Charity registration number 1023758
NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
Kerr & Co Limited Chartered Accountants
NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Trustees
Trustees Mr WE I Irving Mr R Williams Miss DA Jackson Mrs D Green Charity number 1023758 Principal address 38 Benjamin Fold Ashton-in-Makerfield Wigan WN4 8DN Independent examiner Keith J Miller FCA Kerr & Co Limited 375 Eaton Road West Derby Liverpool L12 2AH
NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Statement of cash flows | 6 |
| Notes to the financial statements | 7 - 12 |
NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
TRUSTEES REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The Trustees present their report and accounts for the year ended 31 March 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities Act 2011 and “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 2019)”
Objectives and activities
The purpose of the charity is to aid the comfort and welfare of the patients and staff of the Newton Community Hospital by providing facilities and equipment to the hospital wards and external communal areas.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance “public benefit: running a charity (PB2)”. The charity relies on the income from legacies, donations, grants and fundraising to cover its operating costs. Access to our facilities is important to us.
Achievements and performance
Significant activities and achievements against objectives
The results for the year and financial position of the charity are as shown in the annexed financial statements. We have been fortunate to have received a legacy of £100,000 from the estate of the late Irene Dobson Deceased, a former patient of the hospital together with other donations from former patients.
This income has allowed us to provide replacement TV’s for the wards, a rehabilitation garden area and facilities for the patients and other facilities and goods to make the stay in hospital as comfortable as possible.
Financial review
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six month’s expenditure. At this level, in the event of a significant drop in income, we will be able to continue our current activities whilst consideration is given to ways in which additional funds maybe raised.
Structure, governance and management
Newton Community Hospital Welfare Association is an unincorporated registered charity which is governed by the policies made by the trustees from time to time. The procedures for the appointment, retirement and removal of trustees through the Annual General Meetings.
The day to day operational aspects of the charity have been delegated to Dawn Green
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr WE I Irving Mr R Williams Miss DA Jackson Mrs D Green
Related Parties
None of the trustees receive remuneration or other financial benefit from their work with the charity and any contractual relationship with a related party must be disclosed to the full board of trustees. In the current year, no such related party transactions were reported.
Risk Management
The trustees have a risk management strategy which comprises: an annual review of the principal risks and uncertainties that the charity faces and the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due and active management of creditor balances to ensure sufficient working capital is available.
Based on the assessments carried out, the charity believes that it has a financial position that will enable it to continue with its operations.
Trustees’ Responsibilities in Relation to the Financial Statements
The trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) which show a true and fair view of the state of affairs of the charity and of its financial activities for that year. In preparing those financial statements the trustees are required to:-
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether the policies adopted are in accordance with the Statement of Recommended Practice “Charities SORP (FRS 102)” issued by the Charity Commission and with applicable accounting standards subject to any material departures disclosed and explained in the financial statements.
• Prepare the financial statements on going concern basis unless it is inappropriate to assume that the charity will continue on that basis.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are responsible for safeguarding the assets of eth charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
The report was approved by the Board of Trustees.
Mrs D Green
6 February 2025
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
I report to the trustees on my examination of the financial statements of Newton Community Hospital Welfare Association (the Newton Community Hospital Welfare Association) for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the Newton Community Hospital Welfare Association you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Newton Community Hospital Welfare Association’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 that in any material respect:
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1 accounting records were not kept in respect of the Newton Community Hospital Welfare Association as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
Keith Miller FCA Kerr & Co Limited 375 Eaton Road West Derby Liverpool L12 2AH
Dated: 6 February 2025
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 101,753 | 4,810 |
| Total income | 101,753 | 4,810 | |
| Expenditure on: | |||
| Raising funds | 4 | 1,000 | - |
| Charitable activities | 5 | 12,456 | 1,298 |
| Total expenditure | 13,456 | 1,298 | |
| Net income and movement in funds | 88,297 | 3,512 | |
| Reconciliation of funds: | |||
| Fund balances at 1 April 2022 | 7,753 | 4,241 | |
| Fund balances at 31 March 2023 | 96,050 | 7,753 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
BALANCE SHEET
AS AT 31 MARCH 2023
| 2023 Notes £ Fixed assets Tangible assets 11 Current assets Cash at bank and in hand 73,478 Creditors: amounts falling due within one year 12 (5,610) Net current assets Total assets less current liabilities The funds of the Newton Community Hospital Welfare Association Unrestricted funds 13 |
£ 28,182 67,868 96,050 96,050 96,050 |
2022 £ 7,753 - |
£ - 7,753 |
|---|---|---|---|
| 7,753 | |||
| 7,753 | |||
| 7,753 |
The financial statements were approved by the trustees on 6 February 2025
Mrs D Green
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
| 2023 Notes £ £ Cash flows from operating activities Cash generated from operations 15 97,361 Investing activities Purchase of tangible fixed assets (31,636) Net cash used in investing activities (31,636) Net cash used in financing activities - Net increase in cash and cash equivalents 65,725 Cash and cash equivalents at beginning of year 7,753 Cash and cash equivalents at end of year 73,478 |
2022 £ - |
£ 4,810 - (1,298) 3,512 4,241 7,753 |
|---|---|---|
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
These financial statements for the year ended 31 March 2023 are the first financial statements of Newton Community Hospital Welfare Association prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2021. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Newton Community Hospital Welfare Association's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The Newton Community Hospital Welfare Association is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the Newton Community Hospital Welfare Association. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the Newton Community Hospital Welfare Association has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Newton Community Hospital Welfare Association.
