Shrewsbury House Community Association Limited
Report and Accounts
Year ended 31 March 2021
Company number 2695822 Charity registration number 1011659
Shrewsbury House Community Association Limited Report and accounts Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Report of the Trustees | 2 |
| Independent Examiners report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Cash flow statement | 8 |
| Notes to the financial statements | 9 |
| General income and expenditure account | 14 |
| Catering income and expenditure account | 15 |
Shrewsbury House Community Association Limited Financial Statements Year ended 31 March 2021
Registered charity number 1011659 Company number 2695822 Registered office Bushmoor Crescent Shooters Hill London SE18 3EG Trustees J. Mills - Chair R. Perrott - Treasurer K. Green - Company Secretary R. Belfield A. Brockman J. Macfarlane M. Aiken F. Kemp A. Bralee K Halpin (Appointed Nov 2020) D Martin (Appointed Nov 2020) S Raja (Appointed Nov 2020) Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Accountants and Michael Adamson and Co Independent Examiners 21 The Drive Hullbridge Hockley Essex SS5 6LZ
1
Trustees Report to the members of
Shrewsbury House Community Association Limited
The trustees present their annual report and the financial statements for the period ended 31 March 2021.
The report of the trustees has been prepared in accordance with the Statement of Recommended Practice and Reporting by Charities (SORP FRS102)
Governing documents
The Association is governed by its Memorandum and Articles of Association and is a Charitable Company Limited by Guarantee
Structure, governance and management
The trustees (who form the management committee of the Association) are also directors as defined by the Companies act 1985.
The senior worker (Manager) for the Association during the year was Ms S Maloney.
Trustees are elected annually at the Annual General Meeting from nominations received from affiliated user groups and full members, as defined within the Memorandum and Articles of Association. All new trustees are given an induction meeting with the Manager that includes all policies, financial arrangements, staffing and a tour of the Association’s premises.
The day-to-day management of the Association is by the Manager following policies and procedures agreed by the trustees.
Objects of the charity, principal activities and organisation of our work
The objects of the charity are to promote the benefit of the inhabitants of the Shrewsbury House area and the surrounding neighbourhood in the Royal Borough of Greenwich without distinction of sex, sexual orientation, race or of political, religious or other opinions, in accordance with the local authority's equal opportunities policy, by associating together the said organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the object of improving the conditions of life for the said inhabitants.
The trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit when deciding what activities the charity should undertake.
Vision and mission
"To promote the benefit of the inhabitants of the Shrewsbury House area and the surrounding neighbourhood of the Royal Borough of Greenwich without distinction of sex, sexual orientation, race or of political, religious or other opinions in accordance with the local authority's equal opportunities policy, by associating together the said inhabitants and the local authority, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare, for recreation and leisure time occupation with the object of improving the conditions of life for the said inhabitants."
(Shrewsbury House Community Association Objective)
2
Trustees Report to the members of
Shrewsbury House Community Association Limited Development and achievements this year
The last year was extraordinarily challenging for Shrewsbury House. Lockdowns related to the COVID pandemic resulted in house closures and thereby removed our primary source of income - room hire fees. The impact of the lockdowns was stark, as can be seen from the following data points:
- In the prior financial year (year ending March 2020), room hire income totalled ~£124k, or ~70% o our total income. This year, our room hire fell over 80% from the prior year to just ~£25k. -In addition, income from drinks sales fell from ~£21k in the prior year to a mere ~£0.3k this year.
Fortunately, we received a considerable level of extraordinary assistance via business support grants from the Royal Borough of Greenwich (~£45k) as well as furlough payments from HMRC's Coronavirus Job Retention Scheme (~£54k). This, together with cautious general expenditure, meant that we were able to retain all of our staff despite the huge loss of income from room hire. This leaves us well positioned to again provide a good level of service for our users as we look to emerge from the pandemic.
In this very difficult year, we are very grateful for the continued support from our users, the loyalty and hard work of our staff, and the assistance we have received from both central and local government.
