**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 2021**
**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 - 15|
## **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 2021**
|**Trustees**|N J Pressley, Treasurer|
|---|---|
||P Bennett|
||S Dare|
||K Simporis|
||T Gillham (appointed 9 April 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
Independent Examiner
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 2021**
The Trustees present their annual report together with the financial statements of the company for the year to 31 October 2021. 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 2019).
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.
The Trustees have had due regard to the Charity Commission's guidance on public benefit and are satisfied that the charity meets the definition of a public benefit entity.
## **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 main activity is the making of grants for creative commissions which recommenced in March 2021 after being deferred in 2020 because of Covid-19. Grants of £5,000 were awarded in 2021 and there was an increase to £8,000 for the March 2022 programme.
## **FINANCIAL REPORT**
The statement of financial activities on page 6 shows a surplus on the unrestricted funds of £6,701 (2020: surplus of £8,330). Total unrestricted funds increased from £48,077 to £54,788.
The year's trading was affected by both Covid-19 and a car crashing into the windows. The Trust benefited from Covid-19 grants of £12,098. Insurers have offered compensation for loss of gallery income of £2,000 and this has been included as income together with a reimbursement of expenses of £1,476. The trustees are confident that the claim will be settled at a higher figure.
The prospects for the current year are very good and a further surplus is forecasted.
A further lease was entered into with WBC for a 5 year period to June 2026. By the terms of the agreement, rent of £26,000 p.a is payable and WBC continue to pay salary costs.
## **REVIEW OF ACTIVITIES**
CH has continued to trade well despite the effects of the 2 lockdowns and other restrictions. Occupancy of the studio spaces averaged 85% for the year and there was a steady number of new enquiries as people started to return to work.
Covid -19 continued to disrupt the management of the gallery spaces as there was a return to lockdown after the annual Christmas Pop-Up Shop. Planned professional development events were switched to online sessions but a number of in person activities were cancelled and exhibitions were limited to window-based only. The loss of income in this period was compensated for by the lockdown grants.
There was a further disruption to the gallery when in June a car crashed into the windows, resulting in another round of cancellations, rescheduling and reduced hire fees for those who decided to continue with their bookings. The repairs were not completed until November and there was a loss of income of over £5,000 though the insurers have not yet agreed this.
Page 2
## **Adur and Worthing Trust Limited**
## **(A company limited by guarantee)**
## **Trustees' report (continued) For the year ended 31 October 2021**
However, despite these difficulties, the number of hires increased and the gallery income of £5,311 was not much lower than the previous year. In the current year, demand has increased significantly, and income is projected at around £13,000.
The Space to Make project that took place in the prior year has been continued with the holding of practical sessions with the laser cutter and 3D printer.
There was a new Creative Commissions programme in March 2021 with £5,000 being awarded to nine projects. This was so successful that the Trustees increased the grants to £8,000 for the March 2022 programme.
## **FUTURE DEVELOPMENTS**
WBC and the Trust have been continuing with plans for the creation of a digital hub to expand the operation of Colonnade House.
Planning permission was granted in April 2021. But during the tender process, changes in fire regulations necessitated an amended design, and the planning committee unexpectedly rejected the whole scheme. The project team addressed these concerns and a new application was submitted in December 2021 and approved in February 2022.
The project is now in the tender process and once completed, the overall business and financial viability will be assessed with a final decision to be taken by WBC in summer 2022.
The trustees are enthusiastic about the plans as long as the objectives of CH are maintained. They plan to apply to continue the partnership role with WBC.
## **GOING CONCERN**
After making appropriate enquiries, the trustees are satisfied 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 salary costs 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 and sustain its grant making programme. 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.
## **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)**
## **Independent examiner's report**
**For the year ended 31 October 2021**
## **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 2021.
## **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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I 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: 21 June 2022 Lucy Hammond, 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 2021**
|**Note**
**Income from:**
Grant income
Charitable activities
4
Insurance proceeds
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**12,098**
**47,312**
**3,476**
**62,886**
**56,185**
**56,185**
**6,701**
**48,077**
**6,701**
**54,778**|**Total**
**funds**
**2021**
**£**
**12,098**
**47,312**
**3,476**
**62,886**
**56,185**
**56,185**
**6,701**
**48,077**
**6,701**
**54,778**|Total
funds
2020
£
10,000
48,857
-|
|---|---|---|---|
||||58,857|
||||50,527|
||||50,527|
||||8,330|
||||39,747
8,330|
||||48,077|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 15 form part of these financial statements.
Page 6
||||`2021`||`2020`|
|---|---|---|---|---|---|
||Note||£||£|
|Currentassets||||||
|Debtors|8|10,583||8,794||
|Cashatbankandinhand||66,213||48,240||
|||/[7,tJb||~/,UJ4||
|Creditors:amountsfallingduewithinone||||||
|year|9|(22,~2~8~||(8,957)||
|Netcurrentassets|||54,778||48,077|
|Totalnetassets|||54,778||48,077|
|Charityfunds||||||
|Unrestrictedfunds|10||54,778||48,077|
|Totalfunds|||54,778||48,077|
##
**Adur and Worthing Trust Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 October 2021**
## **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 2019), 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 Covid-19 has been assessed by the Trustees and despite the issues it has caused the charity, the Trustees are satisfied that they are well placed to be able to trade for the next 12 months and beyond.
