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2021-06-30-accounts

- Hutton Community Centre (CIO) Statement of Accounts, 2020/21

These are the annual accounts for HCC (CIO). It is the fifth time that accounts such as these have been produced. These accounts document one accounting period, as follows:

Period 1 &
Period 2		 30/11/15 to 30/6/16
and 1/7/16 to 30/6/17		 From the inception of the charity to immediately prior to the lease with
BBC, and for the first full year of the lease with BBC.
Covered in the first annual report.
Period 3 1/7/17 to 30/6/18 For the second full year of the lease with BBC.
Covered in the second annual report.
Period 4 1/7/18 to 30/6/19 For the third full year of the lease with BBC.
Covered in the third annual report.
Period 5 1/7/19 to 30/6/20 For the fourth full year of the lease with BBC.
Covered in the fourth annual report.
Period 6 1/7/20 to 30/6/21 For the fifth full year of the lease with BBC.
Covered in this report.

1.0 Structure of the Charity and the Operation

1.1 HCC (CIO) and our Partner Organisations

HCC (CIO) [or Hutton Community Centre (CIO) ] is a charitable incorporated organisation which received its approval from the UK Charity Commission on 30/11/15. Its registered charity number is 1164605. It was created for the sole purpose of running Hutton Community Centre for community benefit.

The charity has a board of four trustees, and operates according to written articles of association. These are available on request. Further details about the background of the trustees can be seen on request. One trustee has left the board during the fifth full year of operation (Peter Boem), and Seye Atunrase has become chair of trustees.

A number of other, “partner” organisations have supported the charity since its creation. There is a written partner agreement in place to formalise this support relationship. Further details about our partner organisations can be seen on request. There have been no changes to the partner organisations since the last annual report.

1.2 The Lease with Brentwood Borough Council

HCC (CIO) has a lease in place with Brentwood Borough Council (BBC) to occupy and operate Hutton Community Centre. This lease has a term of 15 years, starting on 1[st] July 2016, with a break clause after the first 7 years to allow for a rent review.

The key obligations under this lease include:

It is noted that, under the terms of the lease, BBC retains ownership of all of the physical assets of the community centre.

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

1.3 The Initial Funding of HCC (CIO)

To create sufficient working capital to operate the community centre, a number of loans were taken out. These are with the partner organisations and former trustees of the charity, as follows:

Loan From Amount Repayable
The Brentwood Grace Centre Partner £10,000 July2020 – extended to July2022
Hope CommunityChurch Partner £5,000 July2020 – extended to July2023
The Lighthouse Project Partner £5,000 July2020 – extended to July2021
David Woods Former
Trustees		 £1,000 Repaid April 2019
Brian Darwood £1,000 Repaid April 2019

The extension requests to the three outstanding loans were made in June 2020. They were made due to cash flow issues caused by the community centre being shutdown from mid March 2020 to mid July 2021 in response to the UK wide COVID-19 lockdown.

Normally, on a month to month basis, the operating costs of the community centre are funded by revenues from the hire of the facilities. Any excess revenue is used to contribute to investments in the centre facilities, and also to subsidise activities which have community benefit. In time it has also be used to repay the loans.

The costs of operating the community centre include staff costs, facility maintenance, utilities (water/power/gas), insurance, rental charges to BBC, and so on.

1.4 Our Business Systems

A number of simple business systems are in place to operate the community centre and the charity. These are mainly managed by the Centre Staff and Treasurer, and include:

We also maintain a cloud based storage facility, through which all of the key tools and documents associated with the operation can be viewed. Access to these is limited to the trustees, with certain documents also available to the partner representatives.

