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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 1102820 REGISTERED COMPANY NUMBER: 05046531

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

SOUTH HILL CENTRE

Acuity Professional Ltd Business Advisers and Accountants Fifth Floor 11 Leadenhall Street London EC3V 1LP

SOUTH HILL CENTRE CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Legal & Administrative Information 1
Report of the Directors 2 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 21
Detailed Statement of Financial Activities 22 to 23

Legal & Administrative Information 1

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 05046531 Registered Charity number 1102820

Principal address Cemetery Hill Hemel Hempstead Hertfordshire HP1 1JF

Directors

Mr R G Oakes (Chairman) Mr B L Boggis Mr A M Boswell (Secretary) Mrs T M Harding (Resigned on 27 July 2020 ) Mr M J Masters (Resigned on 23 July 2021) Mr P J Mann (appointed 9 June 2021) Mr G D Wright Mrs E Dunscombe

Independent examiner

J Irvinesmith FCIE Independent Examiners Limited Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

Solicitors

Pothecary Witham Weld 70 St George's Square London SW1V 3RD

Bankers Santander UK PLC PO Box 1125 Bradford BD1 9PG

Accountants

Acuity Professional Ltd Fifth Floor 11 Leadenhall Street London EC3V 1LP

Page 1

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors present their report and the financial statements of the Company for the year ended 31st December 2020.

Constitution and Governance

South Hill Centre is a charitable company limited by guarantee, incorporated on 17[th] February 2004 and registered as a Charity on 24[th] March 2004.

The Company is established under a Memorandum of Association which sets out its objects and powers. It is governed under its Articles of Association which were amended on 18 November 2012. It was born out of South Hill Church (Hemel Hempstead), which is also a charitable company limited by guarantee.

The Directors have dual roles, the other being as Trustees of the Charity for the purpose of charity law. The Directors who have served during the period and up to the date of this report are:

Brian Boggis

Alexander Boswell (Company Secretary) Elizabeth Dunscombe

Theresa Harding (to 27 July 2020 – reported in 2019 Accounts ) ) Peter Mann (from 9 June 2021) Matthew Masters (to 23 July 2021) Robin Oakes (Chair)

Gavin Wright

Matthew Masters resigned as a Trustee with effect from 23 July 2021. Matthew served as Trustee for 14 years and we have valued his whole-hearted support over that period and particularly his help with staff matters and Risk assessment. We will miss his input in the future. We would like to take the opportunity to thank Matthew for his commitment, hard work and dedication over the period. We wish him all the best with his future endeavours.

The remaining Directors bring a unique set of skills to the company’s business. They include the pastor of South Hill Church (Hemel Hempstead), two accountants, a current and a former charity worker and a head of quality, safety and environment. Each has significant professional skills and recognises the importance of personal training. They have all attended appropriate training courses in the past and they are all expected to keep up to date with developments in Trustee and Director responsibilities. Training may be specialist in nature depending on the responsibilities the Director has. They are all committed to the aims and objectives of the charity. The Directors have purchased Trustee indemnity insurance.

Jeremy Keeley remains our full time Development and Operations manager and manages the Company very effectively under the guidance and direction of the Directors, who carry out some of the executive functions on a voluntary basis.

The Centre employs staff in Young Discoverers (YD), the pre-school run by the Company, other activities and to provide reception, housekeeping and administrative support to the Company.

Aims and Objectives for the Public Benefit

The Directors are aware of their responsibilities to promote activities for the public benefit. South Hill Centre exists to improve the conditions of life for those in the local community of Hemel Hempstead and the surrounding area. This is achieved by the provision of high quality childcare services alongside activities and services to the benefit of other members of the community from toddlers to senior citizens, as described below.

Our vision is 'To be all that God is calling us to be. To demonstrate His love through improving the quality of life for those in our community, building life-long relationships and demonstrating excellence in all we do.’

As a Christian based charity, the Centre's aims are to:

Page 2

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES Main Objectives for 2020

The main objectives for 2020 and their achievement have been significantly affected by the Covid-19 Pandemic. We set out in the table below some of the effects:

OBJECTIVES

• Develop our relationship with South Hill Church which is important to us and provides the motivation for many of the community activities which we organise through the Centre. In particular, to strengthen the relationship between YD and South Hill Church and other Centre activities, for both employees and users of the service. We shall continue to develop this “hand in glove” relationship.

