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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 05845477 (England and Wales) REGISTERED CHARITY NUMBER: 1121420

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Merstham Community Facility Trust

Balanced Creations Ltd

Merstham Community Facility Trust

Contents of the Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 13

Merstham Community Facility Trust

Report of the Trustees

for the Year Ended 31 December 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Merstham Community Facility Trust seeks to support the residents of Merstham, and surrounding areas, in improving the quality of their lives, as individuals, families and the wider community. This can include social and economic welfare; education; personal skills and life opportunities. As part of this the Trust seeks to maintain and develop a physical location/venue which provides a place for people to associate together; for services to be provided from and as a resource for people to meet, work and/or enjoy recreational activities.

The purpose of Merstham Community Facility Trust is set out in our Memorandum & Articles of Association.

This was reviewed during 2019 and the Objectives were amended to reflect the fact that it has now obtained the community facilities it had aspired to obtain. It's Objectives are as follows:

1.1 to further or benefit the residents of Merstham and Surrey (the "local community") and the neighbourhood, without distinction of sex, sexual orientation, race or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the residents;

1.2 to maintain the community centre currently known as the Merstham Community Hub (the "Merstham Hub") and to maintain, manage and develop the facilities available at the Merstham Hub, whether alone or in cooperation with any local authority or other person or body, in furtherance of these Objects; and

1.3 to work with other charitable organisations with common charitable objects to facilitate the development of similar initiatives in the local community and in other areas, in furtherance of these Objects.

Significant activities

The Merstham Community Facilities Trust is dedicated to supporting the community to achieve their social and economic goals. In performing this vital role within a community officially designated as deprived, we seek to:

  1. Challenge local deprivation through the support we give to residents and local organisations

  2. Strengthen the local community by providing facilities that bring people together

  3. Promote digital inclusion by giving training and access to information technology

Translating those principles into everyday activities, the Trust organises, facilitates, and provides:

  1. A range of activities identified by the local community as being beneficial to individuals, groups of people and/or the wider community. These include things like a Repair Café, a Community Allotment, a Fishing Group, a group who maintain and improve local recreation areas.

  2. Regular adult education, recreation and leisure time courses

  3. Meeting facilities to groups whose aims are to respond to the social and economic needs of the local community

Public benefit

Our main activities and who we try to help are described above. All our charitable activities focus on the reduction of social inequality and the promotion of personal and community capacity and are undertaken to further our charitable purposes for the public benefit.

Page 1

Merstham Community Facility Trust

Report of the Trustees

for the Year Ended 31 December 2022

OBJECTIVES AND ACTIVITIES

Volunteers

The Trust relies heavily on the volunteers who give freely of their time and professionalism. Indeed, without the active involvement of our volunteers the trust would effectively cease to function. We take this opportunity to thank them for all the hard work they give in support of the local community.

During 2022 we have greatly increased the number of volunteers involved in our work, and the variety of volunteer opportunities available. We had 24 volunteers in March 2020 and 80 volunteers in March 2022. This was largely due to the funding provided by the National Lottery and the energy and efforts of our Volunteer Coordinator, paid for by Lottery funding.

STRATEGIC REPORT

Achievement and performance

Charitable activities

Since securing our current premises in December 2018 we have continued to build on the benefits of working out of a purpose-built Community Hub, providing an appropriate and welcoming environment for the delivery of our services. However, the lockdown(s) and other restrictions caused by Covid-19 severely curtailed this during 2020 and 2021. However, we have made a strong recovery during 2022, increasing our room hires and associated income, increasing the number of volunteers engaged in our work and restoring, and increasing, the range of activities and services we provide and/or facilitate for local residents.

The Community Centre Manager and the Volunteer Coordinator (posts funded through the National Lottery Community Fund) are now well established in post and are contributing enormously to the services provided by MCFT. The Volunteer Coordinator, supported by the Community Centre Manager and other colleagues, has achieved and in many cases exceeded the initial targets agreed through the funding arrangement. However, the Lottery funding is due to end around March 2023 and we will need to secure other funding in we are to be able to continue employing these 2 essential staff roles.

