The Wesley Centre (Malton)
Report of the Trustees and Unaudited Financial Statements for the year ended
31 August 2023
Registered Charity Number: 1181629
The Wesley Centre (Malton)
Contents of the Financial Statements for the Year Ended 31 August 2023
Page Reference and Administrative Details Report of the Trustees Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements
The Wesley Centre (Malton)
Reference and Administrative Details for the Year Ended 31 August 2023
| Trustees | P Emberley | |
|---|---|---|
| Dr N V Hardwick | ||
| R Lukey | ||
| J Cunningham | ||
| J H Capstick | Resigned 29 March 2023 | |
| Mrs R Hadfield | ||
| A Lonsdale | ||
| Mrs A Lonsdale | ||
| Mrs S Harrison | ||
| Principal address | The Wesley Centre | |
| 10-12 Saville Street | ||
| Malton | ||
| North Yorkshire | ||
| YO17 7LL | ||
| Registered charity number | 1181629 | |
| Independent examiner | Ashby Berry Coulsons | |
| 2 Belgrave Crescent | ||
| Scarborough | ||
| North Yorkshire | ||
| YO11 1UB | ||
| Bankers | Barclays Bank plc | |
| Leicester | ||
| LE87 2BB |
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The Wesley Centre (Malton)
Report of the Trustees for the Year Ended 31 August 2023
The trustees present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Objectives and activities
Objectives
To further or benefit the residents of Malton, and the district of Ryedale, without distinction of sex, sexual orientation, race or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the residents
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To advance the Christian religion in Malton, and the district of Ryedale for the benefit of the public through the provision and maintenance of the Wesley Centre for use as a place of worship.
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To advance the education of the public through the preservation and maintenance of the Grade II* listed Wesley Centre Malton building (formerly known as Malton Methodist Church).
Public benefit
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. Details of how the charity has carried out its activities for public benefit are given in the achievements and performance section below.
Achievement and performance
During the year, the third Phase of major works to restore and transform the Wesley Centre continued. This will facilitate much greater use of the large main auditorium space by the wider community, including its partial re-purposing as a classical concert venue. The first element of this Phase commenced on site in November 2022. This work has included the removal of all the remaining ground floor fixed pews (bar two examples, which have restored and re-positioned at the sides of the main space, as a lasting symbol of the buildings’ heritage).
The first nine months saw the installation of all new building services, hidden from view beneath the floor substrate; this included pipework, ducting and cabling for new heating and ventilation systems, three-phase electrical power, audio visual systems, and controls for lighting and data/wi-fi. All the large stain-glass windows have been meticulously restored, a new eco-efficient heating and ventilation system, a new entrance lobby created, and a new feature oak floor laid. Provision has been made in the works for a new accessible WC, dedicated facilities for the Malton Free Fridge, and for a new community café. The building has been re-decorated to a high standard throughout.
The national conservation officer of the Methodist Church has remarked that the quality of the restoration itself and of the transformative works at the Wesley Centre, is amongst the highest she has seen. In no small part, this is testament to the meticulous efforts and expertise expressed by the project architect, Rogerson Ltd., and to the main contractor, Pinnacle Conservation Ltd.
Work on this Phase continued after the year-end, and the majority of all these activities are planned for completion by September 2024, with a proposed soft re-opening for some users during that month.
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The Wesley Centre (Malton)
Report of the Trustees for the Year Ended 31 August 2023
Achievement and performance - continued
Enquiries and confirmed bookings for the available ‘new’ space is already high from a number of local community organisations, including as a rehearsal space for no less than four local choirs, for a number of book launches, as well as classical concerts. For the most part, the available evening slots are already close to capacity between September 2024 and March 2025, with regular activities being hosted on at least four days each week.
The Wesley Centre continued its successful track record of fundraising during the year with a number of new grants received, most notably including a second major grant received after the year-end from Benefact Trust, of £100,000. To date, a total of more than £2 million has been invested in delivering the scheme’s overall vision. The Wesley Centre is most grateful to all its benefactors and grant making organisations for their very generous support. Please see Note 15 for details of the relationship between the Wesley Centre and Malton Methodist Church.
