## **THE TORCH ASSOCIATION** **TRUSTEES’ REPORT AND ACCOUNTS FOR YEAR ENDED 31[st] MARCH 2022** **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 2022 ## **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. In order to strengthen the breadth of expertise at Trustee level it is intended to apply for an amendment to the Constitution to allow for the appointment of up to two further Trustees. The administration of the Charity is conducted through a Management Committee, working in accordance with the current 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. ## **Financial Performance** With the easing of the pandemic, limited reopening of the Torch Centre was possible from March. However, it was a slow, gradual process, which suffered further setbacks when the Omicron variant arrived in the winter. Consequently, rental income struggled to reach pre-Pandemic levels and the bar was just open for limited periods. Page 1 However, the charity was able to take advantage of £10.7k from two Government Business Support Grants, plus the Job Retention Scheme continued through to September providing £4.7k in support of salary payments. In addition, Torch was also fortunate to receive £3.1k of unrestricted donations from several grant awarding bodies. As a result, the net reserves improved significantly, rising by £6,165 to end the year at £19,772. ## **Strategic Review** Since March 2022, usage of the Centre has approached pre-Covid levels. However, current and forecast inflationary pressures will inevitably result in increased costs. Indeed, salaries have already risen by 6.6% in line with national minimum wage levels. Suppliers to Torch, of goods and services will, no doubt, be looking to raise prices. However, regarding utilities the good news is Torch has fixed price contracts in place for both electricity (until October 2023) and gas (until August 2025) supplies. Modest increases in rental have been introduced from April. But further, more substantial, increases may be required as the year progresses. The improved reserves will provide an invaluable cushion in the current difficult financial climate; but it will be necessary to monitor the position closely as the year proceeds. ## **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 the charity. As mentioned above, at the year end, net reserves stood at £19,772, significantly above the target level of £14,000 set following the Annual Reserves Review. Current reserves held, post closure costs, provide in excess of six months of unrestricted operating expenditure. ## **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 June 2022 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 2022 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 progress following 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 returning to normal operating following the pandemic and economic downturn, along with 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 Graham Hall CPFA** 12 Kingswood Park Bonsor Drive Tadworth Surrey KT20 6AY Date: 27 June 2022 Page 3 ## **THE TORCH ASSOCIATION** ## **Statement of Financial Activities** **including Income & Expenditure Account for the Year Ended March 2022** |**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**|**2022**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**Funds**
13,799
1,000
14,799
3
0
3
15,326
4,675
20,000
**29,128**
**5,675**
**34,802**
23,347
4,675
28,022
**23,347**
**4,675**
**28,022**
5,780
1,000
6,780
148,421
0 148,421
**154,201**
**1,000 155,201**|**2021**
Total
Funds
34,988
12
10,761
45,761
43,122
43,122
2,639
145,782
148,421| |---|---|---| Page 4 THE TORCH ASSOCIATION la￿1 She•t a5 at 3tst Mawth 2022 T*￿ble assets Sto¢ks Cash In bank & at haThl L525 551 23J72 23.534 Creditors.. due T*lthin one year 9.917 772 13.617 301 148.421 134,429 19,T12 134,804 13,617 Unrestrlcted Reserves Totsl Funds 155,201 148.421 The were approved bytheTrustees on...2.11.£./IA2L.. Mr Brian Mas Mr John Roblnson ## **THE TORCH ASSOCIATION** ## **Notes to the Accounts for the Year Ended 31[st] March 2022** ## **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. - **1.4 Tangible fixed assets and 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** As the pandemic eased, reopening of the centre was possible, although the Omicron variant created further issues later in the year. Consequently, rental income has still to return to previous levels. However, the charity was able to take advantage of Government Business Support Grants (£10.7k) and the Job Retention Scheme continued through to September providing £4.7k in support of salary payments. In addition, Torch received £3.1k of unrestricted donations from a number of grant awarding bodies. As a result, reserves further improved from £13.6k to £19.8k at the year end, reasonably above the new target level of £14k.However, the Trustees feel this cushion is valuable given the uncertain economic outlook with looming inflation and energy cost rises. ## **1.8 Going Concern** Usage of the Centre since March 2022 is close to pre Covid levels. However, cost pressures are certain to increase given the current & forecast economic conditions. Modest rental price increases have been introduced and further rises may be necessary later. Regarding energy costs, fixed priced contracts are in place for the 2022-23 financial year. In addition, the increased reserves level mentioned above provide a further cushion. 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

Hexham Town Council

Bridge Club Donation

Hiscox

Straker Trust

TOTAL||**2022**|**Total**
**Funds**
10,667
0
0
0
0
0
400
0
0
1,000
250
482
2,000

14,799| |---|---|---|---| ||**Unrestricted**
**Funds**
10,667
400
250
482
2,000
13,799|**Restricted**
**Funds**
1,000

1,000|| 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|**2022**
3
**2022**
4,675
-5,674
0
21,000
20,000
6,138
551
7,452
-1,525
6,478
-339
3,263
128
811
159
750
162
0
61
5,334
-5,674
**2022**
28,022
0
28,022|**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| |---|---|---| Page 8 |**6**
**Trustees - Remuneration**

**7**
**Employees**


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


**Cost**

At 1 April 2021 and at 31 March
2022


**Depreciation**

At 1 April 2021

Charge for Year

At 31 March 2022


**Net Book Value**

31stMarch 2022

31stMarch 2021

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


Trade Creditors

**10**
**Expenditure Analysis**





Salaries

Cleaning

Utilities

Post/Telephone

Repairs & Maintenance

Insurance

PRS

Security

Misc

Depreciation
|0
**2022**
2
**Leasehold**
**Building**
148,679
13,875
375
14,250
134,429
134,804
**2022**
2,800|0
**2021**
525
**Equipment**
9,142
9,142
0
9,142
0
0
**2021**
9,917
**2022**|**Fix &**
**Fit**
11,504

11,504
0
11,504
0

0

Total
18,492
724
4,593
1,231
1,339
920
0
348
0
375
28,022|**TOTAL**
169,325
34,521
375
34,896
134,429
134,804
**2021**
19,373
963
3,019
1,747
15,807
762
0
1,076
0
375
43,122| |---|---|---|---|---| ||Unrestricted
Funds
13,817
724
4,593
1,231
1,339
920
0
348
0
375
23,347|Restricted
Funds
4,675

4,675||| Page 9