Hetton Town Trust
Chairmans Report 2022/2023
The financial year continued to be affected by post covid effects that resulted in a decrease in bookings of Meeting Rooms and Function Room. This also impacted on the Bar that relies on Functions to support sales. The latter quarter of the financial year showed a marked improvement over previous period in all areas.
The Café has seen an increase in sales over the year and this has required an increase in staff to meet demand. The introduction of the Family Hub by Sunderland City Council provides first class provision of activities for families in the wider area. It has also had a positive and welcome effect on Café footfall and sales. The Café has also seen regular users return and increase in numbers following the post covid reopening. An excellent and changing menu has no doubt encouraged these improvements.
The Nursery continues to be well supported and is an excellent provision for working parents and their children from 6 months to 5 years old.
Football.
SAFC continue to rent the ground. The Club have provided improvements to meet FA requirements. The Trust does not benefit from ticket sales but does benefit from Café sales to spectators. The relationship with SAFC has been beneficial to both parties.
CISWO
The Coal Industry Social Welfare Organisation have been supportive to The Trust and offer guidance and support where appropriate.
Employees and Managers
Our excellent Café and Bar staff and management are the mainstay of the business of The Trust. They never fail to rise to the occasion and deserve praise for their hard work.
Trustees
The Trust has seen many changes over the years, and I believe that the present board of trustees represents a diverse range of abilities and experience. We will continue to maintain the quality of Trustees where vacancies arise. Thanks are due to The Vice Chair, Secretary, Treasurer and Facilities Manager for their diligence and input.
Going Forward
There is much to be positive about. The Trust has ridden out some storms over the years but with careful management Hetton Town Trust remains a successful and viable asset to Hetton le Hole and the wider area. There will always be challenges to meet but with strong Trustee support these will be addressed and managed.
Alex Scullion
Chairman
Hetton Town Trust
Charity registration number 520822
HETTON TOWN TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
HETTON TOWN TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | W A Scullion | |
|---|---|---|
| J Price | ||
| I Scott | ||
| R Heron | ||
| B Malekpour | ||
| Cllr J Blackburn | ||
| Cllr K Pearson | ||
| A Wilkinson | ||
| D Gardner | ||
| T Dodds | ||
| C Bell | ||
| J Thompson | ||
| D Anderson | (Appointed 1 July 2023) | |
| R Hodgson | (Appointed 1 April 2023) | |
| Charity number | 520822 | |
| Principal address | The Hetton Centre | |
| Welfare Road | ||
| Hetton-Le-Hole | ||
| Tyne And Wear | ||
| United Kingdom | ||
| DH5 9NE | ||
| Independent examiner | Kathyrn Morris FCCA | |
| Azets Audit Services | ||
| Bede House | ||
| 3 Belmont Business Park | ||
| Durham | ||
| United Kingdom | ||
| Solicitors | Mitchell Dodds | |
| 208 Park View | ||
| Whitley Bay | ||
| Tyne And Wear | ||
| United Kingdom | ||
| NE26 3QS |
HETTON TOWN TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 - 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 21 |
HETTON TOWN TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The object of the Charity is defined as the provision of a recreational, social and educational centre for the benefit of the inhabitants of the area, and particular those members of the mining community. It achieves these objects through the provision of:
-
A nursery for young children;
-
A café which provided snacks and meals from 8am to 3pm;
-
A function room with bar and two meeting rooms which can be used by local individuals or groups in the pursuance of business or pleasure;
-
A full size snooker table; and,
-
A top class football facility for teams to play regular fixtures.
Public benefit
The charity provides a recreational, social and educational centre. This provides a benefit to the inhabitants of the local community, and is managed by members of the local community. The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
The financial year continued to be affected by post covid effects that resulted in a decrease in bookings of Meeting Rooms and Function Room. This also impacted on the Bar that relies on Functions to support sales. The latter quarter of the financial year showed a marked improvement over previous period in all areas.
The Café has seen an increase in sales over the year and this has required an increase in staff to meet demand. The introduction of the Family Hub by Sunderland City Council provides first class provision of activities for families in the wider area. It has also had a positive and welcome effect on Café footfall and sales. The Café has also seen regular users return and increase in numbers following the post covid reopening. An excellent and changing menu has no doubt encouraged these improvements.
The Nursery continues to be well supported and is an excellent provision for working parents and their children from 6 months to 5 years old.
Football
SAFC continue to rent the ground. The Club have provided improvements to meet FA requirements. The Trust does not benefit from ticket sales but does benefit from Café sales to spectators. The relationship with SAFC has been beneficial to both parties.
CISWO
The Coal Industry Social Welfare Organisation have been supportive to The Trust and offer guidance and support where appropriate.
Employees and Managers
Our excellent Café and Bar staff and management are the mainstay of the business of The Trust. They never fail to rise to the occasion and deserve praise for their hard work.
