Community Centre - More Detailed information

Ettington Community Trust
registered charity (number 1080602)
INFORMATION SHEET
for Committee Members

Advisory bodies recommend that Committee members are given clear guidance on their duties and obligations.

Background

Ettington Community Centre was built in 2002-2003. [See press release for the full story.]

The Trust is a different body from Ettington Village Hall Trust, which owns the old village hall. Ettington Community Trust is registered with the Charities Commission, which regulates the activities of all registered charities, and which requires annual returns, accounts and other information. This information is shown on the Charities Commission Website.

Trust Deed

The Declaration of Trust ("Trust Deed") is a statement of the objects (i.e. aims) and powers of the Charity, which are broadly defined to allow plenty of scope for activities. It is also the constitution which defines how the organisation operates, how meetings are conducted and how decisions are made.

It says that there should be two nominees from Ettington Parish Council (but not a majority) because the project was sponsored by the Parish Council which in effect "delegated" the running of the Hall to the Trust. You should have a copy of the Trust Deed. If not, please ask the Secretary of the Trust.

The Lease

The freehold to the site of the building (and surrounding amenity area) is owned by the Parish Council. There is a Lease for 99 years from Ettington Parish Council to the Trust of the building and a surrounding area of grounds at a peppercorn rent (i.e free) with restrictions to ensure that the Council can have some control over the use of the building.

There is a separate Lease to the Parish Council for 50 years of the sports playing fields donated by the Hutsby family.

Structure of the Trust

There are several tiers of the Trust. This may seem complex, even bureaucratic, but there are good legal or practical reasons for this, which is commonplace in similar bodies all over the UK.

Custodian Trustee

The Custodian Trustee is Ettington Parish Council. The Hall is vested in (i.e held legally in the name of) the Custodian Trustee simply to hold the legal title of the Charity's property and to act on the lawful directions of the Trustees.

Managing Trustees

The Trustees at the time of completion of the building were :-

Chairman - Liz Lyall (Home - 740566) Secretary/Solicitor - Patrick Jaggard (Home-748014) Jonathan Allen Steve Kendrick

The Trustees can (and have) changed from time to time to reflect changes in personal or other circumstances. This requires a formal "Deed of Variation".

Responsibilities of Trustees

There is a large volume of trust and charity law and regulation of the activities of charitable trustees, who have an overriding duty to act in the best interests of the Charity and have fiduciary (i.e financial) and other duties. Guidance booklets have been distributed to the Trustees. {If in doubt, please ask the Secretary to the Trust.}

The Charity Trustees delegate responsibility to the members of the Management Committee for day-to-day management, in accordance with the governing instrument (i.e the Trust Deed), but the Trustees must remain involved and aware of activities, finances and compliance with the law because the Trustees may in extreme situations be personally liable if they act or allow negligent or fraudulent actions.

Management Committee

Committee composition and meetings

The Committee should be at least 9 people consisting of

2 elected members from the Parish Council (if feasible-not compulsory)
5 appointed members (at least) i.e user group reps
2 co-opted members

Elected members are elected, and all members need to be re-elected, at each Annual General Meeting. The Committee can "co-opt" other members as the Committee sees fit at any meeting of the full Committee. A meeting is quorate with the greater of 3 members or one-third of the members being present. {A full list of Committee members can be provided by the Committee (not Trust) Secretary.}

The Committee has been sub-divided into two separate groups (PR/marketing and Finance) to make executive action more workable. The sub-groups meet more regularly at the moment than the main Committee (which must meet at least 3 times a year including the AGM). This may change after the initial launch as the use of the building settles into a regular pattern. This local involvement and enthusiasm is essential to the running of the Hall and the Trustees very much appreciate this. It is equally important that the Trustees and the Committee communicate and work together, and that each are represented at the other's meetings.

Committee Contacts :-

Chairman - Robert Bradshaw (Home - 740630)
Treasurer - Rob Surgenor (Home - 740730)
Secretary - David Martin (Home - 748236)
Bookings Secretary - Katherine Batchelor (Home - 740096)

{There are approximately 8,500 community buildings in England, (the majority of which are managed in this way).} Committee members must manage the building with all reasonable due care and attention, in the same way that they would manage their own affairs, but are not personally liable for their activities.

Committee Members are expected to attend meetings regularly and to have a full knowledge of how the Committee is run, the financial situation, what decisions are being made and why, personal circumstances permitting, although it is recognised that voluntary activity cannot be taken for granted in successfully managing a vital village asset.

The Trust Deed provides for some Committee members to be nominated by village organisations/clubs/societies or groups to represent their particular interests, and they are, of course, entitled to put their organisation's views, but if there is a clash or conflict must make decisions in the best interests of the Charity. Although a substitute may attend meetings in your place to listen they cannot vote on any matter. {There are a number of these special interest groups in the village which have "carried over" from the old Village Hall}.

At their first Committee meeting, new members should sign in the Minutes that they have read the Trust Deed and understand and accept their responsibilities, and Trustees also complete a "disqualification declaration".

Playing Fields Committee

Also, the all-weather court near the Community Centre is managed separately by the Playing Fields Committee (chaired by Denis Wyatt - 740567). This was financed and built with Sports Lottery grant and fund-raising prior to the building of the Hall.

Village Hall Rules

Outside the formal constitution, the Committee can set Rules for the day-to-day use, safety, security and running of activities in the building. These will be displayed publicly in the building and may be changed from time to time to adapt to circumstances.

