Company registration number: 04175683 Charity registration number: 1087001
Heathercombe Brake Trust
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 December 2020
Heathercombe Brake Trust
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Statement of Trustees' Responsibilities | 16 |
| Independent Auditors' Report | 17 to 22 |
| Statement of Financial Activities | 23 |
| Balance Sheet | 24 |
| Statement of Cash Flows | 25 |
| Notes to the Financial Statements | 26 to 38 |
Heathercombe Brake Trust
Reference and Administrative Details
Trustees Mr Jonathan Bishop (Chairman) Mr Matthew Pitts Mr Ian Rees Mr Adrian Webb Senior Management Team Mr Jon Evans, Centre Director - resigned October 2020 Mr Stephen Mcllhenny, Centre Manager Dr Roger Hopper, Development Manager - resigned October 2020 Neither the Centre Director nor the Development Manager post have been refilled Principal Office Heatree House Manaton Newton Abbot Devon TQ13 9XE The charity was incorporated on 08/03/2001. Company Registration Number 04175683 Charity Registration Number 1087001 Auditor PKF Francis Clark North Quay House Sutton Harbour Plymouth Devon PL4 0RA
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Heathercombe Brake Trust
Trustees' Report
The trustees (who are also the directors for the purposes of company law) of Heathercombe Brake Trust (the charity) present their annual report and financial statements for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 11 January 2019.
Trustees
Mr Jonathan Bishop (Chairman)
Mr James West (resigned 4 November 2020)
Mr Matthew Pitts
Mrs Clare Palmer (resigned 11 March 2020)
Mr Ian Rees (appointed 15 March 2020)
Mr Adrian Webb (appointed 21 March 2020)
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Heathercombe Brake Trust
Trustees' Report
Objectives and aims
Objectives, strategies and activities
Our charity’s purposes as set out in the objects contained in the charitable company’s Memorandum of Association are:
• To advance the education and promote the physical, spiritual, and mental welfare and development of children and young people and their families (especially but not exclusively those who have a disability or who suffer from any spiritual or other deprivation by virtue of their social or economic circumstances) within a Christian environment and ethos.
• To advance and promote the above amongst adults, insofar as from time to time the charity’s facilities and resources exceed the demand for them amongst children, young people, and their families.
• To provide, manage and improve one or more residential activity centres conducted on Christian principles and to assist in organising conferences and training courses for the advancement of such purposes.
Our aim is to provide young people with a unique residential experience that improves their lives. The aims of the charity are achieved at Heatree Activity Centre by providing a wide range of high quality outdoor education, utilising the natural environment of its Dartmoor location and incorporating environmental education alongside a full range of activities designed to provide both team and individual opportunities for development. By providing high standards in every aspect of our operation, we deliver exciting, adventurous and memorable outdoor learning experiences in accordance with our centre of excellence approach.
All activities are informed by and run on Christian principles, where Christian values are promoted in every area of our daily work. We encourage all staff and volunteers to promote a Christian ethos, where care and respect is shown to everyone. Our aims fully reflect the purposes that the charity was set up to further.
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Heathercombe Brake Trust
Trustees' Report
How our work is delivered
The work of Heathercombe Brake Trust is based at Heatree Activity Centre. It is open all year round and is located in the beautiful setting of Dartmoor National Park. There are four accommodation wings that can cater for over 200 guests as well as staff houses and several outbuildings. Accessibility for disabled guests is important to us and facilities including wet rooms are available. Residential programs form the largest part of our work, although day sessions are also available. Client groups include schools, youth clubs and groups, church groups and families.
Activities include:
Kayaking, raft building, climbing, abseiling, archery, fencing, stream scrambling, moorland walking, rock scrambling, high ropes and low ropes courses, mountain biking, wilderness venture, teambuilding and problem-solving challenges.
Environmental education includes:
Bronze Age roundhouse, Stone Age studies, eco challenge, earth walks, Haytor Victorian quarry, Houndtor Medieval village, river studies, rocky shore and sand dune studies, tourism and settlement impact studies.
The beneficiaries of the charity participating in the outdoor education activities and programmes provided are mainly primary and early secondary school pupils (Y4 to Y7, the schools are drawn mostly from the South West of England) during term time, and by church and youth groups on week ends and during the school holidays. The residential programme duration is usually either 5 days or 2-3 days.
Heatree has hosted several camps, retreats, seminars, outreach events and training courses for youth organisations. It has designed specialist outdoor learning provision for a wide range of young people with mental and physical health needs, including provision of several residential courses for special schools as well as for young people in mainstream schools. The Trust has provided additional staffing and support to special schools at no additional cost.
All sessions are designed to form part of a comprehensive outdoor education programme, tailored to the requirements of clients and designed to enable inclusion of those with special needs, and where appropriate cover various relevant aspects of the National Curriculum.
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Heathercombe Brake Trust
Trustees' Report
Public benefit
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.
Heatree has a number of strategies for providing public benefit through advancing education.
It provides specialised and structured outdoor education residentials for pupils from special educational needs schools. The Heatree team are experienced in providing inclusive activities for young people with additional physical and mental needs. Additional planning time and Heatree support staff are provided to enable the experience. The special educational needs provision is also extended to pupils within main-stream schools.
Heatree has been severely affected by the outbreak of Covid-19 in England. The centre opened as usual in January providing Outdoor Education residentials for primary schools and secondary schools, mainly from the South West region, and has also been able to provide activities and residentials for further education colleges and higher education students.
This year Heatree has also been home to the World Challenge expeditions training weekends. This is the first step for young explorers to camp and practice navigation on Dartmoor before heading overseas for their World Challenge adventures.
A number of youth organisations have enjoyed spending time at Heatree. These included Devon Youth Wind Orchestra, Mid Devon Cubs, a canoe club and other young people’s groups from across the South West and further afield.
