## Porlock Recreation Ground
CIO
Trustees’ Annual Report and Accounts for the year ended 31 December 2021 Registered Charity number 1176921
Karen Hanlan Independent Examiner Limited
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
|**Index**||
|---|---|
||**Page**|
|Report of the Trustees|3-7|
|Reference and Administrative Information|8|
|Statement of Trustees’ Responsibilities|9|
|Report of the Independent Examiner|10|
|Statement of Financial Activities|11|
|Balance sheet|12|
|Principal Accounting Policies|13-14|
|Notes to the financial statements|14-18|
2
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Report of the Trustees**
The trustees of the Porlock Recreation Ground registered charity number 1176921 (“the Charity”) have pleasure in presenting their Annual report and Accounts for the year ended 31 December 2021. The financial statements comply with the Charities Act 2011, the Charity’s Governing Document and 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) (updated 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
The objectives of the Charity are set out in its Constitution. Paraphrasing, the Charity’s objective is to retain, manage and promote Porlock Recreation Ground for the benefit of Porlock’s inhabitants and visitors. In the interests of social welfare, the land is to be used for the provision of facilities for recreation or other leisure time occupation.
The charity achieves its objects by the following principal activities and in planning such activities the Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit.
The principal activity is the provision and upkeep of about nine acres of open space and facilities for recreational use by all the people of the village of Porlock and visitors to the village. To this end, the charity provides and maintains a pavilion, sports pitches (two football, one cricket), a tennis court, multi-sport court, children's playground, toddlers’ playground and a memorial garden.
The facilities are made available for events such as an annual football festival and the Porlock Country Fair which raises funds for the charity and is well attended by local people, visitors, non-profit organisations and local businesses.
Public benefit is derived from use of the facilities, most of which are free of charge. Open spaces are regularly used for physical exercise by walkers as well as participants in organised and _ad hoc_ sport. The children’s play area is popular with children and parents who gain enjoyment and exercise from its use. The floodlit tennis court and multi-use games area also provide an opportunity for exercise and social interaction. The Pavilion is available to rent at low cost for events and use by local organisations and businesses.
3
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Report of the Trustees continued**
## **ACHIEVEMENTS AND PERFORMANCE**
The early part of the year was again affected by the Covid-19 pandemic and the lockdown had some impact on the use of the Recreation Ground, particularly use of the Pavilion. However, with the easing of restrictions, use increased from May onwards and with some significant one-off hirers income was better than forecast.
## **Events**
Unfortunately, the ESF Football Festival had to be cancelled because restrictions meant there was insufficient accommodation available locally for all the visiting teams. However, most of the other events planned for the year were able to take place and these included
- An Evening of Summer Song
- Porlock Village Fete (a scaled-down version of the Country Fair)
- Fun Run
- Porlock Hill Climb
## **Youth Club**
The Club continues to be funded from monies received from 2019’s Samworth Brothers Charity Challenge. This covers the cost of professional youth workers from Minehead Eye. There was little activity in the early part of the year but since sessions resumed in March the Club has gone from strength to strength. The Recreation Ground was eligible for business support grants from SW&T Council and Trustees allocated funds to continue support to the Youth Club until December 2023.
## **Sports Clubs**
As with other users, the football and bowls clubs were affected by lockdown restrictions in the early part of the year. However, with the easing of restrictions all clubs, including the cricket club, were able to resume their normal seasonal activities and had a full programme of training sessions and matches. The income for all clubs had been severely reduced during 2020 and the Trustees allocated some of the business support grants to benefit their major users and did not collect annual ground rents from the sports clubs, or St Dubricius School.
## **Future plans and use of the Susan Taylor legacy**
Trustees have continued to consider options and plans for one or two capital projects that have been enabled by the legacy monies. One project that came to fruition in 2021 was resurfacing in the Children’s Play Area with Tiger Mulch to improve safety and appearance.
## **The Pavilion**
The Pavilion had some regular users throughout the year which include the Toddlers group, a Yoga class, a belly-dancing class and Exmoor Adventures. There were also some significant one-off users such as Pleasure Dome Theatre Company who needed rehearsal space and Stacked Wonky who held a week-long Summer Academy for children.
