Company registration number: 04096669 Charity registration number: 1089019
Big House Trust
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2023
David Dixie F C A Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE
Big House Trust
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 13 |
Big House Trust
Reference and Administrative Details Trustees Rev Barry Clark, Chair Ms A Nicholas MBE Mr C R Wilcock Ms S Edwards Other Officers Mr C T Bourne, Manager Mr P Murray, Residential Support Worker Charity Registration Number 1089019 Company Registration Number 04096669 Registered Office 150 Court Oak Road Harborne Birmingham B17 9AB Independent Examiner David Dixie F C A Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE Solicitors: Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bankers Santander 301 St Vincent Street Glasgow G2 5NT
Page 1
Big House Trust
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the charity’s Articles of Association, applicable law and the requirements of the Standard of Recommended Practice “Accounting and Reporting by Charities” issued in March 2005 and in accordance with the Financial Reporting Standard for Smaller Entities (effective 2008) and the Charities Act 1993.
Objectives and activities
Objects of the charity
The charity is a charitable company limited by guarantee. Its objectives are to provide, for the benefit of the community and as a demonstration of the gospel of Jesus Christ, housing and associated services for people in need, hardship, distress or any other charitable circumstances, to promote the mental, moral, spiritual and physical development of the residents of the houses owned by the company. During the year the charity managed Court Oak House, which provided housing for people in need. The charity is managed by the Trustees, who delegate day to day running to a live-in support worker.
Review of activities
The house has been managed in accordance with best practice, with the assistance of Green Square Accord Housing Association who manage the lease. On site our work has been supported by our house manager, who works two days per week and provides a monthly written report for the trustees, and our live-in support worker. The Chair of Trustees meets on a regular basis with them both.
Life in the house has been dominated by two events. One of our trustees, Priscilla White, became increasingly unwell and died in September 2022. She brought great wisdom to our work and is sadly missed. The second event, following an anonymous letter of complaint, resulted in the decision of Green Square Accord to terminate its support of Big House Trust. At the same time Birmingham City Council reviewed its role in funding many of our residents and concluded that the long term support of residents, some of whom have been here over 20 years, could not meet their Supported Exempt Accommodation Quality Standards. This means that Court Oak House will close and the residents moved to other accommodation. This news was shared with residents in March 2023 and has caused a great deal of stress and uncertainty.
Trustees
The trustees who have served during the year are listed on page 1. Priscilla White also served until her death. None of the trustees has any beneficial interest in the company except Mr C.Wilcock whose wife acts as book-keeper and received a fee of £120 in the year (2022 - £120). All trustees are members of the company and each guarantees to contribute £1 in the event of a winding up.
Review of financial position
The charity receives no funding other than rent from residents and small donations. We continue to review our income and expenditure streams, and our current reserve represents the costs of running the charity for in excess of four months, which the trustees consider adequate for the activities undertaken and the commitment to resident’s needs. However we are aware that rising fuel costs, both gas and electricity, are having a serious impact on our income/expenditure balance and will continue to explore ways of resolving this issue.
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.
Page 2
Big House Trust
Trustees' Report
Statement of trustees' responsibilities
The trustees (who are also the directors of Big House Trust for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
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 the incoming resources and application of resources, including its income and expenditure, of the charitable company 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 accounting standards, comprising FRS 102 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 proper accounting records that can 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 22 August 2023 and signed on its behalf by:
......................................... Rev Barry Clark Trustee
Page 3
Big House Trust
Independent Examiner's Report to the trustees of Big House Trust ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of Big House Trust as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... David Dixie F C A
Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE
22 August 2023
Page 4
Big House Trust
Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Investment income 5 Total Income Expenditure on: Charitable activities 6 Total Expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 14 Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Investment income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 14 |
Unrestricted £ 613 67,789 61 68,463 (75,460) (75,460) (6,997) (6,997) 32,734 25,737 Unrestricted funds £ 244 64,194 3 64,441 (75,192) (75,192) (10,751) (10,751) 43,485 32,734 |
Total 2023 £ 613 67,789 61 68,463 (75,460) (75,460) (6,997) (6,997) 32,734 25,737 Total 2022 £ 244 64,194 3 |
|---|---|---|
| 64,441 | ||
| (75,192) | ||
| (75,192) | ||
| (10,751) | ||
| (10,751) 43,485 |
||
| 32,734 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 14.
