Registered number: 07810467 Charity number: 1156999
Adur and Worthing Trust Limited
(A company limited by guarantee)
Unaudited
Trustees' report and financial statements For the year ended 31 October 2020
Adur and Worthing Trust Limited
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 3 |
| Trustees' responsibilities statement | 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 14 |
Adur and Worthing Trust Limited
(A company limited by guarantee)
Reference and administrative details of the Company, its Trustees and advisers For the year ended 31 October 2020
| Trustees | N J Pressley, Treasurer |
|---|---|
| P Bennett | |
| S Dare | |
| K Simporis | |
| I M Ede (resigned 19 May 2020) | |
| T Gilham (appointed 9 May 2021) | |
| Company registered number 07810467 Charity registered number 1156999 Registered office 25 Church Street Shoreham By Sea West Sussex BN43 5DQ Accountants Kreston Reeves LLP Chartered Accountants A2 Yeoman Gate Yeoman Way Worthing West Sussex BN13 3QZ |
Page 1
Adur and Worthing Trust Limited
(A company limited by guarantee)
Trustees' report For the year ended 31 October 2020
The Trustees present their annual report together with the financial statements of the company for the year to 31 October 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2015) as amended by Update Bulletin 1 (effective 1 January 2015).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
OBJECTIVES
The objects of the Trust are the advancement of arts, culture and heritage for the public benefit in the District of Adur and the Borough of Worthing.
ACTIVITIES FOR ACHIEVING OBJECTIVES
The major activity of the Trust continues to be the operation of Colonnade House (CH) in partnership with Worthing Borough Council (WBC). CH provides a creative hub and studio space for those involved in creative work and are selected against criteria that match the aims of the project
The other activity is the making of grants for creative commissions though because of COVID-19, the planned programme was deferred to March 2021
FINANCIAL REPORT
The statement of financial activities on page 6 shows a surplus on the unrestricted funds of £8,300 (2019 Deficit £2,408). Total unrestricted funds increased from £39,747 to £48,077.
By the terms of the agreement with WBC, rent of £26,000 p.a is payable and WBC have agreed to continue to pay staffing costs until at least mid 2020.
The Trust applied for the government grants available due to Covid-19 and were awarded a £10,000 Business Rates grant in this financial year as well as a 3 month rent waiver (£6,500) from Worthing Borough Council. Tenants were given a three month rent free period.
Grants of £8,155 were received for the Space to Make project and these were spent in the year so there are no restricted funds to carry forward.
The trustees are satisfied with the financial situation of CH and the Trust.
REVIEW OF ACTIVITIES
CH has traded well despite Covid-19 with occupancy averaging just under 84% for the year. The gallery space was hired out for 32 different exhibitions, despite closure during the Spring lockdown in 2020. The opportunity to run in-person professional development events was severely curtailed after March 2020 but the staff team adapted and offered a range of online events instead.
The Space to Make project ran from November 2019 to January 2020. Space to Make was a project to test the concept of a makerspace for Worthing and gave people a chance to try out digital tech. The project was awarded funding from the Crafts Council through their Make-Shift-Do programme (we were one of three organisations awarded funding), and also from West Sussex County Council and Worthing Borough Council as part of their support for creative industries. The funding enabled the purchase of a laser cutter and 3D printer that will be used in the future.
Page 2
Adur and Worthing Trust Limited
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 October 2020
The Christmas Pop-up Shop ran in December 2019 and was the most successful yet. In December 2020 it ran for a shorter period and footfall was lower due to Covid-19 so the income was lower.
In January 2020 the Trust launched a new round of Creative Commissions but the onset of Covid-19 forced this scheme to be postponed to 2021.
FUTURE DEVELOPMENTS
WBC and the Trust have been continuing with plans for the creation of a digital hub to operate alongside CH. WBC completed the purchase of 5 High Street, which adjoins CH, from West Sussex County Council.
Architects were appointed to develop designs for the whole building and to carry out cost planning prior to seeking planning permission. A public consultation was run at CH in January 2020. At its meeting of 30 March, the Joint Strategic Committee has approved the business case for the establishment of an expanded CH and recommended that WBC approve the capital budget for this. The business plan is based on a partnership between WBC and a charity and the trustees intend to enter into the competitive process for this role as they believe that the Trust is competent to carry this out
The trustees are enthusiastic about the plans as long as the objectives of CH are maintained and built upon within the expanded hub.
