ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
HONITON COMMUNITY SPACES
(CUB)
(Charitable Incorporated Organisation)
CHARITY REGISTRATION No: 1192604
Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
CONTENTS
| Page 3 | Legal and Administrative Information |
|---|---|
| Pages 4 to 6 | Trustees' Report |
| Page 7 | Statement of Financial Activities |
| Page 8 | Balance Sheet |
| Pages 9 to 14 | Notes to the Financial Statements |
| Page 15 | Independent Examiner's Report |
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
LEGAL AND ADMINISTRATIVE INFORMATION
CHARITY NUMBER 1192604 DATE OF REGISTRATION 1st December 2020 START OF FINANCIAL PERIOD 1st December 2020 END OF FINANCIAL PERIOD 31st December 2021 TRUSTEES AT 31ST DECEMBER 2021 Michael Jones Thomas Hedger Stephen Craddock Zoe Allars Diane Virgin Jason Hannay Christopher Doran
LEGAL STATUS Charitable Incorporated Organisation
GOVERNING INSTRUMENT
CIO - Foundation Registered 1st December 2020
OBJECTS
To further or benefit the residents of Honiton and the neighbourhood, 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 promote facilities in the interest of social welfare for recreation and leisure time occupation with the object of improving the condition of life for the residents. In furtherance of these objects but not otherwise, the Trustees shall have the power: a) To establish or secure the establishment of a community centre and to maintain or manage or co-operate with any statutory authority in the maintenance and management of such a centre for the activities promoted by the Charity in furtherance of the above objects.
CORRESPONDENCE ADDRESS Honiton Community Use Building School Lane Honiton Devon EX14 1QW PRIMARY BANKERS Lloyds Bank Plc 25 Gresham Street London EC2V 7HN INDEPENDENT EXAMINERS Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
TRUSTEES' REPORT
FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
Background
In early 2014, the restructuring and funding cuts within Devon County Council led to a reduction of the Devon Youth Service provision. As a direct consequence of this, DCC closed both Honiton Youth Club and the Youth Centre at the bottom of School Lane. HCS (CUB) obtained the freehold of the building and grounds on the 27/08/2021 under covenant.
The Future of the CUB Site
We are a year into ownership and management and it has been a steep learning curve; there is a world of difference between the two years of negotiating ownership and the daily grind of managing people and expectations, mending stuff and replacing lost keys, not to mention crumbling bits of building.
We are still not fully out of ‘Covid time’ and so are only just getting used to something like a new normal.
If we start at the positive end; we host a great selection of vulnerable groups and when the invoices get paid on time, we have a reasonably healthy revenue position.
We are indebted especially to Mike for making daily running possible in this preliminary time of unpaid management/caretaking services and to Zoe & latterly Mike for invoicing & accounting. They like all the Trustees are giving their free time because they can see the obvious benefits for vulnerable people in our community. But we all have our lives to live and need to get a balance between personal life, family, pleasure and other community commitments.
We are lucky to have a committed group of volunteers, but we cannot take anyone for granted and don’t want to lose folks because the project has simply worn them out.
We need a process that can allow each team member to commit only what they are happy doing and increasing the number of committed volunteers to make that possible.
We need to give all the Trustees full assurance about the liabilities involved in the project and protect them from risks. We should think about third party advice about where we presently are with improving fire access and other building regs issues as we plan to obtain approval but cannot presently finance work. We should will in place stringent user group self-management with every vulnerable group identifying a member of the team as safety manager in the room.
Funding
The funding strategy needs to break down to three target areas:
Revenue needs to include grants for support services and paid management/caretaking. We need a plan to fundraise say £22k/per year from grant applications. At the moment we could use generate say £400/month from room hire after overheads We have assisted user groups in their funding applications so that they can pay the higher costs. This will continue to be important for the obvious reason, but also that we have to wean our way off being dependant on UR/ROC money. It may be worth asking Sharon if Volunteer4All turns into a CIC supporting voluntary groups, to do fundraising on a commercial basis, i.e. they take an admin fee of 5% for every successful bid.
