Morvah Action for the Community and Arts Ltd
(A company limited by guarantee)
Charity Registration Number: 1072889 Company Registration Number: 3646591
Annual Report and Financial Statements for the Year Ended 31 January 2024
Morvah Action for the Community and Arts Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Examiner Report | 2 |
| Strategic Report | 3 |
| Trustees' Report | 4-5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8-15 |
| Morvah Action for the Community and Arts Limited | Morvah Action for the Community and Arts Limited |
|---|---|
| Reference and Administrative Details | |
| Chairman | Mr N W Smith |
| Trustees | Mr N W Smith |
| Mrs K Price | |
| Mr T J E Hichens | |
| Secretary | Mrs K Price |
| Charity Registration Number | 1072889 |
| Company Registration Number | 3646591 |
| The charity is incorporated in England and Wales | |
| Registered Office | The School House |
| Morvah | |
| Penzance | |
| Cornwall | |
| TR20 8YT | |
| Principal Office | The School House |
| Morvah | |
| Penzance | |
| Cornwall | |
| TR20 8YT | |
| Independent Examiner | Sarah Heath FMAAT |
| Nero Accountancy | |
| 27 Boskenna Road | |
| Four Lanes | |
| Redruth | |
| TR16 6LS |
Page 1
Morvah Action for the Community and Arts Limited
Independent Examiner's Report to the trustees of Morvah Action for the Community and Arts Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2024.
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:
-
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
-
the accounts do not accord with those records; or
-
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
-
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.
...................................... Sarah Heath FMAAT Accountant 27 Boskenna Road Four Lanes Redruth Cornwall TR16 6LS
29[th] November 2024
Page 2
Morvah Action for the Community and Arts Limited
Strategic Report
Policy on reserves
The charity intends to keep reserves at around the current level. The main purpose of the reserves is to cover future spending on building maintenance. Additionally, the reserves would cover all fixed expenditure if exceptional circumstances led to no trading activity for a year.
Principal funding sources
The charity raises funds through trading. The principal areas of trading are the café, and gallery and craft sales. Additionally, the annual Pasty Day is a very popular event for locals and holiday makers alike, and raises further funds for the charity. The year to January 2024 was successful, once again achieving a small surplus
Major items of expenditure are payments to artists and craft persons, and staff wages.
Restricted funds
Restricted funds are wholly represented by the building, Morvah Schoolhouse. There has been no restricted income or expenditure. Annual income is unrestricted, so available for use as the Trustees see fit.
Principal risks and uncertainties
Each year brings new economic challenges for the population as a whole. However the Trustees are confident that trading income will be close to the level of expenditure. Whilst we need to cover our costs, there is no requirement to make a surplus in the way a profit-making company would seek. It is important to balance the books over the medium term, but an occasional annual deficit will not impact on the future of the charity.
Page 3
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 2024.
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.
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.
Objectives, strategies and activities
The gallery continues to be a highly regarded space by artists. Forward bookings for the gallery are very positive. The cafe has been popular, and craft sales have also been successful.
Morvah Pasty Day was very well attended. As well as activities in the sunshine, the evening entertainment was well received. The event is shared between this charity and The Friends of Morvah Church, with funds raised being split between the two organisations.
Public benefit
The Schoolhouse continues to offer a community facility, with particular emphasis on promoting local arts and crafts. New ideas for educational courses and art related topics are continuously explored. Meetings and fundraising events (for organisations and causes other than this charity) have taken place within the building. The cafe is a focal point for the village.
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
Volunteers continue to play an important role in the running of the schoolhouse and external events.
Page 4
Morvah Action for the Community and Arts Limited
Trustees Report
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.
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees: Mr N W Smith Mrs K Price Mr T J E Hichens Chairman: Mr N W Smith Secretary: Mrs K Price
Structure, governance and management
Nature of governing document
The governing document of the company is its Memorandum and Articles of Association.
Organisational structure
Trustees delegate the day-to-day running of the Schoolhouse to the employed staff. Legal responsibility for maintaining the Objects of the Charity, and financial control, remains with the Trustees.
