THE NEW MECHANICS LIMITED (A COMPANY LIMITED BY GUARANTEE) (THE NOThINGHAM MECHANICS) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 COMPANY REGISTERED NUMBER 00929885 Registered in England CHARITY REGISTERED NUMBER 522274
THE NEW MECHANICS LIMITED (THE NOINGHAm MECHANICS- founded 1837) (Limited by Guarantee - Registsred in England No. 00929885) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 CONTENTS PAGE The Council and Administration Report of the Chairman 213 Directors, Report 418 Independent Examinerfs Report Statement of Financial Actibllties 10 Balance Sheet 11 Accounting Policies and Notes 12122
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) {Limited by Guarantee- Registered in England No. 00929885) THE COUNCIL ADMINISTRATION STATUS The New Mechanics Limited is a charitable cornpany limited by guarantee and has no share capital. It was incorporated on 1 st April 1968 and is a registered charity (No. 522274}. PRESIDENT Mrs J Morris VICE PRESIDENT Vacant COUNCIL MEMBERS (BOARD of DIRECTORS) Mrs C A Alton Mrs V Apple Ms KJ Price Mr G R Freeman Mrs J Morris MrsllHart Mr R W Smith Mrs P Tilley Mrs H Hundley Mrs J Bird HONORARY SECRETARY Mrs V Apple HONORARY TREASURER Vacant MANAGER Mr A Carlton REPORTING ACCOUNTANTS MrA R R Price FCA Pells Chartered Accountants 17 Newstead Grove NOTTINGHAM NG14GZ BANKERS Virgin Money 11 Srnithy Row NOTTINGHAM NG13EJ SOLICITORS Geldards LLP The Aic Enterprise Way NOTTINGHAM NG2 1EN REGISTERED OFFICE 3 North Sherwood Street NOTTINGHAM NG14EZ
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) (Limited by Guarantee - Registered in England No. 00929885) REPORT OF THE CHAIRMAN FOR THE YEAR ENDED 31ST DECEMBER 2023 Good morning, if you have any comments regarding my report or other matters, could you keep them and address them at the "Any Other Business" later on, Another year gone by from our last Annual General fvleeting. Firstly, I would On again thank the Council Members for attending our meetings, whereby we discuss in detail the running of the Institute and ideas in its management. The majority of the time taken up with the financial aspects of the Instttute. The accounts will show you that we are continuing to be running at a loss situation and a finite solution to the problem is still to be found. As I said last year we intended to have another Open Forum, but until we had a concrete solution to our deficits there would have been little to tell you. Therefore, this didn't take pla. In round numbers we are currently running at a loss of £7,881 a month or £1,818 per week. The money we reiVed from the sale of Phoenix Park OffIS was a life saver in so much that we could pay off some of our debts. have a small amount left in the bank to help with the day to day running costs and put money into an investment fund, but we still owe the Govemment for part of the bridging loan that helped us through Covid. This borrowing had to be done, otherwise we wouldn't be here now. It was through my predecessor Geoff Green with Rob Smith and Adam Carlton to try to identify and rectify the daunting task of sorting out the financial mess previous Councils through possibly "burying their heads int the sand" the old school thinking we've had money in the past, one day it will come good again. It hasn't. Sue Brag played her part when the Treasurer left. Tryirjg over a long period, doing a good job which was not beneficial to her health. Around this time Geoff Green and Rob Smith were lucky to find our new manager 'Adam' who is doing a splendid job in running the Institute on a day-to4ay basis. My thanks to Rob, Adam and his team for all they do. Also not forgetting Geoff Green who was a big part of the trio. We are still operating withoLrt a Treasurer so Rob, Adam and myself are sharing the role. Some of you may think that by paying your membership, paying to come to the Friday talks, buying food and drinks in the restaurant that these will pay the way. Don't get me wrong, they do put money into the coffers, but not enough to run the place. Income from letting the rooms is a must, but the present bookings are not enough Adam and Wes are spending a considerable time and effort in organising day trips and setting up the Leisure Learning program which is reIving a good response. Classes which are prepaid will cornmen in September. followed up hopefully more subjects of interest to fill yet more teaching space You probably think as I would 'He's on about money again" but the serious side is that we need to keep drawing down on what's left of the investment money to survive, and the money will not last long. We are looking at various options regarding the only asset we have which is this building. Money has to come from somewhere for the long-tenn survival of our Institute. We being one of the onty two left in the country. The other one also running at a loss.
