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2020-08-31-accounts

Charity Registration No. 1081252 Company Registration No. 3990390 (England and Wales)

THE HASTINGS COMMUNITY TRUST TRUSTEES' REPORT AND ACCOUNTS FOR THE 12 MONTHS ENDED 31 AUGUST 2020

THE HASTINGS COMMUNITY TRUST

CONTENTS

Page
Legal and administrative information 1
Trustees' report 2 – 8
Statement of trustees' responsibilities 9
Independent Auditors report 10 - 11
Statement of fnancial activities 12
Balance sheet 13 - 14
Cashfow Statement 15
Notes to the accounts 16 - 26

THE HASTINGS COMMUNITY TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Martin Clarke (Chair)
Fiona Webb
Natalie Williams
Ollie Dyer
Andrea Harwood
Company Members Paul Mann
Steve Young
Adrian Pursglove
Elders Paul Mann
Steve Young
Charity number 1081252
Company number 3990390
Registered ofce Hastings Centre
The Ridge
Hastings
TN34 2SA
Senior Statutory Auditor John ThackerFCA DChA
Chariot House
44 Grand Parade
Brighton
East Sussex
BN2 9QA
Solicitors Grifth Smith
47 Old Steyne
Brighton
BN1 1NW
Bankers Barclays Bank Plc
South East Sussex Group
PO Box 78
TN34 1ZA

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THE HASTINGS COMMUNITY TRUST

TRUSTEES’ REPORT FOR THE 12 MONTHS ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The trustees, who are also directors for the purpose of company law, who served during the period were:

Martin Clarke (Chair) Natalie Williams Fiona Webb Ollie Dyer Andrea Harwood

None of the trustees had any beneficial interest in the company during the period.

Recruitment and Appointment of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as trustees.

The Articles stipulate that a trustee must be aged 18 or over and acknowledge to the satisfaction of the trustees his or her acceptance of, and belief in, the Statement of Faith.

New trustees must be recommended by the existing trustees. Trustees may not receive any remuneration for being a trustee other than professional services provided as permitted by the Articles. In practice trustees provide their services free of charge. In the event that any charge was made this would be noted in the accounts. Natalie Williams received remuneration for her roles as “Communications and Community Engagement Manager” until 31 March 2020 and then in her new role as “Community Engagement Director” from 1 April 2020.

The charity operates under the name of King’s Church Hastings and Bexhill. The members of the charity must be members of King’s Church Hastings and Bexhill (KC). New members can only be admitted with the approval of the trustees and other members. In practice the members are drawn from the elders for the time being of KC, subject to there being no conflict with other roles they fulfil. Adrian Pursglove, serves as a member.

Trustees are recruited from members of KC of several years’ standing. They are chosen for their ability to contribute to the efficient and effective management of the charity’s business. Skills presently represented include management, commerce, property, design, social work and communications. The trustees are alert to the need to expand their skill base as and when considered appropriate.

Trustee Induction and Training

Being appointed from members of KC, new trustees already have a relationship with the existing members and trustees. They are invited to read previous minutes to familiarise themselves with the manner in which KC operates. They bring their own skills to the trustee board and are encouraged to expand these on an ongoing basis. Future new trustees will be required to familiarise themselves with the Charity Commission guidance via “the Essential Trustee”. We maintain contact with a London law firm that provides training seminars to which all our trustees have access.

Risk Management

The trustees review the range of risks to which the charity is exposed in areas such as premises, children’s and young people’s work, pastoral, finance and outreach. Advice is taken from church members in these areas as well as from the charity’s accountants and other professional advisers. Policies for safeguarding children and vulnerable adults are published and are implemented. Financial management systems for cash handling and the authorisation of transactions are in place. Each area is subject to periodic review by comparison with best practice. Appropriate insurance is in place, via

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brokers competent in this field, to protect the interests of the charity, its employees and trustees. We have a robust risk register. Risks are identified and measures put in place to mitigate the risks accordingly.

Pay and Remuneration

The pay and remuneration of all staff is reviewed by the Trustees on an annual basis.

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THE HASTINGS COMMUNITY TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

Organisational Structure

Trustees

Meetings are held five times a year in which reports are received, as appropriate, from trustees and/or senior management team according to their areas of specialisation.

When necessary, sub groups are formed to address issues using church members and others, who are not trustees, but have specialised knowledge and skills. An example is the Safeguarding Team. A trustee is designated to oversee the work of each sub group.

Elders (Members)

The elders exercise day-to-day management of church affairs and the senior management team (SMT). Although primarily spiritual, their leadership role encompasses the whole range of church activities.

Senior Management Team

The senior management team comprises of two of the elders, the Operations Director and the Finance Director. They are responsible for the following areas, church activities and events, pastoral support, administration, finance and the management of the Hastings Centre (HC). SMT meets on a monthly basis.

Review meetings – these are held weekly offering the elders, SMT and other staff the opportunity to review activities, pray and share particular needs and concerns.

Related Parties

KC is part of New Ground (www.newgroundchurches.org), which has developed out of Newfrontiers (www.newfrontierstogether.org), a worldwide family of churches with whom KC relates at various levels.

KC is a member of the Evangelical Alliance, an association of mainstream UK Evangelical churches. www.ea.org.

