**Registered number: 03364165 Charity number: 1063842**
**Action for Borstal Community Project (A company limited by guarantee)**
**Unaudited Trustees' report and financial statements for the year ended 31 March 2024**
**Contents** Page **Reference and administrative details of the Charity, its Trustees and advisers** 1 **Trustees' report** 2 - 4 **Independent examiner's report** 5 **Statement of financial activities** 6 **Balance sheet** 7 **Notes to the financial statements** 8 - 17
## **Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2024**
**Trustees** S A Tranter, Chair A G Kew C McCann (resigned 15 March 2023) E M McVeigh L Beckett (appointed 20 December 2022)
**Company registered number** 03364165 **Charity registered number** 1063842 **Registered office** 13 & 14 Mercury Close Borstal Rochester Kent ME1 3AT
**Accountants** Ant Accounting, Innovation Centre Medway, Maidstone Road, Chatham, ME5 9FD
**Bankers** CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ **Independent Examiner** Ian Bhola Ant Accounting, Innovation Centre Medway, Maidstone Road
**Trustees' report for the year ended 31 March 2024**
The Trustees present their annual report together with the financial statements of the Charity for the year from 1 April 2023 to 31 March 2024. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The objects of the Charity are the advancement of education, the preservation and protection of health, the relief of poverty, sickness and distress and the provision of support for the benefit of local children, parents and other residents of Borstal and Rochester, Kent.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)' when reviewing the Charity's aims and objectives and in planning future activities for the year.
## **b. Volunteers**
The trustees volunteered according to their skills and time, helping with providing advice and some practical help on site, such as fitting/installing items and minor repairs.
## **Achievements and performance**
## **a. Results for the year**
The Charity has received income during the financial year of £73,236 (2023: £108,774), whilst incurring expenditure totalling to £80,763 (2023: £115,730). This led to total reserves decreasing from £16,743 to £9,876. Of this £5,444 (2023: £12,311) is the Charity's unrestricted reserves, with £4,432 (2023: £4,432) being held as restricted funds at the Balance sheet date.
## **b. Review of activities**
Various small events outside of normal working hours were arranged to improve engagement with parents and children.
The core income and expenditure is fairly reliable and predictable, so holding high reserves should not be necessary. However, the Trustees believe a comfortable level at the current time would be £40,000 – something the Charity is not quite achieving. It has been extremely difficult to increase income during the past year, but as 2023/24 progresses they hope to begin increasing the level of reserves up to £40,000, before embarking on any significant new additional expenditure. The Trustees continue to explore potential new sources of funding to improve reserves and help future developments.
The Trustees, staff and children are also very grateful to MHS homes for their ongoing maintenance of the building and external facilities.
**Trustees' report (continued) for the year ended 31 March 2024 Financial review**
## **a. Going concern**
In May 2023 the trustees had to suspend, and later dismiss, the project manager, ad suspend all operations for just over 3 months (including the summer break when it is closed anyway). This was due to issues being raised regarding safeguarding and the proper running of the charity. All those issues have been resolved, a new manager has been appointed and subsequently the project received another ‘good’ rating from Ofsted. However, this inevitably had a detrimental impact on revenues.
Despite the above issue, after making appropriate enquiries, the Trustees still have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The Trustees have considered the level of reserves they need to hold to enable them to meet their charitable objectives. The Trustees are continually reviewing the services provided and the funding they are receiving.
The core income and expenditure is fairly reliable and predictable, so holding high reserves should not be necessary. However, the Trustees believe a comfortable level at the current time would be £40,000 – something the Charity is not quite achieving. It has been extremely difficult to increase income during the past year, but as 2024 progresses they hope to begin increasing the level of reserves up to £40,000, before embarking on any significant new additional expenditure. The Trustees continue to explore potential new sources of funding to improve reserves and help future developments.
## **Structure, governance and management**
## **a. Constitution**
Action for Borstal Community Project is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association dated 1 May 1997.
The Charity is constituted under a Memorandum of Association and is a registered charity, number 1063842.
## **b. Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the Trustees who are elected and co opted under the terms of the Articles of Association.
## **c. Enquiries**
Any enquiries concerning the Charity should be addressed to the principal office at 13 & 14 Mercury Close, Borstal, Rochester, Kent, ME1 3AT.
## **d. Financial risk management**
The Trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Plans for future periods**
The Trustees hope to secure further funding and build reserves to ensure the vital work of the project continues. This includes new grants and section 106 contributions from local developments.