## **Children’s Play Area**
The Trustees have continued to investigate options for upgrading the current equipment to ensure a safe and attractive environment. A new piece of equipment has been installed in the toddler area and one piece has had to be dismantled from the main area, but it is hoped that this can be replaced soon.
4
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Report of the Trustees continued**
## **Multi Use Games Area & Tennis Courts**
These facilities have been used throughout the year by ad-hoc and organised groups such as the Tennis Club. New timers have been fitted to the floodlights to ensure they are used within the terms of the planning permission that was granted for their installation.
## **Grounds maintenance, trees and hedges**
The grounds continued to be maintained throughout the year. There was minimal work undertaken on our trees but clearing and soil-levelling was carried out under the copper beech to make the area more attractive as a seating area. The Recreation Ground has been allocated trees by a joint project between the National Trust and Porlock Parish Council and planting is due to take place in early 2022.
## **FINANCIAL REVIEW**
The Covid-19 pandemic continued to have some impact on the operations of the charity, especially in the early part of the year. However, with the easing of restrictions usage increased and although it didn’t reach pre-pandemic levels, made a good recovery on the year before.
## **Income**
Operational income, ignoring the Covid support grants received, was slightly higher than 2020 but still a long way below 2019. However, that had been an exceptional year with the Samworth Brothers event and a very good Country Fair. Discounting those two events, operational income was on a par with 2019 with the main sources being hire of the Pavilion and facilities and FIT income from the solar panels. There was significant income in covid support grants from Somerset West & Taunton Council and high income from investments reflected a strong recovery in the markets. All investment income has been reinvested.
## **Expenditure**
Operational expenditure was higher than in 2020 but did include a significant project to relandscape an area which had become a bit of an eyesore (£3,000). It is now a pleasant place to sit in the shade of a copper beech. Running costs were otherwise slightly lower than in 2020. There was also considerable investment in the children’s play area with re-surfacing improving both the appearance and safety.
## **Loss for the year**
Although the impact of the pandemic was considerably less than in 2020 its effects were still being felt and the charity made another operational loss in the year. However, the performance of the invested funds along with the Covid support grants received, offset the operational loss and the overall assets of the charity at the end of the year stood at £835,968.
5
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Report of the Trustees continued**
## **Available Funds**
At year end the Charity had £741,302 invested and £28,340 cash held at the bank.
## **Budget**
A cautious budget has been agreed by the Trustees for 2022. It is anticipated that use and therefore income will return to pre-pandemic levels but some operational costs have increased significantly so a slight loss is forecast.
## **Investment and Reserve Policy**
The Trustees adopted an updated Investment Policy on 13[th] October 2020.
Specifically with respect to reserves, the policy states:
- _“6.1 Maintenance of reserves_
_At each General Meeting of the Management Committee, the Treasurer will report a summary of the Charity’s cash flow and reserves. Trustees will review the Treasurer’s report to ensure that the Charity has adequate reserves to meet its commitments.”_
Reserves in this respect are adequate and comply with the policy. The Investment Policy also sets aside £100,000 in reserve to cover any potential operating losses in future years. These funds are included in the investments (see Investment Performance below).
## **Investment Performance**
Whilst a large portion of the invested funds remains in the Church House Funds, the Investment Manager has allocated some monies to alternative securities to provide some diversification. Both short-term and long-term funds are invested in financial assets that have suitable liquidity to enable encashing as appropriate.
A summary of the changes to invested funds is as follows:
|||£|
|---|---|---|
|•|Market value at start of the year|696,263|
|•|Dividends|13,845|
|•|Management fees|(2,240)|
|•|Net gains on investments|33,434|
|•|Market value at the end of the year|741,302|
No cash was transferred out of the invested funds in the year.
6
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Report of the Trustees continued**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
Porlock Recreation Ground CIO was registered as a Charity on 31 January 2018 and is governed by its Constitution dated 31 January 2018.
