## **THE TORCH ASSOCIATION** **TRUSTEES’ REPORT AND ACCOUNTS FOR YEAR ENDED 31[st] MARCH 2021** **Charity Registration No. 515527** ## **THE TORCH ASSOCIATION** |**LEGAL AND ADMINISTRATIVE**|**INFORMATION**| |---|---| |**Registered Charity Name**|THE TORCH ASSOCIATION| |**Charity Number**|515527| |**Trustees**|Mr Brian Massey MBE (Chairman)| ||Mr John Robinson| ||Mrs Bryony Gibson| |**Hon. Treasurer**|Dr Howard Forrest| ||White Gates Cottage| ||Elvaston Park Road| ||Hexham| ||Northumberland| ||NE46 2HT| |**Principal Address**|Torch Centre| ||Corbridge Road| ||Hexham| ||Northumberland| ||NE46 1QS| |**Bankers**|Barclays| ||Priestpopple| ||Hexham| ||Northumberland| ||NE46 1PE| ## **CONTENTS** ||Page| |---|---| |Trustees' Annual Report|1-2| |Independent Examiner's Report|3| |Statement of Financial Activities|4| |Balance Sheet|5| |Notes to the Accounts|6-9| ## **Trustees' Annual Report** ## Year ending 31 March 2021 ## **Formation of the Charity** The Charity was established through a Charitable Trust Deed dated 13[th] September 1984. ## **Objectives of the Charity** The relief of illness and suffering of all disabled persons resident in a defined local area of Tynedale and beyond by providing, managing and maintaining a Centre for recreation or other leisure time occupation and in particular by providing facilities for competitive and non- competitive sports. ## **Administration** The names of the Trustees of the Association are provided above. Where vacancies arise, they are advertised externally and among the Trustees’ personal contacts. The administration of the Charity is conducted through a Management Committee, working in accordance with the formal amended constitution approved in July 2017, and meeting quarterly under the chairmanship of one of the Trustees, Mr Brian Massey. ## **Organisation** There are two employees, one a part time administrator and the other a part time caretaker/cleaner/barman **.** ## **Management** The Management Committee continues to focus on and address the following issues: **1.** The need to raise the profile of the Torch Centre within the town of Hexham. **2.** The need to increase income to meet the cost of repairs and maintenance on the building. **3.** The need to maximise the use of the letting rooms and bar. **4.** The procurement of grants to carry out substantial repairs and improvements to the building. ## **Risk Assessment** The Management Committee duly considered all the risks to which the Charity is exposed and was satisfied that it had in place appropriate measures to mitigate any exposure to such risks. These risks include any ongoing covid lockdown restrictions, any falling usage with resultant drop in income and any unexpected maintenance and capital expenditure. Page 1 ## **Strategic Review** Following the coronavirus lockdown all facilities at the Centre were immediately temporarily closed down and the two part-time members of staff furloughed. During lockdown, there has been no regular income to the charity, whilst expenditure has been reduced to the minimum. Thanks to the Government's furlough payments and a business grant of £10,000 and together with generous grants from local Trusts the future of the Torch Centre has been secured with adequate funds to meet outgoings over the year to the end of March 2021. ## **Financial Performance** Despite the implications of the Covid pandemic and related lockdown, the Charity was able to generate funds through a number of different routes including grants from various Trusts, the County Council and Government business grants. This enabled some essential upgrading of the internal facilities to be undertaken during the year. ## **Reserves Policy** The Trustees conduct a review annually to ensure that there are sufficient funds to maintain the charity’s financial stability and ongoing development. The Trustees’ reserves policy is to ensure the charity holds unrestricted free reserves, after taking account of any fixed assets which are required for ongoing use, equivalent to the cost of closing down the charity. At 31[st] March 2021, the charity had unrestricted reserves of £13,617. The Trustees aim to ensure that the level of free reserves is now maintained at a minimum of £14,000 in line with the stated policy. ## **Serious incidents** During the year, there were no serious incidents recorded which the Trustees were required to report to the Charity Commission. ## **Public Benefit Statement** The Trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the Torch Association's charitable purpose and objectives. ## **Brian Massey** Trustee and Chairman of the Management Committee September 2021 Page 2 ## **Independent Examiner's Report to the Trustees of THE TORCH ASSOCIATION** I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 March 2021 which are set out on pages 4 to 9. ## **Respective responsibilities of trustees and examiner** As the charity trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). I report in respect of my examination of the Trust’s accounts carried out under section 145 of the Charities Act 2011 Act and in carrying out my