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2020-12-31-accounts

Skelmersdale Ecumenical Centre Charity number 1184507

Annual Report and Accounts Financial Year Ended

31-12-2020

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Please note:

CIO date of establishment was 19-7-2019 however there was no activity within the CIO until the start of the new Financial Year. All activities prior to 1-1-2020 were undertaken by the unincorporated charity (reg number 509475). This annual report and accounts covers the full financial year 1-1-2020 to 31-12-2020 and annual return covers this period also as no activities undertaken by the CIO until that point as confirmed as appropriate reporting by the Charity Commission 10-5-2022

Annual Report for the Financial Year ended 31-12-2020

The Charity’s Governing Document

The charity was governed by a Sharing Agreement made on the 25[th] April 1972 between the Liverpool Diocesan Board of Finance, The Parochial Church Council of the Ecclesiastical Parish of Skelmersdale, The Methodist Church, The Presbyterian Church of England, The Lancashire and Cheshire Association of Baptist Churches and The Lancashire Congregational Union (Incorporated). The Presbyterian Church of England and the Lancashire Congregational Union amalgamated in October of 1972 to form the United Reformed Church.

Since the 1[st] January 2020 the charity having been registered as a Charitable Incorporated Organisation (CIO) with the Charity Commission for England and Wales has been operating as such. Steps were taken through the year to remove the old body from the register, its assets having been in practice transferred to the CIO as of 1-1-2020. The accounts for 2019 (unincorporated body) and 2020 (CIO charity) follow on from each other

List of Trustees

List of Trustees
Church of England Baptist United
Reformed
Church		 Methodist
Ven J McKenzie
Rev C Spittle
Revd David Burrows -
(appointed 18thMay)		 Rev T Presswood
Rev R Preston
Vacancy		 Rev M Tindsley
Vacancy
Vacancy		 Rev R Andrews
(resigned 20th
September 2019)
Rev K Summers
N Mackenzie
Vacancy

The day to day running of the Centre lay with the Centre Manager throughout the reporting period and Rev R Preston (Trustee) acted as the go between feeding information to the trustees and liaising with the Centre Manager in relation to day-to-day operational issues. The Chair Ven J McKenzie acted as Line Manager during this period for senior staff members

Bankers

National Westminster Bank, Southway, Skelmersdale WN8 6LD

Aims of the Charity

The purposes of the sharing agreement and CIO charity remained the same and are stated as being: The Objects of the CIO are: The advancement of the Christian religion for the public benefit by

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1. The promotion of fellowship between Christian Churches, bodies, institutions and persons in the community therewith

2. The provision, improvement and management of the Skelmersdale Ecumenical Centre Building

3. The promotion of the Skelmersdale Ecumenical Centre Building as a place of public worship to be shared by the Church of England, the Methodist Church, the United Reformed Church and the North West Baptist Association (which churches and association are referred to together as ‘the sharing Churches’) and to be used by them either alone or jointly with each other or together with other Christian churches, bodies, institutions or persons in communion therewith; and

4. The promotion of the Skelmersdale Ecumenical Centre Building as a Centre for any other charitable activity which may seem to the CIO to be beneficial to the sharing churches or likely to further their common aims and interests so far as the same may be wholly and exclusively charitable.’

Correspondence Address

Skelmersdale Ecumenical Centre, Northway, Skelmersdale WN8 6LU

Phone: 01695 725014 Email: info@skelmersdaleecumenicalcentre.org

Reserves Policy

When our financial position is recovered the Board will maintain a Reserves Policy whereby 3 months costs will be held as a general reserve. The Board is working towards putting our affairs in order and applying for funds following the depletions consequent upon a difficult refurbishment and covid which resulted in a tremendous reduction in income whilst overheads continued.