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS- founded 1837) (Limited by Guarantee - Registered in England No. 00929885) REPORT OF THE CHAIRMAN Continued FOR THE YEAR ENDED 31ST DECEMBER 2023 There are no doors to knock on, no funding available anywhere that we presently know of. We have to find money ourselves or our years of existen will be over. I'm sorry my report is gloomy but this is the reality of our situation A thank you to all you Members, Council Management and Staff for the past years of support. Let's hope a financial solution is forthcoming. Please take on board what has been said today, we don't want to fail the establishment which has been entrusted to us, as its longevity must continue MR G R FREEMAN CHAIRMAN
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) (Limited by Guarantee - Registered in England No. 00929885) REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 Re ort of the Trustees for the Year Ended 31st December 2023 The Trustees are pleased to present their annual Directors, Report, together with the financial statements of the Charity for the year ended 31st December 2023, which are also prepared to meet the requirements for a Directors, Report and accounts for Companies Act purposes. The financial statements have been prepared in accordan with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 United Kingdom and Republic of Iland {FRS 102) (effective 1st January 2019) Trustees of the Chari The Directors of the charitable company are its Trustees for the purposes of charity law. The Trustees who have serrfed during the year and since the year end were as follows:_ Mrs H Hundley MrsllHart Mrs P Tilley Mrs J Bird Mr GR Freeman Mrs C Alton Mrs V Apple Ms KJ Price Mrs CA Chapman (resigned 22nd June 2023) Mr R W Smith anisational Structure and Mana ement The New Mechanics Limited is a charitable company limited by guarantee and has no share capital. It was incorporated on 1st April 1968 and is a registered charity (No. 522274). Its constitution is set out in the Memorandum and Articles of Association. The controlling body is the Council of Management (Board of Directors) of up to 20 members who are the registered Directors. Meetings of the Board of Directors are normally held monthly. Directors rnust have been rnembers of the Association for at least 12 months and are elected to seNe for three years. all retiring Directors are eligible for re-election. The procedures for nomination and election of Directors are set out in the Articles of Association. The Honorary Secretary and the Honorary Treasurer are appointed by the Board of Directors for a period of years and are eligible for reappointment, the Honorary Secretary and the Honorary Treasurer are ex officio Directors. Directors are Trustees of the charity and use "The Good Trustee Guide" published by NCVO Publications as their training manual.
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) (Limited by Guarantse - Registered in England No. 00929885) REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 Or anisational Structure and Mana ement (Continued) The President and Vice Presidents are honorary positions, nominated by the Board of Directors and appointed by the mernbership at the AGM for a period of three years, and are eligible for reappointment. The Board of Directors have delegated responsibilty for day to day operations to Mr A Carlton, the Manager, including the provision of catering facilities. Catering is provided as a service to members ancillary to other activities. Risk Review The Manager has carried out risk assessments for fire and health and safety requirements and brokers a employed to advise on Insuran policies. Maintenance contracts with regular inspections are used for boilers, plant and equipment including the passenger and goods lifts. Ob"ectives and Activities The Memorandurn of Association sets out in paragraph 3(b) the main objective". "To promote the benefit of the inhabitants of the City of Nottingham and the neighbourhood thereof by the advancement of education and the provision, in the interests of social welfare and with the objects of improving the conditions of life, of facilities for recreation and other leisure time occupations." In addition paragraph 3{1) states "To.. Support... any charitable associations or institutions... in any way connected with the purposes of the Association or calculated to further its objectives." The Nottingham Mechanics owns and occupies premises in the ntre of Nottingham and seeks to meet these objectives in two ways, firstly to organise its own activities, and secondly to hire rooms at favourable rates to organisations which have sirnilar aims. It is a policy to keep the subscription as low as possible to enable those on low incomes to become members. (Lower rates are maintained for those aged less than 18 years). This is considered an important policy as most members are elderly and many are on low incomes. Activities for our rnembers, thefOre. conntrate on dancing, aerobics and other similar physical activities to help members to keep fit, such as table tennis and cultural and mental pursuits such as bridge, whist and chess wrth regular recorded opera and classical music sessions. Weekly illustrated lectures throughout rnost of the year prove popular and are well attended, and are open to non-members at a visitor fee of £2,00. The provision of computers for intemet access has proved popular. We also arrange day trips and short breaks for our members to places of interest in the UK.