**Trustees' report (continued) for the year ended 31 March 2024 Information on fundraising practices**
The Charity has not undertaken any significant fundraising activities during the financial year however, the Preschool held a few small events to help finance materials for the children.
## **Statement of Trustees' responsibilities**
The Trustees (who are also the Directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 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 Charity and of its income 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 then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, 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 presume that the
- Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the Board of Trustees and signed on their behalf by:
## **S A Tranter** Trustee Date:
**Independent examiner's report for the year ended 31 March 2024**
**Independent examiner's report to the Trustees of Action for Borstal Community Project ('the Charity')**
I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2024.
## **Responsibilities and basis of report**
As the Trustees of the Charity (and 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 the Charity 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 the Charity's accounts 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 the Charity 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.
Signed: Dated:
Ian Bhola
## **Ant Accounting Ltd, Innovation Centre Medway, Maidstone Rd, Chatham, Kent, ME5 9FD**
## Ian Bhola
**Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2024**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Investments
6
**Total income**
**Expenditure on:**
Charitable activities
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds 2024**
**£**
**-**
**-**
**-**
**-**
**-**
**-**|**Unrestricted**
**funds 2024**
**£**
**71,191**
**1,855**
**190**
**73,236**
**80,103**
**80,103**
**94)**
**(6,867)**
**12,311**
**(6,867)**
**5,444**||**Total funds**
**2024**
**£**
**71,191**
**1,855**
**190**
**73,236**
**80,103**
**80,103**|**Total funds**
**2023**
**£**
**107,020**
**1,720**
**34**
**108,774**
**115,730**
**115,730**
**(6,956)**
**23,699**
**(6,956)**
**16,743**|
|---|---|---|---|---|---|
||**-**
**(11,0**
**4432**
**-**
**4,432**|||**(6,867)**
**16,743**
**(6,867)**
**9,876**||
The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 8 to 17 form part of these financial statements.
## **Registered number: 03364165**
## **Balance sheet as at 31 March 2024**
|**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**
**Total net assets**
**Charity funds**
Restricted funds
13
Unrestricted funds
13
**Total funds**|**176**
**9,923**
**10,099**
**(1,330)**|**2024**
**£**
**1,107**
-430
**8,769**
**9,876**
**4,432**
**5,444**
**9,876**|29
17,132
17,161
(1,560)|2023
£
1,142
15,601
16,743
4432
12,311
16,743|
|---|---|---|---|---|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf
**S A Tranter** Trustee Date:
The notes on pages 8 to 17 form part of these financial statements.
## **Notes to the financial statements for the year ended 31 March 2024**
## **1. General information**
Action for Borstal is a company limited by guarantee and is incorporated in England & Wales with the registration number 03364165. The address of the registered office is 13 & 14 Mercury Close, Borstal, Rochester, Kent, ME1 3AT.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Action for Borstal Community Project 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.
The financial statements are prepared on a going concern basis under the historical cost
convention, modified to include certain items at fair value. The financial statements are presented in sterling, which is the functional currency of the Charity and rounded to the nearest £.
## **2.2 Going concern**
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **Notes to the financial statements for the year ended 31 March 2024**
## **2. Accounting policies (continued)**
## **2.4 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 on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT.
## **2.5 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 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.
## **2.7 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Office equipment - 20% straight line
## **2.8 Debtors**
Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
## **2.9 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Notes to the financial statements for the year ended 31 March 2024**
## **2. Accounting policies (continued)**
## **2.10 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.11 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **2.12 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
## **2.13 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Critical accounting estimates and areas of judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity does not currently have any significant accounting estimates or areas of judgement.