Our People's Health Trust funded work has also been continuing and developing very positively, with established projects continuing wherever possible, and newer projects being active. However, the People's Health Trust informed us, during 2022, that they would be ending the funding for their Local Conversation projects across the UK, including ourselves. They have given ample notice, around 15 months, and the funding will end in December 2023. Again, this presents a challenge for the charity, as the work funded by them has been transformational for individuals, families and the general local community. If it were to end then this would impact quite negatively across the community. We have been working closely with the People's Health Trust to develop a Sustainability Plan, to ensure that as many of the projects funded by them are able to continue without their financial support. This is proving challenging, but we are optimistic that a number of the projects will continue.

Financial review

Financial position

Our staffing costs are largely paid through the restricted grants we have received, from the People's Health Trust and the National Lottery Community Fund. This funding also supports the costs of the Local Conversation projects run through the People's Health Trust program, and the volunteer support costs are largely met by the National Lottery funding. We are extremely grateful to both these funders for the support they have offered to date, which has had a significant impact on the wellbeing of our local community and many of the individuals and families within that community.

We are, in 2022, in quite a strong financial position, able to meet our operating costs and with reserves to enable to continue operations for around 6 months if all external funding sources disappeared. However, as noted above, our financial security will be challenged in the year or two ahead, and we are prioritising securing alternate funding to ensure we are able to maintain a core staff team, sufficient to continue the successful community support and development we have developed over the last few years and, hopefully, to enable us to respond to new and emerging community needs.

Reserves policy

Our Reserves Policy states: Merstham Community Facility Trust shall hold reserves equal to the core running costs of the following six months operation. As noted above, we do now currently hold reserves at this level.

Page 2

Merstham Community Facility Trust

Report of the Trustees

for the Year Ended 31 December 2022

STRATEGIC REPORT

Financial and risk management objectives and policies

We anticipate that now we have developed a good level of awareness and reputation regarding the rooms we have available to rent at Merstham Hub, we will continue to generate sufficient income to cover our core costs (e.g. rent, insurance, incidental costs) and remain self-sufficient in this core activity.

Furthermore, and importantly, we will be seeking further funding from grant makers and sponsors to enable us to secure and consolidate the community support and development work we have successfully built up over the last few years. We are also keen develop further services and opportunities based in and around Merstham Hub. These will be offered as and when we can meet the true costs of each initiative, for at least a specified period.

This approach in which we secure our core costs through rental income and then deliver additional services and resources to the community as and when funding is successfully obtained, will provide us with a viable financial base going forward. The trustees are confident that the charity is a going concern for the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The organisation is a charitable company limited by guarantee, incorporated on 13th June 2006 and registered as a charity on 30th October 2007. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Our governing documents were reviewed during 2019 and changes agreed with the Charity Commission and Companies House.

Recruitment and appointment of new trustees

Trustees are selected through their initial offer to volunteer as a trustee and then selection interview by a number of existing trustees. The confirmation of appointment of an individual as a trustee is formalised through voting at a trustee meeting.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

05845477 (England and Wales)

Registered Charity number

1121420

Registered office

Merstham Community Hub, 2A-2B Portland Drive, Merstham, Redhill, Surrey, RH1 3HY

Trustees

C N Spragg Chairman Dr D J Aslett Trustee M A Brunt Trustee R W Gardner Trustee (resigned 7.3.23) I White Trustee K Lee Trustee

Independent Examiner

DT Associates LLP for Balanced Creations Ltd, 27 Old Gloucester Street, London, WC1N 3AX

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

................................................................................. C N Spragg - Trustee

Sep 21, 2023

Page 4

Independent Examiner's Report to the Trustees of Merstham Community Facility Trust

Independent examiner's report to the trustees of Merstham Community Facility Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.

Responsibilities and basis of 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 - matters of concern identified

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination. However, in carrying out my examination it is clear the charity has a significant reliance on volunteers and other non-finance professional staff to record and maintain the accounting records. During my examination it was clear that several transactions required review and reclassification during the year, and this was not always completed in a timely manner. I note there has been a change in personnel since the reporting period and I have further recommended the engagement of a professional bookkeeper by the charity to ensure the on-going integrity and timeliness of the accounting records.