Financial report
Despite the COVID pandemic, Shrewsbury House's financial position remains strong. Last year we comfortably met our financial reserve goal of holding at least 9 months of expenses in cash reserves. This is a marked improvement from 4 years ago, when the Shrewsbury House was in severe financial difficulty, and leaves us well positioned to emerge from COVID pandemic.
We elected to make no changes to our room charge rates for the financial year ending March 2022, reflecting the considerably difficulties faced by our users over the last year. We review our charges annually and will endeavour going forward to minimize pricing increases where possible. Typically, the majority of income Shrewsbury House receives is from room hire charges but we also have secured grant funding from Greenwich Council (£20k per year) for the period 2019-2023.
Going forward, our priority remains on working towards placing Shrewsbury House on a sustainable financial setting for the long term, which will allow the centre to continue to provide a benefit to its users, the local community and its valued employees.
Transactions and financial position
The financial position is set out in the Statement of Financial Affairs on page 6.
Tangible fixed assets for use by the charity
Details of movements in fixed assets are set out in note 9 to the accounts.
3
Trustees Report to the members of
Shrewsbury House Community Association Limited Investment policy and returns
Under the constitution, the charity has the power to make any investment which the trustees see fit. At present, no funds have been invested by the trustees.
Reserves
The charity commission requires charities to determine and explain their policy for free reserves. This has been explained in note 12 to the accounts.
Trustees
The trustees who served during the year are shown on page 1.
Risk management
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions.
The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate any significant risk.
Statement of trustees responsibilities
The trustees are required by law to prepare financial statements for each year which give a true and fair view of the financial activities of the charity and its financial position at the end of the year.
In preparing those financial statements the trustees are required to:
-
select suitable accounting policies and apply them consistantly;
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make judgements and estimates that are reasonable and prudent;
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state whether the policies adopted are in accordance with the Charities Act 2011 and with applicable accounting standards and statements of recommended practice, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to assume the charity will continue in operation
Independent examiner
A resolution proposing Michael Adamson and Co be re-appointed as independent examiners of the charity was put to the governing body.
The report of the trustees has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP FRS102) issued in October 2019
Approval
This report was approved by the trustees and signed on its behalf
on
J. Mills
R. Perrott
4
Shrewsbury House Community Association Limited Independent Examiners report
Report of the Independent Examiners to the Members of Shrewsbury House Community Association Limited
We have examined the financial statements on pages 6 to 15 for the year ended 31 March 2021, which have been prepared under the accounting policies set out on page 9
Respective responsibilities of the trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is our responsibility to:
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examine the accounts under section 145 of the Charities Act,;
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to follow the procedures laid down in the general Directions given by the
-
Charity Commission under section 145(5)(b) of the Charities Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner's report
Our examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, 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 we do not express an audit opinion on the veiw given by the accounts.
Independent examiner's statement
In connection with our examination, no matter has come to our attention which indicate that:
1) accounting records have not been kept in accordance with section 386 of the Companies Act 2006;
-
2) where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements under section 396 of the Companies Act 2006, or are not consistent with the Charities SORP (FRS102)
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3) any matter which the examiner believes should be drawn to the attention of the reader to gain a proper understanding of the accounts.