## **2.3 Income**
All income is recognised once the charity 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 charity'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 2021**
## **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 charity 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 charity 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 charity 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 2021**
## **3. Income from grants**
Government grants relate to local authority Covid-19 grants in 2021 and 2020.
## **4. Income from charitable activities**
|Rents received
Gallery hire
Pop up shop income
**Total 2021**|**Unrestricted**
**funds**
**2021**
**£**
41,689
5,311
312
47,312|**Total**
**funds**
**2021**
**£**
**41,689**
**5,311**
**312**|
|---|---|---|
|||**47,312**|
|Provision of space
Gallery hire
Ticket income
Pop up shop income
Total 2020|Unrestricted
funds
2020
£
32,364
5,682
1,647
1,009
40,702|Restricted
funds
2020
£
8,155
-
-
-
8,155|Total
funds
2020
£
40,519
5,682
1,647
1,009|
|---|---|---|---|
||||48,857|
Page 10
**Adur and Worthing Trust Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 October 2021**
## **5. Analysis of expenditure by activities**
|Provision of space direct costs
Small commission grants - to individuals
Support costs
Provision of space direct costs
Support costs|Unrestricted
funds
2020
£
40,319
1,948
42,267|**Unrestricted**
**funds**
**2021**
**£**
49,020
5,000
2,165
56,185
Restricted
funds
2020
£
8,260
-
8,260|**Total**
**funds**
**2021**
**£**
**49,020**
**5,000**
**2,165**|
|---|---|---|---|
||||**56,185**|
||||Total
funds
2020
£
48,579
1,948|
||||50,527|
Page 11
**Adur and Worthing Trust Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 October 2021**
## **Analysis of direct costs**
|**Establishment expenses**
Cleaning
Insurance
Rates / Utilities
Rent
Repairs and maintenance
**Other operational expenses**
Advertising
Bank charges
Entertaining
Professional services
Equipment purchased
Sundry expenses
Telephone
Tenant operational costs
Travel costs|**2021**
**£**
**3,483**
**968**
**4,591**
**26,000**
**6,021**
**1,537**
**-**
**-**
**360**
**-**
**1,230**
**1,124**
**3,706**
**-**
**49,020**|2020
£
4,250
968
4,891
19,500
5,238
1,182
221
141
4,969
3,762
182
784
1,948
543|
|---|---|---|
|||48,579|
All of the support costs in the year relate to Governance costs £2,165 (2020: £1,948).
During the year £nil of the other operational expenses were restricted. During 2020 £8,260 of the other operational expenses were restricted split as follows: Professional fees - £3,889 Entertaining - £6 Advertising - £24 Equipment purchased - £3,762 Travel expenses - £388 Sundry - £191
## **6. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £2,165 (2020 - £1,948).
Page 12
**Adur and Worthing Trust Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 October 2021**
## **7. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 October 2021, no Trustee expenses have been incurred (2020 - £NIL).
## **8. Debtors**
|Trade debtors
Prepayments and accrued income|**2021**
**£**
**1,449**
**9,134**
**10,583**|2020
£
3,964
4,830|
|---|---|---|
||||
|||8,794|
## **9. Creditors: Amounts falling due within one year**
|Tenant deposits held
Accruals and deferred income
Rent accruals
Small commission grants payable|**2021**
**£**
**2,846**
**4,972**
**13,000**
**1,200**
**22,018**|2020
£
3,182
5,775
-
-|
|---|---|---|
||||
|||8,957|
Deferred income relates to rent received in advance and deposits for future exhibitions.
Page 13
**Adur and Worthing Trust Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 October 2021**
## **10. Statement of funds**
## **Statement of funds - current year**
|Unrestricted funds
**Statement of funds - prior year**
Balance at
1 November
2019
£
Unrestricted funds
39,747
**Restricted funds**
Space to Make
-
**Total of funds**
39,747|**Balance at 1**
**November**
**2020**
**£**
**48,077**
Income
£
50,702
8,155
58,857|**Income**
**£**
**62,886**
Expenditure
£
(42,267)
(8,260)
(50,527)|**Expenditure**
**£**
**(56,185)**
Transfers
in/out
£
(105)
105
-|**Balance at**
**31 October**
**2021**
**£**
**54,778**|
|---|---|---|---|---|
|||||Balance at
31 October
2020
£
48,077|
|Unrestricted funds
**Restricted funds**
Space to Make
**Total of funds**|||||
|||||-|
|||||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 the Trust purchase equipment, to gain specialist expertise from Tech Resort and to run a number of public participation sessions.
## **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
**Adur and Worthing Trust Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 October 2021**
## **12. Operating lease commitments**
At 31 October 2021 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2021**
**£**
**26,000**
**95,333**
**-**
**121,333**|2020
£
17,333
-
-|
|---|---|---|
||||
|||17,333|
The following lease payments and changes in lease payments have been recognised in the Statement of financial activities:
|Operating lease rentals
Changes in lease payments arising from COVID-19 related rent
concessions|**2021**
**£**
**26,000**
**-**
**26,000**|2020
£
26,000
(6,500)|
|---|---|---|
||||
|||19,500|
Page 15