- 1 -
HETTON TOWN TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Financial review
The notes to the accounts disclose the assets and liabilities of he organisation attributable to the various funds by type.
Unrestricted funds amount to £34.3k (2022: £42.4k) virtually all of which is freely available.
The trustees have determined that the appropriate level of free reserves which are not invested in tangible fixed assets should be equivalent to four months expenditure, approximately £57k. Free reserves at the year end were less than this amount, but the Trustees are cognisant of the future requirement to re-invest in the fabric of the facility and its equipment to satisfy the needs and requirements of our users. This will involve the utilisation of annual accumulated surpluses.
Our aim is to sustain Reserves by means of annual operating surpluses and judicious management of our resources.
It is the normal policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. However, as at 31 March 2023 the criteria was not met. General unrestricted funds only amounted to a deficit of £4.3k (2022 surplus £3.7k) and required level of funds to meet three to six months expenditure would be between £22.6k to £45.1k, as such there is insufficient general unrestricted funds. The trustees consider that the general unrestricted activities have the continued support from the Designated funds in the event of a significant drop in funding and any shortfall in general unrestricted funds would be met.
Risk management
The trustees have a duty to identify and review risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees are responsible for the management of the risks faced by the Organisation. Detailed considerations of risk are reviewed by the Board on an ongoing basis at the monthly management meetings. Risks are identified, assessed and controls established throughout the year.
The key controls used by the charity include;
-
Formal agendas for all Committee and Board activity;
-
Detailed terms of reference for all committees;
-
Comprehensive strategic planning, budgeting and management accounting;
-
Established organisational structure and lines of reporting;
-
Formal written policies;
-
Clear authorisation and approval levels.
Through the risk management processes established for the organisation, the Board are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable assurance that major risks have been adequately managed.
Going Forward
There is much to be positive about. The Trust has ridden out some storms over the years but with careful management Hetton Town Trust remains a successful and viable asset to Hetton le Hole and the wider area. There will always be challenges to meet but with strong Trustee support these will be addressed and managed.
Structure, governance and management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. Hetton Town Trust replaced the organisation formerly know as Eppleton Colliery Welfare when it ceased trading on 18th March 2003.
The Trust Deed governing Hetton Town Trust was updated in May 2004.
The trustees who served during the year and up to the date of signature of the financial statements were:
- 2 -
HETTON TOWN TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
W A Scullion J Price I Scott R Heron B Malekpour Cllr J Blackburn Cllr K Pearson A Wilkinson D Gardner Cllr K Rowham (Resigned 1 May 2022) T Dodds C Bell J Thompson Cllr D Thomas (Appointed 1 May 2022 and resigned 30 September 2023) D Anderson (Appointed 1 July 2023) R Hodgson (Appointed 1 April 2023)
Recruitment and appointment of new trustees
Procedures for the appointment and election of new trustees are set out in the trust deed.
Trustees
The Trust has seen many changes over the years, and I believe that the present board of trustees represents a diverse range of abilities and experience. We will continue to maintain the quality of Trustees where vacancies arise. Thanks are due to The Vice Chair, Secretary, Treasurer and Facilities Manager for their diligence and input.
Organisational structure
The organisation will be governed by a maximum of 14 nominated trustees, together wit 2 co-opted trustees where applicable.
The trustees' report was approved by the Board of Trustees.
W A Scullion Trustee Dated: 25 January 2024
- 3 -
HETTON TOWN TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HETTON TOWN TRUST
I report to the trustees on my examination of the financial statements of Hetton Town Trust (the charity) for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
-
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Kathryn Morris FCCA
Azets Audit Services
Bede House Belmont Business Park DURHAM DH1 1TW United Kingdom
Dated: 25 January 2024
- 4 -
HETTON TOWN TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2023 2023 Notes £ £ £ Income from: Donations and legacies 2 661 - - Charitable activities 3 76,275 87,552 - Investments 4 143 - - Total income 77,079 87,552 - Expenditure on: Charitable activities Facilities 5 90,243 - - Cafe 5 - 82,402 - Bar 5 45 - - Community fund 5 - - 35 Total charitable expenditure 90,288 82,402 35 Net outgoing resources before transfers (13,209) 5,150 (35) |
