## **THE TORCH ASSOCIATION** **TRUSTEES’ REPORT AND ACCOUNTS FOR YEAR ENDED 31 ST MARCH 2026** Charity Registration No: 515527 ## THE TORCH ASSOCIATION ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Registered Charity Name** THE TORCH ASSOCIATION **TRUSTEES** Mr Brian Massey MBE (Chairman) Mr John Robinson Mrs Bryony Gibson MBE Mrs Ann Francis Dr Howard Forrest **Hon. Treasurer** Helen Dobson **Principal Address** TORCH CENTRE CORBRIDGE ROAD HEXHAM NORTHUMBERLAND NE46 1QS **Bank** Lloyds PLC ## **CONTENTS** |**Trustees Report**|**1 - 3**|| |---|---|---| |**Treasurers Report**||**4 - 5**| |**Statement of Financial Activities**||**6**| |**Independent Examiner’s Report**||**6a**| |**Balance Sheet**||**7**| |**Notes to the Account**|**8**|| |**Breakdown of Financial Activities**||**9 - 10**| ## **Trustees Report** ## **Year Ending 31st March 2026** ## **Formation of the Charity** The governing document of the Charity is the Constitution adopted on the 11th April 1984 and last amended in July 2022. ## **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 current constitution, and meeting at least quarterly under the chairmanship of Gill Woodward. ## **Organisation** There is a part-time administrator, who receives a small honorarium, and two cleaners in part time employment. The bar is managed on a voluntary basis by the management Committee. The caretaking is managed by the administrator supported by volunteers. ## **Management** The Management Committee has continued to focus on and address the following: **1** 1 Raising the profile of the Torch Centre within the town of Hexham. 2 Increasing incomes to offset the increase in outgoings, particularly higher utility charges. 3 Maximising the use of the letting rooms and bar. 4 Ensuring compliances with relevant legislation. 5 Procuring grants to carry out ongoing repairs and improvements to the building. 6 Procuring grants to support the purchase of the freehold of the site of the Torch Building. ## **Risk Assessment** The Management Committee have taken measures to ensure that the charity and its building complies with all relevant legislation. Having considered all the risks to which the Charity is exposed the Committee is satisfied that there are in place measures to mitigate exposure to such risks. These risks include any reduction in usage of the building with a resultant drop in income and any unexpected maintenance and capital expenditure. ## **Financial Performance** During the year, income has nearly matched expenditure, excluding depreciation on the building. ## **Strategic Review** The Trustees have reviewed the Objects clause in the Constitution, and the Charity Commission has approved the proposed amended wording. The Trustees have entered negotiations with the landowner for the purchase of the freehold of the site of the Torch Centre, currently held on a lease expiring on 30th April 2034, with a view to securing the long-term future of the Charity. ## **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 **2** policy is to ensure that the charity holds unrestricted free reserves, after taking account of any fixed assets that are required for ongoing use, equivalent to the cost of closing the charity and currently assessed at £14,000. Cash reserves held at the year-end have enabled the charity to comply with our reserves policy. ## **Serious incidents** During the year, there were no serious incidents recorded which the Trustees were required to report to the Charity Commission. Brian Massey Chair of Trustees **3** ## **Treasurers Report** ## **Introduction** This report provides a summary of the Torch Associations financial position and key activities during the reporting period. It highlights the main areas of expenditure, overall financial performance, and considerations for the coming year. During the year, expenditure was focused on essential repairs, ongoing maintenance, and improvements to the facilities. Works undertaken included building repairs, refurbishment activity, pest control services, drainage works, and the replacement or upgrading of equipment and fixtures. These activities reflect the continued commitment to maintaining a safe, functional, and welcoming environment for