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2023-03-31-accounts

SEAHOUSES DEVELOPMENT TRUST

(A company limited by guarantee and not having a share capital)

CHARITY NUMBER 1075610

COMPANY NUMBER 3265921 (England and Wales)

TRUSTEES REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

SEAHOUSES DEVELOPMENT TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Name of Charity Seahouses Development Trust
Incorporation The organisation was incorporated as The North Sunderland
and Seahouses Development Trust on 18 October 1996 and
registered as a charity on 20 May 1999. Governing documents
were amended by special resolutions on 15 April 1998, 6 April
1999 and 19 October 2009 and the name changed to
Seahouses Development Trust on 21 November 2009.
Registered Charity No 1075610
Registered Company No 3265921
Directors / Trustees G Scott
A K G Wardropper
S Smith
S Hillian
C Brunt
M Jordan
G Renner-Thompson
Rev A Macpherson
M Archer (appointed 1stFebruary 2023)
E Angus (appointed 1stFebruary 2023)
Hon Treasurer C Brunt
Secretary S Hillian
Registered Office Seahouses Hub
Stone Close
Seahouses
Northumberland NE68 7YL
Independent Examiner Richard Alsept ACA
72 Kings Field, Seahouses, Northumberland NE68 7PA
Bankers Unity Trust Bank
Nine Brindley Place
Birmingham B1 2HB

SEAHOUSES DEVELOPMENT TRUST

CONTENTS
Page
Trustees Report 4 - 9
Independent Examiners Report 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 – 21

SEAHOUSES DEVELOPMENT TRUST

TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2023

Introduction

The Trustees present their report and the financial statements for the year ended 31 March 2023.

We have prepared the annual report and financial statements in accordance with the accounting policies set out in note 1 and in compliance with the charity’s governing document, the Companies Act 2006, and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2019.

This report covers the financial year ended 31 March 2023.

Over the past year the Covid-19 pandemic continued to have an impact on the services and activities the trust provided, it has taken much longer than expected for some of the more vulnerable in our community to have the confidence to join in community events. Our community cinema has been the most affected with fewer people attending and more watching films in their own homes. Thankfully audience numbers are slowly getting back to pre-pandemic numbers.

Financially, our trading subsidiary has continued to make a contribution to the Trust.

The Trust is in a better financial position than in the immediately preceding financial years.

Governance, Structure and Management

The Trust is a company limited by guarantee and is governed by a memorandum and articles of association.

The charity exists for the benefit of the inhabitants of Seahouses and surrounding areas.

Appointment of Trustees

Ten members can be appointed by nominating organisations although at the date of this report only two has chosen to do so. Up to five further members are elected from the community. Trustees can be co-opted during the year to fill vacancies but must then be reelected at the next Annual General Meeting.

As suggested above, over the last few years a number of the nominating organisations have chosen not to appoint a trustee, and this restricts the flexibility to get new trustees. We have therefore changed our constitution at an AGM to restrict the nominating organisations to those who have a direct interest and to have a greater number of elected trustees.

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SEAHOUSES DEVELOPMENT TRUST

Directors and Trustees

The trustees, who are also the directors for the purposes of company law, who served during the year and/or up to the date of approval of these accounts are:

G Scott (Elected)

G Renner-Thompson, nominated by Northumberland County Council A K G Wardropper (Elected)

S Smith, (Elected) S Hillian, nominated by North Sunderland Parish Council C Brunt (Vice Chair) (Elected) M Jordan (Elected) Rev A Macpherson (Elected) M Archer (Elected), appointed 1[st] February 2023 E Angus (Elected), appointed 1[st] February 2023

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 any winding up.

Trustees Induction

In October 2005, a trustees’ code of conduct was adopted. The code was introduced at the request of trustees to reflect the increased levels of accountability elsewhere in public life. The code brings awareness to all trustees about their responsibilities as directors of the company and what duties they have to fellow trustees. The code also aims to protect trustees in their duties on the management committee.

A welcome pack has also been prepared, including information from the Charity Commission and the National Council of Voluntary Organisations. This is distributed to all new trustees along with a copy of the memorandum and articles of association along with the latest financial statements and meeting minutes.

