## **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:
- -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:
1. select suitable accounting policies and apply them consistantly;
2. make judgements and estimates that are reasonable and prudent;
3. 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;
4. 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:
- examine the accounts under section 145 of the Charities Act,;
- 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
- 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)
- 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:
- 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).
- 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