## **Appointment of trustees**
Trustees can be elected at the Charity’s Annual Community Meeting (ACM), appointed by invitation to join the Committee as a co-opted trustee or are nominated by specific local organisations defined in the Constitution. Trustees agree to appointment on the basis that they have the necessary skills, experience and time to contribute to the Charity’s activities and to be able to discharge their obligations as Trustees.
## **Annual Community Meeting (ACM)**
The ACM is scheduled to be held on 19[th] April 2022.
## **Trustees serving during the year**
**Chair –** Sue McCanlis (appointed as trustee 20[th] April and Chair 18[th] May 2021) Robert Longley (resigned as Chair and trustee 30[th] April 2021) **Secretary –** Emma Child **Treasurer –** Anna Toeman Terry Gable (Porlock Parish Council representative) Nora Maw Ian Fraser (Porlock Cricket Club representative) Brian Binnie (Porlock Football Club representative) (resigned 16[th] November 2021) Andy Briggs Chris Jones (co-opted 21[st] September 2021)
## **Trustee and volunteer recruitment**
With a number of trustee vacancies, attempts to recruit new trustees from the community will be progressed prior to the ACM on 19[th] April.
The Representative Trustee positions for Porlock Vale Tourist Association, Porlock Football Club and Porlock & District Bowling Club remain unfilled.
7
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Reference and Administrative Information**
**Charity Number:** 1176921
## **Registered Office:**
The Pavilion Porlock Recreation Ground Parsons Street Porlock Somerset TA24 8QJ
## **Independent Examiner:**
Karen Hanlan, ACA Karen Hanlan Independent Examiner Limited 1 Saracen Close Ettington CV37 7SZ
**Bankers:**
The Co-op Bank PLC PO Box 101 1 Balloon Street Manchester M60 4EP
**Investment Managers:** Church House Investment Management York House 6 Coldharbour Sherbourne Dorset, DT9 4JW
## **Legal advisors:**
Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR
8
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Statement of Trustees’ Responsibilities**
The Trustees are responsible for preparing the Trustees’ Annual Report and the accounts in accordance with applicable law, UK Accounting Standards and the Charities Act 2011.
The trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the surplus or deficit incurred by the Charity for that year. In preparing those financial statements the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to exist.
The trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011.
They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:
- the Charity is operating efficiently and effectively;
- its assets are safeguarded against un-authorised use or disposition;
- proper records are maintained and financial information used within the Charity or for publication is reliable;
- the Charity complies with relevant laws and regulations.
Approved by the Board and signed on its behalf by:
Date: 2 April 2022
Sue McCanlis Chair
9
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Independent Examiner’s Report to the Trustees of Porlock Recreation Ground CIO (‘the Charity’)**
I report to the charity trustees on my examination of the accounts of the Charity for the period ended 31 December 2021 which are set out on pages 11 to 18.
## **Responsibilities and basis of report**
As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act 2011 and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Karen Hanlan ACA, ACIE Karen Hanlan Independent Examiner Ltd 1 Saracen Close Ettington CV37 7SZ
Date: 2/4/2022
10
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Statement of Financial Activities**
|**Note**
**Income:**
Donations and legacies
1
Charitable activities
2
Other trading activities
3
Investments – bank interest
Investments – dividends
Other income – insurance claim
**Total income**
**Expenditure on:**
Raising funds
4
Charitable Activities
4
**Total expenditure**
Net gains on investments
**Net income/(expenditure) and**
**net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Un-**
**restricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**2021**
**Total**
**funds**
**2020**
**£**
**£**
**£**
**£**
19,967
-
19,967
2,405
7,778
-
7,778
6,117
2,171
-
2,171
-
18
-
18
512
13,845
-
13,845
4,161
-
-
-
1,169|
|---|---|
||**43,779**
**-**
**43,779**
**14,364**|
||2,925
-
2,925
29
29,348
5,000
34,348
30,663|
||**32,273**
**5,000**
**37,273**
**30,692**|
||33,434
-
33,434
19,691|
||**44,940**
**(5,000)**
**39,940**
**3,363**
**791,028**
**6,244**
**797,272**
793,909|
||**835,968**
**1,244**
**837,212**
**797,272**|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
11
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Balance Sheet**
|Notes
**Fixed assets**
Tangible assets
6
Investments
7
**Current Assets**
Debtors
8
Cash at bank and in hand
**Total current assets**
**Current Liabilities**
Creditors: amounts falling due within one year
9
**Net current assets**
**Net assets**
**Funds of the Charity:**
Restricted Funds
10
Unrestricted Funds - general
Unrestricted Funds - designated
11
Unrestricted Funds - total
**Total funds of the Charity**|**2021**
**2020**
**£**
**£**
**67,294**
52,979
**741,302**
696,263|
|---|---|
||**808,596**
749,242
**776**
755
**28,340**
48,922|
||**29,116**
49,677
**(500)**
(1,647)|
||**28,616**
48,030|
||**837,212**
**797,272**|
||**1,244**
6,244
**828,468**
791,028
**7,500**
-|
||**835,968**
791,028|
||**837,212**
**797,272**|
The accompanying accounting policies and notes form part of these financial statements.