Trading subsidiary

The charity has one trading subsidiary which was established to generate profits to support for the charity through the provision of services to the community.

The subsidiary Seahouses Luxury Linen Hire was established and incorporated in 2018. This service acts as an agency for a large linen supply company based in Newcastle. The purpose is to provide local hotels, B&Bs and holiday lets with high quality serviced linen.

The trustees of the charity appoint the directors of the subsidiary company.

The Trust has not prepared consolidated accounts as the gross income of the group in the accounting period is less than the audit threshold under the Charities Act 2011.

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SEAHOUSES DEVELOPMENT TRUST

Risk Management

The trustees are aware of the need to assess the major financial risks to the organisation and have identified the current levels of unrestricted reserves as a potential risk. At 31 March 2023 the unrestricted reserves were approximately £47,000 (31[st] March 2022 £36,000). Whilst the level of unrestricted reserves has grown in recent years, the building of core reserves remains a priority. The charity’s reserves policy is to manage its affairs to maintain unrestricted reserves above a level of three months expenditure. This policy objective is currently being met.

During the period, the trustees reviewed the trading environment of its subsidiary.

Seahouses Luxury Linen Hire (SLLH) caters for the linen and laundry needs of the local holiday businesses. SLLH acts as an agent for an established linen hire service and is considered a low-risk commercial venture suitable to the risk profile of the trust.

Objectives and Activities

The Trust’s objects were to strengthen the community through serving individual needs and improving conditions in the local area. Five strategic areas have been identified:

Performance Review for the year to 31 March 2023 The Trust

The Trust continues to deliver a wide range of face-to-face community benefits including running a community cinema showing a wide variety of latest release films, and encouraged those who enjoy the cinema to join the film club.

In partnership with Northumberland County Council the trust delivered a book lending and delivery service, and a free computer and internet access at the Hub for anyone who needed it. Staff were able to offer basic IT help for those people who are less confident with computers.

The Trust also ran the very successful Seahouses Youth Project which on average catered for over 26 young people per week. The youth project offered a weekly youth club for the eight- to thirteen-year-olds and a Young Adventurers project for thirteen- to eighteen-year-olds interested in outdoor activities.

We ran a keep fit group, craft group and social group, supported and liaised with local groups using the hub including the Outdoor Bowling Club, Book Club, Proggy Mat Group, the Christmas Lights group, Computer Club & Bell View who hold weekly coffee mornings and monthly Fish & Chip lunches.

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SEAHOUSES DEVELOPMENT TRUST

We supported and managed 35 volunteers, produced the successful bi-monthly Newsletter which is distributed to 1,800 households, and hosted a community website.

The Trust received grants from the Lord Crewe’s Charity and Children In Need to support the Youth Project. Both charities provided a multi-year funding commitment which will secure the Youth Project and give time to find additional funding. The Trust received grants from the Ballinger Trust, the Community Foundation, the Knott Trust and the Co-op Community Fund

Seahouses Luxury Linen Hire

The results for the subsidiary are reported in note 4 to the accounts.

The linen hire service continues to grow and produce an income for the trust.

Financial Status

The Trustees believe that our core costs are manageable, and these were met from the activities at the Community Centre, including the Cinema, profits of the trading subsidiary, and specific core cost grants. We believe that the financial position is stable and can support applications for new funding.

The charity continues to build its core (unrestricted) reserves, and at 31[st] March 2023 these stood at £47,330 (2022: £35,824). This represents approximately six months’ core costs.

The trustees therefore believe that the charity has sufficient resources to continue operating for the foreseeable future and to meet its liabilities. The going concern basis has therefore been adopted in preparing the financial accounts, in accordance with the Statement of Trustees Responsibilities below.

Trustees’ Responsibilities

Charity law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charity and of its financial activities for that year, together with its assets and liabilities at the end of the period, and adequately distinguish any material special trust or other restricted fund of the charity. In preparing those financial statements the trustees are required to:

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SEAHOUSES DEVELOPMENT TRUST

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the charity, and enable them to ensure that the financial statements comply with applicable Accounting Standards and Statements of Recommended Practice and the regulations made under the Charities Act 2011.