As well as residential visits, Heatree offers a wide range of day activities. During 2020 these were enjoyed by schools only.
Learning experiences in the outdoors promote physical and mental health and wellbeing, while building confidence, resilience and self-respect. Individual skills, competencies and capabilities are developed alongside an understanding of teamwork, friendship and care and respect for others.
When considering its activities, the trustees have considered the Charity Commission's guidance on public benefit, in section 4 of the 2011 Charities Act and the guidance on public benefit and fee charging. The charity relies on the income from fees and charges to cover its operating costs. In setting the level of fees, charges and concessions, the trustees give careful consideration to the accessibility of the centre for those on low incomes. During 2020, trustees held an access fund in reserve to support groups that were aligned with the memorandum and articles of the Trust. However, the centre had only been open for a few weeks before Covid-19 restrictions were imposed so there were no opportunities for the fund to be accessed. The trustees will be moving towards a pricing-based model that supports groups that are aligned with the objectives of the Trust, such as youth groups.
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Heathercombe Brake Trust
Trustees' Report
Achievements and performance
Review of activities
Heatree has continued to demonstrate its popularity and impact by delivering high quality accessible outdoor education to a wide range of groups and organisations, which helps to inspire young people and develop life skills. School bookings accounted for over 63% of total bookings during the brief period of trade at the beginning of 2020.
Following the interruption to the business due to the Covid-19 impact, the centre was shut on 23rd March 2020. Trustees assessed the prospects of the charity over the next 18 months through budgets, cash flow forecasts and discussion with the current Auditors. The business has a low season between November and February, so assessment was made beyond that period when considering the future of the charity.
It was anticipated that with the actions already taken by the trustees, the charity’s cash reserves would last until the end of June 2021 if no other income was secured.
The impact of the virus on the charity will have long term implications for the charity’s operations, with new control measures likely to be introduced which may inhibit the range of activities offered to guests. These control measures may also affect the number of guests on site at any one time.
It is also likely there will be a financial or health impact for many of the individuals within the schools and other groups visiting Heatree Activity Centre, which may lead to reduced group sizes. The trustees consider the health, well-being and safety of the staff and guests at Heatree Activity Centre to be of paramount importance and are committed to strict adherence to up-to-date Government and public health guidance in relation to Covid-19.
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Heathercombe Brake Trust
Trustees' Report
The trustees took the following action to safeguard the centre, it’s staff, users, and customer relationships:
• The centre closed on the 23rd March 2020. Staff were furloughed from this point
• The Trust initially topped up the 80% government jobs retention scheme to 100%. This was then reduced to 80% in June to conserve funds.
• Groups who would have attended between 23rd March and the end the calendar year were not charged and were given the option to have their paid deposits returned. Where at all possible groups have been re-booked for Summer and Autumn 2021, some have carried forwards their deposits to 2022.
• The centre explored the viability of modified programmes of activity, with suitable social distancing and hygiene precautions for when the centre re-opened. The centre prepared cash flow models based on Covid safe attendance between November 2020 and July 2021 but due to the style of multi-bedded accommodation provided, the centre was not able to re-open for residential visits until 17th May 2021 and then only for groups of not more than 30 in each wing. The trustees decided to prepare most of the small properties on the site for short term lets to generate a further income. The first letting was secured in December 2020 and have continued steadily through 2021 as more properties became ready. In all, over £45,000 extra income has been secured this way. No summer Church groups were able to visit in 2020.
• The trustees explored various financial models to allow the operation of the centre to continue in a more limited capacity that is still financially viable, yet compliant with government guidelines around Covid-19.
• The centre held reserves to subsidise the running of essential operations and to pay staff, for a limited time. A government backed bank loan was secured in August 2020 for £150,000 and a further loan of £100,000 was advanced in April 2021. These reserves are sufficient to carry the business through the 2021-22 winter period, after which point the business should slowly recover.
• As noted above the trustees applied for a CBILS bank loan for £150,000 to safeguard the Centre’s finances in July 2020, this was received in August 2020. The loan was borrowed for a period of 6 years with no repayments for the first 12 months. A further CBILS loan of £100,000 was applied for in April 2021 and received in the same month. The loan was also borrowed for a period of 6 years with no repayments for the first 12 months.
• The trustees considered closing the centre completely until September 2021, making all but 2 part-time staff redundant. Staff were notified of this proposal on 17th August 2020 and were given the Business Case to support the proposal and two sets of cash flows, one with redundancies and mothballing the centre and one without any changes. The cash flow with no redundancies showed that the centre would run out of cash in March 2021. A period of consultation was entered into on 1st September 2020 and concluded on 1st October 2020. The outcome of the consultation was that 12 members of staff took voluntary redundancy, two members of staff on short term contracts did not have their contracts extended and 18 members of staff were retained. These staff mostly remained on furlough until April 2021 when preparations were underway ready to re-open the centre as soon as the restrictions were relaxed. Where possible, during 2021, staff have been re-furloughed when bookings were low. The overall cost of wages and salaries during 2020 was £538K. This included £81k in October as the direct costs included in the staff redundancy payments, compromising pay in lieu of notice, accrued holiday and unused holiday pay and redundancy payments. Income received under the government furlough scheme covered £221k of the remaining balance.
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Heathercombe Brake Trust
Trustees' Report
• The trustees considered releasing some of the property assets owned by the Trust in order to replenish the reserves. The property called Brookside was put on the market in June 2021 and there is currently a ‘Sale Agreed’ on the property .
Camp Courageous
Heatree has been unable to offer Camp Courageous events for children with Down’s Syndrome or their families since March 2020.
There are plans for at least one event to be held for these families during the Autumn or Winter of 2021.