1.5 Our Monitoring and Reporting Structures

HCC (CIO) has an established routine reporting structure, which is regularly reviewed by the trustees. This structure is as follows:

structure is as follows:
What Period Generated By Reviewed By
Operations Report Periodically Centre Manager Trustee/Partnergroup
Financial SummaryReport Periodically Treasurer Trustee/Partnergroup
Usage Reports 6-12 monthly Treasurer Trustee/Partnergroup
Report to BBC Annually Treasurer Trustees
Report to CharityCommission Annually Treasurer Trustees

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

Copies of all of these routine reports are stored in our cloud drives and are available to view on request.

1.6 The Preparation of Our Accounts

These accounts have been prepared being mindful of guidance in the following documents:

Based on this guidance, and the turnover of the HCC (CIO) charity, we have chosen to document our accounts on a receipts and payments basis. Further notes with respect to the accounts and the assumptions and practices used can be seen below.

We make the following general statement with respect to these accounts:

“These financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing documents, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014.”

2.0 The Details of the Accounts

The following pages show the accounts for reporting Period 5. There are 3 elements of content:

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

2.1 Accounting Period 6 (01/07/20 to 30/6/21)

Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21) Section A Receipts and payments - Period 6 (01/07/20 - 30/6/21)
Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds Last
Period		 Notes
to the nearest £ to the nearest £ to the nearest £ to the nearest
£		 to the nearest
£
A1 Receipts
Donations & Fundraising 500 13,847 - 14,347 1,875 P6.1
Hire and Deposit Income 44,190 - - 44,190 65,585 P6.2
COVID relatedgrants fromgovernment 25,146 - - 25,146 25,999 P6.3
Refunds from External Sources 3,036 - - 3,036 - P6.4
Café Income 4,800 - - 4,800 8,715 P6.5
- - - - -
A1 Sub total(Gross income for the
Annual Return)
77,672		 13,847 - 91,520 102,174
A2 Asset and investment sales
None - - - - -
- - - - -
A2 Sub total - - - - -
Total receipts 77,672 13,847 - 91,520 102,174
A3 Payments
Staff Cost excl Café Salaries 29,020 - - 29,020 32,171 P6.6
Café Staff Salaries 10,581 - - 10,581 14,776 P6.7
Café Costs 350 - - 350 23 P6.8
Utilities 8,517 - - 8,517 12,990 P6.9
Maintenance,Contractors & Materials 9,536 9,536 11,112 P6.10
Investments and Donations 2,332 8,517 10,849 - P6.11
Insurances 1,752 - - 1,752 4,751 P6.12
Licences,Event Costs,Marketing 1,018 - - 1,018 751 P6.13
Misc Purchased Items 90 - - 90 - P6.14
Rent and Council Rates 10,500 10,500 7,500 P6.15
Hire & Deposit Refunds 2,703 - - 2,703 4,023 P6.16
AccountancyServices 1,440 1,440 - P6.17
Other Bought in Services - - - - 1,248 P6.18
Donations Related to COVID 709 709 536 P6.19
Loans Repaid - - - - - P6.20
**A3 Sub total ** 78,548 8,517 - 87,065 89,881
A4 Asset and investmentpurchases
Table Tennis Table #1 - - - - 350 P6.21
Access Tower - - 1,260 P6.21
Outside tables / awnings for café - 1,530 - 1,530 - P6.21
**A4 Sub total ** - 1,530 - 1,530 1,610
Totalpayments 78,548 10,047 - 88,595 91,491
Net of receipts/(payments) - 876 3,800 - 2,925 10,683
A5 Transfers between funds - - - - -
A6 Cash funds lastperiod end 71,123 10,000 -
81,123		 70,440
Cash funds thisperiod end 70,247 13,800 -
84,048		 81,123

