Bexhill Community Bus Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 01515143 (England and Wales)

REGISTERED CHARITY NUMBER: 1105202

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

BEXHILL COMMUNITY BUS LIMITED

(A COMPANY LIMITED BY GUARANTEE)

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

to

14

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 December 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 provide a community transport service for such inhabitants of Bexhill and its neighbourhood who are in need of such a service because of age, sickness or disability (mental or physical) or poverty or because of a lack of availability of adequate and safe public passenger services.

Public benefit

The Trustees have had due regard to public benefit guidance published by the Charity Commission, and in their opinion the report on the achievements and performance demonstrates that they have complied therewith.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The company has decided to invest in a new minibus, as replacement for the 2018 bus, in 2024. The new bus is expected to be delivered in the first half of 2024 and a deposit of £4,167 was paid in 2023.

It was particularly pleasing to see a large increase in passenger numbers in 2023 with a total of 33,260 passengers carried. This was an increase of 18% on 2022 and easily the best figure since 2019 (39,005). In view of the encouraging trend in passenger numbers and stable financial position the company was able to carry the £1.20 single fare structure into 2024. An increase is likely in 2025.

The company ran a passenger survey in January 2023. The overall satisfaction score of 9.70 (out of 10) was outstanding. There were several commendations for the service and numerous compliments for the drivers and conductors. A further survey will be conducted in 2024 or 2025.

The company will try to recruit further volunteers in 2024 to increase resilience when people are unable to fulfil their shifts through illness etc.

FINANCIAL REVIEW

Financial position

Fare receipts have increased by 7% this year, thanks to the increase in passenger numbers, and fuel duty rebates have increased as well. Overall income has decreased by 5% as there has been a drop in legacy and grants receipts.

The costs of running, maintaining, taxing and insuring the vehicles has reduced slightly this year mainly due to a saving in fuel costs. Overall, the total expenditure of the charity as a whole has reduced by just over £4,000.

The overall deficit before the unrealised gain on the shares was £7,328 compared to £9,393 last year.

The charity has again been able to increase its investments during the year with a view to generating both additional income and capital growth by transferring surplus funds for investment in the Handelsbank Multi Asset Fund. These investments have been further boosted by an increase in the value of the portfolio of £7,109. However, there is a commitment to purchase a new bus next year which will result in part of the portfolio being withdrawn.

The overall deficit for the year was just £219 compared to £35,052 last year (£25,659 of which was unrealised losses in the investment fund).This deficit is deducted from the general fund to give a balance of £289,972 to carry forward to next year.

Investment policy and objectives

Spare capital has been invested to produce investment income in a safe environment and the portfolio is managed by Handelsbanken Wealth & Asset Management, the Charity's stockbrokers. Income generated is currently being added to the capital in order to provide Capital growth towards the cost of new buses in the future.

Reserves policy

The Charity will retain sufficient reserves to enable it to deal with the timely replacement of buses and other working assets in line with its regular replacement policy. Reserves are invested with stockbrokers.

FUTURE PLANS

Plans for future periods

In 2024, the Company aims to:

- take delivery of a new bus,

- continue to recruit and train more volunteers,

- enable fare-paying passengers to pay by debit card and

- look for further sources of funding, including corporate funding and grants

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 Company was incorporated on 1st September 1980, subsequently it was agreed in that any taxable profits made would be covenanted to Bexhill Council of Voluntary Services. Due to the winding up of this organisation, the Company sought Charity Commission approval for registration as a Charity in its own right. The application was approved and the Company was registered as a Charity on 29th July 2004. The Charity/Company is controlled by its Memorandum and Articles of Association as amended by Special Resolutions dated 13th May, 9th July 2004 and 16th March 2022.

Structure and management

The power of appointing new or additional Trustees/Directors is vested in the Trustees/Directors.