ACHIEVEMENTS

• This objective is one which we retain from year to year. It has been at the forefront of our minds throughout the Pandemic.

• Explore with some of our partners further services we can offer to some of the most vulnerable in the community.

• This has not been practical during the Pandemic but we have worked with DENS, Sunnyside Rural Trust and the Foodbank to deliver food to those in need. We have also sought to help our many disadvantaged clients with whom we have had contact through this difficult time.

• In the light of our significantly reduced income as a result of the effect of the COVID-19 pandemic, to ensure the financial viability of the Centre for the foreseeable future, including developing plans for those activities which are currently operating at a deficit and for employment support in the light of funding ceasing in June 2021.

• Although we have lost significant hire income, many of our activities have continued to be supported by funding from Government and generous grants from grant giving organisations. It has also been confirmed that Employment Support funding will continue until December 2022.

• Consider the use of the Nursery Room in the Early Years Centre which has now been released by Herts County Council.

• Young Discoverers now occupies the whole Early Years Centre and uses all the facilities for the Nursery and Preschool classes. The setting has stayed open throughout the Pandemic providing care for key workers children.

• Continue the development of our digital media related activity to increase our use of multi-media in the building.

• Review the responsibilities of some of our senior staff with a view to possible further appointments to strengthen our administration.

• Our digital media has been essential to providing remote support to our clients and live streaming of Sunday church services throughout the Pandemic. We are grateful to our staff and volunteers for their willingness to make use of these resources and adapt to the unusual circumstances.

•This objective has been less important during the Pandemic but will be reconsidered during 2021

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES

Activities

Young Discoverers (YD), which operates in the Early Years Centre (EYC) building, has remained open throughout the pandemic, initially providing care for children of key workers. Other children were invited back as soon as restrictions were lifted. The staff and management have therefore been able to provide excellent service to both nursery and preschool children during the year making use of the whole EYC building. Its capacity of 350 pre-school sessions and nursery class is spread over 5 days each week and take up continues to be high. The Pre-school has also provided extended care facilities for those children who attend YD and will continue to do so in 2021. YD has an Ofsted rating of “good”. Karen Keene is responsible to the Directors for the effective running of the pre-school and has a direct reporting responsibility to Brian Boggis.

Prior to the global COVID-19 pandemic in late March 2020 the Centre continued to provide on-going services to the local community including Squealers, a carers and toddlers group, which provided 2 sessions per week to some 10-20 toddlers; Table Talk Plus, a luncheon club, which met fortnightly with over 40 clients at each session and ‘SHC Gets Active’, in connection with Everyone Active, which involved a regular afternoon session at the local sports centre to encourage those in the community with whom the Centre engaged, to take part in basic physical activity. Between 10-20 individuals regularly attended these weekly sessions. From April 2020 contact was kept with individuals from these activities despite it not being possible for them to continue to meet physically.

Throughout the year the Centre continued to deliver services to support the most vulnerable in the community. This included employment support through the STRIVE project, in partnership with Herts County Council and other County based providers. The project is part of the Building Better Opportunities Initiative funded by The Big Lottery with match funding from the European Social Fund and aims to engage with those furthest away from the job market to encourage and support them towards employability addressing barriers they may face to getting there. The Centre continued to build on its excellent relationships with Job Centre Plus and many other private and charitable organisations who work locally to support the unemployed. During the pandemic a number of the services were able to continue remotely with a regular twice weekly drop-in through Zoom. Support was offered in CV writing, housing support; business awareness, confidence building, wellbeing support and a number of basic and more advanced IT courses. The Centre also gave physical access to PCs (in a socially distanced, COVID secure way) for those who were digitally excluded over this period. It also provided support for those with physical disabilities and those with other significant barriers to employment (drug/alcohol abuse; mental health; homelessness etc.).

During this period the Centre extended its work providing support for some of the most vulnerable women in the local area – particularly those impacted by the significant increase seen in Domestic Violence. Several virtual support sessions and targeted online courses were held to support the ladies and help them move on in a positive direction with their lives. This work was supported in 2020 by funds from the Hertfordshire Community Foundation; Hertfordshire Police and Crime Commissioner (MOJ funding), local County Councillors, the Batchworth Trust and several other local grant makers and donors.