Purchase of an all-terrain wheelchair
Jon Evans, who was the Centre Director until October 2020, successfully completed an off-road marathon on Dartmoor in November 2019 to raise funds for an all-terrain wheelchair for the charity. By the year end £3,019 had been donated by local supporters, businesses, and small trust funds. All money raised was carried forward and has been allocated to the all-terrain wheelchair. The new addition is designed for young people with limited mobility who are not able to safely explore Dartmoor National Park in a standard wheelchair. Jon wrote;
“They may not get to; reach the summit of a tor; take in the view and feel a sense of achievement rise by reaching one of Dartmoor's amazing high points. I believe every young person has the right to explore Dartmoor. This right of inclusion can be made a reality (for wheelchair users) with the assistance of an All-Terrain Mountain Trike. At Heatree Activity Centre we welcome inspiring young people (who use wheelchairs) and I know that they want real adventures. We would anticipate that over 12 young people a year would use the new mountain trike to explore Dartmoor alongside a professional Outdoor Educator.”
Fundraising Statement
There was no fundraising undertaken during 2020 but further donations were received towards the purchase of the all-terrain wheelchair and towards the living costs of the volunteers on site. Additional unrestricted donations were received towards general funds.
The trustees of the centre take the following stance on fundraising.
The charity does not currently make use of 3rd party fundraising companies or charities and has no plan to do so. All fundraising is undertaken by staff, trustees, or members of the charity. The campaigns are focused on specific outcomes, such as the purchase of equipment that allows the charity to fulfill its charitable objects, such as the aforementioned wheelchair, which supports provision for the physically impaired users of the centre. The trustees also plan to hold fundraising campaigns to subsidise reduced-cost visits by Christian youth groups who are a group that is in-keeping with the M&As.
Fundraising will mainly be focused upon interested groups, such as local churches (though not exclusively). This will usually take the form of a pre-agreed presentation to the interested organisation or person. Those engaged in fundraising are required to ensure that those with whom they interact in this capacity are of sound mind and are not vulnerable, either by age or infirmity.
All fundraising is in-keeping with the Code of Fundraising Practice. Trustees scrutinize the fundraising procedures used by staff, members, and other trustees to ensure that it is in-keeping with this code of practice. Currently, the charity has not received any complaints in relation to its fundraising practice.
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Heathercombe Brake Trust
Trustees' Report
Heatree staff development
The quality of education provided to clients is supported by employing and retaining well qualified and motivated staff who share the ethos of the charity. The majority of the permanent outdoor team at Heatree have completed their initial teacher training. Some are now qualified teachers, while the remainder are working towards this status. This commitment towards ensuring that staff have strong teaching and learning practices, ensures that Heatree will maintain its outstanding reputation for quality outdoor education.
South Devon College Training Partnership degree training programme
In 2016, Heatree commenced a partnership with the University Centre of South Devon College, establishing a unique degree training programme. During the fourth year of the program, Heatree had five volunteer students who are studying for this degree in adventure leadership.
Students at Heatree are given a unique opportunity to advance their careers. They study, lead and train simultaneously; this approach is both challenging and rewarding. We aim for our graduates to leave as triple professionals. Firstly, with essential vocational experience in leading a wide variety of groups, supporting the Heatree outdoor learning programmes. Secondly, with degree level academic honours grounded in high levels of sector skills, knowledge and understanding. Thirdly, with nationally recognised adventure leadership qualifications, being the key to open the doors to the outdoor classroom.
A number of the Heatree staff lectured on the degree programme.
The partnership ended in October 2020 once Dr Roger Hopper ceased to work at the centre.
National Outdoor Learning Award (NOLA)
NOLA was developed at Heatree and in partnership with the Institute for Outdoor Learning (IOL) and was launched in January 2018. This award is now being used nationally and internationally by a wide variety of outdoor education users including schools, colleges, universities, sole traders and outdoor centres. NOLA is being used as framework to influence professional practice standards across the outdoor sector. NOLA is being seen by IOL as a strategic tool that could influence Government outdoor education policy.
Residential visits are an invaluable experience when it comes to developing personal skills and helping to prepare children for independent living. The children participating in these programmes learn much that they can carry with them as useful resources for their future lives. Heatree, through its Development Manager, Dr Roger Hopper, has been developing the National Outdoor Learning Award and in December 2017, the Institute for Outdoor Learning (IOL) formally endorsed and launched this award nationally on their website. Outdoor education providers can access NOLA resources and order badges through a dedicated website.
Outdoor Activity Instructor Apprenticeship
Following Heatree's involvement with the successful development of a Level 3 Outdoor Activity Apprenticeship, Dr Roger Hopper was invited to be a member of the working group to help develop the proposed Level 5 Outdoor Learning Specialist Apprenticeship. This proposed Apprenticeship has had initial Government approval and is expected to be launched in the Autumn 2020. Covid-19 delayed the development of this programme but it is still expected to be offered by 2022.
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Heathercombe Brake Trust
Trustees' Report
Schools Youth and Church groups
Working with young people whether on school residential visits, church or other youth groups continues to be the mainstay of the charity’s activity. Making all the visits fun, challenging, exciting, enjoyable and part of an holistic experiential learning event is something that our staff enjoy, and they gain great satisfaction from imparting their own love of learning in such a unique environment.
To quote from one of our visiting groups:
‘Your facilities, standards, quality of teaching are superb. We love the time you give for reflection, your focus on the Heatree values and how you adapt your activities for the children in each group. You make every child feel special and valued.’
“As always, everyone has loved our trip to Heatree. We always feel so welcome and as a returning school it is great to see familiar faces. The staff and environment here are second to none and we all feel completely re-energised for the year ahead. Thank you, this is the highlight of our year.”
