PEGSWOOD COMMUNITYHUB LIMITED {A company limited by guaranteè and not having a share capltal) CHARITY NUMBER 1097910 COMPANY NUMBER 04328999 TRUSTEES REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2024 Richard Alsept Chartered Accountant 16 Burlington Terrace Cardiff CF5 1GG
PEGSWOOD COMMUNITYHUB 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 Trustees Kevin Hope (Chair)- Resigned 23rd April 2024 Anne Arter- Resigned 23rt1 April 2024 Martin Booth John Dobinson Thomas Graham (Treasurer) Peter Kerswell Margaret Kerswell Debra Tighe Claire Hope (resigned 2nd June 2023) Lee Richardson (resigned 23rd April 2024) Secretary Thomas Graham Registered Offi Longhirst Road Pegswood Northumberland NE616XF Independent Examiner Richard Alsepl Chartered Accountant 16 Burlington Terrace Cardiff CF51GG Bankers Cooperative Bank PO Box 250 Delf House Southway Skelmersdale WN8 6wr Solicitors Sweeney Miller Mowbray Villas Mowbray Road Sunderland SR2 7EA
PEGSWOOD COMMUNITY HUB LIMITED CONTENTS Page Trustees Report Independent Examiners Report statement of Financial Activities Balance Sheet Notes to the Financial Statements 8-14
PEGSWOOD COMMUNITY HUB UMITED TRUSTEES REPORT FOR THE YEAR TO 31 MARCH 2024 Introduction The Trustees present their report and the financial ststements for the year ended 31 March 2024. The trustees have prepared the annual report and financial statements in accordance with the provisions of the Statement of Recommended Practice (SORP) °Ac¢ounting 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 charty commission. Every member of the charity undertakes lo contribute such an amounl 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 make- up 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 confimied 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'.- The obligations of board members. The main documents that set oul the operation framework forthe charity, including the Memorandum and Articles of Association. Resourcing and current financial position as set out in the latest published accounts 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. Page I
PEGSWOOD COMMUNITY HUB LIMITED Objectives and activities To provide an advice and support nefviork for families within Pegswood in the County of Northumberland, to provide a safe, secure and creative outlet for both Ihe 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 We managed to overcome our major problem for 2023124, by replacing our main boiler, which finally succumbed to old age. 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. We are still suffering with British Gas, who have given us some credit for paying VAT at 200/0 instead of charging 5 % as we are a registered charity, but are refusing some of our claims. This is an ongoing situation which will come to a satisfactory conclusion. All our Groups are performing well, some with increased numbers (Kids Club and Walercolours). Our ELDERFLOWERS are back up to full strength and are going well. The same can be said of our Toddler group "PIPLINGS ' who are now run as a NCC Family Hub. Our KIDZ CLUB are going from strength to strength, with numbers having to be restricted on some nights. Our WATERCOLOURS GROUP are 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. A new Art group U3A ART has started on Monday afternoons and are averaging 4- 6 members each week. OVERALL, The Hub is progressing on a very tight budget, 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 £60,534 (2023.. £45,056). Income included grantsldonations received of £8,252, of which £5,097 relales to restricted projects. The Trustees are grateful for the support of all other funders, volunteers, supporters and Hub users during the year. Page 2
PEGSWOOD COMMUNITY HUB LIMITED Costs, including depreciation of £5,834, were £73,200 (2023.. £53,484). This meant that overall, there was an operating deficit of £6,832 for the year, and a deficil of £12,666 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 2024 were £4,300 (2023.. £11,676). The bank balance has therefore fallen slightly over the course of the year as a result of the operating deficit. Of the cashlbank balances held at the year end, £1,362 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 COnntratIon on break-even operations, and on building core reserves where possible. ReseNes as at 31 March 2024 were £38,231 (2023: £50,897), of which £20,490 was unrestricted. However, unrestricted cash reseNes at approximately £3,000 represent just one months, basic operating costs, and the Trustees remain committed to urgently building reserves in the coming months and 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 al the end of the period, and adequately distinguish any material