In order to connect with some of the neediest people in the area, the Centre has continued as a distribution centre and voucher issuer for the DENS Dacorum Foodbank. This service offers parcels 5 days a week and saw a significant increase in demand in this financial year. It was also possible to offer a ‘home delivery’ service in addition to the usual ‘collection only’ service provided. This delivery service was given in conjunction with Sunnyside Rural Trust who provided the vans and drivers.

Page 4 Page 7

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES Aims and Objectives for the Public Benefit

During the period January to March 2020 the Centre saw a growth in the demand from other charitable and socially focussed organisations to let Centre facilities. Hirers included: Diabetes Prevention Services; Whizz-Kidz; Carers in Herts, NHS Wellbeing Team, Dacorum Borough Council, Hertfordshire County Council, Playfeet Theatre Company, BENCH CRC probation teams; Rock Choir, London Show Choir, Community Action Dacorum, Families in Focus, NHS / HVCCG, and Herts for Learning amongst many others. Collectively they provided training, advice, activities and support to the local community and hosted many community wide events. All of these organisations, many of which operate in the third sector, were involved in running activities which meet some of the aims and charitable objectives of the Centre as outlined above.

Prior to the Pandemic the Centre continued to host the Hemel Morning Deaf Group and provided links with Hertfordshire Society for the Blind to support individuals impacted by these disabilities in the local area. These did not operate from the Centre during the Pandemic but plans are in place to restart them once Government restrictions allow.

Letting of facilities to other organisations dramatically reduced from March 2020 as restrictions brought in to support management of the pandemic restricted the ability for people to meet physically together. The Centre facilities were ‘moth-balled’ to reduce on-going operational costs for the remainder of the year.

The charity’s facilities continued to be used by South Hill Church for weddings, funerals, Sunday services and other Christian activities when permitted by the pandemic legislation.

The Directors are very grateful to the staff and volunteers who helped with all the activities which we have been able to provide during the year. Their ability to adapt to the unusual circumstances has been amazing. Many of those who have served are members of South Hill Church who give freely of their time. We are pleased that volunteers from the local community also work with us. The Directors provide their time voluntarily.

Main Objectives for 2021

The main objectives for 2021 are to:

Page 5 Page 7

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

Financial Review

The Centre has a brought forward surplus of £1,384,400 and deficit of incoming resources for the year was £40,709. The remaining surplus balance of £1,343,691 will be carried forward to the next year. The total income for the year was £450,263 (2019: £461,544). The deficit is primarily driven by the impact of Covid 19 where there were less rentals and hires in the period.

Young Discovers is self-funding by way of local authority grants, fees received and fundraising activities. Grants of £132,252 (2019: £122,572) were received and student fees of £36,843 (2019: £38,191) received in the year. Heath Lane Children's Club contributed to its share of the costs incurred by South Hill Centre in connection with running the EYC building until it vacated it in April.

The Directors acknowledge the generous giving by the Charity's supporters. Many of these are members of South Hill Church and during the year these supporters gave either directly (including Gift Aid where appropriate) or indirectly some £12,478 (2019: £31,733).

The total expenditure for the year was £490,972 (2019: £457,897) all of which was spent on charitable activities and governance costs.

At the year end the Company had net assets of £1,343,691 (2019: £1,384,400) represented by £283,776 (2019: £312,300) unrestricted funds, £91(2019 £18,360) as a restricted fund to be spent providing pre-school services and £1,059,824 (2019: £1,053,740) as a restricted building fund relating to the construction of the EYC and the main building. All grants received from the local authority to the pre-school are treated as restricted, but other income, mainly comprising fees paid by parents where grant is not receivable in respect of particular children, is unrestricted. The remainder of the unrestricted fund includes designated gifts and grants which the Centre has obtained.

The Centre has continued to pay off the mortgage from Kingdom Bank and it is encouraging to see a total repayment of £33,671 (Capital repayment of £18,248 and interest £15,423) during the period through the Centre's normal monthly payments.

The Directors would like to thank Jason Mathew-Mammen and his staff at Acuity Professional for their assistance in maintaining the accounting records during the year and the preparation of these financial statements. A number of other volunteers provide financial information for the activities with which they are involved, and our thanks are extended to these, and also Naomi Keeley our financial administrator.

Reserves policy and going concern

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The Directors recognise that it is best practice for charity operations to retain funds representing at least 3 months expenditure in the Company's bank accounts for contingency purposes. This is based on the charity's size and the level of its financial commitment. The Directors seek to manage this for both Young Discoverers and the charity's other activities and this has been achieved in the year. The Directors will ensure the charity is able to continue to fulfil its charitable obligations and will seek to maintain this level of reserves in 2021.

