SOUTHWICK
COMMUNITY ASSOCIATION
REPORT OF THE TRUSTEES
AND
FINANCIAL STATEMENTS
FOR THE
YEAR ENDED 31 MARCH 2024
SOUTHWICK COMMUNITY ASSOCIATION
REPORT AND STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
| CONTENTS | |
|---|---|
| Page | |
| General Information | 3 |
| Trustees’ Report | 4 - 7 |
| Independent Examiner’s Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 - 14 |
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SOUTHWICK COMMUNITY ASSOCIATION
REPORT & ACCOUNTS for the year ended 31 March 2024
General Information
(current at date of this report)
Trustees Malcolm Gough (Chairman) David Comber (Vice-Chairman) Tony Brownings (Hon Secretary) Bob Ryder (Hon Treasurer) Simon Armes Robina Bayne Maureen Cripps Yvonne Fair John Garland Martin Oakley Raymond Richards Philip Simons Richard Woolgar * and acting President * and acting Vice-President
Registered Charity No.
305370
Address Southwick Community Centre 24 Southwick Street Southwick West Sussex BN42 4TE Independent Examiner Malcolm Wood FCA Bankers Barclays Bank plc, Leicester LE87 2BB
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SOUTHWICK COMMUNITY ASSOCIATION
The Association is an unincorporated association, founded under a constitution originally adopted in January 1945 (and most recently amended in June 2012). We are a registered charity (registration number 305370).
The Association’s constitution reflects the requirements of modern charity legislation and recommended good practice for community associations.
REPORT OF THE TRUSTEES for the year ended 31 March 2024
Responsibility for the overall control of the Association’s affairs rests in the board of managing trustees, elected each year by the membership at the AGM.
The Board of Trustees serving in 2023-24
| Malcolm Gough | (Chairman) |
|---|---|
| David Comber | (Vice-Chairman) |
| Tony Brownings | (Hon Secretary) |
| Bob Ryder | (Hon Treasurer) |
| Simon Armes | |
| Maureen Cripps | |
| Angus Dunn | |
| Yvonne Fair | |
| John Garland | |
| Martin Oakley | |
| Raymond Richards | |
| Philip Simons | |
| Richard Woolgar |
The Trustees herewith present their report, together with the financial statements of the Association, for the financial year beginning on 1 April 2023 and ending on 31 March 2024.
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Charitable purposes & public benefit
The Association works with public authorities, and with charities and other organisations, and with individual volunteers, to advance education and to provide facilities for social welfare, recreation and leisure-time occupation, for the benefit of the people of Southwick and the neighbouring communities.
In fulfilment of its charitable objectives, the Association runs a large community centre in Southwick, West Sussex. The Centre and its facilities are an important focus for the local community, with a wide range of events, activities and participating organisations.
The Association seeks to maintain a continuous programme of renewing, developing and improving the Centre’s facilities and services, for the benefit of local people.
The Trustees pay careful regard to the Charity Commission’s guidance on public benefit. We apply it in our general overview of the Association’s affairs and have continued to do so in our decision-making during the year.
A summary of the year
Demand for our rooms and other facilities continued to grow during the year, back to the levels experienced in 2019-20 ( i.e. before the impacts of the Covid pandemic). Against this more secure background of operating income, the Association took bigger steps this year in capital spending to improve and upgrade the Centre’s facilities (three times higher than the average spend over the previous four years). Also this year we made good progress in discussions with our freeholder, Adur District Council, about future improvements to the fabric of existing buildings. A project is now well advanced to replace two large ranges of windows - one fronting the 1960s Café wing and the other fronting a large all-purpose room in the north wing (converted from an old farm building in the early 1950s). Subject to the necessary approvals, these renovations should begin in 2025. Further discussions are under way on upgrading the Rifle Range wing (another conversion of dilapidated farm buildings, done in the late 1940s).
We continued our efforts to widen the reach of the Community Centre, aiming to stimulate new activities and social opportunities for local people. These include, for example, a range of lowcost courses and lectures; “tea and company” afternoons; and supported sessions for people with dementia. We have also engaged a number of local businesses to support the Centre in practical ways. For example, helping us to redecorate Centre rooms; and to build raised vegetable-beds in the Centre garden (now supplying fresh produce to the Centre Café).
These are positive developments, but, as flagged up in last year’s report, there is an awkward challenge in the running of our busy modern-day community centre when its governance is reliant on a model of affiliated ‘clubs’ and ‘societies’ - a model that has unfortunately been in a long-running and now serious decline. (This year, sadly, our traditional Individual Members Section had to dissolve, while the overall number of affiliated clubs also dropped still further.)
