623

119,615

119,872

CREDITORS

Amounts falling due within one year

13

(20,315

)

(41,487

)

NET CURRENT ASSETS

99,300

78,385

TOTAL ASSETS LESS CURRENT LIABILITIES

118,326

98,589

NET ASSETS

118,326

98,589

FUNDS

15

Unrestricted funds

118,326

98,589

TOTAL FUNDS

118,326

98,589

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 27 September 2023 and were signed on its behalf by:

F G Hay - Trustee

Cash flows from operating activities

Cash generated from operations

1

20,436

27,284

Interest paid

(750

)

-

Net cash provided by operating activities

19,686

27,284

Cash flows from financing activities

New loans in year

-

25,000

Loan repayments in year

(18,244

)

-

Net cash (used in)/provided by financing activities

(18,244

)

25,000

Change in cash and cash equivalents in the reporting period

1,442

52,284

Cash and cash equivalents at the beginning of the reporting period

53,623

1,339

Cash and cash equivalents at the end of the reporting period

55,065

53,623

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2022

2021

£

£

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

19,737

10,211

Adjustments for:

Depreciation charges

1,178

1,726

Interest paid

750

-

Decrease in debtors

1,699

10,785

(Decrease)/increase in creditors

(2,928

)

4,562

Net cash provided by operations

20,436

27,284

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank

53,623

1,442

55,065

53,623

1,442

55,065

Debt

Debts falling due within 1 year

(25,000

)

18,244

(6,756

)

(25,000

)

18,244

(6,756

)

Total

28,623

19,686

48,309

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.

Government grants

Where applicable, grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and that the company will comply with all attached conditions. Where the grant income relates to a particular expense item, the grant income is recognised in the statement of financial activities over the same period as the expense it is intended to compensate.

2.	OTHER TRADING ACTIVITIES

2022

2021

£

£

Centre bookings

182,746

126,028

Other income

93

554

182,839

126,582

3.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 4)

note 5)

Totals

£

£

£

General

170,439

19,417

189,856

4.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2022

2021

£

£

Staff costs

91,221

79,428

Rates and insurance

13,011

11,666

Light and heat

21,002

19,024

Telephone

3,965

2,738

Postage and stationery

3,122

3,959

Sundries

9,771

9,847

Repairs

20,779

10,818

Cleaning

1,617

346

Equipment hire

4,337

3,870

Bank charges

436

399

Depreciation

1,178

1,726

170,439

143,821

5.	SUPPORT COSTS

Governance

Other 2

costs

Totals

£

£

£

General

750

18,667

19,417

6.	NET INCOME/(EXPENDITURE)

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

2022

2021

£

£

Depreciation - owned assets

1,178

1,726

7.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

8.	STAFF COSTS

2022

2021

£

£

Wages and salaries

89,353

77,523

Social security costs

725

932

Other pension costs

1,143

973

91,221

79,428

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

2022

2021

Management and administration

2

2

Caretakers

4

3

6

5

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 £36,971 (2021- £26,706).

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

18,807

Charitable activities

Grants recieved

28,025

Other trading activities

126,582

Total

173,414

EXPENDITURE ON

Charitable activities

General

163,203

NET INCOME

10,211

RECONCILIATION OF FUNDS

Total funds brought forward

88,378

TOTAL FUNDS CARRIED FORWARD

98,589

10.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 January 2022 and 31 December 2022

56,392

DEPRECIATION

At 1 January 2022

36,288

Charge for year

1,178

At 31 December 2022

37,466

NET BOOK VALUE

At 31 December 2022

18,926

At 31 December 2021

20,104

11.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

MARKET VALUE

At 1 January 2022 and 31 December 2022

100

NET BOOK VALUE

At 31 December 2022

100

At 31 December 2021

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 2022, the aggregate reserves of this company were £(56,759) (2021 - £(61,979)) and the company made a profit for the year of £5,220 (2021 - £6,590).

12.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

10,580

3,433

Other debtors

1,738

1,738

12,318

5,171

Amounts falling due after more than one year:

Amount due from subsidiary

52,232

61,078

Aggregate amounts

64,550

66,249

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 14)

6,756

25,000

Social security and other taxes

9,101

13,173

Accrued expenses

4,458

3,314

20,315

41,487

14.

LOANS

An analysis of the maturity of loans is given below:

2022

2021

£

£

Amounts falling due within one year on demand:

Bank loans

6,756

25,000

15.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.22

in funds

31.12.22

£

£

£

Unrestricted funds

General fund

98,589

19,737

118,326

TOTAL FUNDS

98,589

19,737

118,326

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

209,593

(189,856

)

19,737

TOTAL FUNDS

209,593

(189,856

)

19,737

Comparatives for movement in funds

Net

movement

At

At 1.1.21

in funds

31.12.21

£

£

£

Unrestricted funds

General fund

88,378

10,211

98,589

TOTAL FUNDS

88,378

10,211

98,589

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

173,414

(163,203

)

10,211

TOTAL FUNDS

173,414

(163,203

)

10,211

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

Net

movement

At

At 1.1.21

in funds

31.12.22

£

£

£

Unrestricted funds

General fund

88,378

29,948

118,326

TOTAL FUNDS

88,378

29,948

118,326

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

383,007

(353,059

)

29,948

TOTAL FUNDS

383,007

(353,059

)

29,948