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2023-06-30-accounts

REGISTERED COMPANY NUMBER: 00659834 (England and Wales) REGISTERED CHARITY NUMBER: 223438

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 30 June 2023

for

THE PENHALE SOCIETY LIMITED

Verve Accountancy Ltd 39 Northgate White Lund Morecambe Lancashire LA3 3PA

THE PENHALE SOCIETY LIMITED

Contents of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2023

Page
Report of the Trustees 1 to 2
Independent Examiner's Report 3
Statement of Financial Activities 4
Balance Sheet 5
Cash Flow Statement 6
Notes to the Cash Flow Statement 7
Notes to the Financial Statements 8 to 13
Detailed Statement of Financial Activities 14 to 15

THE PENHALE SOCIETY LIMITED

Report of the Trustees FOR THE YEAR ENDED 30 JUNE 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 June 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).

The 61st AGM Annual General Meeting took place on 28th February 2023 at 6 Fenton Street, Lancaster LA1 1TE

The Annual Report of the Chairperson for the financial year 2021 - 22 had been circulated and approved and accepted by the members.

The Unaudited Financial Statements or the year ending 30th June 2022 were approved and it was agreed that they would be sent to the Society's Accountants - RfM Management Accountants - for Auditing.

There were some changes to the Board of Trustees as follows : Alison Robson had resigned as a Trustee as from 22nd November 2022 and had become redundant as Administrator of the Charity as from 28th February 2023. Barry Robson resigned as a Trustee and Director as of 28th February 2023 Suzanne McLaughlin resigned as a Trustee and Director as of 28th February 2023

It was noted that that the Governing documents required there to be three trustees and so Gary Rycroft agreed to be appointed as a Trustee. Mr Rycroft pointed out that this position would only be on a temporary basis until such time other Trustees were appointed.

The Trustees of the Penhale Society now consist of : John Entwistle - Chair Steven Sullivan Gary Rycroft

Sale of the properties of the Penhale Society

At a previous meeting of the Trustees of the Penhale Society, it had been agreed that the two properties of the Society would be sold and the staff of the Society would be made redundant. The staff were all given notice as per the Redundancy legislation and paid according to the guidelines under the Redundancy Payments Act. The redundancies all took effect on 28th February 2023.

The sale of both the Hawarden Avenue and the Heysham Road has been completed and the funds are in the Charity's bank account in Barclays bank.

Finances

The Penhale Society is not receiving any income from residents as they had all left their accommodation in Penhale houses. The Society has received income through the sale of their two properties. The Staff have been paid their salaries and redundancy payments. There is a fund of around £800,000 in Barclay's bank following the sale of the properties.

Verve Accountancy Limited are preparing the accounts for the period ending 30th June 2023. These will reflect the changes from the sale of the properties and the bank funds now held.

Charity Commission

The Charity Commission is being informed of the changes to the Penhale Society in regard to the change of Trustees. When the new Trustees are in place, the objectives of the Penhale Society will be redefined in keeping with the original documents and the Charity commission informed of the Charity's new objectives.

John Entwistle Chair - Penhale Society 30th June 2023.

Page 1

THE PENHALE SOCIETY LIMITED

Report of the Trustees

FOR THE YEAR ENDED 30 JUNE 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00659834 (England and Wales)

Registered Charity number

223438

Registered office

6 Fenton Street Lancaster Lancashire LA1 1TE

Trustees

J Entwistle B A Robson (resigned 28/2/2023) Mrs A Robson (resigned 28/2/2023) S J Sullivan Mrs S McLaughlin (resigned 28/2/2023) G Rycroft Solicitor (appointed 28/2/2023)

Independent Examiner

Verve Accountancy Ltd 39 Northgate White Lund Morecambe Lancashire LA3 3PA

Approved by order of the board of trustees on 18 March 2024 and signed on its behalf by:

J Entwistle - Trustee

Page 2

Independent Examiner's Report to the Trustees of The Penhale Society Limited

Independent examiner's report to the trustees of The Penhale Society Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 June 2023.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Accounting Technicians, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