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THE HASTINGS COMMUNITY TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

OBJECTIVES AND ACTIVITIES

The Objectives of the Charity (which is a public benefit entity) are to:

Activities undertaken in seeking to achieve these objectives include:

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Church Community Mission
Sunday meetings Link Lunch Foodbank Hastings Centre
Youth Totz Klub Connect groups Alpha
Newday Baby Basics Restore (formerly Anti- Overseas
Discipleship groups Reflect Human Trafficking) New Frontiers/New
CAP TLG Ground
Transom Trust Syrian Resettlement
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These have been formulated with regard to the Charity Commission’s guidance; generally, on public benefit and specifically on the advancement of religion.

Achievements and Performance

Details of the activities undertaken in pursuit of the objectives of KC as outlined above are:

CHURCH

Future plans

The elders are now seeking to implement the agreed vision and strategy for the church through to 2022. This includes proposals for extending the reach of the church beyond Hastings to the surrounding region known as “1066 Country”. Plans are underway to launch a fourth meeting venue in Central St Leonards in the near future, and longer term, in multiple other venues. The vision document includes details of the key characteristics of “what we do” as a church and “the ways we live” to demonstrate this. Regular preaching and news updates enable the church to be envisioned in this way.

Sunday meetings

In addition to our Hastings morning meeting and 6 O’clock Church, Bexhill was launched as a separate venue in January 2018. These are the major weekly gatherings of the whole church community and their friends and visitors, numbering on average around 500 people each week. There is ample opportunity for vibrant worship, Bible teaching, together with a range of high-quality activities and teaching for youth and children. Due to the Covid-19 pandemic, the fourth venue in Central St Leonards is still in the planning stage and will be launched in 2020/2021.

Youth

The church operates a full programme of activities for teenagers, some of which take place in our building, but some in other venues. The youth programme also includes residential camps away from home, during which the young people receive both training and undertake exciting and relevant activities together.

Newday

A major youth initiative involving over 8,000 young people. This event takes place annually near Norwich and is organized by the New Frontiers network of churches. Over a period of a week, the young people have opportunities to be better equipped for their Christian life, as well as time for fun and leisure together. In addition, they are involved in activities to serve and benefit the local community. Attendance at this initiative is partly subsidised by the charity as many of the church young people lack the necessary funds.

Discipleship groups

Various discipleship groups are scheduled into the church calendar to support people in finding out more about the Christian faith, joining King’s Church, enriching marriages, Bible studies etc.

COMMUNITY

Link Lunch

Lunch and entertainment provided for 60 over 55’s on a monthly basis. This is a highly-valued outing for many who are less active, isolated or registered disabled, with door-to-door transport provided for those who require assistance.

Totz Klub

Totz Klub is a community outreach project. The club is a high-quality playgroup for children with their carers, organised and supported by a team of church members. It is held in the largest room in the Hastings Centre and regularly accommodates around 100 children. A second group in the neighbouring town of Battle has now been launched.

Reflect

A team of trained advisors offers help, advice and support to women who are facing a crisis pregnancy, or who need post-abortion counselling.

Baby Basics

The aim of Baby Basics Hastings & Rother is to support expectant mothers who will struggle to meet the financial and practical needs of their new baby when he or she arrives. Pregnant women in need are referred by their community midwives or health visitors and are given a Moses’ basket full of essentials about a month before their due date. Most of the women who have been referred to us are either homeless or victims of modern slavery or domestic abuse

Restore (formerly Anti-Human Trafficking)

Raising awareness of the issue of modern slavery and trafficking and supporting victims. The Restore team offer practical support to those affected. The group have had particular recognition of their work from the police and local authorities across Sussex.

Christians Against Poverty (CAP)

Churches in Hastings & St Leonards joined together in 2013 to open a CAP (Christians Against Poverty) Debt Centre, and King’s is proud to be one of the seven partner churches. The Bexhill CAP Debt Centre has been running for even longer, and we now offer some financial support there as well. These two local CAP Debt Centres provide free help for residents struggling with overwhelming debt, offering an in-depth, caring service to people with spiralling personal debt, regardless of their faith or background. Every client is visited in their own home, CAP does all the negotiating with creditors, and local volunteers from the partner churches support each person face-to-face until the day they are debt free.

Transom Trust

Figures from the Department for Communities and Local Government state that Hastings has the 9th highest rate of rough sleeping in the country. Transom Trust is an inter-church project to provide supported accommodation and we are a partner church with them locally. Transom owns and operates a small number of two-bedroom flats in Hastings housing men who were previously homeless. Transom provides practical support to help them reintegrate into regular housing.

Foodbank

Distribution of food, fuel, toiletries, pet food and homeless support packs to people in need, through referral from frontline agencies. Demand for support from the Foodbank has increased rapidly over recent years and a part-time manager and a part-time coordinator are now employed.

Transforming Lives for Good (TLG)

Through national charity TLG (Transforming Lives for Good), King’s Church partners with a few local primary schools to provide one-to-one education mentoring for children and young people at risk of exclusion.

Syrian Resettlement Programme

In 2015 the Government announced that the UK would welcome and provide homes for 20,000 refugees camped around the borders of Syria. As part of the Syrian Resettlement Programme, Hastings Borough Council and Rother District Council have agreed to support and house 140 vulnerable Syrians. They do this with the help of local charities and faith groups, and King’s Church is the lead charity/faith group for Hastings & Rother. This national initiative is gradually winding down.

