Charity registration number 201907
PORTSMOUTH DEAF ASSOCIATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
PORTSMOUTH DEAF ASSOCIATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr J Howl (Secretary) Mr D Jackson (Chairman) Mrs L Jackson Mrs J Howl Charity number 201907 Principal address 279 Arundel Street Fratton Hampshire Portsmouth PO1 1LX Independent examiner Carpenter Box 53 Kent Road Southsea Hampshire United Kingdom PO5 3HU Bankers NatWest 130 Commercial Road Portsmouth Hampshire PO1 1ES
(Appointed 5 December 2023) (Appointed 5 December 2023)
PORTSMOUTH DEAF ASSOCIATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 12 |
PORTSMOUTH DEAF ASSOCIATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their annual report and financial statements for the year ended 31 March 2024.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's constitution, the Charities Act 2011 and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102
Objectives and activities
The charity's objects are:
To promote the mental, moral and physical welfare of the deaf, To co-operate fully with national and local statutory bodies concerned with the welfare of the deaf, To compile and keep an accurate register,
To assist in placing deaf persons in employment, and in the enlightenment of employers in trade board, insurance and other regulations, To consider vocational training for adolescent deaf, To arrange recreational activities, To provide for the spiritual needs of the deaf, To guard the deaf against exploitation, To raise funds, and To make the needs of the deaf better known in the community.
The policies adopted in furtherance of these objects have not changed during the year.
The trustees have complied with the duty in section 17(5) of the Charities Act 2011 to have regard to the public benefit guidance published by the Charity Commission.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake to help and assist disabled people in the community by improving their lifestyles for the better.
Chairman's report
Achievements and performance
As the number of deaf people using the Deaf Centre continue to be diminish, its usage is now becoming limited.
Current trustees have several duties in acting in accordance with the charity’s purposes which benefit both the charity’s beneficiaries as well as for the public benefit, and to run the charity in a responsible manner, including ensuring good financial health.
Sadly, these duties have resulted in the trustees having some very difficult discussions to make about the future of this charity and have come to a painful decision to close the Deaf Centre on 1st February 2025 which is owned and managed by this charity.
Please note that this has no impact on the Portsmouth Deaf Club, which is a different organisation, but which may of course have to find other premises to use for its meetings. We are liaising with the committee of Portsmouth Deaf Club.
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PORTSMOUTH DEAF ASSOCIATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
We have acknowledged and thanked local clubs/groups and Urbond for their functions on our premises, to ensure our premises are used regularly and that their financial contributions so received which has kept this charity going.
Finding members and new people to become trustees is difficult and we have recognised and appreciated the support that we have received from three officers and two co-opt trustees in the past year to keep this charity going.
The officers, namely Mr D Jackson, Mr J Howl and Miss G Perryman, in their post of chairman, secretary and treasurer respectively. It was with deep regret that Miss G Perryman has resigned recently. The co-opt trustees, namely Mrs L Jackson and Mrs J Howl have given their full support to the committee, and we have conveyed our thanks to them.
In conclusion, this charity continues to support members of Portsmouth Deaf Club whenever possible.
Acting Treasurer’s Report for the Financial Year 2023-2024
After examining the accounts for the financial year 2023-2024, it has shown a loss of income of £8,459.00 which represent an income loss of 10.1%. On 1st April 2023, the fund balance was £83,941.00 and on 31st March 2024, the fund balance was £75,432.00. Now the income that PDA do rely upon has been reduced and in the light of the increasing outgoings that PDA must pay of which is not matched nor exceeded. This has followed on from the previous financial year 2022-2023 which has resulted in an income loss of 2.5%.
The current financial year 2024-2025 has seen even further drop in the fund balance indicating a possible higher
income loss.
Analysis of the income so received during the financial year 2023-2024 shows that they are based on hall hire bookings, rental income, occasional donation(s) and other incomes. Further analysis on the costings of hall hires bookings have revealed that they have not increased in line with the cost of living for the past 7-8 years. The only course of action really is to review the hall hires costs in line with the average of the hall hires costs by other Community Centres, Church Halls and Working Men Clubs which ideally will be the primary action of the new trustees should they take over from the current trustees. This action may result in other user groups dropping out. The Deaf Club may have to accept increased costs too. The area in which the Deaf Centre is based is regarded as “a poor area” and as you know that the Portsmouth City Council, like other Councils, must watch their spending. So, any assistance from Portsmouth City Council cannot be relied upon.
