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2022-12-31-accounts

Porlock Recreation Ground

CIO

Trustees’ Annual Report and Accounts for the year ended 31 December 2022 Registered Charity number 1176921

Karen Hanlan Independent Examiner Limited

Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

Index
Page
Report of the Trustees 3-8
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

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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 2022. 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, a dog walking field and a memorial garden.

The facilities are made available for events such as an annual football festival and the Porlock Country Fair which raise 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 organisations and businesses.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

Report of the Trustees continued

ACHIEVEMENTS AND PERFORMANCE

Following the impact of the Covid-19 pandemic in 2020 and 2021, use increased during 2022 and income was as forecast.

Events

All of the events planned for the year were able to take place and these included

Youth Club

The Club continues to be funded from monies received from 2019’s Samworth Brothers Charity Challenge and business support grants from Council and Trustees’ allocated funds to cover the cost of professional youth workers from Minehead Eye until December 2023.

Sports Clubs

All clubs were able to resume their normal seasonal activities in 2022 following the Covid-19 pandemic and had a full programme of training sessions and matches. Rents had been raised in 2021 but were then waived, so it was agreed to charge those rents for 2022 with no further increases being applied. Both the Cricket Club and the Football Club reported financial issues due to lack of funds and decreased membership. It was agreed to discuss future rents to see what could be done to help. New goal posts were purchased for the Football Club.

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. Plans were put in place for the Children’s Play Area to replace much of the wooden play equipment and the zip wire which were beyond repair. The new equipment will be funded from the Investment Fund. In October, a sub-committee was formed to take forward the plans for the Pavilion refurbishment with the agreed primary function of the pavilion being for sport and recreation. It was agreed in December 2022 to appoint an architect to provide some initial drawings based on the feedback collated by the sub-committee.

The Pavilion

The Pavilion had some regular users throughout the year which include the Toddlers group, a Yoga class, a belly-dancing class, a drumming circle and dog grooming. There was also a significant one-off user for a function in connection with the funeral of a well-known local, attended by many.

Children’s Play Area

The Trustees have continued to investigate options for upgrading the current equipment to ensure a safe and attractive environment. The piece of equipment dismantled from the main area in 2021 was replaced in 2022. Quotes had been received and accepted and the work to replace much of the wooden equipment was scheduled for early 2023. A 50% deposit for the equipment ordered was paid in November funded from the Investment Fund.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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. The new timers fitted to the floodlights 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. The contractor increased their hourly rate by 30% during the year which had an impact on the budgeted expenditure. There was minimal extra work undertaken. The Recreation Ground was allocated trees by a joint project between the National Trust and Porlock Parish Council and these were planted in May/June 2022.

FINANCIAL REVIEW

Following concerns regarding the performance of the Investment Fund, it was agreed that two trustees should meet with Church House to review the investments and the risk levels. Whilst the investments had recovered over the year, concern was raised as to why the short-term investment had not performed as well as the long-term investment. A meeting with Church House was arranged for early January 2023 to discuss these issues.

Income

Operational income was as budgeted and was understandably considerably higher than in 2020 and 2021, the main sources being hire of the Pavilion and facilities, rents, the Country Fair and FIT income from the solar panels. All investment income has been reinvested.

Expenditure

Operational expenditure was slightly less than budgeted overall. There were increased maintenance costs due to a rise of 30% charged by the contractor. The increased cost of electricity was offset by government payments and less oil was purchased than anticipated. Tree work, equipment maintenance and training were all less than budgeted whilst tools and equipment purchased included the goal posts purchased as a one-off. For future note, the tree survey has raised concerns about a number of trees which may require costly remedial work in future, perhaps as soon as 2024.

Surplus for the year

The charity made a small operational surplus in the year, before investment losses. The performance of the invested funds was disappointing and the overall funds of the charity at the end of the year stood at £759,658 down by £76,310 compared to the previous year’s figure of £835,968.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

Report of the Trustees continued

Available Funds

At year end the Charity had £675,569 invested and £17,466 cash held at the bank.

Budget

A cautious budget had been agreed by the Trustees for 2022, having anticipated that use and therefore income would return to pre-pandemic levels but some operational costs have increased significantly so a slight loss was forecast. The budget for 2023 reflects the increased operational costs expected due to inflationary pressures, increased maintenance costs and fuel costs, plus reduced income from the affiliated club rents having agreed to waive them in 2023. An injection of funds drawn down from the investments, planned for 2023, has been included to offset what would otherwise be an expected deficit.

Investment and Reserve Policy

The Trustees adopted an updated Investment Policy on 13[th] October 2020.

Specifically with respect to reserves, the policy states:

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 741,302
• Dividends & interest 14,704
• Management fees (2,226)
• Net losses on investments (78,211)
• Market value at the end of the year 675,569

No cash was transferred out of the invested funds in the year.

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Porlock Recreation Ground CIO

Accounts for the year ended 31 December 2022

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 was held on 19[th] April 2022.