The Directors believe their future plans provide for a flow of funds which will maintain the financial viability of the Company. Monthly management accounts and cash flow projections are prepared and compared with the annual budget, which is regularly reviewed against actual figures. We are also seeking new sources of finance and new projects are not initiated until their financial requirements are forecast and assessed within the overall financial position of the Company.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, thus we continue to adopt the going concern basis in preparing the financial statements.

Page 6 Page 7

SOUTH HILL CENTRE

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2020

Risk management

The Directors are aware of their responsibility to properly manage and mitigate the risks faced by the Company. As such, Board representatives, the Operations Manager and the Young Discoverer’s Manager review and update a schedule of the major governance, operational, financial, and external risks facing the Company at least annually. They identify the likelihood and potential impact of each risk along with preventative measures, adopted or planned, to mitigate these. The Board then considers the resultant schedule and its conclusions, endorsing a final register of risks which are reviewed throughout the year, along with emerging risks which might affect the Company; any financial implications are incorporated into the annual budget process.

The Board is satisfied that the major risks facing the Company have been identified and are being appropriately addressed. In particular, the Board considers that the key risks currently facing the Company are as follows.

The Board can confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to manage these risks.

Page 7 Page 7

REPORT OF THE DIREcfoRS ATEMENT OF DIRECTORS RLSPONSIBILrnLs with applicable law Ind re8Ulat￿ The ac¢ouDts for oach yev •ff rw11￿1 ty SI￿ 4 tru¢ and fair view of the of aff4Trn of the COmp￿Y ofthe wrplw or4kficit of the Compgny for that puio • ￿lect suitsble aceouotitig pli¢i# th¢D apply them CVD8is￿I)y. ' apply the methods and prineipl¢8 s¢t out in the Clwitiu SORP ' mBk¢ JUd￿ments Ind ey¢irn8tey thot 8Te re89)nable And and The Directorn ue resPo￿￿le for kttpi08 proper •¢e4)unw re¢oth whith di8¢1cx with reasonable A¢¢ur#¢y a¢ any time. the fuwicit] ￿SitiOn of the company aThJ to enthle them to enwTt that th¢ actounts eornply with th¢ CompAni¢8 Act 2006. They are g]90 r¢wMibk forMfr8uJrdiDg the aua¥ofthc ConynDy4NI IKnce taking r¢uonable •8 for the prtvention ￿td detection of frwml and other irtegularitie& th¢ ¢niire ¢)Tg4nis•¢ioTh The systeTDS of tnrnol control are deS1￿¢d to provide re88oDAble but not ab8oluts ossuran Sl•t•i¢Dt u to Dl•elomr• of ltsforMlbJm t• the ImdymdeDt ExArnlD 4ww¢. the￿ 18 no r¢l¢von¢ informHtion of vthicb th¢ IrdeF&¢oi Examine¥ i• unawatt aTrJ e•ch Direplicable to the comp8ny. Related partl The Compaoylw ttore1#41 parti• other than asd]￿k￿l inNo* 7 to the Accc• i￿¢bIgWOrked Clo￿ with ttwiy Council end South Hill thurch. 8i8wlon ity l)eb&lf by: Mr A M B08well

INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF SOUTH HILL CENTRE

I report to the trustees on my examination of the accounts of the South Hill Centre for the year ended 31st December 2020.

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

Responsibilities and basis of report

I report in respect of my examination of the charitable company's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a Fellow Member of the Association of Charity Independent Examiners.

I have completed my examination. No material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

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.

Signed:

Date: ............................................. 20th September 2021

J Irvinesmith Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

The notes form part of these financial statements

Page 10 Page 9

SOUTH HILL CENTRE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Rental Income
Activity fees
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
6
Charitable Activities
NET INCOME/(EXPENDITURE)
Transfers between funds
17
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
57,870
69,030
36,843
5,251
787
169,781
196,704
(26,923)
(1,601)
(28,524)
312,300
283,776		 Restricted
fund
£
278,371
2,100
-
11
-
280,482
294,268
(13,786)
1,601
(12,185)
1,072,100
1,059,915		 2020
Total
funds
£
336,241
71,130
36,843
5,262
787
450,263
490,972
(40,709)
-
(40,709)
1,384,400
**1,343,691 **		 2019
Total
funds
£
252,506
142,894
38,191
27,047
906
461,544
457,897
3,647
-
3,647
1,380,753
1,384,400

