Company registration number: 03709263 Charity registration number: 1076031
Garston and District Community Council
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2022
Whitnalls
Whitnalls Trident House 105 Derby Road Liverpool L20 8LZ
Garston and District Community Council
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Chairman's Report | 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 17 |
Garston and District Community Council
Reference and Administrative Details
J Wharton (Died 11 January 2023) M R V Black M W Axworthy D M Hulme R Lovering D Walsh C E Humphreys Reading Room Activities Centre 2 Wellington Street Liverpool Merseyside L19 2LX 03709263
Trustees
Principal Office
Company Registration Number 03709263 Charity Registration Number 1076031 Independent Examiner Whitnalls Whitnalls Trident House 105 Derby Road Liverpool L20 8LZ
Page 1
Garston and District Community Council
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022.
Objectives and activities
Objects and aims
Garston and District Community Council aim to provide:
Capacity building activities and support for community and voluntary organisations in the area of benefit; acting as an umbrella organisation for groups; providing a focal point for taking up issues which will improve the quality of life; provide office facilities for local residents; provide a production base for a community newspaper; provide a community centre for social and recreational activities.
Public benefit
Details are provided within the body of our report, in particular in 'Achievements and performance'.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
2021/2022 was another difficult year as a result of the Covid-19 pandemic which restricted the use of the Centre due to lockdown and other restrictions. However, with the assistance of Liverpool City Council grants and the Job Retention Scheme the charity has survived the year and achieved a surplus. The trustees are optimistic about the activities going forward.
Financial review
Policy on reserves
The trustees have agreed that surplus funds should be used to create a small reserve to provide for the long term financial stability of the organisation. This fund is required to enable us to meet potential liabilities outside of producing an annual programme of work, e.g. maternity leave, long term sickness, and loss of funding.
Structure, governance and management
Nature of governing document
Garston and District Community Council is a company limited by guarantee, not having a share capital. The liability of the trustees is limited. It is goverened by its Menorandum and Articles of Association and covers the Companies Act 1985 and 1989.
Recruitment and appointment of trustees
As set out in the Memorandum and Articles of Association at an AGM the members accept the retirement of those trustees who wish to retire or who are retiring by rotation, and elect persons to be trustees to fill the vacancies arising.
All members are circulated with invitations to nominate trustees prior to the AGM advising them of retiring trustees and requesting nominations for the AGM.
Any other power to appoint and terminate membership is in compliance with the Memorandum & Articles.
Page 2
Garston and District Community Council
Trustees' Report
Organisational structure
The board and sub-committee meet every six weeks, and public meetings and forums have been held on a wide range of subjects on the request of membership.
Relationships with related parties
Liverpool City Council
Liverpool City Council has provided grant aid to the charity. This provides an essential contribution to the charity achieving its charitable aims and objectives.
The annual report was approved by the trustees of the charity on 26 April 2023 and signed on its behalf by:
.........................................
C E Humphreys
Trustee
Page 3
Garston and District Community Council
Chairman's Report
The charity has had another difficult year due to the Covid 19 Pandemic which resulted in further lockdowns and delays in customers returning to use the charity's facilities at its Centre. This resulted in reduced income at the beginning of the year although it did improve as the year progressed. The charity would have made a loss of over £5,000 but thanks to Liverpool City Council and the Government Covid - 19 support grants a surplus has been achieved and this will be used to support the charity whilst it continues to re-establish itself.
The Grant towards the expenses of one part time staff member and part cost of running the Reading Rooms was approved for the year 2021/22 financial year by Liverpool City Council.
Funding from Liverpool City Council for 2021/22 was set at £8,000 which means we must continue to try and raise funds by special events and applying to funding bodies which at present is quite difficult. Since the year end the Centre has continued to see an increase in activity and the Trustees remain positive about the future.
I personally would like to thank Sue and all of the volunteers for their continued hard work at the Reading Room running a varied programme of activities during these difficult times.
Thanks also to the Board of Trustees’ for their continued support over the last, challenging 12 months.
..................................... Roy Lovering Chairperson
Page 4
Garston and District Community Council
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Garston and District Community Council for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
Garston and District Community Council
Independent Examiner's Report to the trustees of Garston and District Community Council
I report on the accounts of the charity for the year ended 31 March 2022 which are set out on pages 7 to 17 .
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;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to 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’ and the 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:
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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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.
...................................... S Murphy Whitnalls Trident House 105 Derby Road Liverpool L20 8LZ
26 April 2023
Page 6
Garston and District Community Council
Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total Income Expenditure on: Charitable activities 5 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total Income Expenditure on: Charitable activities 5 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 |
Unrestricted funds £ 30,629 1,990 32,619 (23,478) (23,478) 9,141 9,141 61,469 70,610 Unrestricted funds £ 12,307 975 13,282 (13,116) (13,116) 166 166 61,303 61,469 |
Restricted funds £ 24,358 - 24,358 (24,358) (24,358) - - - - Restricted funds £ 18,978 - 18,978 (18,978) (18,978) - - - - |
Total 2022 £ 54,987 1,990 |
|---|---|---|---|
| 56,977 | |||
| (47,836) | |||
| (47,836) | |||
| 9,141 | |||
| 9,141 61,469 |
|||
| 70,610 | |||
| Total 2021 £ 31,285 975 |
|||
| 32,260 | |||
| (32,094) | |||
| (32,094) | |||
| 166 | |||
| 166 61,303 |
|||
| 61,469 |
All of the charity's activities derive from continuing operations during the above two periods.
