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2024-07-31-accounts

BRECKON HILL COMMUNITY ENTERPRISE (Limited by guarantee-not having a share capital)

TRUSTEES’ REPORT AND STATEMENT OF ACCOUNTS

YEAR ENDED 31[ST] JULY 2024

REGISTERED CHARITY: 1125513

COMPANY NUMBER: 06590349

BRECKON HILL COMMUNITY ENTERPRISE

REPORT OF THE TRUSTEES

YEAR ENDED 31[ST] JULY 2024

The Trustees present their report and the audited financial statements of the charity for the year ended 31[st] July 2024. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 published on 16 July 2014 (as amended by Update Bulletin 1 published on 2 February 2016) .

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name Breckon Hill Community Enterprise Company Number 06590349 Charity Number 1125513

DIRECTORS AND TRUSTEES

The directors (who are trustees of the charity) who served during the period were:-

Mrs Jennifer Dowsett Chair Mrs Shirley Robinson Treasurer Mr Arthur West Mrs Salma Dinn Mr Ian Mawson

COMPANY SECRETARY

Rotated between members.

PROJECT MANAGER

Amanda Buck

REGISTERED OFFICE

Breckon Hill Community Centre Breckon Hill Road Middlesbrough TS4 2DS

INDEPENDENT EXAMINER

Mr J Gresham BANKERS Gresham & Gale Co-operative Bank PLC 14 Fountain Street Guisborough TS14 6PP

BRECKON HILL COMMUNITY ENTERPRISE (Limited by Guarantee – not having a share capital) REPORT OF THE TRUSTEES (continued) YEAR ENDED 31[st] JULY 2024

STRUCTURE GOVERNANCE AND MANAGEMENT

The organisation is a charitable company limited by guarantee, incorporated on 12[th] May 2008 and registered as a charity on 14[th] October 2008. It started its operations on 1[st] August 2008, when the activities of Breckon Hill Community Association were transferred to the charity.

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.

OBJECTIVES AND ACTIVITIES

The company is a registered charity whose principal objects are:

(1) To further or benefit the community of Middlesbrough and the neighbouring Tees Valley area without distinction of sex, sexual orientation, race, age, disability or political, religious or other opinions, by associating together the said communities and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interest of social welfare for recreation, leisure time occupation with the objective of improving the conditions of life for the community.

(2) To develop the capacity and skills of the community of Middlesbrough and the neighbouring Tees Valley area in such a way that local residents are better able to identify and deal with matters that affect them and so that such residents can participate more fully in society.

(3) In furtherance of these objects, but not otherwise, the trustees shall have power to manage and maintain Breckon Hill Community Enterprise, to establish or secure the establishment of any other community centre and to maintain or manage or co-operate with any statutory authority in the maintenance and management of such centre(s) for activities promoted by the charity in the furtherance of the above objects

ACHIEVEMENTS AND PERFORMANCE

During the year the charity has managed the Community Centre in accordance with its above objects. The trustees have referred to the guidance issued by the Charity Commission on public benefit when reviewing its aims and objectives and looking at its future plans.

BRECKON HILL COMMUNITY ENTERPRISE (Limited by Guarantee – not having a share capital) REPORT OF THE TRUSTEES (continued) YEAR ENDED 31[ST] JULY 2024

FINANCIAL REVIEW

The statement of financial activities on page 5 shows the results for the period.

RESERVES

The trustees have determined that free reserves equivalent to 6 months fixed running costs (£58,000 at present levels) will be required to allow the charity to continue its activities and seek alternative sources of funding, should there be a downturn in funding from current sources. At 31[st] July 2024 free reserves (i.e. those unrestricted reserves not designated or tried up in fixed assets) amounted to £57,001.

RISK REVIEW

The trustees have considered the charity’s exposure to risk and have put in place policies to mitigate those risks. The main risk identified by the trustees is being unable to secure sufficient funding to continue its activities. The reserves policy described above is designed to mitigate the adverse effects of this.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also directors of Breckon Hill Community Enterprise for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees on 13[th] January 2025 and signed on their behalf by:

Mrs S Robinson Trustee

Independent Examiner's Report to the Trustees of Breckon Hill Community Enterprise

I report on the accounts of the company for the year ended 31[st] July 2024 which are set out on pages 5 to 15

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 accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's statement

My examination was carried out in accordance with 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, 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 accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

