Shrewsbury House Community Association Limited
Report and Accounts
Year ended 31 March 2022
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 2022
Registered charity number 1011659 Company number 2695822 Registered office Bushmoor Crescent Shooters Hill London SE18 3EG Trustees J. Mills - Chair R. Perrott - Treasurer G Sheath - Company Secretary (appointed March 2022) R. Belfield A. Brockman J. Macfarlane F. Kemp A. Bralee K Halpin S Raja D Martin (appointed March 2022) M. Aiken (resigned March 2022) K. Green (resigned March 2022)
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 2022.
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
Last year remained very challenging for Shrewsbury House as disruption linked to the COVID pandemic continued to affect our operations. Income recovered from the prior year (when the house was shut due to lockdowns for much of the financial year), but remained at lower levels than pre-pandemic. This can be seen from the following data points:
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-In the financial year prior to COVID (year ending March 2020), room hire income totaled ~£127k, or ~70% of our total income. This year, our room hire totaled ~£85k i.e. remains depressed despite recovering sharply year on year.
-
-In the financial year prior to COVID (year ending March 2020), drinks sales totaled ~£21k. This year, our drinks sales totaled ~£18k.
Fortunately, we received a considerable level of extraordinary assistance via business support grants from the Royal Borough of Greenwich (~£59k) as well as furlough payments from HMRC's Coronavirus Job Retention Scheme (~£15k). This, together with cautious general expenditure, meant that we were able to continue to maintain a strong financial position. This leaves us well positioned to provide a good level of service for our users as we fully 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 sustained impact of COVID pandemic, Shrewsbury House's financial position remains strong. Last year we again met our financial reserve goal of holding at least 9 months of expenses in cash reserves. This is a marked improvement from 5 years ago, when Shrewsbury House was in severe financial difficulty, and leaves us well positioned to emerge from COVID pandemic.
During the COVID crisis we aimed to minimize changes to our room rate charges, reflecting the considerably difficulties faced by our users over the last two years. We review our charges annually and will endeavour going forward to minimize pricing increases where possible. However, clearly surging inflationary pressures - particularly in energy - will likely require us to adjust our room charges rates more significantly that we have done in the recent past. 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:
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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 2022, 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:
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1) accounting records have not been kept in accordance with section 386 of the Companies Act 2006;
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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 2022
| 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 / (outgoing) 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 2022 2022 2022 £ £ £ - 107,490 107,490 58,700 37,517 96,217 58,700 145,007 203,707 25,025 146,019 171,044 - 750 750 25,025 146,769 171,794 33,675 (1,762) 31,913 33,675 (1,762) 31,913 - 136,700 136,700 33,675 134,938 168,613 - 4,206 4,206 33,675 136,773 170,448 - (6,041) (6,041) 33,675 134,938 168,613 |
Total funds 2021 £ 26,246 120,348 |
|---|---|---|
| 146,594 | ||
| 128,309 750 |
||
| 129,059 | ||
| 17,535 | ||
| 17,535 119,165 |
||
| 136,700 | ||
| 2,203 142,517 (8,020) |
||
| 136,700 |
The surplus/ (deficit) 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 2022
| 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 |
2022 £ 4,206 2,899 167,549 170,448 (6,041) 164,407 168,613 168,613 168,613 |
2021 £ 2,203 2,639 139,878 142,517 (8,020) 134,497 136,700 136,700 136,700 |
2021 £ 2,203 2,639 139,878 142,517 (8,020) 134,497 136,700 136,700 136,700 |
|---|---|---|---|
| 136,700 | |||
| 136,700 | |||
| 136,700 |
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 Trustee
R. Perrott Trustee
The attached notes form part of these accounts.
