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 2023
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) | |
| Peter Kerswell | |
| Margaret Kerswell | |
| 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 - 4 |
| Independent Examiners Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 – 14 |
PEGSWOOD COMMUNITY HUB LIMITED
TRUSTEES REPORT FOR THE YEAR TO 31 MARCH 2023
Introduction
The Trustees present their report and the financial statements for the year ended 31 March 2023. 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.
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:-
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The obligations of board members.
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The main documents that set out the operation framework for the charity, including the Memorandum and Articles of Association.
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Resourcing and current financial position as set out in the latest published accounts
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Future plans and objectives.
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.
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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
The activities of the charity were able to get back to normal after Covid, and we were pleased to see the Hub was up and running as usual.
Our Friday Family Nights, which included a lot of hard work from all our board members and volunteers, proved very popular and provided a regular source of income for The Hub over the year.
The main problem facing us in the new year was the need to replace our main boiler (old age). We were looking for £4,500 to complete this work.
By the end of the year, we managed to raise the money needed through grants awarded from Barbour Foundation (£2,000), Hadrian Trust (£1,000 ), Parish Council (£1,000 ) and RW Mann (£450 ). We are grateful to all these funders.
The purchase and fitting of the new boiler is now in the hands of our regular Plumbing/Heating engineer.
All our Groups are back up to scratch, some with increased numbers (Kids Club and Watercolours).
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 and is now run as a NCC Family Hub.
Our KIDZ CLUB is going from strength to strength, with numbers having to be restricted on some nights.
Our WATERCOLOURS GROUP is increasing in numbers, with new members coming along on a regular basis.
All our other CRAFT groups are progressing well, as are our Monday and Wednesday Lunches and Friday Breakfasts.
OVERALL, The Hub is progressing reasonably well, and we will increase our efforts in the coming year to secure grants for core funding.
Financial Report
Total income increased slightly in the year to £45,056 (2022: £44,035). Income included grants received of £7,664, of which £6,664 relates to restricted projects. The Trustees are
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PEGSWOOD COMMUNITY HUB LIMITED
grateful for the support of all other funders, volunteers, supporters and Hub users during the year.
Costs, including depreciation of £6,863, were £53,484 (2022: £49,474). This meant that overall, there was a small operating deficit of £1,565 for the year, and a deficit of £8,428 after depreciation costs. 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 2023 were £11,676 (2022: £13,846). The bank balance has therefore fallen slightly over the course of the year as a result of the operating deficit. Of the cash/bank balances held at the year end, £6,664 related to restricted projects, namely the Co-operative grant and the amounts held for the new boiler. However, the charity is debt free, and the emphasis continues to be a concentration on break-even operations, and on building core reserves where possible.
Reserves as at 31 March 2023 were £50,897 (2022: £59,325), of which £24,964 was unrestricted. Unrestricted cash reserves represent approximately 3 months’ basic 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:
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select suitable accounting policies and apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether the policies adopted are in accordance with the appropriate SORP on Accounting by Charities and the Accounting Regulations and with applicable accounting standards, 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 charity will continue in business.
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.
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PEGSWOOD COMMUNITY HUB LIMITED
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 15[th] June 2023
And signed on its behalf by
............................................ Kevin Hope - Chair and Trustee
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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 2023, which are set out on pages 6 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:
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(1) accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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(2) the accounts do not accord with those records; or
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(3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than the requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an Independent Examination; and
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(4) 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 (FRS102)).
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 15[th] June 2023
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PEGSWOOD COMMUNITY HUB LIMITED
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| Notes Income 2 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 £ 1,000 1,754 35,627 11 38,392 46,621 46,621 (8,229) 3,462 (11,691) - (11,691) 36,655 24,964 |
Restricted Funds £ 6,664 - - - 6,664 - - 6,664 3,401 3,263 - 3,263 22,670 25,933 |
2023 £ 7,664 1,754 35,627 11 45,056 46,621 46,621 (1,565) 6,863 (8,428) - (8,428) 59,325 50,897 |
2022 |
|---|---|---|---|---|
| £ 19,647 5,683 18,696 9 |
||||
| 44,035 41,399 |
||||
| 41,399 22,591 8,075 |
||||
| (5,439) - |
||||
| (5,439) | ||||
| 64,764 | ||||
| 59,325 |
The statement of financial activities includes all gains and losses in the year.