Connect Groups

Connect Groups are small groups of people that provide a relational connection point during the week, as well as a forum to encourage each member in their faith. Each group is approximately 12 people in size (although this does vary slightly) and meets every other week during term time. There are approximately 30 groups across all the venues of King’s Church.

Each group is organised by “hosts” - a couple of people who arrange the venues and facilitate the discussions. A “Life App” is distributed to all the hosts. This is a summary of a Sunday morning preach, and provides a central conversation piece where the group can discuss what was said and how it can apply to everyday life. The hosts are gathered together 3 times a year to review the groups and to receive relevant training.

Some Connect Groups undertake project-based activities such as craft fairs, knitting groups and coffee mornings.

MISSION

Hastings Centre

Exhibitions, conferences or concert space with a range of rooms to accommodate 20 to 800 people. This a great and well-used venue for community activities and generates interest from a wide range of users. Hastings Centre operates a coffee shop, with sports facilities, external play space for young children and flexible accommodation for general use. As a result, around 3000 people are making use of the building each week. Profits from the Hastings Centre Trading operation are invested in the various community engagement projects listed above.

Alpha

This is an internationally recognised course designed for those who wish to explore the Christian faith in greater depth. The church normally runs one or two of these courses per year. After completing the Alpha course and then subsequently joining the church one couple commented, ‘our lives have been transformed and general emotional stability has substantially improved’ .

Overseas

We have strong friendship links with a Newfrontiers church in Mumbai, India and other overseas links in Montpelier, France; Davos, Philippines; and Valencia, Spain. KC derives considerable benefit from these links through cultural exchange, a developing worldview, opportunities to assist in areas of need and providing valuable lessons in diversity.

New Ground

As part of the New Ground apostolic sphere of churches we are linked to a range of overseas initiatives that the network is pursuing. New Ground is led by David Holden, who is based in Sidcup and who travels widely in support of these initiatives. Countries with whom we have New Ground links include France, Romania, Germany, Italy, Belgium, The Netherlands and Zimbabwe.

Building Development

Completed in February 2020, the main auditorium of the Hastings Centre was refurbished as a modern 500-seater meeting space. The space is used for church meetings and is also available for hire for conferences, exhibitions and concerts. A warehouse and a meeting room have been built adjacent to the new auditorium. Several of the smaller meeting rooms of the Hastings Centre were renovated, with work completed in July 2020, to form a designated space for community and social action projects. Baby Basics, Foodbank and many of the other church community projects will be able to operate from this hub known as “Hope@King’s”. Agencies such as Citizens’ Advice and counselling services will be welcome to use the space on a regular basis. Due to the impact of Covid-19 the expansion of the car park to accommodate another forty cars has been delayed.

COVID-19 Response

Immediate steps were taken when lockdown was imposed on 23 March 2020. Church services, meetings and pastoral communication moved to an online format, and the majority of trading ceased for Hastings Centre Trading Ltd. The building was permitted to continue to take bookings for NHS Blood Donation Services and also remained open to facilitate the operation of frontline services such as Baby Basics Hastings and Hastings Foodbank.

The Government’s Coronavirus Job Retention Scheme has been utilised, with 20 staff being placed on furlough at the height of the lockdown. The remaining staff mostly worked from home, apart from those who were required to work in the Hastings Centre to enable it to operate for the services described above and to provide a member of the pastoral team to be available and present in the building. As lockdown measures are easing, the Government guidance is being reviewed and implemented in order to facilitate safe re-opening where possible. It was decided that church would continue in its online format until at least the autumn of 2020, but Hastings Centre Trading Ltd. began to re-open for permitted bookings.

THE HASTINGS COMMUNITY TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

FINANCIAL REVIEW

The activities described above are possible only as a result of church members giving freely of their time and money. Volunteer activity is particularly important in the areas of meeting stewarding and management, children’s and youth activities and all the community activities of the charity.

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

Principal Funding Sources

Voluntary giving, Income from Hastings Centre, Special Gift Days, Gift Aid

Investment Policy

KC seldom has significant surplus funds that are not required month-by-month. Cash balances are held in interest bearing accounts with our bankers. In these circumstances, there is no requirement for a more developed investment policy.

Reserves Policy

The trustees review the reserves policy regularly in line with Charity Commission guidelines. KC maintains three levels of reserves; restricted funds, designated funds and free reserves.

RESTRICTED FUNDS

These represent donations for specific activities and our policy is to expend these funds as quickly as possible so as to benefit the recipients. At 31 August 2020 the restricted funds stood at £389,421 (August 2019 - £253,114).

DESIGNATED FUNDS

At various times it has been considered beneficial by the trustees to allocate reserves to particular projects. Budgets are prepared and expenditure distributed in line with these budgets. At 31 August 2020 the designated funds stood at £432,537 (August 2019 - £178,742).

FREE RESERVES

Free reserves are undesignated, and the charity’s policy is to maintain these at a level between two to three months of regular church income. The year-end reserves figure is £81,301 (August 2019 - £89,195).

The trustees are satisfied that the charity is a going concern and that there are no material uncertainties about the charity’s ability to continue in operation.

Minimum Capitalisation Policy

In common with other charities, KC reviews carefully whether or not to capitalise expenditure on an individual basis to ensure a fair value is shown in the balance sheet. Generally, we do not capitalise items below £1,000.