I confirm that no other matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

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

  2. the accounts do not accord with those records; or

  3. the accounts 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; and

  4. the accounts 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 confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.

Dennis O'Higgins AFA MIPA DChA CMgr FCMI FRSA The Institute of Financial Accountants (IFA) DT Associates LLP for Balanced Creations Ltd 27 Old Gloucester Street London WC1N 3AX Date: ............................................. Sep 21, 2023

Page 5

Merstham Community Facility Trust

Statement of Financial Activities

for the Year Ended 31 December 2022

31.12.22 31.12.21
Unrestricted Restricted Total Total
funds funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 1,840 133,044 134,884 226,445
Other trading activities 3 24,337 - 24,337 27,338
Investment income 4 430 - 430 -
Total 26,607 133,044 159,651 253,783
EXPENDITURE ON
Charitable activities
Charitable Activities 39,354 147,133 186,487 172,932
NET INCOME/(EXPENDITURE) (12,747) (14,089) (26,836) 80,851
RECONCILIATION OF FUNDS
Total funds brought forward 56,337 142,264 198,601 117,750
TOTAL FUNDS CARRIED FORWARD 43,590 128,175 171,765 198,601

The notes form part of these financial statements

Page 6

Merstham Community Facility Trust

Balance Sheet

31 December 2022

31.12.22 31.12.21
Unrestricted Restricted Total Total
funds funds funds funds
Notes £ £ £ £
FIXED ASSETS
Tangible assets 9 6,761 - 6,761 2,889
CURRENT ASSETS
Cash at bank 57,581 188,999 246,580 212,592
CREDITORS
Amounts falling due within one year 10 (20,752) - (20,752) (16,880)
NET CURRENT ASSETS 36,829 188,999 225,828 195,712
TOTAL ASSETS LESS CURRENT LIABILITIES 43,590 188,999 232,589 198,601
ACCRUALS AND DEFERRED INCOME 12 - (60,824) (60,824) -
NET ASSETS 43,590 128,175 171,765 198,601
FUNDS 13
Unrestricted funds 43,590 56,337
Restricted funds 128,175 142,264
TOTAL FUNDS 171,765 198,601

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

September 20th 2023

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

............................................. C N Spragg - Trustee

Sep 21, 2023

The notes form part of these financial statements

Page 7

Merstham Community Facility Trust

Notes to the Financial Statements

for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

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

Expenditure

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

Tangible fixed assets

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

Taxation

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

Fund accounting

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

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

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

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
31.12.22 31.12.21
£ £
Donations 1,901 26,291
Grants 132,983 200,154
134,884 226,445
Restricted donations include the following donations over £15,000:
2022 2021
Donor £ £
National Lottery Community Fund 79,104 79,349
People Health Trust 33,367 120,805

continued...

Page 8

Merstham Community Facility Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

3. OTHER TRADING ACTIVITIES

3. OTHER TRADING ACTIVITIES
31.12.22 31.12.21
£ £
Rents Received 23,868 26,173
Other Trading Income 469 1,165
24,337 27,338
4. INVESTMENT INCOME
31.12.22 31.12.21
£ £
Deposit account interest 430 -
5. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.12.22 31.12.21
£ £
Depreciation - owned assets 2,122 1,423

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

7. STAFF COSTS

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

31.12.22 31.12.21
Employees 5 5
No employees received emoluments in excess of £60,000.

8.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
4,144
Other trading activities
26,694
Total
30,838
EXPENDITURE ON
Charitable activities
Charitable Activities
21,685
Restricted
funds
£
222,301
644
222,945
151,247
Total
funds
£
226,445
27,338
253,783
172,932

continued...

Page 9

Merstham Community Facility Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Unrestricted
Restricted
funds
funds
£
£
NET INCOME
9,153
71,698
RECONCILIATION OF FUNDS
Total funds brought forward
47,184
70,566
TOTAL FUNDS CARRIED FORWARD
56,337
142,264
9.
TANGIBLE FIXED ASSETS
Fixtures
and
Computer
fittings
equipment
£
£
COST
At 1 January 2022
-
48,502
Additions
5,994
-
At 31 December 2022
5,994
48,502
DEPRECIATION
At 1 January 2022
-
45,613
Charge for year
699
1,423
At 31 December 2022
699
47,036
NET BOOK VALUE
At 31 December 2022
5,295
1,466
At 31 December 2021
-
2,889
Total
funds
£
80,851
117,750
198,601
Totals
£
48,502
5,994
54,496
45,613
2,122
47,735
6,761
2,889

continued...

