Company registration number: 3646591 Charity registration number: 1072889
Morvah Action for the Community and Arts Limited
(A company limited by share capital) Annual Report and Financial Statements
for the Year Ended 31 January 2021
Morvah Action for the Community and Arts Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Strategic Report | 2 |
| Trustees' Report | 3 to 5 |
| Statement of Trustees' Responsibilities | 6 |
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 to 16 |
Morvah Action for the Community and Arts Limited
Reference and Administrative Details
Trustees Mrs J Le Vasseur Mrs A Jones Mrs H Hichens Mrs G Aldred Mrs PM Smith Principal Office The School House Morvah Penzance TR20 8YT Registered Office The School House Morvah Penzance Cornwall TR20 8YT The charity is incorporated in England and Wales. Company Registration Number 3646591 Charity Registration Number 1072889 Bankers HSBC 1 Green Market Penzance Cornwall TR18 2SD Independent Examiner D.J. Reynolds BA FCA Chartered Accountant 15 Alverton Street Penzance Cornwall TR18 2QP
Page 1
Morvah Action for the Community and Arts Limited
Strategic Report for the Year Ended 31 January 2021
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 January 2021, in compliance with s414C of the Companies Act 2006.
Financial review
Policy on reserves
There are no special reserves. There is a second bank account in which to keep a reserve fund to cover emergencies and unforeseen expenses. All funds in the possession of Morvah Action for the Community and Arts Limited are available to be spent in the pursuit of the objects of the charity.
We have not needed to call on this reserve during the year.
Principal risks and uncertainties
Financial risk
Realising the continued financial difficuties in general of the country, we must continue to be prudent with our finances, whilst recognising that we are a charity that should not hold excessive funds. Nevertheless, with an uncertain general financial future, we believe that we should endeavour to cut costs across the board. To this end, we will closely monitor all expenditure and reduce costs wherever possible.
The strategic report was approved by the trustees of the charity on 14 May 2021 and signed on its behalf by:
......................................... Mrs H Hichens Trustee
Page 2
Morvah Action for the Community and Arts Limited
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 January 2021.
Objectives and activities
Objects and aims
The charity's objects, as stated in the original Memorandum and Articles of Association of Morvah Action for the Community and Arts, read:
To promote community activity in Morvah and its adjoining parishes. To protect and develop Morvah's community identity. To realise the potential of the residents of Morvah and its adjoining parishes. To promote involvement in the Arts in Morvah and its adjoining parishes. To encourage and enable participation by all, regardless of age, gender, race or ability. To promote social intercourse. To maintain, improve and extend the provision of local amenities.
To this has been added:
The provision and maintenance of a community hall for the use of the inhabitants of Morvah and its surrounding parishes (the area of benefit) without distinction of political, religious or other opinions, including use for lectures and classes and for any other forms of recreation and leisure time occupation with the object of improving the conditions of life for the said inhabitants.
Objectives, strategies and activities
This year has seen our projected activities truncated. Due to the Coronavirus pandemic the Schoolhouse closed on 17 March 2020 and Morvah Pasty Day was also cancelled. In light of the current uncertainties, Morvah Pasty Day for 2021 in its traditional form has been cancelled, but it is hoped to hold an event however low key.
The gallery continues to be a highly regarded space by artists, and all the gallery bookings have been brought forward to 2021 with dates from May to December being fully booked.
Public benefit
We hope to be able to continue with the usual activities in the Schoolhouse and Morvah once it is legal and safe to do so. There should be sufficient funds available for the year ahead to cover the general maintenace of the building and facilities. New ideas for educational courses and art related topics will be explored, ensuring they are within the Objects of the charity. Due to there being increasingly fewer residents directly adjacent to the Schoolhouse, we continue to look at new ways to attract participation by people living further afield along with visitors who are staying at Morvah. As the community around us changes, we must evolve with it in order to continue to deliver our aims.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Use of volunteers
From the very beginning, volunteers have played an important part in the charity. Volunteer roles vary from administration to the manning of the events. We thank those who have given their time during the last year. Morvah Schoolhouse has gained two new volunteers, Mrs Gail Aldred who is now a Trustee of the charity and Mrs Sally Shaw who will take over from Mrs Jackie Packer in her bookkeeping role. We thank Jackie for all her hard work over the years and wish her well for the future.
Page 3
Morvah Action for the Community and Arts Limited
Trustees' Report
Going concern
The charity has received Coronavirus related grant funding from Cornwall Council which has enabled them to embark on the kitchen renovations necessary to ensure that the Schoolhouse complies with the guidelines once legally allowed to open.
The Trustees, in conjunction with the Management Committee, remain vigilant in order that the future of the Schoolhouse is secure. It is essential that we continue to maintain an operating profit by generating more income and reducing costs where possible.
The current assets are sufficient to maintain the Objects of the Charity for the forthcoming year.
