## **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|
- 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|
- 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|
- 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 -