Health & Safety Policy

Health & safety is at the heart of its responsibilities and the trustees of the Board are keen to ensure that all matters are covered. The organisation employs a caretaker to ensure that the building is maintained to an acceptable standard and tried to mitigate any risks identified. Building work has been undertaken using a qualified building company, quantity surveyor and architect so the trustees can be assured that relevant health and safety requirements have been met.

Safeguarding

The Centre seeks to follow recognised safeguarding processes and good practice to ensure that all users of the Centre are protected. An appropriate officer is appointed as first point of contact for safeguarding concerns to be reported to. Enhanced DBS checks are conducted for those persons coming into contact with vulnerable adults or children.

GDPR

Steps are being taken to ensure that all personal data is being dealt with in accordance with the general Data Protection Regulations (GDPR). Employees, volunteers, tenant bodies, stakeholders, contractors and service user will only have personal data stored that is absolutely necessary and once it is no longer required it will be destroyed in accordance with the organisation’s Records

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Retention Policy. Those involved will be asked to sign authorisation for personal data to be stored and retained as required by law.

Our priorities for 2020 were:

The Board of Management have regard to the advice and guidance provided by the Charity Commission for England and Wales relating to public benefit when supporting the activities of the charity over the financial year.

Public Benefit

PRINCIPLE 1: There must be an identifiable benefit or benefits

Principle 1a: Definition:

It must be clear what the benefits are

Activities Undertaken:

During the Covid pandemic the Centre concentrated on working to meet dire community needs and undertake a number of initiatives primarily focussing on health and wellbeing in the community, spiritual care and undertaking a number of projects specifically aimed at meeting the more tangible needs of the community such as working to assist to provide key workers and members of the public with PPE, masks etc. by the community coming together to use the space at an acceptable social distance to produce the items required. In addition we acted as a central hub so people could access us for support, advice, guidance and signposting for help with benefits and other types of advice required. The Centre was also able to provide food to those most in need and most isolated in the community.

It should be noted that the closure of the Centre resulted in reduced income. However, it allowed the Board to focus on completion of the building work which was done at agreed social distancing levels.

Principle 1b: Definition:

The benefits must be related to the aims

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Activities Undertaken:

Activities are as stated above and focussed on the pastoral care of local residents, lighting candles for those who sent in prayers for support during a difficult time.

The other care was more grass roots practical delivery to meet the needs of those most in need, socially isolated, on reduced incomes or suffering in other ways, shapes and forms. Dependent on circumstances, some self-reliant people found themselves in need following the outbreak of Covid.

Principle 1c: Definition:

Benefits must be balanced against any detriment or harm

Activities Undertaken:

At all times the government advice relating to Covid, safety of staff and volunteers and social distancing requirements were met. The Board weighed up the potential dangers associated with undertaking activities against the harm that no intervention would cause the community as a whole and decided that it was able to offer support without putting persons at risk. Risk assessments were undertaken at regular intervals and care was taken to ensure the Centre was cleaned thoroughly every day to protect those offering their time, experience and support.

PRINCIPLE 2: Benefit must be to the public, or a section of the public

Principle 2a: Definition:

The beneficiaries must be appropriate to the aims

Activities Undertaken:

The general community irrespective of age, ability, ethnicity, creed and sexuality all benefitted from the activities undertaken in the name of promoting the charitable activities during the stated period. All work undertaken was deemed to be a way of promoting the teachings of the Gospel offer help and support to those in need living in the community.

Principle 2b: Definition:

Where benefit is to a section of the public, the opportunity to benefit must not be unreasonably restricted (a) by geographical or other restrictions; or (b) by ability to pay any fees charged

Activities Undertaken:

There are no restrictions on who can benefit from the work of the charity and there were no charges levied during the reporting period for activities undertaken or the produce created (PPE) for roll out to the community at large to ensure their mental and physical health and wellbeing.

Principle 2c: Definition:

People in poverty must not be excluded from the opportunity to benefit.