Michael Adamson and Co Chartered Accountants
21 The Drive Hullbridge Hockley Essex SS5 6LZ
Date :
5
Shrewsbury House Community Association Limited Statement of financial activities for the year ended 31 March 2021
| Note Income and expenditure Incoming resources Income from use of facilities and catering 4 Grants and donations receivable 2 Total incoming resources Resources expended Cost of generating funds Direct charitable expenditure 5 Governance costs 6 Total expenditure Net incoming resources for the year Statement of other recognised gains and losses Net incoming resources before other recognised gains - net movement in funds 7 Total funds brought forward Total funds carried forward Reconciliation of movement of funds Tangible assets Current assets Current liabilities |
Restricted Unrestricted Total funds funds funds 2021 2021 2021 £ £ £ - 26,246 26,246 20,000 100,348 120,348 20,000 126,594 146,594 20,000 108,309 128,309 - 750 750 20,000 109,059 129,059 - 17,535 17,535 - 17,535 17,535 - 119,165 119,165 - 136,700 136,700 - 2,203 2,203 - 142,517 142,517 - (8,020) (8,020) - 136,700 136,700 |
Total funds 2020 £ 154,631 24,835 |
|---|---|---|
| 179,466 | ||
| 153,061 750 |
||
| 153,811 | ||
| 25,655 | ||
| 25,655 93,510 |
||
| 119,165 | ||
| 1,753 129,683 (12,271) |
||
| 119,165 |
The surplus for the year represents the total recognised gains for the period
None of the charity's activities were aquired or discontinued during the current or previous year
The attached notes form part of these accounts
6
Shrewsbury House Community Association Limited Balance Sheet as at 31 March 2021
| Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Net assets Reserves Accumulated fund 12 |
2021 £ 2,203 2,639 139,878 142,517 (8,020) 134,497 136,700 136,700 136,700 |
2020 £ 1,753 6,195 123,488 129,683 (12,271) 117,412 119,165 119,165 119,165 |
2020 £ 1,753 6,195 123,488 129,683 (12,271) 117,412 119,165 119,165 119,165 |
|---|---|---|---|
| 119,165 | |||
| 119,165 | |||
| 119,165 |
The management committee are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with section 476 of the Act. The management committee acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
Approved by the management committee on
and signed on their behalf
J. Mills R. Perrott Trustee Trustee
The attached notes form part of these accounts
7
Shrewsbury House Community Association Limited Cash Flow Statement for the year ended 31 March 2021
| Net cash used in operating activities 15 Cash flows from investing activities Cost of fixed assets Interest received 3 Change in cash and cash equivalents in the period Cash and cash equivalents brought forward Cash at bank and in hand less overdrafts at 31 March Consisting of: Cash at bank and in hand |
Total funds 2021 £ 17,390 (1,000) - 16,390 123,488 139,878 139,878 |
Total funds 2020 £ 39,622 - - |
|---|---|---|
| 39,622 83,866 |
||
| 123,488 | ||
| 123,488 |
The attached notes form part of these accounts
8
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2021
1 Accounting policies
Basis of preparation of accounts
The financial statements have been prepared under the historical cost convention, and are in accordance the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
Incoming resources
Voluntary income and donations are included in incoming resourses when they are receivable, except when the donors specify that they must be used in future accouning periods or donors conditions have not been fulfilled, then income is deferred. The income from fees is recorded gross.
Grants receivable
Grants receivable are recorded on the accruals basis
Resources expended
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Expenditure which is directly attributable to specific activities have been included in these cost categories. Where costs are attributable to more than one activity, they have been apportioned across the cost categories on a basis consistent with the use of these resources.
Stocks
Catering Stock is valued at the lower of cost or net realisable value
Depreciation
Tangible fixed assets are stated at cost less depreciation.
