www.harvestfieldscentre.org.uk
HARVEST FIELDS CENTRE LIMITED
UNAUDITED FINANCIAL STATEMENTS
31 December 2023
Independent Examiner David Hoose FCA
Forvis Mazars LLP 2 Chamberlain Square Birmingham B3 3AX
Charity number 1116654 Company number 5932955
| INDEX | |
|---|---|
| Page | |
| GENERAL INFORMATION | 1 |
| DIRECTORS' REPORT | 2 to 4 |
| INDEPENDENT EXAMINER’S REPORT | 5 to 6 |
| STATEMENT OF FINANCIAL ACTIVITIES | 7 |
| BALANCE SHEET | 8 |
| NOTES TO THE FINANCIAL STATEMENTS | 9 to 12 |
GENERAL INFORMATION
CHARITY NUMBER: 1116654 (England & Wales) COMPANY NUMBER: 5932955 (England & Wales) KEY MANAGEMENT & PERSONNEL: Jayne Emery (Centre Manager) DIRECTORS: Mr E I Cole Mr P T Gibbins Mrs J A Gilmour Mrs P S Gilmour Mr R A Nicol Mrs S J Robinson PRINCIPAL OFFICE AND Harvest Fields Centre CORRESPONDENCE ADDRESS: Harvest Field Way Sutton Coldfield West Midlands B75 5TJ BANKERS: Barclays Bank Leicester LE87 2BB INDEPENDENT EXAMINER: David Hoose FCA Forvis Mazars LLP 2 Chamberlain Square Birmingham B3 3AX SOLICITORS: Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES
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DIRECTORS’ REPORT
The Directors present their report and financial statements for the year ended 31st December 2023.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charity was established by Memorandum and Articles of Association under company number 5932955 and was recognised as a charity on 6[th] November 2006. A slightly revised Memorandum and Articles of Association were adopted by Special Resolution passed 30[th] June 2008 following approval of the revision by the Charity Commission.
It was set up to lease and operate the Harvest Fields Centre built on the Harvest Fields development in Sutton Coldfield.
All the Directors, listed on page 1 (Mr E I Cole, Mr P T Gibbins, Mrs J A Gilmour, Mrs P S Gilmour, Mr R A Nicol and Mrs S J Robinson), served throughout the year and remain in office to date. None of the Directors received any remuneration directly or indirectly from the Charity. The power of appointing new or additional directors is vested in Harvest Fields Community Church (HFCC) from those recommended by this Charity’s Directors at the time. Although HFCC is its sole member, because of the restrictions in this Charity’s Articles of Association, it is not its parent undertaking.
It has been agreed that, as part of the induction process for new directors, before anyone considers appointment as a director, they should familiarise themselves with the responsibilities of directors and charity trustees, read the Charity commission booklet on this subject and carefully read the Charity’s Memorandum and Articles of Association and its latest financial statements.
There are a number of registered charities that are associated by reason of having one or more directors/trustees in common. However, none of these are related parties to the Charity. The names of these charities and details of the transactions are set out in note 12.
The Directors have a risk management strategy which includes a regular review of the principal risks and uncertainties that the Charity faces. Policies and procedures are put in place to mitigate and manage those risks identified. Risks most recently identified and discussed include increased costs, decreased business, and system failure.
OBJECTIVES, ACTIVITIES AND PUBLIC BENEFIT
The Object as set out in the Charity’s memorandum of association, one of its governing documents, is to operate the Harvest Fields Church and Community Centre in Sutton Coldfield for the benefit of the public at large; to advance the Christian faith and, in particular but without prejudice to the generality of the foregoing, to provide a place for a Christian church to meet.
Vision :
The vision for Harvest Fields Centre is to be the heart of the community by providing facilities to meet the social, spiritual and practical needs of local people.
Mission :
Social – to provide meeting rooms and sports facilities for the community within a safe, caring environment. To provide an environment where friendships can be made and can grow.
Spiritual – to provide a home for Harvest Fields Community Church, as a place for Christian worship, service and witness. To provide a prayer room - a place where people can find peace in the chaos of everyday life through reflection and Christian prayer.
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Practical – to provide youth and children’s facilities, a venue for learning. To provide facilities for people to meet together, build relationships and share interests. To promote and support local community groups.
