**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 2022** **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 2022** |**Trustees**|N J Pressley, Treasurer| |---|---| ||P Bennett| ||S Dare| ||K Simporis| ||T Gillham| ||A Shaw (appointed 1 June 2022)| |**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
9 Donnington Park
85 Birdham Road
Chichester
West Sussex
PO20 7AJ|| Page 1 **Adur and Worthing Trust Limited** ## **(A company limited by guarantee)** ## **Trustees' report For the year ended 31 October 2022** The Trustees present their annual report together with the financial statements of the company for the year to 31 October 2022. 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. Grants of £8,225 were awarded in the year and a similar amount will be granted in the 2023 programme. ## **FINANCIAL REPORT** The statement of financial activities on page 6 shows a surplus on the unrestricted funds of £1,304 (2021: surplus of £6,701). Total unrestricted funds increased from £54,778 to £56,082. A surplus on the major activity was £9,529 (2021: deficit of £3,873) which was sufficient to cover the grant programme. The prospects for the current year are good and a similar or somewhat higher surplus is forecasted for the current year. The insurance claim for losses resulting from the car crashing into the windows has still not been settled. ## **REVIEW OF ACTIVITIES** CH has traded well during the year and income has been restored following the disruption of the lockdowns. Occupancy of the studio spaces gradually increased during the year and was at 93% at the end of the year. Whilst occupancy was at the higher end of our expectations, gallery income of £8,198 was lower than had been forecasted, mainly because of discounts given because of the disruption caused by a car crashing into the windows in June 2021. The 2022 Creative Commissions programme was increased and was very successful. ## **FUTURE DEVELOPMENTS** WBC is still committed to the expansion of CH, but the tender estimates received exceeded the original estimates and with inflation and the increase in borrowing costs, the original plans had become unviable. WBC is continuing to investigate a series of financing options this year in the hope that there can be a viable scheme. There is no likelihood of a new scheme being approved during 2023. WBC have given their support and the Trust will continue with their current partnership agreement. Page 2 ## **Adur and Worthing Trust Limited** ## **(A company limited by guarantee)** ## **Trustees' report (continued) For the year ended 31 October 2022** ## **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)** ## **Statement of Trustees' responsibilities For the year ended 31 October 2022** 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: Page 4 **Adur and Worthing Trust Limited** **(A company limited by guarantee)** ## **Independent examiner's report** **For the year ended 31 October 2022** ## **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 2022. ## **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: 12 April 2023 Lucy Hammond, BSc FCA Kreston Reeves LLP Chartered Accountants 9 Donnington Park 85 Birdham Road Chichester, PO20 7AJ 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 2022** |**Note**
**Income from:**
Grant income
Charitable activities
4
Insurance proceeds
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**-**
**64,013**
**-**
**64,013**
**62,709**
**62,709**
**1,304**
**54,778**
**1,304**
**56,082**|**Total**
**funds**
**2022**
**£**
**-**
**64,013**
**-**
**64,013**
**62,709**
**62,709**
**1,304**
**54,778**
**1,304**
**56,082**|Total
funds
2021
£
12,098
47,312
3,476| |---|---|---|---| ||||62,886| ||||56,185| ||||56,185| ||||6,701| ||||48,077
6,701| ||||54,778| 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 ## **Adur and Worthing Trust Limited (A company limited by guarantee) Registered number: 07810467** ## **Balance sheet As at 31 October 2022** |**Note**
**Current assets**
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within one
year
9
**Net current assets**
**Total net assets**
**Charity funds**
Unrestricted funds
10
**Total funds**|**9,932**
**57,257**
**67,189**
**(11,107)**|**2022**
**£**
**56,082**
**56,082**
**56,082**
**56,082**|10,583
66,213
76,796
(22,018)|2021
£
54,778| |---|---|---|---|---| |||||| |||||54,778| |||||54,778| |||||| |||||54,778| 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: **----- Start of picture text -----**
................................................
