Company registration number: 07358159 Charity registration number: 1159016
## The Hub-Yeovil Community Support Charity
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 December 2020
Milsted Langdon LLP Motivo House Alvington Yeovil Somerset BA20 2FG
## **The Hub-Yeovil Community Support Charity**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 5|
|Statement of Trustees' Responsibilities|6|
|Independent Examiner's Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9 to 10|
|Statement of Cash Flows|11|
|Notes to the Financial Statements|12 to 27|
## **The Hub-Yeovil Community Support Charity**
## **Reference and Administrative Details**
**Chief Executive Officer** C Tuck, (resigned 7 February 2020) S Kibby (Joint CEO, appointed 23 April 2020) K Comber (Joint CEO, appointed 23 April 2020) **Trustees** K C Mauger (resigned 6 March 2020) N A Downton J S McCabe I Raby I A W Robinson J A Matthews (appointed 10 December 2020) **Principal Office** 13 Buckland Road Pen Mill Trading Estate Yeovil Somerset BA21 5EA The charity is incorporated in England and Wales, United Kingdom. **Company Registration Number** 07358159 **Charity Registration Number** 1159016 **Independent Examiner** Milsted Langdon LLP Motivo House Alvington Yeovil Somerset BA20 2FG
Page 1
## **The Hub-Yeovil Community Support Charity**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2020.
## **Trustees**
K C Mauger (resigned 6 March 2020)
N A Downton
J S McCabe
I Raby
I A W Robinson
J A Matthews (appointed 10 December 2020)
## **Objectives and activities**
## _**Objects and aims**_
The objects of the Charity, as set out in the governing document, are:
"To relieve the needs of young people and adults with learning disabilities/difficulties, physical disabilities and emotional and social difficulties (trainees), in particular by providing skills training and support that will enable them to lead meaningful independent lives, fulfil their aspirations to work and make positive contributions to society."
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help.
The review also helps us ensure our aim, objectives and activities remain focused on our states purposes.
## _**Fundraising disclosures**_
The Charity did not have any fundraising events in 2020 due to the coronavirus pandemic.
## _**Public benefit**_
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. The trustees consider how planned activities will contribute to the aims and objectives they have set.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## _**Use of volunteers**_
The Charity has a small number of dedicated and much valued volunteers. The volunteers support the running of the scrapstore, drama and social groups and events but due to the coronavirus pandemic their involvement in 2020 was minimal.
Page 2
## **The Hub-Yeovil Community Support Charity**
## **Trustees' Report**
## **Achievements and performance**
## _**Key non-financial performance indicators**_
The Charity had a very challenging year in 2020 with the services closed for 27 weeks due to the pandemic. During this period the staff continued to regularly engage with our trainees via phone calls and Zoom meetings. This included activities, social chats, weekly quizzes' etc. When the Hub re-opened we had only reduced our trainee numbers by two and both of these cases were where the trainees had moved from the area.
## **Financial review**
During the year ended 31 December 2020, the Charity had total income of £611,160 (2019: £481,175) and total expenditure of £550,176 (2019: £482,862). The income and expenditure realting to restricted funds was £32,443 (2019: £41,308) and £34,628 (2019: £35,978). The Charity was in receipt of Government grant income in relation to Coronavirus of £117,294.
Total funds at 31 December 2020 are £88,930 (2019: £27,946). This is split between unrestricted £(113,822) and restricted £202,752. Total funds at 31 December 2019 were £27,946. This was split between unrestricted £(175,756) and restricted £203,702. Total free reserves as at 31 December 2020 are in deficit by £127,251 (2019: deficit £188,791).
## _**Policy on reserves**_
The Charity has improved its financial control systems over the last twelve months. Monthly detailed Profit and Loss statements ae provided for the Trustees and bank reconciliations and cashflow projections are carried out on a daily basis. A robust financial model is now in place with a target of retaining three months operation costs as reserves.
## _**Funds in deficit**_
The Charity aims to have three months of operating costs (approximately £90,000 in reserves). The Charity does not plan to hold large amounts of reserves and any surpluses will be used to benefit the experience for our trainees. We are eroding the historic deficit due to one particular restricted fund as a matter of urgency.