The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Structure, governance and management
Nature of governing document
The governing document of the company is its Memorandum and Articles of Association.
Organisational structure
The Schoolhouse Management Committee
Charged by the Trustees with the responsibility of the day to day running of the Schoolhouse, the Management Committee continues to take overall control of the day to day running of the Schoolhouse.
In accordance with the Articles, all financial control responsibility for exercising the Objects of the Charity and legal responsibility remains with the Trustees. The Management Committee can suggest plans to the Trustees, but the final decision on how the Schoolhouse building is used by the Charity rests with the Trustees. The Management Committee's remit is the day to day running of the building which at present is operating as a Gallery and Cafe.
Major risks and management of those risks
Financial risk
Realising the continued financial difficuties in general of the country, we must continue to be prudent with our finances, whilst recognising that we are a charity that should not hold excessive funds. Nevertheless, with an uncertain general financial future, we believe that we should endeavour to cut costs across the board. To this end, we will closely monitor all expenditure and reduce costs wherever possible.
Assets Held
The Schoolhouse
The Schoolhouse, Morvah, purchased with grants from the Millennium Commission, the South West Regional Development Agency and the Penwith District Council, together with local fund-raising, was designed as a multi-purpose building, in order that it could be both a useful and much-used, year round amenity.
It continues to serve its original purpose as reported in previous reports.
The fortnightly hire charge for the gallery currently stands at £250 during the summer, with a winter charge of £150. Commission is 25% on sales made in the gallery (raised to 30% in 2020) and 35% in the craft shop.
Page 4
Morvah Action for the Community and Arts Limited
Trustees' Report
Employee involvement
Due to the Coronavirus pandemic, the Schoolhouse closed temporarily on 17 March 2020. Initially staff were put onto furlough. During the year Mrs Ann Westcott resigned in order to become a Trustee of the Charity. As it was not going to be possbile to reopen the Schoolhouse until all the restrictions had been lifted, the difficult decision was made to make the remaining members of staff redundant in order to help protect the charity's future.
Mrs Helena Clinch resigned as a Trustee on 6th August and we thank her for all she has done during her period in office and particularly during the first lockdown period.
Mrs Ann Westcott resigned as a Trustee on 23rd August.
Mr John Nurse resigned on 23rd November – having moved away from Cornwall.
Mr Nicholas Thomas sadly died in November 2020 – after many years as a constant and reliable trustee.
New Trustees Mrs Tish Smith and Mrs Helen Hichens were appointed on 1st September after their period of employment ended.
Mrs Gail Aldred has been added to the Trustees from 31st January 2021.
Continuing Trustees are Mrs Julia Le Vasseur and Mrs Anne Jones.
The annual report was approved by the trustees of the charity on 14 May 2021 and signed on its behalf by:
......................................... Mrs H Hichens Trustee
Page 5
Morvah Action for the Community and Arts Limited
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Morvah Action for the Community and Arts Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 14 May 2021 and signed on its behalf by:
......................................... Mrs H Hichens Trustee
Page 6
Morvah Action for the Community and Arts Limited
Independent Examiner's Report to the trustees of Morvah Action for the Community and Arts Limited
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 January 2021 which are set out on pages 8 to 16.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Morvah Action for the Community and Arts Limited (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 Morvah Action for the Community and Arts Limited 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:
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accounting records were not kept in respect of Morvah Action for the Community and Arts Limited as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
...................................... David Joseph Reynolds BA FCA Chartered Accountant
15 Alverton Street Penzance Cornwall TR18 2QP
14 May 2021
Page 7
Morvah Action for the Community and Arts Limited
Statement of Financial Activities for the Year Ended 31 January 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Activities for generating funds 4 Investment income 5 Total Income Expenditure on: Raising funds 14 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 Note Income and Endowments from: Donations and legacies 3 Activities for generating funds 4 Investment income 5 Total Income Expenditure on: Raising funds 14 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 |
Unrestricted funds £ 24,666 4,869 4 29,539 (22,118) (22,118) 7,421 7,421 26,874 34,295 Unrestricted funds £ 342 64,575 12 64,929 (61,878) (61,878) 3,051 3,051 23,823 26,874 |
Restricted funds £ - - - - - - - - 91,499 91,499 Restricted funds £ - - - - - - - - 91,499 91,499 |
Total 2021 £ 24,666 4,869 4 |
|---|---|---|---|
| 29,539 | |||
| (22,118) | |||
| (22,118) | |||
| 7,421 | |||
| 7,421 118,373 |
|||
| 125,794 | |||
| Total 2020 £ 342 64,575 12 |
|||
| 64,929 | |||
| (61,878) | |||
| (61,878) | |||
| 3,051 | |||
| 3,051 115,322 |
|||
| 118,373 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 12.