Mr J Gresham Gresham & Gale

14 Fountain Street Guisborough TS14 6PP

BRECKON HILL COMMUNITY ENTERPRISE

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31[ST] JULY 2024

2024 2023
Unrestricted Restricted Total Total
Note Funds Funds Funds Funds
£ £ £ £
INCOME
From charitable activities
Grants receivable 2 23,750 64,625 88,375 78,497
Fundraising 4,352 - 4,352 568
Miscellaneous - - - -
From other trading activities
Room hire and rent 30,302 - 30,302 23,067
Bank interest 211 - 211 77
Eco shop 2,586 - 2,586 1,874
Photocopies/telephone 309 - 309 360
Donations 338 - 338 -
Wages recharged - - - -
────── ────── ────── ──────
TOTAL INCOME 61,848 64,625 126,473 104,443
════ ════ ════ ════
EXPENDITURE
On charitable activities 44,957 71,088 116,045 137,083
────── ────── ────── ──────
3 44,957 71,088 116,045 137,803
════ ════ ════ ════
Net income/(expenditure) 4 16,891 (6,463) 10,428 (32,640)
Transfers 6 9,740 (9,740) - -
────── ────── ────── ──────
Net movement in funds 26,631 (16,203) 10,428 (32,640)
Fund balances brought forward 44,882 65,058 109,940 142,580
Transfer - - - -
────── ────── ────── ──────
FUND BALANCES CARRIED
FORWARD 10 71,513 48,855 120,368 109,940
════ ════ ════ ════

The notes on pages 7 to 15 form part of these accounts.

BRECKON HILL COMMUNITY ENTERPRISE

BALANCE SHEET

AS AT 31[ST] JULY 2024

Note 2024 2023
£ £ £ £
CURRENT ASSETS
Debtors and prepayments 7 8,508 7,774
Cash at bank and in hand 114,710 104,162
______ ______
123,218 111,936
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR 8 2,850 1,996
───── ─────
NET CURRENT ASSETS 120,368 109,940
────── ──────
NET ASSETS 120,368 109,940
════ ════
UNRESTICTED FUNDS
General Fund 57,001 30,370
Designated Funds 14,512 14,512
────── ──────
71,513 44,882
RESTRICTED FUNDS 48,855 65,058
───── ──────
TOTAL FUNDS 10 120,368 109,940
════ ════

The directors are satisfied that the company was entitled to exemption from audit under section 477 of the Companies Act 2006 and that members have not required an audit in accordance with section 476.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Trustees on 13[th] January 2025 and signed on their behalf by:

Mrs S Robinson Trustee/director

The notes on pages 7 to 15 form part of these accounts

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

1. ACCOUNTING POLICIES

(a) General information and basis of preparation

Breckon Hill Community Enterprise is a company limited by guarantee and registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities relate to the management of a Community Centre as described on page 2.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2016 and UK Generally Accepted Practice as it applies from 1 January 2015.

The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The charity adopted SORP (FRS 102) in the current year but this has not affected the financial position or performance.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

1. ACCOUNTING POLICIES

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Investment income is earned through holding cash in a deposit account and is recognised when it is earned.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. All direct costs relate to the charity’s charitable activities.

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

1. ACCOUNTING POLICIES

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 3.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(f) Tangible fixed assets

The charity currently has no tangible fixed assets.

(g) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(h) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

1. ACCOUNTING POLICIES

(i) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

(j) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(k) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

2. GRANTS RECEIVABLE

2024 2023
Unrestricted Restricted Total Total
£ £ £ £
MBC Levelling up - - - 5,814
Ballinger Trust - 20,000 20,000 20,000
Sport England - - - 5,000
Eco shop - 1,500 1,500 636
Mental Health Partnership 23,750 - 23,750 3,750
Food and Friendship - - - 884
Youth Provision - 7,136 7,136 6,113
Middlesbrough Community Learning - 7,640 7,640 5,810
Middlesbrough First - - - 19,249
Carers - 5,500 5,500 -
Middlesbrough Council HAF grant - 22,849 22,849 11,241
_____ _____ _____ _____
23,750
_____
64,625
_____
88,375
_____
78,497
_____