## _**Principal funding sources**_
The principal funding sources for the charity are currently by way of skills development training and social events/activities via the income from direct payments/personal budgets. There has been a slight decrease in income generated by the social enterprises.
## **Structure, governance and management**
## _**Nature of governing document**_
The charity was established as a company limited by guarantee (incorporated 26 August 2010) and registered as a charity with the Charity Commission (registered 29 October 2014). The affairs of the charity are governed by its memorandum and articles under which the members of the company are its trustees and control of the charity and its property and funds.
## _**Recruitment and appointment of trustees**_
A more rigorous process is now in place for the recruitment and appointment of trustees. Trustees carry out a skills gap analysis before recruiting and now advertise more widely to find people with the required skills and experience.
Page 3
## **The Hub-Yeovil Community Support Charity**
## **Trustees' Report**
## _**Induction and training of trustees**_
The Charity has an induction process for the recruitment of new trustees.
## _**Arrangements for setting key management personnel remuneration**_
The trustees employ staff to run the day to day activities of the charity, with strategic decisions being taken at a trustee level.
The Chief Executive Officers' are considered to be key management personnel. The Chair carries out an annual appraisal of the Chief Executive Officers' and agrees their salary with the other trustees.
## _**Major risks and management of those risks**_
## _Pricing_
The Charity's main source of income is fees from trainees. The Local Authorities set up a daily rate for day services and this amount is charged to the individual dependent upon how many days they attend the Hub each month. If the Local Authority reduces the daily rate for day services or changes it policy/methodology, this is a risk to the Charity.
To mitigate this risk the Charity wants to become less reliant on Local Authority income and plans to increase other sources of income such as fund raising, cafe and scrapstore income, drama and social groups, and room hire.
## _Reputational risk_
The Charity works with vulnerable adults with learning disabilities and autism. It is essential that the Charity provides professional services in a safe and secure environment.
The Charity has comprehensive safeguarding, whistle-blowing and other policies in place and staff are appropriately vetted and trained.
## _Government Policy_
The Government could change their policies in how they see services for vulnerable adults delivered.
The Charity keeps up to date with any Government press releases, changes in legislation and maintains effective relationships with key stakeholders.
## **Financial instruments**
## _**Objectives and policies**_
The Charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.
## _**Cash flow risk**_
The Charity’s activities expose it primarily to the financial risks of changes in interest rates. The Charity does not currently hold any interest bearing assets or liabilities.
Page 4
## **The Hub-Yeovil Community Support Charity**
## **Trustees' Report**
## _**Credit risk**_
The Charity’s principal financial assets are bank balances and cash, trade and other receivables.
The Charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The Charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
## _**Liquidity risk**_
The Charity's liquidity risk is attributable to it's level of cash and credit lines available.
The annual report was approved by the trustees of the charity on 30 September 2021 and signed on its behalf by:
......................................... N A Downton Trustee
......................................... I Raby Trustee
Page 5
## **The Hub-Yeovil Community Support Charity**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of The Hub-Yeovil Community Support Charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. 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 charitable 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 apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 30 September 2021 and signed on its behalf by:
......................................... N A Downton Trustee
......................................... I Raby Trustee
Page 6
## **The Hub-Yeovil Community Support Charity**
## **Independent Examiner's Report to the trustees of The Hub-Yeovil Community Support Charity**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 8 to 27.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of The Hub-Yeovil Community Support Charity (and also 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 Hub-Yeovil Community Support Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as 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**
Since The Hub-Yeovil Community Support Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
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 Hub-Yeovil Community Support Charity 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.