Approved by the Trustees and signed on their behalf by:
Anna Toeman Sue McCanlis Treasurer Chair
Date: 2 April 2022
12
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Principal accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (updated 1 January 2019) – (Charities SORP FRS 102), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The 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 note(s).
The financial statements have been prepared on a going concern basis which assumes that the charity will continue to operate. The validity of this assumption is dependent upon the continuance of support from its supporters. The charity’s business plan shows that the charity will be able to operate in the foreseeable future. Based on this understanding the trustees believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments, which would result from the basis of preparation being inappropriate.
## **Funds**
General accumulated funds are unrestricted funds available for general purposes and include funds designated for a particular purpose; the use of such funds remains at the discretion of the trustees.
Restricted funds are funds subject to conditions imposed by the donor or by specific terms of the appeal under which the funds are raised. The restrictive conditions are binding upon the Charity.
## **Income and expenditure**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Irrecoverable VAT is allocated to the expense heading to which it relates in accordance with standard accounting practice.
13
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Principal accounting policies (continued)**
## **Investment income receivable**
Dividends and bank interest are shown on the basis of amounts receivable in the year.
## **Tangible fixed assets**
Depreciation is provided at a rate calculated to write off the cost on a straight line basis over a period of less than the estimated useful life of the assets as follows:
Buildings and facilities - 10 years Plant, machinery and equipment - 5 years
Fixed assets are capitalised when their costs exceed £250.
## **Fixed Asset Investments**
Fixed asset investments are included at market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Creditors**
Creditors are recognised when the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## **Taxation**
As a registered charity no provision is considered necessary for taxation.
## **Notes to the financial statements**
## **1. Income from donations and legacies**
|**Income from donations and legacies**||
|---|---|
|Donations (2020 - £500 restricted)
Grants – Covid support from Somerset West & Taunton Council|**2021**
2020
**£**
£
**75**
2,405
**19,892**
-|
||**19,967**
2,405|
14
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Notes to the financial statements (continued)**
## **2. Income from charitable activities**
|**2. Income from charitable activities**||
|---|---|
|Hire of facilities
Rents payable by clubs
Energy payments
**3. Income from other trading activities**
Village Fete
Other
**4. Analysis of expenditure**
Fundraising – costs of events
Investment managers fees
Maintenance/cleaning
Utilities and fuel
Insurance
Print, postage & stationery
Repairs & equipment
Tree work
Tools & equipment
Equipment maintenance
Sundry expenditure
Grants given – inc £5,000 restricted
Depreciation
Professional fees
Independent Examiner’s fee
**Total**|**2021**
2020
**£**
£
**1,518**
1,205
**3,958**
2,467
**2,302**
2,445|
||**7,778**
6,117|
||**2021**
2020
**£**
£
**1,971**
-
**200**
-|
||**2,171**
-|
||**2021**
2020
**Total**
Total
**£**
£
**686**
21
**2,239**
8|
||**2,925**
29|
||**3,865**
3,238
**433**
1,709
**1,013**
1,049
**6**
34
**4,130**
3,446
**-**
400
**51**
104
**239**
339
**114**
97
**7,711**
4,256
**15,901**
12,958
**385**
2,633
**500**
400|
||**34,348**
30,663|
15
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Notes to the financial statements (continued)**
## **5. Staff costs, trustee remuneration and expenses**
The charity employs no staff (2020: none).
