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2021-04-30-accounts

REGISTERED COMPANY NUMBER: 05105604 REGISTERED CHARITY NUMBER: 1105259

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021

FOR

VOLUNTARY SECTOR CENTRES

Higson APS Limited 45 Queen Street Deal Kent CT14 6EY

VOLUNTARY SECTOR CENTRES

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021

Page
Report of the Trustees 1 to 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Cash Flow Statement 8
Notes to the Cash Flow Statement 9
Notes to the Financial Statements 10 to 17
Detailed Statement of Financial Activities 18 to 19

VOLUNTARY SECTOR CENTRES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 April 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Grantmaking

The Charity does not make any formal grants.

The company is registered as a charitable company, limited by guarantee and was set up by Memorandum of Association on 19 April 2004 and commenced activities on that day.

The principle object of the company is to :-

1) To improve the effectiveness, efficiency and economy of the administration of charities and in particular but without prejudicing the generality of the foregoing to provide office space with integrated services to such charities.

2) To support such charity or charities or such charitable purposes as the trustees in their absolute discretion think fit.

Page 1

VOLUNTARY SECTOR CENTRES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2021

STRATEGIC REPORT Achievement and performance Review of activities

VSC has been running Charity Centres since 2004 as their primary vehicle for delivering the principle objective of the Charity set out above. Readers of this report can do so in conjunction with the VSCUK web site at www.vscuk.org

On the company web site readers of this report will see VSC is operating two charity centres. A Media Charity Centre at 226 Church Road, Willesden, London NW10 9NR and a Social Enterprise Hub Charity Centre at Whitfield, Dover. ( There is also a Previous Properties section on the web site where VSC used to operate charity centres prior to the freehold owners redeveloping their buildings ).

The Media Charity Centre is leased and operated on behalf of the freehold owner, and not for profit corporation, known as Trinity Broadcasting Network based in the USA. The centre is a 32,000 sq ft programme production studios, broadcasting centre, and church complex incorporating sub leases to two charities, and also providing opportunity for a number of charities to hire the studios for days at a time to make programmes in the building. VSC works closely with each tenant and each short hire charity to improve their effectiveness, efficiency and economy, while providing them with the resources of the Media Charity Centre building.

The Social Enterprise Hub Charity Centre , known as Life Campus, is part leased from freehold owner, Dover Port Authority and part leased from freehold owner Mansion Garden Estates. The combined area extends to nearly six acres in total. In addition VSC owns 12.5% of the Mansion Garden Estates. Full planning permission has been granted by Dover District Council for the development of this Freehold Site. The VSC Trustees have a long term vision to acquire the freehold interests of Dover Port Authority and Mansion Garden Estates. Both Freeholders are open to that event happening.

The Trustees see Life Campus as an innovative and creative charity centre of the future and expect it to drive long term income streams and asset growth for VSC. The Life Campus Concept is replicable across the UK.

The Life Campus Project consists of Five Life Spheres that interconnect with and support each other, providing an integrated approach to both developing individuals and enhancing the communities in which they live.

Urban Develop - Creating jobs through Innovation . Urban Develop invents innovative environmentally friendly building products that dramatically reduce the cost of construction , so that individuals can afford their own homes and communities can afford buildings that meet their social needs.

An onsite factory will provide employment to the local community as well as apprenticeship opportunities for younger people. This factory building is expected to be built by March 2023.

Life Campus Academy - Delivering Life Changing Training . Life Campus Academy seeks to Envision, Empower and Equip people to have the maximum impact in the world around them. Closely integrated with the different spheres, the courses available will enable each of them to accomplish their mission, as well as providing opportunities to engage with and support the local community. This Academy building is expected to be built by the end of March 2025.

Enterprise Hub - Bringing Vision and Purpose to Life . The Enterprise Hub will provide an environment in which a new generation of entrepreneurs are empowered to design, develop and launch new ideas that impact the world around them. The Enterprise Hub building is expected to be completed by March 2026.