...................................... Gill Freeman ACA
Milsted Langdon LLP Motivo House Alvington Yeovil Somerset BA20 2FG
30 September 2021
Page 7
## **The Hub-Yeovil Community Support Charity**
## **Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Other income
6
Total income
**Expenditure on:**
Raising funds
7
Charitable activities
8
Other expenditure
10
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
22|**Unrestricted**
**£**
60,885
378,228
20,810
118,794
578,717
(25,403)
(490,145)
-
(515,548)
63,169
(1,235)
61,934
(175,756)
(113,822)|**Restricted**
**£**
32,443
-
-
-
32,443
(6,341)
(28,287)
-
(34,628)
(2,185)
1,235
(950)
203,702
202,752|**Total**
**2020**
**£**
93,328
378,228
20,810
118,794
611,160
(31,744)
(518,432)
-
(550,176)
60,984
-
60,984
27,946
88,930|**Total**
**2019**
**£**
68,027
328,608
84,540
-|
|---|---|---|---|---|
|||||481,175|
|||||(73,353)
(409,433)
(76)|
|||||(482,862)|
|||||(1,687)
-|
|||||(1,687)
29,633|
|||||27,946|
All of the charity's activities derive from continuing operations during the above two periods.
The Statement of Financial Activites include all gains and losses recognised in the period, accordingly a separate Statement of Comprehensive Income has not been presented.
The funds breakdown for 2019 is shown in note 22.
The notes on pages 12 to 27 form an integral part of these financial statements. Page 8
## **The Hub-Yeovil Community Support Charity**
## **(Registration number: 07358159) Balance Sheet as at 31 December 2020**
|**Note**
**Fixed assets**
Tangible assets
15
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
18
**Creditors: Amounts falling due within one year**
19
**Net current liabilities**
**Net assets**
**Funds of the charity:**
**Restricted**
22
**Unrestricted income funds**
Unrestricted
22
**Total funds**
22|**2020**
**£**
91,901
1,000
959
22,854
24,813
(27,784)
(2,971)
88,930
202,752
(113,822)
88,930|**2019**
**£**
69,985
1,000
6,204
8,972|
|---|---|---|
|||16,176
(58,215)|
|||(42,039)|
|||27,946|
|||203,702
(175,756)|
|||27,946|
The notes on pages 12 to 27 form an integral part of these financial statements. Page 9
## **The Hub-Yeovil Community Support Charity**
## **(Registration number: 07358159) Balance Sheet as at 31 December 2020**
For the financial year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 8 to 27 were approved by the trustees, and authorised for issue on 30 September 2021 and signed on their behalf by:
......................................... N A Downton Trustee
......................................... I Raby Trustee
The notes on pages 12 to 27 form an integral part of these financial statements. Page 10
## **The Hub-Yeovil Community Support Charity**
## **Statement of Cash Flows for the Year Ended 31 December 2020**
|**Note**
**Cash flows from operating activities**
Net cash income/(expenditure)
**Adjustments to cash flows from non-cash items**
Depreciation
8
**Working capital adjustments**
Decrease in debtors
17
Increase/(decrease) in creditors
19
Net cash flows from operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
15
Sale of tangible fixed assets
Net cash flows from investing activities
**Cash flows from financing activities**
Repayment of loans and borrowings
19
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December|**2020**
**£**
60,984
17,038
78,022
5,245
6,369
89,636
(38,954)
-
(38,954)
(36,800)
13,882
8,972
22,854|**2019**
**£**
(1,687)
11,833|
|---|---|---|
|||10,146
18,583
(14,363)|
|||14,366|
|||(28,852)
1,126|
|||(27,726)
(13,200)|
|||(26,560)
35,532|
|||8,972|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 12 to 27 form an integral part of these financial statements. Page 11
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England and Wales, United Kingdom, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: 13 Buckland Road Pen Mill Trading Estate Yeovil Somerset BA21 5EA
These financial statements were authorised for issue by the trustees on 30 September 2021.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
The Hub-Yeovil Community Support Charity 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 notes.
## **Going concern**
In light of the rapid global spread of the Coronavirus "COVID-19" in early 2020, the trustees have reviewed projections and budgets for the next twelve months. From April 2021 the restrictions in place are easing allowing students back to the 'Hub' and the Cafe to re-open. Following this review, the trustees consider there to be little impact on the Charity's ability to act as a going concern.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Page 12
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Income and endowments**
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 the income receivable can be measured reliably.
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.
## _**Gift aid**_
Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.
## _**Other trading activities**_
Other trading activities income is recognised when the income is received.
