REGISTERED CHARITY NUMBER: 244569
Report of the Trustees and
Financial Statements for the Year Ended 31st March 2023
for The Hopmarket Charity
The Richards Sandy Partnership Thorneloe House 25 Barbourne Road Worcester Worcestershire WR1 1RU
The Hopmarket Charity
Contents of the Financial Statements for the Year Ended 31st March 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 14 |
| Detailed Statement of Financial Activities | 15 |
The Hopmarket Charity
Report of the Trustees for the Year Ended 31st March 2023
The trustees present their report with the financial statements of the charity for the year ended 31st March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity has been set up to benefit "needy persons" in the city of Worcester. "Needy persons" means persons who by reason of poverty, sickness or infirmity whether young or old are in need of financial assistance, care or attention. "Needy persons in the city of Worcester" are persons whose need arises in the city, whether or not they permanently reside there.
In accordance with Charity Commission guidance, the trustees regard people suffering from poverty as including persons who do not have the resources to provide for themselves, either on a short or a long-term basis, with the normal things of life which most people take for granted. The trustees aim to address both the causes and the consequences of poverty by allocating grants to assist with both the prevention and relief of poverty. In view of the limited resources of the charity, the trustees take the view that the objects of the charity can best be fulfilled by supporting other organisations which have been established for purposes within the charity's objects, rather than devoting the resources of the charity to the support of a limited number of individuals.
Significant activities
The Charity owns a building known as the Hopmarket complex (formerly The Hop Market Hotel) in Foregate Street, Worcester, together with annexed premises at 13, 14, 15 and 16 The Foregate, Worcester. The complex comprises a number of retail units with residential accommodation above.
The income from leasing the premises of the Charity is held on trust to apply the same for the benefit of needy persons in the city. Needy persons are defined in the Act as persons who by reason of poverty, sickness or infirmity whether young or old are in need of financial assistance, care and attention.
The flats above the retail units are leased to Platform Housing Group. Although no rent is payable, Platform Housing Group bears 75% of the cost of the repairs and maintenance to the building.
Public benefit
The trustees confirm that they have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance issued by the Charity Commission on public benefit when deciding on the charity's activities.
ACHIEVEMENT AND PERFORMANCE
Property Management
Fisher German LLP advised the Charity during the year that they did not wish to continue beyond May 2023. The Trustees authorised Council officers to work with the Chair and Vice-Chair to source a new management agency proposal.
The advice from City Council Property Services was that a "full service" single contract, providing both the managing agent services as well as lettings, would be the most suitable way to proceed. GJS Dillon indicated they would be potentially interested in the opportunity. Therefore, bearing in mind that the Charity does not have to undertake a formal procurement process but needs to be satisfied it has met its fiduciary duties appropriately, the Council's Corporate Director - Planning and Governance proposed to the Chair and Vice-Chair a sequential negotiation process.
Upon completion of this process, a final Proposal from GJS Dillon was put before the Board of Trustees. The Proposal is more expensive than the previous charge. However, Fisher German LLP considered they under-priced the Hopmarket contract and would not be able to honour a price of this order, even if they were willing to continue. Officers were satisfied that the Proposal as presented will not create a financial pressure for the Charity.
The Trustees agreed with the recommendation to accept the Proposal. Trustees concluded that the initial term should be for 3 years with the option to roll on. The contract with Fisher German LLP terminated on 31st March 2023 and GJS Dillon commenced with effect from 1st April 2023.
Platform Housing Group
A number of online meetings were held between Trustees, Officers and senior staff from Platform Housing Group during the year to discuss various matters of mutual interest, including roof repairs, window replacement and the fire alarm system.
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The Hopmarket Charity
Report of the Trustees for the Year Ended 31st March 2023
ACHIEVEMENT AND PERFORMANCE (continued)
Hopmarket Promotion and Income Generation
Janet Yates, the City Council's Economic Development Officer (Enterprise and Business Growth) advises the Board and traders on marketing initiatives including social media, and income generation. The Trustees receive regular briefing notes at their Board meetings.