Plans for future periods
Intensive work also continued during the year on new fundraising initiatives and detailed preparations with the project's architect and design team for the detailed plans associated with the final element, Phase 4. This comprises the reinstatement of the three-storey attached annex to the rear of the main building, known as the East Wing.
The new East Wing will contain a wide variety of new additional community spaces, together with new cloakrooms and a professional events kitchen. Phase 4 will also include the reinstatement of a large historic 3 manual 31 stop pipe organ which will be centrally positioned in this large space, and, in its own right, is an instrument able to attract some of the most renowned national and international performers, as well as supporting the classical concert programming in general.
With the completion of Phase 3 in September 2024, and all necessary permissions, architectural and structural plans now already in place, the final Phase will commence on site as soon as funds permit.
Financial review
Results
The Charity's accounts show a deficit for the period of £21,221 (2022: deficit of £15,332) and total funds (all unrestricted) of £19,944 (2022: £41,165) at the balance sheet date. However, £54,375 of these funds are invested in fixed assets, so the balance sheet shows a net deficiency of assets at 31 August 2023 of £34,341. Creditors due within one year include loans from trustees totalling £36,919 and the trustees have confirmed that repayment of their balances will be postponed to the extent that any repayment would prejudice the payment of the charity's debts as they fall due.
Going concern
After making appropriate enquiries and with the ongoing support of a loan from a Trustee, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Reserves policy
Prior to the activities of the Wesley Centre moving from 'development mode' to a fully operational position once the new facilities are complete, it is intended that a new reserves policy will be adopted for the Charity.
A Memorandum of Understanding (MoU) between the Charity and the Church was signed in November 2020. Prior to this, in August 2020, the Church Council agreed that the MoU can eventually be transitioned into a lease on all the premises, and this key point is reflected as such in the MoU.
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The Wesley Centre (Malton)
Report of the Trustees for the Year Ended 31 August 2023
Structure, governance and management
Constitution
The Wesley Centre (Malton) is a registered charity, number 1181629, and is constituted as a Charitable Incorporated Organisation (CIO) under the foundation model.
Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. The decisions of the Church Council will have primacy on such matters that remain core to the partnership relationship.
Statement of compliance with prevailing laws and regulations
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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) issued in October 2019.
Approved by order of the board of trustees on 26 June 2024 and signed on its behalf by:
................................................................. P Emberley - Trustee
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Independent Examiner's Report to the Trustees of The Wesley Centre (Malton)
Independent examiner's report to the trustees of The Wesley Centre (Malton)
I report to the charity trustees on my examination of the accounts of The Wesley Centre (Malton) (the Trust) for the year ended 31 August 2023.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all 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:
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accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Anne Mead BSc FCA
Ashby Berry Coulsons 2 Belgrave Crescent Scarborough North Yorkshire YO11 1UB
Date: 26 June 2024
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The Wesley Centre (Malton)
Statement of Financial Activities for the Year Ended 31 August 2023
| Unrestricted Restricted fund fund Notes £ £ Income and endowments from Donations and legacies 2 1,001 2,500 Other trading activities 3 19,071 - Total 20,072 2,500 Expenditure on Raising funds 4 - - Charitable activities 5 Core activities 41,293 2,500 Total 41,293 2,500 NET INCOME/(EXPENDITURE) (21,221) - Reconciliation of funds Total funds brought forward 41,165 - Total funds carried forward 19,944 - |
2023 Total funds £ 3,501 19,071 22,572 - 43,793 43,793 (21,221) 41,165 19,944 |
2022 Total funds £ 21,449 24,677 46,126 222 61,236 61,458 (15,332) 56,497 41,165 |
|---|---|---|
The notes form part of these financial statements
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The Wesley Centre (Malton)
Balance Sheet 31 August 2023
| Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank Creditors Amounts falling due within one year 11 Net current assets Total assets less current liabilities Creditors Amounts falling due after more than one year 12 NET ASSETS/(LIABILITIES) Funds 15 Unrestricted funds Total funds |
2023 £ 54,375 118,164 136 118,300 (152,731) (34,431) 19,944 - 19,944 19,944 19,944 |
2022 £ 34,387 136,307 3,862 140,169 (95,627) 44,542 78,929 (37,764) 41,165 41,165 41,165 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 26 June 2024 and were signed on its behalf by:
............................................. P Emberley - Trustee
The notes form part of these financial statements
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The Wesley Centre (Malton)
Notes to the Financial Statements for the Year Ended 31 August 2023
1. Accounting policies
General information
The Wesley Centre (Malton) is a Charitable Incorporated Organisation (CIO) registered in England / Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are: to provide facilities in the interests of social welfare for recreation and leisure time occupation; to advance the Christian religion through the provision and maintenance of the Wesley Centre for use as a place of worship; and to advance the education of the public through the preservation and maintenance of the grade II* listed Malton Methodist Church building.
