Company registration number: 02651923 Charity registration number: 1014259
## Willen Pavilion
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021
Michael J Emery & Co Limited Chartered Accountants 22 St John Street Newport Pagnell Buckinghamshire MK16 8HJ
## **Willen Pavilion**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Statement of Trustees' Responsibilities|4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 14|
|Detailed Statement of Financial Activities|15 to 16|
## **Willen Pavilion**
## **Reference and Administrative Details**
**Trustees** Mrs S Naylor Mr SA Kelman Mr DGW Preston Mr J Murphy Mr DE Pafford Mr S Brunning **Principal Office** 28 Portland Drive Willen Milton Keynes Buckinghamshire MK15 9JP The charity is incorporated in England and Wales (company registration number: 02651923). **Company Registration Number** 02651923 **Charity Registration Number** 1014259 **Independent Examiner** Michael J Emery & Co Limited Chartered Accountants 22 St John Street Newport Pagnell Buckinghamshire MK16 8HJ
Page 1
## **Willen Pavilion**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
## **Objectives and activities**
## **Objects and aims**
The charity's principal objectives are:
To promote the benefit of the inhabitants of Willen, Willen Park and Bolbeck Park and the neighbourhood by associating together with the said inhabitants, the local authorities, voluntary and other organisations in a common effort to advance and to provide facilities in the interest of social welfare for recreation and leaisure-time occupation with the object of improving the conditions of life for the said inhabitants.
To establish, or secure the establishment of, a community centre and to maintain and manage the same (whether done or in co-operation with any local authority or other person or body) in furtherance of these objects.
## **Public benefit**
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
Due to restrictions imposed by government to deal with the Covid-19 pandemic, use of the hall and sports facilities was severely limited during the financial year. Hire of the hall to casual users ceased completely and only a small number of regular user groups contiued to use the facilities in accordance with government guidelines.
## **Financial review**
Willen Pavilion generated a surplus for the year of £4,655 (2020: £3,592) which when added to accumulated funds brought forward, gives a total of £41,927 to be carried forward as general funds.
The results have been augmented by the receipt of a small business grant of £10,000 from Milton Keynes Council, which was made available as part of the government's financial suport for businesses impacted by the restrictions, as well as Job Retention Scheme grants of £3,645. The trustees consider that this support has been of great benefit in securing the financial position of the charity.
## **Policy on reserves**
It is policy to maintain unrestricted reserves at a minimum level of approxmately 12 months of operating costs.
## **Plans for future periods**
## **Aims and key objectives for future periods**
In general terms the charity will look to continue to meet its objectives as stated.
For the future we hope to encourage more users and by using the feedback we receive to enhance the building to make it more appealing and user friendly to a variety of users.
Page 2
## **Willen Pavilion**
## **Trustees' Report**
## **Structure, governance and management**
## **Nature of governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Recruitment and appointment of trustees**
New trustees are usually recruited from within the local community or from stakeholder groups such as regular users.
## **Induction and training of trustees**
New trustees are inducted and trained in accordance with the Charity Commission's guidelines.
## **Arrangements for setting key management personnel remuneration**
The remuneration of key management personnel is reviewed regularly by the committee of trustees and is determined by benchmarking against local living wage standards and the pay rates of similar employer's situated within the local area.
## **Organisational structure**
The day to day running of Willen Pavilion is delegated to the management team which comprises two paid employees. The trustees meet regularly to review operations and to act as a forum for decision making. Any large or non-routine items of expenditure are always authorised by the trustees.
## **Important non-adjusting events after the financial period**
Milton Keynes Council have informed the charity's trustees that they are taking steps to facilitate the disposal of the Pavilion building and grounds. Preliminary discussions have been held about how this will be carried out, and at this stage it appears the most likely outcome is for the asset to be transferred to the local parish council.
The timing and nature of any asset transfer is still uncertain, as is the charity's continuing involvement in managing the facilities should the transfer take place. The trustees remain hopeful that the management committee will be able to continue running the faciilties via the charity, and were given encouragement in this regard during initial discussions with representatives from both councils. However, it is also a possibility that the parish council may choose to use their own internal facilities team to run the Pavilion, which would then cast doubt over the charity's going concern status.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mr S Brunning Trustee
Page 3
## **Willen Pavilion**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Willen Pavilion for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mr S Brunning Trustee
Page 4
## **Willen Pavilion**
## **Independent Examiner's Report to the trustees of Willen Pavilion**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 14.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Willen Pavilion (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Willen Pavilion are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of Willen Pavilion as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Michael Emery ACA
For and on behalf of Michael J Emery & Co Limited, Chartered Accountants 22 St John Street Newport Pagnell Buckinghamshire MK16 8HJ
Date:.............................