All incoming resources and resources expended derive from continuing activities.
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PEGSWOOD COMMUNITY HUB LIMITED
BALANCE SHEET AS AT 31 MARCH 2023
| 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 Net assets Funds Unrestricted Funds 12 Restricted Funds 12 Total funds |
2023 £ £ 38,892 1,323 1,000 11,676 13,999 1,994 - 1,994 12,005 50,897 24,964 25,933 50,897 |
2022 | 2022 |
|---|---|---|---|
| £ 1,323 1,000 11,676 13,999 1,994 - 1,994 |
£ 1,323 699 13,846 15,868 1,954 344 2,298 |
£ 45,755 13,570 |
|
| 59,325 | |||
| 36,655 22,670 |
|||
| 59,325 |
For the financial period ended 31 March 2023, the company was entitled to exemption from audit under section 477(1) of the Companies Act 2006; and no notice has been deposited under section 476(1) requesting an audit. The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the period and of its profit or loss for the financial period in accordance with the requirements of section 394 and which otherwise comply with the Companies Act 2006, so far as applicable to the company.
The financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 102, Section 1a Small Entities.
Approved by the Board on 15[th] June 2023
Signed...................................... Kevin Hope, Chair
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
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.
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
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.
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
2. Income
| 2023 Unrestricted Restricted Total £ £ £ Grant Income Grants received 1,000 6,664 7,664 Investment and other income 11 - 11 Charitable Activities Donations, fundraising and social enterprise 17,542 - 17,542 Activity fees & other income 18,085 - 18,085 Rentals and office income 1,754 - 1,754 Total income 38,392 6,664 45,056 3. Expenditure 2023 Unrestricted Restricted Total £ £ £ Charitable expenditure Fundraising and enterprise - - - Activities 18,093 - 18,093 Building 15,834 - 15,834 Management and administration 5,516 - 5,516 Salaries and wages 6,728 - 6,728 Miscellaneous - - - Depreciation 3,462 3,401 6,863 49,633 3,401 53,034 Governance Accountancy fees 450 - 450 Total resources expended 50,083 3,401 53,484 |
2023 | 2023 | Total £ 7,664 11 17,542 18,085 1,754 45,056 |
Total £ 7,664 11 17,542 18,085 1,754 45,056 |
2022 £ 19,647 9 14,201 4,495 5,683 44,035 2022 £ - 11,563 18,881 5,249 4,986 270 8,075 49,024 450 49,474 |
2022 £ 19,647 9 14,201 4,495 5,683 44,035 2022 £ - 11,563 18,881 5,249 4,986 270 8,075 49,024 450 49,474 |
||
|---|---|---|---|---|---|---|---|---|
| Restricted £ 6,664 - - - - 6,664 2023 |
||||||||
| Unrestricted £ - 18,093 15,834 5,516 6,728 - 3,462 49,633 450 50,083 |
Restricted £ - - - - - - 3,401 3,401 - 3,401 |
Total £ - 18,093 15,834 5,516 6,728 - 6,863 |
£ - 11,563 18,881 5,249 4,986 270 8,075 |
|||||
53,034 450 |
49,024 450 |
|||||||
| 53,484 | 49,474 |
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
4. Tangible fixed assets
| Cost At 1 April 2022 Additions As at 31 March 2023 Depreciation At 1 April 2022 Charge for the year As at 31 March 2023 Net Book Value As at 31 March 2023 As at 31 March 2022 |
Property & Improv- ements £ 83,959 - 83,959 55,821 4,221 60,042 23,917 28,138 |
Equipment Fixtures Café Fittings £ £ £ 33,777 13,280 14,167 - - - 33,777 13,280 14,167 26,692 9,622 7,293 1,063 548 1,031 27,755 10,170 8,324 6,022 3,110 5,843 7,085 3,658 6,874 |
Total £ 145,183 - |
|---|---|---|---|
| 145,183 | |||
| 99,428 6,863 |
|||
| 106,291 | |||
| 38,892 | |||
| 45,755 |
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.