The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as the trustees are aware, there is no relevant information needed by the company’s independent examiner, in connection with preparing his report, of which the company’s examiner is unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company’s examiner is aware of that information.

Objectives and future work

The trust seeks to provide a local community organisation with the capacity to create and take opportunities, develop, and manage projects, deliver services, and to create sustainable income streams to support these aims, for the social and economic benefit of the area and its inhabitants.

It will seek to be a focal point for identifying local needs, and then deciding which of these needs it can meet itself. It will also work with other partners, networks and organisations to address needs it cannot meet on its own.

In doing this it will seek:

It currently focuses on five projects, and also on continuing to improve its governance and finances:

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SEAHOUSES DEVELOPMENT TRUST

This report was approved by the Trustees on 21[st] September 2023

And signed on its behalf by

G Scott C Brunt

Trustee Trustee

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SEAHOUSES DEVELOPMENT TRUST

INDEPENDENT EXAMINER’S REPORT ON THE UNAUDITED FINANCIAL STATEMENTS TO THE TRUSTEES OF SEAHOUSES DEVELOPMENT TRUST.

I report to the Charity Trustees on my examination of the accounts of The Trust for the year ended 31 March 2023, which are set out on pages 11 to 21.

Respective responsibilities and basis of report

The trustees are responsible for the preparation of the accounts.

Having satisfied myself that the accounts of the charity are not required to be audited, 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 my examination giving me cause to believe:

I have no concerns and have come across no 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.

………………………………………

DATE 21[st] September 2023

Richard Alsept ACA 72 Kings Field, Seahouses NE68 7PA

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SEAHOUSES DEVELOPMENT TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 (including the Income and Expenditure Account)

Notes
INCOME
Income from:
Donations and fundraising
2
Charitable activities - Grants 2
Charitable activities
Rental income
3
Total charitable income
EXPENDITURE
Charitable activities
6
Charitable activities - Operation
of the Trust
Exceptional costs
Depreciation
Governance
Total charitable expenditure
Net income / (expenditure)
Transfers
Net movement in funds for the
year
Fund balances brought forward
Fund balances carried forward		 Unrestricted
£
4,072
39,206
31,347
13,512
88,137
88,137
74,677
-
1,554
400
76,631
11,506
-
11,506
35,824
47,330		 Designated
£
-
-
6,098
-
6,098
6,098
11,814
-
-
-
11,814
(5,716)
-
(5,716)
13,807
8,091		 Restricted
£
620
50,421
-
-
51,041
51,041
53,492
-
-
-
53,492
(2,451)
-
(2,451)
49,933
47,482		 TOTAL
TOTAL
2023
2022
£
£
4,692
18,198
89,627
89,219
37,445
18,099
13,512
9,407
145,276
134,923
145,276
134,923
139,983
104,252
- 11,923
1,554
2,071
400
400
141,937
106,723
3,339
28,200
-
-
3,339
28,200
99,564
71,364
102,903
99,564

The statement of financial activities includes all gains and losses in the year.

All income and expenditure derive from continuing activities.

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SEAHOUSES DEVELOPMENT TRUST

BALANCE SHEET AS AT 31 MARCH 2023

Notes
Fixed Assets
Tangible assets
9
Current Assets
Debtors
10
Cash at bank and in hand
Creditors: Amounts falling due
within one year
Creditors
11
Net Current Assets
Total Assets Less Current
Liabilities
Creditors: Amounts falling due
after more than one year
12
Net Assets
Funds
Unrestricted Funds
Designated Funds
14
Restricted Funds
13		 2023
£
4,072
101,064		 £
4,660
4,660




98,243
98,243
-
102,903

47,330
8,091
47,482
102,903		 2022
£
6,498
89,958

£
6,214
6,214




93,350
105,136
6,893		 96,456
3,106
99,564
-
99,564
35,824
13,807
49,933
99,564

For the financial period ended 31 March 2023, the company was entitled to exemption from audit under section 477(1) of the Companies Act 2006; and no notice has been deposited under section 476(1) requesting an audit. The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the period and of its profit or loss for the financial period in accordance with the requirements of section 394 and which otherwise comply with the Companies Act 2006, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 102, Section 1a Small Entities.