Page 10

Merstham Community Facility Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£ £
Trade creditors - 497
Social security and other taxes - 646
Other creditors - 837
Accrued expenses 20,752 14,900
20,752 16,880
11. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.22 31.12.21
£ £
Within one year 6,580 6,580
Between one and five years 26,320 26,320
In more than five years 6,580 13,160
39,480 46,060
12. ACCRUALS AND DEFERRED INCOME
31.12.22 31.12.21
£ £
Accruals and deferred income 60,824 -
13. MOVEMENT IN FUNDS
Net
movement At
At 1.1.22 in funds 31.12.22
£ £ £
Unrestricted funds
Unrestricted Funds 56,337 (12,747) 43,590
Restricted funds
Restricted Funds 142,264 (14,089) 128,175
TOTAL FUNDS 198,601 (26,836) 171,765

continued...

Page 11

Merstham Community Facility Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

13. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted Funds
Restricted funds
Restricted Funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
Unrestricted Funds
Restricted funds
Restricted Funds
TOTAL FUNDS
Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
Unrestricted Funds
Restricted funds
Restricted Funds
TOTAL FUNDS
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
26,607
(39,354)
(12,747)
133,044
(147,133)
(14,089)
159,651
(186,487)
(26,836)
Net
movement
At
At 1.1.21
in funds
31.12.21
£
£
£
47,184
9,153
56,337
70,566
71,698
142,264
117,750
80,851
198,601
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
30,838
(21,685)
9,153
222,945
(151,247)
71,698
253,783
(172,932)
80,851

continued...

Page 12

Merstham Community Facility Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

13. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
Unrestricted Funds
Restricted funds
Restricted Funds
TOTAL FUNDS
Net
movement
At
At 1.1.21
in funds
31.12.22
£
£
£
47,184
(3,594)
43,590
70,566
57,609
128,175
117,750
54,015
171,765

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

Unrestricted funds
Unrestricted Funds
Restricted funds
Restricted Funds
TOTAL FUNDS
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
57,445
(61,039)
(3,594)
355,989
(298,380)
57,609
413,434
(359,419)
54,015

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

Page 13

Merstham Accounts 2022 - For Signature

Final Audit Report

2023-09-21

Created: 2023-09-21 By: Dennis OHiggins (dennis.ohiggins@hotmail.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAdd01-AIWcLYHUsf7OxqV3mZeGVcbMvKN

"Merstham Accounts 2022 - For Signature" History

Document created by Dennis OHiggins (dennis.ohiggins@hotmail.co.uk)

2023-09-21 - 7:39:27 AM GMT- IP address: 86.15.21.146

Document emailed to Chris Spragg (chris.spragg@mcft.org.uk) for signature

2023-09-21 - 7:42:26 AM GMT

Document emailed to Dennis O'Higgins (dohiggins@dtassociates.co.uk) for signature 2023-09-21 - 7:42:26 AM GMT

Email viewed by Dennis O'Higgins (dohiggins@dtassociates.co.uk)

2023-09-21 - 7:42:51 AM GMT- IP address: 86.15.21.146

Email viewed by Chris Spragg (chris.spragg@mcft.org.uk)

2023-09-21 - 7:44:54 AM GMT- IP address: 104.47.11.254

Document e-signed by Chris Spragg (chris.spragg@mcft.org.uk)

Signature Date: 2023-09-21 - 7:47:29 AM GMT - Time Source: server- IP address: 82.7.153.93

Document e-signed by Dennis O'Higgins (dohiggins@dtassociates.co.uk) Signature Date: 2023-09-21 - 7:50:13 AM GMT - Time Source: server- IP address: 86.15.21.146

Agreement completed.

2023-09-21 - 7:50:13 AM GMT