Total Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2022 2022 2022 £ £ £ £ 661 20,700 - - 163,827 55,269 25,264 - 143 40 - - 164,631 76,009 25,264 - 90,243 76,488 - - 82,402 - 31,678 - 45 53 - - 35 - - 41 172,725 76,541 31,678 41 (8,094) (532) (6,414) (41) |
Total 2022 £ 20,700 80,533 40 101,273 76,488 31,678 53 41 108,260 (6,987) |
|---|---|---|
- 5 -
HETTON TOWN TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2023 2023 Notes £ £ £ Net outgoing resources before transfers (13,209) 5,150 (35) Gross transfers between funds 5,150 (5,150) - Net expenditure for the year/ Net movement in funds (8,059) - (35) Fund balances at 1 April 2022 42,387 - 234 Fund balances at 31 March 2023 34,328 - 199 |
Total Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2022 2022 2022 £ £ £ £ (8,094) (532) (6,414) (41) - (6,414) 6,414 - (8,094) (6,946) - (41) 42,621 49,333 - 275 34,527 42,387 - 234 |
Total 2022 £ (6,987) - (6,987) 49,608 42,621 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 6 -
HETTON TOWN TRUST
BALANCE SHEET
AS AT 31 MARCH 2023
| 2023 Notes £ Fixed assets Tangible assets 10 Investments 11 Current assets Stocks 12 800 Debtors 13 37,857 Cash at bank and in hand 52,234 90,891 Creditors: amounts falling due within one year 14 (68,258) Net current assets Total assets less current liabilities Income funds Restricted funds 15 Designated funds - Bar 16 38,604 General unrestricted funds (4,276) |
2022 £ £ 11,892 2 11,894 1,000 33,546 50,166 84,712 (53,850) 22,633 34,527 199 38,649 3,738 34,328 34,527 |
£ 11,757 2 |
|---|---|---|
| 11,759 30,862 |
||
| 42,621 | ||
| 234 42,387 |
||
| 42,621 |
The financial statements were approved by the Trustees on 25 January 2024
W A Scullion T Dodds Trustee Trustee
- 7 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
Hetton Town Trust is a public benefit entity under FRS 102.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Income from Government and other grants whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. In respect of furlough grants; all conditions, with respect to the eligible costs being claimed, need to be met.
- 8 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 9 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
1.11 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
- 10 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
2 Donations and legacies
| Unrestricted funds general 2023 £ Donations and gifts 661 Government grants receivable - 661 Grants receivable for core activities Other - - |
Total 2022 £ - 20,700 |
|---|---|
| 20,700 | |
| 20,700 | |
| 20,700 |
- 11 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
3 Charitable activities
| Sales within charitable activities Facilities hire Refreshments Hetton Centre Trading Limited facilities recharge Charitable rental income Room hire Analysis by fund Unrestricted funds - General Unrestricted funds - Cafe For the year ended 31 March 2022 Unrestricted funds - general Unrestricted funds - Cafe |
Facilities 2023 £ - 21,600 - 18,018 4,752 31,905 76,275 76,275 - 76,275 55,269 - 55,269 |
Cafe 2023 £ 87,552 - - - - - 87,552 - 87,552 87,552 - 25,264 25,264 |
Total 2023 £ 87,552 21,600 - 18,018 4,752 31,905 163,827 76,275 87,552 163,827 |
Facilities 2022 £ - 17,956 625 11,184 6,511 18,993 55,269 55,269 - 55,269 |
Cafe 2022 £ 25,264 - - - - - 25,264 - 25,264 25,264 |
Total 2022 £ 25,264 17,956 625 11,184 6,511 18,993 |
|---|---|---|---|---|---|---|
| 80,533 | ||||||
| 55,269 25,264 |
||||||
| 80,533 | ||||||
| 55,269 25,264 |
||||||
| 80,533 |
- 12 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Interest receivable | 143 | 40 |
- 13 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
5 Charitable activities
| Facilities 2023 £ Staff costs 46,980 Depreciation and impairment 825 Consumables - Light & heat 12,083 Postage, stationery & telephone 4,153 Repairs, renewals & cleaning 4,556 Ground maintenance 32 Rates & water 10,042 Insurance 3,856 Licences 96 Travelling 579 Sundries 1,219 Advertising - 84,421 Share of support costs (see note 6) 4,072 Share of governance costs (see note 6) 1,750 90,243 Analysis by fund Unrestricted funds - general 90,243 Unrestricted funds - Cafe - Restricted funds - 90,243 |
Cafe 2023 £ 38,500 769 39,400 - - 901 - - - - - 32 - 79,602 1,050 1,750 82,402 - 82,402 - 82,402 |
Bar Community fund 2023 2023 £ £ - - 45 35 - - - - - - - - - - - - - - - - - - - - - - 45 35 - - - - 45 35 45 - - - - 35 45 35 |
Total 2023 £ 85,480 1,674 39,400 12,083 4,153 5,457 32 10,042 3,856 96 579 1,251 - 164,103 5,122 3,500 172,725 90,288 82,402 35 172,725 |
Total 2022 £ 51,967 2,575 16,132 13,044 1,074 13,041 1,320 (4,258) 5,256 119 255 287 870 101,682 3,378 3,200 108,260 76,541 31,678 41 108,260 |
|---|---|---|---|---|
- 14 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5 Charitable activities (Continued) For the year ended 31 March 2022