GOING CONCERN
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
FINANCIAL RISK MANAGEMENT
The risk to the Trust was that it would be exposed to increased costs if rent and salaries were charged by WBC. The decision to only charge rent means that CH can trade profitably.
RESERVES POLICY
Sufficient reserves have now been built up to ensure that the Trust can operate CH with a sufficient level of security. If the expanded digital and creative hub is developed, the trustees will consider investing some part of its reserves in further cultural and creative development.
COVID-19
Most tenants decided to vacate their units when the lock down started. The trustees decided to waive all charges to tenants for the June quarter. WBC also agreed to waive its rent so with the receipt of the small business grant, the impact of COVID-19 was limited as tenants were able to return. Given this the Trustees remain comfortable that the Trust is a going concern and therefore the adoption of the going concern basis for preparing the financial statements remain appropriate.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The company is registered as a charitable company limited by guarantee and constituted under a Memorandum of Association. It is a registered charity number 1156999.
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
Page 3
Adur and Worthing Trust Limited
(A company limited by guarantee)
Statement of Trustees' responsibilities For the year ended 31 October 2020
The Trustees (who are also the directors of the Company 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on its behalf by:
................................................ N J Pressley (Trustee)
Date: 15 April 2021
Page 4
Adur and Worthing Trust Limited
(A company limited by guarantee)
Independent examiner's report
For the year ended 31 October 2020
Independent examiner's report to the Trustees of Adur and Worthing Trust Limited ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 October 2020.
Responsibilities and basis of report
As the Trustees of the Company (and 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 the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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; or
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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 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.
This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.
Signed:
Dated: 6 May 2021
Simon Webber, BA(Hons), DChA, FCA
Kreston Reeves LLP Chartered Accountants Worthing
Page 5
Adur and Worthing Trust Limited
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) For the year ended 31 October 2020
| Note Income from: Grant income Charitable activities 3 Total income Expenditure on: Charitable activities Total expenditure Net income/(expenditure) Transfers between funds 9 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2020 £ 10,000 40,702 50,702 42,267 42,267 8,435 (105) 8,330 39,747 8,330 48,077 |
Restricted funds 2020 £ - 8,155 8,155 8,260 8,260 (105) 105 - - - - |
Total funds 2020 £ 10,000 48,857 58,857 50,527 50,527 8,330 - 8,330 39,747 8,330 48,077 |
Total funds 2019 £ - 66,452 |
|---|---|---|---|---|
| 66,452 68,860 |
||||
| 68,860 | ||||
| (2,408) | ||||
| - | ||||
| (2,408) 42,155 (2,408) |
||||
| 39,747 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 14 form part of these financial statements.
Page 6
Adur and Worthing Trust Limited (A company limited by guarantee) Registered number: 07810467
Balance sheet As at 31 October 2020
| Note Current assets Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Total net assets Charity funds Restricted funds 9 Unrestricted funds 9 Total funds |
8,794 48,240 57,034 (8,957) |
2020 £ 48,077 48,077 - 48,077 48,077 |
10,241 38,989 49,230 (9,483) |
2019 £ 39,747 |
|---|---|---|---|---|
| 39,747 | ||||
| - 39,747 |
||||
| 39,747 |
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
N J Pressley
Date: 15 April 2021
The notes on pages 8 to 14 form part of these financial statements.
Page 7
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
1. General information
Adur and Worthing Trust Limited is a private limited company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member.
The registered address of the charitable company is 25 Church Street, Shoreham By Sea, West Sussex BN43 5DQ.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Adur and Worthing Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The charity is presumed to be carrying on business as a going concern. The impact of the Covid-19 virus has been assessed by the Trustees and despite the issues it has caused the charity, the Trutees are satisfied that they are well placed to be able to trade for the next 12 months and beyund.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
2.4 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
Page 8
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
2. Accounting policies (continued)
2.5 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.6 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.7 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.8 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs 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.