Kingdom Pre-School - Empowering Children to Flourish . An individual's journey of discovery starts at a very young age and in these precious and crucial years, they need nurturing and developing with love and understanding. Kingdom Pre-School provides a friendly, loving and safe environment in which children can learn, grow and develop.

Operating onsite since January 2016, Kingdom Pre-School delivers quality pre-school provision for the local community and those wanting to access work and training opportunities on the LIFE Campus.

Page 2

VOLUNTARY SECTOR CENTRES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2021

The Fire Church - Coming Into Fullness of Life . We want people to experience life in all its fullness, and spirituality is a key part of who we are. A Time Magazine report recently identified spirituality as a key factor in bringing a greater sense of happiness, purpose and meaning in life. The Fire Church is expected to operate within the Academy Building starting from the end of March 2025.

The Fire Church will provide a warm, encouraging community where people can discover more about who they are and their purpose in life, and come into fullness of who they were designed to be.

VSC UK are committed to support those who have viable business or social enterprise ideas to bring them to fruition - through integrated training, mentoring, networking, financing and the provision of low cost office space.

VSC UK are actively looking for new buildings and facilities to own, lease and manage in line with the current strategy of working in partnership with Long Term Landlords to house particular charities that provide opportunity to VSC working alongside them to improve effectiveness, efficiency and economy of the administration of those charities.

Financial review Reserves policy

Voluntary Sector Centres will use funds as they become available to further the charity's objectives. Balances of unrestricted funds held in reserve will not exceed the equivalent of one quarters income. This will allow the charity to continue to fund ongoing activities should there be a significant drop in rental income. This will be reviewed on an annual basis to ensure the level of reserves remains appropriate.

Trustee's liability

The Trustee's of the company guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up.

STRUCTURE, GOVERNANCE AND MANAGEMENT Method of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Risk Management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to the major risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

05105604 (Not specified/Other)

Registered Charity number

1105259

Registered office

226 Church Road Willesden London NW10 9NR

Page 3

VOLUNTARY SECTOR CENTRES

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2021

Trustees

N Marsh S D Mallison-Jones K Tripp

Company Secretary

N Marsh

Bankers

HSBC Medway Street Chatham Kent ME4 4DN

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 9 November 2021 and signed on the board's behalf by:

N Marsh - Trustee

Page 4

VOLUNTARY SECTOR CENTRES

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 APRIL 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Charity Centre - Life Campus
Charity Centre - Media
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Charity Centre - Life Campus
Charity Centre - Media
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2021
Unrestricted
fund
£
30,827
43,956
2,178,824
101
2,253,708
154,497
1,724,478
1,878,975
374,733
1,775,652
2,150,385		 2020
Total
funds
£
-
50,571
2,155,224
27
2,205,822
88,578
1,767,169
1,855,747
350,075
1,425,577
1,775,652

The notes form part of these financial statements

Page 5

VOLUNTARY SECTOR CENTRES

BALANCE SHEET 30 APRIL 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
17
Unrestricted funds
TOTAL FUNDS		 2021
Unrestricted
fund
£
113,482
172,600
286,082
846,876
1,845,717
2,692,593
(237,841)
2,454,752
2,740,834
(590,449)
2,150,385
2,150,385
2,150,385		 2020
Total
funds
£
116,691
172,500
289,191
834,899
878,108
1,713,007
(226,546)
1,486,461
1,775,652
-
1,775,652
1,775,652
1,775,652

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 6

VOLUNTARY SECTOR CENTRES

BALANCE SHEET - continued 30 APRIL 2021

The financial statements were approved by the Board of Trustees and authorised for issue on 9 November 2021 and were signed on its behalf by:

N Marsh - Trustee

K Tripp - Trustee

The notes form part of these financial statements

Page 7

VOLUNTARY SECTOR CENTRES

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2021

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
Purchase of fixed asset investments
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Net cash provided by 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		 2021
£
379,329
379,329
(11,721)
(100)
101
(11,720)
600,000
600,000
967,609
878,108
1,845,717		 2020
£
254,198
254,198
(20,000)
-
27
(19,973)
-
-
234,225
643,883
878,108