| Facilities £ Staff costs 42,944 Depreciation and impairment 970 Consumables - Light & heat 13,044 Postage, stationery & telephone 1,074 Repairs, renewals & cleaning 11,996 Ground maintenance 1,320 Rates & water (4,258) Insurance 5,044 Licences 119 Travelling 255 Sundries 5 Advertising - 72,513 Share of support costs (see note 6) 2,375 Share of governance costs (see note 6) 1,600 76,488 Analysis by fund Unrestricted funds - general 76,488 Unrestricted funds - Cafe - Restricted funds - 76,488 |
Cafe £ 9,023 1,511 16,132 - - 1,045 - - 212 - - 282 870 29,075 1,003 1,600 31,678 - 31,678 - 31,678 |
Bar Community fund £ £ - - 53 41 - - - - - - - - - - - - - - - - - - - - - - 53 41 - - - - 53 41 53 - - - - 41 53 41 |
Total 2022 £ 51,967 2,575 16,132 13,044 1,074 13,041 1,320 (4,258) 5,256 119 255 287 870 101,682 3,378 3,200 108,260 76,541 31,678 41 108,260 |
|---|---|---|---|
- 15 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Professional fees 2,003 - Business consultancy 2,359 - Bank charges 760 - Independent examiners fee - 3,500 5,122 3,500 Analysed between Charitable activities 5,122 3,500 |
2023 Support costs Governance costs £ £ £ 2,003 583 - 2,359 2,354 - 760 441 - 3,500 - 3,200 8,622 3,378 3,200 8,622 3,378 3,200 |
2022 £ 583 2,354 441 3,200 |
| 6,578 | ||
| 6,578 |
7 Trustees
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
Trustees' expenses
Trustees were given allowance for lunches while working at the Hetton Centre totalling £Nil (2022 : £Nil)
- 16 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
8 Employees
Number of employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Cafe staff | 6 | 7 |
| Facilities manager | 1 | 1 |
| Cleaners | 1 | 1 |
| 8 | 9 | |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 84,212 | 51,127 |
| Other pension costs | 1,268 | 840 |
| 85,480 | 51,967 |
There were no employees whose annual remuneration was £60,000 or more.
9 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
10 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Fixtures and fittings | |
| £ | |
| Cost | |
| At 1 April 2022 | 41,997 |
| Additions | 1,809 |
| At 31 March 2023 | 43,806 |
| Depreciation and impairment | |
| At 1 April 2022 | 30,240 |
| Depreciation charged in the year | 1,674 |
| At 31 March 2023 | 31,914 |
| Carrying amount | |
| At 31 March 2023 | 11,892 |
| At 31 March 2022 | 11,757 |
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HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
10 Tangible fixed assets
(Continued)
Within fixed assets 2.3945 hectares of land remains vested with the Official Custodian for Charities in trust for the Charity. A snooker table originating from Eppleton CW, and written down to £nil net book value, is used by the Charity, but not reflected in the above table.
11 Fixed asset investments
| Shares in group | |
|---|---|
| undertakings | |
| £ | |
| Cost or valuation | |
| At 1 April 2022 & 31 March 2023 | 2 |
| Carrying amount | |
| At 31 March 2023 | 2 |
| At 31 March 2022 | 2 |
12 Stocks
| 12 Stocks |
||
|---|---|---|
| Finished goods and goods for resale 13 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Prepayments and accrued income |
2023 £ 800 2023 £ 16,118 17,606 4,133 37,857 |
2022 £ 1,000 |
| 2022 £ 7,015 22,291 4,240 |
||
| 33,546 |
- 18 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
14 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2023 £ 9,083 330 - 58,845 68,258 |
2022 £ 6,978 700 197 45,975 |
| 53,850 |
15 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Balance at | Resources | Balance at | Resources | Balance at | |||
|---|---|---|---|---|---|---|---|
| 1 | April 2021 | expended | 1 April 2022 | expended | 31 | March 2023 | |
| £ | £ | £ | £ | £ | |||
| Community Fund | 275 | (41) | 234 | (35) | 199 |
16 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement in funds | Movement in funds | ||||
|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Transfers | Balance at | |
| 1 April 2022 | resources | expended | 31 March 2023 | ||
| £ | £ | £ | £ | £ | |
| Bar facility | 38,649 | - | (45) | - | 38,604 |
| Cafe Trading | - | 87,551 | (82,402) | (5,149) | - |
| 38,649 | 87,551 | (82,447) | (5,149) | 38,604 |
- 19 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 17 Analysis of net assets between funds Unrestricted funds Designated funds Restricted funds 2023 2023 2023 £ £ £ Fund balances at 31 March 2023 are represented by: Tangible assets 8,196 3,497 199 Investments 2 - - Current assets/(liabilities) 26,130 (3,497) - 34,328 - 199 |
Total Unrestricted funds Designated funds Restricted funds 2023 2022 2022 2022 £ £ £ £ 11,892 7,212 4,311 234 2 2 - - 22,633 35,173 (4,311) - 34,527 42,387 - 234 |
Total 2022 £ 11,757 2 30,862 |
|---|---|---|
| 42,621 |
- 20 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18 Related party transactions
Hetton Centre Trading Limited (HCT) is a wholly owned trading subsidiary of the charity. HCT trades from the charity's premises. During the year HCT was charged £18,333 (2022: £10,129) for management, insurance and utilities costs. There were no Gift Aid payments receivable from HCT for the year (2022: £nil). At the year end HCT owed the charity £17,606 (2022: £22,291).
