Epping Forest Horology Centre
Annual Report and Accounts for year ending 31 July 2024
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EFHC Chairman’s Report July 2023/July 2024
Firstly, welcome to this year’s AGM and a particularly warm welcome to any new members who have joined us since the last one. Just to state the obvious, this is the Annual Report and Accounts for the last full year (23/24), so July 31st 2023, to July 31st 2024. My thanks to Dave Mowbray for his time and effort in keeping our finances in check for yet another year. The accounts have now been audited and formally accepted as a true record by the Trustees, and they have been made available to you the members in the previously provided documents. The salient feature of this year’s accounts is that things are never quite what they seem. What looks like a small surplus is actually hiding an ongoing loss in real terms, and what you see is a combination of phasing and accounting procedures that just happens to make things look better than they actually are. For those of you wanting more detail on the accounts could | please encourage you to talk straight to Dave rather than asking detailed questions at the AGM as | can promise you some of the answers could get quite involved. Thank you.
| am very sad to report that quite recently Stuart Forsey one of our long standing Trustees has decided to stand down both as a Trustee and as an active member. Stuart can no longer drive himself to EFHC, and this is why we haven't seen too much of him this year. | would like to thank Stuart for his help, support and generosity as Trustee and founder member of EFHC over many years. On a more personal note | will be always grateful to Stuart for his kind and wise words of council, always given with the best interests of EFHC at heart. | am sure we all wish him well, and hope to see him around as and when he can make it up to the workshops.
Almost simultaneously with Stuart’s resignation Robin Jeffery also decided that it was time for him to stand down as a Trustee at EFHC. | first came across Robin some many years ago when | was ambushed by him and Stuart and encouraged to put myself forward as a candidate for Trustee and Chairman, and well, here we are. Robin’s ability to ‘get stuck in’ and encourage people to stop procrastinating has been a valuable and necessary resource for EFHC. | would particularly like to thank Robin for his major efforts in the very time consuming role as Membership Secretary, meeter, greeter and general chaser upper. Robin will be a difficult act to follow. He will of course still be with us as a member, and | have no doubt that he will continue to get involved with organising things in EFHC.
We need more members like Robin and Stuart, both of whom have given freely of their time, valuable knowledge and opinion. EFHC does not run itself, and it requires a combination of feet on the ground on a day to day basis as well as those prepared to get involved with the more mundane but necessary aspects of Trusteeship and all that comes with it. So, if you are interested and would like to talk about getting involved then please just approach one of us and we will be delighted to tell you more.
With Stuart and Robin stepping down we were in danger of being left with only the minimum number of Trustees to carry out the necessary functions required to run the charity. Fortunately, Malcolm Wandrag Page 1 of 3
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votehas generously steppedfor Malcolm as a new up Trustee. to the plateIn and youfact, as many will seewill thatalready thereknow, is a nominationMalcolm is inanything the AGMother for thanyou toa new Trustee, having previously been a Trustee for a number of years. Thanks to Malcolm for offering up his time again on our behalf.
It has been a busy year for our watchmaking classes. Kris Stanulewicz took over the first year and second watchmaking courses last September (2023) and led two very successful and enjoyable cohorts. There have been many notable successes from this class, with a number of students taking up the opportunity of bench tests with well known brands. One student, Ahmed Kibriyar has already started up his own watch brand specifically aimed at the Bangladeshi community - and very nice his watches are too. Unfortunately, Kris has had to move on due to the demands of his work, and this left us with no replacement watch tutor for this coming year. However, after a great deal of searching and persuasion we have secured the services of Rob Talbot who will be teaching a new group of beginners up to Christmas. Some of you will remember Rob from his time at EFHC as a beginner some years ago. Rob is now a well respected watchmaker and we are delighted to welcome him back to teach for us.