“Staff were excellent and considered the full range of abilities of the children and adapted activities to enable all to participate fully. They were keen to understand techniques which worked with individuals (from a school for children with special educational needs).”
“This was our first time here with Year 6 and it has been great! The activities were well prepared, and the children gained a lot from them. I really liked how they were linked to values which were discussed at the end of every session.”
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Heathercombe Brake Trust
Trustees' Report
Future plans
Through the closure enforced by the Covid-19 pandemic the Trust has taken the opportunity to review the work and vision of the Heatree Activity Centre and how it best meets its charitable aims and objectives.
The key points are listed below:
Heatree will be taking school bookings for full week (Mon-Fri) residentials only, throughout most of the year. Half week bookings will only be available in November, December, January and February. Youth, Church and other groups will continue over weekends and during school holidays.
To meet the aims of the Trust, staff and trustees will ensure that the Christian environment and ethos will be maintained and promoted to groups that use the centre.
We are working to keep the prices offered to our guests as competitive and affordable as possible. In particular, as a charity we are wishing to support those with EHCP and those from backgrounds where higher levels of deprivation could potentially affect access to such opportunities that we provide at Heatree. We are developing the bursary fund to enable children from disadvantaged backgrounds to come and enjoy the Heatree experience, where other funds are not available to make this possible. This fund will be raised in two ways, 1.) A percentage of the funds from “Church” and “Other” groups and 2.) through fundraising.
Due to the massive and sustained impact of the Covid-19 pandemic we have had to make several changes to the staff team and structure at Heatree. We therefore intend to reduce the number of schools and the number of pupils able to stay residentially at any one time. In most cases we will only be hosting a maximum of two schools in any one week of the school term. Weekends and school holidays will continue to utilise as much inventory as possible.
We have continued to maintain, replace, and repair, our equipment and infrastructure during the year. The refurbishment of one building was completed in 2020 which now provides short-term letting accommodation. Two more buildings were prepared for short term letting in 2021 and one other building has been partially refurbished.
The Fixed Asset Replacement Plan was completed in 2018. The trustees now need to develop the long-term strategic capital investment plan to support further enhancement to buildings, potentially allowing for increased occupancy and improved facilities to support accessibility.
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Heathercombe Brake Trust
Trustees' Report
Going concern
Following the interruption to the business due to the Covid-19 impact, the centre was shut on 23rd March 2020. trustees have assessed the prospects of the charity over the next 18 months through budgets, cash flow forecasts and discussion with the current Auditors. The business has a low season between November and February, so assessment was made beyond that period when considering the future of the charity.
The impact of the virus on the charity will have long term implications for the charity’s operations. Future budgeting is all based on limiting numbers to two schools visiting in any one week. Budget figures for the twelve months from September 2021 to the end of August 2022 show a surplus of £86,000 before depreciation and a surplus of £12,000 after deducting depreciation. This is based on existing bookings to date, with a cap of around 90 pupils each week. These figures are then discounted by 20% for the remainder of 2021 and 10% for 2022. Church, youth and other groups have been budgeted on existing bookings for the remainder of 2021, all discounted by 40% to allow for drop offs. In 2022 they are based on regular bookings only, discounted by 10%. All overheads are predicted to continue as previously, with cost of living increases, direct expenditure is based on the smaller group sizes.
The cash balance (excluding the sale of Brookside) at the end of August 2022 is predicted to be £215,000 which includes outstanding loan capital of £210,000.
Based on the cashflows and budgets prepared the trustees are of the opinion that the charity is a going concern, and the accounts have therefore been prepared on a going concern basis,
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Heathercombe Brake Trust
Trustees' Report
Reserves policy
The trustees have examined the charity's requirement for reserves, which are unrestricted funds not committed or invested in tangible fixed assets, to provide the charity with a level of operational flexibility. The Board consider it appropriate to hold £120,000, representing a short period of operating costs, as a contingency reserve and given the seasonal nature of the charity's operations, a further £100,000 by way of a cash flow reserve. The trustees consider this to be an appropriate amount to provide the necessary working capital for the charity and to cover unforeseen events.
The total unrestricted reserves of the charity at 31 December 2020 were £1,435,569 (2019: £1,850,558), of which £1,528,416 (2019: £1,597,165) is the Fixed Asset Reserve and £4,717 (2019: £4,717) relates to the Access Fund. The total restricted reserves of the charity at 31 December 2020 were £7,125 (2019: £7,055) which relate to Camp Courageous and the wheelchair fund.The unrestricted free reserves at the end of 2020 were (£97,564) (2019: £248,676).
After paying all costs and providing for working capital the Board's policy is to reinvest any surpluses, together with any donations received, into the further development of the centre, to provide increased and improved facilities for the benefit of the users, in line with charity objectives . The property called Brookside is on the market for sale. The sale is at ‘Sale Agreed’ stage for the sum of £455,000. This sale will provide sufficient funds to either repay all of the CBILS loans and provide reserves to cover three months of winter cashflow expenditure of £65,000 and three months of salaries at £85,000, or the trustees might decide not to pay back the CBILS loan and will use the funds to underwrite the repayments, cover the winter cash flow and wages and provide funds for any necessary capital expenditure in 2022. There are currently no plans for capital expenditure.
The current reserves policy has ensured that there were sufficient funds available for the charity to continue in operation throughout 2020. As mentioned above, the trustees secured a short-term bank loan of £150,000 under the Coronavirus Business Interruption Loan Scheme (CBILS) to cover the cash flow in 2021 and a further £100,000 CBILS loan was taken out in April 2021. Reserves will start to be re-built after that period. Cash reserves at the end of 2020, including loan funds are £125,106. Excluding the sale of Brookside, cash reserves are predicted to be £215,000 at the end of August 2022, with bank loans outstanding of £210,000.
