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 2023

for

Heswall Hall Community Trust

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Statement of Financial Position

8

to

9

Notes to the Financial Statements

10

to

18

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 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

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

Since reopening in July 2021 after a closure of sixteen months, we have had two full financial years of trading. In common with all community halls and hospitality venues these years have been very challenging on several fronts.

Initially, especially during our first full year 2021/22, some of our regular users found it difficult to encourage their membership back to the classes and social meetings/gatherings. However, by December 2022 we felt very encouraged by the feedback and responses from the community to our new facilities and event offerings.

The 'cost of living crisis' resulting largely from the huge increases in fuel prices throughout 2022 and 2023 has impacted the Trust, but we have been flexible and adaptable in meeting these challenges. We continue to strive to provide sustainable resources and services for our community.

Throughout 2023 we have seen our existing regular users expanding their classes, we have acquired new regular users, new hirers and new visitors, including many younger residents. Repeat bookings for regular large annual events are increasing.

The range and variety of events we offer continues to grow, and we attract a wider and broader audience not only from Heswall but across Wirral, Cheshire, and North Wales. Our ongoing strategy aims to balance and meet the needs not only of current users, but also our next and future generations.

The bar and catering partnerships continue and working together we aim to provide a first class service for weddings, parties, functions and events. The new sound and lighting facilities installed in 2021 during the closure have enabled the Trust to offer enhanced packages for private functions making Heswall Hall a desirable and affordable venue.

The unpredictable nature of the economy however continues to influence our reserves and we must regularly review our overheads and costs. It is our aim to move as soon as possible towards an operational surplus and build up our reserves. Meanwhile, the Trust continues to invest in the fabric of the building and enhance the current facilities. This year we added, with help from a generous donation, the festoon lights around the outside of the building which really adds to the appeal of our 1970s building. In addition, the night-time economy in Heswall has really grown in the last two years and we have plans to install a more sophisticated CCTV system next year.

The Trust continues to support local businesses through our active membership of the Heswall and District Business Association (whose monthly meetings are held at the Hall).

Management Review

This has been another difficult year, and we are grateful to our Trustees, staff and volunteers for their help and support. Our small staff have unfailingly risen to the challenges that working in a large community hall brings. They are, most often, the everyday face of the Trust and the first point of communication for the public, we are very grateful for their hard work and dedication this year.

The Trust is open to new applications for Trusteeship and are actively promoting the benefits of becoming a Trustee and joining our Board. In line with Charity Commission recommendations we have identified skills which we believe will help us in our future development.

No doubt next year will bring more challenges, but the Trust has a clear strategy, plans for the future and a willingness and strong desire to deliver.

FINANCIAL REVIEW

Financial position

There was an operating deficit of £27,217 (2022 £37,611) and no gains on investments (2022 £9,134) leaving unrestricted reserves of £486,740 (2022 £500,935) and restricted reserves of £43,579 (2022 £43,579) at the year end.

Reserves policy

The Trustees of Heswall Hall have arrived at their reserves policy after taking into consideration the following factors.

A level of reserves is required in order to protect the future of the hall against the risk of unforeseen variances in income and for Maintenance, Refurbishment and Development works.

The level of reserves has been arrived at to ensure continuity of the Hall taking into account the monthly expenditure required for running costs and any to fund liabilities, should the hall be faced with unplanned closure.

There is a concern about the possible volatile nature of the income stream due to factors that are outside the control of the hall such as car park closures and competition from other event spaces in the area and feel it would be prudent to keep six months running costs in reserve to cover unforeseen emergencies.

The hall has invested funds that are managed with expert advice, in order to raise income for the charity and meet liabilities if so needed. These funds are readily accessible. The trustees have invested these funds with a view to an acceptable level of risk as to when the funds may be needed.

The reserves policy is reviewed by the trustees and adjusted accordingly on a regular basis but at least once a year.

The reserves exclude the restricted funds that are held by the hall.

In addition to maintaining an adequate level of reserves, the trustees are also looking at alternative income sources and new initiatives.

It is the policy of Heswall Hall Community Trust to keep reserves of £166,000; the breakdown is shown in the designated funds note.

These reserves will be monitored throughout the year and reviewed annually with reference to the budget process.

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 (resigned 1.4.24)

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) (resigned 27.3.23)

Ms B L Mather

H McSwaine (appointed 23.10.23)

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 22 April 2024 and signed on its behalf by:

Mrs K A Griffith - Trustee

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 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.