19 Subsidiaries
The Charity owns 100% of its Subsidiary Company, Hetton Centre Trading Limited Company No 6548566 incorporated in England and Wales.
- 21 -
Charity registration number 520822
HETTON TOWN TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
HETTON TOWN TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | W A Scullion | |
|---|---|---|
| J Price | ||
| I Scott | ||
| R Heron | ||
| B Malekpour | ||
| Cllr J Blackburn | ||
| Cllr K Pearson | ||
| A Wilkinson | ||
| D Gardner | ||
| T Dodds | ||
| C Bell | ||
| J Thompson | ||
| D Anderson | (Appointed 1 July 2023) | |
| R Hodgson | (Appointed 1 April 2023) | |
| Charity number | 520822 | |
| Principal address | The Hetton Centre | |
| Welfare Road | ||
| Hetton-Le-Hole | ||
| Tyne And Wear | ||
| United Kingdom | ||
| DH5 9NE | ||
| Independent examiner | Kathyrn Morris FCCA | |
| Azets Audit Services | ||
| Bede House | ||
| 3 Belmont Business Park | ||
| Durham | ||
| United Kingdom | ||
| Solicitors | Mitchell Dodds | |
| 208 Park View | ||
| Whitley Bay | ||
| Tyne And Wear | ||
| United Kingdom | ||
| NE26 3QS |
HETTON TOWN TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 - 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 21 |
HETTON TOWN TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The object of the Charity is defined as the provision of a recreational, social and educational centre for the benefit of the inhabitants of the area, and particular those members of the mining community. It achieves these objects through the provision of:
-
A nursery for young children;
-
A café which provided snacks and meals from 8am to 3pm;
-
A function room with bar and two meeting rooms which can be used by local individuals or groups in the pursuance of business or pleasure;
-
A full size snooker table; and,
-
A top class football facility for teams to play regular fixtures.
Public benefit
The charity provides a recreational, social and educational centre. This provides a benefit to the inhabitants of the local community, and is managed by members of the local community. The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
The financial year continued to be affected by post covid effects that resulted in a decrease in bookings of Meeting Rooms and Function Room. This also impacted on the Bar that relies on Functions to support sales. The latter quarter of the financial year showed a marked improvement over previous period in all areas.
The Café has seen an increase in sales over the year and this has required an increase in staff to meet demand. The introduction of the Family Hub by Sunderland City Council provides first class provision of activities for families in the wider area. It has also had a positive and welcome effect on Café footfall and sales. The Café has also seen regular users return and increase in numbers following the post covid reopening. An excellent and changing menu has no doubt encouraged these improvements.
The Nursery continues to be well supported and is an excellent provision for working parents and their children from 6 months to 5 years old.
Football
SAFC continue to rent the ground. The Club have provided improvements to meet FA requirements. The Trust does not benefit from ticket sales but does benefit from Café sales to spectators. The relationship with SAFC has been beneficial to both parties.
CISWO
The Coal Industry Social Welfare Organisation have been supportive to The Trust and offer guidance and support where appropriate.
Employees and Managers
Our excellent Café and Bar staff and management are the mainstay of the business of The Trust. They never fail to rise to the occasion and deserve praise for their hard work.
- 1 -
HETTON TOWN TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Financial review
The notes to the accounts disclose the assets and liabilities of he organisation attributable to the various funds by type.
Unrestricted funds amount to £34.3k (2022: £42.4k) virtually all of which is freely available.
The trustees have determined that the appropriate level of free reserves which are not invested in tangible fixed assets should be equivalent to four months expenditure, approximately £57k. Free reserves at the year end were less than this amount, but the Trustees are cognisant of the future requirement to re-invest in the fabric of the facility and its equipment to satisfy the needs and requirements of our users. This will involve the utilisation of annual accumulated surpluses.
Our aim is to sustain Reserves by means of annual operating surpluses and judicious management of our resources.
It is the normal policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. However, as at 31 March 2023 the criteria was not met. General unrestricted funds only amounted to a deficit of £4.3k (2022 surplus £3.7k) and required level of funds to meet three to six months expenditure would be between £22.6k to £45.1k, as such there is insufficient general unrestricted funds. The trustees consider that the general unrestricted activities have the continued support from the Designated funds in the event of a significant drop in funding and any shortfall in general unrestricted funds would be met.