THE NEW MECHANICS LIMITED (THE NOINGHAm MECHANICS- founded 1837) (Limited by Guarantee - Registered in England No. 00929885) REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 Ob'ectives and Activities Continued A very wide range of organisations with sirnilar objectives are encouraged to use our premises at subsidised rates. Some of which have been associated with The Nottingham Mechanics for many years, These organisations include, amongst others, The Dickens Fellowship, The National Trust, The Nottingham Probus Club, The Nottingham Shakespeare Society, The Nottingham Writers, Club, The Railway Correspondence and Travel Society, and The Thoroton Society. The Workers, Educational Association use us for a wide range of courses from poetry to music and history. The classes are advertised on the notice board downstairs. Rooms are let at higher rates to commercial bodies for training purposes and meeting purposes. These include Framework. Age UK and the NHS. We still have many activities on going and the balan between this and room lettings has helped by reducing the library and making the members area larger. These all combining with our Members Subscriptions and the investment income represent our major source of income this and the sale of Food and Beverage. Achievements and Perfonnance The results for the year (as detailed in the attached financial statements) were as follows: Incorning Resources Outgoing Resources 127,398 243 120 Net Outgoing Resources for the Year (115,722) Net gainsl(losses) on investments (2,489) Balance brought forward 1,551,308 Total U nrestricted Funds as at 31 st December 2023 1,433,097 The above funds have been allocatsd as follows: ReSoUrS used for Net Acquisitions of Fixed Assets Investment portfolio Working Capital Liabilities falling due after more than one year 1.224.504 232.278 (5,352) 18.333 Total Funds as at 31st December 2023 1.433,097
THE NEW MECHANICS LIMITED {THE NorriNGHAM MECHANICS- founded 1837) (Limlted by Guarantee - Reglstered in England No. 00929885) REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 Achievements and Performance We continue to find ways to bring dOffl our losses although our Gas and Electric has doubled, we have kept the overheads under control, we have had a 110/0 rise in the Minimum Wage which applies to most of the staff but even with this we have managed to keep the wage costs the same as last year We continue to use the investment money to keep going this will not last forever and we are about to start our leisure learning programme which we hope will help us bridge the gap beeen outgoings and incomings, this has been well reiVed and we are hoping the increase in footfall will also increase the bar takings. We continue to look forward and we are planning to bring back MOE trips for 24125 Our membership for 2023 was 195 plus six honorary members. we have brought in a pro rata We have a new project for 2024 we have called Leisure Learning which is a series of courses ranging from Dickens Christmas Carol to Japanese Culture we are using a model that the Ipswich Institute have been using for some time, we are initially opening it up to everyone then if this is sucSsful having two prices one for members and one for non-members the idea is to encourage the course attendees to become members. The number of members at 31 st December 2023 was 195 (2022.198) Reserves Polic The Board have considered that unrestricted funds not invested in fixed assets should be maintained at a level of between three and six months of reSoUrS expended (currently equating to £68,000 and £100.000) to enable the current activities of the charity to continue in the event of a significant drop in funding. Our unrestricted funds total £1,427.188 of which £1,224.504 is represented by the building £232,278 is set aside for the investment portfolio and designated funds of £5,909 leaving free funds in deficit by £29.594 at the end of the year as detailed in note 15. Investment Powers Under its Memorandum of Association, the charity has the power to make any investment which the board sees fit and conducive to it objectives. we chose Canaccord after going through a ProS8 to decide the best route to go down to achieve our charitable aims. Future Plans Our plan for the future is to revisit our charitable aim and construct our model moving forward to facilitste this. We are looking at different models and using other similar organisations test practices to help us achieve mission, this will enable the Nottingharn Mechanics Institute to further our charitable aims.