The notes on pages 7 to 13 form an integral part of these financial statements. Page 5
Big House Trust
(Registration number: 04096669) Balance Sheet as at 31 March 2023
| Note Current assets Debtors 11 Cash at bank and in hand 12 Creditors: Amounts falling due within one year 13 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 14 |
2023 £ 223 25,674 25,897 (160) 25,737 25,737 25,737 |
2022 £ 213 32,721 |
|---|---|---|
| 32,934 (200) |
||
| 32,734 | ||
| 32,734 | ||
| 32,734 |
For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 5 to 13 were approved by the trustees, and authorised for issue on 22 August 2023 and signed on their behalf by:
......................................... Rev Barry Clark Trustee
The notes on pages 7 to 13 form an integral part of these financial statements. Page 6
Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
1 Charity status
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
These financial statements were authorised for issue by the trustees on 22 August 2023.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Big House 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
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.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
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Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services 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.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
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.
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:
Research and development
Research and development expenditure is written off as incurred.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Page 8
Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
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Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
3 Income from donations and legacies
| Donations and legacies; Donations from individuals 4 Income from other trading activities Property rental income 5 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Unrestricted funds General £ 613 613 Unrestricted funds General £ 67,789 67,789 Unrestricted funds General £ 61 |
Total 2023 £ 613 613 Total funds £ 67,789 67,789 Total 2023 £ 61 |
Total 2022 £ 244 |
|---|---|---|---|
| 244 | |||
| Total 2022 £ 64,194 |
|||
| 64,194 | |||
| Total 2022 £ 3 |
Page 10
Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
6 Expenditure on charitable activities
| Note Rent Rates Light, heat and power Repairs and renewals Cleaning Insurance Printing, post and stationery Telephone and internet Accountancy fees Social activities, travel Management fees Professional fees Staff costs Governance costs 7 |
Unrestricted funds General £ 40,317 2,255 4,568 1,751 779 659 1,351 520 120 230 9,996 993 9,600 2,321 75,460 |
Total 2023 £ 40,317 2,255 4,568 1,751 779 659 1,351 520 120 230 9,996 993 9,600 2,321 75,460 |
Total 2022 £ 39,205 2,189 7,723 1,556 - 621 494 769 120 159 9,996 - 9,222 3,138 |
|---|---|---|---|
| 75,192 |
7 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Legal fees |
Unrestricted funds General £ 600 1,721 2,321 |
Total 2023 £ 600 1,721 2,321 |
Total 2022 £ 600 2,538 |
|---|---|---|---|
| 3,138 |
8 Trustees remuneration and expenses
During the year the charity made the following transactions with trustees:
Mr C R Wilcock
Mr Wilcock's wife received £120 (2022 - £120) for acting as book-keeper.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
Page 11
Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries |
2023 £ 9,600 |
2022 £ 9,222 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year.
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
11 Debtors
| 11 Debtors | ||
|---|---|---|
| Prepayments 12 Cash and cash equivalents Cash on hand Cash at bank 13 Creditors: amounts falling due within one year Other taxation and social security Accruals |
2023 £ 223 2023 £ 262 25,412 25,674 2023 £ 160 - 160 |
2022 £ 213 |
| 2022 £ 119 32,602 |
||
| 32,721 | ||
| 2022 £ 160 40 |
||
| 200 |
Page 12
Big House Trust
Notes to the Financial Statements for the Year Ended 31 March 2023
| 14 Funds Balance at 1 April 2022 £ Unrestricted funds General 32,734 Balance at 1 April 2021 £ Unrestricted funds General 43,485 15 Analysis of net assets between funds Current assets Current liabilities Total net assets Current assets Current liabilities Total net assets |
Incoming resources £ 68,463 Incoming resources £ 64,441 |
Resources expended £ (75,460) Resources expended £ (75,192) Unrestricted funds General £ 25,897 (160) 25,737 Unrestricted funds General £ 32,934 (200) 32,734 |
Balance at 31 March 2023 £ 25,737 |
|---|---|---|---|
| Balance at 31 March 2022 £ 32,734 |
|||
| Total funds at 31 March 2023 £ 25,897 (160) |
|||
| 25,737 | |||
| Total funds at 31 March 2022 £ 32,934 (200) |
|||
| 32,734 |
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