Depreciation is provided on all fixed assets at rates calculated to write off the cost over their useful economic lives as follow:
Furniture and equipment
20% reducing balance basis
Governance costs
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examiner's fees and costs linked to the stretegic management of the charity
Value added tax
Value added tax is not recoverable by the charity, and as such is included in the relevant cost in the Statement of Financial Activities
2 Grants receivable and donations
| General (page 14) | Restricted funds 2021 £ 20,000 20,000 |
Unrestricted funds 2021 £ 100,348 100,348 |
Total 2020 £ 24,835 |
|||
|---|---|---|---|---|---|---|
| 24,835 |
9
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2021
| 3 Investment income General (page 14) Catering (page 15) 4 Income from use of facilities and catering General (page 14) Catering (page 15) 5 Direct charitable expenditure General (page 14) Catering (page 15) 6 Governance costs General (page 14) 7 Net movement in funds for the year The net movement is after charging: Depreciation of tangible fixed assets Independent Examiner's fee |
Restricted funds 2021 £ - - - Restricted funds 2021 £ - - - Restricted funds 2021 £ 20,000 - 20,000 Restricted funds 2021 - - |
Unrestricted funds 2021 £ - - - Unrestricted funds 2021 £ 25,956 290 26,246 Unrestricted funds 2021 £ 107,010 1 299 , 108,309 Unrestricted funds 2021 £ 750 750 2021 £ 550 750 |
Total 2020 £ - - |
|||
|---|---|---|---|---|---|---|
| - | ||||||
| Total 2020 £ 132,683 21,948 |
||||||
| 154,631 | ||||||
| Total 2020 £ 137,456 15 605 , |
||||||
| 153,061 | ||||||
| Total 2020 £ 750 |
||||||
| 750 | ||||||
| 2020 £ 547 750 |
10
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2021
8 Staff costs
No remuneration was paid to trustees. The staff costs of the remaining staff were:
| Wages and salaries Pension costs Social security costs |
2021 £ 92,943 1,730 2,767 97,440 |
2020 £ 91,141 1,698 3,625 |
||
|---|---|---|---|---|
| 96,464 |
The average weekly number of staff employed, calculated as full time equivalents during the year was as follows:
| 2021 2020 FTE FTE Direct charitable work 5 5 Governance costs - - 5 5 9 Tangible fixed assets C t i No employee received remuneration of more than £60,000 Remuneration to key management personnel in the year amounted to £30,948 (2020 : £29,520) a er ng Equipment Equipment Total £ £ £ Cost At 1 April 2020 22,825 5,585 28,410 Additions - 1,000 1,000 At 31 March 2021 22,825 6,585 29,410 Depreciation At 1 April 2020 21,153 5,504 26,657 Charge for the year 334 216 550 At 31 March 2021 21,487 5,720 27,207 Net book value At 31 March 2021 1,338 865 2,203 At 31 March 2020 1,672 81 1,753 10 Debtors 2021 2020 £ £ Trade debtors 2,339 6,195 Other debtors 300 - 2,639 6,195 |
2020 FTE 5 - |
|
|---|---|---|
| 5 | ||
| 29,410 | ||
| 26,657 550 |
||
| 27,207 | ||
| 2,203 | ||
| 1,753 | ||
| 2020 £ 6,195 - |
||
| 6,195 |
11
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2021
11 Creditors : amounts falling due within one year
| 11 Creditors : amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other taxes and social security costs Accruals 12 Accumulated fund |
2021 £ 5,117 1,748 1,155 8,020 |
2020 £ 183 1,432 10,656 |
| 12,271 | ||
| At 1 April 2020 Retained surplus At 31 March 2021 At 1 April 2019 Retained surplus At 31 March 2020 |
Restricted funds 2021 £ - - - Restricted funds 2020 £ - - - |
Unrestricted funds 2021 £ 119,165 17,535 136,700 Unrestricted funds 2020 £ 93,510 25,655 119,165 |
Total funds 2021 £ 119,165 17,535 |
|||
|---|---|---|---|---|---|---|
| 136,700 | ||||||
| Total funds 2020 £ 93,510 25,655 |
||||||
| 119,165 |
Our financial reserve policy is to hold 9 months of expenses in cash. In the opinion of the trustees, 9 months of expenses is a prudent level of reserves to hold, and corresponds to: (a) a minimum of 3 months of expenses to cover costs in the event of a forced (permanent) closure of the centre: (b) an additional 3 months expenses to cover additional unexpected costs; (c) a further buffer of 3 months expenses to cover revenue shortfalls.
Over time we expect Shrewsbury House's cost base to increase as we seek to improve the level of service to users. As this happens, we will increase our cash holdings to reflect the greater cost base. For the latest financial year, 9 months of expenses corresponded to ~£100k, well below the ~£140k we had in cash at year end. However, expenses last year were unusually low (down 8% from prior year) as a result of cost control during the COVID pandemic, and we expect a significant rebound in expenses as the community centre fully reopens and as we continue to invest in our services.
