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2022-03-31-accounts

PEGSWOOD COMMUNITY HUB LIMITED

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

CHARITY NUMBER 1097910 COMPANY NUMBER 04328999

TRUSTEES REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2022

Richard Alsept Chartered Accountant 16 Burlington Terrace Cardiff CF5 1GG

PEGSWOOD COMMUNITY HUB LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Name of Charity Pegswood Community Hub Limited
(formerly Pegswood Community Project Limited)
Registered Charity No 1097910
Registered Company No 04328999
Directors and Charity Kevin Hope (Chair)
Trustees Anne Arter
Martin Booth
John Dobinson
Thomas Graham (Treasurer)
Claire Hope
Peter Stonell (resigned 20thOctober 2021)
Margaret Kerswell
Lee Richardson
Debra Tighe
Secretary Thomas Graham
Registered Office Longhirst Road
Pegswood
Northumberland
NE61 6XF
Independent Examiner Richard Alsept Chartered Accountant
16 Burlington Terrace
Cardiff
CF5 1GG
Bankers Cooperative Bank
PO Box 250
Delf House
Southway
Skelmersdale
WN8 6WT
Solicitors Sweeney Miller
Mowbray Villas
Mowbray Road
Sunderland
SR2 7EA

PEGSWOOD COMMUNITY HUB LIMITED

CONTENTS
Page
Trustees Report 1 - 3
Independent Examiners Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 – 14

PEGSWOOD COMMUNITY HUB LIMITED

TRUSTEES REPORT FOR THE YEAR TO 31 MARCH 2022

Introduction

The Trustees present their report and the financial statements for the year ended 31 March 2022. The trustees have prepared the annual report and financial statements in accordance with the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” effective January 2015.

Name Change

The company changed its name by special resolution on 28[th] November 2012 from Pegswood Community Project Limited to Pegswood Community Hub Limited.

Governing document

Pegswood Community Hub Limited is a company limited by guarantee and its governing document is its Memorandum and Articles of Association. It is registered as a charity with the charity commission. Every member of the charity undertakes to contribute such an amount as may be required (not exceeding £1) to the charity's assets if it should be wound up while he or she is a member or within one year after he or she ceased to be a member.

Organisation

The charity is managed by the trustees. The number of trustees is restricted with the makeup of the representatives of the management committee such as are required to fulfil the criteria set out in the Memorandum and Articles of Association, to ensure adequate representation of all areas of the community.

Appointment of Trustees

The Directors of the company are also charity trustees for the purposes of Charity Law. Under the requirements of the Memorandum and Articles of Association Directors are elected annually by the company at the general meeting, with one third resigning in rotation. Between annual meetings, the board may appoint Directors on a temporary basis to be confirmed by the company in the general meeting.

Induction of Trustees

The majority of trustees are already familiar with the practical work of the charity. Additional new trustees are invited and encouraged to attend a series of short meetings with some of the existing trustees to familiarise themselves with the charity and the contexts within which it operates. These cover:-

There is a strict child and vulnerable people protection policy which is reviewed annually in consultation with all staff working with children or young people.

Page 1

PEGSWOOD COMMUNITY HUB LIMITED

Objectives and activities

To provide an advice and support network for families within Pegswood in the County of Northumberland, to provide a safe, secure and creative outlet for both the young and adults of the village and those disaffected, otherwise excluded, or in need, and to advance adult education and training, promote the presentation and protection of good health and relieve the effects of poverty amongst the residents of the parishes of Pegswood and Longhirst.

Achievements and public benefit

After all the trials and tribulations of COVID, The Hub finally re-opened at the end of June 2021, with all of our groups coming back at various intervals during July and August.

We officially re-opened on Friday 3[rd] September with a “Northumbrian Night “, which had been the first casualty of the first Covid Lockdown.

Since September all of our groups have started to come back on a regular basis. Our ELDERFLOWERS are back up to full strength and are going well.

