Charity registratlon number 1003108 Company registration number 02588109 (England and Wales) STOCKFIELD COMMUNITY ASSOCIATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
STOCKFIELD COMMUNITY ASSOCIATION LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mrs A J Millward MrA W Baker Ms V Dautovic Mrs R L Fulwell Mrs J Harris-Thomson Mrs E A Leach Mr M J Russell Mr D G Stokes Mrs PA Wagg Charity number 1003108 Company number 02588109 Registered office New Media House Davidson Road Lichfield WS14 9DZ Auditor Haslehursts Limited 88 Hill Village Road Sutton Coldfield West Midlands England B75 5BE
STOCKFIELD COMMUNITY ASSOCIATION CONTENTS Page Trustees, report Independent auditor's report ststement of financial activities Statement ol financial position Statement of cash Ilows 10 Notes lo the financial statements
STOCKFIELD COMMUNITY ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The truslees present their annual report and financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note I to the financial statements and comply with the charily's governing document, Ihe Companies Acl 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their aGcounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Objectives and activities The company is limited by guarantee and is registered as a charity (Registered No 1003108). The company's main aims and principal activities for Ihe year under review was that of providing social housing for rent in the Stockfield area of Birmingham and pursuing the possible development of Communiiy facilities. The Charity has the following objectives-. To promole the benefit of the inhabitants of the area of Stockfield and its neighbourhood in the City of Birmingham without distinction of sex, race or of political, religious or other opinions, by associating together representatives of the said inhabitants and vanous other persons in a common effort to provide facilities in the interest of social welfare for recreation and leisure-time occupation with the object of improving the conditions of lrfe for Ihe said inhabitants. To carry on for the benefit of the community in the City of Birmingham the business of providing social housing and any associated amenities for the persons in necessitous circumstances upon tenns appropriate to their means. To promote any charitable purpose for the benefft of the inhabitants of the area of benefit and in particular the advancement of education and relief of poverty. Strategies for aGhieving aims and objectives Keep under review SeNice Level Agreements with various providers. Maintain contacts with various seryice providers to ensure local government services are up to standard. Woth with various organisations to bring about improvements to, or the establishment of, Community facilities. Continue to invite attendance at Board and other meetings key personnel from Birmingham City Counul, Bromford Housing Group and others. Promote as widely as possible the work of the Association. Public benefit The trustees have paid due regard lo guidance issued by the Charily Commission in deciding what activities the harity should undertake. Achlevements and perfomiance Significant activities and achievements against objectives Establishmenl of the first Community Association of ils type in the UK. In partnership with Birmingham City Council, Bromford Housing and local residents bringing about the physical regeneration of the Stockfield Estate. Provision of 121 social houses for rent. Provision of the Stockfield Community Resour Centre. The Association continued to provide well managed and maintained affordable Social Housing for rent. There have been no long temi voids and 990/0 of all emergency repairs, 98D/o of urgent repairs and 930A of routine repairs were carried out within the response targets sel.
