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2024-03-31-accounts

Registered number: 04343988 Charity number: 1091241

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 5
Independent auditors' report on the financial statements 6 - 9
Statement of financial activities 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 26

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024

Trustees

Mrs S Hodgson, Trustee Mr D Davison, Trustee (resigned 12 February 2024)

Mr R Sherry, Trustee Mr I L Williams, Trustee Ms P Bland, Trustee Ms M Holmes, Trustee Mr M Ricketts, Trustee Mrs A Rawson, Trustee (appointed 30 October 2024)

Company registered number

04343988

Charity registered number

1091241

Registered office

Inspire Bradford Business Park, Newlands House One, Bradford, West Yorkshire, BD10 0JE

Company secretary

Mrs S Hodgson

Independent auditors

BHP LLP, New Chartford House, Centurion Way, Cleckheaton, Bradford, BD19 3QB

Bankers

Santander, Bootle, Merseyside, L30 4DB

Page 1

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report together with the audited financial statements of the company for the year 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 charitable company comply with the current statutory requirements, the requirements of the charitable company'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 company 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

Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

In particular the trustees consider how planned activities will contribute to the aims and objectives they have set.

Strategies for achieving objectives

The chartiy's aims, objectives and activities are reviewed each year. This review looks at the activities undertaken in the previous year to ensure that benefits have been brought to those the charity was set up to help, the review also helps to ensure the activities remain focused on the stated aims and objectives.

Activities for achieving objectives

In order to further these objects the charity has promoted a number of projects that will bring benefit to the community by providing and improving local facilities. The charity has developed sites donated by Bradford Metropolitan District Council (BMDC) with a view to creating an income stream from these properties to provide funds for future ongoing community projects.

Main activities undertaken to further the charity's purposes for the public benefit

Throughout this last year NCA (Charity) has continued to support local community organisations, either through waiving of rent, rent subsidies or other support.

Supporting local organisations:

Page 2

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Objectives and activities (continued)

Subsidised or waived rent to charities/VCS:

NCA has continued to support the very small organisations working in the Newlands area, who need ‘hand holding’.

Supporting local work:

NCA has continued to support work in the Fagley area and NCA (Trading) continue to employ a Community Engagement Worker with the specific remit for Fagley.

NCA has been working more closely with Council Neighbourhood Services, especially community wardens to share information on local activities and groups and to connect Wardens to other organisations, statutory and voluntary, working in the Newlands area.

Achievements and performance

Key performance indicators

During the year income before investment gains/losses has exceeded expenditure by £606,288 (2023 - £559,243). The total funds of the charity have decreased from £6,666,503 to £6,107,969. There were free reserves of £2,885,432 available as at 31 March 2024 (2023 - £2,263,544).

The trading subsidiary made an operating profit of £30,800 (2023 - £531,650). The subsidiary's total recognised gains and losses for the year was a loss of £54,006 (2023 - gain of £463,360).

The trustees are working towards establishing a policy whereby the unrestricted funds not committed or invested in tangible fixed assets, the free reserves, are aimed to be held at a minimum figure of £20,000 by the charity. At this level free reserves would be sufficient to allow the charity to continue should there be a significant drop in funding whilst the trustees considered alternative sources. The trustees operate a strict budgeting and financial forecasting system that should alert them to any potential problems in advance.

Review of activities

During the year Newlands Community Association has:

•continued to strengthen working relationships between the charity, local groups and organisations

•continued to support Bradford North Food Bank by encouraging donations

•Children’s Place closed the nurseries on Thorpe Edge and Ravenscliffe – NCA worked to identify an alternative provider. As a result, Sherwood Green nursery took over the nursery premises at Gateway Centre, Ravenscliffe in November 2023. Bloomin Buds at the Rockwell Centre have developed family friendly activities to support the local community.

Page 3

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Financial review

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

Structure, governance and management

Constitution

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on August 2003, charity number 1091241.