The notes form part of these financial statements

Page 10

ATEmE1￿ OF Fll¥ANCIAL posrrioN 31 DECEMBER 2020 2019 fu#d Not TAn8ibl¢ 088ets io 31J91 IM731 1O92J22 1.725.703 CURRENT ASSETS D¢btoYs 1471 40.750 236 24OS3 277.022 13 (&oJ8) (09,101) (11139) (78,107) NET cl1RRE￿ Assrrs 2S 1.924.618 14 ($2¥W (52U45) (540218) 16 (IYJN) (iuoo) Nrf ASSZTS 17 283.770 312,300 LIS 1072 100 TOTAL FUNDS 31 De¢cmb¢r2021. 2006. Th¢ dtrectory a¢k￿)wIt0$¢ their responsI￿111ticS for conwlylng with the of the Companies Act with respect and were sign￿1 on its b¢half by. MrGDWri P•8eii

SOUTH HILL CENTRE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2020
£
58,226
58,226
(4,646)
(4,646)
(33,670)
(33,670)
19,910
236,272
**256,182 **		 2019
£
34,510
34,510
(23,671)
(23,671)
(53,200)
(53,200)
(42,361)
278,633
236,272

Page 13 Page 12

continued...

SOUTH HILL CENTRE

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Interest on loan
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operations		 2020
£
(40,709)
38,027
15,422
38,879
6,607
58,226		 2019
£
3,647
35,873
19,387
(11,187)
(13,210)
34,510

2. ANALYSIS OF CHANGES IN NET DEBT

ANALYSIS OF CHANGES IN NET DEBT
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank 236,272 19,910 **256,182 **
236,272 19,910 **256,182 **
Debt
Debts falling due within 1 year (24,836) 575 (24,261)
Debts falling due after 1 year (540,218) 17,673 (522,545)
(565,054) 18,248 (546,806)
Total (328,782) 38,158 (290,624)

continued...

Page 13

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Building Fund income received in 2006 from Hertfordshire County Council is treated as a grant in the charity's books, although in form it is prepaid rental for the use of part of the Early Years Centre by the Heath Lane Nursery. In the directors' opinion the substance of the receipt is that it is a grant which is not repayable in the foreseeable future.

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Other rechargeable expenses represent the share of operating costs recovered from Heath Lane Nursery and other users of the charity's facilities.

Donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure.

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor of the terms of the appeal have specified otherwise.

The charity has received no donations in kind during the period.

Interest received is accounted for when received. Any tax recoverable relating to interest income is accounted for in the same period as the related income.

VOLUNTEERS

The value of volunteers' time is not included in the accounts but is described in the Directors' Report.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

The charity made no redundancy payments during the reporting period.

The charity has creditors which are measured at settlement amounts less any trade discounts.

continued...

Page 13 Page 14

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold property - in accordance with estimated useful life of the property Fixtures and fittings - 20% on cost Office equipment - 20% on cost

CHANGE IN ACCOUNTING POLICY

We have changed the property type from Freehold to Leasehold. as we have wrongly shown as Freehold property in the previous year. There is no change in the accounting treatment of property as it’s the error in the description of property.

TAXATION

The Company has been granted charitable status and is therefore not liable to corporation tax on income insofar as income is either not taxable under general principles or is specifically exempted by statute.

FUND ACCOUNTING

The Unrestricted Funds represent the unrestricted income which is expendable at the discretion of the directors in the furtherance of the objects of the charity. Such funds can be held in order to finance both working capital and capital resources. Designated Funds are set up where the directors consider it prudent to provide reserves for special purposes.

Restricted Funds are set up where donors specify the purposes for which their donations can be used and expenditure in respect of these purposes is specifically allocated to these funds.

RESERVES

The directors have considered the level of reserves they wish to retain, appropriate to the charity's needs and described this in the Directors' Report. This is based on the charity's size and the level of its financial commitments. The directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily.

2. DONATIONS AND LEGACIES

3.

