Hall Annual Accounts
Metfield Village Hall financial year runs from 1st April to 31st March. The Annual Accounts are prepared by Van Dijk Accountants Ltd, Halesworth who we thank for their generous ongoing advice and support.
The accounts encompass the finances of operating and hiring out the Village Hall premises and up to 31st March 2019 also included the running of the Village Hall Bar. However, from 1st April 2019, the bar operation was transferred to a new wholly owned subsidiary, Metfield Village Hall Trading Ltd (see below for more details).
As required by law, the annual accounts are published on the Charity Commission website by 31st January at the latest each year. The accounts for Metfield Village Hall Trading Ltd are lodged with Companies House.
The year to 31 March 2018 was the first full operating year since the reopening of the Village Hall after the major facilities upgrade financed by a grant from the Big Lottery Fund. Total Income during this period was £42,491 while Total Expenditure was £31,064.
This performance is well ahead of that forecast in the business plan on which our Lottery Grant was predicated. This is due to the dedication of the many volunteers who give freely of their time to run the Hall and Hall Bar together with the continuing support of all the hirers of our excellent facilities and particularly the loyal commitment of the residents of Metfield and the surrounding area.
This result means that Metfield Village Hall finances are now on a much more sound footing and the Hall is no longer under a constant financial pressure to survive.
The year to 31 March 2019 was a period of routine hall activities without any grants impacting the financial results. Total income was £30,638 and total expenditure was £30,022, leaving a profit for the year of £616. This compares with a profit of £11,427 in 2017/18, with the difference largely due to the 2017/18 figures including a final portion of lottery grant amounting to £10,097.
Village Hall bar income in 2018/19 amounted to £24,594, down slightly from the previous year’s total of £25,217. Hall bookings were also down in 2018/19 at £4,439 versus £5,425 due to a some of our regular hirer’s ending their commitment. However, in 2019/20 there have been some additional bookings, so this downturn may be reversed in the next financial year.
On the advice of our accountants, effective April 1st 2019, the operation of the Village Hall bar was assigned to a new company, Metfield Village Hall Trading Ltd (MVHTL). The main reason for this is that the Village Hall charity constitution covers the running and hiring of the hall but as the bar is open to the public without having to attend a Village Hall event, the bar function and income was not covered by the charity constitution and consequently bar income could be subject to tax. The new company, Metfield Village Hall Trading Ltd is wholly owned by Metfield Village Hall. Its two directors, Martin Fowler and Steve Jordan, are both trustees of Metfield Village Hall and the single £1 share ownership of MVHTL is held by another trustee, Robert Steven, on behalf of the Village Hall. All the profits generated by Metfield Village Hall Trading Ltd are covenanted to Metfield Village Hall. This sort of arrangement is understood to be common in the charity world covering for example the operation of charities’ shops or cafes attached to museums or art galleries.
As the bar operation is now accounted for separately from the rest of the village hall operation, there is a significant difference in the 2019/20 Village Hall accounts compared with the 2018/19 which included the bar trading accounts. As usual the accounts for the operation of the Village Hall are lodged with the Charities Commission. However, as MVHTL is a limited company, its annual accounts are posted with Companies House.
With the bar income accounted for separately, the Village Hall income in 2019/20 amounted to £11,387 which included £7,829 covenanted from MVHTL. Hall bookings were again down on the previous year, amounting to just £2,874 compared with £4,439 the previous year. Three weeks of booking fees were lost due to the hall having to close in March 2020 due to the corona virus pandemic but the overall downward trend in bookings which was apparent in 2018/19 has continued year-on-year. Village Hall expenditure in 2019/20 was £12,935, contributing to a loss of £1,548 in the financial year, compared to a loss of £616 in 2018/19. Total expenditure in 2018/19 was £30,022 but this included the bar operation which is not included in the 2019/20 results.
Despite being closed for the entire 2020/21 accounting period as a result of the Covid pandemic, the Village Hall made a operating profit of £3,018 thanks to a Covid grant of £10,000 from the local authority. This enabled the Hall to cover ongoing costs for electricity, background heating, and deep cleaning despite not having any booking income. See accompanying report for full details.
The bar operating subsidiary, Metfield Village Hall Trading Ltd also had no income during 2020/21 and consequently made a loss of £988 due to the combination of bar stock wastage and accountancy fees. As a result there were no profits to covenant to the Village Hall. See accompanying accounts.