users of the Torch Centre. Expenditure in this area remained consistent with the operational needs of an actively used community facility. Grant funding was used to support a range of capital improvements and refurbishment projects across key areas of the building. This included decorative improvements, upgrades to communal spaces, and the installation and completion of new access doors. The projects undertaken have contributed to improving the appearance, usability, and long-term sustainability of the facilities. The funding has been applied in line with the intended purpose of enhancing the quality and lifespan of the Torch Associations assets. ## **Overall Financial Position** The financial results for the year reflect a challenging income environment, resulting in a deficit position of £12020, of which £10858 is a figure included for depreciation of the building. Expenditure has remained broadly controlled and aligned with operational priorities. Despite these pressures, the organisation continues to maintain a stable underlying financial position supported by existing reserves and an established base of activities. The current position highlights the importance of maintaining careful financial oversight while continuing to invest in the upkeep and improvement of facilities. ## **Key Observations** - Continued investment has been made in the condition and usability of the building. - A balanced approach has been taken between essential maintenance and longer-term improvements. - No significant areas of overspending have been identified. - Financial challenges experienced during the year are considered manageable. **4** ## **Recommendations** The following actions are recommended for the coming year: - Continue planned preventative maintenance to reduce the risk of reactive repair costs. - Review recurring service costs to identify potential efficiencies. - Strengthen income generation, particularly unrestricted income streams. However, as hire costs have been maintained for the last 2 years, unfortunately due to increased utility costs rental charges will have to be increased. - Maintain prudent control over expenditure and monitor financial performance closely. - Continue clear monitoring and separation of grant-funded projects and expenditure. The continued success of the organisation relies heavily on the dedication, commitment, and hard work of a small group of volunteers who give their time freely throughout the year. - Continue to promote the Torch Centre as a venue for both one-off events and regular usage. A small number of individuals regularly undertake significant responsibilities behind the scenes, often contributing many hours each week to ensure the smooth running of the venue and its activities. Their work includes administration, financial oversight, preparing and submitting grant applications, opening and closing the premises, coordinating maintenance and improvements, organising activities and events for users, and supporting private functions through bar and event staffing. Much of this work takes place quietly and outside of normal hours, yet it remains essential to the operation and sustainability of the organisation. The willingness of these volunteers to take on substantial responsibilities and provide ongoing practical support has played a major role in maintaining services, improving facilities, and supporting the wider community. The Trustees/Committee wishes to formally recognise and thank those volunteers whose continued effort, reliability, and commitment make a meaningful difference to the organisation and everyone who uses the venue. ## **Conclusion** Although the year presented financial challenges due to reduced income levels, the organisation remains in a stable position and continues to demonstrate responsible financial management. Looking ahead, the focus will be on rebuilding income, maintaining effective cost control, and ensuring that resources continue to be directed towards sustaining and improving the facilities and services provided by the organisation. **5** ## **Statement of Financial Activities including** ## **Income & Expenditure as at 31[st] March 2026** |Notes
**Incom**
**e**
Grants -
Restricted
2