N J Pressley
Date:
**----- End of picture text -----**
The notes on pages 8 to 15 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 2022** ## **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 Trustees have assessed the going concern of the charity and 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 2022** ## **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. Page 9 **Adur and Worthing Trust Limited (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 October 2022** ## **3. Income from grants** Government grants related to local authority Covid-19 grants in 2021. ## **4. Income from charitable activities** |Provision of space
Gallery hire
Pop up shop income
**Total 2022**
Provision of space
Gallery hire
Pop up shop income
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
55,112
8,198
703
64,013
Unrestricted
funds
2021
£
41,689
5,311
312
47,312|**Total**
**funds**
**2022**
**£**
**55,112**
**8,198**
**703**| |---|---|---| |||**64,013**| |||Total
funds
2021
£
41,689
5,311
312| |||47,312| During 2022 and 2021 £nil of the income from charitable activities or income from grants was restricted. Page 10 **Adur and Worthing Trust Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 October 2022** ## **5. Analysis of expenditure by activities** |Provision of space direct costs
Small commission grants - to individuals
Small commission grants - to institutions
Support costs
Provision of space direct costs
Small commission grants - to individuals
Support costs|**Unrestricted**
**funds**
**2022**
**£**
51,047
7,925
300
3,437
62,709
Unrestricted
funds
2021
£
49,020
5,000
2,165
56,185|**Total**
**funds**
**2022**
**£**
**51,047**
**7,925**
**300**
**3,437**| |---|---|---| |||**62,709**| |||Total
funds
2021
£
49,020
5,000
2,165| |||56,185| Page 11 **Adur and Worthing Trust Limited (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 October 2022** ## **Analysis of direct costs** |**Establishment expenses**
Cleaning
Insurance
Rates / Utilities
Rent
Repairs and maintenance
**Other operational expenses**
Advertising
Bad debt write off
Professional services
Sundry expenses
Telephone
Tenant operational costs
Legal costs|**2022**
**£**
**3,442**
**2,471**
**5,477**
**26,000**
**7,673**
**1,265**
**(94)**
**361**
**85**
**2,147**
**1,220**
**1,000**
**51,047**|2021
£
3,483
968
4,591
26,000
6,021
1,537
47
360
1,183
1,124
3,706
-| |---|---|---| |||49,020| All of the support costs in the year relate to Governance costs £3,437 (2021: £2,165). During 2022 and 2021 £nil of the other operational expenses were restricted. ## **6. Independent examiner's remuneration** The independent examiner's remuneration amounts to an independent examiner fee of £2,937 _(_ 2021 _-_ £2,165 _)_ , and other accountancy services of £500 (2021 - £nil). ## **7. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2021 - £NIL). During the year ended 31 October 2022, no Trustee expenses have been incurred (2021 - £NIL). Page 12 **Adur and Worthing Trust Limited (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 October 2022** ## **8. Debtors** |Trade debtors
Prepayments and accrued income|**2022**
**£**
**2,064**
**7,868**
**9,932**|2021
£
1,449
9,134| |---|---|---| |||| |||10,583| ## **9. Creditors: Amounts falling due within one year** |Tenant deposits held
Accruals and deferred income
Rent accruals
Small commission grants payable|**2022**
**£**
**3,325**
**5,784**
**-**
**1,998**
**11,107**|2021
£
2,846
4,972
13,000
1,200| |---|---|---| |||| |||22,018| 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 2022** ## **10. Statement of funds** ## **Statement of funds - current year** |Unrestricted funds
**Statement of funds - prior year**
Unrestricted funds|**Balance at 1**
**November**
**2021**
**£**
**54,778**
Balance at
1 November
2020
£
48,077|**Income**
**£**
**64,013**
Income
£
62,886|**Expenditure**
**£**
**(62,709)**
Expenditure
£
(56,185)|**Balance at**
**31 October**
**2022**
**£**
**56,082**| |---|---|---|---|---| |||||Balance at
31 October
2021
£
54,778| ## **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 2022** ## **12. Operating lease commitments** At 31 October 2022 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|**2022**
**£**
**26,000**
**69,333**
**95,333**|2021
£
26,000
95,333| |---|---|---| |||| |||121,333| The following lease payments and changes in lease payments have been recognised in the Statement of financial activities: |Operating lease rentals|**2022**
**£**
**26,000**
**26,000**|2021
£
26,000| |---|---|---| |||| |||26,000| Page 15