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- ftiunded 1837) (Limited by Guarantee - Registered in England No. 00929885 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2023 Political Contributions No donations for political purposes have been made. ortFn Accountants Pells, Chartered Accountants, are reappointed as Reporting Accountants for the ensuing year. Publlc Benefit Statement The Board of Directors have cornplied with their duty to have due regard to the guidance on public benefit, including the 'guidance public benefit: running a Charilty PB2' published by the Charity Commission in exercising their powers or duties. This report has been prepared in accordance with the Statement of Recomrnended Practice Accounting and Reporting by Charities SORP 2019 FRS (102) and in accordance with the special provisions for Srnall Cornpanies under part 15 of the Companies Act 2006. BY ORDER OF THE COUNCIL Mr G R Freeman 20th September 2024
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE NEW MECHANICS LIMITED I report to the Charity Trustees on my examination of the accounts for the company for the year ended 31st Dernber 2023, which comprise the statement of financial activities, statement of financial position and the related notes set out on pages 12 to 22 Responsibilitles and Basis of Report As the Charity's Trustees of the company (and also its Directors for the purpose of wmpany law) you are responsible for the preparation of the accounts in accordance wtth the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your Charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my exarnination I have followed the directions given by the Charity Commission under Section 145{5) (b) of the 2011 Act. Independent Examinerfs 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- accounting records were not kept in respect of the company as required by Section 386 of the 2006 Act" or the accounts do not accord with those records" or the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a Irue and fair viev/ which it nor a matter considered as part of an independent examinatson-, or the accounts have not been prepared in accordance with the methods and princtples of the Statement of Recommended Practice for accounting and reporting by Charities applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). I have no concems and have come across no other matters in connection wth the examination to which attention should be drawn in this report to enable a proper understarKling of the accounts to be reached. A R R PRICE FCA Member of the Institute of Chartered Accountants in England and Wales For and on behalf of Pells Chartered Accountants 17 Newstead Grove NOThINGHAM NG14GZ 20th September 2024
THE NEW MECHANICS LIMITED (rHE NorriNGHAM MECHANICS- founded 1837) (Limited by Guarantee - Reglstered in England No. 00929885) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2023 Total Funds 2023 Totsl Funds 2022 Notes UNRESTRICTED FUNDS INCOME Income and Endowments from: Donations and grants Charitable Activities Other Trading Activities Investment income 9,626 83,851 14,611 19,310 30,356 129,900 9,588 7,487 TOTAL INCOME 127,398 177,331 EXPENDITURE ON: Raising Funds Charitable Activities 2,882 240,238 31.943 257,502 TOTAL EXPENDITURE 243,120 289.445 Net OLrtgoing Resources for the Year (115,722) (112.114) Net gainsl(losses) on investments (2,489) Loss on Revaluation of Investment Propety NET MOVEMENT IN FUNDS (118,211) (112,114) Total Funds at 1st January 2023 1.551,308 1,663.422 TOTAL FUNDS AT 31ST DECEMBER 2023 1.433,097 1,551,308 All the above results are derived from continuing activities. 10
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS - founded 1837) (Limited by Guarantee - Regtstsred in England No. 00929885) BALANCE SHEET AS AT 31ST DECEMBER 2023 2023 2022 Notes FIXED ASSETS Tangible Assets Investments 10 11 1.224,504 232,278 1,245.649 1A56.782 1,245,649 CURRENT ASSETS Stocks Debtors Cash funds held at Canaccord Cash at Bank and in Hand 2,553 5,784 12 5.439 13.610 17,619 364,661 39,236 372,998 CREDITORS: amounts falling due within one year 13 44,588 39,006 NET CURRENT (LIABILITIESYASSETS 15.352) 1,451,430 333,992 1,579,641 CREDITORS: amounts falling due after more than one year 14 (18,333) (28,333) NET ASSETS 1,433,097 1,551,308 UNRESTRICTED FUNDS Designated Funds General Funds 15 15 5,g09 1427,188 5,909 1545 399 TOTAL CHARITY FUNDS 1.433,097 1,551.308 The DirectorE are satisfied that the cc4npany is enlilled to exemption frc4n audil under Section 477 of Ihe Companies Act 2D06 relating to small companies. The Directors, Résponsibiliti•s.' The members have not required the company to obtsin an audit of ib acc>)unts for the yearended in accordan wtth Section 476. The Directors acknowledge their responsibilitles for complying with the requirement of the Act with resCt lo accounting records and preparation of accounts. The financial statements have been prepared in accordance *ryth the provisK)ns apF4i1bIe to small companies. subject to the small Companies wime and in acwrdance th FRS (102) SORP. Thès8 financial stalÈmènts warè approved by the Board on %Xh S8pbmb8r 2024 and signed on its bèhalf. BY ORDER OF THE COUNCIL Mr G R Freeman Mrs C A Alton The notes on pages 12-22 form part of these finanoal statements 11