STOCKFIELD COMMUNITY ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review The charity's principal funding source was rent receivable, during the year the charity received rents of £622,789 (2022 - £597,051). A summary of thè Charity's finances is get out in the attached financial statements for the year ended 31 DeGember 2023. ReseNes policy It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level eqL5ivalent to between three and six month's expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. Plans for future periods The trustees review the aims, objectives and activities each year. The review looks at the success of each key activity and the benefits they have brought to the groups of people of whom it was intended. The Trustees have referred to the guidance contsined in the Charity Commission's general guidance on public benefit when reviewing aims and objectives. The Association aims to.. Continue to provide well managed and mainlained affordable Social Housing for renl and to invesl in additional dwellings when funding allows. Implement a central heating upgrade programme to improve efficiency and reduce running costs of heating tenant's homes. Continue to provide a targeted Money Advice Service for its tenants, in conjunction with its Managing Agent, aimed at reducing long term and new arrears and help individuals maximise their income potential. Work with Birmingham City Council, Bromford Housing Group, Laker Building Solutions and other providers to ensure the Stockfield Estate 15 well maintained. Develop and improve the Asso(#ation's Web Site. Community Safety: to continue to build further good relations with the Police. Develop and improve relationships with Birmingham City Council lo work logether to improve local seIS for the benefit of local residents. To organise community events, including the Summer Fun Day, Gardening Competition, Christmas Cracker and a Christmas Event for over 55s. Work will continue to provide a programme of events to utilise grant funding achieved since 2019. Publish Stockfield newsletters quarterly to provide news and information communicating good news about the neighbourhood and encouraging resident participation. Continue to work with FITCAP and local schools to carry out valuable work with the young people of Stockfield, build links with the rest of Ihe community and help raise the aspirations of the young people. Maintain and improve the involvement in local affairs of local residents and partner organisations serving stockfield. Investigate strategies for the provision of community facilities for the benefit of Stockfield residents. Seek grant funding to enable innovative projects to be undertaken for the benefit of the community. The Association wishes to thank all those individuals, Community Groups, local schools and Churches and Public and Private sector undertakings which have assisted the endeavours of Ihe Charity during this and previous years. Structure, govemance and management The organisation is a charitable company limited by guarantee, incorporated 19 February 1991 as amended by special re501utions dated 1 July 1994, 16 October 1998, 19 March 1999, 18 June 2001. 27 July 2001, 24 March 2006 and 26 April 2013. The company was established under a Memorandum and Articles of Association, which imposes restrictions on the scope of the Charity's operations. The activities of the Charity are limited to those related to the regeneration of its area of benefit and the promotion of the benefit of the inhabitants of ils area of benefit. The Memorandum of Association provides that the Charity has the power lo invesl money not inmediately required for the Charity's objects in such investments, securities or property as may be thoughl fit by the company. The Gompany is govemed under its Articles ofAssociation. In the event of the company being wound up, members are required lo contribute an amount not exceeding £1.00.
STOCKFIELD COMMUNITY ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees, who are also the directors for the purpose of company law, and who served during Ihe year and up lo the date of signature of the financial statements were.. MrsA J Millward MrA W Baker Ms V Dautovic Mrs R L Fulwell Mrs J Harris-Thomson Mrs E A Leach Mr M J Russell Mr D G Stokes Mrs P A Wagg ReGruitment and appointment of trustees The Board of Directors of the Charity consists of 2 Directors nominated by Bromford Housing Group, 2 Independent Directors, 2 nominees of Bimiingham City Council, and 6 locally elected resident Directors. The Directors of the company are also charity Trustees for the purpose of charity law and under the company's Articles of Association the Local members of the Board are elected by ballot of the Residents of the benefit area to serve foi a period of 3 years, after which they must be re-eleded al the next eleclion. Elections are nomially held every three years. When vacancies arise for Local tnembers, residents of the benefit area can be co-opted to the Board until the next election takes place. Nominated Directors are appointed and removed by the relevant organisations. The Board appoints the independent Directors by invitation. Organisational stnjcture The Board of Trustees meet at least 10 times per annum. The general control and management of the administration of the Charity is undertaken by the Board of Trustees. The Board is significantly comprised of democratically elected Ico-opted representatives of the local community, and are half of the Board members. Further Trustees are nominated by Birmingham City Council 12) Bromford Housing Group (2) and there are bNO independent Trustees. Within those twelve Trustees are the Chair and the Secretary. The Charity received Housing Management Services from Bromford Housing Group and Repairs and Ground Maintenance Semces from Citizen HaL¢sing Group Limited, pursuant to contractual arrangements. Laker Building Solutions were appointed to replace Citizen Housing Group with effecl from 1 July 2023. Leon Stephens of Brookes Stephens Chartered ArKountants is the Independent Accountant to the Charity. Legal Services are provided by Anthony Collins Solicitors. Induction and training of tnistees Tnjstees are given a full induction to the organisalion by Anthony Collins Solicitors, other Directors and the ¢ompany'5 advisers. They are made aware of the Mission and Vision Statemenls and Ihe current Business Plan of the organisation and their expected role and responsibilities in relation lo thi5 and to the requirements of the Charity Commission. Local residents may attend Board Meetings on an observer basis prior to offering themselves for election. Relationship M-th related parties The Charity has a subsidiary company, Stockfield Community Association (Subsidiary) Limited which 15 a non- charitable company limited by guarantee not having a share capital, whose business is mainly to procure the building of houses which are sold by their developers for profit. To date the SLSbsidiary has restrided its activities to.. Buying redevelopment land from Birmingham City Council; Allowing developers, under DevelopmentAgreements to build houses on land., Disposing of such houses to owner-occupiers. Colleding Ground Rents from under leasehold owner occupiers. The Subsidiary is a wholly owned subsidiary ofthe Charity.
