Company Registration Number - 04929060
Charity Registration Number - 1106143
The Hearth Centre (Horsley) Ltd
Report and Accounts
31 December 2020
The Hearth Centre (Horsley) Ltd
Report and Accounts for the year ended 31 December 2020
Contents
| Page | |
|---|---|
| Trustees' Annual Report | 1 - 10 |
| Statement of Directors' and Trustees' Responsibilities | 11 |
| Independent Examiner's Report | 12 - 13 |
| Funds Statements:- | |
| Statement of Financial Activities | 14 |
| Statement of Financial Activities - Prior Year statement | 15 |
| Revenue Funds | 16 |
| Fixed asset funds | 16 |
| Summary of funds | 16 |
| Income and Expenditure Account | 17 |
| Balance Sheet | 18 |
| Notes to the Accounts | 19 - 28 |
The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
The Trustees present their Report and Accounts for the year ended 31 December 2020, which also comprises the Directors' Report required by the Companies Act 2006.
Reference and administrative details
The charity name
The legal name of the charity is:- The Hearth Centre (Horsley) Ltd
The charity is also known as The Hearth
The charity's areas of operation and UK charitable registration
The charity is registered in England and Wales with the Charity Commission for England and Wales (CCEW) with charity number 1106143.
Legal structure of the charity
The charity is constituted as a company limited by guarantee, registered under the Companies Acts . The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.
The governing document is dated:
10 October 2003
There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.
By operation of law all, trustees are directors under the Companies Act 2006 and all directors are trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation.
The Trustees are all individuals.
The principal operating address, telephone number, email and web addresses of the charity are:-
The Hearth, Main Road, Horsley, Northumberland, NE15 0NT
Telephone 01661 852545 Email address office@thehearth.co.uk Web address www.thehearth.co.uk
The registered office of the charity for Companies Act purposes is the same as the operating address shown above.
The Trustees in office during the year and on the date the report was approved were:-
Jane Gibson - Elected as Chair January 2020
Tony Glover
Pamela Hornor
Natalie Henderson - joined January 2020 Jennifer Millard - joined September 2020 Christopher Siddle - Treasurer, joined December 2020 Annie Ball - joined December 2020
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
The Trustees who served as a trustee in the reporting period, and, if applicable, their dates of appointment or resignation during the year were as shown above.
At the Annual General Meeting Jane Gibson will retire as trustee by rotation but is eligible for re-election. Natalie Henderson, Jennifer Millard, Christopher Siddle and Annie Ball will be eligible for re-election as Trustees. Tony Glover and Pamela Hornor will be retiring in 2021, having served their full period of 6 years on the Board.
All the Trustees are also members of the charity.
COVID-19 statement
At the time of consolidation of the 2020 Annual Report the world has been encountering the COVID-19 emergency for over a year. Over this period, The Hearth has seen impacts ranging from full lock-down to partial reopening in concordance with legislation as it has changed. Throughout this period, essential activity (both physical and virtual) continued to ensure The Hearth's safety in preparation to welcome everyone back to as soon as allowed. In particular, the Trustees would like to thank the team of The Hearth Cafe for keeping this vital resource to the community open throughout the emergency period, supplying meals and food to the community in and around Horsley village. We would also like to send our thanks to all the essential workers who have given service above and beyond the call of duty throughout this emergency and who are ensuring that we will be ready to return to full operational status when the time comes.
Total income for 2020 was £41,024 (2019: £50,027) which is a reflection of the lack of activity that the Hearth was able to generate through the majority of the year. In addition to the reduced amount of hall hire we also offered rent reductions to tenants due to their inability to access the studios. However we were able to apply for grants being offered by the Government during the pandemic and in particular the Government Small Business Recovery grant of £10,000 which went some way to covering the loss of income. Expenditure was also significantly reduced in 2020 as nearly all projects had to be put on hold and we are grateful to Horsley Village Church for reducing our rent payable over this period. Over the year we therefore had a small surplus of £6,962 (2019: Deficit £3,854) due mainly to expenditure having to be deferred to 2021.
Objects and activities of the charity
The purposes of the charity as set out in its governing document
The Hearth was set up as a project of Horsley Village Church and has the following objectives as revised and adopted 19 July 2004: -
1 To advance the Christian religion.
2 To promote the benefit of the inhabitants of Horsley Village and surrounding areas, young persons, without distinction of sexual orientation, race, political, religious or other opinion by associating together the said inhabitants and the local authorities, voluntary and other organisations in a common effort to advance education and to promote facilities in the interests of social welfare for recreation and other leisure-time occupations with the object of improving the conditions of life for the said inhabitants.
The charity is managed by the Trustees who take due regard to the Charity Commissioners' guidance on public benefit and ensure that the charity meets its objectives and provides public benefits through regular free events, the provision of low rent studios and display space for creative artists, and a commercially run café open to the public. The building complex is Grade II listed and is open to the public seven days a week. There is also a meeting hall available at modest charge to the local community for holding workshops, exhibitions, performances, talks, mother and toddler groups, keep fit and other activities. Some of these activities are run by the charity itself, others by individuals and local organisations.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
The Hearth operates as a hub for arts, music, heritage and hospitality, working together with Horsley Village Church for the benefit of the community. Visitors can participate in a wide range of creative activities for adults and children. New art work is always on display by resident artists and studios are open to the public.
Objectives at the outset of 2020 were to maintain fundraising activities, to extend the range of activities on offer at the Hearth Centre, to broaden the visitor base and to dynamically engage with the local community, with a particular emphasis on young people under 21 years of age.