## _**Charitable activities**_
Income from charitable activites is recognised when the income is received.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Page 13
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## _**Other expenditure**_
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Government grants**
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £50 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
**Asset class Depreciation method and rate** Property improvements depreciated over the life of the lease Furniture and equipment 25% straight line Motor vehicles 25% reducing balance
## **Stock**
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Page 14
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 15
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Pensions and other post retirement obligations**
The Charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the Charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current or prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activites when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
## **Financial instruments**
## _**Classification**_
The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows;
## _**Recognition and measurement**_
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank - is classified as a basic financial instrument and is measured at face value.
Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
## **3 Income from donations and legacies**
|Donations and gifts
Gift aid reclaimed
Other income including grants|**Unrestricted**
**General**
**£**
50,805
10,080
-
60,885|**Restricted**
**£**
-
-
32,443
32,443|**Total**
**2020**
**£**
50,805
10,080
32,443
93,328|**Total**
**2019**
**£**
44,207
-
23,820|
|---|---|---|---|---|
|||||68,027|
£60,885 (2019 - £26,719) of the income above was attributable to unrestricted funds and £32,443 (2019 - £41,308) attributable to restricted funds.
Page 16
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **4 Income from charitable activities**
|Sales within charitable activities
Charitable rental income|**Unrestricted**
**General**
**£**
376,663
1,565
378,228|**Total**
**2020**
**£**
376,663
1,565
378,228|**Total**
**2019**
**£**
323,901
4,707|
|---|---|---|---|
||||328,608|
£378,228 (2019 - £328,608) of the income above was attributable to unrestricted funds and £Nil (2019 - £Nil) attributable to restricted funds.
## **5 Income from other trading activities**
|Cafe and scrap sales
Fundraising income|**Unrestricted**
**General**
**£**
20,810
-
20,810|**Total**
**2020**
**£**
20,810
-
20,810|**Total**
**2019**
**£**
81,466
3,074|
|---|---|---|---|
||||84,540|
£20,810 (2019 - £84,540) of the income above was attributable to unrestricted funds and £Nil (2019 - £Nil) attributable to restricted funds.
## **6 Other income**
|Coronavirus job retention scheme
Coronavirus business support
Other income|**Unrestricted**
**funds**
**General**
**£**
107,294
10,000
1,500
118,794|**Total**
**2020**
**£**
107,294
10,000
1,500
118,794|**Total**
**2019**
**£**
-
-
-|
|---|---|---|---|
||||-|
£118,794 (2019 - £Nil) of the income above was attributable to unrestricted funds and £Nil (2019 - £Nil) attributable to restricted funds.
Page 17
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **7 Expenditure on raising funds**
## **a) Costs of trading activities**
|Fundraising trading costs:
Raising funds|**Unrestricted**
**General**
**£**
25,403
25,403|**Restricted**
**£**
6,341
6,341|**Total**
**2020**
**£**
31,744
31,744|**Total**
**2019**
**£**
73,353|
|---|---|---|---|---|
|||||73,353|
£25,403 (2019 - £55,883) of the expenditure above was attributable to unrestricted funds and £6,341 (2019 - £17,470) attributable to restricted funds.
## **8 Expenditure on charitable activities**
|**Note**
Depreciation
Legal and
professional fees
Insurance costs
Repairs and
maintenance
Motor expenses
Consultancy fees
Rent and rates
Bank charges
Postage and
stationary
Sundry expenses
Accountancy fees
Lofty Therapy
Horses
Other charitable
expenditure
Staff costs
Governance costs
9|**Unrestricted**
**General**
**£**
3,677
4,243
5,148
9,404
663
7,293
46,360
615
1,376
1,598
1,730
8,849
955
390,770
7,464
490,145|**Restricted**
**£**
13,361
92
-
-
-
3,625
4,000
-
-
-
-
-
-
7,209
-
28,287|**Total**
**2020**
**£**
17,038
4,335
5,148
9,404
663
10,918
50,360
615
1,376
1,598
1,730
8,849
955
397,979
7,464
518,432|**Total**
**2019**
**£**
11,833
329
4,330
13,526
5,260
14,060
39,031
564
2,641
1,609
-
9,454
2,546
299,978
4,272|
|---|---|---|---|---|
|||||409,433|
Page 18
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
£490,145 (2019 - £390,925) of the expenditure above was attributable to unrestricted funds and £28,287 (2019 - £18,508) attributable to restricted funds.