special Irust or olher reslricted fund of the charity. In preparing those financial statements the trustees are required to.. select suitable accounting policies and apply them consistently., make judgements and estimates that are reasonable and prudent., state whether the policies adopted are in accordan 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 prepare Ihe 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 al any time, the financial position of the charily, 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, Ihere is no relevanl information needed by the company's accountants in connection with preparing their report of which the company's accountanls are unaware, and each director has taken all the steps that they ought to have taken as director in order to make themselves aware ofany relevant audit information and to establish that the company's accountants are aware of that informalion. Page 3
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 20th June 2024 And signed on its behalf by Tom Graham - Trustee Page 4
PEGSWOOD COMMUNITYHUB 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 2024, 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 Ihe requiremenls of the Companies Act 2006 ('the 2006 Acl'}. Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Acl and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 ofthe Charities Act 2011 ('the 2011 Act,). In carrying oul my examination I have followed the Directions given by the Charity Commission under section 145(51(b) of the 2011 Act. Independent examiner's statam8nt 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- {11 accounting records were nol kept in respect of the Company as required by section 386 of the 2006 Act., or (21 the accounts do not accord with those records., or (3} Ihe 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 {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 20th June 2024 Page 5
PEGSWOOD COMMUNITY HUB LIMITED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Notes Unrestrl¢ted Funds Restricted Funds 2024 2023 Income Charitable Activities Grants received Rental income Other charitable activities Investment inGome Total in¢ome 3,155 1,970 50,286 26 55,437 1,362 4,517 1,970 54,021 26 60,534 7,664 1,754 35,627 3.735 5,097 45,056 Expenditure Charitable activities Total expenditure 56,967 56,967 10,399 10,399 67,366 67,366 46,621 46,621 Operational income (1,530) (5,302) 16,832) (1,5651 Depreciation charge 2,944 2,890 5,834 6,863 Net income l (expenditure) before transfers (4,474) (8,192) 112,666) (8,428) Gross transfers beeen funds Net movement in funds (4,474) (8,192) (12,666) (8,428) Total funds brought forward 24,964 25,933 50,897 59,325 Total funds carried forward 38,231 50,897 The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. Page 6
PEGSWOOD COMMUNITY HUB LIMITED BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets 33,058 38,892 Current assets Stock Debtors Cash in hand and at bank 1,323 1,323 1,000 11,676 13,999 5,623 Current Liabilities Creditors and accruals Other creditors and deferred income 450 1,994 450 1,994 Net current assets 5,173 12,005 Net assets 38,231 50,897 Funds Unrestricted Funds Restricted Funds 20,490 17,741 24,964 25,933 12 Total funds 38,231 Forthe linancial period ended 31 March 2024. the company was entitled lo exemption from audit under section 47711) of the Companies Act 2006,. and no notice has been deposited under section 476111 requesting an audit. The Iruslees 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 slate of affairs of the company as atthe end of the period and of ils profit or loss forthe 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 5talemenls have been prepared in accordance with the provisions of Financial Reporting Stsndard 102, Section 1 a Small Entities. Approved by the Board on 20th June 2024 Signed........ om Graham, Trustee Page 7
PEGSWOOD COMMUNITY HUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Accounting Policies 1.1. Accounting basls and standards The financial statements are prepared under the historical cost convention and in accordance with the provisions of Financial Reporling Standard 102, Section la 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. Tangible fixed assets and depreciation Depreciation on fixed assets is provided at rates estimated to write off the cost or revalued amounts, less estimaled residual value, ofcash asset over its expected useful life as follows.. Land and buildings 150/0 reducing balan Office Equipment 15 % reducing balance Fixtures and Fittings 150/0 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 ¢alegories of income.. Voluntary income is received by way of grants, donations and gifts to the charity and is included in full in Ihe Statement of Financial Activities upon receipt. Grants, where enlillement 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 8