Any policy decisions are taken by the Trustees/Directors. There were no changes in policy during the year.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01515143 (England and Wales)

Registered Charity number

1105202

Registered office

Unit 2

Beeching Close

Bexhill-on-Sea

East Sussex

TN39 3YF

Trustees

A L Hymans

S Hardie

J Pacitti

B Drayson

Mrs L Langlands

D Everiss

P Brett (resigned 11/4/2023)

Mrs E White

A Smale (appointed 11/4/2023)

Independent Examiner

Samantha Whiting FCA

Gibbons Mannington & Phipps LLP

Chartered Accountants

20 Eversley Road

Bexhill-on-Sea

East Sussex

TN40 1HE

Bankers

Lloyds TSB Bank

11/13 Devonshire Road

Bexhill-on-Sea

East Sussex

TN40 1AQ

Solicitors

Gaby Hardwicke

34 Wellington Square

Hastings, East Sussex

TN34 1PN

Stockbrokers

Handelsbanken Wealth & Asset Management

No 1 Kingsway, London

WC2B 6AN

Approved by order of the board of trustees on 28th March 2024 and signed on its behalf by:

S Hardie - Trustee

Independent examiner's report to the trustees of Bexhill Community Bus Limited ('the Company')

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

Samantha Whiting FCA

Gibbons Mannington & Phipps LLP

Chartered Accountants

20 Eversley Road

Bexhill-on-Sea

East Sussex

TN40 1HE

4th April 2024

2023

2022

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,374

826

2,200

8,167

Charitable activities

Fare receipts

34,057

-

34,057

31,823

Fuel duty rebates

3,699

-

3,699

2,040

Garage rents

2,000

-

2,000

1,600

Other trading activities

3

-

-

-

80

Investment income

4

1,621

-

1,621

2,067

Total

42,751

826

43,577

45,777

EXPENDITURE ON

Charitable activities

5

Community buses

35,354

826

36,180

40,139

Office and other costs

9,493

-

9,493

10,386

Garage costs

5,232

-

5,232

4,645

Total

50,079

826

50,905

55,170

Net gains/(losses) on investments

7,109

-

7,109

(25,659

)

NET INCOME/(EXPENDITURE)

(219

)

-

(219

)

(35,052

)

RECONCILIATION OF FUNDS

Total funds brought forward

290,191

-

290,191

325,243

TOTAL FUNDS CARRIED FORWARD

289,972

-

289,972

290,191

2023

2022

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

47,179

-

47,179

62,372

Investments

12

229,511

-

229,511

210,843

276,690

-

276,690

273,215

CURRENT ASSETS

Debtors

13

6,200

-

6,200

2,424

Cash at bank and in hand

9,816

-

9,816

15,707

16,016

-

16,016

18,131

CREDITORS

Amounts falling due within one year

14

(2,734

)

-

(2,734

)

(1,155

)

NET CURRENT ASSETS

13,282

-

13,282

16,976

TOTAL ASSETS LESS CURRENT LIABILITIES

289,972

-

289,972

290,191

NET ASSETS

289,972

-

289,972

290,191

FUNDS

16

Unrestricted funds

289,972

290,191

TOTAL FUNDS

289,972

290,191

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 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 28th March 2024 and were signed on its behalf by:

D Everiss - Trustee

S Hardie - 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.

Financial reporting standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

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.

Government grants are recognised when the charity becomes unconditionally entitled to the grant.

For legacies, entitlement is when probate is granted, the amount known, there are sufficient funds available for distribution or when a distribution is 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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

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

Leasehold property

-

Straight line over the life of the lease

Bus equipment

-

20% on cost

Office furniture and fittings

-

20% on cost

Community buses

-

25% on reducing balance

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.

Cash at bank

Cash at bank includes cash and short term highly liquid investments.

Debtors

Debtors are recognised at their recoverable amounts to which the charity is entitled.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement value.