Risk management
The trustees have a duty to identify and review risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees are responsible for the management of the risks faced by the Organisation. Detailed considerations of risk are reviewed by the Board on an ongoing basis at the monthly management meetings. Risks are identified, assessed and controls established throughout the year.
The key controls used by the charity include;
-
Formal agendas for all Committee and Board activity;
-
Detailed terms of reference for all committees;
-
Comprehensive strategic planning, budgeting and management accounting;
-
Established organisational structure and lines of reporting;
-
Formal written policies;
-
Clear authorisation and approval levels.
Through the risk management processes established for the organisation, the Board are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable assurance that major risks have been adequately managed.
Going Forward
There is much to be positive about. The Trust has ridden out some storms over the years but with careful management Hetton Town Trust remains a successful and viable asset to Hetton le Hole and the wider area. There will always be challenges to meet but with strong Trustee support these will be addressed and managed.
Structure, governance and management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. Hetton Town Trust replaced the organisation formerly know as Eppleton Colliery Welfare when it ceased trading on 18th March 2003.
The Trust Deed governing Hetton Town Trust was updated in May 2004.
The trustees who served during the year and up to the date of signature of the financial statements were:
- 2 -
HETTON TOWN TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
W A Scullion J Price I Scott R Heron B Malekpour Cllr J Blackburn Cllr K Pearson A Wilkinson D Gardner Cllr K Rowham (Resigned 1 May 2022) T Dodds C Bell J Thompson Cllr D Thomas (Appointed 1 May 2022 and resigned 30 September 2023) D Anderson (Appointed 1 July 2023) R Hodgson (Appointed 1 April 2023)
Recruitment and appointment of new trustees
Procedures for the appointment and election of new trustees are set out in the trust deed.
Trustees
The Trust has seen many changes over the years, and I believe that the present board of trustees represents a diverse range of abilities and experience. We will continue to maintain the quality of Trustees where vacancies arise. Thanks are due to The Vice Chair, Secretary, Treasurer and Facilities Manager for their diligence and input.
Organisational structure
The organisation will be governed by a maximum of 14 nominated trustees, together wit 2 co-opted trustees where applicable.
The trustees' report was approved by the Board of Trustees.
W A Scullion Trustee Dated: 25 January 2024
- 3 -
HETTON TOWN TRUST
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HETTON TOWN TRUST
I report to the trustees on my examination of the financial statements of Hetton Town Trust (the charity) for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
-
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Kathryn Morris FCCA
Azets Audit Services
Bede House Belmont Business Park DURHAM DH1 1TW United Kingdom
Dated: 25 January 2024
- 4 -
HETTON TOWN TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2023 2023 Notes £ £ £ Income from: Donations and legacies 2 661 - - Charitable activities 3 76,275 87,552 - Investments 4 143 - - Total income 77,079 87,552 - Expenditure on: Charitable activities Facilities 5 90,243 - - Cafe 5 - 82,402 - Bar 5 45 - - Community fund 5 - - 35 Total charitable expenditure 90,288 82,402 35 Net outgoing resources before transfers (13,209) 5,150 (35) |
Total Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2022 2022 2022 £ £ £ £ 661 20,700 - - 163,827 55,269 25,264 - 143 40 - - 164,631 76,009 25,264 - 90,243 76,488 - - 82,402 - 31,678 - 45 53 - - 35 - - 41 172,725 76,541 31,678 41 (8,094) (532) (6,414) (41) |
Total 2022 £ 20,700 80,533 40 101,273 76,488 31,678 53 41 108,260 (6,987) |
|---|---|---|
- 5 -
HETTON TOWN TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2023 2023 Notes £ £ £ Net outgoing resources before transfers (13,209) 5,150 (35) Gross transfers between funds 5,150 (5,150) - Net expenditure for the year/ Net movement in funds (8,059) - (35) Fund balances at 1 April 2022 42,387 - 234 Fund balances at 31 March 2023 34,328 - 199 |
Total Unrestricted Unrestricted Restricted funds funds funds general Cafe 2023 2022 2022 2022 £ £ £ £ (8,094) (532) (6,414) (41) - (6,414) 6,414 - (8,094) (6,946) - (41) 42,621 49,333 - 275 34,527 42,387 - 234 |
Total 2022 £ (6,987) - (6,987) 49,608 42,621 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 6 -
HETTON TOWN TRUST
BALANCE SHEET
AS AT 31 MARCH 2023
| 2023 Notes £ Fixed assets Tangible assets 10 Investments 11 Current assets Stocks 12 800 Debtors 13 37,857 Cash at bank and in hand 52,234 90,891 Creditors: amounts falling due within one year 14 (68,258) Net current assets Total assets less current liabilities Income funds Restricted funds 15 Designated funds - Bar 16 38,604 General unrestricted funds (4,276) |
2022 £ £ 11,892 2 11,894 1,000 33,546 50,166 84,712 (53,850) 22,633 34,527 199 38,649 3,738 34,328 34,527 |
£ 11,757 2 |
|---|---|---|
| 11,759 30,862 |
||
| 42,621 | ||
| 234 42,387 |
||
| 42,621 |
The financial statements were approved by the Trustees on 25 January 2024
W A Scullion T Dodds Trustee Trustee
- 7 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
Hetton Town Trust is a public benefit entity under FRS 102.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Income from Government and other grants whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. In respect of furlough grants; all conditions, with respect to the eligible costs being claimed, need to be met.