## **9 Analysis of governance and support costs**
## **Governance costs**
|Independent examiner fees
Examination of the financial statements
Other fees paid to examiners
Other governance costs
**10 Other expenditure**
(Profit)/Loss on sale of tangible fixed assets held for
own use|**Unrestricted**
**funds**
**General**
**£**
1,080
6,351
33
7,464
**Note**
charity's|**Total**
**2020**
**£**
1,080
6,351
33
7,464
**Total**
**2020**
**£**
-
-|**Total**
**2019**
**£**
1,800
2,424
48|
|---|---|---|---|
||||4,272|
||||**Total**
**2019**
**£**
76|
||||76|
£Nil (2019 - Loss of £76) of the expenditure above was attributable to unrestricted funds and £Nil (2019 - £Nil) attributable to restricted funds.
## **11 Net incoming/outgoing resources**
Net incoming/(outgoing) resources for the year include:
|Operating leases - plant and machinery
Operating leases - other assets
Loss on disposal of fixed assets held for the charity's own use
Depreciation of fixed assets
Independent examination fees
Other accountancy services|**2020**
**£**
1,152
48,000
-
17,173
1,080
6,351|**2019**
**£**
3,504
40,000
76
11,833
1,800
2,424|
|---|---|---|
Page 19
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **12 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses from the charity during the year.
## **13 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs
Redundancy costs|**2020**
**£**
359,822
22,985
5,793
9,379
397,979|**2019**
**£**
273,472
21,566
4,940
-|
|||299,978|
The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:
|Average number of employees|**2020**
**No**
22|**2019**
**No**
17|
|---|---|---|
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £6,540 (2019 - £16,550).
The chief executive officers, as the highest paid members of staff, received benefits totalling £54,132 (2019 - £62,595).
## **14 Taxation**
The charity is a registered charity and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 20
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **15 Tangible fixed assets**
|**Property**
**improvements**
**£**
**Cost**
At 1 January 2020
61,828
Additions
31,626
At 31 December 2020
93,454
**Depreciation**
At 1 January 2020
9,709
Charge for the year
8,695
At 31 December 2020
18,404
**Net book value**
At 31 December 2020
75,050
At 31 December 2019
52,119|**Furniture and**
**equipment**
**£**
50,138
7,328
57,466
37,146
6,718
43,864
13,602
12,992|**Motor**
**vehicles**
**£**
6,500
-
6,500
1,626
1,625
3,251
3,249
4,874|**Total**
**£**
118,466
38,954
157,420
48,481
17,038
65,519
91,901
69,985|
|---|---|---|---|
Included within the net book value of land and buildings above is £Nil (2019 - £Nil) in respect of freehold land and buildings and £75,050 (2019 - £52,119) in respect of leaseholds.
## **16 Stock**
|Stocks
**17 Debtors**
Trade debtors
Other debtors|**2020**
**£**
1,000
**2020**
**£**
959
-
959|**2019**
**£**
1,000|
|---|---|---|
|||**2019**
**£**
6,181
23|
|||6,204|
Page 21
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **18 Cash and cash equivalents**
|Cash on hand
Cash at bank|**2020**
**£**
191
22,663
22,854|**2019**
**£**
97
8,875|
|---|---|---|
|||8,972|
## **19 Creditors: amounts falling due within one year**
|**19 Creditors: amounts falling due within one year**|||
|---|---|---|
|Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals|**2020**
**£**
3,596
-
5,916
-
18,272
27,784|**2019**
**£**
3,368
36,800
6,610
37
11,400|
|||58,215|
## **20 Obligations under leases and hire purchase contracts**
The total value of future minimum lease payments was as follows:
|The total value of future minimum lease payments was as follows:|||
|---|---|---|
|Within one year
In two to five years
In over five years|**2020**
**£**
48,288
192,000
680,000
920,288|**2019**
**£**
8,288
-
-|
|||8,288|
The lease commitments disclosed above relate to leasehold property £48,000 and a coffee machine £648, being the commitment at the balance sheet date. The leasehold property lease was renewed on 25 February 2020 with a contractual term ending on 24 February 2040 at an initial rate of £40,000 per annum. Included in the lease is a break clause being every 5 years from the date of the lease. The coffee machine lease was renewed on 29 March 2019 with a contractual term of 12 months at a monthly fee of £80 plus VAT.
