Guardians of Strutts - Charities report - 22.2

REGISTERED COMPANY NUMBER: 06802918 (England and Wales)

REGISTERED CHARITY NUMBER: 1130427

Report of the Trustees and

Financial Statements For The Year Ended 31st May 2023

for

Guardians of Strutts

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

15

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 31st May 2023. 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 further or benefit the residents of Belper and the neighbourhood, without distinction of sex, sexual orientation, race or political, religious or other opinions by associating together, the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation leisure time occupations with the objectives of improving the conditions of life for the residents.

To secure and preserve the Herbert Strutt School Building on Derby Road, for the benefit and use of the inhabitants of the Township of Belper, in perpetuity, and in accordance with the original 1909 Strutt Conveyance.

To encourage the sustainability of the township of Belper.

Significant activities

The legacy of Covid pandemic was a period of uncertainty about the future of the Project financially. After lockdowns everyone was nervous, and bookings were minimal. The licence holders provided most of the income during this restart phase. After the summer of 2023 bookings began to increase and now are approaching the pre pandemic levels. Some user groups did not return but new groups have formed with regular bookings.

The primary source of income for the Project is from Strutts Centre Limited hiring rooms to local community groups and businesses. Overall SCL income from Room Hire was £106,358 which showed an increase of 42% from previous year. SCL donated £103,887 to the Guardians of Strutts, which was a 36% increase from last year.

Secondary sources of income are the catering and bar services that we provide to our users. Catering gave an income of £2337 with a profit of £703; a 30% return.

Bar takings of £3,872 resulted in a net profit of £2,799; a healthy return of 72%.

These returns are only possible because the staff who run the catering and bar are unpaid volunteers.

The Belper Strutts Society raised funds to support the Project by running events, providing refreshments and the sale of books.

A major activity of the Project is the repair and restoration of the buildings and site. After the pandemic our long-term sub-contractor, who did repairs, retired. Over the last 12 months more of this minor type of work has been carried out by volunteers. The accounts reflect this with a decreased spending on labour and more on materials. The volunteers who undertake this work have saved the Project significant sums of money, and hence we need to recruit more volunteers for this type of activity. The cost of major works has increased significantly as we have found with recent quotations for roof repairs.

Preparations were made for new licence holders to increase the proportion of our income from this category of user. An existing licence holder, Deafinately Women, was relocated from Rooms 57 & 58 to Rooms 25 & 30, partly due to a leaking roof, but mainly to accommodate extra staff and clients as their organisation has grown.

We changed our broadband provider and had to upgrade the computer systems. This required significant volunteer effort and expenditure on new hardware and software.

We have started using the Hallmaster room booking system to generate invoices directly from the room hire records. This should reduce the manual effort for the invoicing process, but it will take time to train our volunteers to use the new systems.

We have introduced a SumUp debit/credit card reader system for payments to Strutts. This card reader has also been used for catering and the bar, but the allocation of income to the separate categories of income needs to be clarified for the accounts. Also, we have introduced a new electronic till system and will integrate these systems with a new digital accounts package.

The intruder alarm system was replaced, as it became unreliable.

During the financial year we changed our building insurers who halfway through the period required a professional insurance reinstatement assessment of the buildings. The original reinstatement valuation was £4,246,179 and the new valuation is £11,823,000. This exercise cost us £954.86 for revaluation from Barrett Corp & Harrington Ltd and the premium was raised from £5,582.47 to £13,564 which represents an increase of 143%. This was a significant increase to our operating costs.

The largest operating costs to the Project are our gas and electricity energy costs, which were in the order of £20,000. Fortunately, we had negotiated a 3 year fixed price deal before the energy crisis hit the Country. At the conclusion of the contracts the price increase was predicted to be somewhere between double to four times that. The higher end of that range would increase our fixed costs to a level which would consume all our income, which threatened the viability of the Project. However, we have negotiated a new fixed price deal which is expected to cost "only" around £42,000 a year, which is still a significant increase.

At the same time, we have experienced problems with our two main gas boilers for the building heating. Quotations to replace a single boiler were up to £80,000, which was beyond our financial means without grant support. The climate crisis requires us to change from gas to renewable sources and hence new gas boilers are not the answer. Our resourceful volunteers have managed to repair the boilers in a cost-effective manner which hopefully will give us time to find a long-term solution.

The energy crisis seems to have replaced the pandemic as a cause for financial uncertainty. The outlook for the income over the next 12 months is of great concern but the policy of building up the reserves and not borrowing has been vindicated as we have no debt to service. The decision to increase prices and the number of licence holders shows that a mixture of community and commercial users makes financial sense under these circumstances. Our prudent approach will give the best chance of ensuring that the Centre will be available to the Community of Belper in the long term.