Basis of preparing the financial statements
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting and UK Generally Accepted Practice.
Statement of compliance with prevailing laws and regulations
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Judgements and key sources of estimation uncertainty
The trustees consider that no judgements, apart from those involving estimates, have been made in the process of applying the above accounting policies which have had a significant effect on amounts recognised in the financial statements.
The trustees consider that no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date have been made which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
1. Accounting policies - continued
Funds - continued
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Comparative figures
The charity held only unrestricted funds in the previous year and therefore full fund movement and comparative information is available from the Statement of Financial Activities and Balance Sheet.
Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised at fair value when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of specified services is deferred until the criteria for income recognition are met.
Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.
The charity's administration and project management is carried out by the trustees without remuneration, supported by other volunteers. No amount is included in the financial statements for volunteer time in line with SORP (FRS 102) 2019.
On receipt, donated professional services and donated facilities are recognised on the basis of the fair value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
1. Accounting policies - continued
Income - continued
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities.
Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the charity and their associated support costs.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administrative and governance costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
Tangible fixed assets
Fixed assets are capitalised at cost. No depreciation has been charged to date on the fixtures and equipment purchased in to date because the Centre has been operational for very short periods since their acquisition due first to the pandemic and then the major Phase 3 work. Depreciation on the original cost will be charged from the date the Centre reopens.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Concessionary loans
In accordance with Section 34 PBE of FRS 102, loans not at market rates are initially measured at the amount received. In subsequent years, the outstanding balance is adjusted to reflect any accrued interest payable. No interest has been payable to date on existing loans.
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
1. Accounting policies - continued
Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
Provisions
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
Leases
Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. In their view, the budgeted income and expenditure, together with the written confirmations that repayment of the two loans from will not be requested to the detriment of the charity's ability to settle its commitments as they fall due, is sufficient with the level of reserves for the charity to be able to continue as a going concern.
2. Donations and legacies
| Donations Grants Sundry income |
2023 £ 267 3,224 10 **3,501 ** |
2022 £ 7,102 14,317 30 |
|---|---|---|
| 21,449 |
£2,500 (2022: none) of the above income was attributable to restricted funds and £1,001 (2022: all) was attributable to unrestricted funds.
Grants receivable comprise
| Ryedale District Council - Community Cafe Cause UK Covid Culture Recovery 2 |
2023 £ 2,500 724 - 3,224 |
2022 £ - - 14,317 14,317 |
|
|---|---|---|---|
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
2. Donations and legacies - continued
There were no unfulfilled conditions or other contingencies attaching to grants recognised in income for the year ended 31 August 2023 or for the preceding year.
3. Other trading activities
| Rental income | 2023 £ 19,071 |
2022 £ 24,677 |
|---|---|---|
All the above income for the current and preceding year was attributable to unrestricted funds.
4. Raising funds
Raising donations and legacies
| Other fund raising costs | 2023 £ - |
2022 £ 222 |
|---|---|---|
All the above income for the current and preceding year was attributable to unrestricted funds.