Page 5
## **Willen Pavilion**
## **Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Investment income
3
Other income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13
**Note**
**Income and Endowments from:**
Investment income
3
Other income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13|**Unrestricted**
**funds**
**£**
9
30,437
30,446
(25,791)
(25,791)
4,655
4,655
37,272
41,927
**Unrestricted**
**funds**
**£**
30
34,562
34,592
(31,000)
(31,000)
3,592
3,592
33,680
37,272|**Total**
**2021**
**£**
9
30,437|
|---|---|---|
|||30,446|
|||(25,791)|
|||(25,791)|
|||4,655|
|||4,655
37,272|
|||41,927|
|||**Total**
**2020**
**£**
30
34,562|
|||34,592|
|||(31,000)|
|||(31,000)|
|||3,592|
|||3,592
33,680|
|||37,272|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 13.
Page 6
## **Willen Pavilion**
## **(Registration number: 02651923) Balance Sheet as at 31 March 2021**
|**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
12
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
13|**2021**
**£**
692
28,806
21,010
49,816
(8,581)
41,235
41,927
41,927
41,927|**2020**
**£**
496
22,726
22,997|
|---|---|---|
|||45,723
(8,947)|
|||36,776|
|||37,272|
|||37,272|
|||37,272|
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mr S Brunning
Trustee
Page 7
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England and Wales (company registration number: 02651923), and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.
The address of its registered office is: 28 Portland Drive Willen Milton Keynes Buckinghamshire MK15 9JP
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Willen Pavilion meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Page 8
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Income and endowments**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
All resources expended are inclusive of irrecoverable VAT.
## **Charitable activities**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Government grants**
Grants income is recognised in accordance with the performance model prescribed by FRS 102.
A grant that does not impose specified future performance-related conditions is recognised in income when the grant proceeds are receivable.
A grant that imposes specified future performance conditions is recognised in income only when the performance-related conditions are met.
Grants received before the revenue recognition criteria are satisfied are recognised as a liability.
## **Irrecoverable VAT**
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 9
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Tangible fixed assets**
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **Asset class**
Equipment
**Depreciation method and rate** 20% on cost
## **Trade debtors**
Trade debtors are amounts due from user groups for hire of the community centre and sports ground.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
## **3 Investment income**
|Interest receivable and similar income;
Interest receivable on bank deposits|**Unrestricted**
**funds**
**General**
**£**
9|**Total**
**2021**
**£**
9|**Total**
**2020**
**£**
30|
|---|---|---|---|
Page 10
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **4 Other income**
|Grants and subsidies
Rental income
**5**
**Expenditure on charitable activities**
**Note**
Allocated support costs
Governance costs|**Unrestricted**
**funds**
**General**
**£**
13,645
16,792
30,437
**Unrestricted**
**funds**
**General**
**£**
25,191
600
25,791|**Total**
**2021**
**£**
13,645
16,792
30,437
**Total**
**2021**
**£**
25,191
600
25,791|**Total**
**2020**
**£**
-
34,562|
|---|---|---|---|
||||34,562|
||||**Total**
**2020**
**£**
30,400
600|
||||31,000|
## **6 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
## **7 Staff costs**
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
|No employee received emoluments of more than £60,000 during the year.
