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← Bernard's Acre

2023-12-31-accounts

Charity registration number 1131269

Company registration number 6932120 (England and Wales)

BERNARD'S ACRE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

BERNARD'S ACRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A Heron
Mrs R J Sowden
Mr P T Sowden
Mrs I Mathieson
Mrs R Heron
Mr P J Hawes
Mr C R Eggins
Charity number 1131269
Company number 6932120
Registered office 15-17 Southernhay East
Exeter
Devon
EX1 1QE
Independent examiner Mr A Hemmings BA (Hons) FCA CTA
Simpkins Edwards LLP
The Summit
Woodwater Park
Pynes Hill
Exeter
Devon
EX2 5WS

BERNARD'S ACRE

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 14

BERNARD'S ACRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

During the year, Rosemary Sowden was responsible for day to day administration of property bookings, administration and finance. Paul Sowden was responsible for property matters.

During the year the Charity employed one part time person for 20 hours per week - 12 hours per week as caretaker plus 8 hours per week to cover the day-to-day administration of the centre bookings process.

The Focus of our Work

Our main objective for the period were to promote the evangelical Christian faith. We meet these objectives by letting out the premises at Bernard’s Acre to church affiliated and other Christian groups and individuals.

Purposes and Aims

Our charity’s purposes as set out in the objects contained in the company’s memorandum of association are:

The aims of our charity are to promote the evangelical Christian faith by providing premises for use by church affiliated and other groups that respect our values. These premises are known as Bernard’s Acre and are located at Belstone, Okehampton, Devon. We are an inclusive Christian charity. Everyone is welcome to use our facilities, whether they are a person of faith or not.

The charity is a successor body to the unincorporated charitable trust known as The Bernard’s Acre Trust established by deed executed on 10 January 1981. On 1 October 2009, the Trust transferred the freehold property at Bernard’s Acre and its entire net assets to the charity. The charity commenced the activities previously undertaken by the Trust on 1 October 2009. In 5th June 2017 Bernard’s Acre Trust was linked to the Trust by the Charity Commission.

Ensuring our Work Delivers Our Aims

When reviewing our aims this year the Trustees have considered the Charity Commission’s published guidance on public benefit. The aim of our charity is to provide comfortable, affordable, accessible accommodation for use by families, church affiliated groups and other groups that resect our values.

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the period, the success of the key activities and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remain focused on our stated purposes. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

How our Activities Deliver Public Benefit

Our main activities and who we try to help are described below. All our charitable activities focus on the promotion of the evangelical faith by the provision of suitable premises for hire and are undertaken to further our charitable purposes for the public benefit.

BERNARD'S ACRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance

Who used and benefited from our Services

Bernard’s Acre was let for 90% of weekends during 2023 which is our primary letting pattern. The occupancy rate during the November to March low season remained steady at 39% with the mid season also steady at 76%. The Summer holiday AND Christmas high season rate remained at nearly 90%. The impact of our work goes far beyond the individuals who stay at Bernard’s Acre. The bookings returned to a more normal pattern, which included church based groups and activities, including youth groups, Educational groups, adult retreats as well as the family groups. Our work also benefits the churches, families and communities to which guests belong with additional income generated by letting to families and groups for holidays during the periods when the centre would otherwise be vacant.

In September the building was closed for a number of weeks mid week to allow the installation of solar panels.

Financial review

The charitable company made an operating surplus in the year of £59,626 (2022 – surplus £12,587).

Total income increased by £53,222 compared to the previous year. The Loraine Trust gifted £50,000 by way of reducing the Charity's loan due to them.

Total expenditure showed an increase of £6,183 compared to the previous years with small increases seen in salary costs and repairs and renewals.

The charitable company’s funds totalled £464,601 at the year-end with net current assets totalling £28,217.

Principal Funding Sources

The principal funding sources for the charity over this year were the letting of Bernard’s Acre and some donations from supporters.

Investment Policy

Aside from retaining a prudent amount in reserves each year most of the charity’s funds are to be spent in the short term concentrating on repayment of long term borrowing and upgrade of the premises in order to reach a carbon neutral position in the long term, so there are no funds for long term investment.

Reserves policy

The directors have examined the charity’s requirements for reserves in light of the main risks to the organisation which would include a significant reduction in lettings income and the liabilities associated with employment of staff. It has established a policy to hold at least 6 months of unrestricted expenditure. At the year-end reserves in 2022 were £51,315 which was in excess of this policy. So the Board spent £23,000 on the installation of solar panels to move Bernard’s Acre towards a carbon neutral position. Reserves this year totalled £28,217 which was in line with this policy.

