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2023-12-31-accounts

COMPANY REGISTRATION NUMBER: 05537789 CHARITY REGISTRATION NUMBER: 1117707

Smethwick Heritage Centre Trust Company Limited by Guarantee Unaudited Financial Statements 31 December 2023

KMS ACCOUNTANCY LTD

Trigate Business Centre 210-222 Hagley Road West Birmingham West Midlands B68 0NP

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2023

Page
Trustees' annual report (incorporating the director's report) 1
Independent examiner's report to the trustees 4
Statement of financial activities (including income and
expenditure account) 5
Statement of financial position 6
Notes to the financial statements 7

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 December 2023

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2023.

Reference and administrative details

Registered charity name Smethwick Heritage Centre Trust Charity registration number 1117707 Company registration number 05537789 Principal office and registered Smethwick Heritage Centre office Victoria Park Lodge High Street Smethwick West Midlands B66 3NJ

The trustees

Mr R Baldwin Mr C Sutton Mr P Allen Ms M Bodfish Mr G Carpenter Ms B Fleming (Resigned 28 September 2023) Mr A Dowse (Resigned 24 February 2023) Ms B Fleming (Resigned 28 September 2023) Ms M Nori (Resigned 4 August 2023) Ms McLachlan (Appointed 28 September 2023) Ms Allcock (Appointed 28 September 2023)

Company secretary

Mr Christopher Sutton

Independent examiner HAQ & CO Chartered Certified Accountants

1

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2023

Structure, governance and management

Nature of governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited Company, limited by Guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of trustees

The Trustees have considered the skills needed with regards to the governance of Smethwick Heritage Centre Trust and regularly review this in relation to the Trustees in post. Smethwick Heritage Centre Trust actively seek new Trustees where they will bring additional expertise that will be of benefit. A third of Trustees stand down each year at the AGM and are eligible for re-election by the membership along with new candidates. All Trustees are provided with literature outlining their responsiblities and are briefed through introductory meetings about the organisation and their role before they start.

Organisational Structure

A committee of Trustees, who meet regularly, at least quarterly,is in overall charge of the Charity. Supervision of specialist activities is delegated to a sub-committee as appropriate.

Objectives and activities

The object of the Charity and the principal activity of the Company is to establish and maintain a Heritage Centre in Smethwick in the Metropolitan Borough of Sandwell and to advance the education of the public, including children about the history of Smethwick.

In addition, we have developed the Centre as a Community Hub, helping to reduce social isolation by using the facilites of The Centre to encourage attendance at events that bring people together and by helping those that struggle to deal with the internet, computers, and smart phones in dealing with everyday matters.

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

2

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2023

Achievements and performance

Significant activities

The events organised by The Centre were well attended, these included Roadshows both at The Centre and at offsite venues which focused on photographic and item displays showing Smethwick's civic and industrial heritage. In addition, community events were also held in part aiming to help with community cohesion.

We continued our focus on becoming self-sustainable and with the help of income from events, friends of The Centre membership and merchandise sales we continue to move towards realising this objective.

We thank our advertisers and supporters, and in particular Hadleys, for their time and efforts on our behalf. We must also thank our volunteers, who enable us to meet our objectives and keep The Centre operational.

Public Benefit

As required:

The trustees confirm that they have complied with the requirements of section 17 of The Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

The trustees' annual report and the strategic report were approved on 11 September 2024 and signed on behalf of the board of trustees by:

Mr R Baldwin Trustee

3

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Independent Examiner's Report to the Trustees

Year ended 31 December 2023

I report to the trustees on my examination of the financial statements of Smethwick Heritage Centre Trust ('the charity') for the year ended 31 December 2023.

Responsibilities and basis of report

'Respective responsibilities of trustees and examiner' or 'Responsibilities and basis of report' in the 2017 Directions report. As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of the company 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 your charity’s accounts 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(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

HAQ & CO Chartered Certified Accountants Independent Examiner

8 Shaw Park Business Village Shaw Road Wolverhampton WV10 9LE

11 September 2024

4

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2023

2023 2023 2022
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 48,290 48,290 29,309
Charitable activities 6 10,921 10,921 14,051
Other trading activities 7 2,062 2,062 1,030
---------------------------- ---------------------------- ----------------------------
Total income 61,273 61,273 44,390
============================ ============================ ============================
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies 8 46,433 46,433 39,073
Expenditure on charitable activities 9,10 16,368 16,368 16,535
---------------------------- ---------------------------- ----------------------------
Total expenditure 62,801 62,801 55,608
============================ ============================ ============================
---------------------------- ---------------------------- ----------------------------
Net expenditure and net movement in funds (1,528) (1,528) (11,218)
============================ ============================ ============================
Reconciliation of funds
Total funds brought forward 140,330 140,330 151,548
-------------------------------- -------------------------------- --------------------------------
Total funds carried forward 138,802 138,802 140,330
================================ ================================ ================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 16 form part of these financial statements.

5

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Statement of Financial Position

31 December 2023

2023 2022
Note £ £
Fixed assets
Tangible fixed assets 15 76,710 91,101
Current assets
Debtors 16 5,079 2,747
Cash at bank and in hand 63,373 54,596
---------------------------- ----------------------------
68,452 57,343
Creditors: amounts falling due within one year 17 6,360 8,114
---------------------------- ----------------------------
Net current assets 62,092 49,229
-------------------------------- --------------------------------
Total assets less current liabilities 138,802 140,330
-------------------------------- --------------------------------
Net assets 138,802 140,330
================================ ================================
Funds of the charity
Unrestricted funds 138,802 140,330
-------------------------------- --------------------------------
Total charity funds 21 138,802 140,330
================================ ================================

For the year ending 31 December 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 11 September 2024, and are signed on behalf of the board by:

Mr R Baldwin Trustee

The notes on pages 7 to 16 form part of these financial statements.