Gifts
Donations
Other grants and income
Fundraising activities
OTHER TRADING ACTIVITIES		 2020
£
2,500
12,478
315,757
5,506
336,241		 2019
£
6,000
31,733
213,014
1,759
252,506
Facility hire and rental income
Other rechargeable income
Fundraising activities		 2020
2019
£
£
202
15,928
5,013
11,042
47
77
5,262
27,047		 2020
2019
£
£
202
15,928
5,013
11,042
47
77
5,262
27,047
27,047

Page 14 Page 15

continued...

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

4. INVESTMENT INCOME

Interest received
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Facility hire and rental income Rental Income
Service charge
Rental Income
Fees paid
Activity fees		 2020
£
787
2020
£
59,130
12,000
36,843
107,973		 2019
£
906
2019
£
130,894
12,000
38,191
181,085

6. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Charitable Activities 490,972

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no Directors' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

The aggregate value of donations received from Directors or parties related to the Director's during the year was £4,390 (2019 - £15,550)

Parties connected to various Directors are employed by the company and received remuneration for services rendered to the company, as authorised by Clause 5 (b) of the Memorandum of Association.

Brian Boggis's wife, Dolly Boggis (staff member of South Hill Centre); his son-in-law, Jeremy Keeley (Centre Development and Operations Manager); his daughter, Naomi Keeley (Finance Assistant of South Hill Centre), his granddaughter Brodie Keeley (Caretaking Assistant); his son-in-law Neil Harden (BBO Lite Learning Mentor) and Sandy Boswell's wife, Mary Boswell (staff member of Young Discoverers) and Matthew Masters nephew, Samuel Hancock (Caretaking Assistant).

They received the following emoluments and employers NI contributions:

Wages and salaries
Employers NI contributions		 2020
£
76,058
5,481
81,539		 2019
£
64,500
4,967
69,467

Directors were reimbursed for out of pocket expenses incurred in connection with the running of the company. All such expenses are subject to the same internal controls as any other expenditure.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

continued...

Page 16 Page 17

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

8. STAFF COSTS

Wages and salaries
Employers NI contributions		 2020
£
274,635
10,843
285,478		 2019
£
257,079
10,340
267,419

No employees received emoluments in excess of £60,000.

The average monthly number of employees during the year was as follows:

2020 2019
**28 ** 26

The total amount paid to key management personnel (including trustees and senior management) for their services to the charity totalled £63,968 (2019 - £61,560).

9. NET INCOMING RESOURCES FOR THE YEAR

This is stated after charging
Depreciation
Independent Examiner's remuneration		 2020
£
38,027
**1,200 **		 2019
£
35,873
1,200

10. TANGIBLE FIXED ASSETS

Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Leasehold
property
£
1,995,586
-
1,995,586
308,677
26,178
334,855
1,660,731
1,686,909		 Fixtures
and
fittings
£
98,353
3,416
101,769
66,770
9,712
76,482
25,287
31,583		 Office
equipment
£
17,642
1,230
18,872
10,431
2,137
12,568
6,304
7,211		 Totals
£
2,111,581
4,646
2,116,227
385,878
38,027
423,905
1,692,322
1,725,703

continued...

Page 18 Page 17

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
VAT
Prepayments and accrued income		 2020
£
119
1,071
357
324
1,871		 2019
£
38,985
737
704
324
40,750

12. CASH AT BANK

Santander Current Account
Deposit Accounts
Santander Instant reserve
YD petty cash
Total		 General
funds
£
124,511
76,913
51,925
3
253,352		 Restricted
funds
£
2,830
-
-
-
2,830		 2020
Total
funds
£
127,341
76,913
51,925
3
**256,182 **		 2019
Total
funds
£
108,145
76,388
51,736
3
236,272

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020
£
Bank loans and overdrafts (see note 15)
24,261
Trade creditors
166
Other creditors
1,359
Accruals and deferred income
44,840
Accrued expenses
1,513
72,139
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2020
£
Bank loans (see note 15)
522,545		 2019
£
24,836
803
1,001
49,954
1,513
78,107
2019
£
540,218

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Page 18 Page 18

continued...