Activities Undertaken:

People living in poverty are the key service users of the Centre and are not precluded from taking part or from benefitting from the support offered at the Centre in any way.

Principle 2d: Definition:

Any private benefits must be incidental.

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Activities Undertaken:

There were no private benefits during the reporting period.

Centre Report

During the year the organisation faced the continued general nationwide lockdown which impeded its ability to generate funds. The report is therefore very similar to the previous year for the unincorporated charity. However, it had been granted funding for the refurbishment of parts of the premises and continued to undertake this work during lockdown ensuring the safety of those concerned/involved in the work required. All such funds were held as restricted funds for a particular purpose and could not be spent on anything else.

The reserve fund in place continued to be used in part to act as contingency funding during the prolonged shutdown but the Trustees agreed to take step to increase the monies held on reserve moving forward.

Due to a misunderstanding of the Commission guidance and regulations, the winding up and full closure and removal of the original charity from the Register of Charities has taken longer than expected. Due to paucity of funds the trustees have been unable to take the full professional advice they would like.

Worship had to be put on hold during the lockdown as with other bodies throughout the country. In its stead we continued to offer a service whereby prayers were offered for those sending in prayer requests and candles lit for those unable to attend the Chapel as this was felt the best that could be offered in the circumstances and was a way of offer succour to those needing spiritual support during the difficult times faced by the community at large.

The business plan had remain on hold until the full impact of the pandemic had been realised and full assessment of that impact made.

As mentioned earlier, various projects continued during the pandemic but focussed on what was needed most in the community ie food, PPE, support, advice and guidance.

The Centre remained open for those wishing to use the services of other tenant bodies within the Centre including Ark CIC, Skelmersdale Foodbank, The Birchwood Centre, Lancashire Community Finance and SWILCAN.

Centre Finances

The ongoing downturn in the economy continued to impact on the ability of the Centre to generate funds. This was then further impeded by the lockdown due to the pandemic and the fact that the Centre had to close its doors to general regular usage and occasional lettings. Lettings income was impacted given the fact regular users also faced problems in generating income and paying rents. Running projects and seeing members of the public face to face was an issue as the Centre had to be able to show it protected staff, volunteers, tenants and service users. The ongoing work to the premises prevented the Board from being able to offer a broader hiring of the facility as some areas were sealed off to protect the health and safety of the public at large whilst work was undertaken.

Moving forward the Board are still hopeful the Centre will get back to full working strength and once work is completed the activities will be able to be spread throughout the premises and be of more benefit to the wider community to meet their diverse needs and requirements. Whilst this

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cannot be guaranteed until the Covid pandemic and any variants are tackled, the Board are mindful of their duties and responsibilities and feel the Centre will get back to full working strength as soon as practicably possible.

Priorities for 2021

Neil Mackenzie Chair of Trustees 31-12-2020

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Accounting information

Financial statements for the FYE 31 December 2020

Balance sheet

Notes to the accounts Independent examiners report

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Skelmersdale Ecumenical Centre 1184507 Balance Sheet 31-12-2020

Comparative Figures 2019 Comparative Figures 2019 Comparative Figures 2019
Unrestricted Restricted TOTAL Unrestricted Restricted TOTAL
Fixed Assets
Land &
Buildings		 2057000 2057000 2057000 2057000
Equipment
(Est)		 1000 1000 1000 1000
Current
Assets
BLF
Retention		 32020 32020 0 0
Debtors &
Prepayments		 0 0 0 0 0
Cash @
Bank		 37450 37450 12195 50579 62774
Central
Finance
Board –
short term
investment		 3480 3480 15460 15460
TOTAL 3480 2127470 2130950 27655 2108579 2136234
Current
Liabilities
Creditors &
accruals
(due in
under 1 year)		 0 37680 37680 0 0 0
Provision for
notified debt		 0 36522 36522 0 0 0
TOTAL 0 74202 74202 0 0 0
Total Assets
less Current
Liabilities		 3480 2201672 2205152 27655 2108579 2136234
Loans &
Creditors
due after 1
year		 12000 0 12000 17000 0 17000
Net Total
Assets		 15480 2094950 2106950 10655 2108579 2119234