Example of smaller building maintenance and refurb costs. We need to gradually build a £40,000 fund to do the fire, access and reception works over the next twelve months. There will be two strands to this, firstly the identification of likely funding opportunities and just keep chipping away. Secondly to create a local sub-contract (Friends of CUB) skills base so we get added-value for our funds from lower labour cost and mates-rates. If Jason & Nathan are willing to organise a pie & pint event at the rugby club at the end of April we can begin to build that network.
The main work (new roof, new windows, and new wall insulation) is in some ways a more straight-forward pitch to some funders if we call it low-carbon retro-fit, climate change, net carbon community building. Chris & Steve could do that as a completely separate piece of desk-top work without any implications on daily use of the building.
We currently have three volunteer probationary trustees (the probationary period is afforded to them to see if they feel they can commit to our charity)
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
TRUSTEES' REPORT (Continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
We are also starting to build a squad of volunteers to help us on various activities and events such as; we have recently opened a free warm welcome space to the public.
We started at the end of last August with four long stay user groups we now have ten (as of Sept 2022) Some of our groups have been using the building for 25+ years. On average between 350 and 400 people use the building weekly.
Local Support
As a charity that manages a building for community groups we pledged to offer the lowest possible cost room and space hire to our groups.
Honiton Town Council
HTC has always given its full and unanimous support for the retention of The CUB for the people of Honiton. It recognises the benefit this building brings and its reach beyond the veteran users like the Parent & Toddler Group and the Youth Club. The CUB is also currently used by the 729 Club, Honiton Shredders and United Response.
It has played hosted a variety of groups and organisations, including: Young Devon, Craft Station, Kick-boxing, Honiton University of the Third Age, Honiton Twirlstars, Say Yes to Life Karate, Upbeat Street Dance and other one-off bookings from individual townsfolk.
In August 2019, Honiton Town Council awarded HCS (CUB) a start-up grant of £12,000. It came from the budget line ‘Youth Support’ in the Earmarked Reserves (EMR) for 2019-20, which was always intended to help support, the CUB provision. These start-up funds have been absolutely key to launching the CUB; giving it a firm foundation to grow from. The funds are vital for covering the costs associated with the actual ‘asset transfer’, like site surveys and legal fees but also important items like building insurances and its initial reserves and cash-flow. The funds were paid to HCS (CUB) in January 2020, following its successful registration with the Charity Commission.
In early 2021, Honiton Town Council also awarded HCS (CUB) a grant towards improving disabled parking and access to the building. They also gave Honiton Parent and Toddler Group funds to introduce a ‘Sensory Den’ for the young children. Dark dens and their accessories create a calming sensory and engaging space. This offers a new activity that the children can benefit from but also helps improve the variety of things available and introduces a beneficial activity supported by modern research and evidence. Importantly, it also gives the opportunity to children who would not be able to benefit from something of this nature otherwise.
We live in a vibrant community where a lot of residents have experienced the building in one form or the other over the last 30 years, from our youth club, the parent & toddler group, our mental health support group, men’s sheds or the 729 club. There is a lot of fondness & local support both from residents and local business. We intend to build on this by making the space more accessible to all with regular updates on our Facebook page, the warm welcome sessions we have recently started, birthday parties and other building based events.
Angela Gallagher Memorial Fund
The very first donation that HCS (CUB) received was from this fund, which was much appreciated and helped establish the bank account and provide some initial cash funding, Thank You.
HCS (CUB) would like to thank everyone who has been involved in this project over the years, from Devon County Council and East Devon District Council to Honiton Community College and all the people who gave their time voluntarily to help navigate HCS (CUB) into being. This also extends to the Trustees who managed the project. They are unpaid volunteers too.
Everyone believes in the importance of retaining this kind of community space in a rapidly expanding Honiton. The charity would not have come into being without the strong support of the community. This is very real evidence of a healthy, cooperative and collaborative approach that helps us all, as a town, move forward with confidence; understanding the power of the positive impact we can have together.
