2020-08-31-accounts

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Company registration number 03709565 Charity registration number: 1074500

Newent Initiative Trust

(A company limited by guarantee) Annual Report and Financial Statements For the Year Ended 31 August 2020

The Practice Chartered Management Accountants 2 New Street Ledbury Herefordshire HR8 2DX

Newent Initiative Trust

Reference and Administrative Details:

Charity Name: Newent Initiative Trust Charity Registration Number: 1074500 Company Registration Number: 3709565 Principal Office: 36 Broad Street Newent GL18 1AJ Registered Office: 36 Broad Street Newent GL18 1AJ

Trustees:

Mr E Heathfield Mrs Linda Stonyer Mr M S Draper Mr T B Fowler Rev S I V Mason Mrs K Greenwold Mr K Urch Chairman Mrs M J Highton,

Secretary: Mrs Alison Offord Lloyds TSB Bank plc Bankers: PO Box 1000 BX1 1LT

Accountant:

The Practice Andrew Nash FCMA 2 New Street Ledbury HR8 2DX

Newent Initiative Trust

Trustees’ Report:

Trustees' Report for Year Ending 31/08/2020

The Trust, just as many other organisations in the charitable sector had planned for a year of development: this unfortunately changed significantly with the outbreak of COVID.

The challenges faced, although unknown at the time of the initial outbreak, were to totally change the way in which The Trust was to conduct its operations. Normal community practices and youth operations from its centre in Broad Street were curtailed, impacting significantly upon the community that it serves.

The Trust endeavoured to continue to deliver its services from a distance to those families and young people isolated and, in most need, ensuring that by working closely with our community partners the impact of the virus was minimised. Food and gift parcels were prepared and regularly delivered to several vulnerable families, young people, and isolated adults.

The Trust, having been forced to refocus its business, placed its employees on furlough and encouraged its volunteers to support the delivery of Trust’s activities in ways in which it best suited the wider community.

With the Centre closed, it provided the ideal opportunity to continue and complete the planned refurbishment of the ground floor of the building, installing new flooring, lighting and kitchen, in anticipation of restrictions being lifted and returning to a new normal way of life.

The Valegro Project is nearing completion, the statue having been cast and the stone plinth completed, it is currently proposed to install this unique sculpture within the setting of Newent’s Market Square adjacent to its ancient Market House towards the end of 2020.

The Trust now looks forward to achieving another of its objectives, that of working with local youth organisations to fund and construct a multi-wheeled skatepark facility.

Funding remains a priority but during these difficult times, income from funders is naturally restricted as financial support has justifiably been repurposed for support of COVID related activities.

Fortunately, through the support of The Trust’s team and their significant efforts we should be able to continue to provide our much-valued services in the months and years to come.

Small Company Provisions

This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006

Approved by The Board and signed on its behalf ……………………………………………..

Keith C .Urch

Chair of Trustees

Newent Initiative Trust

23[rd] August 2021

Independent Examiner’s Report to the Trustees of

Newent Initiative Trust

I report on the accounts of the company for the year ended 31 August 2020, which are set out on pages 5 to 12.

Respective responsibilities of trustees and examiner:

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Examine the accounts under section 145 of the 2011 Act;
Follow the procedures laid down in the General Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act; and
State whether particular matters have come to my attention.

Basis of independent examiner’s report:

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’; therefore, this report is limited to those matters set out in the statement below.

Independent examiner’s statement:

In connection with my examination no matter has come to my attention:

1) which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Andrew Nash FCMA The Practice

Andrew Nash FCMA The Practice 2 New Street, Ledbury, HR8 2DX

Newent Initiative Trust

Statement of Financial Activities (including Income and Expenditure Account) for the Year ended 31 August 2020

Unre- stricted Funds Restricted Funds Total Funds 2020 Total Funds 2019	Unre- stricted Funds Restricted Funds Total Funds 2020 Total Funds 2019
Note	£ £ £ £
Incoming resources
Incoming resources from gen- erated funds
Voluntary Income 2	1,389 23,206 24,595 78,653
Investment income 4	— 80 80 920
Incoming resources from chari- table activities 5 1,385 1,811 3,196 22,766
Total incoming resources 2,774 25,096 27,870 102,339

Resources expended
Charitable activities 6 — 27,262 27,262 91,641
Total resources expended — 27,262 27,262 0 91,641

Net movement in funds	2,774 -2,166 608 10,698

Reconciliation of funds
Total funds brought forward 38,209 116,310 154,519 143,818
Total funds carried forward 40,983 114,144 155,127 154,519

The notes on pages 7-12 form an integral part of these financial statements.

Newent Initiative Trust (Registration number: 03709565)

Balance Sheet as at 31 August 2020

2020	2020	2019	2019
Note £	£	£	£

Fixed Assets Tangible assets 11 Current Assets Cash at bank and in hand 48,761 Creditors: Amounts falling due within one year 12 -894 Net Current Assets Net Assets The Funds of the Charity: Restricted Funds Unrestricted funds Unrestricted income funds Total Charity funds	107,260 47,867 155,127 114,145 40,982 155,127	44,802 -894	110,611 43,908
			154,519

			116,308
			38,211
			154,519

For the financial year ended 31 August 2019, the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476.

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 and with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Approved by the Board on 23[rd] August and signed on its behalf by

Keith C .Urch Chair of Trustees Newent Initiative Trust 23[rd] August 2021

The notes on pages 9-14 form an integral part of these financial statements.

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

1. Accounting Policies

Basis of preparation:

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities (SORP 2005)’, issued in March 2005, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006.

Fund accounting policy:

Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity.

Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Further details of each fund are disclosed in Note 15.