## **Notes to the financial statements for the year ended 31 March 2024**
**4. Income from donations and legacies**
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Restricted|Unrestricte|Total funds|Total funds|
|funds|d|2024|2023|
|2024|funds 2024|£|£|
|£|£|
|Donations|-|19,097|19,097|29,989|
|-|
|Government grants|52,094|52,094|77,031|
|-|
|71,191|71,191|107,020|
**----- End of picture text -----**
## **5. Income from charitable activities**
**----- Start of picture text -----**
|||||
|---|---|---|---|
|Unrestricte|Total funds|Total funds|
|d|2024|2023|
|funds 2024|£|£|
|£|
|Fees receivable|1,855|1,855|1,720|
**----- End of picture text -----**
## **6. Investment income**
**----- Start of picture text -----**
|||||
|---|---|---|---|
|Unrestricte|Total funds|Total funds|
|d|2024|2023|
|funds 2024|£|£|
|£|
|Bank interest receivable|190|190|34|
**----- End of picture text -----**
## **Notes to the financial statements for the year ended 31 March 2024**
## **7. Analysis of expenditure by activities**
||**Direct**|**Support**|**Total**|Total funds|
|---|---|---|---|---|
||**costs**|**costs**|**funds**|2023|
||**2024**|**2024**|**2024**|£|
||**£**|**£**|**£**||
|Charitable activities|77,911|2,192|**80,103**|115,730|
|Charitable activities|**Direct**
**costs**
**2024**
**£**
77,911|**Support**
**costs**
**2024**
**£**
2,192|**Total**
**funds**
**2024**
**£**
**80,103**|Total funds
2023
£
115,730|
|---|---|---|---|---|
|**Analysis of direct costs**
Staff costs
Depreciation
Rent and rates
Heat and light
Telephone and internet
Insurances
Bank charges
Sundry expenses
Equipment
Decorating costs|||**Total**
**funds**
**2024**
**£**
**48,988**
**100**
**17,488**
**2,857**
**980**
**591**
**60**
**1,055**
**5791**
**-**
**77,911**|As restated
Total
funds
2023
£
71,659
420
20,733
2,218
782
672
72
3,885
256
200
100,897|
## **Notes to the financial statements for the year ended 31 March 2024**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs (continued)**
The decorating costs of £200 (2022: £5,082) relate to restricted expenditure in the year. All remaining direct costs expenditure in 2023 are from unrestricted funds.
## **Analysis of support costs**
|Independent examiner's fees
Payroll fees
Consultancy fees
Professional support costs
All of the support costs, in both 2023 and 2024, were from
unrestricted funds.|**Total**
**funds**
**2024**
**£**
**900**
**-**
**-**
**1,292**
**2,192**|As restated
Total
funds
2023
£
1,560
660
9260
3,353
14,833|
|---|---|---|
## **8. Staff costs**
|Wages and salaries
Social security costs
Pension costs|**2024**
**£**
**48,594**
**-**
**364**
**48,958**|2023
£
71,512
-
147
71,659|
|---|---|---|
The average number of persons employed by the Charity during the year was as follows:
**2024** 2023 **No.** No. **12** 8
No employee received remuneration amounting to more than £60,000 in either year.
Total remuneration and benefits received by key management personnel, including employer's national insurance contributions, amounted to £6,118 (2023: £14,610).
## **Notes to the financial statements for the year ended 31 March 2024**
## **9. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).
During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL).
## **10. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2023
Additions
At 31 March 2024
**Depreciation**
At 1 April 2023
Charge for the year
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023
**11. Debtors**
**Due within one year**
Other debtors
Prepayments and accrued income
**12. Creditors**
**Due within one year**
Other Creditors|**2024**
**110**
**66**
**176**
**2024**
**£**
**430**
**430**|**Office**
**equipment**
**£**
**14,581**
65
**14,646**
**13,439**
100
**13,539**
**1,107**
1,142
2023
29
-
29
2023
£
29
-
29|
|---|---|---|
## **Notes to the financial statements for the year ended 31 March 2024**
## **12. Creditors: Amounts falling due within one year**
|**Creditors: Amounts falling due within one year**|||
|---|---|---|
||**2024**|2023|
||**£**|£|
|Accruals and deferred income|**900**|1,560|
## **13. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
General funds
**Restricted funds**
Pre-school decorating fund
**Total of funds**|**Balance at**
**1**
**April 2023**
**£**
**12,311**
**4432**
**16,743**|**Income**
**£**
**73,236**
**-**
**104,727**|**Balance at**
**31 March**
**Expenditure**
**£**
**2024**
**£**
**(80,103)**
**5,444**
**-**
**4,432**
**(80,103)**
**9,876**|
|---|---|---|---|
## **Restricted funds**
Pre-school decorating fund - this funding was received from the Co-op to enable the Charity to undertake redecoration and renovation works at the Pre-school.
## **Notes to the financial statements for the year ended 31 March 2024**
## **13. Statement of funds (continued) Statement of funds - prior year**
|**Unrestricted funds**
General funds
Restricted Funds
Total Funds|Balance at
Transfers
Balance at
31 March
1 April 2022
£
Income
£
Expenditure
£
in/out
£
2023
£
23,405
104,436
(115,530)
-
12,311
294
4,338
(200)
-
4,432
23,699
108,774
(115,730)
16,743|
|---|---|