Remuneration

During the reporting period the number of salaried staff employed was 48. Only 7 of these persons were working full time and the average full-time equivalent headcount was 24. No staff members received employee benefits of more than £60,000. The total employee benefits received by the employed trustees and key management personnel (Gross pay + Pension) (1 trustee & 3 elders, 4 persons in total), was £126,778.

THE HASTINGS COMMUNITY TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

The Hastings Centre has now been operating as a separate trading company since September 2014 and has established a strong local brand. The company is a wholly owned subsidiary of Hastings Community Trust. Over the last year the activities for which the Hastings Centre is hired out have been reviewed to maintain profitability, with a particular review on the operating structure of the Hastings Centre’s coffee shop, Coffee Box.

Independent Auditors

All the trustees have taken all steps that they ought to have taken to make themselves aware of any information needed by the charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information.

A resolution proposing that Chariot House be reappointed as Independent Auditors of the charity will be put to the Annual Meeting.

On behalf of the board of trustees

Martin Clarke 11 August 2021

THE HASTINGS COMMUNITY TRUST

STATEMENT OF TRUSTEES’ RESPONSBILITIES

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the charitable company's state of affairs at the end of the year and of its income and expenditure for that period.

In preparing those accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE HASTINGS COMMUNITY TRUST

Opinion

We have audited the financial statements of The Hastings Community Trust (the 'charitable company') (the ‘parent company’) and its subsidiaries (‘the group’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you were:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Thacker FCA DChA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: .............................................

THE HASTINGS COMMUNITY TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE 12 MONTHS ENDING 31 AUGUST 2020

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12 months
Unrestricted Designated Restricted Total to 31 August
funds funds funds 2020 2019
Notes £ £ £ £ £
Income and endowments from:
Donations and legacies 2 513,673 179,881 527,470 1,221,024 548,465
Charitable Activities 3 2,970 - - 2,970 8,092
Other trading activities 4 293,393 0 - 293,393 462,176
Investments 5 1,000 19 - 1,019 849
Total Income and endowments £ 811,036 £ 179,900 £ 527,470 £ 1,518,406 £ 1,019,582
Expenditure On: 6
Raising Funds 227,774 - 0 227,774 282,437
Charitable activities:
Church 385,419 - 4,982 390,401 415,075
Community 121,191 - 87,062 208,253 190,043
Mission 80,625 23,292 159,199 263,116 165,156
Total charitable expenditure 587,235 23,292 251,243 861,770 770,274
Total Expenditure 815,009 23,292 251,243 1,089,544 1,052,711
Net Income/(expenditure) (3,973) 156,608 276,227 428,862 (33,129)
Transfers between funds 42,734 £ 97,187 £ (139,920) - -
Net movement in funds 38,761 253,795 136,307 428,862 (33,129)
Fund balances at 31 August 2019 £ 1,035,834 £ 178,742 £ 253,114 £ 1,467,690 1,500,819
Fund balances at 31 August 2020 £ 1,074,594 £ 432,537 £ 389,421 £ 1,896,552 £ 1,467,690
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The statement of financial activities also complies with the requirements for an income and expenditure accounts under the Companies Act 2006

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THE HASTINGS COMMUNITY TRUST

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020

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2020 2019
Notes £ £ £ £
Fixed assets
Tangible assets 10 1,785,282 1,298,364
Current assets
Debtors 12 127,812 88,652
Cash at bank and in hand 717,646 370,145
845,458 458,797
Creditors: amounts falling due within
one year 13 (104,294) (65,159)
Net current assets 741,164 393,638
Total assets less current liabilities 2,526,447 1,692,003
Creditors: amounts falling due after
more than one year 14 (629,895) (224,313)
Net assets £ 1,896,552 £ 1,467,690
Income funds
Restricted funds 16 389,421 253,114
Designated funds 17 432,537 178,742
Other charitable funds 1,074,594 1,035,834
£ 1,896,552 £ 1,467,690
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The accounts were approved by the Board on 11 August 2021

Martin Clarke Chair of Trustees

The Hastings Community Trust, a company limited by guarantee. Registered in England No. 3990390 Registered as a charity No. 1081252

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THE HASTINGS COMMUNITY TRUST

(Company Number: 3990390)

BALANCE SHEET AS AT 31 AUGUST 2020

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2020 2019
Notes £ £ £ £
Fixed assets
Tangible assets 10 1,785,282 1,298,364
Investments 11 1 1
Current assets
Debtors 12 164,724 110,040
Cash at bank and in hand 688,392 342,292
853,116 452,332
Creditors: amounts falling due within
one year 13 (95,378) (39,794)
Net current assets 757,738 412,538
Total assets less current liabilities 2,543,021 1,710,903
Creditors: amounts falling due after
more than one year 14 (629,895) (224,313)
Net assets 1,913,126 £ 1,486,590
Income funds
Restricted funds 16 389,421 253,114
Designated funds 17 432,537 178,742
Other charitable funds 1,091,168 1,054,734
1,913,126 £ 1,486,590
-
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The accounts were approved by the Board on 11 August 2021

Martin Clarke

Chair of Trustees

The Hastings Community Trust, a company limited by guarantee. Registered in England No. 3990390 Registered as a charity No. 1081252