The difficulties in finding a watch tutor caused us a great deal of heartache and occupied a huge amount of my time. What it also did was to focus our thoughts on what it is that we offer, and whether it was time to rethink how we did things. We came to the conclusion that our beginner watchmakers are rather fickle and fall into one or more of a number of categories: We have some who like the idea, and come and give it a go and then quickly drop out because it is not for them. We have those who enjoy it as a bit of a hobby and want to learn enough to prevent them from breaking too many expensive movements, but after a year are happy to get on and either pursue watchmaking at home or come back to us into a project class for another year. Finally, and increasingly there are those who are very serious about watchmaking as a career and want a basic grounding before moving on quickly to take up a job as soon as they can find one. All of this pointed to the fact that the course we have been running up until now was no longer fit for purpose. Students no longer want to get involved with historic detail or with obscure legacy movements, rather, they seem to want a quick jump start into the world of watchmaking after which they choose their next steps based on costs and immediate aspirations. | suppose this should come as no surprise to us, given that most of our beginners watch candidates are those in the early years of employment, busy at work and often starting families. For them, time and money are in short supply. So for this coming year we are trying something new. The beginners watch course will be a one term 12 week course based on a straightforward Swiss lever movement, after which the student should have a basic understanding of watches and most basic skills. After this in the following two terms we will offer some ‘core’ courses for those who wish to take them up. It is envisaged that these will be on specific topics and take place over several evenings or at weekends, and taught by a variety of tutors. As well as being an option for the first year watchmakers to take up, these core courses will also be available to all members
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of EFHC (and perhaps beyond). So for those of you who have always fancied taking your chances with an automatic watch for example, your time may be coming. Lalit will continue with the project classes on Monday and Wednesday evenings to accommodate those who want to carry on watchmaking with an overseer.
If there is a message here it is that we must be prepared to change with the times. Up until the pandemic EFHC had a fairly continuous expansion, and had reached a stable ‘Goldilocks zone’ if you will, where membership numbers, income and costs all sat quite nicely alongside each other to make things work. The pandemic changed all of this, not quite so much during covid but afterwards when things began to settle down again. People had got out of the habit of coming to EFHC and didn’t always regain it, and with the best will in the world some of us got old, and some old enough to consider not rejoining EFHC. This means that we are going to have to work a lot harder to recruit new members and retain existing ones. Similarly, the huge surge in interest in watches which was apparent ten years ago is now on the decline, and the retail market is now reflecting this fact too. Again, we will have to work much harder at attracting new watch members to EFHC and even harder at retaining them. For the immediate future one way forward seems to be in offering a series of short specialised courses that members can take advantage of. Gordon, with the help of others has worked hard to arrange these courses and is already putting together a timetable for the forthcoming year. It is difficult to overestimate just how much time and effort it takes to organise this, and | would like to thank Gordon in this forum for the hours he has put in. As an aside, it was the revenue from these short courses that helped to keep us in the black last year. So please support these events when they come up, they are an important source of revenue for us as well as being instructive and fun. Finally, it would be impossible at this juncture not to mark the sad passing of Bob Stevenson. All organisations have their pivotal characters that can be relied upon to go above and beyond, and Bob always did that and more. His ready wit, enthusiasm and ability to get things done is legendary, and rightly 50. Bob was fundamentally the epitome of an EFHC member. He knew all manner of things that no single human really had the right to know, talented in virtually any field in which he chose to get involved, he would offer up his whistling, wit and wisdom freely to anyone and everyone he engaged with. Next time you are feeling despondent when confronted by the task on the bench in front of you, think of Bob who, even when disabled would still take me to task for making a dog’s breakfast of something straightforward, and then show me with his one good hand how it should be done. A good friend to many and a properly decent human being. (Even if he was guilty of naming me the Chairgnome!)
Paul Newis Chair. Sept 2024
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Finance Report
The legal stuff
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements each year which give a view of the state of affairs of the charity including receipts, payments, assets and liabilities. In preparing these financial statements the trustees are required to:
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e select suitable accounting policies and then apply them consistently e observe the methods and principles of the Charities SORP e make judgements and estimates which are reasonable and prudent e to note separately monies paid to trustees for services e state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
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e prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
Overview
Almost all of the club’s income comes from session fees paid by members. This year sawa slight increase in member numbers up from 94 last year to 99 this year which, together with the previous year’s fee increase, led to an increase in session fee income.