The main activities undertaken in relation to those purposes during the year
Objectives in 2020 were to maintain fundraising activities, to extend the range of activities on offer at the Hearth, to broaden the visitor base and to dynamically engage with the local community and young people under 21 years of age.
The charity directly organises a broad programme of performing arts, a heritage programme of talks and workshops and other activities, and encouragement for local organisations to meet and use the facilities on offer.
Of course, with the outbreak of COVID-19 and the resultant Government interventions from late March and throughout the rest of 2020, the majority of our physical engagement activities had to be put on hold during the period of lockdown and be greatly changed and reduced during the limited reopening phases. We also made use of digital engagement activities to enable us to continue connecting with our stakeholders even during periods of full lockdown.
Numerous safety improvements were made in support of creating a COVID-safe environment for all our users and visitors, including:
Installation of automatic gel dispensers at entry doors, Development and delivery of enhanced cleaning regimes, Development of an online access register to manage access to the site safely, Updated Risk Register and action plan to accommodate new legislation and best practice, Establishment of a "Test and Trace" data collection system, including installation of QR Codes.
The main activities undertaken during the year to further the charity's purpose for the public benefit
As such, the report below attempts to reflect both the short period of normal operations from January to March 2020 and then the actions of the Board to manage and support The Hearth during the emergency period.
Events
2020 saw 958 hours of Hall bookings for courses, parties, clubs and local groups (2019: 1379). These included several of our artists and trustees who were able to deliver workshops in compliance with COVID-19 rules, and pilates, yoga and the Wool Group resumed after the enforced lockdown. Hall hire rates were reduced to support our users. Visiting practitioners' workshops were also delivered, including popular Green Spring Clean and Christmas Scents workshops. It was gratifying to be part of the delivery of the therapeutic benefits of creativity and crafting in these difficult times.
Our annual Spring and Autumn Art Fairs, were planned, but fell foul of the Spring and Autumn lockdowns. A smaller "Pop-Up Art Event" was planned for November, with excellent advanced ticket sales, but also had to be cancelled. However, this was replaced with a #TheHearthShopping Instagram campaign which enabled artists to connect with their customers virtually.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
The Hearth had planned a full season of monthly concerts for 2020 aiming to attract a loyal following and were eagerly looked forward to. One physical concert took place before the March 2020 lockdown, when we welcomed The Bottle Bank Band to a sell-out house on 21 February. Towards the end of 2020 our new Trustee, Annie Ball, streamed online concerts via The Hearth's website, marking Remembrance Day and the Twelve Days of Christmas.
The History & Heritage Talks are always popular and have regular followers as well as interested followers of particular topics, widening our reach. For 2020 nine talks were planned, with topics including local authors, history and interesting "hidden stories" of events in our region's past. One talk was held in February 2020 and volunteer, John Sadler recorded a number of history talks which were uploaded to our website.
Early in the year, we managed to deliver a number of workshops for children and their carers led by Hearth Trustees and artists, supported by an amazing team of Crafty Volunteers through the year as part of our Free For Young People programme, including a look at our native trees and clay monsters workshops.
Sadly we were unable to hold our Christmas "thank you" event for the Hearth Community and Friends, but the Choir from Heddon on the Wall Primary School cheered us all up with a YouTube recording of carol singing which we were able to upload to our website.
Digital engagement
In addition to the digital events listed above, the Board moved much of its activity online, including: Monthly board meetings continued uninterrupted on the Zoom platform,
Our Annual General Meeting was held in November 2020 by Zoom and was attended by 17 members of The Hearth and a number of other stakeholders.
2020 also saw an increased use of digital communications to promote our activities and we are grateful to Rebecca Vincent and our other artists, Administrator Jo Bourne and new Trustee Jennifer Millard for all their hard work in developing our digital engagement through our Website and Social Media channels.
People
The board continued its recruitment drive, which has resulted three new Trustees joining the Board. There are still gaps to be filled especially in light of the imminent retirement of our two longest-standing Trustees, Tony Glover and Pam Hornor.
The café continued to operate throughout 2020, including the provision of take-away sales during the lockdown periods which has been much appreciated by visitors and locals alike.
The Trustees held their annual strategic development planning day at Jesmond URC in February. Trustees continued their review and updating of Hearth policies and procedures.
When permitted, Artists continued to work from their studios throughout 2020, moving their visitor access and sales online as required.
The annual review of tenants' rents and service charges were put on hold for the year and will be revisited in 2021.
Maurice Holliday continues to be a valuable volunteer contributing to all areas of The Hearth. Alan Holmes, retired fire officer, continued to assist with fire safety, inspections and reports. Christine Holmes continued to attend Trustee meetings as the church committee representative.
Over 25 volunteers continued to provide invaluable support, technical and general, for music evenings, history talks and in support of our Free For Young People craft sessions.
Louise Khazaee resigned as Hearth Caretaker to take up a new work opportunity and was replaced by Rebecca Senior. The Board would like to send their thanks to Louise for all her hard work on behalf of The Hearth over many years.
Jo Bourne continued as our Administrator and remains an invaluable member of our team. We were able to take advantage of the Government's flexible furlough scheme to manage the Administrator's fluctuating hours required during 2020.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Public benefit
The Trustees have had regard to the Charities Commission's guidance on public benefit in managing the activities of the charity throughout the year.
