Charity Registration No. 1074033
Company Registration No. 03335317 (England and Wales)
DENBIGHSHIRE FOYER LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
DENBIGHSHIRE FOYER LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr H Ferdinando | |
|---|---|---|
| Mr D Manifold | ||
| Mrs E Frodsham | ||
| Mr L Delaney | ||
| Mrs M Owen | ||
| Mr D Berry | (Appointed 15 April 2021) | |
| Mr W Jones | (Appointed 15 April 2021) | |
| Secretary | Mr D Berry | |
| Charity number | 1074033 | |
| Company number | 03335317 | |
| Registered office | Sage & Company | |
| Chartered Accountants | ||
| 102 Bowen Court | ||
| St Asaph Business Park | ||
| St Asaph | ||
| LL17 0JE | ||
| Independent examiner | Sage & Company Business Advisors Ltd | |
| 102 Bowen Court | ||
| St Asaph Business Park | ||
| ST ASAPH | ||
| Denbighshire | ||
| LL17 0JE | ||
| Bankers | Barclays Bank Plc | |
| 68-70 High Street | ||
| Rhyl | ||
| Denbighshire | ||
| LL18 1EU | ||
| Solicitors | Gamlins Solicitors Rhyl | |
| 33-37 Russell Road | ||
| Rhyl | ||
| LL18 3DB |
DENBIGHSHIRE FOYER LIMITED
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 - 11 |
DENBIGHSHIRE FOYER LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 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 charity's objective and its principal activity continues to be that of developing affordable accommodation and access to training and employment to young persons in Denbighshire.
The bulk of the charitable expenditure in the year was again entrusted to Buttle UK (formerly The Frank Buttle Trust) who have the expertise in directing funds to those in desperate need in Denbighshire.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Strategic report
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.
Achievements and performance
The Statement of Financial Activities shows a deficit in the year of £8,186. There has been no movement in the fair value of the investment property, which is carried in the balance sheet at deemed cost under the rules of FRS102. Cash reserves of approximately £20,000 - £65,000 are held throughout the year, to cover unforeseen expenses on the property, any emergency commitments, or are held pending agreement with appropriate bodies or individuals to support. The present level of funding is adequate to support the expenses incurred regarding the development of the project and the trustees consider the financial position of the charity to be satisfactory.
In distributing funds throughout Denbighshire, via Buttle UK, the charity trustees have complied with their duty to have due regards to the guidance on public benefit, published by the Charity Commission, in exercising their powers and duties.
Financial review
The trustees will continue to ensure that financial resources are managed wisely in the best interest of the charity and to enable the maintenance and development of the charity's assets in support of the charitable objectives.
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 between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Details of movements in fixed assets are set out in the notes to the accounts. The improvements to the freehold investment property are not included on the balance sheet, but written off when the expense is incurred.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a company limited by guarantee and is, therefore, governed by a Memorandum and Articles of Association.
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DENBIGHSHIRE FOYER LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr H Ferdinando Mr D Manifold Mrs E Frodsham Mr L Delaney Mrs C Jones (Resigned 27 October 2021) Mr J White (Resigned 11 November 2021) Mrs M Owen Mr D Berry (Appointed 15 April 2021) Mr W Jones (Appointed 15 April 2021)
The trustees are recruited from a known base of individuals wishing to serve as trustees and who have the required skills, attributes and local knowledge. Howard Ferdinando is the administrator who manages the day to day administration of the charity.
Trustees are appointed by the election at the Annual General Meeting. The induction process for any newly appointed trustees includes an induction to the objectives, scope and policies of the charity and a skills analysis to assess their strengths and weaknesses which may require further training.
Statement of trustee's responsibilities
The trustees, who are also the directors of Denbighshire Foyer Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts 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.
The trustees' report, including the strategic report, was approved by the Board of Trustees.
Mr H Ferdinando trustee
17 November 2022
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DENBIGHSHIRE FOYER LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF DENBIGHSHIRE FOYER LIMITED
I report to the trustees on my examination of the financial statements of Denbighshire Foyer Limited (the charity) for the year ended 31 March 2022.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements 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 financial statements carried out under section 145 of the Charities Act 2011 (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
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 charity as required by section 386 of the 2006 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 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
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4 the financial statements 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 financial statements to be reached.