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS - founded 1837) (Limited by Guarantee - Registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES (a) General Infomiation and Basis of Preparation The New Mechanics Limited is a company limited by guarantee in the United Kingdom. In the event of the Charity being wound up, the liabilrty in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered Offi is give in the Chaiity information on page 3 of these financial statements. The nature of the Charity's operations and principal activities are: To promote the benefrt of the inhabitants of City of Nottingham and the neighbourhood, thereof by the advanrnent of education and the provision in the interests of social welfare with the objects of improving the conditions of lrfe, of facilities for recreation and other leisure time occupations. In addition to supporting charitable organisations or institution connected with the purpose of the Association or calculated to further tts obiectives. The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and °Accounting and Reporting by Charities.. Statement of Recomrnended Practice applicable to Charities preparing their accounts in accordance wtth the Financial Reporting Standard applicable in the United Kingdom and Republic of Iland (FRS 102) (effective 1 st January 2019) The financial statements are prepared on a going conrn basis under the historical cost convention, modified to include rtain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity. The Charity constitutes a public benefit entity as defined by FRS 102. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the Notes to the Financial Statements. 12
THE NEW MECHANICS LIMITED {THE NOTTINGHAM MECHANICS- founded 1837) {Limited by Guarantse - Registered in England No. 00929886) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ACCOUNTING POLICIES (Continued) Funds Continued Restricted funds are funds which are to be used in accordan Nwth specific restrictions irnposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the Notes to the Financial Statements. Income Reco nition All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income after any perforniance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised, the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of perforrnanGe before entitlement can be obtained then the income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. For legacies. entitlement is the earlier of the Charity being notified of an impending distribution Income from trading activities includes income eamed from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Investment income is eamed through holding assets for investment purposes. It includes interest and rent. Interest income is recognised using the effective interest method and rent income is recognised as the Charity's right to receive payment is established. Revenue grants are recognised when the Charity has entttlement to the funds, any perfonnance conditions attached have been met, it is probable that the income will be received and the amount can be measured reliably. enditure Reco nition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payrnents to third parties, it is probable that the settlement viill be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: Costs of raising funds includes costs of managing the investment property and room hire., 13
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS- founded 1837) (Limited by Guarantee - Registsred in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ACCOUNTING POLICIES (Continued) enditure ReGo nition Continued Members, subsGrtptions, cultural excursions, the restaurant and bar, and supporting Charities and other Institutions connected with the purpose of the Charity through Setting of rooms at a reduced rate; Other expenditure represents those items not falling into the categories above. ort Costs Allocation Support costs are those that assist the work on the Charity but do not directly represent charitable activities and include office costs. govemance costs, administralive payroll costs. The are incurred directly in support of expenditure on the objects of the Charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of resources. Tan ible Fixed Assets Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impaimient losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:_ Freehold Land Freehold Buildings Equipment and Fixtures and Fittings Furnishings Computer Equipment Not depreciated 2% straight line basis 6.60h straight line basis 5% straight line basis 200h straight line basis Investsnents Investments are stated at market value as advised by the fund rnanagers. Realised and unrealised gains are recognised in 'net gainsl(losses) on investments, in the SOFA. Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first- out fomiula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. 14