Page 8
Morvah Action for the Community and Arts Limited
(Registration number: 3646591) Balance Sheet as at 31 January 2021
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand 10 Creditors: Amounts falling due within one year 11 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 12 |
2021 £ 91,930 - 36,881 36,881 (3,017) 33,864 125,794 91,499 34,295 125,794 |
2020 £ 91,990 13 29,000 |
|---|---|---|
| 29,013 (2,630) |
||
| 26,383 | ||
| 118,373 | ||
| 91,499 26,874 |
||
| 118,373 |
For the financial year ending 31 January 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 8 to 16 were approved by the trustees, and authorised for issue on 14 May 2021 and signed on their behalf by:
......................................... Mrs H Hichens Trustee
Page 9
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
1 Charity status
The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: The School House Morvah Penzance Cornwall TR20 8YT
These financial statements were authorised for issue by the trustees on 14 May 2021.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with 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) and the Companies Act 2006.
Basis of preparation
Morvah Action for the Community and Arts Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
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Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Investment income
Bank interest is recognised when received.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £100 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Plant and machinery 25% reducing balance Fixtures and fittings 25% reducing balance
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 12
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
3 Income from donations and legacies
| Donations and legacies: Donations from individuals Grants, including capital grants; Government grants 4 Income from other trading activities Trading income: Coffee shop income Fundraising activities Gallery sales Craft sales Office services Gallery hire 5 Investment income Interest receivable and similar income: Bank interest receivable |
Unrestricted funds General £ 7 24,659 24,666 Unrestricted funds General £ 659 195 2,792 934 89 200 4,869 Unrestricted funds General £ 4 |
Total 2021 £ 7 24,659 24,666 Total 2021 £ 659 195 2,792 934 89 200 4,869 Total 2021 £ 4 |
Total 2020 £ 342 - |
|---|---|---|---|
| 342 | |||
| Total 2020 £ 15,698 4,603 18,700 20,208 31 5,335 |
|||
| 64,575 | |||
| Total 2020 £ 12 |
Page 13
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
6 Trustees' remuneration and expenses
No trustees have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
7 Taxation
The charity is a registered charity and is therefore exempt from taxation.
8 Tangible fixed assets
| Cost At 1 February 2020 Additions At 31 January 2021 Depreciation At 1 February 2020 Charge for the year At 31 January 2021 Net book value At 31 January 2021 At 31 January 2020 9 Debtors Other debtors 10 Cash and cash equivalents Cash at bank |
Land and buildings £ 91,499 - |
Furniture and equipment £ 1,739 85 |
Total £ 93,238 85 93,323 1,248 145 1,393 91,930 91,990 2020 £ 13 |
|
|---|---|---|---|---|
| 91,499 | 1,824 | |||
| - - |
1,248 145 |
|||
| - | 1,393 | |||
| 91,499 | 431 | |||
| 91,499 | 491 | |||
| 2021 £ - 2021 £ 36,881 |
||||
| 2020 £ 29,000 |
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Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
11 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals 12 Funds Balance at 1 February 2020 £ Unrestricted funds General 26,874 Restricted funds 91,499 Total funds 118,373 Balance at 1 February 2019 £ Unrestricted funds General 23,823 Restricted funds 91,499 Total funds 115,322 13 Analysis of net assets between funds Tangible fixed assets Current assets Current liabilities Total net assets |
Incoming resources £ 29,539 - 29,539 Incoming resources £ 64,929 - 64,929 Unrestricted funds General £ 431 36,881 (3,017) 34,295 |
2021 £ 109 1,000 1,908 3,017 Resources expended £ (22,118) - (22,118) Resources expended £ (61,878) - (61,878) Restricted funds £ 91,499 - - 91,499 |
2020 £ - 800 1,830 |
|
|---|---|---|---|---|
| 2,630 | ||||
| Balance at 31 January 2021 £ 34,295 91,499 |
||||
| 125,794 | ||||
| Balance at 31 January 2020 £ 26,874 91,499 |
||||
| 118,373 | ||||
| Total funds £ 91,930 36,881 (3,017) |
||||
| 125,794 |
Page 15
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
14 Expenditure on raising funds
a) Costs of trading activities
Unrestricted funds
| Unrestricted funds |
|||
|---|---|---|---|
| Note Cost of functions Payments to artists Payments to craft persons Coffee shop supplies Wages and salaries Rent and rates Light, heat and power Insurance Telephone and fax Printing and stationery Sundry expenses Maintenance and cleaning Advertising Accountancy fees Bank charges Depreciation of plant and machinery Depreciation of office equipment |
General £ 250 2,378 789 181 11,358 252 1,243 1,213 884 457 1 204 240 2,178 345 23 122 22,118 |
Total 2021 £ 250 2,378 789 181 11,358 252 1,243 1,213 884 457 1 204 240 2,178 345 23 122 22,118 |
Total 2020 £ 2,172 13,490 12,909 5,231 18,540 344 2,253 1,406 993 746 27 755 151 1,787 910 30 134 |
| 61,878 |
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