During the year the trading position showed signs of improvement. The Charity has a promotions budget and it was agreed that the budget for 2022/23 should be the underspend from 2021/22 (£106.94), the ARG Restart grant for a new website (£6,000) along with a new allocation of £6,200 for 2022/23. With an additional contribution to signage the total amount for the year was £12,980.74.
New developments agreed by the Trustees during the year include proposals for the installation of new courtyard bins and wall mounted ashtrays and the location of 2 new cycle stands.
Legal Issues
The Board received advice and guidance throughout the year from Sian Stroud, the City Council's Corporate Director - Planning and Governance, with additional advice from Georgina Coley, Legal Services Manager. Two issues which arose during the year required specialist legal advice:
14 The Foregate (Black & Whit3) - Following a criminal conviction of the tenant for assault on the occupier of no. 15 The Foregate (Hopmarket Flowers), external legal advice was sought on behalf of the Trustees. The response was that an assault by an individual tenant on another tenant is not a matter which is relevant to the terms of the tenancy. The Trustees acknowledged that the advice from the external lawyers must be accepted and no action can be taken by the Charity as landlord to remove the tenant. The Trustees concluded that all tenants should agree to a set of good neighbour regulations.
13 The Foregate (The Emporium) - It was evident that the tenant was sub-letting part of the premises with no agreement and no income to the Charity. Specialist legal advice was sought to protect the legal interests of the Charity and a notice was served under the Law of Property Act 1925 requiring the change of use to cease. However, the tenant subsequently vacated the property in November 2022 with outstanding rent arrears of around £16,000. The Trustees agreed to instruct Officers pursue repayment of this debt. Steps have been taken to bring 13 The Foregate back to market as a lettable unit.
Applications for Grant Aid
The Trustees agreed a sum of £42k for grants to be awarded by the Hopmarket Charity for 2023/24. A total of 17 grant applications were received during 2022/23 with bids totalling just over £124k.
In line with the grant awards process agreed at the Trustees in 2016, a summary assessment of the applications against the agreed criteria was completed by members of the Council's Finance Service. This was independently reviewed by the Council's Head of Finance, who is the Charity's Treasurer.
Following this process, three Trustees, together with the Treasurer and an officer from the City Council Finance Team, met to review the assessment findings, in line with the agreed procedure. The summary assessment of applications was then reported to the Trustees at their Board meeting on 27th March 2023. The Trustees agreed that in the next financial year the Charity will make grants to 10 organisations totalling £42,279. Notification of these grant awards was given to the organisations shortly after the financial year end.
FINANCIAL REVIEW
Financial position
The Financial review was carried out in Feb 23 for 2022/23 and was based on the current year-to-date actuals and the forecasts of future costs and income. The level of income was forecast to be less than budgeted. This was due mainly to vacant units and outstanding debt. The management and administration costs were forecast to be more than budgeted, mainly due to legal fees and an increased contingency to cover any further costs. The premises expenditure was forecast to be lower due to less repair and maintenance work being carried out.
The forecast overall surplus at 31 March 2023 was c£42k. Therefore, this amount was made available for funding grant distribution in 2023/24. The surplus was forecast to be c.£21k less than budgeted and included a contribution of £6.5k to replenish the Development Fund.
The forecast surplus for 31st Mar 2024 was £45.9k.
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The Hopmarket Charity
Report of the Trustees for the Year Ended 31st March 2023
FINANCIAL REVIEW (continued)
The Repairs Fund at 31 March 2023 was forecast to be higher than budgeted due to no major repairs having been carried out in 2022/23.
There was a balance of £12.3K on the Development Fund reserve brought forward from 2021/22. The forecast spend for 22/23 was £6.2k leaving a balance of £6.1k to be carried forward to 23/24 which has been ringfenced for the new website.
Reserves policy
The Charity holds general unrestricted funds (which excludes amounts held in designated funds) of £47,588 (2122 - £91,933) to fund ongoing expenditure if there is a future drop in rental income received by the Charity.