The same can be said of our Toddler group “ PIPLINGS “ which re-started with reduced numbers due to Covid regulations on a bookable place basis, but are now back on mainstream.

Our KIDZ CLUB has re-started and is going from strength to strength, with numbers having to be restricted on some nights.

Our WATERCOLOURS GROUP has re-started, and is now proceeding normally. They will be holding an exhibition later this year at the Parish Council led “Village Fair Day.”

All our other CRAFT groups are progressing well, as are our Monday and Wednesday Lunches and Friday Breakfasts.

One major drawback during the year was a cost of £3,000 to repair our ageing gas boiler. The boiler needs to be replaced next year and we are hoping to do this by means of a grant.

In conclusion: The Hub is progressing very well, with our Friday Family Nights and various themed nights being well attended and bringing in much needed revenue.

Financial Report

Total income increased slightly in the year to £44,035 (2021: £41,798). Income included Covid related grants of 13,295, and the Trustees are grateful for this, and the support of all other funders, supporters and Hub users during the year.

Costs, including depreciation of £8,075, were £49,474 and the Trustees remain conscious of the need to control costs and run the Hub on a broadly break-even basis at the very least.

Bank and cash balances at 31 March 2022 were £13,846 (2021: £27,202). During the year, the Charity completely repaid the Bounce Back Loan of £19,000, and the Charity is now completely debt free.

Page 2

PEGSWOOD COMMUNITY HUB LIMITED

Reserves at 31 March 2022 were £59,325 (2021: £64,764), of which £36,655 was unrestricted. Unrestricted cash reserves represent approximately 4 months’ operating costs, and the Trustees remain committed to building reserves in the coming years.

Trustees Responsibilities

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

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

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

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

Risk Review

The trust has reviewed its Risk Assessment and addressed the risks contained. This will be continually reviewed and updated using a Risk Log.

This report was approved by the Trustees on 16[th] June 2022

And signed on its behalf by

............................................ Kevin Hope - Chair and Trustee

Page 3

PEGSWOOD COMMUNITY HUB LIMITED

INDEPENDENT EXAMINERS REPORT ON THE UNAUDITED FINANCIAL STATEMENTS TO THE TRUSTEES OF PEGSWOOD COMMUNITY HUB LIMITED.

I report to the Charity Trustees on my examination of the accounts of The Trust for the year ended 31 March 2022, which are set out on pages 5 to 14.

Respective and basis of report

The trustees, who are also the directors of Pegswood Community Hub Limited (‘the Company’) for the purposes of company law, 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 charity 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 my examination giving me cause to believe:

I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

……………………………………… Richard Alsept ACA 16 Burlington Terrace Cardiff CF5 1GG

DATE 16[th] June 2022

Page 4

PEGSWOOD COMMUNITY HUB LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Notes
Income
2
Fundraising & Activities
Charitable Activities
Grants received
Rental income
Other charitable activities
Investment income
Total income
Expenditure
Charitable activities
3
Total expenditure
Operational income
Depreciation charge
Net income / (expenditure)
before transfers
Gross transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
14,201
19,647
5,683
4,495
9
44,035
41,399
41,399
2,636
4,075
(1,439)
-
(1,439)
38,094
36,655		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
4,000
(4,000)
-
(4,000)
26,670
22,670		 2022
£
14,201
19,647
5,683
4,495
9
44,035
41,399
41,399
2,636
8,075

(5,439)
-
(5,439)
64,764
59,325		 2021
£
4,810
35,784
1,131
58
15
41,798
25,276
25,276
22,591
9,018
7,504
-
7,504
57,260
64,764

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

All incoming resources and resources expended derive from continuing activities.