The main risks to us achieving our financials reserves target are:
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A very sharp reduction in our grant from Greenwich council.
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Large and unexpected building maintenance costs.
-
Unexpected closure of the facilities resulting in sharp fall in income.
-
Groups choosing to avoid in person meetings and preferring virtual meeting environments (and so resulting in a loss of room hire income).
-
Existing groups leave the centre and are not replaced by new groups.
-
A change in our lease arrangements with Greenwich council, resulting in the Shrewsbury House Community Association taking on more responsibility for the building.
12
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2021
13 Status
The company, which is a registered charity, is limited by guarantee and has no share capital.
14 Comparative Statement of Financial Activitries
| Notes Restricted 2020 £ Incoming resources Income from use of facilities and catering 4 - Grants and donations receivable 5 24,327 Investment income 3 - Total incoming resources 24,327 Resources expended Cost of generating funds Direct charitable expenditure 5 24,327 Governance costs 6 - Total expenditure 24,327 Statement of other recognised gains and losses Net incoming resources before other recognised gains - net movement in funds 7 - Total funds brought forward - Total funds carried forward - |
Unrestricte 2020 £ 154,631 508 - 155,139 128,734 750 129,484 25,655 93,510 119,165 |
Total 2020 £ 154,631 24,835 - |
|---|---|---|
| 179,466 | ||
| 153,061 750 |
||
| 153,811 | ||
| 25,655 93,510 |
||
| 119,165 |
15 Reconciliation of net movements in funds to net cash flow from operating activities
| Net movement in funds Add back depreciation Less interest received Decrease / (increase) in stock Decrease / (increase) in debtors Increase / (decrease) in creditors Net cash used in operating activities |
2021 2020 £ £ 17,535 25,655 550 438 - - - - 3,556 7,505 (4,251) 6,024 |
|---|---|
| 17,390 39,622 |
13
Shrewsbury House Community Association Limited General Income and Expenditure account for the year ended 31 March 2021
| Income from use of facilities and catering Affiliation fees Room Hire Fundraising income Grants Royal Borough of Greenwich - core funding Royal Borough of Greenwich - business support grants HMRC Job retention support grants Other grants and donations Investment income Catering (page 15) Total income EXPENSES Direct Charitable Expenses Wages, salaries and pension costs Staff training Water rates Light and heat Cleaning Repairs and maintenance Alarm maintenance Insurance Janatorial Telephone and fax Fundraising expenses Stationery, postage and printing Computer and software expenses Bad debts Bookkeeping charges Promotion and website expenses Sundry expenses Bank charges Depreciation Governance costs Independent examiners fees Total expenses Surplus for the year |
2021 £ 1,200 24,756 - 25,956 20,000 45,371 54,292 685 - (1,009) 145,295 97,440 340 1,082 16,991 - 1,567 - 2,166 1,457 3,493 - 469 232 158 450 - 504 327 334 127,010 750 750 127,760 17,535 |
2020 £ 4,725 126,819 1,139 |
|---|---|---|
| 132,683 24,327 - - 508 - 6,343 |
||
| 163,861 | ||
| 95,331 874 1,312 16,049 365 8,381 542 1,859 3,486 1,960 344 2,189 - 2,279 428 345 923 371 418 |
||
| 137,456 | ||
| 750 | ||
| 750 | ||
| 138,206 | ||
| 25,655 |
14
Shrewsbury House Community Association Limited Catering Income and Expenditure account for the year ended 31 March 2021
| Income from use of facilities Bar and Coffee Bar Meals and refreshments Total income Direct Charitable Expenses Cost of sales Purchases Equipment repairs Depreciation Surplus for year |
2021 £ 290 - 290 994 89 216 1,299 (1,009) |
2020 £ 20,997 951 |
|---|---|---|
| 21,948 | ||
| 15,441 144 20 |
||
| 15,605 | ||
| 6,343 |
15