The trustees present their annual report and financial statements for the year ended 30 September 2022.
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 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 UK and Republic of Ireland (FRS 102)" issued in October 2019.
The objects of the company as stated in the Memorandum and Articles of Association are:
To promote for the benefit of the inhabitants of Ware and the neighbourhood without distinction of sex, sexual orientation, race or of political, religious or other opinions by associating the said inhabitants and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare and for recreation and leisure time occupation with the object of improving the conditions of life for the said inhabitants.
To secure the establishment of a centre and to maintain and manage the same whether alone or in co-operation with any local authority or other person or body in furtherance of these objects.
The principal activity of the company is the operation of the Drill Hall in Ware for the benefit of the local community as a venue for sports, arts and general community use. The use of the Hall is made possible under a lease granted by East Hertfordshire District Council (E.H.D.C.). Any surplus generated by the charity will be retained to meet exceptional expenditure and to assist with the development of the facility.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The company (‘’the Charity’) is responsible for the operation of Ware Drill Hall which has continued to be available to the wider local community for hire.
The Drill Hall continues to change the types of bookings.
Weekdays: This is largely the same with Sports and other local community bookings.
Weekends: this is moving to more one-off Arts and Culture bookings. The gymnastics club no longer hires the facility allowing greater freedom for booking larger events.
The Drill Hall is well booked however, the Hall will need to advertise its unique size and location to ensure the Arts and Culture bookings grow.
James Reed has been engaged in March 2022 to provide professional caretaking services for the hall. He lives locally in Ware with his family and he does not reside in the caretakers flat.
Victoria McKay has been managing the Drill Hall as a contractor and has begun the process to recruit a new Premises Manager. Internal repairs and upgrades have been carried out including new lighting and painting of the Hanbury Room. Roof repairs have also been carried out. The auditory drapes were purchased to enhance the quality or performances held and the lighting system was upgraded with the same result. The parquet flooring in the foyer has been refurbished and the foyer has been painted. A Hearing Loop System was also purchased and installed.
New contracts for energy suppliers have been negotiated.
The flat has not been inhabited since the previous Caretaker left in April 2022.
During the period the Charity operated successfully, generating bookings income for the Hall of £59,731 (2021: £43,713). Grant income in the year comprised £12,559 (2021: £27,370) received from local authorities to assist the Charity in its recovery from Covid. In addition, £Nil (2021: £7,500) was received from the local authority towards the funding of the Charity’s Auditory experience project. In addition, the Charity received contributions from the Coronavirus Job Retention scheme amounting to £Nil (2021: £6,067).
Charitable Expenditure for the year was £94,881 (2021: £72,516) which is comparable with previous years with the main reason for the increase being due to a higher level of repairs in the year, increased legal and professional fees with the administrators fees and finally the caretakers fees which have been offset by reduced salary costs.
Overall, the charity achieved a net deficit for the year of £22,217 (2021: surplus of £12,145) and unrestricted reserves of £112,194 available to carry forward.
The trustees will seek to build sustainable unrestricted reserves to a level sufficient to provide financial stability, meet exceptional expenditure and to assist with any future development of the facility.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Subject to the availability of funds, the Association plans to:
Continue to Improve the presentation of the entrance lobby area and take account of wear and tear since it was last refurbished in 2012. The fire doors linking through to the main hall are also to be replaced.
Continue with the refurbish of the small meeting room, the Hanbury Room.
To change the usage of the flat from employee tied accommodation to residential accommodation with a standalone entrance.
To change the lease to allow the examination of accounts rather than audit to reduce expenses.
To have the badminton sports lines repainted.
To improve facilities within the kitchen to include a dishwasher and water boiler.
To further implement the plans within the Drill Hall Feasibility Study with regards to the development of the garages and the old annexe that currently houses toilets and changing rooms. This also includes the purchase of moveable tiered seating.
Considering the use of electronic digital display boards outside the Drill Hall to improve advertising, it should also be more flexible. It may also allow the use of local information, but this needs to be decided.