Incoming resources:

Grants that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract or where entitlement to grant funding is subject to specific performance conditions. Grant income included in this category provides funding to support programme activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Resources expended:

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of generating funds are the costs associated with attracting voluntary income.

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 on an indirect nature necessary to support them.

Fixed assets:

Individual fixed assets costing £500 or more are initially recorded at cost.

Depreciation:

Depreciation is provided on tangible fixed assets so as to write of the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Freehold Property 2% straight Line basis

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

Continued …

Investment properties:

Certain of the charity’s properties are held for long-term investment. Investment properties are accounted for in accordance with FRSSE, as follows:

This treatment as regards the charity’s investment properties may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the trustees consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

2. Voluntary income

2. Voluntary income
	Unre- stricted Funds	Restricted Funds 2020 2019
	£	£ £ £
Donations and legacies
Other grants & donations	1,389	22,461 23,850 75,935

Grants
Grants from public bodies	—	745 745
	1,389	23,206 24,595 75,935

3. Grants receivable

3. Grants receivable
	Unre- stricted Funds	Restricted Total Funds 2020 Total Funds 2019 Funds

	£	£ £ £
Grants from public bodies		745 745 2,718
Other grants & donations	1,385	1,385 19,458
	1,385	745 2,130 22,176

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

Continued …

4. Investment Income

4. Investment Income
	Unre- stricted Funds	Restricted Funds Total Funds 2020 Total Funds 2019
	£	£ £ £
Rental income		80 80 920
Interest on cash deposits
		80 80 920

5. Incoming resources from charitable activities

	Unre- stricted Funds Restricted Funds Total Funds 2020 Total Funds 2019	Unre- stricted Funds Restricted Funds Total Funds 2020 Total Funds 2019
	£	£ £ £
Grants from Public Bodies
Other grants and donations	1,385	1,509 2,894 19,189
Activities in furtherance of the charita- ble objectives	301 301 3,577
	1,385 1,811 3,196 22,766

6. Total resources expended

6. Total resources expended	6. Total resources expended	6. Total resources expended
Unre- stricted Funds Restricted Funds			Charitable activities	Total
Direct Costs			£	£
Grants Paid Out			12716	12716
Young Careers			-6124	-6124
Youth Club			9710	9710
Cost of goods sold		2,270	2,635	2,261
Employment costs		16,399	0	0
Telephone		339	330	330
Insurance		801	0	0
Light & Heat		954	1637	1637
Cleaning		1,394	539	539
Repairs and maintenance		1,202	0	0
Printing, posting and stationery		0	100	100
Subscriptions and donations	3,738	5,180	0	0
Sundry and other costs		4,241	95	95
Legal and professional costs		905	2273	2273
Depreciation of tangible fixed assets 3,351			3,351	3,351
3738.07 37035.35			27,262	27,262

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

Continued …

7. Trustees’ remuneration and expenses

No trustees received any remuneration during the year.

8. Net income/(expenditure)

8. Net income/(expenditure)
Net income/Expenditure is stated after charging
	2020 £	2019
		£
Depreciation of tangible fixed assets	3,351	3,351

9. Employees’ remuneration

The average number of persons employed by the charity (including trustees) during the year was as follows:

2020	2020	2019

7		7

	2020 £	2019
		£
	9,710	15,808

No employee received enrolments of more than £60,000 during the year (2018 – No.0)

10. Taxation

The company is a registered charity and is, therefore, exempt from taxation.

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

Continued …

11. Tangible Fixed Assets

Unre- stricted Funds	Freehold interest in land and build- ings	Fixtures fittings and equipment	Total
	(including
	heritage assets)
	£	£	£
Cost
As at 31st August 2019	167,560	7,733	175,293

Depreciation
As at 1st September 2019	56,949	7,733	64,682
Charge for the year	3,351	-	3,351
As at 31st August 2020	60,300	7,733	68,033
	-	-	-
Net book value	-		-
As at 31st August 2019 0	110,611	-	110,611
As at 31st August 2020	107,260	-	107,260

12. Creditors : Amounts falling due within one year

12. Creditors : Amounts falling due within one year
	2019 £	2018 £
Accruals & deferred income	894	894

13. Members’ Liability

The liability of each member in the event of a winding up is limited to £1

Newent Initiative Trust

Notes to the Financial Statements for the Year Ended 31 August 2020

Continued …

14. Related Parties

Controlling entity

The charity is controlled by the trustees who are all directors of the company.

15. Analysis of Funds

15. Analysis of Funds	15. Analysis of Funds	15. Analysis of Funds	15. Analysis of Funds
At 1 Sep- tember 2019 Incoming Re- sources Re- sources Ex- pended At 31 Au- gust 2020 £ £ £ £
		£	£ £
General Funds
General Funds (unrestricted) 13,611 1,385 3,376 11,620

Resticted Funds
Chillout Zone	127,690	26,735	28,553 125,872
Joe Meek Events	579	—	— 579
Valegro	18,916	-250	-6,829 25,495
Chess	200	—	— 200
Youth Activity	4,500	—	— 4,500
Community Plan Update	—	—	— —
International Friendship Group	407	—	— 407
Kitchen Thriving Communities	-13,566	—	2,161 -15,727
Community Centre maintenance fund		—	—
Repair Café	473	—	— 473
Skate Park 1,708 — — 1,708
140,907 26,485 23,885 143,507

16. Net assets by fund

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Unre-
Restricted Total Total
stricted
Funds Funds Funds Funds
2020 2019
£ £ £ £
Tangible assets 107,260 107,260 110,611
Current assets 46,056 2,704 48,760 44,801
Creditors: Amounts falling due within
-894 -894 -894
one year
Net Assets 45,162 109,964 155,126 154,518
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