- 8 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 9 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
1.11 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
- 10 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
2 Donations and legacies
| Unrestricted funds general 2023 £ Donations and gifts 661 Government grants receivable - 661 Grants receivable for core activities Other - - |
Total 2022 £ - 20,700 |
|---|---|
| 20,700 | |
| 20,700 | |
| 20,700 |
- 11 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
3 Charitable activities
| Sales within charitable activities Facilities hire Refreshments Hetton Centre Trading Limited facilities recharge Charitable rental income Room hire Analysis by fund Unrestricted funds - General Unrestricted funds - Cafe For the year ended 31 March 2022 Unrestricted funds - general Unrestricted funds - Cafe |
Facilities 2023 £ - 21,600 - 18,018 4,752 31,905 76,275 76,275 - 76,275 55,269 - 55,269 |
Cafe 2023 £ 87,552 - - - - - 87,552 - 87,552 87,552 - 25,264 25,264 |
Total 2023 £ 87,552 21,600 - 18,018 4,752 31,905 163,827 76,275 87,552 163,827 |
Facilities 2022 £ - 17,956 625 11,184 6,511 18,993 55,269 55,269 - 55,269 |
Cafe 2022 £ 25,264 - - - - - 25,264 - 25,264 25,264 |
Total 2022 £ 25,264 17,956 625 11,184 6,511 18,993 |
|---|---|---|---|---|---|---|
| 80,533 | ||||||
| 55,269 25,264 |
||||||
| 80,533 | ||||||
| 55,269 25,264 |
||||||
| 80,533 |
- 12 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Interest receivable | 143 | 40 |
- 13 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
5 Charitable activities
| Facilities 2023 £ Staff costs 46,980 Depreciation and impairment 825 Consumables - Light & heat 12,083 Postage, stationery & telephone 4,153 Repairs, renewals & cleaning 4,556 Ground maintenance 32 Rates & water 10,042 Insurance 3,856 Licences 96 Travelling 579 Sundries 1,219 Advertising - 84,421 Share of support costs (see note 6) 4,072 Share of governance costs (see note 6) 1,750 90,243 Analysis by fund Unrestricted funds - general 90,243 Unrestricted funds - Cafe - Restricted funds - 90,243 |
Cafe 2023 £ 38,500 769 39,400 - - 901 - - - - - 32 - 79,602 1,050 1,750 82,402 - 82,402 - 82,402 |
Bar Community fund 2023 2023 £ £ - - 45 35 - - - - - - - - - - - - - - - - - - - - - - 45 35 - - - - 45 35 45 - - - - 35 45 35 |
Total 2023 £ 85,480 1,674 39,400 12,083 4,153 5,457 32 10,042 3,856 96 579 1,251 - 164,103 5,122 3,500 172,725 90,288 82,402 35 172,725 |
Total 2022 £ 51,967 2,575 16,132 13,044 1,074 13,041 1,320 (4,258) 5,256 119 255 287 870 101,682 3,378 3,200 108,260 76,541 31,678 41 108,260 |
|---|---|---|---|---|
- 14 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5 Charitable activities (Continued) For the year ended 31 March 2022
| Facilities £ Staff costs 42,944 Depreciation and impairment 970 Consumables - Light & heat 13,044 Postage, stationery & telephone 1,074 Repairs, renewals & cleaning 11,996 Ground maintenance 1,320 Rates & water (4,258) Insurance 5,044 Licences 119 Travelling 255 Sundries 5 Advertising - 72,513 Share of support costs (see note 6) 2,375 Share of governance costs (see note 6) 1,600 76,488 Analysis by fund Unrestricted funds - general 76,488 Unrestricted funds - Cafe - Restricted funds - 76,488 |
Cafe £ 9,023 1,511 16,132 - - 1,045 - - 212 - - 282 870 29,075 1,003 1,600 31,678 - 31,678 - 31,678 |
Bar Community fund £ £ - - 53 41 - - - - - - - - - - - - - - - - - - - - - - 53 41 - - - - 53 41 53 - - - - 41 53 41 |
Total 2022 £ 51,967 2,575 16,132 13,044 1,074 13,041 1,320 (4,258) 5,256 119 255 287 870 101,682 3,378 3,200 108,260 76,541 31,678 41 108,260 |
|---|---|---|---|
- 15 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Professional fees 2,003 - Business consultancy 2,359 - Bank charges 760 - Independent examiners fee - 3,500 5,122 3,500 Analysed between Charitable activities 5,122 3,500 |
2023 Support costs Governance costs £ £ £ 2,003 583 - 2,359 2,354 - 760 441 - 3,500 - 3,200 8,622 3,378 3,200 8,622 3,378 3,200 |
2022 £ 583 2,354 441 3,200 |
| 6,578 | ||
| 6,578 |
7 Trustees
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
Trustees' expenses
Trustees were given allowance for lunches while working at the Hetton Centre totalling £Nil (2022 : £Nil)
- 16 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
8 Employees
Number of employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Cafe staff | 6 | 7 |
| Facilities manager | 1 | 1 |
| Cleaners | 1 | 1 |
| 8 | 9 | |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 84,212 | 51,127 |
| Other pension costs | 1,268 | 840 |
| 85,480 | 51,967 |
There were no employees whose annual remuneration was £60,000 or more.