The Centre hosted 4886 delegates which covered our operating costs including salary increases, and allowed investment into AV systems in response to client feedback, a new coffee machine, and other works to improve/preserve the fabric of the building. Feedback from clients is excellent across the board. We continue to develop the food & drink offer, plus proactive marketing. A stable staff team this year has meant consistent, high quality service to the whole range of folk who visit the Centre. Community groups, fitness classes and other activities are working well.
ACHIEVEMENTS, PERFORMANCE AND PUBLIC BENEFIT
The Directors have taken account of the Charity Commission’s general guidance relating to public benefit when reviewing the Charity’s achievements and performance.
The Centre is available for use by members of the general public and for other use that is charitable in line with the Centre’s vision and mission. The Charity receives positive feedback about the quality and availability of the Centre to its local community as well as from its commercial users.
The Directors consider that the Charity’s achievements and performance meet the public benefit requirements by operating a venue that is positioned at the centre of the community providing facilities with a vision to meet the social, spiritual and practical needs of local people of all ages, from a wide range of backgrounds and other charitable use.
FINANCIAL REVIEW
The Directors are grateful for the financial help, in the form of a grant from Sutton Coldfield Charitable Trust, which we received in the year.
The Directors agreed a budget of 5,500 delegates which we estimated would bring in an operating deficit of £4,568 at the year end.
We were therefore delighted with a surplus of £25,062 after hosting just 4,886 delegates in the year.
Unrestricted funds of £133,071 (2022: £108,009) were held at the year end. This is a level of reserves identified by the Directors as appropriate given their plans for the future activities of the charity.
After reviewing the forecasts and projections, the Directors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. They have therefore continued to adopt the going concern basis in preparing the financial statements.
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STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements 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 that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material
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departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Charity will continue operating;
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prepare the Directors’ report and the financial statements in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102).
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
In preparing this report, the Directors have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006 and Section 1A of the FRS102.
AUDIT EXEMPTION
The Charity is exempt from the requirements to have its financial statements audited but, as its income is above £25,000, it does have them independently examined.
Jul 3, 2024 Approved and signed on behalf of the Directors on …………..
SJRobinson SJRobinson (Jul 3, 2024 11:06 GMT+1)
S J Robinson, Director
Page 4
Independent Examiner’s Report to the Trustees of Harvest Fields Centre Limited
I report on the financial statements of Harvest Fields Centre Limited for the year ended 31[st] December 2023, which are set out on pages 7 to 12.
Respective responsibilities of trustees and examiner
The 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 requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements as carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(b) of the 2011 Act.
This report, including my statement, has been prepared for and only for the charity’s trustees as a body. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body for my examination work, for this report, or for the statements I have made.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity 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 any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
Since the charity’s gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
In connection with my examination, which is complete, no matters have come to my attention which give me reasonable cause to believe that in any material respect:
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accounting records were not kept in respect of Harvest Fields Centre Limited in accordance with section 386 of the 2006 Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
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the financial statements have not been prepared in accordance with the methods and principals of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
David Hoose (Jul 3, 2024 11:24 GMT+1)
David Hoose FCA For and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor 2 Chamberlain Square Birmingham B3 3AX
Date: Jul 3, 2024
Page 6
STATEMENT OF FINANCIAL ACTIVITIES AND SUMMARY INCOME AND EXPENDITURE ACCOUNT For the year ended 31 December 2023
| Notes | 2023 | 2022 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| Income: | |||||
| Donations: | |||||
| Donations in money | 16,000 | 69 | |||
| Donations in kind | - | - | |||
| ───── | ───── | ||||
| 16,000 | 69 | ||||
| Charitable activities: | |||||
| Gross charitable rental income | 24,816 | 24,303 | |||
| Charges for other charitable use | |||||
| of Centre | 294,803 | 281,260 | |||
| ───── | ───── | ||||
| 319,619 | 305,563 | ||||
| Other income | 1 | - | 4,000 | ||
| Other investment income | 287 | 29 | |||
| ───── | ───── | ||||
| Total Income | 2 | 335,906 | 309,661 | ||
| ═════ | ═════ | ||||
| Expenditure on: | |||||
| Charitable activities: | 3 | ||||
| Expenses re charitable rental income | 20,801 | 21,153 | |||
| Expenses re other charitable use | |||||
| of Centre | 290,043 | 256,091 | |||
| ───── | ───── | ||||
| Total Expenditure | 310,844 | 277,244 | |||
| ═════ | ═════ | ||||
| Net Income for the Year and Net | |||||
| Movement in Funds | 25,062 | 32,417 | |||
| Surplus brought forward | 108,009 | 75,592 | |||
| ───── | ───── | ||||
| Surplus carried forward | 133,071 | 108,009 | |||
| ═════ | ═════ |
The Statement of Financial Activities includes all gains and losses recognised in the year.