FINANCIAL REVIEW

Reserves policy

The Trustees have reviewed the reserves of the charity. The review considered the nature of the income and expenditure streams and the need to match variable income with fixed commitments and the nature of the reserves.

The unrestricted reserves increased to £188,196 in the year to 31st May 2023.

Restricted reserves show a slight increase to give a grand total of £14,401 which includes the Ryklow Trust account of £1,077.

Unrestricted funds increased by £30,663 compared with an increase of £12,816 in the previous year. This has resulted in an overall surplus to date of £202,597.

Strutts Centre Limited, gifted £103,877 to the GOS Charity, which represented a 36% increase over the previous year. This shows a significant recovery from the closures during the pandemic.

The Guardians have used £15,589 of the available funds to general repairs and improve facilities throughout the site during this period including:

Maintenance & improvements £9,668

Decoration Room 14

South Boiler Repairs

Roof Repairs

Intruder Alarm Refurbishment

Fire Alarm repairs

Computer System Upgrade

Floor Resealing Room 108

Relocation of licence holders

Statutory Maintenance £1,023

Fire Extinguishers - Check

Legionella Sample - Check

Lift Service

Service Gas Boilers

Capital Items £4,898

Rooms 25 & 30 Electrics

Room 30 toilets

Room 25 desk partitioning

Computing disc drives

Defibrillator

The Belper Strutts Society has continued to support the Project with volunteer effort and plans are being made for future fundraising activities. The Trustees thank the Society for all its efforts which will enable the Centre to look forward with optimism for the future of the Strutts Community Centre.

The trustees thank those who have supported the Project financially, especially all those individuals and groups who have used the building.

Most importantly of all, the Trustees want to thank all our loyal band of volunteers for their efforts during a very challenging period. The levels of business achieved in the year to 31st May 2023 would not have been possible without their dedication and hard work.

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.

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.

The Guardians of Strutts 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.

The Guardians of Strutts Charity owns the Herbert Strutt School site on behalf of the people of Belper and aims to restore the building to its former glory. It has a wholly owned trading company, called Strutt Centre Limited, which operates the site as a community centre and donates its entire operating surplus to the Guardians of Strutts. The Guardians are supported by a "friends' group", called the Belper Strutts Society, which raises funds and provides volunteers to help run the Strutts Community Centre.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06802918 (England and Wales)

Registered Charity number

1130427

Registered office

Strutts Centre

Derby Road

Belper

Derbyshire

DE56 1UU

Trustees

Miss J M Honey (resigned 17.2.23)

Mrs C H Maddock

E Manning

Dr N P McLeod

Mrs K Manning

G Henshaw

R P Downie (appointed 17.2.23)

Independent Examiner

Edward Wint

Dale Accounting Services Limited

64 High Street

Belper

Derbyshire

DE56 1GF

Approved by order of the board of trustees on 16th January 2024 and signed on its behalf by:

Dr N P McLeod - Trustee

Independent examiner's report to the trustees of Guardians of Strutts ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st May 2023.

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.

Edward Wint

Dale Accounting Services Limited

64 High Street

Belper

Derbyshire

DE56 1GF

16th January 2024

2023

2022

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

103,926

(2

)

103,924

77,578

Investment income

2

177

360

537

22

Other income

-

-

-

4,000

Total

104,103

358

104,461

81,600

EXPENDITURE ON

Charitable activities

GENERAL

73,440

937

74,377

67,752

NET INCOME/(EXPENDITURE)

30,663

(579

)

30,084

13,848

RECONCILIATION OF FUNDS

Total funds brought forward

157,533

14,980

172,513

158,665

TOTAL FUNDS CARRIED FORWARD

188,196

14,401

202,597

172,513

2023

2022

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

89,863

59,508

149,371

155,095

Investments

7

1

-

1

1

89,864

59,508

149,372

155,096

CURRENT ASSETS

Stocks

8

1,886

-

1,886

1,520

Debtors

9

38,572

-

38,572

37,090

Cash at bank

64,222

52,709

116,931

79,437

104,680

52,709

157,389

118,047

CREDITORS

Amounts falling due within one year

10

(6,348

)

(1

)

(6,349

)

(2,815

)

NET CURRENT ASSETS

98,332

52,708

151,040

115,232

TOTAL ASSETS LESS CURRENT LIABILITIES

188,196

112,216

300,412

270,328

CREDITORS

Amounts falling due after more than one year

11

-

(97,815

)

(97,815

)

(97,815

)

NET ASSETS

188,196

14,401

202,597

172,513

FUNDS

13

Unrestricted funds

188,196

157,533

Restricted funds

14,401

14,980

TOTAL FUNDS

202,597

172,513

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st May 2023 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 16th January 2024 and were signed on its behalf by:

N P McLeod - 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.