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of accounts

These account have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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THE HASTINGS COMMUNITY TRUST

CONSOLIDATED CASHFLOW STATEMENT AS AT 31 AUGUST 2020

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2020 2019
£ £
Cash flows from operating activities:
Net Income/(expenditure) 428,862 (33,129)
Adjustments for:
Depreciation 46,993 35,609
(Increase)/Decrease in Debtors (39,160) (2,799)
Increase/(Decrease) in Creditors 39,135 3,859
Net cash generated from operating activities 475,830 3,540
Cash flows from Investing activities:
Purchase of tangible fixed assets (533,914) (16,071)
Net cash used in investing activities (533,914) (16,071)
Cash flows from Financing activities:
Repayment of Bank Loan 405,585 (37,473)
Net cash used in financing activities 405,585 (37,473)
Net increase/(decrease) in cash and cash equivalents 347,501 (50,003)
Cash and cash equivalents at beginning of year 370,145 420,148
Cash and cash equivalents at end of year 717,646 370,145
Analysis of changes in net debt
Cash and cash equivalents
Cash at bank and in hand 717,646 370,145
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THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

The accounts have been prepared under the historical cost convention.

The accounts have been prepared in accordance with applicable accounting standards, the Statement of Recommended Practice, "Accounting and Reporting by Charities", FRS102 issued 2015 and the Companies Act 2006.

The Charity's own Statement of Financial Activities has been omitted under section 408 of the Companies Act 2006.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Where appropriate, 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 in these accounts.

Investment income is included when receivable.

Charitable activities comprises those costs incurred by the charity in the delivery of its activities for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis as described within note 6.

Freehold land is not depreciated Freehold buildings 2% Straight Line Basis Plant and equipment 15% Straight Line Basis Fixtures, fittings and office equipment 15% Straight Line Basis

1.5 Pensions The charity operates a defined contribution pension scheme under which contributions by employees and by the company are held in trust funds separate from the charity's finances. The pension cost charge represents the contributions payable by the charity under the rules of the scheme.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts. Unrestricted funds are available for use at the discretion of the trustees in furtherance of the objectives of the charity.

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THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

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2 Income from Donations and Legacies
Unrestricted Designated Restricted Total Total
funds funds funds 2020 2019
£ £ £ £ £
Donations and Legacies £ 513,673 £ 179,881 £ 527,470 £ 1,221,024 £ 548,465
Donations and Legacies
Unrestricted funds:
Weekly and monthly offerings 364,849 348,759
Tax repayments 68,515 55,405
Grants and other income 80,309 1,636
£ 513,673 £ 405,800
Designated funds:
Weekly and monthly offerings and gift days 179,881 8,151
Tax repayments - -
Grants and other income - -
£ 179,881 £ 8,151
Restricted funds:
Weekly and monthly offerings 341,637 122,735
Tax repayments 38,773 11,779
Grants and other income 147,060 -
£ 527,470 £ 134,514
3 Income from Charitable Activities
Unrestricted Designated Restricted Total Total
funds funds funds 2020 2019
£ £ £ £ £
Income from activities to
further charity's objects £ 2,970 - - £ 2,970 £ 8,092
Charitable Activities
Unrestricted funds:
Book sales 251 675
Regular activities 2,719 5,446
Special events 0 1,971
£ 2,970 £ 8,092
----- End of picture text -----

17

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

----- Start of picture text -----
4 Income from other Trading Activities
Unrestricted Designated Total Total
funds funds 2020 2019
£ £ £ £
Trading Activities - Hastings Centre £ 293,393 0 £ 293,393 £ 462,176
5 Income from Investments
2019 2019
£ £
Investment receivable - unrestricted fund 1,000 556
Investment receivable - designated fund 19 293
£ 1,019 £ 849
6 Expenditure
Staff Depreciation Other Total Total
costs costs 2020 2019
£ £ £ £ £
Costs of Raising funds
Costs of activities to raise funds 116,694 22,960 88,120 227,774 282,437
Charitable activities
Church
Activities undertaken directly 112,344 4,700 21,691 138,735 145,646
Support costs 178,094 11,162 62,410 251,666 269,429
Total 290,438 15,862 84,101 390,401 415,075
Community
Activities undertaken directly 145,166 5,287 16,230 166,683 122,919
Support costs 19,506 1,224 20,840 41,570 67,124
Total 164,672 6,511 37,070 208,253 190,043
Mission
Activities undertaken directly 510.00 196.00 229,871 230,577 125,966
Support costs 25,504 1,470 5,565 32,539 39,190
Total 26,014 1,666 235,436 263,116 165,156
481,124 24,039 356,607 861,770 770,274
£ 597,818 £ 46,999 £ 444,727 £ 1,089,544 £ 1,052,711
----- End of picture text -----

Auditors' remuneration for the year amounted to £8,000 in respect of the audit of the group companies.

18

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

The following institutional grants were paid in the year:

Institutions:
The lighthouse Group
Total		 2020
£
900
900

8 Trustees

The following related party transactions were made during the period:

Natalie Williams (trustee) is employed part-time as Community Engagement Director. Salary cost during the period amounted to £18,900 plus pension contributions amounting to 7% of salary.

With the exception of those noted above none of the trustees (or any person connected with them) received any remuneration or reimbursed expenses during the period.