Principal Risks and uncertainties
Each year brings new economic challenges for the population as a whole. However the Trustees are confident that trading income will be close to the level of expenditure. Whilst we need to cover our costs, there is no requirement to make a surplus in the way a profit-making company would seek. It is important to balance the books over the medium term, but an occasional annual deficit will not impact on the future of the charity.
Employee involvement
The charity currently has four paid staff, whose principal role is to man the cafe and gallery, dealing with customers and taking payments. The staff also run events such as Pasty Day with the help of volunteers. The staff are very dedicated and go above and beyond their basic roles, in effect being managers, taking an active role in planning gallery displays and bookings, planning external events, and promoting the charity on social media. The Trustees very much appreciate the efforts of the staff.
Page 5
Morvah Action for the Community and Arts Limited
Statement of Financial Activities for the Year Ended 31 January 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains & Losses)
| Income and Endowments from: Note Donations and legacies 2 Other trading activities 3 Investment income 14 Total incoming resources Expenditure on: Raising Funds Total resources expended Net incoming resources / (expenditure) Net movements in funds Reconciliation of funds Total funds brought forward Total funds carried forward Income and Endowments from: Note Donations and legacies 2 Other trading activities 3 Investment income 14 Total incoming resources Expenditure on: Raising Funds 11 Total resources expended Net incoming resources / (expenditure) Net movements in funds Reconciliation of funds Total funds brought forward Total funds carried forward 9 |
Unrestricted Funds £ 307 77,988 100 78,395 -73,499 -73,499 4,896 4,896 46,247 51,143 Unrestricted Funds £ 191 72905 17 73,113 -68,260 -68,260 4,853 4,853 41,394 46,247 |
Restricted Funds £ 0 0 0 0 91,499 91,499 Restricted Funds £ 0 0 0 0 91,499 91,499 |
Total 2024 £ 307 77988 100 78,395 -73,499 -73,499 151,894 151,894 137,746 142,642 Total 2023 £ 191 72905 17 73,113 -68,260 -68,260 4,853 4,853 132,893 137,746 |
|---|---|---|---|
All of the charity's activities derive from continuing operations during the above two periods.
Page 6
Morvah Action for the Community aDd Arts Limited (Registration number: 3646591) Balanee Sheet at 31st January 2024 2024 2023 Notes Fixed aets Tangible assets 92,229 92.173 Current assets Debtors and prepayments Cash at bank and in hand 1.395 46, 744 52.303 Current liabilities Creditors: amounts falling due within one year 1,890 -2,566 Net curreDt assets 50,413 45,573 Net assets l (liabilities) 142.642 137, 746 Restricted funds 91,499 91,499 UDrestri¢ted funds 51,143 46,247 Total funds 142.642 13J, /46 For the financial year ending 31 January 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities: a) The tnjstees have not requlred the charity to obtain an audit of its arxounts for the year in question in accordance with sectuion 476. and b) The directors acknowledge thcir sponsIbl11t1eS for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements have been prepared in accordance with the spla1 provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The financial statements on pages 6 to 15 were approved by the trustee5, and authorised for issue on 16th January 25 and signed on their behalf by T Hitchens. These financial statements were approved by the Board of Trustecs on 16th January 25 and signed on their behalf by: ..T Hichens.. . Tnlstee (print name) Pa8w7
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
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 29th November 24
2 Income from donations and legacies
| Donations and legacies: Donations from individuals Total for 2024 Total for 2023 3 Income from other trading activities Trading income: come from sale of goods and services Total for 2024 Total for 2023 |
Unrestricted funds General £ 307 307 191 Unrestricted funds General £ 77,988 77,988 72,905 |
Total funds £ 307 307 191 Total funds £ 77,988 77,988 72,905 |