Gillian Telford FMAAT

Verve Accountancy Ltd 39 Northgate White Lund Morecambe Lancashire LA3 3PA

18 March 2024

Page 3

THE PENHALE SOCIETY LIMITED

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 30 JUNE 2023

2023
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
2,000
Investment income
3
1,833
Other income
629,732
Total
633,565
EXPENDITURE ON
Charitable activities
4
Establishment Expenses
35,750
Personnel Costs
110,554
General Expenses
11,051
Total
157,355
NET INCOME/(EXPENDITURE)
476,210
RECONCILIATION OF FUNDS
Total funds brought forward
327,073
TOTAL FUNDS CARRIED FORWARD
803,283		 2022
Total
funds
£
65
33,298
-
33,363
18,444
115,959
18,387
152,790
(119,427)
446,500
327,073

The notes form part of these financial statements

Page 4

THE PENHALE SOCIETY LIMITED

Balance Sheet 30 JUNE 2023

2023
Unrestricted
fund
Notes
£
FIXED ASSETS
Investment property
11
-
CURRENT ASSETS
Cash at bank and in hand
803,283
NET CURRENT ASSETS
803,283
TOTAL ASSETS LESS CURRENT
LIABILITIES
803,283
NET ASSETS
803,283
FUNDS
12
Unrestricted funds
803,283
TOTAL FUNDS
803,283		 2022
Total
funds
£
105,368
221,705
221,705
327,073
327,073
327,073
327,073

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 18 March 2024 and were signed on its behalf by:

J Entwistle - Trustee

The notes form part of these financial statements

Page 5

THE PENHALE SOCIETY LIMITED

Cash Flow Statement

FOR THE YEAR ENDED 30 JUNE 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Sale of tangible fixed assets
Sale of investment property
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2023
£
(154,306)
(154,306)
629,732
105,368
784
735,884
581,578
221,705
803,283		 2022
£
(122,021)
(122,021)
-
-
794
794
(121,227)
342,932
221,705

The notes form part of these financial statements

Page 6

THE PENHALE SOCIETY LIMITED

Notes to the Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2023

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Profit on disposal of fixed assets
Interest received
Decrease in creditors
Net cash used in operations		 2023
£
476,210
(629,732)
(784)
-
(154,306)		 2022
£
(119,427)
-
(794)
(1,800)
(122,021)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/22 Cash flow At 30/6/23
£ £ £
Net cash
Cash at bank and in hand 221,705 581,578 803,283
221,705 581,578 803,283
Total 221,705 581,578 803,283

The notes form part of these financial statements

Page 7

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2023

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

INVESTMENT PROPERTY

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

TAXATION

The charity is exempt from corporation tax on its charitable activities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 8

continued...

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 JUNE 2023

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Rents received
Interest receivable - trading		 2023
£
2,000
2023
£
1,049
784
1,833		 2022
£
65
2022
£
32,504
794
33,298

4. CHARITABLE ACTIVITIES COSTS

Establishment Expenses
Personnel Costs
General Expenses		 Direct
Costs
£
35,138
-
98
35,236		 Support
costs (see
note 5)
£
612
110,554
10,953
122,119		 Totals
£
35,750
110,554
11,051
157,355

5. SUPPORT COSTS

Management
£
Establishment Expenses
42
Personnel Costs
-
General Expenses
8,612
8,654		 Finance
£
-
-
856
856		 Human Governance
resources
costs
£
£
570
-
110,554
-
-
1,485
111,124
1,485		 Totals
£
612
110,554
10,953
122,119

Support costs, included in the above, are as follows:

HUMAN RESOURCES

Establishment
Expenses
£
House Manager's Wages
-
Relief Manager's Wages
-
Office Wages
-
Employers NI & PAYE
-
Gardens
570
Employers Pension
-
570		 Personnel
Costs
£
20,528
18,255
66,728
4,031
-
1,012
110,554		 2023
Total
activities
£
20,528
18,255
66,728
4,031
570
1,012
111,124		 2022
Total
activities
£
17,546
17,503
72,547
5,934
1,510
2,429
117,469

Page 9

continued...

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 JUNE 2023

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Surplus on disposal of fixed assets
Independent examination fee		 2023
£
(629,732)
-		 2022
£
-
360

7. TRUSTEES' REMUNERATION AND BENEFITS

Mrs A Robson was appointed as Trustee and Chairperson with effect from 9th November 2017 and resigned on 28.02.2023. This role is purely voluntary and the remuneration received by Mrs A Robson relates to her pre-existing role as Administrator.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 30 June 2023 nor for the year ended 30 June 2022.