THE NEW MECHANICS LIMITED (THE NOTTINGHAM MECHANICS - founded 1837) (Limited by Guarantee - Reglstered in England No. 00929885) NOTES TO THE FINANCIAL sTATEMErs FOR THE YEAR ENDED 31ST DECEMBER 2023 ACCOUNTING POLICIES (Continued) Debtors and Credltors ReceAvablelPa able Wlthln One Year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaimient are recognised in expenditure. Im airnient Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each Balance Sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. When the carrying amount exceeds its recoverable amount. and impainnent loss is recognised in profit or loss unless the asset is Caled at a revalued amount where the impainnent loss is a revaluation decrease. Tax The Charity is an exernpt Charity within the tneaning of Schedule 3 of the Charities Act 2011 and is conSided to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets with the definition of a charitable company for UK corporation tax purposes. Goin Concern The financial statements have bn prepared on a going conrn basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure arKI the future sale of the investment property will enable the Charity to continue as a going concem. VOLUNTARY INCOME 2023 2022 Donations Legacies Govemment Grant Income Nottingham City Council Covid 19 Support Grants 9,626 6,692 19.664 4,000 9,626 30,356 15
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS- founded 1837) (Limited by Guarantee - registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Members, Subscriptions Members, Cultural Excursions Restaurant and Bar Lettings of Rooms Visitor Tickets Library and Sundry 8.727 2,733 49,442 22,497 98 354 10,254 42,037 46,106 30,928 401 174 83,851 129,900 OTHER TRADING ACTIVITIES Room Hire 14,611 9,588 INVESTMENT INCOME Investment Interest Car Parking Charges 7,652 11,658 7,487 19,310 7,487 RAISING FUNDS Investment Management Costs: Indemnity fee Legal Fees on sale Agents commission on sale Landlords Costs Investment management fees 705 4,068 6.670 10,167 3,215 3,215 (333) 21.610 333 10,000 Provision for Doubtful Debts Management of Lettings of Rooms 2.882 31,943 Investment Management Costs: The above costs for 2022 of £31,943 are in respect of the Investment Property at Phoenix Business Park, Cinderhill, Nottingham sold during 2022. 16
THE NEW MECHANICS LIMITED (THE NOThINGHAM MECHANICS- founded 1837) {Limited by Guarantee - Registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES 2023 2022 Restaurant and Bar: Purchases Wages Repairs Equipment Hire Rates & Water Electricity and Gas Cleaning( Incl wages) and Sundries Depreciation 18,504 24,863 944 724 639 5,892 6,318 1,102 16,775 19,716 2,781 493 1,552 1,938 3,352 1,175 58,986 47.782 Members. Cultural Excursions 2.992 40,533 General: Management and Office Salaries and Wages Rates, Water, Electricity, Gas. Insurance and Telephone Printing, Stationery and Postage Sundry Depreciation Repairs and Maintenance Bank Interest Credit Card Charges 58,394 31,929 689 4,410 1.753 3,405 862 1,542 50,492 15,594 753 4,132 2,773 2,485 1,274 1,355 102,984 78.858 Buildings: Wages Facilities Repairs and Maintenance Cleaning Wages Cleaning and Sundries Depreciation 33,712 4,214 10,490 3,090 18,290 46,352 7,030 10,795 2,541 18,290 69,796 85,008 Library and Sundry: Books and Periodicals Depreciation 102 102 17
THE NEW MECHANICS LIMITED (THE NOINGHAm MECHANICS- founded 1837) (Limltsd by Guarantee - registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ANALYSIS OF EXPENDITURE ON CHARITABLE EVENTS (Continued) 2023 2022 Governance Costs: Independent Examiners Fees Other Accounting servIs Bank Charges Filing Fees 1.675 3,755 50 1,595 3,445 166 13 5,480 5,219 TOTAL FOR CHARITABLE ACTIVITIES 240.238 257,502 STAFF COSTS AND NUMBERS staff Costs were as follows: Salaries and Wages Social Security Costs Pension Costs - Deferred Contribution 124,699 3,265 1.385 134,751 3,796 1.508 129,349 140,055 No employee re1Ve emoluments of more than £60,000. The average numbers of and employees during the year were.. No. Employees: Directors Office and Administration Facilty Staff The President, Vice Presidents and Honorary Officers are appointed by the Council. The TrUStS neither received nor waived any remuneration during the year (2022: £Nil). The Trustees did not have any expenses reimbursed during the year (2022 £Nil). Total key management remuneration amounted to £ 31,721 (2022: £26.501). 18