The principal object of the company is to relieve poverty, advance education and provide, and assist in the provision of facilities for recreation or leisure time, thus improving the quality of life for the inhabitants of Bradford, in particular the districts of Greengates, Ravenscliffe, Thorpe Edge, Bradford Moor, Thornbury and Fagley.

There have been no changes in the objectives since the last annual report.

Methods of appointment or election of Trustees

Trustees are appointed by and for the membership at the Annual General Meeting. There are currently seven trustees, all trustees give their time voluntarily and receive no benefit from the charity, any expenses reclaimed from the charity are set out in the notes to the accounts.

As set out in the Articles of Association there shall always be a minimum of seven trustees and a maximum of sixteen. The Chair, Vice Chair and Treasurer (Officers) are elected by the trustees. Officers retire after the conclusion of the next Annual General Meeting but are eligible for re-election. No two trustees from the same organisation may be elected as officers.

Related party relationships

The charity has a 100% owned trading subsidiary, Newlands Community Association (Trading) Limited, Company number 04389186, which owns property and receives rental income. Any profits made by the trading subsidiary are gift aided to the charity.

In relation to the ongoing loan arrangement between the charity and trading subsidiary, once the external loans are repaid and the relating securities have been removed, the properties may be transferred to the charity in order to repay the inter group loan account.

Page 4

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company 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 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, BHP LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

~~........................................~~ Signer ID: CNNCZSSRCF... ........ Mr I L Williams (Trustee)

Date: 16/12/2024 GMT

Page 5

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

(A company limited by guarantee)

NEWLANDS COMMUNITY ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWLANDS COMMUNITY ASSOCIATION

We have audited the financial statements of Newlands Community Association (the ‘charitable company’) for the year ended 31 March 2024, which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWLANDS COMMUNITY ASSOCIATION (CONTINUED)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 7

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

(A company limited by guarantee)

NEWLANDS COMMUNITY ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWLANDS COMMUNITY ASSOCIATION (CONTINUED)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters which we are required to address

The prior period financial statements were not subject to an audit.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

(A company limited by guarantee)

NEWLANDS COMMUNITY ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWLANDS COMMUNITY ASSOCIATION (CONTINUED)

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Signer ID: S7I882WVPX... Lesley Kendrew (Senior statutory auditor)

for and on behalf of

BHP LLP

New Chartford House Centurion Way Cleckheaton Bradford BD19 3QB

Date: 16/12/2024 GMT

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Note
Income from:
Donations and legacies
3
Investments
4
Total income
Expenditure on:
Raising funds
Charitable activities
5
Total expenditure
Net income/(expenditure) before net
(losses)/gains on investments
Net (losses)/gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2024
£
611,316
59,873
671,189
500
63,401
63,901
607,288
(1,164,822)
(557,534)
6,665,503
(557,534)
6,107,969		 Restricted
funds
2024
£
2,738
-
2,738
-
3,738
3,738
(1,000)
-
(1,000)
1,000
(1,000)
-		 Total
funds
2024
£
614,054
59,873
673,927
500
67,139
67,639
606,288
(1,164,822)
(558,534)
6,666,503
(558,534)
6,107,969		 As restated
Total
funds
2023
£
574,543
41,543
616,086
-
56,843
56,843
559,243
362,992
922,235
5,744,268
922,235
6,666,503

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 26 form part of these financial statements.