Page 5

PEGSWOOD COMMUNITY HUB LIMITED

BALANCE SHEET AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
4
Current assets
Stock
Debtors
5
Cash in hand and at bank
Current Liabilities
6
Creditors and accruals
Other creditors and
deferred income
Net current assets
Creditor: due after one
year
Net assets
Funds
Unrestricted Funds
11
Restricted Funds
11
Total funds		 2022
£
£
45,755
1,323
699
13,846

15,868

1,954
344
2,298
13,570
-

59,325
36,655
22,670

59,325		 2021 2021
£
1,323
699
13,846
15,868
1,954
344
2,298		 £
300
8,335
27,202
35,837
2,928
254
3,182		 £
51,109
32,655
(19.000)
64,764
38,094
26,670
64,764

For the financial period ended 31 March 2022, the company was entitled to exemption from audit under section 477(1) of the Companies Act 2006; and no notice has been deposited under section 476(1) requesting an audit. The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the period and of its profit or loss for the financial period in accordance with the requirements of section 394 and which otherwise comply with the Companies Act 2006, so far as applicable to the company.

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

Approved by the Board on 16[th] June 2022

Signed...................................... Kevin Hope, Chair

Page 6

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

1. Accounting Policies

1.1. Accounting basis and standards

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

The charity constitutes a public benefit entity as defined by FRS 102.

1.2. Tangible fixed assets and depreciation Depreciation on fixed assets is provided at rates estimated to write off the cost or revalued amounts, less estimated residual value, of cash asset over its expected useful life as follows:

Land and buildings 15% reducing balance Office Equipment 15% reducing balance Fixtures and Fittings 15% reducing balance Cafe Equipment 15% reducing balance

All assets are reviewed regularly for impairment, and written down to their recoverable, where necessary.

1.3. Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts to the charity and is included in full in the Statement of Financial Activities upon receipt. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Bank interest is included when receivable.

Income from charitable activities is accounted for as the charity earns the right to consideration by its performance.

1.4. Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes unrecoverable VAT.

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

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

Page 7

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

1.5. Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of funding.

1.6. Pensions

The Project operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.7. 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.

1.8. Trade debtors

Trade debtors are amounts due from funders 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 company will not be able to collect all amounts due according to the original terms of the receivables.

1.9. Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 8

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

2. Income

2022
Unrestricted
Restricted Total
£
£
£
Grant Income
Grants received
19,647
-
19,647
Investment and other income
9
-
9
Charitable Activities
Donations, fundraising and
social enterprise
14,201
-
14,201
Activity fees & other income
4,495
-
4,495
Rentals and office income
5,683
-
5,683


Total income
44,035
-
44,035
3.
Expenditure
2022
Unrestricted
Restricted Total
£
£
£
Charitable expenditure
Fundraising and enterprise
-
-
-
Activities
11,563
-
11,563
Building
18,881
-
18,881
Management and administration
5,249
-
5,249
Salaries and wages
4,986
-
4,986
Miscellaneous
270
-
270
Depreciation
4,075
4,000
8,075
45,024
4,000
49,024
Governance
Accountancy fees
450
-
450


Total resources expended
45,474
4,000
49,474		 2022 2022 Total
£

19,647

9

14,201

4,495

5,683

44,035		 Total
£

19,647

9

14,201

4,495

5,683

44,035		 2021
£
35,784
25
4,810
48
1,131
41,798
2021
£
492
1,265
15,104
3,852
2,790
1,323
9,018
33,844
450
34,294		 2021
£
35,784
25
4,810
48
1,131
41,798
2021
£
492
1,265
15,104
3,852
2,790
1,323
9,018
33,844
450
34,294
Restricted
£

-

-

-

-

-

-
2022
Unrestricted
£
-
11,563
18,881
5,249
4,986
270
4,075
45,024
450

45,474		 Restricted
£

-

-

-

-

-

-
4,000

4,000

-

4,000		 Total
£

-

11,563

18,881

5,249

4,986

270
8,075		 £
492
1,265
15,104
3,852
2,790
1,323
9,018

49,024

450		 33,844
450
49,474 34,294

Page 9

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

4. Tangible fixed assets

Cost
At 1 April 2021
Additions
As at 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
As at 31 March 2022
Net Book Value
As at 31 March 2022
As at 31 March 2021		 Property
& Improv-

ements
£
83,959
-
83,959
50,855
4,966
55,821
28,138
33,104		 Equipment Fixtures
Café
Fittings
£
£
£
33,777
13,121
11,605