Details regarding designated funds held by the Charity can be found in note 14 of the notes to the financial statements.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Hopmarket is a Charity established under Act of Parliament. Its current Governing Act is the Worcester City Council Act 1985.
Recruitment and appointment of new trustees
The Charity is governed by a Board of Trustees. The Board has at least 6, but not more than 7 Worcester City Councillors and at least 2, but no more than 3 Independent Trustees. The City Councillor Trustees are appointed annually in May. The Independent Trustees are appointed for a period of up to four years.
The following Worcester City Councillors were Trustees appointed by the Council for the period covered by this report:
-
Councillor Jenny Barnes
-
- Councillor Allah Ditta (resigned 23 May 2023) - Councillor Nida Hassan (resigned 23 May 2023) - Councillor Jo Hodges (resigned 9 May 2022) - Councillor Stephen Hodgson - Councillor Mike Johnson (resigned 9 May 2022) - Councillor Karen Lewing - Councillor Chris Mitchell (appointed 5 November 2022 and resigned 23 May 2023)
The following Independent Trustees were Trustees appointed by the Council for the period covered by this report:
-
Jo Hodges (appointed 24 May 2022)
-
Bill Simpson
The Chair of the Trustees for the period was Mr Bill Simpson. Councillor Mike Johnson was Vice-Chair to May 2022. He was succeeded by Councillor Jenny Barnes
The Trustees Board met four times during the period covered by this report, in August and November 2022 and January and March 2023.
Organisational structure
The Charity is administered by Worcester City Council from the Guildhall, High Street, Worcester. The Council's Head of Finance acts as the Treasurer of the Charity and legal support is provided by the Council's Legal Services team.
Trustee remuneration
The Trustees received no remuneration during 2022/23 and there were no related party transactions.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number 244569
Principal address
Guildhall Worcester Worcestershire WR1 2EY
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The Hopmarket Charity Report of the Trustees for the Year Ended 31st March 2023 Trustees City Councillor Truste85 Councilloi Jenny Baine5 Councillor Lynn Denham Councillor Allah Ditta Councillor Nida Hassan Councillor Josephine Hodges Ctsuncillor Stephen Hodg50n Counollor Mike Johnson Councillor Karen Lewing Councillor Chiis Mitchell Councillor Elena Round Councillor James Stanley Vice-chairman Resigned 23 May 2023 (reappointed as an Independent Tiustee) Appointed 23 May 2023 Re51gned 23 May 2023 Resigned 23 May 2023 Resigned 24 May 2022 (reappointed as an Independent Trustee) Resigned g May 2022 Vice-Ch8irman Appointed 5 Novernber 2022 and resigned 23 May 2023 Appointed 23 May 2023 Appointed 23 May 2023 Ind8pendent Trustèes Jenny Barnes Josephine Hodges Bill Simpson Vice-chairman Reappointed 23 May 2023 Ilormer City Councillor Trustee) Reappointed 24 May 2022 Iformer City Councillor Trustee) Chairman Independent Examiner The Richards Sandy Partnership Thoineloe House 25 Bart>ourne Road Worcester Worcestershire WRI 1RU Treasur8r Mark Baldwin Head of Finance Wor¢ester Cily Council The Guildhall High Slieet Worceslei Worcestershire WR12EY Administrators Worcester City Council The Guildhall High Street Wtsrcester Worcesteishire VVR12EY Investment property manag8rs GJS Dillon Limited 7 Roman Way Business Centre Droitwich Woicestershire WR9 9AJ Fisher German LLP Global House Hindlip Lane Worcester WR3 8SB Approved b order of the board of trustees on 20th November 2023 and signed on its behalf by.. B Simps Trust Page 4
The Hopmarket Charity
Statement of Financial Activities
for the Year Ended 31st March 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3 Investment income 4 Total EXPENDITURE ON Raising funds 5 Charitable activities Grants issued Total NET INCOME/(EXPENDITURE) Transfers between funds 14 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ - 148,603 148,603 91,857 88,311 180,168 (31,565) (10,932) (42,497) 1,261,933 1,219,436 |
Development designated fund £ - - - - - - - 932 932 12,307 13,239 |
Repairs designated fund £ - - - - - - - 10,000 10,000 82,567 **92,567 ** |
2023 Total funds £ - 148,603 148,603 91,857 88,311 180,168 (31,565) - (31,565) 1,356,807 1,325,242 |
2022 Total funds £ 8,875 145,218 |
|---|---|---|---|---|---|
| 154,093 | |||||
| 79,274 24,028 |
|||||
| 103,302 | |||||
| 50,791 - |
|||||