The Board of Trustees has therefore resolved to work towards the new status of Charitable Incorporated Organisation (CIO) - replacing the currently constituted “unincorporated association”. This would enable a wider and more open form of membership and governance, as well as modernising the powers and the practical administration of the charity. The Trustees agreed that the process of change be pursued as soon as practicable, with an aspiration to achieve CIO status in the course of 2025.
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Financial overview of the year
All of the Association’s assets and liabilities relate to delivery of its charitable aims and objectives. Our direct expenses in providing charitable services are the personnel and other costs involved in running the Community Centre and making the facilities available for community activities. The management and administration expenses are mainly personnel costs. We determine the levels of staff pay in accordance with a policy most recently codified in 2015.
Our Operating Fund, for the day-to-day running of the Community Centre , achieved a surplus of £29,000 for the year.
-
Income (at £333,000) was £67,000 higher than in the previous year (up 25%).
-
Expenditure on running costs (£304,000) was £54,000 higher than in the previous year (up 24%).
Our Development Fund , designated for improvement and development of the Centre’s facilities, equipment and community activities, also had a good year - with a surplus of £16,000. The biggest element was the annual Beer Festival. But other significant contributions came from a new two-day music festival, together with a series of fundraising concerts hosted in the Barn Theatre. And donations, legacies and Gift Aid contributed nearly £3,000.
Our capital expenditure this year was substantially higher than the long-term average. We invested £43,000 in the improvement and renewal of facilities and equipment.
-
By far the largest item was £27,000 on upgrades to the kitchen and café. Most of that was for oven replacements and for extraction and ventilation to meet modern standards.
-
We spent £11,000 on improved equipment for the Barn hall - completing the upgrade of the sound system; renewing lamps for theatre and other events; and upgrading the stock of chairs.
-
Across the rest of the Centre, we spent a total of £6,000 on minor improvements to fixtures and fittings - signage, counters, flooring, fire safety, and hand-dryers for washrooms.
Overall , the Association was in a similar financial position at the end of the financial year, compared with the previous year. Net current assets increased slightly (2½%) in cash terms.
The Association’s funds and its policy on reserves
The financial statements (p.9-15 below) set out the assets and liabilities of our funds.
-
The Operating Fund is concerned with the day-to-day running of the Community Centre. We aim to maintain an operating reserve at a level to ensure adequate resources to cope with unexpected pressures and short-term deficits. This reserve is being kept at around 50% of a normal year’s operating expenditure.
-
The Development Fund is sustained by fundraising from community and social events; by donations; by grant awards; and by reserves set aside for development and renewal purposes.
These are resources designated for renovation and improvement to the Community Centre; and for development of the facilities, equipment and services provided to the community.
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- The Establishment Fund comprises the “book value” of improvements we have carried out to the fabric of our leasehold buildings (i.e. the Community Centre itself).
Much of this book value was created from the deployment of capital grants received in the 1990s, to carry out major works of development and improvement.
Statement of the Trustees’ responsibilities
Under the law applicable to charities in England and Wales, the Trustees must prepare financial statements for each financial year, giving a true and fair view of the Association’s financial activities during the year and of its financial position at the end of the year. In preparing these financial statements, giving a true and fair view, the Trustees are expected to follow best practice and to:
-
select suitable accounting policies, and apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards and statements of recommended practice have been followed (subject to any departures disclosed and explained in the financial statements);
-
- prepare the financial statements on a “going-concern” basis (unless circumstances mean that assumption is no longer appropriate).
The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the Association, and that enable them both to ascertain the financial position of the Association and to ensure the financial statements comply with the Charities Act 2011.
The Trustees are responsible for safeguarding the assets of the charity - and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Trustees: [ Malcolm Gough ] and [ Robert Ryder ] Dated: 20 November 2024
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INDEPENDENT EXAMINER’S REPORT
to the Trustees of SOUTHWICK COMMUNITY ASSOCIATION
I report on the accounts of the charity for the year ended 31 March 2024, which are set out on pages 9 to 14 below.