Financial review
The trustees regularly review income, profitability and liquidity, comparing with historical performance and forecasts. The financial management of the centre has focussed on optimising occupancy rates and managing expenditure in line with activity volumes where possible. During the year ended 31 December 2020, before the deduction of depreciation, net expenditure was £328,090 (2019 : net income of £97,196).
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Heathercombe Brake Trust
Trustees' Report
Structure, governance and management
Constitution
Heathercombe Brake Trust is a charitable company limited by guarantee, trading as Heathree Activity Centre. It is governed by its Memorandum and Articles of Association, dated 8 March 2001 and amended by Special Resolution dated 1 August 2013. It is registered with the Charity Commission.
Appointment of Trustees
The trustees may from time to time, seek to appoint new trustees. When choosing and appointing new trustees, emphasis is placed on their experience in the wider community and their sharing of the Christian ethos. The number of trustees shall not be less than 3 or more than 9. Trustees are appointed for a term of 3 years and may renew that appointment for successive terms.
All trustees may nominate potential new trustees to be considered for election. Once elected, new trustees will have a period of induction and training. This involves information sharing, visits to the centre and interviews with other trustees. Ongoing training includes cascaded information from journals, forums, updates from professional organisations and regular reviews of publications.
The Board of Trustees meets four times every year to administer the charity. The Centre Director and Centre Manager who are appointed by the trustees to manage all operational activities of the charity, and oversee staff teams who manage the day to day work of the centre, also attend the Board meetings. The Centre Director left in October 2020, and has not been replaced.
The pay policy for staff is proposed by the Centre Manager, taking account of the centre and individual performance, affordability and market conditions, including legislative matters such as the statutory minimum wage. The policy applies to all staff, including the two senior post holders and is within a set branded pay structure. Two trustees will be responsible for appraisal and performance management of the Centre Manager and pay awards for this role will be benchmarked against the same role in similar organisations and agreed by the trustees. trustees receive the proposals in the last Board meeting of each financial year and any pay awards are effective from 1st January the following year. Pay awards were made in 2020 but no uplifts have been made in 2021.
Key management personnel
The key management personnel of the charity during the year consisted of the trustees, the Centre Director, and the Centre Manager. The Centre Director left in October 2020 and his post has not been reappointed, the Centre Manager is now running the centre.
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Heathercombe Brake Trust
Trustees' Report
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The centre's policies which mitigate the inherent risks associated with the centre and its activities were reviewed during the year. The review drew on internal experience and external/professional advice to continue to ensure the centre meets both internal and external scrutiny with detailed attention paid to the relevant risk assessments. Procedures are in place for staff training, including at induction, covering all essential policies, including Safeguarding and Health and Safety.
Funds are allocated annually for ongoing asset maintenance and replacement, and plans are reviewed regularly to ensure facilities remain in good order and are appropriate for young people.
Appropriate commercial insurance cover is maintained annually to cover public and employer's liabilities and insuring buildings and facilities for replacement value.
The trustees are developing a new risk management framework to better enable a regular and systematic review of risks at every Board meeting.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Post Balance Sheet Events
The Centre re-opened for residential school groups on 17th May 2021. Restrictions remained in place which reduced the maximum number of people in any one school group to circa 30.
Non-school residential groups were allowed after 19th July 2021 but this was too late for the majority of the summer groups which visit Heatree to make the necessary plans and preparations so only two of our regular groups were able to run their Youth camps.
Heatree has continued to keep most staff on flexi-furlough throughout 2021 and will continue to do so until the scheme finishes at the end of September 2021.
The annual report was approved by the trustees of the charity on 21/10/2021 .................... and signed on its behalf by:
......................................... Mr Jonathan Bishop (Chairman) Trustee
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Heathercombe Brake Trust
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Heathercombe Brake Trust for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on .................... 21/10/2021 and signed on its behalf by:
......................................... Mr Jonathan Bishop (Chairman) Trustee
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Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
Opinion
We have audited the financial statements of Heathercombe Brake Trust (the 'charity') for the year ended 31 December 2020, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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 auditor’s report 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.
Page 17
Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Page 18
Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 16), the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework that is applicable to the group and the sector in which it operates to identify the key laws and regulations affecting the charity.
The key laws and regulations we identified were the General Data Protection Regulations (GDPR), compliance with the Adventure Activities Licensing Authority, Fundraising Regulations for Charities, health and safety and employment laws. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, the Charities Act, relevant tax compliance regulations in the UK and reporting framework (Charities SORP – FRS102).
We discussed with management how the compliance with these laws and regulations is monitored and we discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the charity’s ability to continue trading and the risk of material misstatement in the accounts.
Page 19
Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non-compliance or legal cots in respect of non-compliance; and
• Reviewed board minutes.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
We also evaluated the risk of fraud through management override including that arising from management’s incentives. The key risks we identified were fraud in revenue recognition and undisclosed related party transactions
In response to the identified risk, as part of our audit work we:
-
Used data analytics to test journal entries throughout the year, for appropriateness
-
Evaluated the rationale of significant transfers between restricted and unrestricted reserves
-
Reviewed income supporting documentation for any restrictions and compared to how it had been
-
recognised in the financial statements
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making those estimates
• Reviewed cashbooks, bank statements, debtors and creditors for potential related party transactions.
In the year, we identified an additional risk associated with fraudulent or erroneous CJRS (Coronavirus Job Retention Scheme) claims. In response to the identified risk, as part of our audit work, we obtained an understanding of how the claims were prepared and assessed the risk associated with this, obtained an understanding of how the terms and conditions of furlough were communicated to employees, reconciled claims back to cash received, and tested a sample of individuals by recalculating the amount of grant the charity were entitled to claim. No issues were identified.