-
159
2,562

33,777
13,280
14,167
25,442
8,976
6,080
1,250
646
1,213

26,692
9,622
7,293
5
7,085
3,658
6,874
8,335
4,145
5,525		 Total
£
142,462
2,721
145,183
91,353
8,075
99,428
45,755
51,109

Included in property and improvements at a cost of £1 is the centre from which the Hub operates at Longhirst Road, Pegswood, and which was valued by Rickards in January 2015 at a market value of £150,000 for current use and a reinstatement value of £725,000 for insurance purposes. The purchase of the building was managed for the Hub by Northumberland County Council who subsequently transferred ownership on 9 November 2005, for the nominal value of £1.

Page 10

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

5. Debtors

Trade debtors
Prepayments		 2022
£
699
-
699		 2021
£
8,335
-
8,335

6. Creditors: amounts falling due within one year

Trade creditors
Accruals
Other creditors and Deferred Income		 2022
£
1,504
450
344
2,298		 2021
£
2,478
450
254
**3,182 **

6. Creditors: amounts falling due after one year

Bank Bounce Back Loan 2022
£
-

-
 2021
£
19,000
19,000

The Bounce Back Loan was repaid in full during the year.

7. Staff costs

Salaries, employer NI
and pension costs		 2022
£
4,986
4,986		 2021
£
2,790
2,790

No employee received emoluments of more than £60,000.

Page 11

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

8. The average number of staff

The average number of staff employed by the Charity during the year was 1 FTE (2021: 1 FTE).

Charitable Activities
Governance		 2022
1
-
1		 2021
1
-
1

9. Transactions with trustees and other related parties

No payments were made to trustees or other related parties (2021: £nil) for services as a Trustee.

10. Governance costs

0.
Governance costs
Accountancy and examination fees 2022
£
450		 2021
£
600

Page 12

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

11 . Restricted Grants

The following restricted grants were brought forward, having been received for restricted capital purposes in previous years.

Fund names
Project
Capital Grants b/f
Premises
NCC Towns Fund
Fixtures
Total Funds
.
Fund balances
Unrestricted Funds
Management &
Administration
Core / Covid grants
Premises
Activities and enterprise
Donations / fundraising
Total
Restricted funds
Capital
Total
TOTAL FUNDS		 Fund
balances
brought
forward
Fund
transfer
at 1 April
2021
Incoming
resources
Outgoing
resources
and
transfers
Fund
balances
carried
forward
£
£
£
£
£
24,970
-
-
3,745
21,225
1,700
-
-
255
1,445
26,670
-
-
4,000
22,670
Balance
1 April
2021 incl
transfers
Incoming
Resources
Resources
Expended
Transfer Balance
31 March
2022
£
£
£
£
£
-
548
10,044
9,496
-
11,385
15,296
-
(18,684)
7,997
-
13,990
23,867
9,877
-
26,709
13,512
11,563
-
28,658
-
689
-
(689)
-
38,094
44,035
45,474
-
36,655
26,670
-
4,000
-
22,670
26,670
-
4,000
-
22,670
64,764
44,035
49,474
-
59,325

12. Fund balances

Page 13

PEGSWOOD COMMUNITY HUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2022

13. Analysis of net assets between funds

Tangible Fixed Assets
Current Assets
Creditors
Total		 Unrestricted
Funds

£
23,085
15,868
(2,298)
36,655		 Restricted
Funds
£

22,670

-

-
22,670		 Total
£
45,755
15,868
(2,298)
59,325

Page 14