Free access to view artists' studios throughout the year when permitted. During restricted access periods a process of controlled access was maintained and artists developed their online display and retail activities. The Hearth Café continued to grow its reputation and popularity, managing to remain open and producing their delicious offerings and hospitality throughout the year.
Whilst modest charges are made for music evenings and history talks these events provide considerable public benefit and were offered free of charge to the public when we moved to digital platforms.
2020 saw the continuation of our grant funded initiative 'Free for Young People'. In addition to the events listed above, young people also benefitted from free entry to our music and history events. The Tuesday Wool Group continued to meet twice a month in the hall when Covid-19 restrictions were eased over the summer.
Buildings
We regularly make repairs and improvements to the fabric of our Grade II listed buildings in order to make The Hearth and its environment safer, more effective and more energy efficient.
Both contractors and volunteers are essential to the maintenance and good repair of buildings and grounds, and we are very grateful to them for their efforts and diligence.
Wherever possible it is our policy to use local craftsmen and contractors, ensuring that as much of the income of The Hearth is returned to benefit the local economy as possible.
New heating was installed in the Hall and the Trustees thank Horsley Village Church for their support, both financial and practical, in bringing this to such a satisfactory conclusion.
Wi-Fi service provision to the Hall and adjoining studios was upgraded and improved.
A joint working group of Trustees and Horsley Village Church have been working on a refreshment of the Hall kitchen area.
We have continued to make improvements to the structure and appearance of the car park area, including new planting and the build of a table for an outdoor meeting area/classroom.
Environment
Our Native Trees workshop day, led by visiting artist Catherine Sanderson and supported by Hearth Trustees and Volunteers gave children from Heddon on the Wall Primary School an opportunity to explore the wonders of our natural environment.
The Christmas Scents workshop also gave participants the opportunity to learn about, create and enjoy natural and environmentally-friendly gifts.
Our updated Environment Policy is now shared with all visiting exhibitors and facility users to encourage them to be as environmentally friendly in the delivery of their activities.
The contribution of volunteers during the year
Volunteer support continues to prove crucial to the provision of consistent and high-quality activities. The Trustees dedicate many hours of front line support and operate key roles in relation to fund-raising, grant applications, music nights, liaison with tenants, history and heritage talks, gardening and buildings, and support for artists' events. In particular, during 2020, the Board are to be thanked for all the additional efforts they have put into ensuring the safe continuation of our services in these challenging times. A special welcome to volunteer Board Secretary Emma Denham who joined us at the end of 2020.
There are 25 regular volunteers and an increasing pool of occasional volunteers from Horsley Village Church, residents, tenants, former Trustees and friends and families of the Trustees. The Trustees have reviewed the volunteer recruitment and management policy to help consolidate and sustain the vital role volunteers play.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Fundraising activities during the year
The Board of Trustees are sincerely grateful to the following list of organisations who kindly made awards of grant funding to the Hearth in 2020, plus to those making generous donations. Without such support we would be unable to continue to offer the broad range of activities available at the Hearth.
| Grant funding from: | |
|---|---|
| High Sheriff of Northumberland | £750 |
| Karbon Homes | £1,000 |
| Horsley Parish Council | £300 |
| Henry Bell | £100 |
| DPD Environmental | £1,000 |
| Ecclesiastical Insurance | £1,000 |
| The Joicey Trust | £3,500 |
| The Rothley Trust | £1,000 |
| Waitrose, Ponteland | £333 |
| Northumberland Community Chest | £750 |
| The Barber Foundation | £1,000 |
In addition to our grant-making trusts, the Board would also like to thank National Government and Northumberland County Council for their support through several grants made to The Hearth under their Coronavirus Emergency and Recovery funding programmes. Without this support, we would not have been able to continue to operate over 2020 and begin to make plans for our return to full operation in 2021. Support included:
| included: | |
|---|---|
| HM Government Small business recovery fund | £10,000 |
| Northumberland County Council local restrictions | |
| support grant | £2,968 |
With the negative impact on our income-generating activities, in particular, the lack of income from Hall hires, reduced rental income and support from our concert programme and the history and heritage talks, the Board and staff have worked in partnership with our Artists to develop new fundraising opportunities including:
The installation of a "Donations" button on our website to facilitate donations from the public.
Our first Hearth Calendar 2021, showcasing beautiful colour images from our artists' work. The initial run of 100 copies sold out immediately as did a reprint of a further 50. Sales resulted in over £750 profit and the calendars will act as excellent publicity for the work of The Hearth and our artists throughout 2021.
The Board would like to give their particular thanks to Trustee Pam Hornor who has taken the lead on our fundraising activities throughout her work with The Hearth, to great effect. Also thanks to our Artist tenants and Administrator, Jo Bourne, for their inspired work on generating new fundraising opportunities for The Hearth, in particular the creation of our calendar.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Structure, governance and management of the charity
The methods used to recruit and appoint new charity trustees
Potential new trustees are identified by the Trustees, interviewed and if suitable are co-opted for the current year and offered for re-appointment by members at the following Annual General Meeting. We advertise and promote trustee vacancies at events such as Artists' Winter and Spring Fairs, in local press and through regional support networks.
The policies and procedures for the induction and training of trustees
New applicants have an informal meeting with a serving trustee. This meeting outlines the formation of the charity, how The Hearth is structured, the Trustee Board and how it operates plus a tour of the site. The applicant is provided with Charity Commission guides on the role of trustees, the latest accounts and a copy of the latest Trustees' Annual Report.
