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2022-06-30-accounts

- Hutton Community Centre (CIO) Statement of Accounts, 2021/22

These are the annual accounts for HCC (CIO). It is the sixth 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 the fifth annual report.
Period 7 1/7/21 to 30/6/22 For the sixth 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. There have been no changes to the trustee group during the sixth year of operation.

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 2022

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 July2023
Hope CommunityChurch Partner £5,000 Repaid May2022
The Lighthouse Project Partner £5,000 Repaid July 2021.
Note that Lighthouse generously allowed a
payment of £2,500 to cover this, effectively
givingHCC a donation of £2,500.
David Woods Former
Trustees		 £1,000 Repaid April 2019
Brian Darwood £1,000 Repaid April 2019

The extension requests to the outstanding loan were made in June 2020 and April 2022. 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:

What Period Generated By Reviewed By
Operations Report Periodically Centre Manager Trustee/Partnergroup
Financial SummaryReport Periodically Treasurer Trustee/Partnergroup

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

Usage Reports Periodically Treasurer Trustee/Partnergroup
Report to BBC Annually Treasurer Trustees
Report to CharityCommission Annually Treasurer Trustees

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 7. There are 3 elements of content:

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

2.1 Accounting Period 6 (01/07/21 to 30/6/22)

Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22) Section A Receipts and payments - Period 7 (01/07/21 - 30/6/22)
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 1,000 16,315 - 17,315 14,347 P6.1
Hire and Deposit Income 104,752 - - 104,752 44,190 P6.2
COVID relatedgrants fromgovernment - - - - 25,146 P6.3
Refunds from External Sources 150 - - 150 3,036 P6.4
Café Income 23,120 - - 23,120 4,800 P6.5
- - - - -
A1 Sub total(Gross income for the
Annual Return)
129,022		 16,315 - 145,337 91,519
A2 Asset and investment sales
None - - - - -
- - - - -
A2 Sub total - - - - -
Total receipts 129,022 16,315 - 145,337 91,519
A3 Payments
Staff Cost excl Café Salaries 37,037 - - 37,037 29,020 P6.6
Café Staff Salaries 20,731 - - 20,731 10,581 P6.7
Café Costs 1,910 - - 1,910 350 P6.8
Utilities 13,038 - - 13,038 8,517 P6.9
Maintenance,Contractors & Materials 8,087 8,087 9,536 P6.10
Investments and Donations 14,368 12,243 26,611 10,849 P6.11
Insurances 3,991 - - 3,991 1,752 P6.12
Licences,Event Costs,Marketing 953 - - 953 1,018 P6.13
Misc Purchased Items 1,804 - - 1,804 90 P6.14
Rent and Council Rates 10,179 10,179 10,500 P6.15
Hire & Deposit Refunds 2,215 - - 2,215 2,703 P6.16
AccountancyServices 763 763 1,440 P6.17
Other Bought in Services - - - - - P6.18
Donations Related to COVID - - 709 P6.19
Loans Repaid 7,500 - - 7,500 - P6.20
**A3 Sub total ** 122,576 12,243 - 134,819 87,065
A4 Asset and investmentpurchases
Outside tables / awnings for café - - - - 1,530 P6.21
Inside tables for café 2,624 2,624 P6.21
Defibrillator 1,079 1,079 P6.21
New laserprinter 700 700 P6.21
Laptops for Access Project - 5,000 - 5,000 - P6.21
**A4 Sub total ** 4,403 5,000 - 9,403 1,530
Totalpayments 126,979 17,243 - 144,222 88,595
Net of receipts/(payments) 2,043 - 928 - 1,115 2,924
A5 Transfers between funds - - - - -
A6 Cash funds lastperiod end 70,247 13,800 -
84,047		 81,123
Cash funds thisperiod end 72,290 12,872 -
85,162		 84,047

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

----- Start of picture text -----
P6.22 P6.23 P6.24 P6.24 P6.24 P6.24 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
84,047 - - 5,000 - - - 4,000 - 175 800 1,530 - - - 20,000 15,000 1,000 3,000 -
(optional) (optional) (optional)
to nearest £ to nearest £ Current value Current value Amount due
85,162 - - 5,000 - - - 2,000 - - 400 750 2,624 1,079 700 5,000 10,000 15,000 - - 2,000
to nearest £ to nearest £ When due (optional)
- - - - - Total Cost (optional) - - Cost (optional) - -
to nearest £ to nearest £
Fund to which asset belongs Fund to which asset belongs Fund to which liability relates
14,800 - - - - Total Total
to nearest £ to nearest £
70,362 - - 5,000 -
Total cash funds
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 Inside tables for café Defibrillator New laser printer Laptops for COVID acccess Remaining loans from partner organisations and trustees Redecoration of Community Centre (required at end of lease) Annual insurance costs (excl buildings) - not paid before 1/7 Second payment for centre relighting project Outstanding water bill payment
Notes
Last Period 84,047 Last Period 5,000 - 6,505 39,000
Total funds 85,162 Total funds 5,000 - 12,553 27,000
funds funds
Endowment - Endowment - - Total
funds funds
Restricted Restricted
14,800
funds funds
Unrestricted 70,362 Unrestricted
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
----- End of picture text -----