Stuart Kellner FCA

Dufton Kellner Limited

Chartered Accountants

Barnston House

Beacon Lane

Heswall

Wirral

Merseyside

CH60 0EE

23 April 2024

31.8.23

31.8.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

41,565

-

41,565

4,001

Charitable activities

Room hire

82,776

-

82,776

66,877

Refreshments

4,730

-

4,730

33,839

Community events income

1,931

-

1,931

104,431

General

-

-

-

6,540

Management charges

36,005

-

36,005

-

Investment income

2

2,772

-

2,772

2,636

Other income

-

-

-

3,313

Total

169,779

-

169,779

221,637

EXPENDITURE ON

Raising funds

3

2,021

-

2,021

2,897

Charitable activities

General

194,975

-

194,975

258,352

Other

-

-

-

(2,001

)

Total

196,996

-

196,996

259,248

Net gains on investments

-

-

-

9,134

NET INCOME/(EXPENDITURE)

(27,217

)

-

(27,217

)

(28,477

)

Other recognised gains/(losses)

Gains/(losses) on revaluation of fixed assets

13,022

-

13,022

(70,873

)

Net movement in funds

(14,195

)

-

(14,195

)

(99,350

)

RECONCILIATION OF FUNDS

Total funds brought forward

500,935

43,579

544,514

643,864

TOTAL FUNDS CARRIED FORWARD

486,740

43,579

530,319

544,514

31.8.23

31.8.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

325,776

-

325,776

357,676

Investments

10

181,605

-

181,605

168,231

507,381

-

507,381

525,907

CURRENT ASSETS

Debtors

11

45,889

-

45,889

6,120

Cash at bank and in hand

207

43,579

43,786

69,895

46,096

43,579

89,675

76,015

CREDITORS

Amounts falling due within one year

12

(32,534

)

-

(32,534

)

(16,249

)

NET CURRENT ASSETS

13,562

43,579

57,141

59,766

TOTAL ASSETS LESS CURRENT LIABILITIES

520,943

43,579

564,522

585,673

CREDITORS

Amounts falling due after more than one year

13

(34,203

)

-

(34,203

)

(41,159

)

NET ASSETS

486,740

43,579

530,319

544,514

FUNDS

15

Unrestricted funds

486,740

500,935

Restricted funds

43,579

43,579

TOTAL FUNDS

530,319

544,514

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 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 22 April 2024 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.

Theatre

-

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

31.8.23

31.8.22

£

£

Other fixed asset invest - FII

2,772

2,597

Deposit account interest

-

39

2,772

2,636

3.	RAISING FUNDS

Investment management costs

31.8.23

31.8.22

£

£

Portfolio management

2,021

2,897

4.	NET INCOME/(EXPENDITURE)

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

31.8.23

31.8.22

£

£

Depreciation - owned assets

38,943

38,021

Surplus on disposal of fixed assets

-

(5,314

)

5.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

6.	STAFF COSTS

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

31.8.23

31.8.22

Hall manager

1

1

Hall assistants / other staff

5

5

6

6

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

4,001

-

4,001

Charitable activities

Room hire

66,877

-

66,877

Refreshments

33,839

-

33,839

Community events income

104,431

-

104,431

General

6,540

-

6,540

Investment income

2,636

-

2,636

Other income

3,313

-

3,313

Total

221,637

-

221,637

EXPENDITURE ON

Raising funds

2,897

-

2,897

Charitable activities

General

258,352

-

258,352

Other

(2,001

)

-

(2,001

)

Total

259,248

-

259,248

Net gains on investments

9,134

-

9,134

NET INCOME/(EXPENDITURE)

(28,477

)

-

(28,477

)

Other recognised gains/(losses)

Gains/(losses) on revaluation of fixed assets

(70,873

)

-

(70,873

)

Net movement in funds

(99,350

)

-

(99,350

)

RECONCILIATION OF FUNDS

Total funds brought forward

600,285

43,579

643,864

TOTAL FUNDS CARRIED FORWARD

500,935

43,579

544,514

8.	INDEPENDENT EXAMINER'S REMUNERATION

The independent examination fee is £1,000 plus VAT.

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Computers

and

Theatre

property

& equipment

fittings

Totals

£

£

£

£

£

COST

At 1 September 2022

299,904

133,142

5,330

18,874

457,250

Additions

-

1,650

-

5,393

7,043

At 31 August 2023

299,904

134,792

5,330

24,267

464,293

DEPRECIATION

At 1 September 2022

59,586

24,920

3,695

11,373

99,574

Charge for year

29,991

5,930

817

2,205

38,943

At 31 August 2023

89,577

30,850

4,512

13,578

138,517

NET BOOK VALUE

At 31 August 2023

210,327

103,942

818

10,689

325,776

At 31 August 2022

240,318

108,222

1,635

7,501

357,676

10.	FIXED ASSET INVESTMENTS

Shares in

Cash and

group

Listed

settlements

undertakings

investments

pending

Totals

£

£

£

£

MARKET VALUE

At 1 September 2022

1

145,718

22,512

168,231

Additions

-

-

352

352

Revaluations

-

13,022

-

13,022

At 31 August 2023

1

158,740

22,864

181,605

NET BOOK VALUE

At 31 August 2023

1

158,740

22,864

181,605

At 31 August 2022

1

145,718

22,512

168,231

There were no investment assets outside the UK.

Cost or valuation at 31 August 2023 is represented by:

Shares in

Cash and

group

Listed

settlements

undertakings

investments

pending

Totals

£

£

£

£

Valuation in 2022

-

55,068

-

55,068

Valuation in 2023

-

12,969

-

12,969

Cost

1

90,703

22,864

113,568

1

158,740

22,864

181,605

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

31.8.23

31.8.22

£

£

Aggregate capital and reserves

1

(7

)

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.23

31.8.22

£

£

Trade debtors

4,962

4,445

Amounts owed by group undertakings

40,241

-

Prepayments and accrued income

686

1,675

45,889

6,120