## **21 Pension and other schemes**
## **Defined contribution pension scheme**
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £5,793 (2019 - £4,940).
Page 22
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **22 Funds**
|**Unrestricted funds**
**_General_**
Unrestricted
**Restricted funds**
LPR Consulting LLP
Furniture Grant
Somerset Community
Foundation
Yarlington Housing
Community Fund
Schuh Foundation Fund
Battens Grant Fund
National Lottery
Community Fund
St James Place
Charitable Trust
Screwfix Grant
Reach Grant
Somerset County Council
- PPE Grant
Dorset County Council -
PPE Grant
Open Mental Health
Network
Yarlington Housing -
Enterprise Investment
Fund
**Total restricted funds**
**Total funds**|**Balance at**
**1 January**
**2020**
**£**
(175,756)
185,133
963
-
2,050
1,672
500
5,759
1,000
5,000
1,625
-
-
-
-
203,702
27,946|**Incoming**
**resources**
**£**
578,717
-
-
4,000
-
-
-
5,100
-
-
-
1,343
500
1,500
20,000
32,443
611,160|**Resources**
**expended**
**£**
(515,548)
(9,509)
(2,198)
(4,000)
(800)
(557)
(348)
(10,859)
(111)
(556)
(1,625)
(1,343)
(500)
-
(2,222)
(34,628)
(550,176)|**Transfers**
**£**
(1,235)
-
1,235
-
-
-
-
-
-
-
-
-
-
-
-
1,235
-|**Balance at**
**31**
**December**
**2020**
**£**
(113,822)
175,624
-
-
1,250
1,115
152
-
889
4,444
-
-
-
1,500
17,778|
|---|---|---|---|---|---|
||||||202,752|
||||||88,930|
Page 23
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
|**Unrestricted funds**
**_General_**
Unrestricted
**Restricted**
LPR Consulting LLP
Furniture Grant
Andy Lovell
Yarlington Housing
Community Fund
Schuh Foundation Fund
Battens Grant Fund
National Lottery Community
Fund
St James Place Charitable
Trust
Screwfix Grant
Reach Grant
**Total restricted funds**
**Total funds**|**Balance at 1**
**January 2019**
**£**
(168,739)
192,016
6,356
-
-
-
-
-
-
-
-
198,372
29,633|**Incoming**
**resources**
**£**
439,867
-
-
5,000
2,850
2,229
500
9,909
1,000
5,000
14,820
41,308
481,175|**Resources**
**expended**
**£**
(446,884)
(6,883)
(5,393)
(5,000)
(800)
(557)
-
(4,150)
-
-
(13,195)
(35,978)
(482,862)|**Balance at 31**
**December**
**2019**
**£**
(175,756)
185,133
963
-
2,050
1,672
500
5,759
1,000
5,000
1,625|
|---|---|---|---|---|
|||||203,702|
|||||27,946|
Page 24
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
The specific purposes for which the funds are to be applied are as follows:
The unrestricted funds are available to be used at the trustees discretion to further the objects of the charity.
The LPR Consulting LLP fund was donated to purchase a residential property for a trustee to live in to enable them to fulfil their role within the charity. Rental income was receivable during the period of occupancy. The property was subsequently sold and the funds remain restricted to spend on the repayment of debts and/or expand the operations of the charity.
The Furniture Grant was donated to enable the charity to purchase furniture for its facility.
The Yarlington Housing Community Fund represents the net book value of assets purchased from the money donated for the purchase of a fridge and freezer. Depreciation is written off annaully against the restricted fund.
The Schuh Foundation Fund represents the net book value of assets purchased from the money donated for the purchase of a dishwasher. Depreciation is written off annaully against the restricted fund.
Battens Grant Fund was donated to enable the charity to carry out first aid training.
National Lottery Community Fund relates to a grant to enable the charity to carry our poetry sessions for their trainees. There was also an additional grant in the year to enable the charity to continue to keep in contact with the trainees during lockdown.