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

3. TOTAL RESOURCES EXPENDED

OTAL RESOURCES EXPENDED
Charitable Governance 2024 2023
Activities Costs Total Total
Directly Allocated Costs £ £ £ £
Staff Costs 13,224 - 13,224 32,058
Wages for holiday cover 3,639 - 3,639 2,016
Eco shop 2,522 - 2,522 2,798
Travel & training 248 - 248 -
Independent Examination - 2,040 2,040 2,478
Payroll service costs 564 - 564 852
Youth Project 3,599 - 3,599 3,818
Brereton Gardens repaid 390 - 390 -
HAF 17,111 - 17,111 14,100
Carers 468 - 468 -
Refurbishment costs 2,496 - 2,496 -
Middlesbrough school of light 650 - 650 -
Middlesbrough 1st - - - 15,239
Food and Friendship - - - 680
Community Learning 9,440 - 9,440 3,600
Awards for All - - - 5,247
Sundry expenses 1,219 - 1,219 1,007
Support Costs allocated on
the basis of usage
Salaries 33,756 1,777 35,533 35,533
Premises costs 18,706 985 19,691 12,360
Postage, stationery & advertising 563 63 626 883
Telephone & internet 1,014 112 1,126 2,026
Insurance 1,117 124 1,241 1,097
Peninsula consultancy 196 22 218 1,291
______ ______ ______ ______
TOTAL RESOURCES EXPENDED 110,922
______
5,123
______
116,045
______
137,083
______

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

4. NET INCOMING RESOURCES FOR THE YEAR

This is stated after charging:
Trustees’ remuneration & expenses
Independent Examiner’s Fee
5.
EMPLOYEE EMOLUMENTS
2024
£
-
2,040
______
2023
£
-
2,478
______

There were no employees whose remuneration defined for taxation purposes amounted to greater than £60000.

er than £60000.
2024 2023
£ £
Wages and Salaries 47,842 65,362
Social Security costs 3,742 5,249
Employment allowance (3,742) (4,290)
Employers pension 915 1,270
───── ─────
48,757 67,591
════ ════

The average number of employees during the year was 3 (2023: 3).

6. TRANSFERS

The transfers relate to expenditure on projects which had been met out of general funds.

7 . DEBTORS

2024 2023
£ £
Prepayments 1,506 1,104
Other debtors 7,002 6,670
──── ────
8,508 7,774
════ ════

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

8. CREDITORS: Amounts falling due within one year

2024 2023
£ £
Social security and other taxes 762 -
Accruals 2,088 1,800
Deferred income - -
Other creditors - 196
──── ────
2,850 1,996
════ ════

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2024
Unrestricted Restricted Total
Funds Funds Funds
£ £ £
Current Assets 74,363 48,855 123,218
Current Liabilities (2,850) - (2,850)
───── ───── ─────
71,513 48,855 120,368
════ ════ ════

BRECKON HILL COMMUNITY ENTERPRISE

NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2024

10. MOVEMENTS IN FUNDS Other
Opening Incoming Resources Transfers Closing
Balance Resources Expended Balance
£ £ £ £ £
Restricted Funds
Tudor Trust 20,000 - (20,000) - -
Ballinger– Manager’s salary 21,199 20,000 (15,533) - 25,112
Willian Charity Trust 1,139 - - (1,139) -
Carers - 5,500 (468) - 5,032
Youth Provision 1,679 7,136 (3,599) 462 5,678
Refurbishment Grants 2,496 - (2,496) - -
Food and Friendship 204 - - (204) -
Middlesbrough community learning 2,210 7,640 (9,440) 510 920
Middlesbrough council Brereton gardens390 - (390) - -
Eco shop 400 1,500 (1,400) - 500
Middlesbrough Council covid grant 168 - - (168) -
Greggs Holding account 100 - - (100) -
Middlesbrough school of light 650 - (650) - -
Middlesbrough council Jubilee 310 - - (310) -
Middlesbrough council HAF 14,113 22,849 (17,112) (8,237) 11,613
______ ______ ______ ______ _____
Total Restricted Funds 65,058 64,625 (71,088) (9,740) 48,855
Unrestricted Funds
General funds 30,370 61,848 (44,957) 9,740 57,001
Designated Funds
Salaries 5,590 - - - 5,590
Reorganisation 8,922 - - - 8,922
_ _ _ ______ ______
Total Funds 109,940 126,473 (116,045) - 120,368
═════ ═════ ═════ ════ ════

Purposes of Restricted Funds

The Ballinger grant is towards the manager’s salary.

Purpose of Designated Funds

The salaries fund relates to money set aside for payment of the manager’s salary to the extent that it exceeds any funding available for this purpose.

The reorganisation fund has been set aside in the event that the trustees decide that the charity will need to review its mode of operation should funding continue to be difficult to find.