The applicant is then allowed a period of reflection to consider their ability to commit to participate as a Trustee and how their background adds value to The Hearth.
If the applicant is still keen to participate, they join a Trustee Meeting. At the meeting they introduce themselves providing their background and how they feel they add value to The Hearth. Other trustees have the opportunity to ask questions and view the applicant's performance.
Once the Board of Trustees is comfortable with the applicant, and the applicant is keen to continue, they are invited to all forthcoming trustee meetings and co-opted to the board. The new trustee completes a statement of eligibility and their details are logged with the Charities Commission and Companies House. They are formally reelected by vote at the following Annual General Meeting.
The charity's organisational structure and how decisions are made
The charity is governed by a Board of Trustees, Trustees have specific roles, namely Chair, Secretary and Treasurer as well as Grant-seeking lead, Building and Energy lead, Performing Art lead and so on. The scope and quality of Board Governance has further developed in 2020 as we continue to adhere to stricter procedural disciplines and develop strategic planning. The board is accountable to the members of The Hearth Centre (Horsley) Limited in general meeting. Noting dwindling membership in 2015, the Trustees acted to invite new members to join in 2016 and at the end of 2020 there were 26 members.
Policy, operational and organisational decisions are made collectively by the Board of Trustees and minuted in the records of the Trustees monthly meetings. The Hearth's tenants, employees, volunteers, visitors, and Horsley Village Church members are consulted as and when appropriate.
In spite of the challenges, The Hearth AGM was held online in November 2020, with a reassuring attendance of 17 members.
The day to day administration of the charity is delegated to the administrator by the charity Trustees. In 2020:
One Administrator was employed, based on 2 days a week, but with flexibility to work reduced hours during full lockdown periods. Advantage was taken of the Government's flexible furlough towards the end of 2020 when it became available.
A Cleaner/Caretaker was engaged for 7 hours per week to carry out agreed cleaning and maintenance.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
The charity as a part of a wider network
The Hearth maintains direct links with Horsley Village Church (HVC) and the Northern Synod of the United Reformed Church. 2020 has seen an ongoing review of the Head Lease and annual rent paid by The Hearth to HVC and the Northern Synod.
Informal links continue with other arts and cultural organisations within the region and Community Action Northumberland, a network of small charities and village halls in the county.
Resident artists have professional links with major arts initiatives, such as Northern Print, North East Art Collective and Network Artists in Northumberland.
The Hearth Charity maintains an ongoing relationship with Heddon on the Wall Primary school, working on various projects together.
The charity's relationships with related parties
The charity maintains a close working relationship with Horsley Village Church and a member of the church committee regularly attends the Board of Trustee meetings.
The trustees' bankers and advisors
Bankers Co-operative Bank, Delf House, South Way, Skelmersdale, WN8 6WT Solicitors Ward Hadaway, Sandgate House, 102 Quayside, Newcastle upon Tyne NE1 3DX
Financial review
The charity's financial position at the end of the year ended 31 December 2020
The financial position of the charity at 31 December 2020 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-
| Designated Fixed Asset Funds Total Unrestricted Funds Total Funds Unrestricted Revenue Funds available for the general purposes of the charity Net income/(expenditure) |
2020 £ 6,962 (3,164) 4,691 1,527 1,527 |
2019 £ (3,854) |
|---|---|---|
| (11,943) 6,508 |
||
| (5,435) | ||
| (5,435) |
Financial review of the position at the reporting date, 31 December 2020
As stated in the introduction to this report, the Trustees consider the financial performance by the charity during the year to have been satisfactory.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Policies on reserves
The Hearth has steady income with restricted opportunities to increase it and no financial investments. The current reserving policy is to build a balance of c£5,000 as a contingency. There is no separate reserve account. The board is working toward the elimination of the deficit on Revenue Accumulated Funds by creating net incoming resource operations and by transfers from Fixed Assets Funds as per policies noted in the financial statements.
Availability and adequacy of assets of each of the funds
The Board of Trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
Investment policy and investment objectives
We use a bank with ethical policies We encourage the café tenants to source local products when possible The café uses Fair Trade products
Ethical considerations will prevail if surplus funds become available for investment
The major risks to which the charity is exposed and reviews and systems to mitigate them
The Trustees have an increased awareness of the risk according to the Charity Commission guidance. The minimum statutory risk assessments have been maintained and reviewed by professionals. An increased awareness of governance risks has been achieved and a Trustee allocated to be responsible for this area. This has resulted in a plan to audit all risk assessment, policies and procedures established in 2012 in order to priorities any actions needed. The Charity Commission guide "Charities and Risk Management" formed the framework of the audit, appropriate changes were made and risks have been reviewed on a continuing basis. For example, The Hearth's Safeguarding Policy was reviewed and updated in line with the Charity Commissioner's revised guidelines in 2014. We have a trained First Aider and Fire Officer. The Trustees believe that appropriate insurance cover is in place for employer's liability, public liability, products liability, professional liability (Trustee Indemnity), events, building and contents.
Appropriate licences have been obtained for performing arts.
Principal funding sources in the year and how these support the key objectives of the charity
The principal funding source for the charity continues to be the rental income from the studios, café, and the hall. This is supplemented by income from open weekends, performing arts and heritage programmes.
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The Hearth Centre (Horsley) Ltd Company Registration Number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Plans for the future
Summary of plans for the future and the trustees' perspective of the future direction of the charity
The Trustees have pursued strategies to cover the short. medium and long-term. These are being re-considered in the light of the consequences of the COVID-19 lockdown. it is hoped the revised strategies will continue to cover:
Short term - maintain existing fundraising activity and seek grants for core costs.