|---|---|---|
Page 8
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
4 Taxation
The charity is a registered charity and is therefore exempt from taxation
| 5 Tangible fixed assets Land & Buildings £ Cost At 1 February 2023 91,499 Additions At 31 January 2024 91,499 Depreciation At 1st February 2023 Charge for the year At 31 January 2024 Net book value At 31 January 2024 91,499 At 31 January 2023 91,499 6 Debtors Other debtors 7 Cash and Cash equivalents Cash at bank 8 Creditors: amounts falling due within one year Other creditors Accruals Page 9 |
Fittings & Equipment £ 2,513 300 2,813 1,839 244 2,083 730 674 2024 £ 52,303 2024 £ 890 1000 1890 |
Total £ 94,012 300 94,312 1,839 244 2,083 92,229 92,173 2024 £ 2023 £ 46,744 2023 £ 580 1,986 2,566 |
|---|---|---|
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
| 9 Funds Unrestricted funds General Restricted funds Total Funds Unrestricted funds General Restricted funds Total Funds 10 Analysis of net assets between funds Tangible fixed assets Current assets Current liabilities Total net assets |
Balance at 1 February 2023 Income Resources Resources expended Balance at 31 January 2024 £ £ £ £ 46,247 78,395 -73,499 51,143 91,499 91,499 137,746 78,395 -73,499 142,642 Balance at 1 February 2022 Income Resources Resources expended Balance at 31 January 2023 £ £ £ £ 41,394 73,113 -68,260 46,247 91,499 91,499 132,893 73,113 -68,260 137,746 Unrestricted Restricted Total Funds at funds funds 31-Jan General 2024 £ £ £ 730 91,499 92,229 52,303 52,303 -1,890 -1,890 51,143 91,499 142,642 |
|---|---|
Page 10
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
11 Expenditure on raising funds
a) Cost of trading activities
| Allocated support costs Allocated support costs |
Unrestricted funds General £73,499 £73,499 Unrestricted funds General £68,260 £68,260 |
Total 2024 £73,499 £73,499 Total 2023 £68,260 £68,260 |
|---|---|---|
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 to 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 on 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.
Page 11
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
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.
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.
Page 12
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
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.
13 Trustees' remuneration and expenses
No trustees have received remuneration or expenses, however, Nicholas Smith has partaken in art sales on the same commercial basis as other artists, without any special terms or favours.
14 Investment Income
| Interest receivable and similar income Interest receivable on bank deposits Total for 2024 Total for 2023 |
Unrestricted funds General £ 100 100 17 |
Total Funds at 31-Jan 2024 £ 100 100 17 |
|---|---|---|
Page 13
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
| Income and Endowments From: Donations and legacies (analysed below) Other trading activities (analysed below) Investment income (analysed below) Total income Expendigure on: Raising funds (analysed below) Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2024 £ 307 77,988 100 78,395 73,499 - 73,499 - 4,896 4,896 137,746 142,642 |
Total 2023 £ 191 72,905 17 73,113 68,260 - 68,260 - 4,853 4,853 132,893 137,746 |
|---|---|---|
Page 14
Morvah Action for the Community and Arts Limited
Notes to the Financial Statements for the Year Ending 31st January 2024
| Donations and legacies Donations UK Government Grants Other trading activities Coffee shop income Fundraising activities Gallery sales Craft sales Office services Gallery hire Sundry Income Investment income Bank interest receivable Raising funds 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 Fittings & Equipment |
Total 2024 £ 307 18,048 7,827 24,713 23,092 4,200 107 78,294 100 100 4,243 - 18,524 - 14,739 - 4,626 - 21,819 - 265 - 2,339 - 1,474 - 741 - 786 - 260 - 990 - 122 - 1,000 - 1,326 - 244 - 73,498 - |
Total 2023 £ 191 - 15198 6514 19,975 26,591 17 4,610 72,905 17 17 2,637 - 15,271 - 17,511 - 4,199 - 18,181 - 307 - 1,952 - 1,368 - 580 - 679 - 52 - 1,404 - 244 - 1,986 - 1,664 - 225 67,810 - |
|---|---|---|
Page 15