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HONITON COMMUNITY SPACES (CUB) (Charitable Incorrmyatsd Organisabonl TRUSTEES. REPORT {Contlnuèdl FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021 Tru8t888' R8sponslbllrtl88 The Charities Act 2011 wu1$ the trustees to prepare firn2ncg1 slatements for each fina181 year which give a tr and fair vth of the stsle of affairs of the CIO a1 of the Surys of CIO for that (trKxl. In pparirO those financlal statements tf truste¥$ a reoulred to". . SeKgCt suitable accountTTrJ rKI148$ aprAy them consislenlty Make judgernents and eslimales that are reasonatr arKI pnjdent . Prepa financ1 stateftnts the ccrtem basis 18$$ it is inapproprlate to Fyesume that the trust wlll continue in existe. The trustee$ a sponsIb lor keepiNJ accountiThJ recortls. disc)se with a$ae accuracy at any time the nanclal posrtion of the CIO. They are also resp)nSIb for safeguardry Ihe assets of tl CIO and lnce for tsking reasonab Steps for the weventk)n arKJ deteCtn of fraud arnl otl*r irregular# 1711012022 Apwoved by th& Trustees on ........................ Signed on their b8haW by Trust88 .. Prlntecl f48me'. Michael Bryn Jones
HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
| Notes INCOMING RESOURCES Incoming Resources from Generated Funds Donations, Grants & Legacies 3a Activities for Generating Funds 3b Investment Income 3c Other Incoming Resources 3d TOTAL INCOMING RESOURCES RESOURCES EXPENDED Costs of Generating Funds Cost of Charitable Activities 4a Governance Costs 4b TOTAL RESOURCES EXPENDED NET INCOMING (OUTGOING) RESOURCES Funds Brought Forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted Restricted TOTAL Funds Funds 2021 £ £ £ 33,531 - 33,531 5,420 - 5,420 - - - 585 - 585 39,536 - 39,536 10,467 - 10,467 8,987 - 8,987 19,454 - 19,454 20,082 - 20,082 - - - 20,082 - 20,082 |
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 9 to 14 form part of these financial statements.
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HONITON COMMUNITY SPACES (CUB) (Charilable IncorFMyateil Organisab"onl BALANCE SHEET AS AT31ST DECEMBER 2021 Unreslrthd Funds Restrts FurKI$ Total 31-D8c-21 FIx8d A6S8ts Tangible Assets In¥estmenl$ Total Flxed Aseots Curr•ntA$g•ts Debtors & Prepayments Cash at Bank and in Hand Tolol Curronl A$sgts 200 20,457 20,657 20,457 20,657 Crodltorn.. Amounts falhre due within 57S 575 NET CURRENT ASSETS 20,082 TOTAL ASSETS current Ilabilt*s 20,082 20,082 Crodltor•.' Amount8 fallrya due In more than ore year 10 NET ASSETS 20.082 20,082 Fundi of tht Charlty General Fund5 Restricte(l FuThJs 20,082 Totsi Fund• 20,082 20,082 1711012022 ApFKoved by the Trust888 on .................................................................................................................................. Signed on their b8haW by Trus188 . Printed Name.. mh881 Bryn J¢nes
HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
1. ACCOUNTING POLICIES
Basis of Preparation & Assessment of Going Concern
Basis of Preparation
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.
The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
Assessment of Going Concern
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
Incoming Resources
Recognition of Incoming Resources
These are included in the Statement of Financial Activities (SOFA) when:
▪ the charity becomes entitled to the resources;
▪ the trustees are virtually certain they will receive the resources; and
▪ the monetary value can be measured with sufficient reliability
Incoming Resources with Related Expenditure
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA.
Grants and Donations
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Tax Reclaims on Donations and Gifts
Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate.
Contractual Income and Performance Related Grants
This is only included in the SOFA once the related goods or services has been delivered.
Gifts in Kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.
Donated Services and Facilities
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
Volunteer Help
The value of any voluntary help received is not included in the accounts.
Investment Income
This is included in the accounts when receivable.
Investment Gains and Losses
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
HONITON COMMUNITY SPACES (CUB)
9
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
1. ACCOUNTING POLICIES (continued)
Expenditure and Liabilities
Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Governance Costs
Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters.
Grants with Performance Conditions
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
Grants Payable without Performance Conditions
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
Investments
Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value.