Medium term - develop and deliver plans for enhancement to the visitor experience and introduce more radical fundraising methods.
Longer term - delivering ability to increase capacity for activity, retail space and interactive creative areas.
Details of the Independent Examiner
Michael Ratki FCA DChA
Fellow of The Institute of Chartered Accountants in England and Wales Pinder & Ratki 7 Lansdowne Terrace, Gosforth Newcastle upon Tyne NE3 1HN
Method of preparation of accounts - Small company provisions
The financial statements are set out on pages 14 to 28.
The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016)
These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board of trustees on 20 September 2021.
P J Gibson
Director and Trustee
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The Hearth Centre (Horsley) Ltd Company Registration number - 04929060 Trustees' Annual Report for the year ended 31 December 2020
Statement of Directors' and Trustees' Responsibilities
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP).
In particular, the Companies Act 2006 and charity law require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :-
-
to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
-
select suitable accounting policies and apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
-
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial
The law requires that the Trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They 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.
The Trustees are also responsible for the contents of the Trustees' Report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' Report is limited to examining the report and ensuring that, on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.
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The Hearth Centre (Horsley) Ltd
Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 31 December 2020
I report to the Trustees on my examination of the financial statements of the charitable company on pages 14 to 28 for the year ended 31 December 2020 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016) as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), published by the Charity Commission for England and Wales (CCEW) and under the historical cost convention and the accounting policies set out on page 19.
Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report
As described on page 11, you, the charitable company's Trustees, who are also the Directors of the company for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the Companies Act 2006, the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.
The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the memorandum and articles of the charity for the conducting of an audit, and that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006 and that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. As a consequence, the Trustees have elected that the financial statements be subject to independent examination.
Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to:-
a) examine the financial statements of the charity under Section 145 of the Act;
b) follow the applicable procedures in the directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of Independent Examiner's Statement and scope of work undertaken
I report in respect of my examination of the charity's financial statements carried out under s145 of the Act. 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 setting out the duties of an independent examiner in relation to the conducting of an independent examination. An independent examination includes a review of the accounting records kept by the charitable company and of the accounting systems employed by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP.
The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide.
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The Hearth Centre (Horsley) Ltd
Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 31 December 2020
Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.
I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.
Independent Examiner's Statement, Report and Opinion
Subject to the limitations upon the scope of my work as detailed above, I have completed my examination and can confirm that:-
The accounts of this charitable company are not required to be audited under Part 16 of the Companies Act 2006;
This is a report in respect of an examination carried out under 145 of the Act and in accordance with directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;
and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:-
accounting records were not kept in respect of the charity as required by Section 386 of the Companies Act 2006 and Section 130 of The Charities Act 2011;
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair' view, which is not a matter considered as part of an independent examination;
have not been prepared in accordance with the methods and principles set out in the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP).
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 financial statements to be reached.
Michael Ratki FCA DChA - Independent Examiner
Fellow of The Institute of Chartered Accountants in England and Wales Pinder & Ratki 7 Lansdowne Terrace, Gosforth Newcastle upon Tyne NE3 1HN
This report was signed on 20 September 2021
13
The Hearth Centre (Horsley) Ltd
Statement of Financial Activities for the year ended 31 December 2020
| Income and endowments from: Donations and legacies A1 Charitable activities A2 Other trading activities A3 Other income A5 Total income A Expenditure on: Raising funds B1 Charitable activities B2 Total expenditure B Net income/(expenditure) for the year Reconciliation of funds:- E Total funds brought forward Total funds carried forward SORP Ref Net movement in funds |
Current year unrestricted funds 2020 £ 15,291 21,848 3,307 578 |
Current year restricted funds 2020 £ - - - - - - - - - - - - |
Current year total funds 2020 £ 15,291 21,848 3,307 578 41,024 613 33,449 34,062 6,962 6,962 (5,435) 1,527 |
Prior year total funds 2019 £ 2,715 40,060 6,998 254 |
|---|---|---|---|---|
| 41,024 | 50,027 | |||
| 613 33,449 |
- 53,881 |
|||
| 34,062 | 53,881 | |||
| 6,962 | (3,854) | |||
| 6,962 (5,435) |
(3,854) (1,581) |
|||
| 1,527 | (5,435) |
A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.
All the prior year transactions were unrestricted items, and no further analysis is required. All activities derive from continuing operations.
Resources applied in the year ended 31 December 2020 towards fixed assets for charity use:-
| Funds generated in the year as detailed in the SOFA Resources applied on functional fixed assets Net resources available to fund charitable activities |
2020 £ 6,962 - 6,962 |
2019 £ (3,854) (2,204) |
|---|---|---|
| (6,058) |
The resources applied on fixed assets for charity use represents the cost of additions less proceeds of any disposals.
The notes attached on pages 19 to 28 form an integral part of these accounts
14
The Hearth Centre (Horsley) Ltd
Analysis of prior year total funds as required by paragraph 4.2 of the SORP
| Income from: Donations and legacies A1 Charitable activities A2 Other trading activities A3 Other income A5 Total income A Expenditure on: Charitable activities B2 Total expenditure B Net expenditure for the year Reconciliation of funds:- E Total funds brought forward Total funds carried forward SORP Ref Net movement in funds |
Prior year unrestricted funds 2019 £ 2,715 40,060 6,998 254 |
Prior year restricted funds 2019 £ - - - - - - - - - |
Prior year total funds 2019 £ 2,715 40,060 6,998 254 |
|---|---|---|---|
| 50,027 | 50,027 | ||
| 53,881 | 53,881 | ||
| 53,881 | 53,881 | ||
| (3,854) | (3,854) | ||
| (3,854) (1,581) |
(3,854) (1,581) |
||
| (5,435) | (5,435) |
All activities derive from continuing operations.
