Report of the Trustees for the Year Ended 31 August 2017
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2017. The trustees have adopted the provisions of 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 2015).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Charity’s objects are: To provide and manage a community centre for the benefit of the parish of Milford-on-Sea Lymington Hampshire and to encourage and promote the personal and social development of young people in the parish.
The charity operates a purpose-built Community Centre which opened in September 2010, and this report is for our 7th year of operation from this centre. We achieve our charitable aims by:
- Hiring the facilities to local organisations and individuals resulting in a broad range of activities including education, music, art, drama, dance, exercise & fitness, meetings, local support groups, etc.;
- Running a well-staffed youth club two evenings a week. The activities are designed to promote communication and conversation as well as teaching our young people skills for life;
- Organising a wide range of activities and entertainment designed to have broad appeal and be a focal point for the local community, many of these activities are priced to raise Funds;
- Running a well-used cafe from Monday to Saturday, providing free internet facilities, and a bar which runs alongside most of our events; and
- Raising funds by operating a successful charity shop.
Organisation and General
The charity’s governing body is the Board of Trustees which meets monthly to discuss operational and strategic matters. There are a number of sub-committees which report to the Board dealing with more detailed matters related to the ongoing operation and development of the Centre. Two new Trustees were appointed during the period (and one other following financial year end); the vacant posts were advertised in the local area and all candidates interviewed. All Trustees appointed are local residents and all were previously part of the broad volunteer base that supports the charity.
The Centre operates a charity shop through a trading subsidiary (Milford Milleniurn Shop Ltd) of which it is the sole shareholder. All profits from the subsidiary are distributed annually to the charity to farther its community objects.
Trustees and Sub-Committees take responsibility for management of the day to day operations of the charity and the trading subsidiary; the charity does not have an appointed Chief Executive or Senior staff member.
One charity Trustee is employed by the Charity Shop as joint Deputy Manager. Two Deputy Manager roles were advertised widely, interviews conducted, and the appointments made on the basis of the best qualified candidates. The Charity Commission was consulted on and agreed to the appointment. Remuneration paid to both Deputy Managers is identical and at what we have determined to be market rate for such posts. The income paid to the Trustee is declared in this report.
The charity employed an average of 7 staff over the financial year, this being a full-time Caretaker, a Charity Shop Manager and 2 deputies (all part-time) to ensure 6 days a week operation, a Youth Leader who takes responsibility for managing the Youth Club along with 2-3 Youth Workers (all part-time).
Achievements and Performance in 2016-17
During the last year, the Milford on Sea Community Centre has again strengthened its financial position enabling the Centre to continue to develop its wide range of services whilst keeping our charges as low as possible.
The Youth Club has flourished this year under new leadership. Attendance at the two weekly sessions have increased in both age groups and new members are made very welcome. Each week pre-planned activities take place which are both interesting and enjoyable. The Youth Club remained open throughout the school summer holiday this year although attendance was predictably a little quieter than in tern time.
This year we have continued to build on previous year’s success with increases in the number and scope of events & activities held. The satellite broadcasts continue to be well supported and we have introduced a Sunday afternoon matinee programme to meet additional identified requirements within the Community. To date these have also been very well supported. The range of Milford Movies has also been increased with latest releases also being well received.
The varied programmes of other events and activities have continued, including a wide range of music, dance and plays. Of special note were the Out of the Blue Accapella Group concert and an outdoor Milford Summer Opera; both were extremely well supported.
We continue to support and liaise with the local Music and Arts festival, local churches, choirs, the RNLI, Barnardos, British Legion and other national and local charities and groups by selling event tickets through our Box Office; many of these were sold out; this Box Office service is greatly appreciated by the groups concerned.
We continue to expand the range of activities provided to local groups. The Seahorses Playgroup, run by volunteers and supported by the Community Centre has continued to be a success with young children and their parents. We promote a monthly charity lunch and Sunday lunch club for the elderly who live alone in the village. Other regular group users include U3A activities, an Alzheimer group, and a SIBS group.
The Charity Shop has enjoyed yet another year of growth with shop sales increasing by around 3% on the previous year. Gift Aid continues to be an important part of our income; we have secured Gift Aid on around 45% of all sales across the year, slightly down on 49% last year.