Because of the inherent limitation of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Page 20
Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud my involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
• Conclude on the appropriateness of the trustees use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to the events or conditions that may cast a significant doubt on the charity’s ability to continue as a going concern. If we then conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page 21
Heathercombe Brake Trust
Independent Auditor's Report to the Members of Heathercombe Brake Trust
Use of our report
This report is made solely to the charitable company's trustees, 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 charity's trustees those matters we are required to state to them in an auditor’s 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Duncan Leslie (Senior Statutory Auditor) For and on behalf of PKF Francis Clark, Statutory Auditor
North Quay House Sutton Harbour Plymouth Devon PL4 0RA
Date:............................. 22/10/2021
Page 22
Heathercombe Brake Trust
Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Investment income 5 Total Income Expenditure on: Charitable activities 6 Total Expenditure Net (expenditure)/income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 19 Note Income and Endowments from: Charitable activities 3 Other trading activities 4 Investment income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 19 |
Unrestricted £ 221,015 196,093 1,026 213 418,347 (833,336) (833,336) (414,989) (414,989) 1,850,558 1,435,569 Unrestricted funds £ 963,881 776 566 965,223 (952,493) (952,493) 12,730 12,730 1,837,828 1,850,558 |
Unrestricted £ 221,015 196,093 1,026 213 |
Restricted £ - 70 - - |
Total 2020 £ 221,015 196,163 1,026 213 |
||
|---|---|---|---|---|---|---|
| 418,347 | 70 | 418,417 | ||||
| (833,336) | - | (833,336) | ||||
| (833,336) | - | (833,336) | ||||
| (414,989) | 70 | (414,919) | ||||
| (414,989) 1,850,558 |
70 7,055 |
(414,919) 1,857,613 |
||||
| 1,435,569 | 7,125 | 1,442,694 | ||||
| Restricted funds £ 13,324 - - 13,324 (7,269) (7,269) 6,055 6,055 1,000 7,055 |
Total 2019 £ 977,205 776 566 |
|||||
| 978,547 | ||||||
| (959,762) | ||||||
| (959,762) | ||||||
| 18,785 | ||||||
| 18,785 1,838,828 |
||||||
| 1,857,613 |
All of the Charity's activities derive from continuing operations during the above two periods.
The notes on pages 26 to 38 form an integral part of these financial statements. Page 23
Heathercombe Brake Trust
(Registration number: 04175683) Balance Sheet as at 31 December 2020
| Note Fixed assets Tangible assets 13 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: Amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 17 Net assets Funds of the charity: Restricted income funds Restricted Funds Unrestricted income funds Designated Funds General Funds Total unrestricted funds Total funds 19 |
2020 £ 1,528,416 9,560 21,955 125,106 156,621 (102,343) 54,278 1,582,694 (140,000) 1,442,694 7,125 1,533,133 (97,564) 1,435,569 1,442,694 |
2019 £ 1,597,165 8,223 7,870 357,243 |
|---|---|---|
| 373,336 (112,888) |
||
| 260,448 | ||
| 1,857,613 - |
||
| 1,857,613 | ||
| 7,055 1,601,882 248,676 |
||
| 1,850,558 | ||
| 1,857,613 |
The financial statements on pages 23 to 38 were approved by the trustees, and authorised for issue on .................... 21/10/2021 and signed on their behalf by:
.........................................
Mr Jonathan Bishop (Chairman) Trustee
The notes on pages 26 to 38 form an integral part of these financial statements. Page 24
Heathercombe Brake Trust
Statement of Cash Flows for the Year Ended 31 December 2020
| Note Cash flows from operating activities Net (expenditure)/income Adjustments to cash flows from non-cash items Depreciation Investment income 5 Interest payable Loss on disposal of tangible fixed assets Working capital adjustments (Increase)/decrease in stocks 14 (Increase)/decrease in debtors 15 Increase/(decrease) in creditors 16 (Decrease)/increase in deferred income 17 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 5 Purchase of tangible fixed assets 13 Net cash flows from investing activities Cash flows from financing activities Interest payable and similar charges New loans 16 Repayment of capital element of finance leases and HP contracts Net cash flows from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December |
2020 £ (414,919) 86,899 (213) - - (328,233) (1,337) (14,085) 103,141 (118,592) (359,106) 213 (18,150) (17,937) - 150,000 (5,094) 144,906 (232,137) 357,243 125,106 |
2019 £ 18,785 78,411 (566) 5,807 2,411 |
|---|---|---|
| 104,848 872 26,252 (16,598) 34,250 |
||
| 149,624 | ||
| 566 (76,893) |
||
| (76,327) | ||
| (5,807) - (30,561) |
||
| (36,368) | ||
| 36,929 320,314 |
||
| 357,243 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 26 to 38 form an integral part of these financial statements. Page 25
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the Uk and Republic of Ireland (FRS 102) (effective January 2019) - (Charities SORP (FRS102).
Basis of preparation
Heathercombe Brake Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
Following the interruption to the business due to the Covid-19 impact, the centre was shut on 23rd March 2020. trustees have assessed the prospects of the charity over the next 18 months through budgets, cash flow forecasts and discussion with the current Auditors. The business has a low season between November and February, so assessment was made beyond that period when considering the future of the charity.
The impact of the virus on the charity will have long term implications for the charity’s operations. Future budgeting is all based on limiting numbers to two schools visiting in any one week. Budget figures for the twelve months from September 2021 to the end of August 2022 show a surplus of £86,000 before depreciation and a surplus of £12,000 after deducting depreciation. This is based on existing bookings to date, with a cap of around 90 pupils each week. These figures are then discounted by 20% for the remainder of 2021 and 10% for 2022. Church, youth and other groups have been budgeted on existing bookings for the remainder of 2021, all discounted by 40% to allow for drop offs. In 2022 they are based on regular bookings only, discounted by 10%. All overheads are predicted to continue as previously, with cost of living increases, direct expenditure is based on the smaller group sizes.