The notes attached on pages 19 to 28 form an integral part of these accounts
15
The Hearth Centre (Horsley) Ltd
Movements in revenue and capital funds for the year ended 31 December 2020
Revenue accumulated funds
| Accumulated funds brought forward To/(From) unrestricted revenue funds Closing revenue funds Fixed asset funds At 1 January 2020 Transfer (to)/from revenue funds At 31 December 2020 Recognised gains and losses before transfers |
Unrestricted funds 2020 £ (11,943) 6,962 |
Restricted funds 2020 £ - - - - - Restricted funds 2020 £ - - - |
Total funds 2020 £ (11,943) 6,962 (4,981) 1,817 (3,164) Total funds 2020 £ 6,508 (1,817) 4,691 |
Last year total funds 2019 £ (10,512) (3,854) |
|---|---|---|---|---|
| (4,981) 1,817 |
(14,366) 2,423 |
|||
| (3,164) | (11,943) | |||
| Designated funds 2020 £ 6,508 (1,817) |
Last year total funds 2019 £ 8,931 (2,423) |
|||
| 4,691 | 6,508 |
The purposes of the transfers to fixed asset funds are described in Note 20 to the accounts and under the accounting policy 'Accounting for capital grants and fixed asset funds'.
| Summary of funds Unrestricted and designated funds 2020 £ Revenue accumulated funds (3,164) Fixed asset funds 4,691 Total funds 1,527 |
Summary of funds Unrestricted and designated funds 2020 £ Revenue accumulated funds (3,164) Fixed asset funds 4,691 Total funds 1,527 |
Restricted funds 2020 £ - - - |
Total funds 2020 £ (3,164) 4,691 1,527 |
Last year total funds 2019 £ (11,943) 6,508 |
|---|---|---|---|---|
| 1,527 | (5,435) |
The notes attached on pages 19 to 28 form an integral part of these accounts
16
The Hearth Centre (Horsley) Ltd
Income and Expenditure Account for the year ended 31 December 2020 as required by the Companies Act 2006
| Income Income from operations Other operating income Gross income in the year Expenditure Charitable expenditure, excluding depreciation and amortisation Depreciation and amortisation Fundraising costs Governance costs Total expenditure in the year Transfer of capital grants to fixed asset fund Retained surplus for the financial year Net income in the financial year |
2020 £ 40,446 578 41,024 30,242 1,817 613 1,390 34,062 6,962 - 6,962 |
2019 £ 49,773 254 |
|---|---|---|
| 50,027 | ||
| 50,070 2,423 - 1,388 |
||
| 53,881 | ||
| (3,854) 2,496 |
||
| (1,358) |
All activities derive from continuing operations
In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure Account have been adapted to reflect the special nature of the charity's activities.
The notes attached on pages 19 to 28 form an integral part of these accounts
17
The Hearth Centre (Horsley) Ltd
Balance Sheet as at 31 December 2020
| NoteSORP 2020 £ Fixed assets A Tangible assets 10 A2 5,454 Current assets B Debtors 11 B2 796 Cash at bank and in hand B4 37,397 Total current assets 38,193 Creditors: amounts falling due within one year 12 C1 (14,595) Net current assets 23,598 29,052 Creditors: amounts falling due after more than one year 13 C2 (27,525) Total net assets of the charity/(liabilities 1,527 Unrestricted funds Unrestricted Revenue Funds 17 D3 (3,164) Designated funds Designated Fixed Asset Funds 17 D3 4,691 Total charity funds 1,527 Total assets less current liabilities Total net assets of the charity/(liabilities of the charity) are funded by the funds |
2019 £ 7,271 2,542 20,105 22,647 (7,828) 14,819 22,090 (27,525) (5,435) (11,943) 6,508 (5,435) of the charity, as follows:- |
2019 £ 7,271 2,542 20,105 22,647 (7,828) 14,819 22,090 (27,525) (5,435) (11,943) 6,508 (5,435) of the charity, as follows:- |
|---|---|---|
| (5,435) |
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on pages 12 - 13.
The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
P J Gibson
Trustee
Approved by the Board of Trustees on 20 September 2021
The notes attached on pages 19 to 28 form an integral part of these accounts
18
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
1 Accounting policies
Policies relating to the production of the accounts
Basis of preparation and accounting convention
The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), published by the Charity Commission for England and Wales (CCEW) effective January 2016, and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.
Going concern
The charity is dependent on the continuing support of Horsley Village Church who have provided funding of £27,525 and as a consequence the going concern basis is also dependent on the continuing support of Horsley Village Church. Other than these matters, the Trustees are not aware of any material uncertainties about the charity's ability to continue as a going concern.
Risks and future assumptions
The charity is a public benefit entity.
Policies relating to categories of income and income recognition
Nature of income
Gross income represents the value, net of discounts, of goods provided to customers and work carried out in respect of services provided to customers.
Categories of Income
Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.
Income from exchange transactions is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.
Income from a non-exchange transaction is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.
Income recognition
Income, whether from exchange or non exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.
Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.