The Charity continues to maintain a healthy level of reserves as a financial cushion and the building’s suitability to providing a Covid-Secure facility and operating as a base for vaccine clinics mean that its future is relatively secure in comparison to many other venues.
The charity is a company limited by guarantee of the members to a maximum of £1 each and was incorporated on 21 September 2001. The company is a registered charity and gained charitable status on 31 January 2002.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
A board of trustees of at least four members meets regularly to administer the charity. Trustees are appointed in accordance with the company’s memorandum and articles of association. New trustees will be asked to familiarise themselves on the duties and responsibilities of Trustees as provided by the Charity Commission.
The trustees, who are also the directors of The Ware Drill Hall Association Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Ware Drill Hall Association Limited (the charity) for the year ended 30 September 2022.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (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.
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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
the financial statements have not been prepared in accordance with the methods and principles 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 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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Ware Drill Hall Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 Amwell End, Ware, Hertfordshire, SG12 9HP.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" issued in October 2019. 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 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.
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.
On the date of these financial statements’ approval, there is great uncertainty surrounding the global economy and impact of the Coronavirus pandemic and the conflict in Ukraine. The trustees consider the charity to be sufficiently robust that its operations will not be significantly affected by the continued uncertainty from these events. The trustees are continuously monitoring the charity’s income levels and cost base for any adverse movements in value and costs and will take action wherever necessary to protect the charity’s stakeholder interests should the period of uncertainty continue for longer than expected.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
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.
Income from the hall hire and management administration fees represent amounts receivable in respect of services provided and are included in the period to which the income relates.
Income from government and other grants, whether ‘Capital’ grants or ‘Revenue’ grants, is recognised when the Charity has entitlement to the funds, any 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. Investment income is included when receivable.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Irrecoverable VAT is included with the items of expense which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Fixed assets costing more than £500 are written off over their expected useful life. Any asset acquired for a value less than £500 will be written off as expenditure in the period in which the expenditure was incurred.
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:
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.
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).
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.
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, 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, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Limited by Guarantee
The company is limited without share capital. In the event of the company being wound up, each member is liable to contribute to the payment of debts and liabilities of the company as may be required, not exceeding £1.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The annual depreciation charge is sensitive to changes in the estimated useful economic lives and residual values of the assets as detailed in note 12. The useful economic lives and residual values are re-assessed annually.
The trustees make estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, the factors considered include the ageing profile of debtors and historical experience.
Grants received
The grants received in the year consists of unrestricted Coronavirus business support grants from local authorities of £12,559 (2021: £27,370) and within restricted funds a grant of £Nil (2021: £7,500) was received from the local authority to fund improvements to the auditory experience within the Hall.
Hire of hall
Income from Coronavirus Job Retention Scheme
Operation of the Drill Hall
Operation of the Drill Hall
Repairs, replacements and maintenance
Utilities
Refuse collection
Insurance
Cleaning and materials
Caretaker fees
Postage, stationery and IT software & consumables
Telephone
Insurance
Licences
Legal and professional
Miscellaneous
Bad debts
Bank charges
Independent Examination fees
Governance costs includes payments to the auditors of £Nil (2021- £3,480) for audit fees.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. No trustees were reimbursed any expenses during the year.
The average monthly number of employees during the year was:
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.
Deferred income is included in the financial statements as follows:
Deferred income comprises of receipts for the hire of the hall and facilities received in advance for future accounting periods
In 2014 the company received a grant of £1,000 towards the cost of curtains in the main hall.
In 2015 the company received a grant of £10,000 from the National Lottery towards the cost of new staging. In 2016 a further £7,716 was received and the asset was capitalised.
In 2015 the company received a grant of £10,000 towards the cost of a new fire alarm system.
In 2021 the company received £7,500 from the local authority towards the costs of its Auditory Experience project.
Grants of a capital nature continue to be released to the unrestricted general fund in line with the depreciation policy of the asset which was capitalised and is included within the transfer between funds.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2021 - none).