examination, I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: - accounting records were not kept in accordance with section 130 of the Act or - the accounts do not accord with the accounting records I draw attention to the accounting policies and annual report of the trustees, which highlight the ongoing disruption during the year as a result of the Covid-19 pandemic. My opinion is not modified in respect of this matter. As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic and all other activities on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached. ## **Philip Hall CPFA** 12 Kingswood Park Bonsor Drive Tadworth Surrey KT20 6AY Date: 14 September 2021 Page 3 ## **THE TORCH ASSOCIATION** **Statement of Financial Activities including Income & Expenditure Account for the Year Ended March 2021** |**Notes**
**Income**
Donations & Fund raising
**2**
Investment Income
**3**
Charitable Activities
**4**
**Total Income**
**Expenditure**
Charitable Activities
**5&10**
**Total Expenditure**
Net Movement in Funds
Total funds brought forward
**Total funds carried forward**|**2021**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**Funds**
27,138
7,850
34,988
12
0
12
-3,443
14,205
10,761
**23,706**
**22,055**
**45,761**
16,805
26,317
43,122
**16,805**
**26,317**
**43,122**
6,901
-4,262
2,639
141,521
4,262 145,782
**148,421**
**0 148,421**|2020
Total
Funds
14,702
16
24,593
39,311
37,277
37,277
2,033
143,749
145,782| |---|---|---| Page 4 THE TORCH ASSOCIATION Balance Sheet as at 31st Mar¢h 2021 Notes 2021 2020 Tanglble assets 134 135,179 Stocks Cash In bank & at hand Totsl Current Assets 551 1.248 9,356 10,603 Z2,982 23￿34 Uabllltles Creditors: due w￿h1n one year 9,917 Net Currert Assets 13,617 10,603 Totsl Assets less current Ilabllltles 148N21 145,782 Represented bv Fixed Assets Unrestrltted Reserves Restricted Re5eTves Total Funds 134,804 13,617 135.179 6.341 4,262 145.782 148.421 The Accounts were approved by the Trustees on..... Mr Brian Ma55ey TNst•• r John Robinson Page 5 ## **THE TORCH ASSOCIATION** ## **Notes to the Accounts for the Year Ended 31[st] March 2021** ## **Note** ## **1 Accounting Policies** ## **1.1 Basis of preparation** - The Financial Statements have been prepared under the historical cost convention and comply with the Companies Act 2006, Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their Financial Statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). ## **1.2 Incoming resources** Donations, fund raising and charitable activities are recognised when received by the charity. - **1.3 Resources expended** - All expenditure is recognised by the charity when the liability has been incurred. Expenditure is recognised on an accruals basis as a liability is incurred. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees and costs linked to the strategic management of the charity. ## **Tangible fixed assets and 1.4 depreciation** - The amount of the Leasehold Building being depreciated is the original cost (£148,679) less its expected residual value (£130k); depreciated in equal instalments over 50 years. All earlier Equipment and Fixtures & Fittings purchased have now been fully depreciated. New purchases are fully written down in the year of purchase. - **1.5 Stock** - Stock is valued at the lower of cost and net realisable value. - **1.6 Accumulated Funds** Restricted funds are subject to specific conditions by donors as to how they may be used. Page 6 ## **1.7 Impact of the Covid Pandemic** Enforced closures during successive covid lockdown and restriction periods meant a huge loss of normal income (87% fall in rental & 100% in bar income). However, the charity was able to take advantage of Business Support Grants from both the Government (£22.6k) and Hexham Town Council (£1.5k). the two staff were put on furlough enabling receipt of £14.2k from the Job Retention Scheme towards their salaries. Other expenditure was closely monitored, although items of cost such as utilities, insurance, etc could not be avoided. However, it proved possible to improve the reserves position to a level where the Trustees felt able to implement some overdue maintenance and property upgrade projects whilst the Centre remained closed. The reserves at the year-end stood at £13.6k. Whilst higher than the previous target level of £10,000, the Trustees feel the additional funds are essential, given the uncertainties surrounding the continuing covid pandemic. ## **1.8 Going Concern** The full impact on the charity of the coronavirus pandemic is still unknown. However, limited reopening has been possible since May, and whilst many groups are looking to September at the earliest to return, the Trustees expect the charity to return to full operation. Staff remain on flexible furlough, with the scheme due to end in September. A final Business Support Grant of £8k was received in May '21, which has helped further strengthen reserves. Consequently, the Trustees are of the opinion the charity will have sufficient resources to meet its liabilities as they fall due in the coming year and consider it appropriate to prepare the accounts on a going concern basis. |**2**
**Donations & Fundraising**