9 Employees

Number of employees

The average monthly number of employees during the period was:

Direct charitable
Direct (Hasting Centre Trading)
Administrative
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
7
7
10
24
2020
£
530,493
36,804
30,521
£ 597,818		 2019
Number
7
7
9
23
2019
£
516,540
35,838
29,929
£ 582,307

There were no employees whose annual emoluments were £60,000 or more.

19

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

10
Tangible fixed assets
Cost
At 1 Sept 2019
Additions
At 31 August 2019
Depreciation
At 1 Sept 2019
Change for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Freehold
Property
£
2,064,220
533,914
2,598,133
767,895
44,956
812,851
£ 1,785,282
£ 1,296,325		 Plant and
equipment
£
325,966
-
325,966
323,926
2,040
325,966
-
£
£ 2,040		 Fixtures,
fittings and
office
equipment
£
57,884
-
57,884
57,884
0
57,884
-
£
£ 0		 Total
£
2,448,069
533,914
2,981,983
1,149,705
46,996
1,196,701
£ 1,785,282
£ 1,298,365

11 Investments

The charity has an investment of £1 representing its 100% ownership of all the ordinary shares of £1 each in Hastings Centre Trading Ltd (Company number 05222534), previously a dormant company, which commenced active trading on 1 Sept 2014. The capital and reserves of that company amounted to £1 at 31 August 2020. For year ending 31 August 2020, Hastings Centre Trading Ltd Income totalled £336,764, Expenditure was £334,159; therefore resulting in a retained profit for the year of £2,605.

The year end Net Current Asset position was £1.

12 Consolidated

Debtors
Trade debtors
Other debtors
Prepayments and accrued income
Hastings Community Trust
Debtors
Trade debtors
Other debtors
Prepayments and accrued income
Owed by Subsidiary company		 2020
£
127,764
-
48
£ 127,812
2020
£
107,266
-
48
57,410
£ 164,724		 2019
£
82,914
-
5,738
£ 88,652
2019
£
66,842
-
5,738
37,460
£ 110,040

20

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

----- Start of picture text -----
13 Consolidated
Creditors: amounts falling due within one year
2020 2019
£ £
Bank loan 50,786 16,125
Interest free loans 7,000 7,000
Trade creditors 31,726 6,764
Taxes and social security costs (592) 23,848
Accruals 15,374 11,422
£ 104,294 £ 65,159
Hastings Community Trust
2020 2019
£ £
Bank loan 50,786 16,125
Interest free loans 7,000 7,000
Trade creditors 25,518 1,307
Taxes and social security costs 0 7,962
Accruals 12,074 7,400
£ 95,378 £ 39,794
14 Creditors: amounts falling due after more than one year
2020 2019
£ £
Bank loan 617,895 212,313
Interest free loans 12,000 12,000
£ 629,895 £ 224,313
Analysis of loans
Bank loan 668,681 228,438
Interest free loans 19,000 19,000
Total repayable £ 687,681 £ 247,438
Amounts due after more than 5 years 414,752 147,813
Amounts due with 2 to 5 years 215,144 76,500
Repayable after more than one year £ 629,895 £ 224,313
Amounts due within one year 57,786 23,125
£ 687,681 £ 247,438
The loan is secured on the freehold property.
----- End of picture text -----

15 Share capital

The company is limited by guarantee and does not have share capital. The liability of each member is limited to a maximum of £10.

21

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

16 Restricted funds:

Comparative figures for Restricted Funds

Building fund
Gift Day 16
Gift Day 17
Community Action Hub
Orissa
Surviving Christmas
Hope Kitchen
Snowflake Night Shelter
Hastings Furniture Services
Dragonflies
Baby Basics
Bootfairs
MacMillan Nurses
Children's Work
St Leonards Community Group
Mumbai Children's Centre
Newground
Link Lunch
Youth
Foodbank
Building fund
Venues
Community Action Hub
Orissa
Hastings Furniture Services
Dragonflies
Baby Basics
Bootfairs
MacMillan Nurses
Children's Work
St Leonards Community Group
Mumbai Children's Centre
Newground
Link Lunch
Youth
Anti-Trafficking
Discovery Anti-Trafficking
Foodbank
Foodbank Covid
Foodbank Crisis Fund
Defra Grant
Social Action Defra Admin Grant
Social Action Covid
Social Action Gift Day
Community Engagement
Ghana
Xtrax		 Balance at
1 Sept 18
£
1,887
20,556
101,298
74,574
207
145
100
(164)
4,130
-
-
367
48
2,553
1,551
2,275
139
-
1,271
25,964
£ 236,900
Balance at
1 Sept 19
£
2,734
102,132
104,950
207
114
3,882
3,318
367
48
2,390
1,691
4,703
139
1,000
1,271
24,168
-
-
-
-
-
-
-
-
-
£ 253,114		 Incoming
resources
£
84
41,679
39,089
(100)
185
3,882
5,439
2,761
3,934
2,428
1,000
-
34,133
£ 134,514
Incoming
resources
£
167,098
35,503
29
7,486
280
2,291
16,400
261.30
118,601
19,699
5,000
70,000
10,000
23,045
37,650
10,940
160
3,028
£ 527,470