A one-off payment from HMRC for Gift Aid related to Covid closures and significant income from short courses this year also bolstered income.
On the other side of the finance equation tutor costs, rental charges and energy costs have risen as was expected.
With income more than covering increased costs the 2023/24 financial year operating position was in the black this year. Our cash situation also remains in the black. As a result the trustees decided that session fees should not be increased for this coming year.
Receipts and payments are shown below using the Charity Commission pro-forma. This shows how our current financial position stacks up with cash at £43.397 against liabilities of £22,636
Investments
We have two areas of controlled funds held in investments — our reserve fund and the Val Valentine bequest (valuations as at April 20204):
- e £12,470 in the IFSL CAF ESG Cautious Fund e £23,052 in the IFSL CAF ESG Growth Fund e £22,930 in the IFSL CAF ESG Income and Growth Fund
Following a further drawdown for 2023/24, on current valuations our two controlled funds stand at:
- e Val Valentine bequest - £35,071 e Reserve fund - £23,381
Outlook
The Trustees maintain that we must continue to budget on the basis of balancing income over expenditure each year to ensure the ongoing viability of the Centre. This remains extremely challenging going forward.
This year we benefitted from a one-off payment from HMRC, a large drawdown from the Val Valentine fund covering tuition of disabled members and very significant income from short courses. These income streams are outwith day-to-day session operations.
A further rent review is due summer 2025 and tutor costs, insurance and utilities will increase again this year
Recruitment therefore remains a priority and we must work to create a programme of short courses and market demand for them again this year
Regarding other liabilities and risks, as a registered charity we do not anticipate being liable for business rates payments. However, at the time of writing a formal business rate liability assessment is with the local authority. Whilst there is every possibility that we will be zero rated, this is not guaranteed and we may see a rateable value assessment of 20% amounting to some £4800 per annum. A provision of £4800 is therefore shown in the accounts.
Accounting policies
The accounts were independently inspected on August 28" 2023 and will be submitted to the Charities Commission once approved by the AGM.
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The accounts have been prepared in accordance with the Accounting and Reporting by Charities - Statement of Recommended Practice (SORP 2005) and appropriate UK Accounting Standards.
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Unrestricted funds are available to use to further any of the purposes of the charity. Restricted funds are designated for particular areas of the charity's work or specific projects
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The charity owns significant amounts of tools, equipment and fittings, much of which is old but has residual value. An asset register (which is a separate document and not included in these summary accounts) has been compiled for those items with value greater than £100. Older items have been listed on the basis of estimated residual value. Newer assets are listed at cost.
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Although depreciation of most of our equipment has not historically been charged in the operating accounts it is clear that modernisation and update of equipment is now overdue. A clock workshop inventory was begun in July 2020 but not completed. Last year we felt it prudent to reduce the estimated value of fixed assets on the books to £55,000.
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Equipment renewal will be a considerable challenge given the loss of income we are experiencing, however reserves are held to cover unplanned emergency expenditure including repairs to equipment, fittings and other expenditure.
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Financial planning is based upon the premise that operating costs should always be covered by operating income in order to ensure the overall financial viability of the Centre.
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Operational finance is managed through a current account with Barclays and an Instant Saver Account with Nationwide.
Notes to the accounts
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The Centre has no potential liability relating to guarantees given by the charity
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The Centre has zero outstanding debt secured on the charity's assets
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No remuneration was made to officials of the Centre in this financial year.
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As acharity, EFHC is eligible for Gift Aid, which is paid by HMRC in arrears. There are strict guidelines on donation eligibility and although membership and session fees would not normally qualify, refunds on fees caused by Covid closures not claimed by members were successfully claimed this year.
