REGISTERED COMPANY NUMBER: 04328889 (England and Wales) REGISTERED CHARITY NUMBER: 1105027
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
FOR
SOUTHWATER AREA COMMUNITY CENTRE
Ashdown Hurrey Chartered Accountants & Business Advisers 20 Havelock Road Hastings East Sussex TN34 1BP
SOUTHWATER AREA COMMUNITY CENTRE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | ||
| Notes to the Financial Statements | 6 | to | 11 |
| Detailed Statement of Financial Activities | 12 | to | 13 |
SOUTHWATER AREA COMMUNITY CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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
Objectives and Aims
The primary objective is to establish the community centre to promote the benefit of the inhabitants of the southwater renewal area and surrounding area and the neighbourhood without distinction of sex, sexual orientation, race or of political, religions or other opinions, by associating together the said habitants and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interest of social welfare for recreation and other leisure time occupation with the object of improving the conditions of life of the said inhabitants.
Grantmaking
The charity objectives are such that direct grants are not made as the charity aims to provide a service to the community.
ACHIEVEMENT AND PERFORMANCE
Charitable Activities
The company has achieved its main objective in continuing to run the community centre. The ability to increase the scope of its activities will depend upon the availability of funding in future years.
FINANCIAL REVIEW
Reserves Policy
The reserves policy policy is to ensure that the trustees have a reserve of £30,000 to be carried in a designated fund, to ensure that the centre has sufficient reserves in place to cover any potential downturn in its income stream and to cover any ongoing liabilities that arise from such an event for at least eighteen months. Any surplus over the £30,000 is to be held in the general unrestricted fund.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and Appointment of New Trustees
Any new appointments are at the recommendation of the board and may be any person who is willing to work for the charity's objectives and whom the members of the board feel will be able to perform both their legal and professional responsibilities under charity and company law.
Induction and Training of New Trustees
In the view of the board all the trustees understand the nature of the charity and fully comply with the charity's current views of its progression. They are aware of both their legal and professional responsibilities under the charity and company law. The present board would look to make this knowledge available to any prospective new board member to enable them to discharge their responsibilities fully.
Related Parties
There were no related party transactions during the year.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
04328889 (England and Wales)
Registered Charity number
1105027
Page 1
SOUTHWATER AREA COMMUNITY CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
Registered office
20 Havelock Road Hastings East Sussex TN34 1BP
Trustees
P W Pragnell N M O Hill (resigned 18.5.22) N C Sinden N P Terdre E Farkas K J Towner
Independent Examiner
Stuart Rosling FCCA Ashdown Hurrey Chartered Accountants & Business Advisers 20 Havelock Road Hastings East Sussex TN34 1BP
Approved by order of the board of trustees on 21 December 2022 and signed on its behalf by:
P W Pragnell - Trustee
Page 2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOUTHWATER AREA COMMUNITY CENTRE
Independent examiner's report to the trustees of Southwater Area Community Centre ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Stuart Rosling FCCA Ashdown Hurrey Chartered Accountants & Business Advisers 20 Havelock Road Hastings East Sussex TN34 1BP
Date: 21 December 2022
Page 3
SOUTHWATER AREA COMMUNITY CENTRE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| 31.3.22 | 31.3.21 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| funds | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 17,694 | 5,000 | |
| Other trading activities | 3 | 32,643 | 16,376 |
| Investment income | 4 | 3 | 12 |
| Other income | 5 | - | 20,241 |
| Total | 50,340 | 41,629 | |
| EXPENDITURE ON | |||
| Raising funds | 10 | - | |
| Charitable activities | |||
| Charitable Activities | 48,778 | 33,583 | |
| Total | 48,788 | 33,583 | |
| NET INCOME | 1,552 | 8,046 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 43,841 | 35,795 | |
| TOTAL FUNDS CARRIED FORWARD | 45,393 | 43,841 |
The notes form part of these financial statements
Page 4
SOUTHWATER AREA COMMUNITY CENTRE
BALANCE SHEET 31 MARCH 2022
| BALANCE SHEET 31 MARCH 2022 |
|||
|---|---|---|---|
| 31.3.22 | 31.3.21 | ||
| Unrestricted | Total | ||
| funds | funds | ||
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Tangible assets | 10 | 1,978 | 924 |
| CURRENT ASSETS | |||
| Debtors | 11 | 1,927 | 34 |
| Cash at bank | 46,309 | 44,314 | |
| 48,236 | 44,348 | ||
| CREDITORS | |||
| Amounts falling due within one year | 12 | (1,581) | (1,431) |
| NET CURRENT ASSETS | 46,655 | 42,917 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 48,633 | 43,841 | |
| CREDITORS | |||
| Amounts falling due after more than one year | 13 | (3,240) | - |
| NET ASSETS | 45,393 | 43,841 | |
| FUNDS | 14 | ||
| Unrestricted funds | 45,393 | 43,841 | |
| TOTAL FUNDS | 45,393 | 43,841 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
-
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 21 December 2022 and were signed on its behalf by:
P W Pragnell - Trustee
The notes form part of these financial statements
Page 5
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. STATUTORY INFORMATION
The Southwater Area Community Centre is a private company, limited by guarantee, registered in England & Wales. The company's registered number and registered office address can be found in the Report of the Trustees.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
In preparing the financial statements, the trustees are required to make an assessment of the ability of the charity to continue as a going concern. The trustees have prepared a cash flow forecast and budgets for the charity and against the backdrop of the COVID-19 Pandemic a "reverse stress" test has been applied to the forecasts, seeking to establish the level of liquidity headroom the charity is expected to have during the 12 month going concern period.