STOCKFIELD COMMUNITY ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Statement of trustees. responsibilities The trustees, who are also the directors of Slockfield Community Association for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in acKordance with applicable Saw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Ac¢ounling Praclice). Company Law requires the trustees to preparè financial statements for each financial year which give a true and fair view of the stste 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 statemenls, the trustees are required lo: select suitable accounling policies and then apply them Consistently., observe the methods and principles in the Charilies SORP., make judgements and estimates that are reasonable and prudent.. and prepare the finanaal statements on the going concern basis unless il 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 lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charily and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Haslehursts Limited were appointed as auditor to the company and a resolution proposing that Ihey be re-appointed will be put at a General Meeting. The trustees, report was approved by Ihe Board of Trustees. Mrs A J Millward Trustee Date..
STOCKFIELD COMMUNITY ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF STOCKFIELD COMMUNITY ASSOCIATION Opinion We have audited the financial statements of Stockfield Community Association {the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes lo the financial statements, including significant accounting pOIleS. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slatements.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Generally ACpted Accounting Practi., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit ol the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of Ihe financial slatemenls in the UK, including the FRC'S Elhical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded thal the tTU51ees' use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have nol identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to conlinue a5 a going oncern for a period of at least bNelve nionths from when the financial statements are aulhorised for issue. Our responsibililies and the responsibilities of the trustees with respecl to going concern are described in the relevant sections of this report. Other infomiation The other information comprises the informalion included in the annual report olher than the finar181 statements and our auditols report thereon. The trustees are responsible for the olher informalion Gontained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is malerially inconsistenl with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whelher this gives rise to a material misstatement in the financial slatements themselves. If. based on the work we have performed, we conclude that Ihere is a material misstatement of this other infomation, we are required to report Ihat facl. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Report5) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial slatements is inconsistent in any material respect with the Irustees, report., or sufficient accounting record5 have not been kept,. or the financial statements are not in agreement wilh Ihe accounting records., or we have not received all the infomiation and explanalions we require for our audit.
STOCKFIELD COMMUNITY ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF STOCKFIELD COMMUNITY ASSOCIATION Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees, who are also the direclors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statÉments that are free from materi21 misstatement, whether due to fraud or Èrror. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, malters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidale the charitable company or lo cease operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the financial ststements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditovs report that indudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The exlenl to which our procedures are Gapable of detecting irregularities, including fraud, is detailed below. We obtained an understanding of the company's legal and regulatory framework and the industry in which it operates. We considered Ihe risk of acts by the company that might have contravened applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk, recognising that the risk of not detecling a material misstatement due lo fraud is higher than the risk of not detecting one reStIng from error, as fraud may involve deliberate concealment by way of forgery, intentional representations or through collusion. We focussed on laws and regulations which could give rise lo a material misstatement in the finanaal 5talements, including, but not limiled to Ihe Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting doc'Jmentation, enquiries with management and third party company representatives. There are inherent limitations in the audit procedures described above and, the fijrther removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relaling to irregularities. including fraud. As in all our audÈts, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the direclors that represented a risk of material misstatement due to fraud. A further description of our responsibilities is available on the Financial Reporting Council's website at- https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditols report. Use of our report This report is made solely to the charity's trustees, a5 a body, in accordanoe with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an audilorfs report and for no other purpose. To the fullesl exient permitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audil work, for this report, or for the opinions we have formed.