Page 10

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

REGISTERED NUMBER: 04343988

BALANCE SHEET

AS AT 31 MARCH 2024

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one year
11
Net current assets
Total net assets
Charity funds
Restricted funds:
Restricted funds
14
Total restricted funds
14
Unrestricted funds
14
Total funds		 2,694,042
202,496
2,896,538
(11,106)
-		 2024
£
686,201
2,536,336
3,222,537
2,885,432
6,107,969
-
6,107,969
6,107,969		 1,712,780
554,069
2,266,849
(2,305)
1,000		 As restated
2023
£
700,801
3,701,158
4,401,959
2,264,544
6,666,503
1,000
6,665,503
6,666,503

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

REGISTERED NUMBER: 04343988

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

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 by:

Signer ID: CNNCZSSRCF... ~~.......................................~~ ......... Mr I L Williams (Trustee)

Date: 16/12/2024 GMT

The notes on pages 14 to 26 form part of these financial statements.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 14 to 26 form part of these financial statements		 2024
£
(371,446)
19,873
19,873
-
(351,573)
554,069
202,496		 2023
£
351,000
1,543
1,543
-
352,543
201,526
554,069

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

1. General information

Newlands Community Association is a charitable company incorporated in England and Wales, company number 04343988. The company is a registered charity in England, charity number 1091241. The principal office is Newlands Community Association, Newlands House, Inspire Business Park, Newlands Way, Bradford, BD10 0JE.

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 Act 2006.

Newlands Community Association 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.

2.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.3 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised and refer to the Trustees' report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company 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.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

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Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

All assets costing more than £100 are capitalised.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Land is not depreciated.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliabily in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities incorporating income and expenditure account.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 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.

2.11 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 company 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 within interest payable and similar charges.

Page 17

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.12 Financial instruments

The company 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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 company 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 company 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. Income from donations and legacies

Gift aid donation from subsidiary
Donations received
Government grants
Total 2023		 Unrestricted
funds
2024
£
610,816
500
-
611,316
573,543		 Restricted
funds
2024
£
-
-
2,738
2,738
1,000		 Total
funds
2024
£
610,816
500
2,738
614,054
574,543		 As restated
Total
funds
2023
£
573,543
-
1,000
574,543

Page 18

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

4. Investment income

Rental income
Bank interest receivable
Total 2023		 Unrestricted
funds
2024
£
40,000
19,873
59,873
41,543		 Total
funds
2024
£
40,000
19,873
59,873
41,543		 Total
funds
2023
£
40,000
1,543
41,543

5. Direct costs

Summary by fund type

Governance costs
General charitable activities
Depreciation of tangible assets
Total 2023		 Unrestricted
funds
2024
£
8,801
40,000
14,600
63,401
56,843		 Restricted
funds
2024
£
-
3,738
-
3,738
-		 Total
2024
£
8,801
43,738
14,600
67,139
56,843		 Total
2023
£
2,243
40,000
14,600
56,843

6. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £7,200 ( 2023 - £ - ) , and accounts preparation of £1,710 (2023 - £2,196).

7. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

Page 19

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

7. Trustees' remuneration and expenses (continued)

During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL).

8. Tangible fixed assets

Cost or valuation
At 1 April 2023
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
On disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold land
and property
£
730,001
-
730,001
29,200
14,600
-
43,800
686,201
700,801		 Plant and
machinery
£
3,450
(3,450)
-
3,450
-
(3,450)
-
-
-		 Fixtures and
fittings
£
23,925
(23,925)
-
23,925
-
(23,925)
-
-
-		 Office
equipment
£
8,511
(8,511)
-
8,511
-
(8,511)
-
-
-		 Total
£
765,887
(35,886)
730,001
65,086
14,600
(35,886)
43,800
686,201
700,801

Included in cost or valuation of land and buildings is freehold land of £145,000 (2023 - £145,000).

If land and buildings had not been revalued they would have been included at the following historical cost:

2024 2023
Cost 401,884 401,884
Aggregate depreciation (120,943) (115,428)

Land and buildings were valued on an open market basis on 31 March 2015 by the directors, who referred to desktop valuations prepared by Mark Brearley & Company, Chartered Surveyors in February 2015. The trustees are not aware of any material changes since last valuation, therefore revalued assets included within the financial statements is a true reflection of assets owned by the charity.