1.4 Income
Income is recognised when the Newton Community Hospital Welfare Association is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Newton Community Hospital Welfare Association has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
Legacies are recognised on receipt or otherwise if the Newton Community Hospital Welfare Association has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the Newton Community Hospital Welfare Association reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Newton Community Hospital Welfare Association’s contractual obligations expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Newton Community Hospital Welfare Association is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the Newton Community Hospital Welfare Association’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 101,753 | 4,810 |
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4 Expenditure on raising funds
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Trading costs | |||
| Support costs | 1,000 | - | |
| 5 | Expenditure on charitable activities | ||
| Expenses | |||
| 2023 | |||
| £ | |||
| Direct costs | |||
| Depreciation and impairment | 3,454 | ||
| Repairs & Renewals | 7,586 | ||
| Food | 432 | ||
| Sundry | 646 | ||
| Cleaning | 338 | ||
| 12,456 | |||
| Analysis by fund | |||
| Unrestricted funds | 12,456 | ||
| 6 | Support costs allocated to activities | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Governance costs | 1,000 | - | |
| Analysed between: | |||
| Fundraising | 1,000 | - | |
| 7 | Net movement in funds | 2023 | 2022 |
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the independent examination of the charity's financial | |||
| statements | 1,000 | - | |
| Depreciation of owned tangible fixed assets | 3,454 | - |
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Newton Community Hospital Welfare Association during the year.
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
9 Employees
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Tangible fixed assets
| Cost Additions At 31 March 2023 Depreciation and impairment Depreciation charged in the year At 31 March 2023 Carrying amount At 31 March 2023 Creditors: amounts falling due within one year Other creditors Accruals and deferred income |
Fixtures and fittings £ 31,636 31,636 3,454 3,454 28,182 2023 2022 £ £ 4,610 - 1,000 - 5,610 - |
Fixtures and fittings £ 31,636 31,636 3,454 3,454 28,182 2023 2022 £ £ 4,610 - 1,000 - 5,610 - |
|---|---|---|
| 31,636 | ||
| 3,454 | ||
| 3,454 | ||
| 28,182 | ||
| 2022 £ - - |
||
| - |
12 Creditors: amounts falling due within one year
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NEWTON COMMUNITY HOSPITAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
13 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 April | Incoming | Resources | At 31 March | |
|---|---|---|---|---|
| 2022 | resources | expended | 2023 | |
| £ | £ | £ | £ | |
| General funds | 7,753 | 101,753 | (13,456) | 96,050 |
| Previous year: | At 1 April | Incoming | Resources | At 31 March |
| 2021 | resources | expended | 2022 | |
| £ | £ | £ | £ | |
| General funds | 4,241 | 4,810 | (1,298) | 7,753 |
14 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
| 15 Cash generated from operations Surplus for the year Adjustments for: Depreciation and impairment of tangible fixed assets Movements in working capital: Increase in creditors Cash generated from operations Difference Per cash flow statement page |
2023 £ 88,297 3,454 5,610 97,361 - 97,361 |
2022 £ 4,810 - - 4,810 (4,810) - |
|---|---|---|
16 Analysis of changes in net funds
The Newton Community Hospital Welfare Association had no material debt during the year.
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