Respective responsibilities of trustees and independent examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year (under section 144 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the accounts (under section 145 of the 2011 Act);
-
to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 Act);
-
to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with these records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, I do not express an audit opinion on the view given by the accounts.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
-
which gives me reasonable cause to believe that, in any material respect, the requirements:
-
to keep accounting records in accordance with section 130 of the 2011 Act; and
-
to prepare accounts which accord with the accounting records and to comply with the requirements of the 2011 Act;
-
have not been met; or
-
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
[ Malcolm Wood F.C.A. ]
Fellow of the Institute of Chartered Accountants in England and Wales
Dated: 20 November 2024
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SOUTHWICK COMMUNITY ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2024
| INCOME AND EXPENDITURE Notes INCOMING RESOURCES Charitable activities Operation of the community centre Other activities to generate funds Community events & fundraising Donations, gifts and legacies Grants Interest from deposit accounts TOTAL incoming resources EXPENDED RESOURCES 1. Cost of generating funds Community events & fundraising |
Unrestricted Funds £ * 333,365 46,056 2,784 1,000 3,297 386,502 26,568 |
Restricted Funds £ 0 0 |
TOTAL FUNDS 2024 £ 333,365 46,056 2,784 1,000 3,297 386,502 26,568 |
Total Funds 2023 £ 266,173 19,268 6,279 5,743 943 |
|---|---|---|---|---|
| 298,406 13,356 |
||||
| NET incoming resources available for charitable application |
359,934 | 0 | 359,934 | 285,050 |
| 2. Charitable expenditure Operating community facilities & services 3 Management and administration 3 & 4 TOTAL resources expended Movement in Funds(2023-24) Fund Transfers 9 Net movement in Funds [ B/Fwd ] FUND BALANCES at 31 March 2023 FUND BALANCESAT 31 March 2024 |
241,133 73,582 341,283 45,219 (3,834) 41,385 495,951 537,336 |
29,151 29,151 (29,151) 3,834 (25,317) 724,930 699,613 |
270,284 73,582 370,434 16,068 0 16,068 1,220,881 1,236,949 |
218,665 64,422 |
| 296,443 | ||||
| 1,963 0 1,963 1,218,918 |
||||
| 1,220,881 |
* The notes form part of these financial statements
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SOUTHWICK COMMUNITY ASSOCIATION
| BALANCE SHEETAS AT 31 MARCH 2024 _Note _ TANGIBLE FIXED ASSETS 5 CURRENT ASSETS Debtors 6 Stocks Short-term deposits Cash at bank and in hand LESSCREDITORS: Amounts falling due 7 within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES LESSCREDITORS: Amounts falling due after more than one year 8 TOTAL NET ASSETS FUNDS Unrestricted 9 Restricted 9 TOTAL FUNDS* |
31 March 2024 £ 784,788 54,657 5,416 238,019 179,890 477,982 -25,821 452,161 1,236,949 -- 1,236,949 537,336 699,613 1,236,949 |
31 March 2023 £ 780,750 31,457 4,348 234,722 185,447 |
|---|---|---|
| 455,974 -15,843 |
||
| 440,131 | ||
| 1,220,881 | ||
| -- | ||
| 1,220,881 | ||
| 495,951 724,930 |
||
| 1,220,881 |
* The notes form part of these financial statements
Approved by the board of Trustees and signed on its behalf by
- [ Malcolm Gough ] and [ Robert Ryder ]
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SOUTHWICK COMMUNITY ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting Policies
Accounting Convention
The accounts are prepared under the historical cost convention and in accordance with with the Charities Act 2011, the current Statement of Recommended Practice ("Accounting and Reporting by Charities" FRS 102) and with applicable accounting standards.
Accumulated Funds
The accumulated funds comprise the following:
- (a) Operating Fund
This fund is for the general management and operation of the Community Centre, and the day-to-day activities of the Association.
- (b) Development Fund
This fund is designated for income raised (and resources spent) to improve the Community Centre's facilities and equipment, and to develop its future sustainability and place in the community.
- (c) Establishment Fund
This restricted fund embodies the value of improvements carried out to the Community Centre's buildings (which are held on leasehold) and to the Centre's integral fixtures & fittings.
Fixed Assets
Fixed assets are recorded at cost or, in the case of fixed assets that have been donated to the Association, at valuation at the time of acquisition, less depreciation.
Depreciation
Improvements to the Community Centre's buildings, when they come into use, are amortised over the remaining period of the lease.
Other fixed assets are depreciated on a straight line basis over their useful lives, estimated to be:
Theatre equipment 10 to 20 years Other equipment & fittings 5 to 15 years Electronic equipment 3 to 7 years
Stocks
Stocks are valued at cost. They comprise consumable items which are used in the day-to-day operation of the Community Centre.
Income from operation of the Community Centre, grants & fundraising
These comprise amounts receivable during the year.
Donations, gifts & legacies
These comprise amounts received during the year.
Investment income
Investment income comprises interest income receivable on short-term deposits.