The notes form part of these financial statements

Page 8

VOLUNTARY SECTOR CENTRES

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Increase in debtors
Increase/(decrease) in creditors
Net cash provided by operations
2.
ANALYSIS OF CHANGES IN NET FUNDS		 2021
£
374,733
14,931
(101)
(11,978)
1,744
379,329		 2020
£
350,075
16,021
(27)
(66,445)
(45,426)
254,198
Net cash
Cash at bank
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1.5.20
£
878,108
878,108
-
-
-
878,108		 Cash flow
£
967,609
967,609
(9,551)
(590,449)
(600,000)
367,609		 At 30.4.21
£
1,845,717
1,845,717
(9,551)
(590,449)
(600,000)
1,245,717

The notes form part of these financial statements

Page 9

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

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.

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.

Allocation and apportionment of costs

Costs have been allocated as deemed appropriate by the Trustee's.

Tangible fixed assets

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

Improvements to property - Over the duration of the lease Plant and machinery - 25% on reducing balance Computer equipment - 33% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 10

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

2.
DONATIONS AND LEGACIES
Grants
Grants received, included in the above, are as follows:
Job Retention Scheme
3.
INVESTMENT INCOME
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Income as landlord
Charity Centre - Life Campus
Recharges
Charity Centre - Life Campus
Income as landlord
Charity Centre - Media
Managed services income
Charity Centre - Media
Programme income
Charity Centre - Media
Commission
Charity Centre - Media
Recharges
Charity Centre - Media
5.
CHARITABLE ACTIVITIES COSTS
Charity Centre - Life Campus
Charity Centre - Media		 Direct
Costs
£
138,031
1,693,424
1,831,455		 2021
£
30,827
2021
£
30,827
2021
£
101
2021
£
14,583
29,373
120,500
294,915
1,544,058
1
219,350
2,222,780
Support
costs (see
note 6)
£
16,466
31,054
47,520		 2020
£
-
2020
£
-
2020
£
27
2020
£
20,833
29,738
159,373
198,634
1,480,452
36
316,729
2,205,795
Totals
£
154,497
1,724,478
1,878,975

continued...

Page 11

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

6. SUPPORT COSTS

Governance
Management
costs
£
£
Charity Centre - Life Campus
16,466
-
Charity Centre - Media
5,317
25,737
21,783
25,737
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2021
£
Auditors remuneration
8,990
Depreciation - owned assets
14,930		 Totals
£
16,466
31,054
47,520
2020
£
5,540
16,021

7. NET INCOME/(EXPENDITURE)

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 April 2021 nor for the year ended 30 April 2020.

Trustees' expenses

There were trustee's travel expenses of £nil (2020 - £nil) reimbursed during the year ended 30 April 2021.

9. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Administration
Charity Centre Operation
Studio		 2021
£
967,007
967,007
2021
4
7
19
30		 2020
£
1,001,515
1,001,515
2020
6
7
19
32

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

continued...

Page 12

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Charitable activities
Charity Centre - Life Campus
Charity Centre - Media
Investment income
Total
EXPENDITURE ON
Charitable activities
Charity Centre - Life Campus
Charity Centre - Media
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
50,571
2,155,224
27
2,205,822
88,578
1,767,169
1,855,747
350,075
1,425,577
1,775,652

continued...

Page 13

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

11. TANGIBLE FIXED ASSETS

Improvements
to
property
£
COST
At 1 May 2020
96,440
Additions
-
At 30 April 2021
96,440
DEPRECIATION
At 1 May 2020
21,944
Charge for year
5,675
At 30 April 2021
27,619
NET BOOK VALUE
At 30 April 2021
68,821
At 30 April 2020
74,496		 Plant and
machinery
£
-
2,140
2,140
-
42
42
2,098
-		 Fixtures
and
fittings
£
64,737
9,581
74,318
33,985
5,436
39,421
34,897
30,752		 Computer
equipment
£
19,782
-
19,782
8,339
3,777
12,116
7,666
11,443		 Totals
£
180,959
11,721
192,680
64,268
14,930
79,198
113,482
116,691

12. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 May 2020
Additions		 Unlisted
investments
£
172,500
100
At 30 April 2021 172,600
NET BOOK VALUE
At 30 April 2021		 172,600
At 30 April 2020 172,500

There were no investment assets outside the UK.

continued...