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

15. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 years by instalments
16. PROVISIONS FOR LIABILITIES
Redundancy pay provision
17.
MOVEMENT IN FUNDS
At 1.1.20
£
Unrestricted funds
General funds
312,300
Restricted funds
Restricted funds
1,072,100
TOTAL FUNDS
1,384,400
Net movement in funds, included in the above are as follows:
Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 Net
movement
in funds
£
(26,923)
(13,786)
(40,709)
Incoming
resources
£
169,781
280,482
450,263		 2020
£
24,261
24,891
78,623
419,031
2020
£
12,000
Transfers
between
funds
£
(1,601)
1,601
-
Resources
expended
£
(196,704)
(294,268)
(490,972)

Page 19 Page 21

continued…

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

17. MOVEMENT IN FUNDS - continued

Net
movement
At 1.1.19
in funds
£
£
Unrestricted funds
General funds
284,371
31,715
Restricted funds
Restricted funds
1,096,382
(28,068)
TOTAL FUNDS
1,380,753
3,647
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General funds
231,184
Restricted funds
Restricted funds
230,360
TOTAL FUNDS
461,544
A current year 12 months and prior year 12 months combined position is as follows:		 Transfers
between
funds
£
(3,786)
3,786
-
Resources
expended
£
(199,469)
(258,428)
(457,897)
 At
31.12.19
£
312,300
1,072,100
1,384,400
Movement
in funds
£
31,715
(28,068)
3,647
Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 At 1.1.19
£
284,371
1,096,382
1,380,753		 Net
movement
in funds
£
4,792
(41,854)
(37,062)		 Transfers
between
funds
£
(5,387)
5,387
-		 At
31.12.20
£
283,776
1,059,915
1,343,691

Page 20 Page 21

continued…

SOUTH HILL CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General funds
Restricted funds
Restricted funds
TOTAL FUNDS		 Incoming
Resources
Movement
resources
expended
in funds
£
£
£
400,965
(396,173)
4,792
510,842
(522,696)
(41,854)
911,807
(948,869)
(37,062)

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2020.

19. OTHER DISCLOSURE ISSUES

The charity does not have any commitments not provided for in the accounts. The charity has not given any guarantees.

The charity has not received any loans secured on any of its assets other than disclosed in Note 14 & 15 above. At the year end the charity did not have any contingent liabilities.

20. RISK ASSESSMENT

The Directors are aware of the need to properly manage and mitigate the risks faced by the company. Details of how the charity has achieved this are provided in the Directors' Report. The directors confirm that they have paid due regard to the Charity Commission guidance on risk assessment when adopting and implementing policies for the charity

21. PUBLIC BENEFIT

The charity acknowledges its requirements to demonstrate clearly that it must have charitable purposes or "aims" that are for the public benefit. Details of how the charity has achieved this are provided in the Directors' Report. The directors confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

22. DECLARATIONS

Sufficient resources are held in appropriate form to enable each fund to be applied in accordance with any restrictions imposed.

The trustees have not changed the year end date nor length of the charity's financial year. The charity did not make any material ex-gratia payments during the year. None of the charity's fixed assets have been revalued during the year.

Page 21 Page 21

SOUTH HILL CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME AND ENDOWMENTS
Donations and legacies
Gifts
Donations
Other grants and income
Fundraising activities
Other trading activities
Facility hire and rental income
Other rechargeable income
Fundraising activities
Investment income
Interest received
Charitable activities
Fees paid
Facility hire and rental income
Service charge
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Rent and rates
Insurance
Photocopier
Accountancy fees
Cleaning and maintenance
Staff costs and training
Operating costs
Utilities
Travelling
Computer expenses
Carried forward		 2020
£
2,500
12,478
315,757
5,506
336,241
202
5,013
47
5,262
787
36,843
59,130
12,000
107,973
450,263
285,478
1,462
6,253
1,024
9,164
8,852
1,332
96,273
7,360
28
1,402
418,628		 2019
£
6,000
31,733
213,014
1,759
252,506
15,928
11,042
77
27,047
906
38,191
130,894
12,000
181,085
461,544
267,419
4,347
6,276
1,330
12,099
9,095
2,284
92,926
6,375
255
734
403,140

This page does not form part of the statutory financial statements

Page 23 Page 22

SOUTH HILL CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Charitable activities
Brought forward
YD- Service charge
Redundancy pay
Pension
Freehold property
Fixtures and fittings
Office equipment
Total resources expended
Net (expenditure)/income		 2020
£
418,628
12,000
12,000
10,317
26,178
9,712
2,137
490,972
490,972
**(40,709) **		 2019
£
403,140
12,000
-
6,884
26,170
8,030
1,673
457,897
457,897
3,647

This page does not form part of the statutory financial statements

Page 23