St James Place Charitable Trust relates to money donated to be spent towards renovation works. The balance represents the net book value of the assets purchased for renovation works. Depreciation is written off annaully against the restricted fund.
Screwfix Grant relates to money donated to be spent towards renovation works. The balance represents the net book value of the assets purchased for renovation works. Depreciation is written off annaully against the restricted fund.
Reach Grant relates to a grant to enable the charity to prepare a detailed financial business plan in relation to a proposed mezzanine floor.
Somerset County Council Fund and Dorset County Council Fund was donated to enable the charity to purchase PPE equipment.
The Somerset Community Foundation Fund was donated to help towards the rent of Edwards House which was temporarily rented so that the charity could spread their trainees over two sites for social distancing purposes.
The Yarlington Housing Enterprise Investment Fund was for improvements to the building where the charity installed an internal roof on the warehouse and made other improvements in the kitchen and warehouse area. This balance represents the net book value of the assets purchased for renovation works. Depreciation is written off annaully against the restricted fund.
The Open Mental Health Network grant was donated for trips for the charity's trainees. This was not spent in 2020 due to the lockdown but will be spent in September 2021.
Page 25
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **23 Analysis of net assets between funds**
|**23 Analysis of net assets between funds**||||
|---|---|---|---|
|Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
13,429
(99,467)
(27,784)
(113,822)
**Unrestricted**
**funds**
**General**
**£**
13,035
(130,576)
(58,215)
(175,756)|**Restricted**
**funds**
**£**
78,472
124,280
-
202,752
**Restricted**
**funds**
**£**
56,950
146,752
-
203,702|**Total funds**
**at 31**
**December**
**2020**
**£**
91,901
24,813
(27,784)|
||||88,930|
||||**Total funds**
**at 31**
**December**
**2019**
**£**
69,985
16,176
(58,215)|
||||27,946|
## **24 Analysis of net funds**
|**24 Analysis of net funds**||||
|---|---|---|---|
|Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt|**At 1 January**
**2020**
**£**
8,972
8,972
**At 1 January**
**2019**
**£**
35,532
35,532|**Cash flow**
**£**
13,882
13,882
**Cash flow**
**£**
(26,560)
(26,560)|**At 31**
**December**
**2020**
**£**
22,854|
||||22,854|
||||**At 31**
**December**
**2019**
**£**
8,972|
||||8,972|
Page 26
## **The Hub-Yeovil Community Support Charity**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **25 Financial instruments**
## **Categorisation of financial instruments**
|||**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
|Financial|assets that are debt instruments measured at amortised|||
|cost||959|6,204|
|Financial|liabilities measured at amortised cost|21,868|51,605|
## **26 Related party transactions**
During the year the charity made the following related party transactions:
## **Mr I Raby**
## (Trustee)
During 2018, Mr I Raby advanced a £50,000 loan to the charity. From January 2019, the charity commenced repaying the loan in monthly insalments of £1,100. The loan has been repaid in full without interest in January 2020 with the remaining £36,000 donated to the charity from Mr I Raby. At the balance sheet date the amount due to/from to Mr I Raby was £Nil (2019 - £36,800).
## **Mr C Tuck**
## (CEO)
Expenses were reimbursed totalling £Nil (2019: £22) in the year. At the balance sheet date the amount due to/from Mr C Tuck was £Nil (2019 - £Nil).
## **Mr S Kibby**
## (CEO)
The Charity has paid for rent for Unit 13 Buckland Road since 7 February 2018. The lease agreement is between Trustees of the Minerva Sipp, Stephen John Kibby and The Hub Yeovil Community Support Charity. The last payment to Minerva Sipp was on 24th August. Mr S Kibby no longer has an interest in the unit as the unit was sold during the year. The rental payments in the period are £29,841 (2019: £48,000).
Mr S Kibby donated £1,200 (2019: £Nil) to the charity. At the balance sheet date the amount due to/from Mr S Kibby was £Nil (2019 - £Nil).
## **Mr N Downton**
(Trustee)
During the year, the Hub has received £32 (2019: £32) in relation to room hire from Mr N Downton. At the balance sheet date the amount due to/from Mr N Downton was £Nil (2019 - £Nil).
Page 27