Page 20

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

9.
Fixed asset investments
Cost or valuation
At 1 April 2023
Revaluations
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
Principal subsidiaries
The following was a subsidiary undertaking of the company:
Name
Newlands Community Association (Trading) Limited
The financial results of the subsidiary for the year were:
Name
Profit/(Loss)
for the year
£
Newlands Community Association (Trading) Limited
(54,006)		 Investments in
subsidiary
companies
£
3,701,158
(1,164,822)
2,536,336
2,536,336
3,701,158
Holding
100%
Net assets
£
2,536,336

Page 21

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

10. Debtors

Due within one year
Amounts owed by group undertakings		 2024
£
2,694,042
2,694,042		 As restated
2023
£
1,712,780
1,712,780

11. Creditors: Amounts falling due within one year

2024 2023
£ £
Accruals and deferred income 11,106 2,305

12. Financial instruments

2024 2023
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 202,496 554,069

Financial assets measured at fair value through income and expenditure comprise of bank balances.

13. Prior year adjustments

The prior year adjustment is in relation to gift aid donations from the charity's trading subsidiary that had been accounted for as intercompany transfers, as opposed to distributions to charity.

Funds brought forward have increased by £500,000 as a result of the prior period adjustment.

Page 22

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

14. Funds brought forward have increased by £500,000 as a result of the prior period adjustment.

Statement of funds - current year

Unrestricted funds
Reserves
Revaluation reserve
Restricted funds
Warm Space Grant
Total of funds
Statement of funds - prior year
Unrestricted funds
Reserves
Revaluation reserve
Restricted funds
Warm Space Grant
Total of funds		 As restated
Balance at 1
April 2023
£
6,354,202
311,301
6,665,503
1,000
6,666,503
Balance at
1 April 2022
£
5,432,967
311,301
5,744,268
-
5,744,268		 Income
£
671,189
-
671,189
2,738
673,927
As restated
Income
£
615,086
-
615,086
1,000
616,086		 Expenditure
£
(63,901)
-
(63,901)
(3,738)
(67,639)
Expenditure
£
(56,843)
-
(56,843)
-
(56,843)		 Gains/
(Losses)
£
(1,164,822)
-
(1,164,822)
-
(1,164,822)
Gains/
(Losses)
£
362,992
-
362,992
-
362,992		 Balance at 31
March 2024
£
5,796,668
311,301
6,107,969
-
6,107,969
As restated
Balance at
31 March
2023
£
6,354,202
311,301
6,665,503
1,000
6,666,503

Page 23

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

15. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
686,201
2,536,336
2,896,538
(11,106)
6,107,969		 Total
funds
2024
£
686,201
2,536,336
2,896,538
(11,106)
6,107,969

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 As restated
Unrestricted
funds
2023
£
700,801
3,701,158
2,265,849
(2,305)
6,665,503		 Restricted
funds
2023
£
-
-
1,000
-
1,000		 As restated
Total
funds
2023
£
700,801
3,701,158
2,266,849
(2,305)
6,666,503

Page 24

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

16. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Increase in debtors
Increase in creditors
Revaluation of fixed asset investments
Net cash provided by/(used in) operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
18.
Analysis of changes in net debt
At 1 April
2023
£
Cash at bank and in hand
554,069
554,069		 2024
£
(558,534)
14,600
(19,873)
(981,262)
8,801
1,164,822
(371,446)
2024
£
202,496
202,496
Cash flows
£
(351,573)
(351,573)		 2023
£
922,235
14,600
(1,543)
(221,431)
131
(362,992)
351,000
2023
£
554,069
554,069
At 31 March
2024
£
202,496
202,496

Page 25

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a

NEWLANDS COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

19. Related party transactions

During the year, the charitable company received a notional rental donation of £40,000 (2023 - £40,000) in relation to the rents waived of £40,000 (2023 - £40,000) from it's subsidiary Newlands Community Association (Trading) Limited.

Page 26

Document ID: b1d09527dc2e282b4673e1a969eb0bade155db4ad9ecca3809b7563dae3cda5a