Approved by the Board on 21[st] September 2023 and signed on its behalf by:

......................................... …………………………

G Scott, Trustee C Brunt, Trustee

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting Policies 1.1. General information, Accounting basis and standards

The company is a private company, limited by guarantee, incorporated in England. The company constitutes a public benefit entity as defined by FRS 102

The address of the registered office is: Seahouses Hub Stone Close Seahouses Northumberland NE68 7YL

These financial statements were authorised for issue by the Board on 21[st] September 2023.

The financial statements are prepared under the historical cost convention and in accordance with the provisions of Financial Reporting Standard 102, Section 1a Small Entities, and the Charity Statement of Recommended Practice, (Charities SORP (FRS 102) 2019), as well as the Charities Act 2011.

The financial statements have been prepared on a going concern basis. The directors consider that the going concern basis is still appropriate, supported by the reasons set out in the Trustees Report, and the review of events after the year end, also as described in the Trustees Report.

1.2. Income

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

All incoming resources are included when the trust is legally entitled to the income and the amount can be quantified with reasonable accuracy.

1.3 Expenditure

Resources expended are recognised in the period in which they are incurred and include attributable VAT which cannot be recovered because the charity is not registered for VAT.

Charitable expenditure includes those costs incurred by the charity in the delivery of its activities and services for beneficiaries.

Governance costs include costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees.

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a specific activity are allocated directly, others appropriately.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Fixed assets are capitalised, at cost where the purchase price exceeds £200.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land & buildings nil Plant and machinery 25% reducing balance Fixtures and fittings 25% reducing balance Cinema equipment 25% reducing balance

1.5 Accumulated Funds

Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects of the Company and represent the unrestricted balance of funds generated from previous years trading.

Designated funds are unrestricted funds earmarked by the trustees for specific purposes.

Restricted funds are to be used for specific purposes as laid down by the donors and the expenditure which meets these criteria is charged to the relevant fund. Further explanation of the nature and purpose of each fund is provided in note 13 to the accounts.

2. Income: Grants and donations

Grantsanddonations:
NCC
Sir James Knott Trust
Heritage Lottery
Community Foundation
Ballinger Charitable Trust
Lord Crewe’s Charity
Children in Need
Cinema
grants/donations
Donations from
subsidiaries
Hadrian Trust
Job Retention Scheme
Other small grants &
donations etc.		 Unrestricted
funds
£
-
-
-
17,500
20,000
-
-
-
4,072
1,000
-
706
43,278		 Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Restricted
funds
£

2,000

-

-

-

10,000

26,000

10,500

620

-

-

-
1,921
51,041

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. Rental and other income

. Rental and other income
Rental income - Hub
Other charitable activities
Insurance claim
Interest receivable		 2023
£
13,512
30,685
6,350
410
50,957		 2022
£
9,407
18,085
-
14
27,506

4. Commercial trading operations and investment in trading subsidiary

The wholly owned subsidiary, Seahouses Luxury Linen Hire, which is incorporated in the United Kingdom pays its taxable profits to the charity by gift aid. The charity is the sole member and liability is limited to £1. A summary of the trading results of Seahouses Luxury Linen Hire Limited is shown below:

Summary profit and loss account
Turnover
Cost of sales
Gross profit
Donation to SDT
Administration expenses
Profit for the year		 2023
£
39,380
34,736
4,644
4,072
572
-

5. Commercial trading operations and investment in trading subsidiaries

A summary of income received by each company in the group is shown below. Group turnover was below the audit threshold set by the Charity Commission.

Luxury Linen Hire
Development Trust		 Turnover
£
39,380
145,276
184,656

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Total expenditure

Charitable activities:
Operation and development of
the trust
Governance costs		 Staff
costs
£
71,811
-
71,811		 Depreciation
£
1,554
-
1,554		 Other
costs
£
68,172
400
68,572		 Total
2023
£
141,537
400
141,937

Governance costs includes payments to the independent examiner of £400 (2022 - £400) for independent examination fees.