The year started with a change in management structure with the appointment of 2 new deputy managers, and this structure has proved successful enabling us to open 6 days a week, with some Bank Holidays and the occasional Sunday sale as well. A new initiative this year has been to trial an on-line eBay shop. Efforts to increase the volunteer base for the shop will be required in the coming year as volunteer numbers have fallen recently.
Buildings and Facilities
We have maintained a high standard of maintenance for the building and its equipment and facilities. We take a pro-active stance in meeting our Health and Safety responsibilities, including a rolling review of our risk assessments. We commissioned new fire risk assessments during the year and a full electrical condition survey of the building installation.
Last year Trustees decided, after detailed engineering advice and a financial review, to replace the Biomass boiler which had proved to be highly unreliable and costly to operate with an energy-efficient Gas boiler. This new boiler was installed in the summer of 2016 funded from the Community Centre’s own cash reserves and expected to pay-back within 4-5 years. After 1 year of operation Trustees are pleased to report that the new heating system has yielded a 45% reduction in fuel costs and a substantial saving on maintenance and repair vs. previous years.
Other- investments made during the year included a new extension stage to enable safe one-person assembly I disassembly, a new photocopier for publicity, new computers throughout our bar, care and box office, new floor cleaner and fridge replacements for the busy kitchen.
Long Term Development
One significant development this year is that the charity purchased a piece of land adjacent to the Community Centre which offers the opportunity to expand our facilities.
Since our opening in 2010, we have significantly grown income and the Centre has become very busy, with a lack of spare capacity at many times. Trustees have been considering options for future development over the last 2-3 years and the timing of this land becoming available was very fortuitous.
The land has been purchased Freehold from the charity’s own reserves and general funds, and Trustees have appointed professional advisers to explore development options and secure planning permission. A restricted fund has been created for donations towards future development. No specific fundraising campaign has yet been initiated.
The Charity meets its requirements to deliver Public Benefit through the broad range of services listed above that are provided to the local community.
The Centre has a very active team of over 100 volunteers providing support in administration, refreshments, gardening, shop, kitchen, technical, and other activities; this enthusiastic support is what allows us to operate a Cafe, Box Office & Shop for six days a week & run our extensive programme of activities.
ACHIEVEMENT AND PERFORMANCE FINANCIAL REVIEW
Financial review 2016-17
Net Income for the Group in 2016-17 is £182,915, compared to Net Income in 2015-16 of £971,900 which is 81.2% down on the prior year £788,985. This is largely due to a restatement of the prior year’s income whereby £769,803 of Grants which were spent in the construction of the Centre have now been stated as income in that year whereas these had previously been treated as deferred income.
The net surplus for the Group in 2016-17 consists of £219,560 of income, compared to £ 1,008,230 in 2015-16, a reduction of
£788,670 (78.2%); £189,313 of expenditure, compared to £188,427 in 2015-16, an increase of £886 (0.5%); and gains on investments in 2016-1 7 of 13.
The net reduction in the Group’s income totalling £788,670 (78.2%) was largely made up of the restatement of the prior year grants. The net increase in the Group’s expenditure totalling £886. The Group’s cumulative surplus stood at £1,302,358 31 August 2017 of which £478,499 is currently financing net tangible fixed assets.
The charity instigated a Reserves Policy in 2013-14 to develop cash reserves against 4 possible risks or longer-term requirements:
- To protect against maintenance risks and liabilities (Sinking Fund);
- To protect against future income downturn or budget shortfall in any operating year;
- To create a business interruption reserve;
- To create a seed fund for future expansion of the Centre.
The Reserves Policy is reviewed annually, and this policy is still deemed appropriate by Trustees in 2016-17. During 2016-17 the level of reserves held has been monitored against the target reserve. The land purchased for future expansion bas now spent the seed fund.
The Trustees confirm that, after making appropriate enquiries, they have reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these accounts.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity 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.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
03718895 (England and Wales)
Registered Charity number
4 Cedar Park Cobham Road
Femdown Industrial Estate
Wimbome Dorset BH21 7SF
4 Cedar Park Cobham Road
Femdown Industrial Estate
Wimbome Dorset BH21 7SF
BOB BISHOP – Chair of Trustees
COLIN BROWN – Chair of the House Committee
DAVID ELLIS – Treasurer
ANN HOULIHAN – Volunteers
PAUL WARE-LANE – Chair of the Events, Activities and Marketing Committee
HUGH WHITLOCK – Company Secretary
SUSAN WHITLOCK – Bookings