| 50,791 1,306,016 |
|||||
| 1,356,807 |
The notes form part of these financial statements
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The Hopmarket Charity Balance Sheet 31st Mah 2023 2023 2022 Development designated fund Repairs designated fund Unrestricted funds Total funds Total funds Notes FIXED ASSETS Investmenl property 10 1.170,000 1.170,000 1,170,000 CURRENT ASSETS Debtors Cash at bank 103,964 50,232 103,964 156.238 127,273 116,722 13,439 92,S67 154,196 13,439 92,567 260.202 243,995 CREDITORS Amounts falling due within one year 12 1103,7111 12001 1103,9111 155.0911 NET CURRENT ASSETS 13,239 92,567 156.291 188.904 TOTAL ASSETS LESS CURRENT LIABILITIES 1,220,485 13,239 92.567 1,326.291 1.358,904 CREDITORS Amounts falling due After more than one year 13 11,0491 11.0491 12,0971 NET ASSETS 1219436 13,239 92,567 1325,242 1,356,807 FUNDS Unrestricted funds: General unrestricted funds Capital reserve fund Development fund Repairs fund 14 49,436 1,170,000 13,239 92.567 91,933 1,170,000 12.307 1,325.242 1.356,807 TOTAL FUNDS 1,325,242 1,35e.807 The financial slalemenls were approved by the Board tsf Trustees and authorised for issue on 20th November 2023 and wore signed on its behalf by.. Bsi on-T stee The notes lom part of these financial statemerils Page 7
The Hopmarket Charity
Notes to the Financial Statements for the Year Ended 31st March 2023
1. ACCOUNTING POLICIES
BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
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 £1.
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.
Rental income is received on a straight line basis over the period to which it relates.
Grant income is recognised when there is evidence of entitlement to the grant, receipt is probable and its amount can be measured reliably. Entitlement usually arises immediately on its receipt, unless there are terms or conditions which must be met before the charity is entitled to the income.
Interest income is recognised for all interest-bearing instruments on an accruals basis.
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.
Grants payable are charged to expenditure when the offer is conveyed to the recipient, unless the offer is conditional in which case such grants are charged to expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
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 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.
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 when the charity becomes party to contractual provisions of the instrument.
Financial assets are offset, with the net amounts presented in the accounts where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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The Hopmarket Charity
Notes to the Financial Statements - continued for the Year Ended 31st March 2023
1. ACCOUNTING POLICIES - continued
FINANCIAL INSTRUMENTS
Basic Financial Assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Basic Financial Liabilities
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction cost.
SERVICE CHARGE MONIES
Service charge monies collected and managed by the investment property manager of the charity are managed on trust on behalf of the tenants of the investment property. Service charge monies are not considered to belong to the charity and the financial activities (including income, expenditure, assets and liabilities) relating to service charge monies have been excluded from these financial statements.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Accounting estimates and judgement are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant sources of estimation uncertainty
The investment property is revalued to market value based on a year end valuation performed by the trustees (based on a prior year valuation performed by a qualified independent valuer). However, some judgement is applied in comparing the investment property to recent sales of similar properties in the area and the market value of the investment property cannot be directly measured until such time that it is sold. The value of investment property is included in note 10 of the financial statements.
3. DONATIONS AND LEGACIES
| Grants Grants received, included in the above, are as follows: Worcester City Council - Covid-19 relief 4. INVESTMENT INCOME Rents received |
2023 £ - 2023 £ - 2023 £ 148,603 |
2022 £ 8,875 2022 £ 8,875 2022 £ 145,218 |
|---|---|---|
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continued...