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Skelmersdale Ecumenical Centre 1184507

Final Accounts for FYE 31-12-2020

Statement of Financial Activities for FYE December 2020

INCOME &
ENDOWMENTS		 2020 2020 2020 2019 2019 2019
Unrestricted Restricted TOTAL Unrestricted Restricted TOTAL
INCOME
Revenue
Trading
Income
Room hire &
office rentals		 10717 10717 27784 27784
Shop & lunch
club		 9098 9098 3438 3438
Other Revenue
Income
Gifts &
Donations
Unrestricted		 6239 5000 11239 4326 4326
Short term Loan
NWBA		 5000 5000
Loan From
Methodist
Circuit		 12000 12000
West Lancs
Covid Support
Grant		 10000 10000
Job Retention
Scheme		 10302 10032
Capital
Refurbishment
Grants
Grants
Church @
Centre
NWBA 22471 22471
URC 586 586
Methodist
Church		 12000 12000
Big Lottery
Fund		 103176 103176 613524 613524
Community
Foundation		 5000 5000
Partners in
Crime		 2910 2910
TOTAL
INCOME		 46356 151143 197499 52548 613524 666072

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EXPENDITURE 2020 2020 2020 2019 2019 2019
Unrestricted Restricted TOTAL Unrestricted Restricted TOTAL
INCOME
Centre running
costs (revenue)		 76826 76826 57036 57036
Capital
Refurbishment
Costs
Building works 142444 14244
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Fees 3853 3853
TOTAL
EXPENDITURE		 76826 145997 22282
3		 -57036 -562945 619981
Net income &
exp before
investment
gains		 -30470 5146 -25324 -4488 50579 46091
Net gains on
investments		 0 0 0 0 0 0
Transfer
between funds		 0 0 0 0 0 0
NET
MOVEMENT IN
FUNDS		 -30470 5146 -25324 -4488 50579 46091
Total funds
brought forward
1-1-2020
12196		 50578 32774 1-1-
201
9		 16684 0 16684

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SKELMERSDALE ECUMENICAL CENTRE

Charity No 1184507

Notes to the Accounts for the year ended 31[st] December 2020

1. Basis of accounting

The financial statements have been prepared in accordance with SORP(FRS102) as updated, being the current version of Accounting and Reporting by Charities: Statement of Recommended Practice.

2. Funds

The funds held constitute:

a) General Funds held for any purpose of the Centre which are unrestricted.

b) Restricted funds held for a defined purpose as specified by the grant provide or donor. There are no Endowment funds.

3. Accounting policies

These accounts have been prepared on the basis of historical cost except that investments are shown at their cash value at the year-end in accordance with the requirement to show a true and fair view of the Centre’s financial position and activities.

4. Income

Income for the centre is largely based on rental income from office accommodation, plus a food bank, together with casual lettings and income from sporting and community interest groups. The Centre also provided a charity shop selling donated shoes and clothing etc – and a lunch club supplying meals at subsidised prices.

The Ecumenical Centre sits in the centre of one of the most deprived areas in the North West and, inevitably charges levied had to reflect the community’s ability to pay. It has become apparent however, that current levels of income would be insufficient to cover expenditure and the gap could only be bridged by donations from individuals and other church denominations.

Income is included in the Statement of Financial Activities (SOFA) when the money is actually due and the trustees are reasonably certain they have received or will receive it.

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Because of the pandemic much income was lost due to the enforced closure of the centre. Consequently, the 2020 income from users reduced by £13,426 compared with 2019.