All the incoming and expended resources were unrestricted funds and derived from continuing activities. The notes on pages 9 to 12 form part of these financial statements.
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BALANCE SHEET
For the year ended 31 December 2023
| Notes | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Fixed Assets | |||
| Tangible assets: Furniture and equipment | 8 | 67,023 | 19,504 |
| ───── | ───── | ||
| Current Assets | |||
| Debtors | 9 | 20,353 | 30,847 |
| Cash at bank and in hand | 76,989 | 89,595 | |
| ───── | ───── | ||
| 97,342 | 120,442 | ||
| Current Liabilities | |||
| Creditors: Amounts falling due within one year | 10 | (31,294) | (31,937) |
| ───── | ───── | ||
| Net Current Assets | 66,048 | 88,505 | |
| ───── | ───── | ||
| Total Assets less Current Liabilities | 133,071 | 108,009 | |
| ───── | ───── | ||
| Net Assets | 133,071 | 108,009 | |
| ═════ | ═════ | ||
| Represented by: | |||
| Surplus on Unrestricted Fund | 133,071 | 108,009 | |
| ═════ | ═════ |
The Directors consider that the Charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (“the Act”) and the Member has not required the Charity to obtain an audit for the year in question in accordance with section 476 of the Act. The Directors acknowledge their responsibilities for ensuring that the Charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the Charity as at 31 December 2023 and of its income and expenditure for the year then ended in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Act relating to the financial statements as so far as applicable to the Charity.
The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance with Section 1A of the FRS102.
Approved and signed on behalf of the Directors on …………………. Jul 3, 2024
SJRobinson SJRobinson (Jul 3, 2024 11:06 GMT+1)
S J Robinson Director
Company number 5932955
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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023
1 ACCOUNTING POLICIES
Basis of preparation
These financial statements are prepared under the historical cost convention and in accordance with:
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The Charities Act 2011
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The Companies Act 2006
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The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102)
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Accounting & Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS102)
The accounts present a true and fair view and no changes in the basis of accounting have been made during the year. The charity is a public benefit entity.
Cash Flow Exemption
The charitable company has not produced a statement of Cash Flows, as the charity is within the small company and charity thresholds.
Income
Donations in money are included on a cash received basis. There would be no material difference if an accruals basis were adopted. Any tax recoverable will be included in the period to which the gift generating the tax recovery relates (accruals basis). Donations in kind are included on an accruals basis. Income from investments and rental income are included in the SOFA in the period in which it is receivable.
Local government grant
In the prior year, the Charity benefited from a local government cash grant which has been recognised within 'Other income'.
Expenditure
Expenditure is included on an accruals basis when incurred. Costs relating to more than one category are apportioned based upon estimated usage. As the Charity is not registered for Value Added Tax, irrecoverable VAT is included in the expense heading to which it relates.
Fixed Tangible Assets
Purchases of individual items of furniture and equipment over £1,500 are capitalised; other items are expensed when incurred in the SOFA.
Depreciation
Depreciation is provided on capitalised furniture and equipment at rates calculated to write off the cost of each asset on a straight line basis over five years.
Judgements and Estimations
Management has not made any significant judgements in the process of applying the accounting policies and there are no areas of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.
Going concern
The Directors are of a view that there are sufficient reserves to secure the immediate future of the charity (for the next 12 to 18 months) and on that basis the charity is a going concern.
Cash at bank and in hand
Cash at bank and cash in hand includes cash which is available.
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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023
Creditors and accruals
Creditors and accruals are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
2 INCOME
The income for the year arises from the various sources as set out in the SOFA on page 7 and as more particularly described in the Directors’ Report.