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Employees

Number of employees

The average monthly number of employees (full-time equivalents) during the year was:

Trust management
Youth project
Hub / Resource centre
Trading subsidiaries
Employment costs
Wages and salaries
Employer NI & pension
costs		 2023
Number
1
1
2
-
4
£
70,193
1,618
71,811		 2022
Number
1
1
2
-
4
£
65,681
1,750
67,431

There were no employees whose annual emoluments exceeded £60,000

8. Trustees

None of the trustees (or any person connected with them) received any remuneration or benefits from the charity during the year.

The charity’s regulations do not permit the payment of remuneration to trustees.

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. Tangible fixed assets

Cost
At 1 April 2022
Disposals
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Disposals
Charge for the year
At 31 March 2023
Net book values
At 31 March 2023
At 31 March 2022		 Land &
buildings

£
938,683
-
-
938,683
938,683
-
-
938,683
-
-		 Portacabin
£
20,265
-
-
20,265
19,995
-
68
20,063
202
270		 Plant &
Machinery
including
Cinema
£
103,896
-
-
103,896
99,030
-
1,216
100,246
3,650
4,866		 Fixtures
Fittings &
Equipment
£
41,544
-
-
41,544
40,466
-
270
40,736
808
1,078		 TOTAL
£
1,104,388
-
-
1,104,388
1,098,174
-
1,554
1,099,728
4,660
6,214

The Charity operates from its freehold property at the Seahouses Hub, Seahouses. The Charity holds the freehold of the land. However, a restrictive covenant is in place in favour of North Sunderland Parish Council governing use of the land and stating that in the event of sale of transfer, the property is to be offered back to the Council for the nominal price of 5p. On this basis, Messrs Smith Gore have valued the property in December 2014 at 5p. The Trustees have adopted this valuation in these accounts.

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Debtors

Trade debtors /
grants receivable
Amounts owed by trading subsidiaries		 2023
£
-
4,072
4,072		 2022
£
659
5,839
6,498

The amounts stated above include balances owed by related companies (see note 16).

11. Creditors: amounts falling due within one year

Trade creditors
Taxes and social security costs
Accruals		 2023
£
5,271
1,222
400
6,893		 2022
£
1,566
1,140
400
3,106

12. Creditors: amounts falling due after more than one year

The charity has no long-term creditors.

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Restricted Funds

Revenue Funds
Lord Crewe - website
Duke of
Northumberland
Ballinger Charitable
Trust (Core)
Lord Crewe’s Charity
(Youth Project)
Children in Need
(Youth Project)
Sir James Knott Trust
Youth Project others
Cinema Project
donations and grants
Lord Crewe - Courts
Community Fund -
Reaching Communities
NCC Thriving Together
Young Adventurers		 Balance
at 1 April
2022
£
-
2,112
7,500
1,500
11,545
12,500
500
6,976
-
-
-
7,300
49,933		 Incoming
resources
£
5,000
-
-
6,000
10,500
-
155
620
15,000
10,000
2,000
1,766
51,041		 Resources
expended
£
5,000
2,112
7,500
6,000
9,622
4,988
655
7,596
-
3,489
2,000
4,530
53,492		 Transfers/
Write off
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
31 March
2023
£

-

-

-

1,500

12,423

7,512

-

-

15,000

6,511

-

4,536
47,482

14. Designated Funds

First responders
Youth project
Newsletter
Walking to health		 Balance at
1 April
2022
£
477
12,154
1,076
100
13,807		 Incoming
resources
£
-
908
5,190
-
6,098		 Resources
expended
£
-
8,748
2,966
100

11,814		 Transfers
£

-

-

-

-

-		 Balance at
31 March
2023
£

477

4,314

3,300

-
8,091

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SEAHOUSES DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15. Analysis of net assets between funds

Fund balances at 31[st] March 2023 are represented by:

Fixed assets
Current assets		 Unrestricted
funds
£
4,458
42,872
47,330		 Designated
funds
£
202
7,889
8,091		 Restricted
funds
£
-
47,482
47,482		 Total
£
4,660
98,243
102,903

16. Related parties

At 31[st] March 2023 the amount of £4,072 was owed to the Trust by Seahouses Luxury Linen Hire Limited (SLLH), representing trading profits for the year ended 31[st] March 2023 to be donated to the charity under Gift Aid. This amount is payable to the charity by 31[st] December 2023. Trustees C Brunt and A Wardropper are directors of the company.

Page 21