Alcohol

There are special rules about the use and sale of alcohol in charity property as well as the licensing laws regulating its use in public buildings. Trustees can be personally liable in criminal law for breaches, and it is essential therefore that Committee members are aware of, and ensure compliance with, the general requirements, such as by displaying public notices in the building, liasing with a licensee publican and by supervision, particularly in the sale of alcohol as distinct from its use as part of the Hall's core activities. This is not Quaker- like prurience on the part of the Trustees : it is the Law !!!! {The Committee Chairman will be familiar with the detailed legal requirements and should remind the Committee regularly.}

Employees

The Trust employs a cleaner, and may require a manager/caretaker in time.

Funding/finances

The capital funding to build the Hall came from several sources : the majority came from the existing Village Hall Trust and the developers of The Chestnuts housing estate, and the remainder from a loan to Ettington Parish Council from the Public Works Loan Board secured against future village precept revenues and mandated (i.e given not loaned) to the Trust. The Trust has resolved to refund funds to enable this loan to be fully or partly repaid when the existing Village Hall site has been sold (which is a complex process) if the Trust receives the benefit of this sale. The loan was required to bridge the time interval between the building of the new Hall and the sale of the old one.

Revenue funding is clearly critical to the management of the Hall. Main sources of revenue (income) funding are:

(a) Income from hiring / bookings, including regular groups/societies/clubs, amateur dramatics, concerts, parties, dances, functions, events, training courses, conferences, meetings, sporting activities, depending on demand (details of hiring policy are mentioned below).

NB: advice from ACRE (see below) is that this revenue should cover running costs, and that fund-raising should be regarded as a reserve against future requirements.

Hiring charges

A list of hiring charges is available from the Bookings or Committee Secretary and displayed prominently in the building. Special discretionary rates may apply in particular or unusual circumstances. Also, the all-weather court is hired separately from the Playing Fields Committee for football, tennis, basketball and other suitable sports. Different hiring rates apply. (contact Denis Wyatt ? tel 740567).

(b) Fund-raising events e.g open days, fetes, quizzes, raffles, coffee mornings etc.

(c) "Commercial letting". The Hall has planning permission for the use of the upper floor as teleworking office units (which proved successful at Priors Marston Village Hall) and a residential flat. An application has been made to the Community Fund (formerly National Lottery Charities Board) Birmingham Regional Office for a grant to finance this. We have guidance from ACRE (see below) on this. Advice is also awaited from Peter Clarke & Co in Stratford on the potential ways to exploit the revenue raising capability of the upper floor. There are tax implications however if the use is "profit-making" (see below).

The Trust has determined that it must be run as a free-standing viable organisation, without on-going Parish Council financial support.

Hiring Agreement

There is a standard form of hire agreement, which can be adapted to the general nature of the user activity e.g specific events or regular clubs. This should be properly executed (i.e signed & witnessed) by the hirer in advance of the booking, and kept by the Committee or Bookings Secretary.

"Business" use

As a charity, the Trust is a non-profit making body, and therefore its activities must be limited to those permissible under its lawful objects. Charitable status also brings certain tax advantages, such as some exemptions from vat. VAT is a complex tax, and great care needs to be taken in complying with the rules.

"Profit-making" or "business" activities are not always easily defined. There are precedents, but it depends on interpretation. The Trust must take great care to ensure that it does not threaten either its charitable status or its tax privileges by excessive commercial activity. "Business" use for no more than 10% of the time it is available for use is permitted - with prior written consent from HM Customs & Excise- (and 4 or 5 ?? events per annum for liquor licensing purposes ) or in the percentage of the available floor space or number of people using it for business use (no more than 10 %). The Trustees took detailed accountants' advice on this issue, and a ruling from HM Customs & Excise, prior to construction.

The proposed uses for the upper floor of the building (see above) must comply with these Rules. Therefore, if teleworking is regarded as a "business use", which is debateable depending upon the users and the rent, it would seem that the area planned for such use would exceed the limits, and vat would be chargeable on the building costs, and perhaps on the rent. The Trustees would need to explore this. We must not in any event prejudice the vat exemption on the capital building costs already incurred.

NB: Legal advice may be required, and the Committee must liase closely with the Trustees where any apparent or possible "business" activity is proposed i.e anything outside the usual core activities.

Licences

The uses of the building requires certain public licences, such as Public Entertainment Licence and liquor licences.

NB: obtaining other licences which may be required for activities in the Hall is the responsibility of the person/group hiring the hall for the activity. This is one of several reasons for having the Hiring Agreement (see above).

Insurance

The building and contents are insured with Allianz Cornhill (through brokers Aon Ltd) Sum Insured £720,000, contents £30,000 against all the usual risks, public liability, employers liability (which must be displayed publicly in the building) (and to include hirer's liability - check ????????). This was difficult, and expensive, to obtain in the prevalent insurance market at the time. Obtaining and funding renewal cover each year may become an issue.

Vandalism was a particular problem during the construction process, and adequate security and vigilance is therefore important.

The Committee should have measures in place to ensure so far as it can that the security of the building is adequate, and that insurance cover is not invalidated by failure to manage the risks effectively. This is one of the key reasons for having the Hiring Agreement (see above).

Regular Activities and User Groups

The Committee or Bookings Secretary will have a list of the groups/clubs/societies/teams (and their contact points) using the Hall and the activities which take place regularly, and this may be displayed publicly in the building and on the Village Website. The Committee should also have, and review annually, a policy about use & bookings.

Repairs and Maintenance

Because the building is new, major repairs and maintenance should not be required for some time. Minor items may arise. In the first 12 months maintenance period, (as is usual) snagging defects in the building are to be corrected by the contractors Buxton Ltd, and the Trust holds a retention fund as security for this.

The Committee member responsible for maintenance is a qualified engineer Jon Yarrow (Home: 740042).

Sources of advice and support Links / Publications

Ettington Village Web Site www.ettingtonvillage.co.uk
Charities Commission Web Site www.charity-commission.gov.uk