Now the Deaf Centre is fast becoming a white elephant unless a very large amount of funds is found most likely in six figures to replace the existing kitchen fittings with hygienically stainless-steel units, improve first floor with the appropriate fittings and decorations and other works which is most unlikely to happen.
That is the reason that the current trustees feel that its far better to close the Deaf Centre to prevent further income drain.
Financial review
The Association had a net deficit on operations for the year of £9,271 before transfers (2023: £2,977 deficit). At 31 March 2024 there were total unrestricted funds of £315,111 (2023: Total unrestricted funds of £324,382).
There is a designated fund equivalent to the value of fixed assets.
Reserves
It is the policy of the charity that unrestricted free funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Trust's scheme authorises the trustees to make and hold investments using the general funds of the charity. The investments are held in accordance with the trustees powers.
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PORTSMOUTH DEAF ASSOCIATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
Risk
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for future periods
One potential future scenario is the sale of the current site in Fratton. The Deaf Centre has instructed a valuation report to determine the market value of the freehold, in the event that it were to be sold.
Structure, governance and management
The charity was established by a charitable trust deed on 22 September 1966.
The trustees who served during the year and up to the date of signature of the financial statements were:
Mr J Howl (Secretary) Mr D Jackson (Chairman) Miss G Perryman (Treasurer) (Resigned 10 July 2024) Mrs L Jackson (Appointed 5 December 2023) Mr A Miller (Resigned 8 April 2023) Mr S Hawkins (Resigned 8 April 2023) Mrs D Hawkins (Resigned 8 April 2023) Mrs J Howl (Appointed 5 December 2023) Mr D Palmer (Resigned 8 April 2023) Mrs B Maynard (Resigned 8 April 2023)
The Trustees are elected/re-elected at every Annual General Meeting, normally held in September of each year, from a list of current memberships of the Association.
Mrs L Jackson and Mrs J Howl were reappointed during the year as co-opted trustees.
The Trustees and representatives from various centre users form an Executive Committee and meet once a month. The Executive Committee is responsible for ensuring the organisation carries out its objects and operates within its powers according to the constitution. This Executive Committee comprises both hearing and deaf persons who work closely with the Portsmouth Deaf Club which is constituted and run by the deaf community in Portsmouth.
The trustees' report was approved by the Board of Trustees.
..............................
Mr D Jackson (Chairman) Trustee Dated: .........................
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PORTSMOUTH DEAF ASSOCIATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF PORTSMOUTH DEAF ASSOCIATION
I report to the trustees on my examination of the financial statements of Portsmouth Deaf Association (the charity) for the year ended 31 March 2024.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no 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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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements 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 financial statements to be reached.
Timothy Millett FCA Carpenter Box
53 Kent Road Southsea Hampshire PO5 3HU United Kingdom
Dated: .........................
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PORTSMOUTH DEAF ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
| Unrestricted Unrestricted funds funds general designated 2024 2024 Notes £ £ Income and endowments from: Donations and legacies 2 389 - Investments 3 353 - Other income 4 30,680 - Total income 31,422 - Expenditure on: Charitable activities for the Deaf Community and Operation of the Deaf Centre 5 40,693 - Net outgoing resources before transfers (9,271) - Gross transfers between funds 812 (812) Net expenditure for the year/ Net movement in funds (8,459) (812) Fund balances at 1 April 2023 83,941 240,441 Fund balances at 31 March 2024 75,482 239,629 |
Total Unrestricted Unrestricted funds funds general designated 2024 2023 2023 £ £ £ 389 296 - 353 97 - 30,680 24,303 - 31,422 24,696 - 40,693 27,673 - (9,271) (2,977) - - 818 (818) (9,271) (2,159) (818) 324,382 86,100 241,259 315,111 83,941 240,441 |
Total 2023 £ 296 97 24,303 24,696 27,673 (2,977) - (2,977) 327,359 324,382 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
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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PORTSMOUTH DEAF ASSOCIATION
BALANCE SHEET
AS AT 31 MARCH 2024
| Notes Fixed assets Tangible assets 9 Investment properties Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Designated unrestricted funds General unrestricted funds |
2024 £ 2,249 77,345 79,594 (4,112) |
£ 89,629 150,000 239,629 75,482 315,111 239,629 75,482 315,111 |
2023 £ 1,113 91,866 92,979 (9,038) |
£ 90,441 150,000 |
|---|---|---|---|---|
| 240,441 83,941 |
||||
| 324,382 | ||||
| 240,441 83,941 |
||||
| 324,382 |
The financial statements were approved by the Trustees on .........................