PEGSWOOD COMMUNITY HUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 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 lemis of funding. 1.6. Pensions The Project operates a defined contributions pension s¢hame. Contributions are charged in the accounts as they become payable in accordance wilh the rules of the scheme. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-temi highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignif5canl risk of change in value. 1.8. Trade debtors Trade debtors are amounts due from funders for merchandise sold or SeNiS perfomed in the ordinary course of business. Trade debtors are recognised initially at the transadian 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 seNices that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabililies if the Company does not have an uncondilional right, at the end of the reporting period, to defer settlement of the creditor for at least e1ve months after the reporting date. If there is an unconditional righl to defer settlement for at least e1ve months after the reporting date. they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequenlly measured at amortised cost using the effective interest method. Page 9
PEGSWOOD COMMUNITY HUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Income 2024 2023 Unrestricted Restricted Total Grant Income Grants received 3,155 1,362 4,517 7,664 Investment and other income 26 26 Charitable Activities Donations, fundraising and enterprise Activity fees & other income 33,943 16,343 3.735 37,678 16,343 17,542 18,085 Rentals and office income 1,970 1,970 1,754 Total income 5,097 Expenditure 2024 2023 Unrestricted Restricted Total Charitable expenditure Activities & Enterprise Building Office and overheads Salaries and wages Miscellaneous Deprecialion 17,193 24,304 7,350 7,670 2,614 7,785 19,807 32,089 7,350 7,670 18,093 15,834 5,516 6,728 2,890 13,289 5,834 72,750 6,863 53,034 59,461 Governance Accountancy fees 450 450 450 Total resources expended 59,911 73,200 53,484 Page 10
PEGSWOOD COMMUNITYHUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Tangible fixed assets Property & Improv- ements Equipment Fixtures Fittings Cafa Total Cost At 1 April 2023 83,959 33,777 13,280 14,167 145,183 Additions As at 31 March 2024 83,959 33,777 13,280 14,167 145,183 Depreclation At 1 April 2023 60,042 27,755 10,170 8,324 106,291 Charge for the year 3,589 903 466 876 5,834 As at 31 March 2024 63,631 28,658 10,636 112,125 Net Book Value As at 31 March 2024 20,328 5,119 2,644 4,967 33,058 As at 31 March 2023 23,917 6,022 3,110 5,843 38,892 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 11
PEGSWOOD COMMUNITY HUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Debtors 2024 2023 Trade debtors 1,000 Creditors: amounts falling due within one year 2024 2023 Trade creditors Accruals Other creditors and Deferred Income 450 450 1,544 450 Staff costs 2024 2023 Salaries, employer Nl and pension Costs 7,670 7,670 6,728 No employee received emoluments of more than £60,000. The average number of staff The charity had one member of staff employed during the year (2023.. 1 FTE). 2024 2023 Charitable Activities Governance Page 12
PEGSWOOD COMMUNITYHUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 Transactions with trustees and other related parties No payments were made to trustees or other related parties {2023= £nil) for serVIS as a Trustee. 10. Governance costs 2024 2023 Accountancy and examination fees 450 450 11. Restricted Grants and Donations Fund names Project Fund Fund balances transfer brought at 1 April forward 2023 Incoming Outgoing resources resources and transfers Fund balances carried forward New Boiler Grants Premises Catherine Cookson Trust Co-operative Capital Grants blf Premises NCC Towns Fund Fixtures 4,050 3,735 7,785 Premises 250 250 Aclivities 2,614 18,041 1,228 25,933 1,112 2,614 1,112 2,706 15,335 Total Funds 5,097 13289 17741 Page 13
PEGSWOOD COMMUNITY HUB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 12. Fund balances Balance 1 April 2023 incl transfers Incoming Resources Transfer Balance Resources Expended 31 March 2024 Unrestricted Funds Total 24,964 59,911 Restricted funds New Boiler Grants Co-operative Catherine Cookson Trust Capital Total 4,050 2,614 3,735 1,112 250 7,785 2,614 1,112 250 16,379 19,269 25,933 2,890 13,289 TOTAL FUNDS 60,534 38,231 13. Analysis of net assets between funds Unrestricted Funds Restricted Funds Total Tangible Fixed Assets Current Assets Creditors 16,679 4,261 (450) 16,379 1,362 33,058 5,623 (450) Total 20,490 17,741 38,231 Page 14