2.	DONATIONS AND LEGACIES

2023

2022

£

£

Passenger and other donations

941

430

Gift aid tax recoverable

133

-

Legacies

-

3,000

Grants

1,126

4,737

2,200

8,167

Grants received, included in the above, are as follows:

2023

2022

£

£

East Sussex County Council

826

4,737

Government fuel grant

300

-

1,126

4,737

3.	OTHER TRADING ACTIVITIES

2023

2022

£

£

Profit from raffle

-

80

4.	INVESTMENT INCOME

2023

2022

£

£

Dividends and interest

1,621

2,067

5.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 6)

note 7)

Totals

£

£

£

Community buses

36,180

-

36,180

Office and other costs

8,435

1,058

9,493

Garage costs

5,232

-

5,232

49,847

1,058

50,905

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2023

2022

£

£

Vehicle tax and insurance

3,481

3,693

Fuel and oil

9,459

9,962

Vehicles repairs and servicing

6,063

5,890

Annual ticket software

1,584

-

Office rent, rates, light and heat

5,550

4,853

Office repairs

170

181

Garage expenses

5,232

4,645

Stationery, postage, computer expenses and advertising

920

1,057

Telephone (inc. broadband)

498

470

Sundry expenses

564

932

Professional fees

-

170

Fuel card charges

634

278

Medicals

-

110

Training costs

-

1,292

Depreciation

15,692

20,594

49,847

54,127

7.	SUPPORT COSTS

Governance

costs

£

Office and other costs

1,058

Support costs, included in the above, are as follows:

Governance costs

2023

2022

Office

and other

Total

costs

activities

£

£

Annual return fee

13

13

Accountancy

705

620

Independent examination fees

340

330

1,058

963

8.	NET INCOME/(EXPENDITURE)

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

2023

2022

£

£

Depreciation - owned assets

15,692

20,594

9.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

10.	STAFF COSTS

There were no staff costs for the year ended 31st December 2022 nor for the year ended 31st December 2021.

11.	TANGIBLE FIXED ASSETS

Office

furniture

Leasehold

Bus

and

Community

property

equipment

fittings

buses

Totals

£

£

£

£

£

COST

At 1st January 2023

58,976

3,206

1,406

175,980

239,568

Additions

-

-

499

-

499

At 31st December 2023

58,976

3,206

1,905

175,980

240,067

DEPRECIATION

At 1st January 2023

58,976

810

1,406

116,004

177,196

Charge for year

-

599

99

14,994

15,692

At 31st December 2023

58,976

1,409

1,505

130,998

192,888

NET BOOK VALUE

At 31st December 2023

-

1,797

400

44,982

47,179

At 31st December 2022

-

2,396

-

59,976

62,372

The leasehold property consists of a garage to house community buses on land leased from Rother District Council for a period of twenty one years from 23rd October 2000 at an initial rent of one peppercorn (if demanded).

12.	FIXED ASSET INVESTMENTS

Listed

investment

£

MARKET VALUE

At 1st January 2023

210,843

Additions

11,559

Unrealised gain/(loss)

7,109

At 31st December 2023

229,511

NET BOOK VALUE

At 31st December 2023

229,511

At 31st December 2022

210,843

At the year end there were no investment assets outside the UK.

The historical cost of the listed investments is £188,585.

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other debtors

4,215

-

VAT

192

303

Prepayments

1,793

2,121

6,200

2,424

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

1,686

202

Other creditors

1,045

950

Accrued expenses

3

3

2,734

1,155

15.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023

2022

£

£

Between one and five years

5,850

8,775

16.	MOVEMENT IN FUNDS

Net

movement

At

At 1/1/23

in funds

31/12/23

£

£

£

Unrestricted funds

General fund

290,191

(219

)

289,972

TOTAL FUNDS

290,191

(219

)

289,972

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

42,751

(50,079

)

7,109

(219

)

Restricted funds

Electronic ticket machines

826

(826

)

-

-

TOTAL FUNDS

43,577

(50,905

)

7,109

(219

)

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1/1/22

in funds

funds

31/12/22

£

£

£

£

Unrestricted funds

General fund

325,243

(37,825

)

2,773

290,191

Restricted funds

Electronic ticket machines

-

2,773

(2,773

)

-

TOTAL FUNDS

325,243

(35,052

)

-

290,191

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

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

43,004

(55,170

)

(25,659

)

(37,825

)

Restricted funds

Electronic ticket machines

2,773

-

-

2,773

TOTAL FUNDS

45,777

(55,170

)

(25,659

)

(35,052

)