## **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_**|
**- 2 -**
## **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
**- 3 -**
## **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.
**- 4 -**
## **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.
**- 5 -**
## **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.
**- 6 -**
- 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
**- 7 -**
## **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
**- 8 -**
## **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_
**Page 9**
## **SOUTHWICK COMMUNITY ASSOCIATION**
|**BALANCE SHEET**AS AT 31 MARCH 2024
_Note *_
**TANGIBLE FIXED ASSETS**
_5_
**CURRENT ASSETS**
Debtors
_6_
Stocks
Short-term deposits
Cash at bank and in hand
_LESS_**CREDITORS:**
Amounts falling due
_7_
within one year
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
_LESS_**CREDITORS:**
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**_ ]
**Page 10**
## **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.
**Page 11**
## **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**
**Page 12**
## **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**|
**Page 13**
## **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.
**Page 14**