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

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Notes
Last Period Last Period
Total funds Total funds
funds funds
Endowment Endowment
funds funds
Restricted Restricted
funds funds
Unrestricted Unrestricted
Total cash funds
Details
Details Details Details Details
Categories
B1 Cash funds B2 Other monetary assets B3 Investment assets B4 Assets retained for the charity’s own use B5 Liabilities
P6.22 P6.23 P6.24 P6.24 P6.24 P6.24 P6.24 P6.25 P6.26 P6.27 P6.27 P6.27
to nearest £ to nearest £ Last Period Last Period Last Period
81,123 - - 81,123 5,000 - 5,000 - - - 6,000 500 350 1,260 - 8,110 20,000 15,000 720 - - 35,720
(optional) (optional) (optional)
to nearest £ to nearest £ Current value Current value Amount due
84,047 - - 84,047 5,000 - 5,000 - - - 4,000 - 175 800 1,530 6,505 20,000 15,000 1,000 3,000 39,000
to nearest £ to nearest £ When due (optional)
- - - - - - Total Cost (optional) - - - Cost (optional) - - - Total
to nearest £ to nearest £
Fund to which asset belongs Fund to which asset belongs Fund to which liability relates
13,800 - - 13,800 - - Total Total
to nearest £ to nearest £
70,247 - - 70,247 5,000 -
Balance in HSBC Bank Account Deposit with BBC (repayable at end of lease) None Resale value of Aircon Units Bowling mats Table Tennis Table #1 Access Tower Outside tables + awnings Remaining loans from partner organisations and trustees Redecoration of Community Centre (required at end of lease) Annual accounting costs (for previous period - not paid before 30/6) Annual insurance costs (excl buildings) - not paid before 1/7 Second payment for centre relighting project
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Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

Notes to the accounts
Period 6 – 1/7/20 to 30/6/21		 Notes to the accounts
Period 6 – 1/7/20 to 30/6/21
Note # Comments
General This period is the fifth full year of operation of the charity under the lease with BBC.
It should be noted that this is the first year where restricted funds have been recognised in the
accounts, at the recommendation of our auditor. The receipt of and spending of restricted funds for
this accounting period can now be seen in the relevant rows in A1 and A3, and remnant amounts not
spent can be seen in B1. A carryover of restricted funds has also been added for the previous year
(A6) but it should be noted that this was not recognised as a restricted fund element in the previous
accounts. Restricted funds will however now be trackedgoingforwards.
P6.1 Donations/fundraising in this period made by one of the trustees, by a local care home, by
Brentwood Borough Council towards an energy saving project, by Essex County Council towards a
boiler replacement and café furniture,and bya developer towards a café refurbishmentproject.
P6.2 This is the income taken from regular and one-off hirers for the use of the centre facilities.
This is the main revenue stream for the community centre.
Refundable deposits are also taken from one off hirers.
P6.3 The revenue in this category in this period is all government funding relating to the COVID-19
pandemic. Multiple payments totalling around £9,900 were payments made via HMRC for staff on
furlough. Multiple payments totalling around £15,000 were business support payments made via
Brentwood Borough Council.
P6.4 Refunds were made by our gas and electricity suppliers as our usage was down substantially because
the centre was closed for long periods duringtheyear because of COVID/national lockdowns.
P6.5 This item is the revenue from café operations. From around March 2019 this represents income net
of food, consumable and material costs. It is paid into the HCC HSBC account periodically from a
separate account which is used to manage day to day café operations. The typical net balance in the
café account is less than £1,000.
P6.6 Staff costs are for the two centre employees. This cost line includes salaries, payroll costs, HMRC
costs(egemployer’s NI)andpension costs.
P6.7 Salaries for the employees who run the café are kept on a separate line. During period 5 this was
initiallytwo employees,both of whom were employedpart time,droppingto one after Sept ’20.
P6.8 During period 6, the material costs of running the café were typically been netted against the income
paid to HCC. This is whyonlysmall charges are showingin this line.
P6.9 The utilities line includesgas, electricity, water andphone/broadband charges.
P6.10 This line includes all of the routine and emergent maintenance items for the centre, as well as
consumables such as those for the office or for the toilets. It also includes contractor costs.
P6.11 This line is for major work to any of the centre’s facilities.
During period 6, this has included part payment for a lighting replacement / energy saving project,
upgrade of the electrical wiring in the changing rooms, and some of the initial investment for a café
upgradeproject.
P6.12 The majority of the insurances required for the centre operation are purchased directly by the
charity. The buildings insurance is purchased by BBC and then reimbursed to them by the charity.
Period 6 only includes the payment to BBC (for the building insurance charge) as the non buildings
insurance premium renewal was not paid by 1/7. That is why this period’s total charge is so much less
than theprevious one. This will come back into the next accounting period.
P6.13 Includes marketing items such as advertising and signage, and memberships such as our premises
license. It also includes the costs towards events which the centre hosts such as Halloween and
Christmasparties,or any“thankyou” lunches or similar events for volunteers.
P6.14 This was the purchase of two temperature gun type monitors to assist with COVID risk management
when the centre first reopened.
P6.15 The payment of rent to Brentwood Borough Council as per the terms of the lease. This is slightly
higher than normal as two rent payments from the previous period were not made on time.
Would normally also include the payment of rates, however the rates charge was cancelled by BBC in
period 5 due to the COVID-19pandemic.
P6.16 The return of hire charges to hirers due to cancellations/errors,plus the return of deposits.