STOCKFIELD COMMUNITY ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF STOCKFIELD COMMUNITY ASSOCIATION Stuart Penfold (Senior Statutory Auditor) for and on behalf of Haslehursts Limited 2E.Ic.ZJL Chartered Accountants Statutory Auditor 88 Hill Willage Road Sutton Coldfield West Midlands England B75 5BE
STOCKFIELD COMMUNITY ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Unrestricted funds funds 2023 Restricted funds 2022 Totsl 2022 2022 Notes Income from: Donations and legacies Charilable activilies Investments 14,387 692,659 138,201 30,717 655,832 112,587 30,717 655,832 112,587 Total income 845,247 799,136 799,136 Expenditure on: Charitable activities 607,040 728,851 728,851 Total expenditure 607,040 728,851 728,851 Nel gainsl(losses) on investments 12 180,378 {533,395) 1533.395) Net incomel{expenditure} 418,585 (463,110) {463.110} Transfers beeen funds 13,039 (13,039) Net movement in funds 418,585 (450,071) {13,039) {463,110) Reconciliation of funds: Fund balances at 1 January 2023 4,698,574 5,148,645 13,039 5,161,684 Fund balances at 31 December 2023 5,117,159 4,698.574 4,698,574 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from conlinuing activities.
STOCKFIELD COMMUNITY ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 2023 2022 Notss Fixed assets Tangible assets 14 59,555 Current assets Deblors Investments Cash at bank and in hand 16 17 244,785 4,777,579 316,946 235,149 4,414,975 157,608 5,339,310 4,807,732 Creditors: amounts falling due within one year 18 (222,1511 (168,713) Net current assets 5,117,159 4,639,019 Total assets less current liabilities 5,117,159 4,698,574 The funds of the charity Unrestricted funds 19 5,117,159 4,698,574 5,117,159 4,698,574 The company is entitled to the exemption from the audit requirement contsined in section 477 of the Companies Act 2006, for the year ended 31 December 2023, although an audit has been caThied out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 wilh respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements ofthe Companies Acl 2006, for the year in question in accordance with section 476. These financial stalements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financSal stalements were approved by ihe tru51ees on . MrsAJ Millward Trustee Company registration number 02588109 (England and Wales)
STOCKFIELD COMMUNITY ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations 21 203,363 179,597 Investing activities Purchase of investments Investment income received {182,226) 138,201 {313,273) 112,587 Net cash used in investing activities (44,025) (200,686) Net cash used in financing activities Net increasel{de¢rease) in cash and cash equivalents 159,338 (21.089) Cash and cash equivalents at beginning of year 157,608 178,697 Cash and cash equivalents at end of year 316.946 157,608 10
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policles Charity information stockfield Community Association is a private company limited by guarantee incorporated in England and Wales. The registered office is New Media House, Davidson Road, Lichfield, WS14 9D2. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's governing document, Ihe Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102.) and the Charities SORP "Accounting and Reporting by Charities- Ststement 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)" (effeclive 1 January 2019). The charily is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of Ihe chaiity. Monetsry amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost oonvenlion. The principal accounling policies adopted are set out below. 1.2 Going concern 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 truslees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds represent funds which are expendable at the discretion of the Trustees in the furtherance ol the objectives of the charFty. Such funds may be held in order to finance both working and capital investment. Designated funds are charitable donations with the stipulation that they be used for a specific purpose. Restricted funds represenl grants, donalions and legacies received which are allocated by the donor for specific purposes. 1.4 Income Income is recognised when the charity is legally entitled to it atter any performance condilions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the lime of the donation. Legacies are re¢ognised on receipt or otheiSe if the chariiy has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as contingent asset. 11