The charity’s Trustees were not paid nor received any other benefits from employment in the year (2020: £nil). Trustee expenses, relating to expenses and equipment paid for on behalf of the Committee, were reimbursed to three Trustees totalling £401.96 in the year (2020: 3 Trustees, £341.25)
Mrs Terry Gable, Trustee, received a total of £1,070 for cleaning services provided during the year (2020: £510).
## **6. Tangible fixed assets**
|**Cost**
At beginning of year
Additions
At end of year
**Depreciation**
At beginning of year
Charge for the year
At end of year
**Net Book Value**
**At 31 December 2021**
**At 31 December 2020**|**Buildings**
**and facilities**
**£**
**Plant,**
**machinery**
**and**
**equipment**
**£**
**Total**
**£**
49,181
39,604
88,785
-
30,216
30,216|
|---|---|
||49,181
69,820
119,001|
||8,573
27,233
35,806
2,062
13,839
15,901|
||10,635
41,072
51,707|
||**38,546**
**28,748**
**67,294**|
||**40,608**
**12,371**
**52,979**|
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**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Notes to the financial statements (continued)**
## **7. Fixed asset investments**
|**7. Fixed asset investments**||
|---|---|
|**Listed Investments**
Market value at beginning of period
Disposal proceeds
Additions (including dividends reinvested)
Net gains in year
**Market value at end of year**
**Historic cost at end of year**
Church House Tenax Absolute Return Strategic Fund
Church House Investment Grade fixed interest
Church House Balanced Equity income
Church House UK Equity Growth
UK Equity investments
International Equity investments
Total investments
Cash awaiting investment
**Total portfolio**
**8. Debtors**
Prepayments
Income receivable
**9. Creditors: amounts falling due within one year**
Accruals
Deferred income
Movements in deferred income are as follows:
At beginning of year
Released to income in year
Deferred in year
At end of year|**2021**
**£**
2020
£
**628,913**
568,418
**-**
(406,500)
**59,645**
447,304
**33,434**
19,691|
||**721,992**
628,913|
||**671,911**
670,332|
||**179,071**
**177,713**
**198,057**
**205,556**
**166,706**
**122,196**
**78,164**
**50,525**
**64,617**
**43,813**
**35,377**
**29,110**|
||**721,992**
**628,913**|
||**19,310**
**67,350**|
||**741,302**
**696,263**|
||**2021**
2020
**£**
£
**776**
755
**-**
-|
||**776**
755|
||**2021**
2020
**£**
£
**500**
400
**-**
1,247|
||**500**
1,647|
||£
£
**1,247**
1,388
**(1,247)**
(1,388)
**-**
1,247|
||**-**
1,247|
Deferred income relates to rental income received in advance.
17
**Porlock Recreation Ground CIO Accounts for the year ended 31 December 2021**
## **Notes to the financial statements (continued)**
## **10. Restricted funds**
|**. Restricted funds**||
|---|---|
|Youth Worker Fund
Toddler Group
Total|**Movement in Funds**
**Balance**
**at**
**beginning**
**of year**
**Income**
**Expenditure**
**Balance**
**at end**
**of year**
£
£
£
£
6,244
-
(5,000)
1,244
-
-
-
-|
||6,244
-
(5,000)
1,244|
In 2019 a charity fundraising event at the recreation ground raised funds for a number of charitable causes and £10,000 was granted by the Samworth Brothers Charity to fund the Youth Worker for a further 2 years.
## **11. Designated funds**
Funds totalling £7,500 have been set aside by Trustees to support the Porlock Youth Club from July 2022 through to December 2023.
## **12. Transactions with related parties**
Other than the above and that detailed in note 5, there were no transactions with related parties during the year that require disclosure in these financial statements (2020 none).
## **13. Controlling Interests**
The Charity is controlled by the Trustees.
18