Trustees serving during the year

Chair – Duncan McCanlis (appointed as trustee 19[th] April 2022 and Chair 25[th] October 2022) Secretary – Nora Maw (elected 17[th] May 2022)

Treasurer – Lesley Thornton (appointed as trustee 19[th] April 2022 and formally elected as Treasurer 17[th] May 2022)

Sue McCanlis (resigned as Chair 19[th] April 2022, but remained a trustee) Terry Gable (Porlock Parish Council representative) Richard Maw (co-opted 25[th] October 2022) Ian Fraser (re-elected Porlock Cricket Club representative 19[th] April 2022) Andy Briggs (resigned 18[th] April 2023) Jay Horne (Porlock Football Club representative, co-opted 25[th] October 2022) Phil Kenward (Porlock Bowling Club representative, co-opted 25[th] October 2022) Kim Ely (appointed as trustee 19[th] April 2022. Resigned 18[th] April 2023)

Emma Child and Anna Toeman retired from office as Secretary and Treasurer respectively at the ACM 19[th] April 2022

Trustee and volunteer recruitment

Following a concerted effort to recruit new trustees from the community, there were 11 trustees on the Committee until the 2023 ACM on 18[th] April 2023.

Only the Representative Trustee position for Porlock Vale Tourist Association remained unfilled.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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

Approved by the Board and signed on its behalf by:

Date: 17[th] October 2023

Duncan McCanlis Chair

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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:

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:

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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 2022 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: 17 October 2023

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Porlock Recreation Ground CIO

Accounts for the year ended 31 December 2022

Statement of Financial Activities

Note
Income:
Donations and legacies
1
Charitable activities
2
Other trading activities
3
Investments – bank interest
Investments – dividends
Total income
Expenditure on:
Raising funds
4
Charitable Activities
4
Total expenditure
Net (losses)/gains on investments
Net (expenditure)/income and
net movement in funds
Reconciliation of funds
Total funds brought forward
Transfer of funds
Total funds carried forward		 Un-
restricted
funds
Restricted
funds
Total
funds
2022
Total
funds
2021
£
£
£
£
2,667
-
2,667
19,967
6,863
-
6,863
7,778
6,877
-
6,877
2,171
140
-
140
18
14,596
-
14,596
13,845
31,143
-
31,143
43,779
3,754
-
3,754
2,925
24,232
2,500
26,732
34,348
27,986
2,500
30,486
37,273
(78,211)
-
(78,211)
33,434
(75,054)
(2,500)
(77,554)
39,940
835,968
1,244
837,212
797,272
(1,256)
1,256
-
-
759,658
-
759,658
837,212

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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Porlock Recreation Ground CIO

Accounts for the year ended 31 December 2022

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		 2022
2021
£
£
54,081
67,294
675,569
741,302
729,650
808,596
13,192
776
17,466
28,340
30,658
29,116
(650)
(500)
30,008
28,616
759,658
837,212
-
1,244
753,414
828,468
6,244
7,500
759,658
835,968
759,658
837,212

The accompanying accounting policies and notes form part of these financial statements.

Approved by the Trustees and signed on their behalf by:

Lesley Thornton Duncan McCanlis Treasurer Chair

Date: 17[th] October 2023

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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
Grants – Covid support from Somerset West & Taunton Council		 2022
2021
£
£
-
75
2,667
19,892
2,667
19,967

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Porlock Recreation Ground CIO

Accounts for the year ended 31 December 2022

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 - £2,500 restricted (2021: £5,000)
Depreciation
Professional fees
Independent Examiner’s fee
Total		 2022
2021
£
£
1,513
1,518
3,261
3,958
2,089
2,302
6,863
7,778
2022
2021
£
£
6,132
1,971
745
200
6,877
2,171
2022
2021
Total
Total
£
£
1,528
686
2,226
2,239
3,754
2,925
4,406
3,865
766
433
1,081
1,013
9
6
1,742
4,130
295
-
1,142
51
180
239
342
114
2,500
7,711
13,213
15,901
406
385
650
500
26,732
34,348

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

Notes to the financial statements (continued)

5. Staff costs, trustee remuneration and expenses

The charity employs no staff (2021: none).

The charity’s Trustees were not paid nor received any other benefits from employment in the year (2021: £nil). Trustee expenses, relating to expenses and equipment paid for on behalf of the Committee, were reimbursed to one Trustee totalling £189.63 in the year (2021: 3 Trustees, £401.96)

Mrs Terry Gable, Trustee, received a total of £1,180 for cleaning services provided during the year (2021: £1,070).

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 2022
At 31 December 2021		 Buildings
and facilities
£
Plant,
machinery
and
equipment
£
Total
£
49,181
69,820
119,001
-
-
-
49,181
69,820
119,001
10,635
41,072
51,707
2,062
11,151
13,213
12,697
52,223
64,920
36,484
17,597
54,081
38,546
28,748
67,294

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

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
Deposits
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		 2022
£
2021
£
721,992
628,913
-
-
22,800
59,645
(78,211)
33,434
666,581
721,992
694,620
671,911
166,099
179,071
192,987
198,057
148,480
166,706
63,522
78,164
43,215
64,617
52,279
35,377
666,581
721,992
8,988
19,310
675,569
741,302
2022
2021
£
£
914
776
12,278
-
13,192
776
2022
2021
£
£
650
500
-
-
650
500
£
£
-
1,247
-
(1,247)
-
-
-
-

Deferred income relates to rental income received in advance.

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Porlock Recreation Ground CIO Accounts for the year ended 31 December 2022

Notes to the financial statements (continued)

10. Restricted funds

0. Restricted funds
2022
Balance
at
beginning
of year
£
Youth Worker Fund
1,244		 Movement in Funds
Income
Expenditure
£
£
-
(2,500)		 Transfers
Balance
at end
of year
£
1,256
-
2021
£
Youth Worker Fund
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 £6,244 have been set aside by Trustees to support the Porlock Youth Club 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 (2021 none).

13. Controlling Interests

The Charity is controlled by the Trustees.

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