Page 7
Garston and District Community Council
(Registration number: 03709263) Balance Sheet as at 31 March 2022
| Note Fixed assets Tangible assets 9 Current assets Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 11 |
2022 £ 49,483 27,361 (6,235) 21,126 70,609 70,610 70,610 |
2021 £ 51,297 14,447 (4,275) |
|---|---|---|
| 10,172 | ||
| 61,469 | ||
| 61,469 | ||
| 61,469 |
For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 7 to 17 were approved by the trustees, and authorised for issue on 26 April 2023 and signed on their behalf by:
......................................... C E Humphreys Trustee
Page 8
Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Charity status
The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Garston and District Community Council meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Income and endowments
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 the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Gift aid
Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.
Page 9
Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
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.
Tangible fixed assets
Individual fixed assets costing £250.00 or more are initially recorded at cost.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Page 10
Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income 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.
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Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
3 Income from donations and legacies
| Donations and legacies; Donations from individuals Grants, including capital grants; L.C.C. Grant Subscriptions Holiday club Other income from donations and legacies |
Unrestricted funds General £ Other £ 1,708 - 19,067 - 7,852 - - - - 2,002 28,627 2,002 |
Restricted funds £ - - - 24,358 - 24,358 |
Total 2022 £ 1,708 19,067 7,852 24,358 2,002 54,987 |
Total 2021 £ - 20,200 2,004 8,978 103 |
|---|---|---|---|---|
| 31,285 |
4 Income from other trading activities
| Miscellaneous income | Unrestricted funds General £ 1,990 1,990 |
Total 2022 £ 1,990 1,990 |
Total 2021 £ 975 |
|---|---|---|---|
| 975 |
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Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
5 Expenditure on charitable activities
| Note Allocated support costs 6 Governance costs 6 Holiday club payments Light, heat and power Insurance Repairs and maintenance Telephone and fax Other costs Accountancy fees Wages and salaries Depreciation Rent & rates Legal & Professional fees |
Unrestricted funds General £ - 7,581 7,581 Unrestricted funds General £ - - 1,814 496 491 761 921 - 1,814 1,134 150 7,581 |
Restricted funds £ 19,555 4,803 24,358 Restricted funds £ 8,460 2,269 300 2,135 100 - - 11,094 - - - 24,358 |
Total 2022 £ 19,555 12,384 31,939 Total 2022 £ 8,460 2,269 2,114 2,631 591 761 921 11,094 1,814 1,134 150 31,939 |
Total 2021 £ 12,632 19,462 |
|---|---|---|---|---|
| 32,094 | ||||
| Total 2021 £ 8,978 5,062 2,111 7,817 785 79 810 3,654 1,822 976 - |
||||
| 32,094 |
£7,581 (2021 - £13,116) of the above expenditure was attributable to unrestricted funds and £24,358 (2021 - £18,978) to restricted funds.
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Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
6 Analysis of governance and support costs
Charitable activities expenditure
| Charitable activities expenditure | |||
|---|---|---|---|
| Unrestricted funds Basis of allocation General £ Wages - Holiday club payments 15,897 15,897 Governance costs Unrestricted funds General £ Audit fees Other fees paid to auditors 921 Legal fees 150 Depreciation, amortisation and other similar costs 1,814 Other governance costs 4,696 7,581 7 Net incoming/outgoing resources Net incoming resources for the year include: Depreciation of fixed assets |
Restricted funds £ 11,095 8,460 19,555 Restricted funds £ - - - 4,803 4,803 |
Total 2022 £ 11,095 24,357 35,452 Total 2022 £ 921 150 1,814 9,499 12,384 2022 £ 1,814 |
Total 2021 £ 3,654 8,978 |
| 12,632 | |||
| Total 2021 £ 810 - 1,822 16,830 |
|||
| 19,462 | |||
| 2021 £ 1,822 |
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
9 Tangible fixed assets
| 9 Tangible fixed assets |
|||
|---|---|---|---|
| Cost At 1 April 2021 At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Land and buildings £ 87,250 87,250 36,645 1,745 38,390 48,860 50,605 |
Furniture and equipment £ 11,415 11,415 10,723 69 10,792 623 692 |
Total £ 98,665 |
| 98,665 | |||
| 47,368 1,814 |
|||
| 49,182 | |||
| 49,483 | |||
| 51,297 |
Page 15
Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
10 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals 11 Funds Unrestricted funds General Other Total unrestricted funds Restricted funds Total funds Unrestricted funds General Other Total unrestricted funds Restricted funds Total funds |
Balance at 1 April 2021 £ (61,469) - (61,469) - (61,469) Balance at 1 April 2020 £ (61,303) - (61,303) - (61,303) |
Incoming resources £ (30,617) (2,002) (32,619) (24,358) (56,977) Incoming resources £ (13,179) (103) (13,282) (18,978) (32,260) |
2022 £ 484 4,026 1,725 6,235 Resources expended £ 23,478 - 23,478 24,358 47,836 Resources expended £ 13,116 - 13,116 18,978 32,094 |
2021 £ - 2,633 1,642 |
|---|---|---|---|---|
| 4,275 | ||||
| Balance at 31 March 2022 £ (68,608) (2,002) |
||||
| (70,610) - |
||||
| (70,610) | ||||
| Balance at 31 March 2021 £ (61,366) (103) |
||||
| (61,469) - |
||||
| (61,469) |
Page 16
Garston and District Community Council
Notes to the Financial Statements for the Year Ended 31 March 2022
12 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 49,483 27,361 (6,235) 70,609 |
Total funds £ 49,483 27,361 (6,235) 70,609 |
|---|---|---|
13 Analysis of net funds
| 13 Analysis of net funds | ||
|---|---|---|
| At 1 April 2021 £ Cash at bank and in hand 14,447 Net debt 14,447 |
Cash flow £ 12,914 12,914 |
At 31 March 2022 £ 27,361 |
| 27,361 |
Page 17