The Hopmarket Charity
Notes to the Financial Statements - continued
for the Year Ended 31st March 2023
5. RAISING FUNDS
INVESTMENT MANAGEMENT COSTS
6.
| Investment property manager fees Property insurance Advertising and marketing Electricity, water and business rates Bad debt provision Property repairs and maintenance GRANTS PAYABLE Grants paid to institutions The total grants paid to institutions during the year was as follows: Armchair Blind Veterans UK Disabled Sailors Association Footsteps Happy Days Headway Worcester Trust Maggs Day Centre Mentor Link React Relate Worcestershire St. Stephen's Church Worcester Citizens Advice Bureau & WHABAC Worcester Community Trust |
2023 £ 14,990 50,627 5,568 1,646 7,808 11,218 91,857 2023 £ 59,605 2023 £ 3,000 1,000 3,500 5,000 1,020 6,300 8,000 7,300 4,685 1,500 2,300 6,000 10,000 59,605 |
2022 £ 28,300 38,061 7,633 2,424 - 2,856 |
|---|---|---|
| 79,274 | ||
| 2022 £ - |
||
| 2022 £ - - - - - - - - - - - - - |
||
| - |
The total grants paid to institutions during the year was as follows:
7.
SUPPORT COSTS
Support costs, included in the above, are as follows:
| Administration charges Independent examination fee Trustee indemnity insurance Legal fees Sundries |
2023 £ 16,300 2,190 682 9,294 240 28,706 |
2022 £ 16,300 2,130 394 4,946 258 |
|---|---|---|
| 24,028 |
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The Hopmarket Charity
Notes to the Financial Statements - continued for the Year Ended 31st March 2023
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st March 2023 nor for the year ended 31st March 2022.
TRUSTEES' EXPENSES
There were no trustees' expenses paid for the year ended 31st March 2023 nor for the year ended 31st March 2022.
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
10.
| INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Raising funds Charitable activities Grants issued Total NET INCOME Transfers between funds Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD INVESTMENT PROPERTY FAIR VALUE At 1st April 2022 and 31st March 2023 NET BOOK VALUE At 31st March 2023 At 31st March 2022 |
Unrestricted funds £ 8,875 145,218 154,093 79,274 24,028 103,302 50,791 (14,834) 35,957 1,225,976 1,261,933 |
Development designated fund £ - - - - - - - 4,834 4,834 7,473 12,307 |
Repairs designated fund £ - - - - - - - 10,000 10,000 72,567 82,567 |
Total funds £ 8,875 145,218 |
|
|---|---|---|---|---|---|
| 154,093 | |||||
| 79,274 24,028 |
|||||
| 103,302 | |||||
| 50,791 - |
|||||
| 50,791 1,306,016 |
|||||
| 1,356,807 | |||||
| £ 1,170,000 1,170,000 1,170,000 |
|||||
The year end valuation of investment property has been undertaken by the trustees, based on 2021's valuation undertaken by Jason Clines MRICS on behalf of Fisher German LLP.