The cash balance (excluding the sale of Brookside) at the end of August 2022 is predicted to be £215,000 which includes outstanding loan capital of £210,000. The actual cash balance at the end of September 2021 was £183,407 which compared favourably with the predicted cashflow balance of £167,497.
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 and based on the cashflows and budgets prepared the trustees are of the opinion that the charity is a going concern, and the accounts have therefore been prepared on a going concern basis,
Page 26
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
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.
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.
Charitable activities
All income is recognised once the Charity has entitlement to the income, it is probabale that the income will be received and the income can be measured reliably.
Deferred income
Deferred income represents non-refundable deposits received for bookings in future periods. These are deferred and released into incoming resources in the period in which the activity takes place. In the event that the activity is cancelled and not rebooked the deposit is recognised immediately in incoming resources.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic beneift to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertakling each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.
Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the Charity's educational operations, including support costs and relating to the governance of the Charity apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
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.
Page 27
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500 or more are capitalised, items costing less are written off in the year of purchase.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Freehold property | 2-5% straight line |
| Round House in freehold property | 10% straight line |
| Plant and machinery | 2-25% straight line |
| Motor vehicles | 25% reducing balance |
| Fixtures and fittings | 25% straight line |
Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving items.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Leasing and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities incorporating income and expenditure account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Page 28
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities incorporating income and expenditure account on a straight line basis over the lease term.
2 Income from donations and legacies
| Grants, including capital grants; Coronavirus Job Retention Scheme Total for 2020 |
Unrestricted funds General £ 221,015 221,015 |
Total funds £ 221,015 |
|---|---|---|
| 221,015 |
3 Income from charitable activities
| Unrestricted funds General £ Income from charitable activities 196,093 4 Income from other trading activities Property rental income 5 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Restricted funds £ 70 Unrestricted funds £ 1,026 1,026 Unrestricted funds £ 213 |
Total 2020 £ 196,163 Total 2020 £ 1,026 1,026 Total 2020 £ 213 |
Total 2019 £ 977,205 |
|---|---|---|---|
| Total 2019 £ 776 |
|||
| 776 | |||
| Total 2019 £ 566 |
Page 29
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
6 Expenditure on charitable activities
| Provisions, Housekeeping and activity Catering and hospitality temporary staff costs Miscellaneous staff costs Stationery and advertising Telephone Motor and travel Repairs, renewals and replacements Bank charges Rates Insurance Heat and light Interest on hire purchase contracts Wages and salaries Staff training Pension cost Depreciation Loss on disposal of fixed assets Governance costs |
Activity undertaken directly £ 27,908 4,147 - - - - - - - - - - - - - - - - 32,055 |
Activity support costs £ - - 563 2,852 12,770 4,494 29,166 296 28,562 20,606 36,957 1,058 537,762 7,800 12,968 86,899 - 18,528 801,281 |
2020 £ 27,908 4,147 563 2,852 12,770 4,494 29,166 296 28,562 20,606 36,957 1,058 537,762 7,800 12,968 86,899 - 18,528 833,336 |
2019 £ 95,696 9,334 4,577 5,128 19,384 18,239 72,747 416 18,052 21,356 53,262 5,807 503,012 24,048 13,849 78,411 2,411 14,033 |
|---|---|---|---|---|
| 959,762 |
Included in the expenditure analysed above, there are governance costs of £18,528 (2019 - £14,033) which relate directly to charitable activities. See note 7 for further details.
Page 30
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
7 Analysis of governance and support costs
Governance costs
| Governance costs | |||
|---|---|---|---|
| Audit fees Audit of the financial statements Other fees paid to auditors Legal fees |
Unrestricted funds £ 10,380 7,774 374 18,528 |
Total 2020 £ 10,380 7,774 374 18,528 |
Total 2019 £ 7,380 5,300 1,353 |
| 14,033 |
8 Net incoming resources
Net (outgoing)/incoming resources for the year include:
| Operating leases - other assets Audit fees Other non-audit services Loss on disposal of tangible fixed assets Depreciation of fixed assets |
2020 £ 1,110 10,380 7,774 - 86,899 |
2019 £ 4,439 7,380 5,300 2,411 78,411 |
|---|---|---|
9 Trustees' remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the Charity during the year (2019: nil).
During the year 2 trustees (2019: 5 trustees) were reimbursed travel expenses of £178 (2019: £976) in connection with their role as a trustee.
Page 31
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
10 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs Redundancy costs |
2020 £ 477,843 34,039 12,968 25,880 550,730 |
2019 £ 472,653 30,359 13,849 - |
|---|---|---|
| 516,861 |
The monthly average headcount of persons (including senior management team) employed by the Charity during the year was as follows:
| Charity during the year was as follows: | ||
|---|---|---|
| Management Support |
2020 No 2 27 29 |
2019 No 2 32 |
| 34 |
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the Charity as noted in the Trustees' Report on page 8, were £83,104 (£15,200 of this consisted of pension and social security costs) (2019 - £81,082 with £9,609 consisting of pension and social security costs). A further £9,146 was paid to key management personnel in respect of redundancies.
11 Auditors' remuneration
| Audit of the financial statements Other fees to auditors All other non-audit services |
2020 £ 10,380 7,774 |
2019 £ 7,380 |
|---|---|---|
| 5,300 |
Page 32
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
12 Taxation
The Charity is a registered charity and is therefore exempt from taxation.