Budgets for the coming year forecast a net operating profit of £23,992 of which it is proposed up to £12,000 would be earmarked for repayment of the mortgage capital. In addition, £50,000 of the mortgage borrowed from a grant giving Trust was converted into a grant so the sum owed is reduced to £22,000 going into 2024.

Plans for future periods

The charity has a full booking diary for 2023. We are reviewing our marketing strategy in order to maximise the income that can be generated during the low season now the upgrade has been completed allowing letting all year round.

Structure, governance and management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 12th June 2009 and registered as a charity on 21st August 2009. The company was established under a Memorandum of Association which established the objectives and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

BERNARD'S ACRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Directors

The names of persons who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report, are set out on page 1. Mr A Heron

Mrs R J Sowden Mr P T Sowden Mrs I Mathieson Mrs R Heron Mr P J Hawes Mr C R Eggins

Recruitment and appointment of trustees

The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association the directors are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. The directors are also members of the company and the company has no members who are not directors, therefore the Annual General Meeting was deemed to have taken place as part of the meeting of the directors at which the Accounts were presented for approval.

All directors/trustees give their time voluntarily and received no benefits from the charity.

Organisational structure

Bernard’s Acre has a board of directors who meet biannually (or more as required) and are responsible for the strategic direction and policy of the charity. At present the board has seven members from a variety of professional backgrounds relevant to the work of the charity.

Induction and training of trustees

No new trustees were appointed during the year. All trustees have visited Bernard’s Acre and volunteer in practical ways.

Additionally, trustees familiarise themselves with the charity and the context within which it operates, including:

Risk Management

The directors have reviewed the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces.

Mr A Heron Trustee

8 June 2024

BERNARD'S ACRE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BERNARD'S ACRE

I report to the Trustees on my examination of the financial statements of Bernard's Acre (the charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the Trustees of the charity (and also its directors for the purposes of company law) you 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 carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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 that in any material respect:

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

Mr A Hemmings BA (Hons) FCA CTA

for and on behalf of Simpkins Edwards LLP

The Summit Woodwater Park Pynes Hill Exeter Devon EX2 5WS

Dated: 24 June 2024

BERNARD'S ACRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
2
51,663
5,000
Charitable activities
3
50,929
-
Other trading activities
4
221
-
Investments
5
1,133
-
Total income
103,946
5,000
Charitable activities
6
49,320
-
Net income
54,626
5,000
Transfers between funds
5,000
(5,000)
Net movement in funds
59,626
-
Reconciliation of funds:
Fund balances at 1 January 2023
404,975
-
Fund balances at 31 December 2023
464,601
-		 Total
Unrestricted
funds
2023
2022
£
£
56,663
6,380
50,929
48,706
221
228
1,133
410
108,946
55,724
49,320
43,137
59,626
12,587
-
-
59,626
12,587
404,975
392,388
464,601
404,975		 Total
Unrestricted
funds
2023
2022
£
£
56,663
6,380
50,929
48,706
221
228
1,133
410
108,946
55,724
49,320
43,137
59,626
12,587
-
-
59,626
12,587
404,975
392,388
464,601
404,975
55,724
43,137
12,587
-
12,587
392,388
404,975

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

BERNARD'S ACRE

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
13
Net assets
The funds of the charity
Unrestricted funds		 2023
£
3,710
43,912
47,622
19,405		 £
458,384
28,217
486,601
(22,000)
464,601
464,601
464,601		 2022
£
4,811
57,061
61,872
10,557		 £
435,660
51,315
486,975
(82,000)
404,975
404,975
404,975

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 8 June 2024

Mr A Heron Trustee

Company registration number 6932120 (England and Wales)

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Bernard's Acre is a private company limited by guarantee incorporated in England and Wales. The registered office is 15-17 Southernhay East, Exeter, Devon, EX1 1QE.

The liability of each member in the event of winding up is limited to £10.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Equipment costing more than £750 is capitalised.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings The freehold property is stated at estimated market value and is not depreciated Fixtures and fittings 15% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

As a charitable company, Bernard's Acre is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable purposes. No tax charges have arisen in the charity.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Supply of Water to Riverside Cottage

A deed has been drawn up between Bernard's Acre and Riverside Cottage regarding water supplied via Bernard's Acre. The costs of metered water and standing charge are shown in other income.