5. Charitable activities costs
| Core activities Comparatives for charitable activities costs Core activities |
Direct Costs £ 38,793 Direct costs £ 39,711 |
Support costs (see note 6) £ 5,000 Support costs £ 21,525 |
Totals £ 43,793 |
|
|---|---|---|---|---|
| Totals £ 61,236 |
£2,500 of the above expenditure for the current year was attributable to restricted funds and £41,293 to unrestricted funds. In the preceding year, none of this expenditure was restricted.
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
6. Support costs
| Core activities Comparatives for support costs Governance £ Core activities 21,525 Independent examiner's remuneration 2023 £ Independent examination and accounts preparation current year 5,000 Independent examination and accounts preparation previous year - Other services - 5,000 |
Governance costs £ 5,000 Total £ 21,525 2022 £ 5,000 9,650 155 14,805 |
|---|---|
7. Trustees' remuneration and benefits
No trustee received any remuneration, or other benefits during the year. (2022: None)
Trustees' expenses
No expenses were reimbursed to any trustee during the year (2022: None)
8. Tangible fixed assets
| Cost At 1 September 2022 Additions At 31 August 2023 Net book value At 31 August 2023 At 31 August 2022 |
Fixtures and fittings £ 34,387 19,988 54,375 54,375 34,387 |
|---|---|
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
| 9. Debtors: amounts falling due within one year Trade debtors Other debtors VAT Prepayments and accrued income 10. Creditors: amounts falling due within one year Other loans (see note 12) Trade creditors Other creditors Accruals and deferred income Accrued expenses 11. Creditors: amounts falling due after more than one year Other creditors 12. Loans An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Concessionary loans |
2023 £ 11,709 100,152 3,327 2,976 118,164 2023 £ 36,919 89,232 6,081 14,801 5,698 152,731 2023 £ - 2023 £ 36,919 |
2022 £ 390 131,965 1,837 2,115 136,307 2022 £ - 30,328 55,144 - 10,155 95,627 2022 £ 37,764 2022 £ - |
|---|---|---|
As detailed in Note 15, two trustees have made loans to The Wesley Centre (Malton). No interest has been charged on these loans and there is no set repayment date.
continued...
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The Wesley Centre (Malton)
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
13. Analysis of net assets between funds
| 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total |
Total | ||||
| fund | fund | funds | funds | ||||
| £ | £ | £ | £ | ||||
| Fixed assets | 54,375 | - | 54,375 | 34,387 | |||
| Current assets | 118,300 | - | 118,300 | 140,169 | |||
| Current liabilities | (152,731) | - | (152,731) | (95,627) | |||
| Long term liabilities | - | - | - | (37,764) | |||
| 19,944 | - | 19,944 | 41,165 | ||||
| Net assets for the preceding year related wholly | to unrestricted funds. | ||||||
| Movement in funds | |||||||
| At | Incoming | Resources | At | ||||
| 1 September | Resources | Expended | 31 August | ||||
| 2022 | 2023 | ||||||
| £ | £ | £ | £ | ||||
| Unrestricted funds | |||||||
| General fund | 41,165 | 26,722 | (47,943) | 19,944 |
|||
| Restricted funds | |||||||
| Ryedale District Council - Community | |||||||
| Cafe | - | 2,500 | (2,500) | - |
14. Movement in funds
All transactions in the previous year related to unrestricted funds.
15. Related party disclosures
Malton Methodist Church
The restoration of the Malton Methodist premises is being undertaken jointly by Malton Methodist Church (MMC) and The Wesley Centre (Malton). Project management is carried out by The Wesley Centre, which makes the payments to contractors and suppliers. Costs up to 31 August 2020 were funded through MMC. Following the inception of the Memorandum of Understanding between The Wesley Centre and MMC, as endorsed by the Trustees for Methodist Church Purposes, certain costs are now being funded directly through The Wesley Centre.
Three (2022: four) of the Wesley Centre's Trustees hold the position of Steward in MMC.
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