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

P6.17 Charges for examining the annual accounts of the charity. This year’s number includes the costs for
bothperiod 5 andperiod 6 as theperiod 5 charge had not been made duringthepreviousperiod.
P6.18 No charges in this categoryduring period 6.
P6.19 During period 6, we made food donations to a local church which ran a dailyfood bank.
P6.20 No entries in this categoryduring period 6.
P6.21 During the previous period, the centre purchased a table tennis table and an access tower to assist
with maintenance activities. During period 6 we purchased a number of outside tables / awnings for
the café.
P6.22 One bank account Is operated by the charity – a business bank account with HSBC.
The account is operated under the guidance of the formal delegation of authority (DOA) structure
which is agreed bythe trustees and reviewedperiodically.
P6.23 This deposit of £5,000 was paid to BBC in 2016 as a requirement of the lease and is repayable on
completion or termination of the lease.
P6.24 In the third accounting period, a project was executed to install air conditioning units in the main hall.
It was estimated that in the first year these had a resale value of £10k, and that this will decrease by
£2k per year for 5 years.
Other smaller items shown in this list will be depreciated over two to threeyears.
P6.25 To create working capital. Received from a combination of partner organisations and trustees. None
of these are restricted/endowment funds.
P6.26 The lease with BBC requires the redecoration of key rooms of the centre and the replacement of the
carpets before the centre is handed back. These works have not yet been rigorously costed; for now
it is assumed that £5,000 is needed for carpet replacement and £10,000 for any decorating which we
do not do ourselves.
P6.27 All of these items are liabilities incurred which were notpaid for before the end of theperiod.

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

3.0 Charity Commission Additional Questions

We understand that the charity commission has a number of mandatory questions to be answered during the annual reporting process. The table below shows the answers to the questions which are not otherwise explicitly covered in other sections of this report.