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

Notes to the accounts Period 7 – 1/7/21 to 30/6/22

Notes to the accounts
Period 7 – 1/7/21 to 30/6/22		 Notes to the accounts
Period 7 – 1/7/21 to 30/6/22
Note # Comments
General This period is the sixth full year of operation of the charity under the lease with BBC.
The practice of segregating restricted funds was started in the accounts last year, and has been
continued this year. Although the presentation of the accounts does not split out all of the detail of
the restricted funds,this can beprovided on request.
P6.1 Donations/fundraising in this period were made by two of the trustees, by a local care home, by
Brentwood Borough Council,byEssex CountyCouncil,and bya national buildingfirm.
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. This occurred duringboth of theprevious accounting periods but there was none in 21/22.
P6.4 This is a refund made from thepurchase of some equipment.
P6.5 This item is the revenue from café operations. This represents income net of food, consumables 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 three 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 7 this was
typicallythree employees,all of whom are employedpart time.
P6.8 This line shows thepurchase of smaller items of equipment for the café/kitchen.
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 7, this has included some further upgrade of the centre’s electrical wiring, and the
conclusion of the investment in the 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 7 includes two payments for the miscellaneous insurances as the payment for the previous
year was onlymadepost 1/7/21.
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 For period 7 this excludes the items shown in section A4 (inside tables, defibrillator, new laser
printer,laptops)but includes a number of smaller items.
P6.15 The payment of rent to Brentwood Borough Council as per the terms of the lease, and the payment
of business rates.
P6.16 The return of hire charges to hirers due to cancellations/errors,plus the return of deposits.
P6.17 Charges for examiningthe annual accounts of the charity,plus bank charges.
P6.18 No charges in this categoryduring period 7.
P6.19 No charges in this categoryduring period 7.
P6.20 During period 7, the loans were repaid to TheLighthouse Furniture Projectand also toHope
Community Church. It should be noted that the Lighthouse Project formally accepted a lower
repayment of £2,500 vs the loan of £5,000.
P6.21 A number of material items are routinely purchased in the operation of the community centre.
Where these have use over time (multi year) and have a material value of at least c.£1000, they are
itemised separatelyhere. See also section 5.0 for an asset register type summary.
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.

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

In terms of the restricted funds, these currently represent a past funding award from ECC towards
the roofproject(£10,000)and also multiple donations towards the electrical upgrade work(£4,800).
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 These represent the current (depreciated) values of material items which have been purchased for
multiyear centre use. More information can be seen in section 5.0.
P6.25 To create working capital. Received from a combination of partner organisations and trustees. None
of these are restricted/endowment funds. As of the end ofperiod 7 there is onlyone remainingloan.
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 2022

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 2021-2022 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?		 Nosee note below
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
15 How many grants did your charity receive from central government or a
local authority?		 Three
16 What was the total value of the grants held from central government or a
local authority?		 £8,800
(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?		 5
36 During the financial period for this annual return, did your charity review
its financial controls?		 Yes – in June 2022
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

Note to Item 4:

In May 2022, there was a disagreement within the trustee group relating to some operational elements of the community centre. When an internal resolution was initially not possible, one of the trustees became very frustrated and submitted a complaint of a serious incident to the charity commission. Following further trustee group discussions, this complaint was then withdrawn. The trustee group believes this was only ever an operational matter and did not align with any of the definitions of a serious incident, and that this matter is now behind us.

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

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.

Element Amount Comments
Unexpected emergent need £10,000 Unexpected / unplanned allowance. Could be but not
limited to:
•
Unexpected / temporary drop in revenue
•
An unexpected emergent cost item
•
A short term investment opportunity we don’t want to
miss
Decoration at the end of the lease £5,000 Although we are re-decorating as we go, this is an allowance
to do some additional work as may be required by the
conclusion of the lease
Flooring replacements at the end
of the lease		 £5,000 Although we are gradually replacing floor coverings in some
areas, this is also an allowance to do some additional work
as maybe required bythe conclusion of the lease
Total agreed reserve £25,000

5.0 Asset Register

The buildings and 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 7:
Air conditioningunits £10,000 £2,000
Table Tennis Table #1 £350 -
Access Tower £1,260 £400
Outside Tables £1,530 £750
Inside tables for cafe £2,624 £2,624
Defibrillator £1,079 £1,079
New laserprinter £700 £700
Laptopfor COVID access £5,000 £5,000

Hutton Community Centre (CIO) Annual Report – for Performance Period Ending 30 June 2022

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