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) (Llmited by Guarantee - registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 NET EXPENDITURE FOR THE YEAR 2023 2022 This is stated after charying. Depreciation Independent Examinerfs Fee Other Accounting servIs 21.145 1,595 3,835 22,340 1,595 3,445 10 TANGIBLE FIXED ASSETS EquipmenL Fixtures and Frttin Freehold Land and Buildin Total Tangible Assets Computer ui ment Fumishin COST At 1.1.23 Additions Disposals 1,567,336 281,421 70.366 26,074 1.945,197 At 31.12.23 1,567,336 281,421 70,366 26,074 1,945,197 DEPRECIATION At1.1.23 Charge for the Year On Disposals 338,344 17,576 273.281 904 62.485 2,390 25,438 275 699,548 21,145 At 31.12.23 355.920 274,185 64,875 25,713 720,693 NET BOOK VALUE At 31.12.23 1,211,416 7.236 5,491 361 1,224,504 At 31.12.22 1,228,992 8.140 7.881 636 1,245,649 The net book values represent fixed assets used for direct charrtable purposes 19
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS- founded 1837) (Limited by Guarantee - Registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 2023 2022 11 INVESTMENTS Acquisitions at cost Sale proceeds from disposals Realised Gainl(loss) in the year Unrealised Gainl(loss} in the year Market value at 31 st December 2023 289,454 (54,687) (5,144) 2,655 232,278 Investments at market value comprised: Debt and fixed interest Equities 79,894 152,384 232,278 Historical cost as at 31st December 2023 229,622 12 DEBTORS 2023 2022 Trade Debtors Other Debtors Prepayments and Accrued Income 2,654 3.361 2,423 5,439 5,784 13 CREDITORS: Amounts Falling Due Within One Year Bank loan Trade Creditors Accruals and Deferred Incorne Taxation and Social Security other Creditors 10,000 3,458 18,994 8.572 3,564 10,000 4,295 14,416 6,763 3,532 44,588 39,006 Included in accruals and deferred incorne is deferred incorne relating to members, subscriptions which are paid in advance. This amounts to £4,497 (2022.. £4,643). 20
THE NEW MECHANICS LIMITED (THE No1NGHAm PIIECHANICS - founded 1837) (Limited by Guardntee - Registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 14 CREDITORS.. Amounts Falling Due After More Than One Year 2023 2022 Bank loan 18.333 28,333 The bank loan is repayable by instalments within 5 years 15 MOVEMENT IN FUNDS At 01.0123 Incoming Resources Outgoing Resources At 31.12.23 Transfer Unrestricted Funds: Designated Funds: Special Funds Reserve 5,909 5,909 Unrestricted Funds .' Fixed Assets Investment Reserve General Funds 1,245.649 300.000 50 1.545,399 (21,145) 1,224,504 232,278 29,594 1,427,188 (67,722) 67,722 127,398 127,398 224,464 245,609 TOTAL FUNDS 1,551.308 127.398 245,609) 1.433,097 Unrostricted Funds Fixed Assots: This represents the nel book value of fixed assets. Investment Reserve: This represents the balance of funds from the sale of the investrrte property at Phoenix Pa, Nottingham invested with Cana¢cord Genuty in ltsted UK securities Special Funds Reserve: This Fund includes- Sir Albert Atkey and E A Harvey Bequests The J N Derbyshire Foundation Fund £682 £5.227 £5.909 The fvnds previously sho*r¢ under the heading of 'Special Funds, were released to the General Fund in 1966 on the following conditsons: that the identity of the funds be preserved and sho4vn in the finan¢ial statements: that the funds would be reinstated from future income of the general fund after meets.ng running expenses and allowing for depreciati.. that until reinststement Ihe Council will provide out of general funds for the ¢onlinuan¢e of the stated objectives of the above named Funds. 21
THE NEW MECHANICS LIMITED (THE NorriNGHAM MECHANICS - ftiunded 1837) (Limited by Guarantee - Registered in England No. 00929885) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 16 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Funds Designated Funds Total Fund Balances as at 31st December 2023 are represented by: Tangible Fixed Assets Investrnents Net Current Liabilities Creditors amount falling due after rnore than one year 1,224,504 232,278 (11,261) 1,224,504 232,278 (5,352) 5,909 18,333 1,427.188 18,333 1,433,097 5.909 Fund Balances as at 31st December 2022 are represented by: Tangible Fixed Assets Net Current Assets Creditors amount falling due after more than one year 1 ,245,649 328,083 1,245,649 (333, 992) 5,909 28.333 1,545,399 28,333 1,551,308 5,909 17 RELATED PARTIES There are no related party transactions that require disclosure. 18 COMMITMENTS As at 31 st Decernber 2023 the company had commitments under non-cancellable operating leases" 2023 2022 Plant and machinery Payable within one year Payable from one to five years 723 723 22