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (Continued) 1.5 Expenditure Expendilure is recognised once there is a legal or conslructive 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 2mount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are madè up of the total of dIrt costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributable to a single actimty are allocated directty to that activity. Shared costs which conlribute to more than one activily and support costs which are not attributable to a single activity are apportioned belmeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and deprecialion charges are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any irnpairment 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.. Leasehold land and buildings 4Dk straighl line on cost The gain or loss arising on the disposal of an asset is determined as the difference beeen the sale proceeds and the carying value of the asset, and is recognised in Ihe statement of financial activities. 1.7 Impaim)ent of fixed assets At each reporting end date, the charity reviews the carrying amounts of ils tangible assels to determine whether there is any indication that those assets ha'ie suffered an impaimienl loss. If any such indication exists, Ihe recoverable amount of the asset is estimated in order to detemiine the extent of the impairment loss (if any). 1.8 Cash and cash equivalents Cash and cash equivalenls 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 liabililies. 1.9 Financial instruments The charity has elected to apply the provisions of Seclion 11 'Basic Financial Instruments, and Section 12 'other Financial Instruments Issues, of FRS 102 to all of its financial instrument5. Financial instruments are recognised in the ¢haritls balance sheet when the charily becomes party to the contraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statement5, 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. Baslc financial assets Basic financial assets, which indude debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequenlly carried at amortised cost using the effective interest method unless the arrangement constitutes a financing Iransa¢tion, where the transaclion is measured at Ihe present value of Ihe future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 12-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policles Icontinued) Basic financlal liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debl instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilrties 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 SeiceS that have been acquired in Ihe 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 al amortised cost using the effective inlerest melhod. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligalions expire or are discharged or cancelled. Critical accounting estimates and judgements 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 Dn historical experience and other factors that are considered to be relevant. Actual results rnay differ from Ihese estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the eslimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affecls both currenl and future periods. Depreciation and residual value5 The Trustees have reviewed the asset lives and associated residual values of all fixed asset calculations and has concluded that assel lives and residual values are appropriate. Income from donations and legacies Unrestrlcted funds 2023 Unrestricted funds 2022 Donations and gifts 14,387 30,717 13-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charitable activities Unrestrlcted funds 2023 Unrestricted funds 2022 Social Housing Rents Social housing rents receivable Performance related grants other income 622,789 69,141 729 597,051 58,781 692,659 655,832 Income from investments Unrestricted Unrestricted funds funds 2023 2022 Interest and dividends receivable 138,201 112,587 14-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Expenditu on charitsble activities Provision of Provision of services services 2023 2022 Direct costs Depreciation and impairment Management and maintenance Major repairs Disability adaptalions Insuran Ground rent Donations Investment fvnd fees Support to youth adivilies Resource centre Events Granl expenditure Consultancy services Downsizing incentive 59,555 158,790 97,319 239,124 182,947 67,556 9.602 13.724 300 1,440 34,943 14,423 18,464 300 1,050 34,348 31,135 il 12,430 26,261 69,141 32,744 8,029 19,378 58,341 21,720 1,500 541,537 673,027 Share of support and governance costs (see note 8) Govemance 65,503 55,824 607,040 728,851 Analysis by fund Unrestricted funds 607,040 728,851 Support costs allocated to activities 2023 