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
5. Debtors
| Trade debtors Prepayments |
2023 £ 1,000 - 1,000 |
2022 |
|---|---|---|
| £ 699 - |
||
| 699 |
6. Creditors: amounts falling due within one year
| Trade creditors Accruals Other creditors and Deferred Income |
2023 £ - 450 1,544 1,994 |
2022 |
|---|---|---|
| £ 1,504 450 344 |
||
| 2,298 |
7. Staff costs
| Salaries, employer NI and pension costs |
2023 £ 6,728 6,728 |
2022 |
|---|---|---|
| £ 4,986 |
||
| 4,986 |
No employee received emoluments of more than £60,000.
8. The average number of staff
The charity had one member of staff employed during the year (2022: 1 FTE).
| Charitable Activities Governance |
2023 1 - 1 |
2022 |
|---|---|---|
| 1 - |
||
| 1 |
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
9. Transactions with trustees and other related parties
No payments were made to trustees or other related parties (2022: £nil) for services as a Trustee.
10. Governance costs
----- Start of picture text -----
2023 2022
£ £
Accountancy and examination fees 450 450
----- End of picture text -----
11 . Restricted Grants
The following restricted grants were brought forward, having been received for restricted capital purposes in previous years.
| Fund names Project New Boiler Grants Premises Co-operative Activities Capital Grants b/f Premises NCC Towns Fund Fixtures Total Funds |
Fund balances brought forward Fund transfer at 1 April 2022 Incoming resources Outgoing resources and transfers Fund balances carried forward £ £ £ £ £ - - 4,050 - 4,050 - - 2,614 - 2,614 21,225 - - 3,184 18,041 1,445 - - 217 1,228 |
|---|---|
| 22,670 - 6,664 3,401 25,933 |
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PEGSWOOD COMMUNITY HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
12. Fund balances
| Balance 1 April 2022 incl transfers Incoming Resources Resources Expended Transfer Balance 31 March 2023 £ £ £ £ £ Unrestricted Funds Management & Administration - - 5,516 (5,516) - Core grants 7,997 1,000 8,997 - - Premises - 1,754 15,834 (14,080) - Activities and enterprise 28,658 34,798 18,896 19,596 24,964 Donations / fundraising - 840 840 - - Total 36,655 38,392 50,083 - 24,964 Restricted funds New Boiler Grants - 4,050 - - 4,050 Co-operative - 2,614 - - 2,614 Capital 22,670 - 3,401 - 19,269 Total 22,670 6,664 3,401 - 25,933 TOTAL FUNDS 59,325 45,056 53,484 - 50,897 3. Analysis of net assets between funds Unrestricted Funds Restricted Funds Total £ £ £ Tangible Fixed Assets 19,623 19,269 38,892 Current Assets 7,335 6,664 13,999 Creditors (1,994) - (1,994) Total 24,964 25,933 50,897 |
Balance 1 April 2022 incl transfers Incoming Resources Resources Expended Transfer Balance 31 March 2023 £ £ £ £ £ - - 5,516 (5,516) - 7,997 1,000 8,997 - - - 1,754 15,834 (14,080) - 28,658 34,798 18,896 19,596 24,964 - 840 840 - - |
Balance 1 April 2022 incl transfers Incoming Resources Resources Expended Transfer Balance 31 March 2023 £ £ £ £ £ - - 5,516 (5,516) - 7,997 1,000 8,997 - - - 1,754 15,834 (14,080) - 28,658 34,798 18,896 19,596 24,964 - 840 840 - - |
Balance 1 April 2022 incl transfers Incoming Resources Resources Expended Transfer Balance 31 March 2023 £ £ £ £ £ - - 5,516 (5,516) - 7,997 1,000 8,997 - - - 1,754 15,834 (14,080) - 28,658 34,798 18,896 19,596 24,964 - 840 840 - - |
|---|---|---|---|
| 36,655 | 38,392 50,083 - 24,964 |
||
| - - 22,670 |
4,050 - - 4,050 2,614 - - 2,614 - 3,401 - 19,269 |
||
| 22,670 | 6,664 3,401 - 25,933 |
||
| 59,325 | 45,056 53,484 - **50,897 ** |
||
| Restricted Funds £ 19,269 6,664 - 25,933 |
Total £ 38,892 13,999 (1,994) 50,897 |
13. Analysis of net assets between funds
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