 Resources
expended
£
(49,238)
(61,401)
(8,713)
(145)
(4,200)
(2,314)
(2,761)
(163)
(3,795)
(42,806)
£ (175,534)
Resources
expended
£
(60,415)
(3,394)
(207)
(3,882)
(2,002)
(160)
(3,576)
(3,893)
(201)
(84,522)
(1,195)
(68,228)
(2,459)
(4,799)
(3,714)
(8,596)
£ (251,243)
Movement of fund
Movement of fund		 Transfers
£
50,000
(20,556)
20,556
164
192
6,878
£ 57,234
Transfers
£
(2,734)
(100,000)
(40,000)
969
1,844
£ (139,920)
s
s		 Balance at
31 August
2019
£
2,734
-
102,132
104,950
207
-
-
-
114
3,882
3,318
367
48
2,390
1,691
4,703
139
1,000
1,271
24,168
£ 253,114
Balance at
31 August
2020
£
0
108,814
97,059
0
-
114
29
8,801
487
48
2,390
405
17,210
139
1,000
1,271
1,231
1,643
58,247
18,504
5,000
1,772
7,541
18,246
33,936
2,345
160
3,028
£ 389,421

22

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

Building fund

This fund is used for the purposes of developing the building to meet the current requirements, as well as any potential property opportunities in the future.

Venues

This Fund was created from donations received from Gift Day 17 and Gift Day 19, Specifically for the costs associated with planting new church venue(s) namely Bexhill (which launched in January 2018) and St Leonards-On-Sea.

Community Action Hub

Fund created from Donations specifically for creating a designated area to support our various Social Action Projects including Foodbank, Anti-Trafficking and Baby Basics, funds will also help facilitate required changes to the Auditorium in order to create space for the CAH.

Orissa

Fund created specifically from donation to be made to Orissa Orphanage in India. Closed in the year.

Charity of The Year

We have a 'Charity of the Year', which was Hastings Furniture Services in 2018 and Dragonflies in 2019. Charity of the year for 2020 was Xtrax.

Baby Basics

Project for the practical support of vulnerable mothers and their newborn babies. Originally under designated, moved to Restricted as now receiving donations directly in support of the project.

Bootfairs

Any funds raised at Bootfairs are to be paid across to their nominated charities.

MacMillan Nurses

Fund created from donation given specifically for Macmillan Nurses.

Children's Work

Fund created from donation given specifically for Children's Work.

St Leonards Community Group

Fund created from income generated by the sale of craft Items through a church community group specifically for donating to various charities. Mumbai Children's Centre The children in the nrg and n:gage groups (5-11 year-olds) regularly give to support these children's projects in India. We also received donations in the year in support of the ongoing crisis in India as a result of the Pandemic. Newground Newground donation generated at Gift Days specifically for Newground. Link Fund created from a gift directly for the Link lunch group. Youth This fund arose from specific donations for youth activities, which were unable to be spent during the previous and current year. Anti-Trafficking & Discovery Anti-Trafficking These Fund were created to support Anti-Trafficking initiatives in our surrounding area, these activities have been funded by the Social Action Fund along with some financial support from the local Police and Council. Previously designated and reclassified to restricted. Foodbank

Since setting up the Foodbank a few years ago, we have received interest from individuals and churches around the town, many of whom donate food regularly. Some, however, give donations to support the project. Over the past year we have seen increased support from the community and Government through donations and Grants to support with the increased demand as a result of the coronavirus pandemic.

Foodbank Covid This Fund was created to receive grants given specifically for Hastings Foodbank during the coronavirus pandemic. Foodbank Crisis Fund This fund is derived from various one-off gifts specifically to support those who use the foodbank and are known to be in urgent need of support.

Defra Grant

The fund was set up to receive a large grant from DEFRA specifically for food to be given out by a number of emergency food response charities in Hastings over a 12-week period, in response to the coronavirus pandemic.

Social Action Defra Admin Grant

This fund was set up to receive a grant from Hastings Voluntary Action (HVA) to cover the costs of administrative support to manage the large DEFRA grant.

Social Action Covid Social Action Gift Day

This Fund was created to receive grants given specifically for Social Action during the coronavirus pandemic.

This fund was created to receive donations from a Gift Day in February 2020 specifically to raise money for social action.

Community Engagement

This fund was derived from a Grant to directly contribute towards the salary costs of the Community Engagement Director

Ghana

Fund created specifically from a gift directly given to support Ghana the receipient of which is yet to be decided.

23

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

17 Designated funds:

Comparative figures for Designated Funds

Relief
One-Off Gifts
Poor
Social Action
Foodbank
Social Projects
Overseas mission
Anti-Trafficking
Discovery Anti-Trafficking
Tithe Gift Day 2016 10%
Tithe Gift Day 2017 10%
Tithe Gift Day CAH 10%
Building Fund Tithe 20%
Capital/Contingency
Building development		 Balance at
1 Sept 18
£
3,030
1,010
1,202
3,858
4,065.05
28,573
9,404
1,959
4,342.40
522.50
6,529.65
8,272.32
3,591
122,995
12,834
£ 212,187		 Incoming
resources
£
-
-
-
-
4,438
3,713
293
44,265
£ 52,709
 Resources
expended
£
(4,361)
0
(1,340)
(5,403)
(7,986)
(6,340)
(991)
(2,499)
-
-
-
-
-
£ (28,920)
Movement of fund		 Transfers
£
2,000
-
1,338
11,808
11,122
(18,000)
8,000
-
-
(523)
(10,968)
(8,420)
(3,591)
-
(50,000)
£ (57,234)
s		 Balance at
31 August
2019
£
669
1,009
1,200
10,263
7,201
10,573
11,064
969
1,844
-
-
3,566
-
123,288
7,099
£ 178,743

These are designated funds earmarked by the Trustees for particular purposes.