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

The value shown in Accounts for the Land and Buildings represents the legal fees, professional fees and renovation works to the building incurred since the transfer of the property from the Derbyshire County Council to the Charity in September 2009. The Land and Buildings is thought by the Trustees to have a market value between £1.5m and £3.6m.

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 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.

2.	INVESTMENT INCOME

2023

2022

£

£

Deposit account interest

537

22

3.	NET INCOME/(EXPENDITURE)

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

2023

2022

£

£

Depreciation - owned assets

10,623

10,975

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st May 2023 nor for the year ended 31st May 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st May 2023 nor for the year ended 31st May 2022.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

76,458

1,120

77,578

Investment income

13

9

22

Other income

4,000

-

4,000

Total

80,471

1,129

81,600

EXPENDITURE ON

Charitable activities

GENERAL

67,655

97

67,752

NET INCOME

12,816

1,032

13,848

RECONCILIATION OF FUNDS

Total funds brought forward

144,717

13,948

158,665

TOTAL FUNDS CARRIED FORWARD

157,533

14,980

172,513

6.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1st June 2022

134,226

53,186

30,941

5,494

223,847

Additions

1,390

1,795

-

1,714

4,899

At 31st May 2023

135,616

54,981

30,941

7,208

228,746

DEPRECIATION

At 1st June 2022

10,080

31,014

22,707

4,951

68,752

Charge for year

1,902

4,686

3,377

658

10,623

At 31st May 2023

11,982

35,700

26,084

5,609

79,375

NET BOOK VALUE

At 31st May 2023

123,634

19,281

4,857

1,599

149,371

At 31st May 2022

124,146

22,172

8,234

543

155,095

7.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

MARKET VALUE

At 1st June 2022 and 31st May 2023

1

NET BOOK VALUE

At 31st May 2023

1

At 31st May 2022

1

There were no investment assets outside the UK.

8.

STOCKS

2023

2022

£

£

Stocks

1,886

1,520

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Strutts centre

27,079

33,926

Prepayments

11,493

3,164

38,572

37,090

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Accrued expenses

6,349

2,815

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

2023

2022

£

£

Other loans (see note 12)

97,815

97,815

This amount is repayable to the Ryklow Charitable Trust in the event of the property or any part of the property being sold for reasons outside our charitable objectives.

12.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due in more than five years:

Repayable otherwise than by instalments:

Other loans more 5yrs non-inst

97,815

97,815

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.6.22

in funds

31.5.23

£

£

£

Unrestricted funds

General fund

157,533

30,663

188,196

Restricted funds

Ryklow Trust Fund

727

350

1,077

Lift Fund

12,335

(66

)

12,269

Restricted Fund

1,918

(863

)

1,055

14,980

(579

)

14,401

TOTAL FUNDS

172,513

30,084

202,597

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

104,103

(73,440

)

30,663

Restricted funds

Ryklow Trust Fund

350

-

350

Lift Fund

1

(67

)

(66

)

Restricted Fund

7

(870

)

(863

)

358

(937

)

(579

)

TOTAL FUNDS

104,461

(74,377

)

30,084

Comparatives for movement in funds

Net

movement

At

At 1.6.21

in funds

31.5.22

£

£

£

Unrestricted funds

General fund

144,717

12,816

157,533

Restricted funds

Ryklow Trust Fund

718

9

727

Lift Fund

12,432

(97

)

12,335

Restricted Fund

798

1,120

1,918

13,948

1,032

14,980

TOTAL FUNDS

158,665

13,848

172,513

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

80,471

(67,655

)

12,816

Restricted funds

Ryklow Trust Fund

9

-

9

Lift Fund

-

(97

)

(97

)

Restricted Fund

1,120

-

1,120

1,129

(97

)

1,032

TOTAL FUNDS

81,600

(67,752

)

13,848

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

Net

movement

At

At 1.6.21

in funds

31.5.23

£

£

£

Unrestricted funds

General fund

144,717

43,479

188,196

Restricted funds

Ryklow Trust Fund

718

359

1,077

Lift Fund

12,432

(163

)

12,269

Restricted Fund

798

257

1,055

13,948

453

14,401

TOTAL FUNDS

158,665

43,932

202,597

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

184,574

(141,095

)

43,479

Restricted funds

Ryklow Trust Fund

359

-

359

Lift Fund

1

(164

)

(163

)

Restricted Fund

1,127

(870

)

257

1,487

(1,034

)

453

TOTAL FUNDS

186,061

(142,129

)

43,932

14.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st May 2023.