Ref 2020-2021 Annual Return questions
Part A		 Answer(s)
4 For the period of this return, where there any serious incidents that the
charity failed to report to the commission?		 No
5 Does your charity raise funds from the public? No
10 Is grant making the main way your charity carries out its purposes? No
11 During the financial period for this return, did your charity receive income
from contracts (other than grant agreements) from central government or
a local authority?		 No
14 During the financial period for this return, did your charity receive any
grant funding from central government or a local authority?		 Yes – COVID-19
related funding
15 How many grants did your charity receive from central government or a
local authority?		 3 types – multiple
payments within these
types. They are from:
•
Essex County
Council (for centre
improvements)
•
HMRC (furlough
payments)
•
Central govt
COVID support
grants (via local
council)
16 What was the total value of the grants held from central government or a
local authority?		 £31,494
(see note P6.3 above)
17 During the financial period for this annual return, did the charity receive
income from outside of the UK?		 No
20 During the financial period for this annual return, did your charity operate
outside England and Wales?		 No
23 When spending money outside England and Wales, did your charity
transfer money other than using the regulated banking system?		 n/a
27 Does the charity have any trading subsidiaries? No
29 During the financial period for this annual return, did any of the trustees
received remuneration or benefits other than expenses incurred?		 No
30 For what services were any of the trustees paid? n/a
31 During the period covered by this annual return, did any of the trustees
resign and take up employment with the charity?		 No
32 During the financial period for this annual return, did any of your charity's
staff receive total employment benefits of £60,000 or more?		 No
35 How many UK volunteers, excluding trustees, did your charity have
during the financial period?		 3
36 During the financial period for this annual return, did your charity review
its financial controls?		 No(this was last done in
Oct 2017)
37 Do any trustees, staff or volunteers work directly and unsupervised with
children or adults at risk?		 No
38 Have DBS checks been carried out on all the individuals who are eligible
to have them?		 Yes

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

4.0 Reserve Policy for the HCC (CIO) Charity

The HCC (CIO) charity aims to have a minimum bank balance of £25,000 at any given time. The logic for this is summarised in the following table. Note that this logic was formally ratified by the trustees following a trustee meeting.

----- Start of picture text -----
HCC Reserve Policy V1 Jul17
Element Amount Comments
Unknown, unplanned item allowance. This could be:
# Unexpected / temporary drop in income
Unexpected Emergent Need £10,000
# An unexpected emergent cost item
# A short term investment opportunity we don’t want to miss
Lease compliance - decoration £5,000 Cost to replace carpets at end of lease
Lease Compliance - flooring £10,000 Cost to decorate main hall - assumes we have done the rest
Total reserve needed £25,000
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5.0 Asset Register

The buildings and vast majority of the contents of Hutton Community Centre are owned by Brentwood Borough Council. However the following assets are owned by Hutton Community Centre (CIO):

Item Original Value Value at the end of accounting period 6:
Air conditioningunits £10,000 £4,000
Bowls mats £950 £0
Table Tennis Table #1 £350 £175
Access Tower £1,260 £800
Outside Tables £1,530 £1,530

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2021

Inde ndent examin&s re to the trustee5 I report to the truttees on my eyAmi)atKJn of the accounts of ttr Hutton Communrty Centre for the year ended 30 June 2021. Reswn5ib￿ities and bthsis of report As ihe Char￿ tnjstees of the Cenire you are reswnsible for the preparat)n of the accounts in Kcordance wrth the requirements of the Chjrrtses Act 20111't1￿ ACYI. I report ift r6pect of my examrnation of the Centre's accounts ca￿led out under settion 145 of the 2011 kn and in carrying out my eXamIn￿10n I have followed all the aptyKable Directbons gNen by the Charry Commission u￿ler sectK>n 14515llbl of the Act Independent exam￿erf% statement I have £￿￿eted my exarnination. I confirrn that no maierial matters have c(The to rrry attenrion in cOnnec￿n wilh Ihe examination givi￿ me cause to believe that in any material res￿￿". accountingrecofds were not kept in respecrof the Tnjll as required by seaion 130 of the kr.. or 2. accounts do not accord wirh rhose recorts. I hove no cOr￿eMS and have ccrne across no other matter5 in connertDn wilh the examination to which attent￿n shouk1 be drawn in Ihis reF4Jrt in cfder to enable a proper ￿derSta￿j1ng of the accountsto be reached. Narne." Wendy Shorry FCA Date.. 12 October 2021 ReSsrer￿ m Erylaryj MD. 12121260 Rel￿rUel x476 werlw Business certre | CtThway | | E55ei I CA112QE Hutton CommunNty Centre {CIOJ Annuul Report-for Perfvrmunce PerNod Ending 30June 2021