All income is accounted for gross, before deducting any related fees or costs.
19
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
Accounting for deferred income and income received in advance
Where terms and conditions relating to income have not been met or uncertainty exists as to whether the charity can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met.
Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition, or is subject to unmet conditions wholly outside the control of the recipient charity, is accounted for as a liability and shown on the balance sheet as deferred income. Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met.
When income from a grant or donation has not been recognised due to the conditions applying to the gift not being wholly within the control of the recipient charity, it is disclosed as a contingent asset if receipt of the grant or donation is probable once those conditions are met.
Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned, and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred.
Any condition that allows for the recovery by the donor of any unexpended part of a grant does not prevent recognition of the income concerned, but a liability to any repayment is recognised when repayment becomes probable.
Policies relating to expenditure on goods and services provided to the charity
Recognition of liabilities and expenditure
A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.
Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.
Allocating costs to activities
Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities based on the judgement of the Trustees.
Staffing - on the basis of time spent in connection with any particular activity. Premises related costs - on the proportion of floor area occupied by a particular activity. Non specific support costs - on the basis of the usage of resources, in terms of time taken, capacity used, request made or other measures, in line with the best judgement of the Trustees.
Volunteers
In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity. However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note 6.
20
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
Policies relating to assets, liabilities and provisions and other matters
Tangible fixed assets
Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition. Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.
Plant and machinery 25 % reducing balance
Accounting for capital grants and fixed asset funds
Gifts of tangible fixed assets or grants of a capital nature, given for the purposes of acquiring specific assets to be fully utilised in the furtherance of the objects of the charity, are credited to fixed asset funds after the donated asset has been received or sums have been properly expended on the restricted purpose.
Where the terms of the gift require the charity to hold the asset on an ongoing basis for a specific purpose, then the fixed asset fund so created is categorised as a restricted fixed asset fund, and the relevant restrictions are noted in the fixed asset note 10.
Where the terms of the gift are met once the asset is acquired, so allowing the charity to use the asset on an unrestricted basis, including the right to receive the proceeds of any future sale of the asset on an unrestricted basis, then the fixed asset fund so created is categorised as a designated fixed asset fund.
When assets are acquired for the furtherance of the charity's objects, utilising the charity's own unrestricted funds, a transfer is made from unrestricted funds to a designated fixed asset fund.
Whether acquired with unrestricted or restricted funds, the asset acquired is initially shown in the balance sheet at the full cost of acquisition or subsequent revaluation.
As the related assets are depreciated, in accordance with the depreciation policy, in order to reflect the diminution in the asset, a transfer is made from the relevant fixed asset funds to either unrestricted or restricted revenue funds, as appropriate to the terms of the original gift, if any.
The effect of this policy is that the aggregate of all fixed asset funds shall equate to the net book value of fixed assets.
In the first year that this policy was adopted, a transfer to fixed asset funds was made equivalent to the net book value of the assets.
Any residual liability to the donor arising from, for example, the asset's future sale, is disclosed as a contingent liability unless the event that would trigger repayment of the grant becomes probable in which case a liability for repayment is recognised.
Insofar as this policy relates to Government grants and to the extent that it may be a departure from the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), such departure is justified on the basis that it is in order to comply with the SORP.
Debtors
Debtors are measured at their recoverable amounts at the balance sheet date.
Creditors and provisions
Liabilities are recognised on the accruals basis in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the SORP.
21
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
Leasing and hire purchase contracts and commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the charity, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.
The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
Fund accounting
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
There are no restricted funds.
2 Liability to taxation
The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
3 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
4 Significance of financial instruments to the charity's position
The Horsley Village Church provided the company with a 10 year interest free loan of £27,525 in 2004. The company received confirmation that this loan has been rolled over for a further 10 years on the same interest free terms.
22
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
5 Net surplus before tax in the financial year
| Net surplus before tax in the financial year | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| The net surplus before tax in the financial year is stated after charging:- | ||
| Depreciation of owned fixed assets | 1,817 | 2,423 |
6 The contribution of volunteers
As disclosed within the Trustees' Report, the charity depends on the support of its volunteers, which is much appreciated. The arrangements with volunteers are difficult to value precisely in monetary terms and have not been recognised in the Statement of Financial Activities. The volunteers and the charity accept and agree that no contract of employment is created by these arrangements.
7 Staff costs and emoluments
| Salary costs Gross salaries excluding trustees and key management personnel Total salaries, wages and related costs Numbers of full time employees or full time equivalents The average number of total staff employed in the year was Engaged on charitable activities Engaged on management and administration |
2020 £ 9,982 |
2019 £ 12,220 |
|---|---|---|
| 9,982 | 12,220 | |
| 2020 2 |
2019 2 |
|
| 1 1 |
1 1 |
Neither the Trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.
23
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
8 Deferred income - Unrestricted and Designated funds
| Sundry items under £1,000 Greggs Foundation Northumberland County Council - COVID support Ecclesiastical Insurance Group Total These deferrals are included in creditors |
Opening deferrals £ 1,700 1,000 - - |
Released from prior years £ - - - - |
Received less released in year £ 433 - 2,968 1,000 |
Deferred at year end £ 2,133 1,000 2,968 1,000 |
|---|---|---|---|---|
| 2,700 | - | 4,401 | 7,101 | |
| 2020 £ 7,101 |
2019 £ 2,700 |
The deferrals included in creditors relate to funding specified by the funders as relating to specific periods and represent those parts of unrestricted funds which relate to periods subsequent to the accounting year end and are treated as grants in advance, or, alternatively, where there are conditions which must be fulfilled prior to entitlement or use of the unrestricted funds by the charity .