8. STAFF COSTS

Average number of employees in the year was 5.

No staff received more than £60,000 in remuneration during the financial year.

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 65
Investment income 33,298
Total 33,363
EXPENDITURE ON
Charitable activities
Establishment Expenses 18,444
Personnel Costs 115,959
General Expenses 18,387
Total 152,790
NET INCOME/(EXPENDITURE) (119,427)
RECONCILIATION OF FUNDS
Total funds brought forward 446,500
TOTAL FUNDS CARRIED FORWARD 327,073

Page 10

continued...

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 JUNE 2023

10. FUTURE OF THE CHARITY

Upon completion and submission of the June 2023 accounts the Charity will be applying for CIO status.

It will continue to meet those in need in the Heysham and Morecambe area.

The plan is to introduce some further trustees into the Charity to enable the work of the Charity to continue.

11. INVESTMENT PROPERTY

FAIR VALUE
At 1 July 2022
Disposals
At 30 June 2023
NET BOOK VALUE
At 30 June 2023
At 30 June 2022		 £
105,368
(105,368)
-
-
105,368

Investment property sold during the year.

12. MOVEMENT IN FUNDS

At 1/7/22
£
Unrestricted funds
General fund
327,073
TOTAL FUNDS
327,073
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
633,565
TOTAL FUNDS
633,565		 Net
movement
At
in funds
30/6/23
£
£
476,210
803,283
476,210
803,283
Resources
Movement
expended
in funds
£
£
(157,355)
476,210
(157,355)
476,210

Page 11

continued...

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 JUNE 2023

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS		 At 1/7/21
£
446,500
446,500		 Net
movement
in funds
£
(119,427)
(119,427)		 At
30/6/22
£
327,073
327,073

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
33,363
33,363		 Resources
Movement
expended
in funds
£
£
(152,790)
(119,427)
(152,790)
(119,427)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1/7/21
£
446,500
446,500		 Net
movement
in funds
£
356,783
356,783		 At
30/6/23
£
803,283
803,283

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
666,928
666,928		 Resources
Movement
expended
in funds
£
£
(310,145)
356,783
(310,145)
356,783

Page 12

continued...

THE PENHALE SOCIETY LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 JUNE 2023

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30 June 2023.

Page 13

THE PENHALE SOCIETY LIMITED

Detailed Statement of Financial Activities FOR THE YEAR ENDED 30 JUNE 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Interest receivable - trading
Other income
Gain on sale of tangible fixed assets
Total incoming resources
EXPENDITURE
Charitable activities
Rates and water
Insurance
Light and heat
Repairs & Renewals
Legal and professional fees
Support costs
Management
Food
Telephone
Postage and stationery
Advertising
Cleaning
Administrative Expenses
Sundry Expenses
Finance
Bank charges
Human resources
House Manager's Wages
Relief Manager's Wages
Office Wages
Employers NI & PAYE
Gardens
Carried forward		 2023
£
2,000
1,049
784
1,833
629,732
633,565
3,355
98
9,172
77
22,534
35,236
416
879
416
3,576
42
3,112
213
8,654
856
20,528
18,255
66,728
4,031
570
110,112		 2022
£
65
32,504
794
33,298
-
33,363
6,160
3,467
7,955
2,772
-
20,354
4,934
1,210
511
2,430
47
4,376
300
13,808
979
17,546
17,503
72,547
5,934
1,510
115,040

This page does not form part of the statutory financial statements

Page 14

THE PENHALE SOCIETY LIMITED

Detailed Statement of Financial Activities FOR THE YEAR ENDED 30 JUNE 2023

Human resources
Brought forward
Employers Pension
Governance costs
Accountancy fees
Independent examination fee
Total resources expended
Net income/(expenditure)		 2023
£
110,112
1,012
111,124
1,215
270
1,485
157,355
476,210		 2022
£
115,040
2,429
117,469
144
36
180
152,790
(119,427)

This page does not form part of the statutory financial statements

Page 15