3 EXPENDITURE
In the year the expenditure charged in the SOFA includes:
| the year the expenditure charged in the SOFA includes: | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Employment costs (note 4a) | 143,998 | 117,002 |
| Agency staff etc. (note 4b) | - | - |
| Catering and other service costs | 56,077 | 60,759 |
| Utility charges (gas, electric, water and telephone) | 25,640 | 27,045 |
| Rent payable for use of Centre (note 12) | 19,099 | 16,956 |
| Business rates and council tax for the current year | 548 | 1,006 |
| Depreciation of furniture and equipment | 13,529 | 7,804 |
| Governance costs (note 6) | 1,873 | 1,753 |
4 STAFF COSTS
a) Direct Employees
| Direct Employees | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Salaries | 138,263 | 113,636 |
| Employer’s National Insurance net of employment allowance | 3,499 | 1,829 |
| Pension contribution | 2,236 | 1,537 |
| ───── | ───── | |
| 143,998 | 117,002 | |
| ═════ | ═════ |
The average headcount for the year was 8.92 (2022: 8.83). No employee was paid more than £60,000 per annum.
b) Agency
The Centre has not needed to employ the services of staff on an agency basis this year.
5 DIRECTORS’ & KEY MANAGEMENT REMUNERATION
No Director received any remuneration directly or indirectly from the Charity.
The Centre Manager received £39,363 (2022: £36,000). These figures include salary, expenses, bonuses and pension contributions.
Transactions with related parties are set out in note 12.
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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023
6 GOVERNANCE COSTS
This comprises a provision for the Independent Examiner’s fee of £1,860 (2022: £1,740) including VAT and Companies House filing fee of £13 (2022: £13).
7 TAXATION
The company is a registered charity and, as all its income will be applied for charitable purposes, no liability to tax arises in respect of the year ended 31st December 2023.
| 8 | FIXED TANGIBLE ASSETS | Furniture and Equipment | |
|---|---|---|---|
| £ | |||
| Cost | |||
| At 31st December 2022 | 136,069 | ||
| Additions in year | 61,048 | ||
| ──── | |||
| At 31st December 2023 | 197,117 | ||
| ════ | |||
| Depreciation | |||
| At 31st December 2022 | 116,565 | ||
| Charge in year | 13,529 | ||
| ──── | |||
| At 31st December 2023 | 130,094 | ||
| ════ | |||
| Net Book Value | |||
| At 31st December 2023 | 67,023 | ||
| ════ | |||
| At 31st December 2022 | 19,504 | ||
| ════ | |||
| 9 | DEBTORS | ||
| 2023 | 2022 | ||
| This comprises:- | £ | £ | |
| Trade debtors | 13,141 | 22,139 | |
| Other debtors | 250 | 250 | |
| Prepayments | 6,962 | 8,458 | |
| ──── | ──── | ||
| 20,353 | 30,847 | ||
| ════ | ════ | ||
| 10 | CREDITORS FALLING DUE WITHIN TWELVE MONTHS | ||
| 2023 | 2022 | ||
| This comprises:- | £ | £ | |
| Trade creditors | 23,531 | 22,767 | |
| Other creditors | 3,906 | 5,234 | |
| Accruals | 3,857 | 3,936 | |
| ──── | ──── | ||
| 31,294 | 31,937 | ||
| ════ | ════ |
9 DEBTORS
10 CREDITORS FALLING DUE WITHIN TWELVE MONTHS
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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023
11 SHARE CAPITAL
The Charity is limited by guarantee and has no share capital. Each member of the Charity has undertaken to contribute a sum, not exceeding £1, to the Charity's assets if it is wound up whilst that person is a member or within one year after ceasing to be a member.
12 ASSOCIATED PARTY TRANSACTIONS ETC
This Charity has a 999 year lease of the Centre executed in 2007. Its superior landlord is Harvest Fields Community Church (HFCC). The rent is £12,000 per annum plus RPI (on the condition that this Charity does not breach the terms of its lease, if it does, the rent is £100,000 per annum plus RPI). In 2023, HFCC charged the Charity £19,099 (2022: £16,956).
HFCC used the Centre in accordance with the lease contributing at cost £11,715 (2022: £11,559) to the utilities and servicing expenditure. This is reported as part of the gross charitable rental income in the SOFA.
13 FINANCIAL COMMITMENTS
The Charity is committed to paying rent for the Centre with an annual charge of £12,000 plus indexation from 2008 under its lease which expires after more than a hundred years. For 2024 the commitment is £20,791 (2023: £19,099).
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