The trustees present their report and financial statements for the year ended 31 March 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the trust's Memorandum and Articles of Association dated 9 September 2009 , 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)” (as amended for accounting periods commencing from 1 January 2016).
The trust's objects are to further or benefit the residents of Exeter and in particular the neighbourhood of St. David's without distinction of gender, sexual orientation, race or of political, religious or other opinions by associating together with the said residents 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 for recreation leisure time occupation with the objective of improving the conditions of life for the residents. T here has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
The activity of the charity is that of the running and maintenance of the Exeter Community Centre at 17 St. Davids Hill, Exeter in furtherance of its objectives as detailed above.
The trust's policy is to consult and discuss with employees and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins, meetings and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the centre's performance.
In December 2019 the Trust, having secured all the funding needed for a major refurbishment of the top floor of the Centre, to create more lettable space and to engage the community in the heritage of the Centre building and neighbourhood, was able to let the contract for the building work to start. At the same time we recruited staff and volunteers to manage the build process and the parallel community engagement programme.
And then Lockdown happened. The Centre closed on 24 March 2020, the building work stopped and staff were furloughed. The Trust and others in the St David’s community, and councillors, set up St David’s Community Help scheme which has helped those most vulnerable in the community, with the Centre providing a base for the pick up of Covid safe materials – gloves, hand sanitisers etc. The Help Scheme kept our community engagement programme functioning as best we could, with volunteer help from the community and trustees.
By May 2020 building work had begun again on the top floor. All tenants had closed their offices and the only meetings that were allowed in the Centre – and under strict Covid 19 safety rules - were those essential activities relating to health and social care that were allowed by central government. In April/May 20 20 trustees began a fundraising campaign to major funders for Covid 19 Emergency, Recovery and Resilience grants. To March 20 21 we have raised £ 109,556 in Covid support funding and JRS furlough funding for those staff whom we had to furlough, which plugs our cashflow gap to October 21 and enabled us to purchase the equipment, consumables and staff/volunteer training to become a Covid Secure building. We hope to open the building and bring staff back from furlough by the end of summer 2021 depending on central government guidelines. It is been a difficult time for all staff but especially difficult for the 3 Modern Apprentices young people we recruited in Sept 20, to then almost immediately have to close the Centre and furlough them.
Trustees, meeting on Z oom during the pandemic, decided in Feb 20 21 that as the pattern of online working and working from home was likely to continue after unlocking – there was a need to consider repurposing rooms that had previously been used as meeting rooms in order to diversify trading income streams. We commissioned a feasibility study for a Community Kitchen as our work in delivering food to shielding individuals during the pandemic had shown us that there was scope to encourage healthier eating among local residents. The feasibility study survey of potential Community Kitchen hirers showed that this use of a large room would attract new target markets. We therefore applied for, and were successful in getting, funding from Power To Change to create the kitchen infrastructure of air ducts/ventilation, drainage etc to create 4 workstations that could be shared to 8, with a teaching space. Work has now started to carcass out the workstations, fit ovens and hobs and fundraise for appliances.
Our Community Activity Plan (National Lottery Heritage Fund) is in its second year. We were fortunate to be able to recruit considerably over our target number of community researchers from the local community, who have through the autumn, winter and spring been researching the history and heritage of the Centre building and the St David’s Neighbourhood. They have been supported by specialist heritage advisers, with one to one mentoring on their topic of interest and general talks available also to the public on aspects of the history of the area and Exeter. Their research will be turned into a script for a St David’s Trail led by volunteer guides.
In November 2020 we began a partnership with trusts in Exeter to develop a well-being project, encouraging those in the community who lacked confidence to go outside and/or meet people to volunteer their time as Welcome Hosts, Curators of Exhibitions or Trail Guides. Our joint application for funding from the Thriving Communities Fund (Arts Council) was successful. This programme is called ‘All’s Well’ and runs to 31 March 2022.