2 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 51,663 5,000 56,663 6,380 - 6,380

3 Income from charitable activities

Charitable Charitable
activities activities
income income
2023 2022
£ £
Letting's income 50,929 48,706
Analysis by fund
Unrestricted funds 50,929 48,706

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Trading activity income: other 221 228
5 Income from investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 1,133 410
6 Expenditure on charitable activities
Charitable Charitable
expenditure expenditure
2023 2022
£ £
Direct costs
Staff costs 12,404 9,473
Depreciation and impairment 9,404 8,787
Heating and Lighting 3,792 4,303
Insurance 2,878 2,819
Water and Sewage 826 526
Waste Disposal 484 484
Telephone 1,091 795
Repairs, Maintenance and Equipment 6,296 5,431
Cleaning 3,885 3,814
Rent and Rates 338 348
Accountancy 2,010 690
Payroll Charges 252 351
Bank Charges 91 81
Miscellaneous Expenses 1,271 620
Loraine Trust Mortgage Interest 3,280 3,684
Dues and Subscriptions 555 -
Advertising 463 931
49,320 43,137
Analysis by fund
Unrestricted funds 49,320 43,137

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Trustees

One of the Trustees was reimbursed expenses totalling £2,206 during the year. These costs were in relation to charitable expenditure.

8 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries		 2023
Number
1
2023
£
12,404		 2022
Number
1
2022
£
9,473

There were no employees whose annual remuneration was more than £60,000.

9 Tangible fixed assets

Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 January 2023
400,000
58,575
Additions
-
32,130
At 31 December 2023
400,000
90,705
Depreciation and impairment
At 1 January 2023
-
22,917
Depreciation charged in the year
-
9,404
At 31 December 2023
-
32,321
Carrying amount
At 31 December 2023
400,000
58,384
At 31 December 2022
400,000
35,660		 Total
£
458,575
32,130
490,705
22,917
9,404
32,321
458,384
435,660

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income
11
Loans and overdrafts		 2023
£
1,396
2,314
3,710		 2022
£
2,705
2,106
4,811
Bank overdrafts
Other loans
Payable within one year
Payable after one year		 2023
£
6,307
22,000
28,307
6,307
22,000		 2022
£
-
82,000
82,000
-
82,000

A loan of £100,000 has been offered by The Loraine Christian Trust with interest charged at 4% over a period of up to fifteen years.

During the year the Trustees of the Loraine Trust agreed to reduce the loan by £50,000 as at the year end date.

The Charity also repaid £10,000 during the year.

12 Creditors: amounts falling due within one year

Notes
Bank overdrafts
11
Deferred income
14
Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Borrowings		 2023
£
6,307
10,042
659
2,397
19,405
2023
£
22,000		 2022
£
-
9,133
167
1,257
10,557
2022
£
82,000

13 Creditors: amounts falling due after more than one year

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 January 2023
Released from previous periods
Resources deferred in the year
Deferred income at 31 December 2023		 2023
£
10,042
2023
£
10,042
9,133
(9,650)
10,559
10,042		 2022
£
9,133
2022
£
9,133
6,975
(5,912)
8,070
9,133

15 Restricted funds

The restricted funds of the charity comprise the balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 January
Incoming		 Transfers At 31
2023 resources December
2023
£ £ £ £
The Moshulu Charitable Trust Grant - 5,000 (5,000) -
During the year, the charity received £5,000 from The Moshulu Charitable Trust. This donation was to be used
to assist the charity in the purchase of solar panels.
Unrestricted funds
At 1 January Incoming
Resources		 Transfers At 31
2023 resources expended December
2023
£ £ £ £ £
Revaluation of property 250,000 - - - 250,000
General funds 154,975 103,946 (49,320) 5,000 214,601
404,975 103,946 (49,320) 5,000 464,601

16 Unrestricted funds

BERNARD'S ACRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16
Unrestricted funds
Previous year:
At 1
Revaluation of property
General funds		 (Continued)
January
2022
Incoming
resources
Resources
expended
Transfers
At 31
December
2022
£
£
£
£
£
250,000
-
-
-
250,000
142,388
55,724
(43,137)
-
154,975
392,388
55,724
(43,137)
-
404,975

17 Related party transactions

Equipment and work done totalling £767 was paid for by the charity to a company where the son of two of the trustees is a director.