Sage & Company Business Advisors Ltd
102 Bowen Court St Asaph Business Park ST ASAPH Denbighshire LL17 0JE
Dated: 17 November 2022
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DENBIGHSHIRE FOYER LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| **Unrestricted ** | Unrestricted | Unrestricted | ||||
|---|---|---|---|---|---|---|
| funds | funds | |||||
| 2022 | 2021 | |||||
| Notes | £ | £ | ||||
| Income from: | ||||||
| Investments | 3 | 39,826 | 37,664 | |||
| Expenditure on: | ||||||
| Charitable activities | 4 | 48,012 | 46,696 | |||
| Net expenditure | for the year/ | |||||
| Net movement in funds | (8,186) | (9,032) | ||||
| Fund balances at | 1 April 2021 | 247,122 | 256,154 | |||
| Fund balances at 31 March 2022 | 238,936 | 247,122 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities and are all unrestricted funds.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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DENBIGHSHIRE FOYER LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Fixed assets Investment properties 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ 2,535 46,196 48,731 (5,795) |
£ 196,000 42,936 238,936 238,936 238,936 |
2021 £ 1,800 51,548 53,348 (2,226) |
£ 196,000 51,122 |
|---|---|---|---|---|
| 247,122 | ||||
| 247,122 | ||||
| 247,122 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 17 November 2022
Mr H Ferdinando Trustee
Company Registration No. 03335317
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DENBIGHSHIRE FOYER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
| Notes Cash flows from operating activities Cash absorbed by operations 12 Investing activities Investment income received Net cash generated from investing activities Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ £ (45,178) 39,826 39,826 - (5,352) 51,548 46,196 |
2021 £ £ (42,908) 37,664 37,664 - (5,244) 56,792 51,548 |
|---|---|---|
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DENBIGHSHIRE FOYER LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
Denbighshire Foyer Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Sage & Company, Chartered Accountants, 102 Bowen Court, St Asaph Business Park, St Asaph, LL17 0JE.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, 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 charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. 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 charity 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.
The trustees have considered the potential implications of the Coronavirus (COVID-19) pandemic. Whilst the eventual financial impact of the pandemic on the charity, and on the overall economy, remains uncertain, the trustees are confident that the charity will be able to remain operational throughout the pandemic.
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 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 charity.
1.4 Income
Income is recognised when the charity 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 charity 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.
Legacies are recognised on receipt or otherwise if the charity 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.
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DENBIGHSHIRE FOYER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is included on an accruals basis and is allocated to the relevant fund
1.6 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
[Property rented to a group entity is accounted for as tangible fixed assets.]
1.7 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.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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 charity’s contractual obligations expire or are discharged or cancelled.
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DENBIGHSHIRE FOYER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
2 Critical accounting estimates and judgements
In the application of the charity’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 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Rental income | 39,821 | 37,639 |
| Interest receivable | 5 | 25 |
| 39,826 | 37,664 |
4 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| Heading 1 | Heading 1 | |
| 2022 | 2021 | |
| £ | £ | |
| Light, heat & power | 13,195 | 7,404 |
| Property repairs & maintenance | 1,200 | 4,288 |
| Premises insurance | 2,030 | 4,281 |
| Legal & professional fees | 3,416 | 4,154 |
| Accountancy | 744 | 769 |
| Room Hire | 180 | - |
| Sundry | 27 | - |
| 20,792 | 20,896 | |
| Grant funding of activities (see note 5) | 27,220 | 25,800 |
| 48,012 | 46,696 |
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DENBIGHSHIRE FOYER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
5 Grants payable
| Charitable | Charitable | |
|---|---|---|
| Expenditure | Expenditure | |
| Heading 1 | Heading 1 | |
| 2022 | 2021 | |
| £ | £ | |
| Grants to institutions: | ||
| Other | 27,220 | 25,800 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| Total There were no employees whose annual remuneration was more than £60,000. |
2022 Number - |
2021 Number - |
|---|---|---|
8 Investment property
| Investment property | |
|---|---|
| 2022 | |
| £ | |
| Fair value | |
| At 1 April 2021 and 31 March 2022 | 196,000 |
Investment property comprises of one property on Marsh Road, Rhyl. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Guy Woodcock Chartered Surveyors in 2017. Guy Woodcock are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties at that time and the trustees believe there to be no material fluctuation in that valuation as at the balance sheet date.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Freehold | 196,000 | 196,000 |
| Long leasehold | - | - |
| Short leasehold | - | - |
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DENBIGHSHIRE FOYER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 9 | Debtors | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Amounts falling due within one year: | £ | £ | ||||
| Prepayments and accrued income | 2,535 | 1,800 | ||||
| 10 | Creditors: amounts falling due within one year | |||||
| 2022 | 2021 | |||||
| £ | £ | |||||
| Accruals and deferred income | 5,795 | 2,226 | ||||
| 11 | Related party transactions | |||||
| There were no disclosable related party transactions during the year (2021 - none). | ||||||
| 12 | Cash generated from operations | 2022 | 2021 | |||
| £ | £ | |||||
| Deficit for the year | (8,186) | (9,032) | ||||
| Adjustments for: | ||||||
| Investment income recognised in statement of financial activities | (39,826) (37,664) |
|||||
| Movements in working capital: | ||||||
| (Increase)/decrease in debtors | (735) | 2,318 | ||||
| Increase in creditors | 3,569 | 1,470 | ||||
| Cash absorbed by operations | (45,178) (42,908) |
|||||
| 13 | Analysis of changes in net funds | |||||
| The charity had no debt during the year. |
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