6

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 December 2023

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Smethwick Heritage Centre, Victoria Park Lodge, High Street, Smethwick, West Midlands, B66 3NJ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

8

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property - Straight line Fixtures and fittings - Straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

9

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Impairment of fixed assets (continued)

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

10

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Financial instruments (continued)

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

The trustees are also directors and members of the Company and have each undertaken to contribute up to a £1 to the assets of the Company in the event of winding up.

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Donations
Donations 8,120 8,120 8,181 8,181
Donations type 2 169 169
Legacies
Legacies type 1 1,000 1,000
Gifts
Gift Aid tax reclaimed 3,504 3,504 4,221 4,221

11

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

5. Donations and legacies (continued)

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Grants
Grants - Government UK 24,309 24,309 2,667 2,667
Subscriptions
Subscriptions 11,188 11,188 14,240 14,240
---------------------------- ---------------------------- ---------------------------- ----------------------------
48,290 48,290 29,309 29,309
============================ ============================ ============================ ============================
6. Charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Sale of goods/services as part of
direct charitable activities 7,522 7,522 12,400 12,400
Exceptional income from charitable
activities 3,399 3,399 1,651 1,651
---------------------------- ---------------------------- ---------------------------- ----------------------------
10,921 10,921 14,051 14,051
============================ ============================ ============================ ============================
7. Other trading activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Sponsorships 2,062 2,062 1,030 1,030
======================= ======================= ======================= =======================
8. Costs of raising donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Costs of raising donations and
legacies - Donations 46,433 46,433 39,073 39,073
============================ ============================ ============================ ============================
9. Expenditure on charitable activities by fund type
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Direct Costs 16,368 16,368 16,535 16,535
============================ ============================ ============================ ============================

12

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

10. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly 2023 2022
£ £ £
Direct Costs 16,368 16,368 16,535
============================ ============================ ============================
11. Net expenditure
Net expenditure is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible fixed assets 15,560 15,560
============================ ============================
12. Independent examination fees
2023 2022
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,300
======================= ==============

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as The total staff costs and employee benefits for the reporting period are analysed as follows:
2023 2022
£ £
Wages and salaries 19,637 19,284
Employer contributions to pension plans 673 391
---------------------------- ----------------------------
20,310 19,675
============================ ============================
The average head count of employees during the year was 1 (2022: 1). The average The average head count of employees during the year was 1 (2022: 1). The average number of
full-time equivalent employees during the year is analysed as follows:
2023 2022
No. No.
Number of staff 1 1
============== ==============

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

14. Trustee remuneration and expenses

13

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

15. Tangible fixed assets

Long
leasehold Fixtures and
property fittings Total
£ £ £
Cost
At 1 January 2023 315,836 43,516 359,352
Additions 1,169 1,169
-------------------------------- ---------------------------- --------------------------------
At 31 December 2023 315,836 44,685 360,521
================================ ============================ ================================
Depreciation
At 1 January 2023 228,665 39,586 268,251
Charge for the year 14,528 1,032 15,560
-------------------------------- ---------------------------- --------------------------------
At 31 December 2023 243,193 40,618 283,811
================================ ============================ ================================
Carrying amount
At 31 December 2023 72,643 4,067 76,710
================================ ============================ ================================
At 31 December 2022 87,171 3,930 91,101
================================ ============================ ================================
16. Debtors
2023 2022
£ £
Trade debtors 1,822 269
Prepayments and accrued income 1,063 1,229
Other debtors 2,194 1,249
----------------------- -----------------------
5,079 2,747
======================= =======================
17. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 562 1,268
Accruals and deferred income 5,797 6,758
Social security and other taxes 87
Other creditors 1 1
----------------------- -----------------------
6,360 8,114
======================= =======================
18. Deferred income
2023 2022
£ £
At 1 January 2023 5,458 7,938
Amount released to income (961) (2,480)
----------------------- -----------------------
At 31 December 2023 4,497 5,458
======================= =======================

14

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

19. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £673 (2022: £391).

20. Government grants

The amounts recognised in the financial statements for government grants are as follows:

2023 2022
£ £
Recognised in creditors:
Deferred government grants due within one year (961) (2,480)
============== =======================

21. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 January 20 31 Decembe
23 Income Expenditure r 2023
£ £ £ £
General funds 140,330 61,273 (62,801) 138,802
================================ ============================ ============================ ================================
At At
1 January 20 31 December
22 Income Expenditure 2022
£ £ £ £
General funds 151,548 44,390 (55,608) 140,330
================================ ============================ ============================ ================================

22. Analysis of net assets between funds

Unrestricted Total Funds
Funds 2023
£ £
Tangible fixed assets 76,710 76,710
Current assets 68,452 68,452
Creditors less than 1 year (6,360) (6,360)
-------------------------------- --------------------------------
Net assets 138,802 138,802
================================ ================================
Unrestricted Total Funds
Funds 2022
£ £
Tangible fixed assets
Current assets
Creditors less than 1 year
-------------- --------------
Net assets
============== ==============

15

Smethwick Heritage Centre Trust

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

23. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

In more than five years 2023 2022
£ £
3000 3000

The trust is committed to annual notional rental payments of £3000 in respect of the Victoria Park lodge property, under a lease expiring more than five years from the balance sheet date. However, the lessor has agreed to make annual notional grants to the Trust of an equal amount.

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