Resources expended
Resources expended are accounted for on an accruals basis.
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SOUTHWICK COMMUNITY ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
2 Charitable Expenditure
| Charitable expenditure includes: | 2024 | 2023 |
|---|---|---|
| Wages and salaries | 177,634 | 140,699 |
| Depreciation | 10,424 | 7,744 |
No employee earned £30,000 or more per annum.
No trustee received any remuneration, payments or benefits from the charity, other than refunds of expenses legitimately incurred on behalf of the charity.
The average number of employees (full-time equivalent, analysed by function) was:
| Community services Management and administration Fundraising and publicity |
2024 4.3 2.0 -- 6.3 |
2023 4.3 1.9 -- |
|---|---|---|
| 6.2 |
3 Resources Expended
| Personnel Costs Front-line operation of the Community Centre 113,781 Management and administration 63,853 £177,634 Management and Administration Audit fees Salaries and office costs |
Depreciation 10,424 -- £10,424 |
Other Costs 116,928 9,729 £126,657 |
Total 2024 241,133 73,582 £314,715 2024 73,182 400 £73,582 |
Total 2023 189,668 64,422 |
|---|---|---|---|---|
| £254,090 | ||||
| 2023 64,022 400 |
||||
| £64,422 |
4 Management and Administration
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SOUTHWICK COMMUNITY ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
5 Tangible Fixed Assets
| Leasehold improvements £ COST As at 1 April 2023 1,240,816 ADDITIONS 3,834 As at 31 March 2024 1,244,650 ACCUMULATED DEPRECIATION As at 1 April 2023 515,886 CHARGE FOR YEAR 29,151 As at 31 March 2024 545,037 NET BOOK VALUE As at 1 April 2023 724,930 As at 31 March 2024 699,613* |
Theatre equipment £ 129,574 9,227 138,801 102,258 3,352 105,610 27,316 33,191** |
Other fittings and equipment £ 96,268 30,552 126,821 67,765 7,072 74,837 28,503 51,984** |
Total £ 1,466,658 43,613 |
|---|---|---|---|
| 1,510,271 | |||
| 685,909 39,575 |
|||
| 725,484 | |||
| 780,749 | |||
| 784,788 |
All of the tangible fixed assets of the Association are used in the furtherance of its objects.
* The value of leasehold improvement assets is included in the Establishment Fund (Restricted).
** The value of all other tangible fixed assets is included in the Development Fund (Unrestricted).
| 6 Debtors Trade debtors Prepayments |
2024 50,869 3,788 £54,657 |
2023 28,182 3,275 |
|---|---|---|
| £31,457 |
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SOUTHWICK COMMUNITY ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
7 Creditors (amounts falling due within one year)
| Trade creditors Accruals Other creditors Loans |
2024 6,959 13,281 5,581 -- £25,821 |
2023 2,116 7,004 6,723 -- |
|---|---|---|
| £15,843 |
- 8 Creditors (amounts falling due after more than one year)
| 2024 | 2023 | |
|---|---|---|
| Within two to five years | £0 | £0 |
9 Restricted & Unrestricted Funds
| Restricted& Unrestricte | d Funds | ||||
|---|---|---|---|---|---|
| UNRESTRICTED funds Operating Fund Development Fund RESTRICTED funds Establishment Fund |
Balance at 1 April2023 117,827 378,124 495,951 724,930 £1,220,881 |
Movement in resour | ces Fund transfers 0 -3,834 -3,834 3,834 0 |
Balance at 31 March2024 146,901 390,435 |
|
| Incoming 333,365 53,137 386,502 0 £386,502 |
Outgoing -304,291 -36,992 -341,283 -29,151 -£370,434 |
||||
| 537,336 699,613 |
|||||
| £1,236,949 |
The reserve of UNRESTRICTED funds represents:
- in the Operating Fund
the general everyday income and expenditure involved in the operation of the Community Centre.
- in the Development Fund
the resources designated to improve the Community Centre's facilities and equipment; and to develop the Centre's future sustainability and place in the community.
The RESTRICTED funds of the Association represent:
- in the Establishment Fund
the book value of improvements carried out to the Community Centre's buildings, and to its integral fixtures and fittings.
The Association carried out a major building project (1996-98) with the help of specific grants from public bodies and donations from other contributors. To a considerable extent the Establishment Fund still comprises the value of the fixed assets created by that project. But other significant improvements to the Centre's buildings, fixtures and fittings have been carried out since - and all of those leasehold assets are also incorporated in the Establishment Fund.
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