2022 Governance costs 65.503 55,824 Analysed beiween: Provision of services 65,503 55,824 15-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs allocated to activities (Continued) 2023 2022 Governance costs comprise: Audit fees Legal and professional Insuiance Bank charges Administration services Financial seNices 16,064 4,764 3,101 654 120 27,646 19,539 120 28.362 20,957 65,503 55,824 Net movement in funds 2023 2022 The net movement in funds is stated after chargingl(crediting)'. Fees payable for the audit of the Charity's financial slatements Depreciation of owned langible fixed assets 16,064 59,555 4,764 239,124 10 Trustees None of the Irustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. 11 Employees The average monthly number of employees during Ihe year was= 2023 Number 2022 Number Total There were no employees whose annual remuneration was more than £60,000. 12 Galns and losses on Investments Unrestricted Unrestrictsd funds funds 2023 2022 Gainsl(losses) arising on= Revaluation of investments 180,378 {533,395) 13 Taxatlon The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 16-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Tangible fixed assets Leas&hold land and buildings Cost At 1 January 2023 5,986,492 At 31 December 2023 5,986,492 Depreciation and impairment At 1 January 2023 Depreciation tharged in the year 5,926,937 59,555 At 31 December 2023 5,986,492 Carrying amount At 31 December 2022 59,555 The leasehold properties have an insured value of £18,879,000. 15 Financial instruments 2023 2022 Carrying amount of financial assets Inslruments measured at fair value Ihrough profit or loss 4,777,579 4,414,975 16 Debtors 2023 2022 Amounts falling due within one year: Trade debtors Amounts owed by fellow group undertakings Prepayments and aG¢rued income 197,143 12,624 35,018 170,583 29,737 34,829 244,785 235,149 17 Current asset investments 2023 2022 Unlisted investments 4,777,579 4,414,975 17-
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Creditors: amounts falling due within one year 2023 2022 Accruals and deferred income 222,151 168.713 19 Unrestricted funds The unrestricted funds of the chariiy comprise the unexpended balances of donations and granls which are not subject to specific conditions by donors and granlors as to how they may be used. These include designated funds which have been set aside out of unreslricted funds by the Irustees for specific purposes. At 1 January 2023 Incoming resources Resources expended Transfers Gains and losses At31 December 2023 General reserves Major repairs sinking fund Unrealised gains Cyclical maintenance Disability adaptations Community facility 1,083.960 845,247 (607,0401 (238,207) 1,083,960 3,066,975 208,207 3,275,182 255,350 180,378 435,728 227.289 30.000 257,289 15,000 15,000 50,000 50,000 4,698,574 845,247 (607,040) 180,378 5,117,159 Previous year: At 1 January 2022 Incoming Resources resources expended Transfers Gains and losses At31 December 2022 General funds 5,148,645 799,136 (728,851 } 13,039 (533.395) 4.698,574 20 Related party transactions Transactions with related parties During the year the charity entered into the following transactions with related parties.. During the year the company received donations of £14,387 {2022 - £30,717) from its subsidiary undertaking, Stockfield Communily Association {Subsidiary) Limited. At the year end, the charity was owed £12,624 (2022 - £29,737) from its subsidiary undertaking. 18
STOCKFIELD COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Relatsd party transactions Icontinued) Birmingham City Council has the right to appoint 2 Directors and has provided norFrepayable grants of £3,584,774. Bromford Housing Group also has the right to appoint 2 Directors. During the year, Bromford Housing Group, acting as agents, paid rents to the company amounting to £622,789 (2022 £597,051) and received management charges of £56,304 (2022 - £55,881) from the company. At 31 December 2023, £166,162 12022 - £155,325) was due lo the company from Bromford Housing Group. 21 Cash generated from operations 2023 2022 Surplusl{deficÈt) for the year 418,585 (463,110) Adjuslmenls for.. Investmenl income recognised in statement of financial activities Fair value gains and losses on investments Depreciation and impairment of tangible fixed assets (138,201) {180,378) 59,555 (112,587) 533,395 239,124 Movements in working capital= (Increase) in debtors Increase in credilors (9,636) 53,438 (82,3931 65.168 Cash generated from operations 203,363 179,597 22 Analysis of changes in net funds The charily had no material debt during the year. 19-