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The Hopmarket Charity
Notes to the Financial Statements - continued
for the Year Ended 31st March 2023
| 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Fisher German LLP Prepayments and accrued income 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Tenant deposits Worcester City Council Accrued expenses Deferred income (see note 15) 13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Deferred income (see note 15) 14. MOVEMENT IN FUNDS Net movement At 1.4.22 in funds £ £ Unrestricted funds General unrestricted funds 91,933 (31,565) Capital reserve fund 1,170,000 - Development fund 12,307 - Repairs fund 82,567 - 1,356,807 (31,565) TOTAL FUNDS 1,356,807 (31,565) Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General unrestricted funds 148,603 TOTAL FUNDS 148,603 |
2023 £ 1,688 43,696 58,580 103,964 2023 £ 2,204 96,198 4,461 1,048 103,911 2023 £ 1,049 Transfers between funds £ (10,932) - 932 10,000 - - Resources expended £ (180,168) **(180,168) ** |
2022 £ 5,994 70,831 50,448 127,273 2022 £ 4,048 28,574 21,420 1,049 55,091 2022 £ 2,097 At 31.3.23 £ 49,436 1,170,000 13,239 92,567 1,325,242 1,325,242 Movement in funds £ (31,565) **(31,565) ** |
|
|---|---|---|---|
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The Hopmarket Charity
Notes to the Financial Statements - continued for the Year Ended 31st March 2023
14. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General unrestricted funds Capital reserve fund Development fund Repairs fund TOTAL FUNDS Comparative net movement in funds, included in Unrestricted funds General unrestricted funds TOTAL FUNDS |
Net movement At 1.4.21 in funds £ £ 55,976 50,791 1,170,000 - 7,473 - 72,567 - 1,306,016 50,791 1,306,016 50,791 the above are as follows: Incoming resources £ 154,093 154,093 |
Transfers between funds £ (14,834) - 4,834 10,000 - - Resources expended £ (103,302) (103,302) |
At 31.3.22 £ 91,933 1,170,000 12,307 82,567 |
At 31.3.22 £ 91,933 1,170,000 12,307 82,567 |
|
|---|---|---|---|---|---|
| 1,356,807 | |||||
| 1,356,807 | |||||
| Movement in funds £ 50,791 50,791 |
|||||
| 50,791 |
Repairs Fund
The Repairs Fund is held to provide funding for major repairs and as a contingency for unforeseen repairs. This is particularly important for a building of this age, type and construction. The Charity's property agent is consulted to ensure the adequacy of the reserve.
Development Fund
The Development Fund is held for future investment in marketing activity to promote and develop the Hopmarket and thereby attract more lettings.
Capital Reserves Fund
The Capital Reserves Fund represents the Charity's holding in the investment property.
15. DEFERRED INCOME
Deferred income relates to £2,097 (2022 - £3,145) 10 year lease payment received in advance.
16. RELATED PARTY DISCLOSURES
Worcester City Council provides key management personnel services to the charity. Worcester City Council received key management personnel remuneration for these services of £16,300 (2022 - £16,300). During the year Worcester City Council made payments to third parties as agent of the charity totalling £79,898 (2022 - £15,791). At the year end the charity owed Worcester City Council £96,197 (2022 - £28,574).
There were no other related party transactions in the year.
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The Hopmarket Charity
Notes to the Financial Statements - continued for the Year Ended 31st March 2023
17. OPERATING LEASE INCOME COMMITMENTS
Minimum lease income due to the charity under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years After five years |
2023 £ 84,469 214,797 128,339 472,605 |
2022 £ 72,303 117,303 161,950 |
|---|---|---|
| 351,556 |
18. FUNDS HELD AS AGENT
At the year end Fisher German held on trust in regard to service charge monies relating to the tenants of the investment property cash of £15,691 (2022 - £3,135).
This excludes net amounts owed to the service charge monies account by tenants and the charity, as well as amounts owed by the service charge monies account to its creditors.
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The Hopmarket Charity
Detailed Statement of Financial Activities for the Year Ended 31st March 2023
| INCOME AND ENDOWMENTS Donations and legacies Grants Investment income Rents received Total incoming resources EXPENDITURE Investment management costs Investment property manager fees Property insurance Advertising and marketing Electricity, water and business rates Bad debt provision Property repairs and maintenance Charitable activities Grants to institutions Support costs Administration charges Independent examination fee Trustee indemnity insurance Legal fees Sundries Total resources expended Net (expenditure)/income |
2023 £ - 148,603 148,603 14,990 50,627 5,568 1,646 7,808 11,218 91,857 59,605 16,300 2,190 682 9,294 240 28,706 180,168 **(31,565) ** |
2022 £ 8,875 145,218 |
|---|---|---|
| 154,093 28,300 38,061 7,633 2,424 - 2,856 |
||
| 79,274 - 16,300 2,130 394 4,946 258 |
||
| 24,028 | ||
| 103,302 | ||
| 50,791 |
This page does not form part of the statutory financial statements
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