13 Tangible fixed assets
| Cost At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Land and buildings £ 1,922,503 - 1,922,503 608,287 43,063 651,350 1,271,153 1,314,216 |
Furniture and equipment £ 187,832 8,800 196,632 115,517 24,680 140,197 56,435 72,315 |
Motor vehicles £ 21,334 - 21,334 8,829 2,901 11,730 9,604 12,505 |
Plant and machinery £ 315,083 9,350 324,433 116,954 16,255 133,209 191,224 198,129 |
Total £ 2,446,752 18,150 2,464,902 849,587 86,899 936,486 1,528,416 1,597,165 |
|---|---|---|---|---|---|
Page 33
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
| Plant and machinery 14 Stock Consumables and goods for resale 15 Debtors Trade debtors Prepayments Other debtors 16 Creditors: amounts falling due within one year Bank loans Trade creditors Hire purchase and finance leases Other taxation and social security Other creditors Accruals and deferred income |
2020 £ - 2020 £ 9,560 2020 £ 1,158 - 20,797 21,955 2020 £ 10,000 2,016 - 3,621 3,908 82,798 102,343 |
2019 £ 155,852 2019 £ 8,223 |
|
|---|---|---|---|
| 2019 £ 132 2,121 5,615 |
|||
| 7,868 | |||
| 2019 £ - 3,886 5,094 3,768 7,635 92,505 |
|||
| 112,888 |
17 Creditors: amounts falling due after one year
Bank loans
2020 £ 140,000
Included in the creditors are the following amounts due after more than five years:
Page 34
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
| After more than five years by instalments | 2020 £ 20,000 |
|---|---|
Bank loans and overdrafts after five years
The bank loan is a Coronavirus Business Interuption Loan and has a repayment term of 6 years. No capital repayments are due for the first 12 months, the balance is then repayable over the remaining 5 years by monthly instalments. Interest is charged at 2.18% above bank base rate.
18 Commitments
Pension commitments
The Charity operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Charity in an independently administered fund. Commitments provided for in the accounts amounted to £2,134 (2019 - £3,768).
Page 35
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
19 Funds
| Unrestricted funds General Free reserves Designated Fixed asset reserve Access fund Total unrestricted funds Restricted funds Camp Courageous Wheelchair fund Total restricted funds Total funds |
Balance at 1 January 2020 £ 248,676 1,597,165 4,717 1,601,882 1,850,558 4,106 2,949 7,055 1,857,613 |
Incoming resources £ 418,347 - - - 418,347 - 70 70 418,417 |
Resources expended £ (746,437) (86,899) - (86,899) (833,336) - - - (833,336) |
Transfers £ (18,150) 18,150 - 18,150 - - - - - |
Balance at 31 December 2020 £ (97,564) 1,528,416 4,717 |
|---|---|---|---|---|---|
| 1,533,133 | |||||
| 1,435,569 | |||||
| 4,106 3,019 |
|||||
| 7,125 | |||||
| 1,442,694 |
Access Fund
The Access fund is a hardship/deprivation fund available to needy and deprived groups, with a focus on disadvantaged children in a Christian environment. During the year no payments were made from the fund and the balance of £4,717 is carried forward for use in 2021.
Restricted funds
The Charity established a legacy project on its 25th anniversary called Camp Courageous. The Charity raised funds in the year to provide free places at the camp at Heatree for families from South Devon with children suffering from Down's Syndrome. At the year end £4,106 remained unspent and was carried forward into 2021.
During the year the charity continued to raise money toward the purchase of a wheelchair. A total of £70 was raised by the year end and a balance of £3,019 was carried forward into 2021.
Page 36
Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
| Unrestricted funds General Free reserves Designated Fixed asset reserve Access fund Total unrestricted funds Restricted Camp Courageous Wheelchair fund Total restricted funds Total funds |
Balance at 1 January 2019 £ 232,017 1,601,094 4,717 1,605,811 1,837,828 1,000 - 1,000 1,838,828 |
Incoming resources £ 965,223 - - - 965,223 10,375 2,949 13,324 978,547 |
Resources expended £ (871,671) (80,822) - (80,822) (952,493) (7,269) - (7,269) (959,762) |
Transfers £ (76,893) 76,893 - 76,893 - - - - - |
Balance at 31 December 2019 £ 248,676 1,597,165 4,717 |
|---|---|---|---|---|---|
| 1,601,882 | |||||
| 1,850,558 | |||||
| 4,106 2,949 |
|||||
| 7,055 | |||||
| 1,857,613 |
20 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds £ - 144,779 (102,343) (140,000) (97,564) |
Unrestricted Designated £ 1,528,416 4,717 - - 1,533,133 |
Restricted £ - 7,125 - - 7,125 |
Total funds £ 1,528,416 156,621 (102,343) (140,000) |
|---|---|---|---|---|
| 1,442,694 |
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Heathercombe Brake Trust
Notes to the Financial Statements for the Year Ended 31 December 2020
21 Analysis of net debt
| 21 Analysis of net debt | |||
|---|---|---|---|
| Cash at bank and in hand Debt due within one year Debt due after more than one year Finance leases and hire purchase contracts Net debt |
At 1 January 2020 £ 357,243 - - (5,094) 352,149 |
Financing cash flows £ (232,137) (10,000) (140,000) 5,094 (377,043) |
At 31 December 2020 £ 125,106 (10,000) (140,000) - |
| (24,894) |
22 Related party transactions
Related party transactions
Jonathan Bishop, Chair of trustees, donated £1,468 to the charity in the year. The donation was unresticted.
Jonathan Bishop and Matthew Pitts, trustees, are both directors of Cornerstone Academy Trust.
The Charity made purchases of £432 (2019: £1,104) for IT services during the year from Clystnet, the Chair of Cornerstone Academy Trust, Henry Massey, owns this company.
Controlling party
The Charity is under the control of the trustees and there is not considered to be an ultimate controlling party.
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