C ashflow
The current ac count bank balance at the end of Mar ch 20 21 was £121 k with the deposit ac count at £193 k and t here has been a decrease since the start of the financial year of £29.5k which is due to the property improvement expenditure on the top floor though significant grant income has been a mitigating factor.
Budgets/SOFA
Income
Please note the sessional hire income is significantly lower than in 2020 due to the centre closed for much of the year due to Covid-19 and has only just reopened. Lease income has suffered too but by a lesser extent. The total grants of £150.3k in the year is as follows: £28k Covid Emergency fund, National Heritage £44.2k, ECC £12k & CJRS £66k. There was a net profit of £42.8k in the year though if you exclude grant income/expenditure/depreciation, PPE costs & salaries (covered by CJRS grants) the operational surplus is £15.5k.
Expenditure
Salary costs does not include any CJRS income from HMRC though this is shown within grant income (£66k which continues into 2021-22). The SIB interest currently much lower than budgeted (current interest level 0.5%) which has been extended to Mar 2021 by SIB. Grant expenditure is not technically operational so should be monitored against the grant income.
Balance sheet
The SIB Loan has decreased only slightly (£7k) due to a capital repayment holiday from SIB (balance £989k at end of Mar 20 21) and a reduced interest charged as indicated above. Property improvements now stand at £528k after deducting £11k of depreciation. The trustees may consider revaluing the property at the end of the financial year due to improvements.
Trade debtors
This figure has decreased by £3.3k to £3.1k when compared to March 20 20 which is due to the reduction within customer invoicing due to centre being closed.
Grant Income/Expenditure (please refer to the departmental report for income/expenditure breakdown)
The majority of the income and expenditure was on ‘The Big Project’ and a total of £344.7 k was received (HLF £224.4k, Power to Change £94k, Viridor £10k, Grantscape £15k & donations £1.3k) in the year. The capital expenditure (property improvements – works finished November 20 20) was £441.6k and revenue expenditure of £64.9k (mostly salaries £36.9k and professional fees £24.7k) in the year.
Please note The Kitchen Project (grant of £44.2k received Nov 20 2 0 ) and the All’s Well Project (grant of £18.4k received Apr 21) have a short time frame and work will be completed on both by Mar 20 22.
Accounts
The effect of Covid-19 on the operational figures has been significant though to counteract the negative impact of Covid-19 the trust has been very pro-active in applying for support grants which it continues to do so and has been very successful to date i.e. The Community Kitchen Project and All’s Well. This will no doubt help them through a very tough 2021-22 though it is extremely difficult to predict the full effect of Covid -19 with regards to operational income due to the restriction and the shift to a more flexible work life balance which would incorporate working from home.
Risk management
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity plans to continue the activities outlined above in the forthcoming years. In particular to remain the centre for the local community where individuals and groups can make the most of the wide variety of spaces and activities offered.
The trust is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
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:
Recruitment and appointment of trustees
Under the requirements of the Articles of Association, trustees are elected for a period of three years after which they must be re-elected at the next Annual General Meeting. Trustees annually review the period of service.
The board of trustees regularly discusses the recruitment of new trustees for their experience, empathy and knowledge of the charity, and to keep the skills and composition of the trustee body as a whole and succession planning under review.
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed by the trustees from the charity are set out in note 8 to the financial statements.
Organisational structure
The charity is administered by a board of directors who are also trustees. The day to day running of the charity is overseen by the Centre Manager, who reports to the trustees.
During the 12 months time period the membership of the Trust increased to 147.
The trustees met for business meetings in December, March, May, July and September.
My final paragraph on this report reads nearly the same as that of last year – uncertainties about the future and the spirit to keep going . As we move forward, rather uncertainly given the Coronavirus pandemic, towards autumn and winter with the Centre re-opening and restarting activities in St David’s, it will be the community spirit and energy that has brought us through 2019 and 2020 that will sustain us, surely. As always, our thanks go to all funders, staff and volunteers who continue to give time, energy and commitment to our activities. There has never been a better time to add the quote from our neighbourhood website.
"Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts.
Persistence and determination alone are omnipotent. The slogan 'press on' has solved, and always will solve, the problems of the human race."
Calvin Coolidge.
The trustees' r eport was approved by the Board of Trustees.
I report on the financial statements of the trust for the year ended 31 March 2021, which are set out on pages 6 to 20.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the financial statements under section 145 of the 2011 Act;
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn 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.
Exeter Community Centre Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Wessex House, Teign Road, Newton Abbot, Devon, TQ12 4AA.
The accounts have been prepared in accordance with the trust'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)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.
The trust 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 trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts are prepared on a going concern basis which means that the charity can pay its debts as they fall due for the next twelve months.
The charity is reliant on the continued positive support of its only lender, Futurebuilders England who have being extremely supportive of the project. In the last few years Futurebuilders England have provided a temporary restructuring of the loan interest payable and a capital repayment holiday.
The Trustees of the Charity work extremely closely with Futurebuilders England and have no reason to question their continued support to the project and hence feel it is appropriate to prepare the accounts on a going concern basis.
Due to the pandemic , to a large extent operational income has been replaced by support grants. In addition, the Trust’s major lender has provided support in terms of a capital and interest repayment holiday.
The staff and trustees are working very hard to steer the Trust through these very uncertain times and believe that with the continued support of key stakeholders the Trust will survive and prosper.
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.
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:
- when donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods; and
- when donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income;
the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business and net of discounts .
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on the accruals basis and includes irrecoverable VAT. Expenditure is allocated to activities on the direct usage basis.
Costs incurred wholly or mainly in support of generating funds, or in support on the objects of the charity and being an integral part of the cost of carry out those activities, are included within Charitable Expenditure as appropriate.
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:
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 net income/(expenditure) for the year.
At each reporting end date, the trust 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 trust 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 trust's balance sheet when the trust 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 p aymen ts 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.
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Grants receivable
Grants receivable - CJRS
Grants receivable other
Room hire
Lease & service charges
Sundry income
Ancillary trading income including receipts from catering supplied
Other trading activities including costs of catering supplied
Rates and water
Security and facilities
Insurance
Publicity and advertising
Telephone
Heat and light
Cleaning and hygiene
Printing, postage, stationery and computer
Consultancy and subcontractors
Repairs and maintenance
Bad debt expense
Subscriptions
Motor and travelling
Bank charges and loan interest
Sundries
Accountancy and bookkeeping
Governance
Trustee meetings
Governance
Governance costs includes payments to the independent examiners of £2, 46 0 (2020- £ 2,100 ) for independent examiners fees.
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed for mileage (20 20 - two were reimbursed for mileage of £ 6 ).
The average monthly number of employees during the year was:
The long-term loans are secured by fixed charges over the property in which the charity operates from.
Bank loans are amounts borrowed from the Social Investment Business (Community Builders Fund) for the refurbishment of the Centre. The bank is being very supportive and only charging a minimal interest rate and has agreed a lower repayment of £2,000 per month, which is significantly less than its original contracted amount .
SIB funds are for the refurbishment of the Centre and working capital.
Peoples Health Trust (PHT) funds are for 'Past Present Future' community development project for pottery equipment and the creation of a sensory garden.
Grass Roots grant and HLF grant are for development of third floor.
Postcode Lottery grant is for development of veg boxes garden.
Moto grant has been granted towards the refurbishment of the building.
The Co-Op grant is for restoring third floor.
At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The key management personnel of the charity comprise the managers . The total remuneration of key management personnel during the period was :
In line with Charity’s procurement policy and following a review of a number of quotes for IT work, services of Invisiona Ltd, a company controlled by one of the Trustees at a time of the transaction, were selected to provide IT services to the charity. IT services provided totalled £ nil (2020: £4,873 . At 31 March 202 1 there were no balances due to or from related parties (2020: £nil).