Unrestricted funds
These funds can be used for the general objectives of the charity as set out in the trustees report. The movements of the unrestricted funds are given in the Statement of Financial Activities.
Restricted funds
These funds are where the donor has specified a purpose for the donation made. These restrictions often arise as a result of appeals for special offerings for specific purposes.
Designated funds
These funds are funds set aside by the trustees out of unrestricted general funds for particular purposes or projects.
Fixed Assets
Fixed Assets are capitalised if they can be used for more than one year and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
Depreciation Expense
Depreciation is calculated at a rate to write off the cost of tangible fixed assets over their estimated useful lives. The rates applied are as follows:
Fixtures, Fittings and Equipment
25% - Reducing Balance Basis
2. TANGIBLE FIXED ASSETS
The CIO held no fixed assets during this or the previous financial period.
The annual commitments under non-cancelling operating leases and capital commitments are as follows:
31st December 2021 : None
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
3. INCOMING RESOURCES
| a) Donations, Grants & Legacies Gifts & Donations Grants Received b) Activities for Generating Funds Premises Hire c) Investment Income Interest d) Other Incoming Resources Sundry Income |
Unrestricted Restricted TOTAL Funds Funds 2021 £ £ £ 3,651 - 3,651 29,880 - 29,880 33,531 - 33,531 5,420 - 5,420 5,420 - 5,420 - - - - - - 585 - 585 585 - 585 |
|---|---|
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
4. RESOURCES EXPENDED
| Nlote a) Cost of Charitable Activities Cleaning Costs Equipment Costs Gifts & Donations Health & Safety Costs Insurance Costs Repairs & Maintenance Sundry Expenses Travel & Subsistence Utility Costs b) Governance Costs Independent Examiners Fees 9 Legal & Professional Fees |
Unrestricted Restricted TOTAL Funds Funds 2021 £ £ £ 2,040 - 2,040 414 - 414 870 - 870 576 - 576 870 - 870 3,097 - 3,097 927 - 927 100 - 100 1,573 - 1,573 10,467 - 10,467 575 - 575 8,412 - 8,412 8,987 - 8,987 |
|---|---|
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
5. RESTRICTED FUNDS
The CIO held no restricted fund during this initial financial period.
6. INVESTMENTS
The CIO held no fixed assets investments during this initial financial period.
7. CASH AT BANK AND IN HAND
| Cash at Bank & in Hand 8. DEBTORS AND PREPAYMENTS Sundry Debtors 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Independent Examiners Fees |
Unrestricted Restricted Total Fund Fund 31-Dec-21 £ £ £ 20,457 - 20,457 20,457 - 20,457 Unrestricted Restricted Total Fund Fund 31-Dec-21 £ £ £ 200 - 200 200 - 200 Unrestricted Restricted Total Fund Fund 31-Dec-21 £ £ £ 575 - 575 575 - 575 |
|---|---|
10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
The CIO held no long term liabilities during this initial financial period.
11. NET ASSETS BETWEEN FUNDS
| Fixed Asset Investments Net Current Assets Long Term Liabilities |
Unrestricted Restricted Total Funds Funds 31-Dec-21 £ £ £ - - - 20,082 - 20,082 - - - 20,082 - 20,082 |
|---|---|
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HONITON COMMUNITY SPACES (CUB)
(Charitable Incorporated Organisation)
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE FIRST PERIOD ENDED 31ST DECEMBER 2021
12. STAFF COSTS AND NUMBERS
The Charity employed no members of staff during this initial financial period.
13. TRUSTEES AND OTHER RELATED PARTIES
No payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.
14. RISK ASSESSMENT
The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
15. RESERVES POLICY
The Trustees have considered the level of reserves they wish to retain, appropriate to the CIO's needs. This is based on the CIO's size and the level of financial commitments held. The Trustees aim to ensure the CIO will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily.
16. PUBLIC BENEFIT
The CIO acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the CIO has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the CIO should undertake.
17. COMPARATIVE FIGURES
There are no comparative figures available as this is the initial period of registered Incorporated Charitable Activity.
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