Government Business Support
Grants

William Webster Charitable Trust

Joicey Trust

Willan Trust

Catherine Cookson Charitable Trust

Hexham Rotary

Henry Bell Trust

Sybil Ridley Legacy

Northumberland Community Chest

JH Burn Charity Trust

Jive Alive

David Wilson Homes

NCC Councillors Allowance

COOP

Karbon Homes

Barbour

Rothley Trust

Sir James Knott Trust

TOTAL||**2021**|**Total**
**Funds**
24,138
1,000
2,600
4,000
500
250
400
100
2,000
0
0
0
0
0
0
0
0
0
34,988|**2020**
0
0
0
0
0
500
1,050
0
2500
200
300
1,000
4,600
290
762
1,500
1,000
1,000
14,702| |---|---|---|---|---| ||**Unrestricted**
**Funds**
24,138
2,600
400
27,138|**Restricted**
**Funds**
1,000
4,000
500
250
100
2,000
7,850||| Page 7 |**3**
**Investment Income**
Interest Receivable
**4**
**Income from Charitable Activities**
HMRC Job Retention Scheme
Bar Sales (net – see below)
Subscriptions
Room Hire & Club Rent
TOTAL
**Bar Profit & Loss**
Income
Opening stock
Purchases
Closing stock
Cost of sales
Gross Margin
Expenditure
Salaries
Cleaning
Utilities
TV Licence
Repairs & Maintenance
Insurance
Performing Rights Society
Security
**Contribution/Loss**
**5**
**Expenditure**
**Charitable Activities**
General Expenditure
Auditors
TOTAL|**2021**
12
**2021**
14,205
-7,335
0
3,892
10,761
0
1,248
963
-551
1,659
-1,659
0
0
1,006
157
3,900
254
0
359
5,676
-7,335
**2021**
43,122
0
43,122|**2020**
16
**2020**
0
-5,713
365
29,940
24,593
13,229
1,603
11,201
-1,248
11,556
1,673
5,109
266
1,306
153
0
247
210
93
7,385
-5,713
**2020**
37,277
0
37,277| |---|---|---| Page 8 |**6**
**Trustees - Remuneration**

**7**
**Employees**


**8**
**Tangible Fixed Assets**


**Cost**

At 1 April 2020 and at 31 March
2021


**Depreciation**

At 1 April 2020

Charge for Year

At 31 March 2021


**Net Book Value**

31stMarch 2021

31stMarch 2020

**9**
**Creditors: within one year**


Trade Creditors

**10**
**Expenditure Analysis**





Salaries

Cleaning

Utilities

Post/Telephone

Repairs & Maintenance

Insurance

PRS

Security

Misc

Depreciation
|0
**2021**
2
**Leasehold**
**Building**
148,679
13,500
375
13,875
134,804
135,179
**2021**
9,917|0
**2020**
2
**Equipment**
9,142
9,142
0
9,142
0
0
**2020**
0
**2021**|
**Fix &**
**Fit**
11,504

11,504
0
11,504
0

0

Total
19,373
963
3,019
1,747
15,807
762
0
1,076
0
375
43,122|**TOTAL**
169,325
34,146
375
34,521
134,804
135,179
**2020**
15,326
799
3,919
1,508
13,698
743
631
279
0
375
37,277| |---|---|---|---|---| ||Unrestricted
Funds
5,168
963
3,019
1,090
4,832
762
0
596
0
375

16,805|Restricted
Funds
14,205
658
10,975
480
26,317||| Page 9