.............................. Mr D Jackson (Chairman) Trustee
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
Charity information
Portsmouth Deaf Association is an unincorporated registered charity.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.
The charity will continue to adopt the going concern basis in the preparation of its Financial Statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
1.5 Expenditure
Expenses are included in the financial statements as they become due.
Expenses include VAT where applicable as the Charity cannot reclaim it.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Nil Fixtures, fittings & equipment 10%-20% reducing balance or 20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Freehold property is not depreciated. The building is well maintained and the residual value is such that any depreciation charge is not appropriate.
1.7 Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are recognised at transaction price.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers.
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.11 Government Grants
Government grants, including amounts received under the local authority small business grants, and government support relating to subsidised rates, are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2024 | 2023 | |
| £ | £ | |
| Donations and gifts | 389 | 296 |
3 Income from investments
| Unrestricted Unrestricted funds funds 2024 2023 £ £ Interest receivable 353 97 4 Other income 2024 2023 £ £ Rental income 7,273 6,698 Room hire 23,377 17,570 Other income 30 35 30,680 24,303 |
Unrestricted Unrestricted funds funds 2024 2023 £ £ Interest receivable 353 97 4 Other income 2024 2023 £ £ Rental income 7,273 6,698 Room hire 23,377 17,570 Other income 30 35 30,680 24,303 |
Unrestricted Unrestricted funds funds 2024 2023 £ £ Interest receivable 353 97 4 Other income 2024 2023 £ £ Rental income 7,273 6,698 Room hire 23,377 17,570 Other income 30 35 30,680 24,303 |
|---|---|---|
| 2023 £ 6,698 17,570 35 |
||
| 2024 £ 7,273 23,377 30 30,680 |
||
| 24,303 |
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
5 Charitable activities for the Deaf Community and Operation of the Deaf Centre
| Depreciation and impairment Signing and interpretation Repairs and renewals Premises expenses Telephone and travel Independent examiners fees Insurance Sundry expenses Legal and professional |
2024 £ 812 454 8,493 21,365 792 1,489 3,549 453 3,286 40,693 |
2023 £ 818 375 3,562 17,636 1,062 1,050 2,746 424 - |
|---|---|---|
| 27,673 |
6 Trustees
None of the Trustees (or any persons connected with them) received any remuneration during the year (2023 - £nil).
7 Employees
There were no employees during the year.
8 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
9 Tangible fixed assets
| Cost At 1 April 2023 At 31 March 2024 Depreciation and impairment At 1 April 2023 Depreciation charged in the year At 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023 |
Land and buildings Fixtures, fittings & equipment £ £ 87,159 77,055 87,159 77,055 - 73,773 - 812 - 74,585 87,159 2,470 87,159 3,282 |
Total £ 164,214 |
|---|---|---|
| 164,214 | ||
| 73,773 812 |
||
| 74,585 | ||
| 89,629 | ||
| 90,441 |
No formal valuation has been carried out on the freehold property, although the trustees believe the value to be approximately £750,000. The investment element of the property has been valued by the trustees at £150,000 on the basis of the rental income stream.
10 Debtors
| Amounts falling due within one year: Other debtors 11 Creditors: amounts falling due within one year Other creditors Accruals and deferred income |
2024 £ 2,249 2024 £ - 4,112 4,112 |
2023 £ 1,113 |
|---|---|---|
| 2023 £ 4,200 4,838 |
||
| 9,038 |
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PORTSMOUTH DEAF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024
12 Analysis of net assets between funds
| Unrestricted Unrestricted funds funds general designated 2024 2024 £ £ Fund balances at 31 March 2024 are represented by: Tangible assets - 89,629 Investment properties - 150,000 Current assets/(liabilities) 75,482 - 75,482 239,629 Unrestricted Unrestricted funds funds general designated 2023 2023 £ £ Fund balances at 31 March 2023 are represented by: Tangible assets - 90,441 Investment properties - 150,000 Current assets/(liabilities) 83,941 - 83,941 240,441 |
Total 2024 £ 89,629 150,000 75,482 |
|---|---|
| 315,111 | |
| Total 2023 £ 90,441 150,000 83,941 |
|
| 324,382 |
13 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
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