Page 14

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Tenant & trade debtors
Other debtors
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 16)
Trade creditors
Social security and other taxes
VAT
Other creditors
Deferred income
Accrued expenses
15.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 16)
16.
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		 2021
£
302,047
17,037
527,792
846,876
2021
£
9,551
63,420
14,543
67,678
505
51,600
30,544
237,841
2021
£
590,449
2021
£
9,551
113,401
477,048		 2020
£
287,475
23,432
523,992
834,899
2020
£
-
77,929
13,100
67,927
-
48,930
18,660
226,546
2020
£
-
2020
£
-
-
-

continued...

Page 15

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

17. MOVEMENT IN FUNDS

At 1.5.20
£
Unrestricted funds
General fund
1,775,652
TOTAL FUNDS
1,775,652
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
2,253,708
TOTAL FUNDS
2,253,708
Comparatives for movement in funds
At 1.5.19
£
Unrestricted funds
General fund
1,425,577
TOTAL FUNDS
1,425,577
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
2,205,822
TOTAL FUNDS
2,205,822		 Net
movement
in funds
£
374,733
374,733
Resources
expended
£
(1,878,975)
(1,878,975)
Net
movement
in funds
£
350,075
350,075
Resources
expended
£
(1,855,747)
(1,855,747)		 At
30.4.21
£
2,150,385
2,150,385
Movement
in funds
£
374,733
374,733
At
30.4.20
£
1,775,652
1,775,652
Movement
in funds
£
350,075
350,075

continued...

Page 16

VOLUNTARY SECTOR CENTRES

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2021

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.5.19
£
1,425,577
1,425,577		 Net
movement
in funds
£
724,808
724,808		 At
30.4.21
£
2,150,385
2,150,385

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 fund
TOTAL FUNDS		 Incoming
resources
£
4,459,530
4,459,530		 Resources
expended
£
(3,734,722)
(3,734,722)		 Movement
in funds
£
724,808
724,808

18. RELATED PARTY DISCLOSURES

The Charity is landlord to Governance Ministries Charity (1051780) - a Charity that has Trustees in common - at the London Studios. Transactions are conducted at market value.

Page 17

VOLUNTARY SECTOR CENTRES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 APRIL 2021

INCOME AND ENDOWMENTS
Donations and legacies
Grants
Investment income
Deposit account interest
Charitable activities
Income as landlord
Managed services income
Programme income
Commission
Recharges
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Rates
Rent & service charge -
Donations
Advertising
Repairs & renewals
IT & telephone costs
Light and heat
Production costs
Consultancy
Life Campus project costs
Support costs
Management
Administration
Legal fees
Improvements to property
Plant and machinery
Fixtures and fittings
Computer equipment		 2021
£
30,827
101
135,083
294,915
1,544,058
1
248,723
2,222,780
2,253,708
967,007
40,294
94,036
-
4,116
55,077
26,914
80,627
442,666
60,000
60,718
1,831,455
3,165
3,687
5,675
42
5,437
3,777
21,783		 2020
£
-
27
180,206
198,634
1,480,452
36
346,467
2,205,795
2,205,822
1,001,515
40,994
79,796
142,714
10,929
69,945
18,528
77,458
296,737
59,000
4,167
1,801,783
4,226
18,835
4,957
-
5,427
5,637
39,082

This page does not form part of the statutory financial statements

Page 18

VOLUNTARY SECTOR CENTRES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 APRIL 2021

Management
Governance costs
Accountants remuneration
Administration
Bank charges
Total resources expended
Net income		 2021
£
8,990
16,554
193
25,737
1,878,975
374,733		 2020
£
5,540
9,126
216
14,882
1,855,747
350,075

This page does not form part of the statutory financial statements

Page 19