7
Shrewsbury House Community Association Limited Cash Flow Statement for the year ended 31 March 2022
| 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 2022 £ 30,737 (3,066) - 27,671 139,878 167,549 167,549 |
Total funds 2021 £ 17,390 (1,000) - |
|---|---|---|
| 16,390 123,488 |
||
| 139,878 | ||
| 139,878 |
The attached notes form part of these accounts
8
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2022
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 2022 £ 58,700 58,700 |
Unrestricted funds 2022 £ 37,517 37,517 |
Total 2021 £ 120,348 |
|||
|---|---|---|---|---|---|---|
| 120,348 |
9
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2022
| 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 2022 £ - - - Restricted funds 2022 £ - - - Restricted funds 2022 £ 25,025 - 25,025 Restricted funds 2022 - - |
Unrestricted funds 2022 £ - - - Unrestricted funds 2022 £ 87,377 20,113 107,490 Unrestricted funds 2022 £ 132,232 13 787 , 146,019 Unrestricted funds 2022 £ 750 750 2022 £ 1,063 750 |
Total 2021 £ - - |
|||
|---|---|---|---|---|---|---|
| - | ||||||
| Total 2021 £ 25,956 290 |
||||||
| 26,246 | ||||||
| Total 2021 £ 127,010 1 299 , |
||||||
| 128,309 | ||||||
| Total 2021 £ 750 |
||||||
| 750 | ||||||
| 2021 £ 550 750 |
10
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2022
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 |
2022 £ 106,622 1,829 3,300 111,751 |
2021 £ 92,943 1,730 2,767 |
||
|---|---|---|---|---|
| 97,440 |
The average weekly number of staff employed, calculated as full time equivalents during the year was as follows:
| Direct charitable work Governance costs |
2022 FTE 5 - 5 |
2021 FTE 5 - |
||
|---|---|---|---|---|
| 5 |
No employee received remuneration of more than £60,000
Remuneration to key management personnel in the year amounted to £30,711 (2021 : £30,948)
9 Tangible fixed assets
| Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 10 Debtors |
Equipment £ 22,825 3,066 25,891 21,487 890 22,377 3,514 1,338 |
C t i a er ng Equipment £ 6,585 - 6,585 5,720 173 5,893 692 865 |
Total £ 29,410 3,066 |
|---|---|---|---|
| 32,476 | |||
| 27,207 1,063 |
|||
| 28,270 | |||
| 4,206 | |||
| 2,203 | |||
| Trade debtors Other debtors |
2022 £ 2,866 33 2,899 |
2021 £ 2,339 300 |
|---|---|---|
| 2,639 |
11
Shrewsbury House Community Association Limited Notes to the Accounts for the year ended 31 March 2022
11 Creditors : amounts falling due within one year
| Creditors : amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other taxes and social security costs Accruals |
2022 £ 2,882 2,035 1,124 6,041 |
2021 £ 5,117 1,748 1,155 |
| 8,020 |
12 Accumulated fund
| At 1 April 2021 Retained surplus/ (deficit) At 31 March 2022 At 1 April 2020 Retained surplus At 31 March 2021 |
Restricted funds 2022 £ - 33,675 33,675 Restricted funds 2021 £ - - - |
Unrestricted funds 2022 £ 136,700 (1,762) 134,938 Unrestricted funds 2021 £ 119,165 17,535 136,700 |
Total funds 2022 £ 136,700 31,913 |
|||
|---|---|---|---|---|---|---|
| 168,613 | ||||||
| Total funds 2021 £ 119,165 17,535 |
||||||
| 136,700 |
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 ongoing expenses corresponded to ~£125k, below the ~£135k we had in cash at year end. Note that these expenses and cash levels are adjusted for a grant received during the year totaling ~£39k, which was awarded to improve the accessibility of the groups and gardens, and also for some specific internal refurbishment. ~£5k of this grant was spent during the year.
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.
-
Unexpected closure of the facilities resulting in sharp fall in income.
-
Existing groups leave the centre and are not replaced by new groups.
-
Large and unexpected building maintenance costs.
-
Large and sustained increases in the cost of utilities (electricity, gas).
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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 2022
13 Status
The company, which is a registered charity, is limited by guarantee and has no share capital.
14 Comparative Statement of Financial Activities
| Notes Restricted funds 2021 £ Incoming resources Income from use of facilities and catering 4 - Grants and donations receivable 5 39,000 Investment income 3 - Total incoming resources 39,000 Resources expended Cost of generating funds Direct charitable expenditure 5 39,000 Governance costs 6 - Total expenditure 39,000 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 - |
Unrestricted funds 2021 £ 26,246 81,348 - 107,594 89,309 750 90,059 17,535 119,165 136,700 |
Total 2021 £ 26,246 120,348 - |
|
|---|---|---|---|
| 146,594 | |||
| 128,309 750 |
|||
| 129,059 | |||
| 17,535 119,165 |
|||
| 136,700 |
15 Reconciliation of net movements in funds to net cash flow from operating activities
| Net movement in funds Add back depreciation Decrease / (increase) in debtors Increase / (decrease) in creditors Net cash used in operating activities |
2022 2021 £ £ 31,913 17,535 1,063 550 (260) 3,556 (1,979) (4,251) |
|---|---|
| 30,737 17,390 |
13
Shrewsbury House Community Association Limited General Income and Expenditure account for the year ended 31 March 2022
| Income from use of facilities and catering Affiliation fees Room Hire Grants Restricted Royal Borough of Greenwich - core funding Royal Borough of Greenwich - GNGF Unrestricted 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 Repairs and maintenance Insurance Janatorial Telephone and fax 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 |
2022 £ 2,426 84,951 87,377 20,000 38,700 20,201 14,564 2,752 - 6,326 189,920 111,751 155 296 14,917 17,228 2,650 2,086 1,423 1,822 255 1,048 769 381 958 628 890 157,257 750 750 158,007 31,913 |
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 |
14
Shrewsbury House Community Association Limited Catering Income and Expenditure account for the year ended 31 March 2022
| 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 |
2022 £ 17,737 2,376 20,113 13,449 165 173 13,787 6,326 |
2021 £ 290 - |
|---|---|---|
| 290 | ||
| 994 89 216 |
||
| 1,299 | ||
| (1,009) |
15