Relief
One-Off Gifts
Poor
Social Action
Anti-Trafficking
Discovery Anti-Trafficking
Foodbank
Social Projects
Overseas mission
Tithe Gift Day CAH 10%
Capital/Contingency
Building development
Tithe on Venues @ 10%
Tithe on Social Action GD @ 10%		 Balance at
1 Sept 19
£
669
1,009
1,200
10,263
969
1,844
7,201
10,573
11,063
3,566
123,288
7,099
-
-
£ 178,742		 Incoming
resources
£
147,777
20
9,203
3,379
19
43
15,744
3,714
£ 179,900
 Resources
expended
£
(2,611)
(1,100)
(2,326)
(4,755)
(7,499)
(5,000)
£ (23,290)
Movement of fund		 Transfers
£
4,000
6,000
(969)
(1,844)
(4,000)
100,000
(6,000)
£ 97,187
s		 Balance at
31 August
2020
£
2,058
148,785
120
23,140
-
-
2,446
10,573
3,564
2,945
123,307
107,142
4,744
3,714
£ 432,537

24

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE 12 MONTHS ENDED 31 AUGUST 2020

17 Designated funds (continued):

The purpose of each designated fund is as follows:

Relief

This fund exists to provide relief for the poor and needy of the fellowship.

One-Off Gifts

This fund was created from various one-off Donations that the Trustee's agreed would be spent on various projects (yet to be agreed) There was one large gift received for £117K within this fund from an individual who in the subsequent year requested that this donation be returned which has obviously been honoured and returned (Actioned in FY21).

Poor

Fund specifically for supporting various one-off needs identified within our Church family and Local area.

Social Action

Fund specifically for supporting various projects including CAP and TLG.

Foodbank

Created by a tithe from the Building fund, this new initiative will develop opportunities to serve the poor in our local area, the first of which is a Foodbank launched in April 2012.

Social Projects

Created from the transfer of prior year retained earnings from Hastings Centre Trading Ltd to support Social Projects.

Overseas mission

Another fund created by a tithe from the Building fund, this will support those in positions of need who are working abroad, particularly in church planting and mission.

Social action/Overseas mission

These funds have been created by tithes from, Gift Day 16 & 17(now referenced as Venues fund),

CAH Gift Day and Social Action Gift day. It has the same purpose as the two other funds with the same name but the allocation of funds will be determined as needs arise.

Capital/Contingency

Originating from staff changes in 2010 resulting in reduced costs, these have been added to by budgeted savings to provide a cashflow resource and to allow for future costs and/or developments.

Building development

This fund was established for the acquisition and refurbishment of the property known as "The Hastings Centre". Its ongoing use is related to developing the building in order to provide suitable resources for the community.

25

THE HASTINGS COMMUNITY TRUST

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE 12 MONTHS ENDED 31 AUGUST 2020

18
Analysis of net assets between funds
Fund balances at 31 August 2020 are
represented by:
Tangible fixed assets
Current assets
Creditors: amounts falling due within one
year
Creditors: amounts falling due after more
than one year		 Unrestricted
funds
£
1,785,282
23,500
(104,293)
(629,895)
£ 1,074,594		 Designated
funds
£
-
432,537
-
-
£ 432,537		 Restricted
funds
£
-
389,421
-
-
£ 389,421		 Total
£
1,785,282
845,458
(104,294)
(629,895)
£ 1,896,552

19 Related party transactions

There were no related party transactions other than those listed in note 7.

20 Comparative figures for Statement of Financial Activities

Income and endowments from:
Donations and legacies
Charitable Activities
Other trading activities
Investments
Total Income and endowments
Expenditure On:
Raising Funds
Charitable activities:
Church
Community
Mission
Total charitable expenditure
Total Expenditure
Net Income/(expenditure)
Transfers between funds
Net movement in funds
Fund balances at 31 August 2018
Fund balances at 31 August 2019		 Unrestricted
funds
£
405,800
8,092
417,911
556
£ 832,359
271,331
390,613
115,792
70,521
576,926
848,257
(15,898)
-
(15,898)
£ 1,051,732
£ 1,035,834		 Designated
funds
£
8,151
-
44,265
293
£ 52,709
-
-
-
28,920
28,920
28,920
23,789
(57,234)
(33,445)
£ 212,187
£ 178,742		 Restricted
funds
£
134,514
-
-
-
£ 134,514
11,106
24,462
74,251
65,715
164,428
175,534
(41,020)
57,234
16,214
£ 236,900
£ 253,114		 Total
2019
£
548,465
8,092
462,176
849
£ 1,019,582
282,437
415,075
190,043
165,156
770,274
1,052,711
(33,129)
-
(33,129)
£ 1,500,819
£ 1,467,690

26

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE HASTINGS COMMUNITY TRUST

Opinion

We have audited the financial statements of The Hastings Community Trust (the 'charitable company') (the ‘parent company’) and its subsidiaries (‘the group’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Thacker FCA DChA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: .............................................