Grants –
Unrestricted
2
Gift
Aid
2
Investment
income
3
Charitable
Activities
4
**Total Income**
**Expenditure**
Charitable
Activities
5
Net Movement in Funds
Total funds B/F
Total funds C/F|**2025/**
**26**
2024/2
5
2023/2
4
**Unrestric**
**ted Funds**
**Restrict**
**ed**
**Funds**
**Total**
**Funds**
**7973**
**7973**
13500
570
**500**
**500**
7600
0
**3185**
**3185**
**26**
**26**
74
30
**38663**
**38663**
48946
24441| |---|---| ||**39189**
**11158**
**50347**
70120
25041
**51965**
**10402**
**62367**
59724
49732| ||**51965**
**10402**
**62367**
59724
49732
**-12536**
**756**
**-12020**
10396
-24691| ||128181
10396
13857
7
13857
7
138577
-11780
12679
7
12679
7| **6** **Report on the independent check of the accounts of the Torch association for the year ended 31[st] March 2026** B8iance Sheet as at 31" March 2026 2025126 2024125 2023124 Flxed Ass￿5 Property F & F Property F & F Depreciation 108584 -10858 TotaiFlxed As$et5 108584 120649 Current Assets Closing Barstock Trade Debtors Torch Association- Everyday 8ankA£count TorchAssociation- Restricted Funds Account 1747 1421 2802 21954 1332 20102 6610 Toialcurrent A55ets 30304 34025 9240 TOTALASSETS 128030 142609 129889 LIA8ILITIES Current Llabiillles Trade Creditors 1473 Total Current Llabllttles 1473 4032 1708 TOTAL NEF ASSETS 126557 1385TI 128181 Net ProliULoss NetProliYLoss Iprioryear) NetProfiULoss (current Year) 126557 138577 -12020 Th8Accounts were 8PPToved bytheTrustees on.............. /.*........ 7ts 1.o.i.&..................... Mr Brian M8888y- Trustee Mr John Robinson- Trustee **Notes to the Accounts for the Year Ended 31st March 2024** ## **Notes** ## **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, fundraising 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 and liability incurred. Governance costs include those costs association 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 (£120.6K); 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 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. **8** ## **Financial Activities** ## **Income & Expenditure as at 31[st] March 2026** |**INCOM**
**E**
_Grants_
Grants - Restricted
2
Grants - Unrestricted
Gift Aid
_Investment income_
3
Bank interest received
_Charitable Activities_
4
Donations & Fundraising
Events
Room
Hire
Membership
Misc Income
Bar Income (_see breakdown below_)
**_Bar proft &_**
**_loss_**
_Bar Income_
**16929**
_Opening stock_
**1421**
_Bar purchases_
**11279**
_Closing stock_
**-1747**
_Cost of Sales_
**10953**
_Gross margin_
_Bar_
_Expenditure_
_Salaries_
**3841**
_Utilities_
**645**
_Cleaning_
**291**|**2025/2026**
2024/20
25
2023/20
24
**Unrestrict**
**ed Funds**
**Restrict**
**ed**
**Funds**
**TOTAL**
**7973**
**7973**
13500
**500**
**500**
7600
**3185**
**3185**
0
**26**
**26**
74
30
**4270**
**4270**
20399
**730**
**730**
460
570
**31989**
**31989**
34393
24441
**180**
**180**
0
**470**
**470**
0
**1024**
**1024**
-6306
**39189**
**11158**
**50347**
70120
25041
19603
1332
15647
-1421
15558
**5976**
4045
7310
1858
433| |---|---| _TV licence_ **175** |_TV licence_
**175**
**4951**
Contribution/
loss
**EXPENDITURE**
General Expenditure_(see below)_
Trustee Renumeration
Employees
Trade creditors within 1 year|**175**|164
586
10351
**1024**
-6306
5
**62367**
47042
49732
6
7
**1**
3
3
9
**1473**
4032
**9**| |---|---|---| ||**4951**|| |**General Expenditure Analysis**
Salaries
Utilities
Waste Collection/Cleaning
Ofce costs
Insuran
ce
Misc
Torch Flames
Events
Legal
Fees
Consultancy fees
Restricted grant usage
Repairs & maintenance
Property Depreciation
10
**Depreciation**
at 1st April 2025
charge for year
at 31st March 2026
**Net Book Value**
31st March 2026|**2025/2**
**6**
2024/25
2023/24
**Unrestrict**
**ed Funds**
**Restrict**
**ed**
**Funds**
**TOTAL**
**0**
**0**
10205
20758
**12254**
**12254**
10534
7566
**5526**
**5526**
2456
187
**4288**
**4288**
3298
1077
**1774**
**1774**
1476
-1723
**1502**
**1502**
2954
1472
**428**
**428**
**375**
**375**
**3083**
**3083**
**6288**
**6288**
1714
**10402**
**10402**
12682
13405
**5589**
**5589**
4137
6990
**10858**
**10858**
12065
-1708
-89
**51965**
**10402**
**62367**
59724
49732
-1202
0
10396
-24691
108584
10858
**97726**
97726| |---|---| 31 st March 2025 108584 10