9 Deferred income - Restricted funds
| Sundry items under £1000 DPD Environmental The Barbour Foundation The Rothley Trust Karbon Homes Total These deferrals are included in creditors |
Opening Deferrals £ - - - - - |
Released from prior years £ - - - - - |
Received less released in year £ 1,050 1,000 1,000 1,000 1,000 |
Deferred at year end £ 1,050 1,000 1,000 1,000 1,000 |
|---|---|---|---|---|
| - | - | 5,050 | 5,050 | |
| 2020 £ 5,050 |
2019 £ - |
24
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
10 Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 11 Debtors Trade debtors Prepayments and accrued income 12 Creditors: amounts falling due within one year Accruals Deferred income - Unrestricted & Designated funds Deferred Income - Restricted funds PAYE, NIC, VAT and other taxes Other creditors 13 Creditors: amounts falling due after one year Other creditors |
Land and buildings £ 228,566 |
Plant & machinery £ 26,637 |
Total £ 255,203 |
|---|---|---|---|
| 228,566 | 26,637 | 255,203 | |
| 228,565 - |
19,367 1,817 |
247,932 1,817 |
|
| 228,565 | 21,184 | 249,749 | |
| 1 | 5,453 | 5,454 | |
| 1 | 7,270 | 7,271 | |
| 2020 £ - 796 |
2019 £ 1,362 1,180 |
||
| 796 | 2,542 | ||
| 2020 £ 1,538 7,101 5,050 6 900 |
2019 £ 4,228 2,700 - - 900 |
||
| 14,595 | 7,828 | ||
| 2020 £ 27,525 |
2019 £ 27,525 |
25
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
| 14 Unrestricted funds summary At 1 January 2020 Surplus/(loss) for the year At 31 December 2020 |
2020 £ (5,435) 6,962 |
2019 £ (1,581) (3,854) |
|---|---|---|
| 1,527 | (5,435) |
15 Related party transactions
In 2005 the charity acquired fixed assets from Horsley Village Church for £186,911 and was granted a 23 year lease of premises by Horsley Village Church at an annual rent of £6,000 per annum. In the light of the COVID-19 restrictions the rent was reduced on a temporary basis.
16 Particulars of how particular funds are represented by assets and liabilities
| At 31 December 2020 Tangible fixed assets Current assets Current liabilities Long term liabilities At 1 January 2020 Tangible fixed assets Current assets Current liabilities Long term liabilities |
Unrestricted funds £ 763 38,193 (14,595) (27,525) |
Designated funds £ 4,691 - - |
Restricted funds £ - - - - |
Total funds £ 5,454 38,193 (14,595) (27,525) |
|---|---|---|---|---|
| (3,164) | 4,691 | - | 1,527 | |
| Unrestricted funds £ 763 22,647 (7,828) (27,525) |
Designated funds £ 6,508 - - - |
Restricted funds £ - - - - |
Total Funds £ 7,271 22,647 (7,828) (27,525) |
|
| (11,943) | 6,508 | - | (5,435) |
26
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
17 Change in total funds over the year as shown in Note 16 , analysed by individual funds
| Unrestricted and designated funds:- Unrestricted Revenue Funds Designated Fixed Asset Funds Total unrestricted and designated funds Total charity funds |
£ (11,943) 6,508 Funds brought forward from 2019 |
See Note 18 £ 6,962 - Movement in funds in 2020 |
See Note 19 £ 1,817 (1,817) Transfers between funds in 2020 |
£ (3,164) 4,691 Funds carried forward to 2021 |
|---|---|---|---|---|
| (5,435) | 6,962 | - | 1,527 | |
| (5,435) | 6,962 | - | 1,527 |
18 Analysis of movements in funds over the year as shown in Note 17
| Other | ||||
|---|---|---|---|---|
| **Income ** | Expenditure | gains & | Movement | |
| losses | in funds | |||
| 2020 | 2020 | 2020 | 2020 | |
| £ | £ | £ | £ | |
| Unrestricted and designated funds:- | ||||
| Unrestricted Revenue Funds | 41,024 | (34,062) | - | 6,962 |
19 Details of transfers between funds in the year as shown in Note 17
| To/(from) Designated Fixed Asset Funds Nt tf The transfers shown in note 17 above are:- To/(from) Unrestricted Revenue Funds in accordance with the accounting policy 'Accounting for capital grants and fixed asset funds'. |
2020 £ 1,817 (1,817) |
|---|---|
| - |
Net transfers
27
The Hearth Centre (Horsley) Ltd
Notes to the Accounts for the year ended 31 December 2020
20 The purposes for which the funds as detailed in note 17 are held by the charity are:- Unrestricted and designated funds:-
Unrestricted Revenue Funds These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and, subject to charity legislation, are free from all restrictions on their use. Unrestricted Revaluation Reserve This fund represents the unrestricted surplus arising on the revaluation of the charity's assets. Designated Fixed Asset Funds The purpose of these funds is described under the accounting policy 'Accounting for capital grants and fixed asset funds'.
Restricted funds:-
Restricted Fixed Asset Funds The purpose of these funds is described under the accounting policy 'Accounting for capital grants and fixed asset funds'. Restricted Revaluation Reserve This fund represents the restricted surplus arising on the revaluation of the charity's assets.
21 Ultimate controlling party
The charity is under the control of its legal members.
Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
28