Page 9
Adur and Worthing Trust Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
3. Income from charitable activities
| Provision of space Ticket income Pop up shop income Total 2020 Provision of space Ticket income Pop up shop income Total 2019 |
Unrestricted funds 2020 £ 38,046 1,647 1,009 40,702 |
Restricted funds 2020 £ 8,155 - - 8,155 Unrestricted funds 2019 £ 64,338 955 1,159 66,452 |
Total funds 2020 £ 46,201 1,647 1,009 |
|---|---|---|---|
| 48,857 | |||
| Total funds 2019 £ 64,338 955 1,159 |
|||
| 66,452 |
4. Analysis of expenditure by activities
| Provision of space Provision of space |
Activities undertaken directly 2020 £ 48,579 Activities undertaken directly 2019 £ 67,084 |
Support costs 2020 £ 1,948 Support costs 2019 £ 1,776 |
Total funds 2020 £ 50,527 |
|---|---|---|---|
| Total funds 2019 £ 68,860 |
Page 10
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
Analysis of direct costs
| Establishment expenses Air conditioning fit out costs Cleaning Insurance Rates / Utilities Rent Repairs and maintenance Other operational expenses Advertising Bank charges Entertaining Film festival expenses Professional services Equipment purchased Small commission grant Sundry expenses Telephone Tenant operational costs Travel costs Support costs Establishment expenses Other operational expenses Total charitable activities |
2020 £ - 4,250 968 4,891 19,500 5,238 34,847 1,182 221 141 - 4,969 3,762 - 182 784 1,948 543 13,732 1,948 34,847 13,732 50,527 |
2019 £ 5,780 3,694 2,064 6,008 26,000 10,808 |
|---|---|---|
| 54,354 3,535 290 324 1,249 - - 3,075 324 1,575 2,358 - |
||
| 12,730 1,776 54,354 12,730 |
||
| 68,860 |
All of the support costs in the year relate to Governance costs £1,948 (2019: £1,776). During the year £8,260 of the other operational expenses were restricted (2019: £nil) split as follows: Professional fees - £3,889
Entertaining - £6 Advertising - £24 Equipment purchased - £3,762 Travel expenses - £388 Sundry - £191
Page 11
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
5. Independent examiner's remuneration
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Company's independent examiner for the independent | ||
| examination of the Company's annual accounts | 1,948 | 1,776 |
6. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).
During the year ended 31 October 2020, no Trustee expenses have been incurred (2019 - £NIL).
7. Debtors
| Trade debtors Prepayments and accrued income |
2020 £ 3,964 4,830 8,794 |
2019 £ 5,379 4,862 |
|---|---|---|
| 10,241 |
8. Creditors: Amounts falling due within one year
| Tenant deposits held Accruals and deferred income |
2020 £ 3,182 5,775 8,957 |
2019 £ 2,814 6,669 |
|---|---|---|
| 9,483 |
Page 12
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
9. Statement of funds
Statement of funds - current year
| Unrestricted funds Restricted funds Space to Make Total of funds |
Balance at 1 November 2019 £ 39,747 - 39,747 |
Income £ 50,702 8,155 58,857 |
Expenditure £ (42,267) (8,260) (50,527) |
Transfers in/out £ (105) 105 - |
Balance at 31 October 2020 £ 48,077 |
|---|---|---|---|---|---|
| - | |||||
| 48,077 |
Space to Make was a project to test the concept of a makerspace for Worthing alongside the development of plans for the expansion of the creative hub. Space to Make ran from 18 – 30 January 2020 and gave people a chance to try out digital tech, to find out what people are making and doing with it, to share ideas and promote collaboration. Funding for the project came from the Crafts Council, West Sussex County Council and Worthing Borough Council and enabled us to purchase equipment, to gain specialist expertise from Tech Resort and to run a number of public participation sessions.
Statement of funds - prior year
| Balance at | Balance at | ||||
|---|---|---|---|---|---|
| 1 | November | 31 October | |||
| 2018 | Income | Expenditure | 2019 | ||
| £ | £ | £ | £ | ||
| Unrestricted funds | 42,155 | 66,452 | (68,860) | 39,747 |
Page 13
Adur and Worthing Trust Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 October 2020
10. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 57,034 (8,957) 48,077 |
Total funds 2020 £ 57,034 (8,957) |
|---|---|---|
| 48,077 |
Analysis of net assets between funds - prior period
| Current assets Creditors due within one year Total |
Unrestricted funds 2019 £ 49,230 (9,483) 39,747 |
Total funds 2019 £ 49,230 (9,483) |
|---|---|---|
| 39,747 |
11. Related party transactions
There have been no related party transactions in the year that require disclosure under the Charities SORP (FRS 102).
Page 14