The overall reduction was, to an extent, compensated by the HMRC Job Retention Scheme, plus increases in donations and Covid Grant Support. These compensatory factors, amounted to around £22,800

5. Expenditure

Expenditure is recognised when a liability is incurred and accepted as being legally due and unavoidable. Where invoices, or similar financial obligations are in dispute these have not been included as expenditure in the income and expenditure summary. However, the disputed amounts, as claimed by creditors, have been included as possible liabilities in the Balance Sheet, to avoid any suggestion that not all issues have been properly recorded.

Expenditure between 2019 and 2020 increased by almost £20,000 principally due to the appointment of a very necessary Centre Manager. Inevitably, the slightly improved operational income picture between 2019 and 2020 was significantly offset by a substantial increase in operational expenditure.

6. Grants

Grants received from various grant making bodies, whether church denominations, the British Lottery or other charitable providers, are restricted and only applied for the purpose given. Where grants are provided with an element of unrestricted as well as restricted funds, these are strictly monitored.

7. VAT

Since the Centre is not VAT registered, all input VAT is charged with the expenses to which it refers.

8. Tangible Fixed assets

Ecumenical Centre Building

Valuation of the Centre Building was undertaken in March 2022 by CTD Consulting, Chartered Surveyors.

The Big Lottery has a legal charge on the premises equivalent to the amount of grant provided. This charge (in full or in part) could be applied in the event that the Trustees failed to complete the refurbishment.

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Equipment held by the Centre is of low value – mainly tables and chairs and so a low estimate of £1,000 has been included.

9. Investments

Investment by the charity would normally be short-term and placed after following the Commission’s Guidelines in CC14. Investments are valued in the balance sheet at market value at the year end. Investment income would be included in the accounts when receivable and any gains or losses on revaluation at the year-end shown in the SOFA.

10. Balance Sheet, Debtors, Prepayments and Creditors

Current assets include a sum of £32,020 due from the Big Lottery Fund. This sum is the retention provision included as required under the terms of the construction contract. It will be used to reduce the provision for notified debts shown under liabilities. The release of the BLF monies is dependent on the SEC fulfilling some administrative conditions required by the contact.

As referred to in para 5 above, some sums included as current liabilities are in dispute but have been included in the Balance Sheet as amounts notified/claimed by the creditors. It is expected that as negotiations proceed during 2021, these sums will reduce as and when settlement are reached.

11. The Capital Refurbishment Scheme

There was increasing recognition that the Centre building was in urgent need of renovation. Extensive research and consultation were undertaken before the earlier Charity 509475 entered into a major refurbishment contract. The scheme was financed by a Big Lottery Fund grant, awarded in June 2017. Additional grant support for the chapel element of the scheme, was subsequently provided by the four church denominations.

There have been problems with this scheme inasmuch as the initial cost was significantly underestimated by those professions engaged to oversee the project on behalf of the Trustees. Further problems arose insofar as there were delays when progressing the construction element and, in addition, the quality of financial information, supplied by the professional advisors and others, left much to be desired. Many of the disputed accounts issues relate to the refurbishment scheme.

For information only, a cumulative summary of expenditure on this project between 2017 and December 2020, has been included with the accounts. However, the records relating to expenditure in 2017 and 2018 cannot be guaranteed but are based on the best information from whatever documents were available for those years.

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12. Conclusion

The Trustees are satisfied, that despite some of the difficult circumstances referred to above, the accounts of the CIO now submitted for 2020, do represent an accurate and fair view of all financial transactions, with no material errors or omissions.

The auditor has been fully appraised of the circumstances and explanations regarding the preparation of the 2020 accounts. She has accepted these were unprecedented times for the SEC. due to the impact of Covid, together with issues surrounding the major refurbishment project.

She has reviewed the key financial elements required and included in the Charity’s Final Accounts, and is satisfied that, notwithstanding all the difficulties, the accounts do provide a true and fair view of the financial affairs of the Ecumenical Centre

Rev’d David M Burrows CIPFA (Trustee for Finance)

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