9 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
10 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Fixtures and fittings | |
| £ | |
| Cost | |
| At 1 April 2022 | 41,997 |
| Additions | 1,809 |
| At 31 March 2023 | 43,806 |
| Depreciation and impairment | |
| At 1 April 2022 | 30,240 |
| Depreciation charged in the year | 1,674 |
| At 31 March 2023 | 31,914 |
| Carrying amount | |
| At 31 March 2023 | 11,892 |
| At 31 March 2022 | 11,757 |
- 17 -
HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
10 Tangible fixed assets
(Continued)
Within fixed assets 2.3945 hectares of land remains vested with the Official Custodian for Charities in trust for the Charity. A snooker table originating from Eppleton CW, and written down to £nil net book value, is used by the Charity, but not reflected in the above table.
11 Fixed asset investments
| Shares in group | |
|---|---|
| undertakings | |
| £ | |
| Cost or valuation | |
| At 1 April 2022 & 31 March 2023 | 2 |
| Carrying amount | |
| At 31 March 2023 | 2 |
| At 31 March 2022 | 2 |
12 Stocks
| 12 Stocks |
||
|---|---|---|
| Finished goods and goods for resale 13 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Prepayments and accrued income |
2023 £ 800 2023 £ 16,118 17,606 4,133 37,857 |
2022 £ 1,000 |
| 2022 £ 7,015 22,291 4,240 |
||
| 33,546 |
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HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
14 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2023 £ 9,083 330 - 58,845 68,258 |
2022 £ 6,978 700 197 45,975 |
| 53,850 |
15 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Balance at | Resources | Balance at | Resources | Balance at | |||
|---|---|---|---|---|---|---|---|
| 1 | April 2021 | expended | 1 April 2022 | expended | 31 | March 2023 | |
| £ | £ | £ | £ | £ | |||
| Community Fund | 275 | (41) | 234 | (35) | 199 |
16 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement in funds | Movement in funds | ||||
|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Transfers | Balance at | |
| 1 April 2022 | resources | expended | 31 March 2023 | ||
| £ | £ | £ | £ | £ | |
| Bar facility | 38,649 | - | (45) | - | 38,604 |
| Cafe Trading | - | 87,551 | (82,402) | (5,149) | - |
| 38,649 | 87,551 | (82,447) | (5,149) | 38,604 |
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HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 17 Analysis of net assets between funds Unrestricted funds Designated funds Restricted funds 2023 2023 2023 £ £ £ Fund balances at 31 March 2023 are represented by: Tangible assets 8,196 3,497 199 Investments 2 - - Current assets/(liabilities) 26,130 (3,497) - 34,328 - 199 |
Total Unrestricted funds Designated funds Restricted funds 2023 2022 2022 2022 £ £ £ £ 11,892 7,212 4,311 234 2 2 - - 22,633 35,173 (4,311) - 34,527 42,387 - 234 |
Total 2022 £ 11,757 2 30,862 |
|---|---|---|
| 42,621 |
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HETTON TOWN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18 Related party transactions
Hetton Centre Trading Limited (HCT) is a wholly owned trading subsidiary of the charity. HCT trades from the charity's premises. During the year HCT was charged £18,333 (2022: £10,129) for management, insurance and utilities costs. There were no Gift Aid payments receivable from HCT for the year (2022: £nil). At the year end HCT owed the charity £17,606 (2022: £22,291).
19 Subsidiaries
The Charity owns 100% of its Subsidiary Company, Hetton Centre Trading Limited Company No 6548566 incorporated in England and Wales.
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