**8**
**Independent examiner's remuneration**
**Other fees to examiners**
Examination-related assurance services|**2021**
**No**
2
**2021**
**£**
600|**2020**
**No**
2|
|---|---|---|
|||**2020**
**£**
600|
Page 11
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **9 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **10 Tangible fixed assets**
|**Cost**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
At 31 March 2021
**Net book value**
At 31 March 2021
At 31 March 2020
**11 Debtors**
Trade debtors
**12 Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals||**Furniture and**
**equipment**
**£**
12,245
570
12,815
11,749
374
12,123
692
496
**2021**
**£**
28,806
**2021**
**£**
379
1,691
6,511
8,581|**Furniture and**
**equipment**
**£**
12,245
570
12,815
11,749
374
12,123
692
496
**2021**
**£**
28,806
**2021**
**£**
379
1,691
6,511
8,581|**Total**
**£**
12,245
570
12,815
11,749
374
12,123
692
496
**2020**
**£**
22,726|
|---|---|---|---|---|
|||12,815|||
|||11,749
374|||
|||12,123|||
|||692|||
|||496|||
|||**2021**
**£**
28,806
**2021**
**£**
379
1,691
6,511
8,581|||
|||||**2020**
**£**
396
1,900
6,651|
|||||8,947|
Page 12
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **13 Funds**
|**13 Funds**|||||
|---|---|---|---|---|
|**Balance at 1**
**April 2020**
**£**
**Unrestricted funds**
General
37,272
**Balance at 1**
**April 2019**
**£**
**Unrestricted funds**
General
33,680
**14 Analysis of net assets between funds**
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Incoming**
**resources**
**£**
30,446
**Incoming**
**resources**
**£**
34,592||**Resources**
**expended**
**£**
(25,791)
**Resources**
**expended**
**£**
(31,000)
**Unrestricted**
**funds**
**General**
**£**
692
49,816
(8,581)
41,927
**Unrestricted**
**funds**
**General**
**£**
496
45,723
(8,947)
37,272|**Balance at 31**
**March 2021**
**£**
41,927|
|||||**Balance at 31**
**March 2020**
**£**
37,272|
|||||**Total funds**
**£**
692
49,816
(8,581)|
|||||41,927|
|||||**Total funds**
**£**
496
45,723
(8,947)|
|||||37,272|
Page 13
## **Willen Pavilion**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **15 Non-adjusting events after the financial period**
Milton Keynes Council have informed the charity's trustees that they are taking steps to facilitate the disposal of the Pavilion building and grounds. Preliminary discussions have been held about how this will be carried out, and at this stage it appears the most likely outcome is for the asset to be transferred to the local parish council.
The timing and nature of any asset transfer is still uncertain, as is the charity's continuing involvement in managing the facilities should the transfer take place. The trustees remain hopeful that the management committee will be able to continue running the faciilties via the charity, and were given encouragement in this regard during initial discussions with representatives from both councils. However, it is also a possibility that the parish council may choose to use their own internal facilities team to run the Pavilion, which would then cast doubt over the charity's going concern status.
Page 14
## **Willen Pavilion**
## **Detailed Statement of Financial Activities for the Year Ended 31 March 2021**
|**Income and Endowments from:**
Investment income (analysed below)
Other income (analysed below)
Total income
**Expenditure on:**
Charitable activities (analysed below)
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**2021**
**Unrestricted**
**funds**
**General**
**£**
9
30,437
30,446
25,791
25,791
4,655
4,655
37,272
41,927|**2021**
**Total**
**£**
9
30,437
30,446
25,791
25,791
4,655
4,655
37,272
41,927|**Total**
**2020**
**£**
30
34,562|
|---|---|---|---|
||||34,592|
||||31,000|
||||31,000|
||||3,592|
||||3,592
33,680|
||||37,272|
Page 15
## **Willen Pavilion**
## **Detailed Statement of Financial Activities for the Year Ended 31 March 2021**
|**_Investment income_**
Bank interest receivable
**_Other income_**
Rental income
Grants receivable
**_Charitable activities_**
Wages and salaries
Community events
Water rates
Light, heat and power
Insurance
Repairs and renewals
Telephone and fax
Computer software and maintenance costs
Subscriptions
Sundry expenses
Bank charges
Depreciation of plant and machinery
Independent examiner's fee|**2021**
**Unrestricted**
**funds**
**General**
**£**
9
9
**2021**
**Unrestricted**
**funds**
**General**
**£**
16,792
13,645
30,437
**2021**
**Unrestricted**
**funds**
**General**
**£**
14,720
-
138
4,675
502
2,965
504
553
-
727
32
375
600
25,791|**2021**
**Total**
**£**
9
9
**2021**
**Total**
**£**
16,792
13,645
30,437
**2021**
**Total**
**£**
14,720
-
138
4,675
502
2,965
504
553
-
727
32
375
600
25,791|**Total**
**2020**
**£**
30|
|---|---|---|---|
||||30|
||||**Total**
**2020**
**£**
34,562
-|
||||34,562|
||||**Total**
**2020**
**£**
15,779
1,241
799
5,469
498
3,265
919
634
485
989
32
290
600|
||||31,000|
Page 16