Dave Mowbray (Thursday clocks and Trustee Treasurer)
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|---|---|---|---|---|---|---|
|Soy|(HY CMNSSN|
|Receipts|and|payments|account:||CC16a|
|For|the|period|
|from|01-Aug-23|31-Jul-24|
|Section|A|Receipts|and|payments|
|U|ri|Restri|
|nrestricted|estricted|Total funds|Last year|
|funds|funds|
|tothe|¢earest|to the nearest £|to the nearest £|to the nearest £|
|A‘|Receipts|
|55,0261.200460||[id[|||56,0261,200460||[660[24__39,|0|49||||
|243|||
|||243|
|206|[||206|[132|
|ses|[Sd|5.636|[____2,228||
|3206|||
|||3,206|[82||
|Sub|total (Gross income|for|66,067|66,067|44,459|
|AR)|
|A2|Asset|and|investment|sales,|
|(see|table).|
|CAF funds|a|
|ee|Po|
|Sub total|__|
|Total receipts|e60e7][|+i|86,067|||97,299|
|A3|Payments|
|29,907|[|29,907|
|26,9657|[||26,957|13,653|
|1854|[||1,851|
|259|[||259|
|3,733|[||3,733|
|-[[|:|1183.00|
|Repairs|and|Maintenance|1os2{]|1,082|4774.00|
|s25{[|525|462.00|
|PT|||
|Sub|total|a]|Las|||45,180|||
|A4|Asset and|investment|
|purchases,|(see|table)|
|CAF funds|||48350.00|
|ee|PC|
|Sub|total [Ea|
|Net of receipts/(payments)|1753]|||1,753|3,769|
|ASTransfersbetweenfunds|{||||[|]|||
|A6|Cash|funds|last year end|416444{ ||41,644|41,644|
|Cash|funds|this year end|43,397,|||asso7||||
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Section|B|Statement|of assets|and|liabilities|at the|end|of the|period||
|Unrestricted|Restricted|Endowment|
|funds|funds|funds|
|to|nearest £|to|nearest £|to|nearest|£|
|ve!|
|ee|es|
|1||
|Total cash funds|43,397|oe|ee|
|(agree|balances|with|receipts|and|payments|
|account(s))|
|Unrestricted|Restricted|Endowment|
|funds|funds|funds|
|to|nearest £|to|nearest £|to|nearest £|
|—|=|
|Fund|to which|.|Current|value|
|asset|belongs|ent (pone)|optional|
|B3|Investment|assets|CAF|Cautious fund|11,986|
|CAF|Growth|fund|23,052|
|CAF|Growth|+|Income|fund|21,175|22,930|
|Fund to which|Cost (optional)|Current value|
|asset belongs|P|optional)|
|eoquinmen|
|.|
|Fund|to|which|Amount|due|When|due|
|liability|relates|optional|optional|
|B5|Liabilities|Outstanding access ramp purchase|||
|Provision|for|business|rates|@20%|
|Signedhaha ofby alone the trusteesor|two|trustees|on|Signature.|Print.|Name|Date|of approval|
|VALI|eaur|||wews|| ||20.10.2y)|
|A|
|aa|»|4|py|PRP|ji|VAT|| MOWRYnis|Je|||20-10-2+|ign|Ore|
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4 lex: | CHARITY COMMISSION | Independent examiner's report on the
| | FOR ENGLAND AND WALES accounts
Section A Independent Examiner’s Report
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[Ho][20][CE][cesT][Cc] Report to the trustees EP?! WE (Ko 2,[er] On accounts for the year . Charity no _ oe « ended 3( /o7/ 2024 (if any) [1 S2ZBSA | report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended ; Responsibilities and As the charity's trustees, you are responsible for the preparation of the basis of report accounts in accordance with the requirements of the Charities Act 2011 (‘the Act”). | report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Independent [The charity’s gross income exceeded £250,000 and | am qualified to examiner's statement undertake the examination by being a qualified member of [insert name of applicable listed body]]. Delete [] if not applicable. | have completed my examination. | confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below *) which gives me cause to believe that in, any material respect: e the accounting records were not kept in accordance with section 130 of the Charities Act; or e the accounts did not accord with the accounting records; or e the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. | 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. * Please delete the words in the brackets if they do not apply.
‘i ‘ j caret QD F 5 2 j signes:( (=i: [a yous doa
Relevant professional qualification(s) or body
IER
1
Oct 2018
f
Address:
& &6EiL AcE LETE HwoeTH
Section B Disclosure
Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).
Give here brief details of any items that the examiner wishes to disclose.
IER
2
Oct 2018