On the basis of these forecasts and the fact that the charity has substantial net current assets and net assets, the trustees are confident that the charity has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. As a result of the above, the trustees have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Short Leasehold Premises - Straight Line over period of lease Equipment and Furniture - 25% on Reducing Balance
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
continued...
Page 6
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
2. ACCOUNTING POLICIES - continued
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Government grants
In accordance with s24 of FRS 102 these are treated using the accruals model and so are recognised in income on a systematic basis over the periods in which the charity recognises the related costs for which the grants are intended to compensate.
3. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| Hire of premises | 19,617 | 14,442 |
| Rent of office | 11,596 | 895 |
| Tariff income (EDF) | 1,430 | 1,039 |
| 32,643 | 16,376 | |
| INVESTMENT INCOME | ||
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| Deposit account interest | 3 | 12 |
| OTHER INCOME | ||
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| Government COVID support | - | 20,241 |
4. INVESTMENT INCOME
5. OTHER INCOME
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 31.3.22 | 31.3.21 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 233 | 225 |
| Other operating leases | 420 | 537 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
continued...
Page 7
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
8. STAFF COSTS
| 8. | STAFF COSTS | STAFF COSTS | |||
|---|---|---|---|---|---|
| The average monthly number of employees during the year was as follows: | |||||
| 31.3.22 | 31.3.21 | ||||
| Average monthly number of employees | 2 | 2 | |||
| No employees received emoluments in excess of £60,000. | |||||
| 9. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | ||||
| Unrestricted | |||||
| funds | |||||
| £ | |||||
| INCOME AND ENDOWMENTS FROM | |||||
| Donations and legacies | 5,000 | ||||
| Other trading activities | 16,376 | ||||
| Investment income | 12 | ||||
| Other income | 20,241 | ||||
| Total | 41,629 | ||||
| EXPENDITURE ON | |||||
| Charitable activities | |||||
| Charitable Activities | 33,583 | ||||
| NET INCOME | 8,046 | ||||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 35,795 | ||||
| TOTAL FUNDS CARRIED FORWARD | 43,841 | ||||
| 10. | TANGIBLE FIXED ASSETS | ||||
| Short | Equipment | ||||
| leasehold | & Furniture | Totals | |||
| £ | £ | £ | |||
| COST | |||||
| At 1 April 2021 | 1,248 | 27,211 | 28,459 | ||
| Additions | 1,287 | - | 1,287 | ||
| At 31 March 2022 | 2,535 | 27,211 | 29,746 | ||
| DEPRECIATION | |||||
| At 1 April 2021 | 850 | 26,685 | 27,535 | ||
| Charge for year | 101 | 132 | 233 | ||
| At 31 March 2022 | 951 | 26,817 | 27,768 | ||
| NET BOOK VALUE | |||||
| At 31 March 2022 | 1,584 | 394 | 1,978 | ||
| At 31 March 2021 | 398 | 526 | 924 |
continued...
Page 8
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
| 11. | DEBTORS | |||
|---|---|---|---|---|
| 31.3.22 | 31.3.21 | |||
| £ | £ | |||
| Amounts falling due within one year: | ||||
| Trade debtors | 1,900 | 34 | ||
| Amounts falling due after more than one year: | ||||
| Other debtors | 27 | - | ||
| Aggregate amounts | 1,927 | 34 | ||
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31.3.22 | 31.3.21 | |||
| £ | £ | |||
| Trade creditors | 1,581 | 1,432 | ||
| Social security and other taxes | - | (1) | ||
| 1,581 | 1,431 | |||
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN | ONE YEAR | ||
| 31.3.22 | 31.3.21 | |||
| £ | £ | |||
| Other creditors | 3,240 | - | ||
| 14. | MOVEMENT IN FUNDS | |||
| Net | ||||
| movement | At | |||
| At 1.4.21 | in funds | 31.3.22 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 13,841 | 1,552 | 15,393 | |
| Designated funds | 30,000 | - | 30,000 | |
| 43,841 | 1,552 | 45,393 | ||
| TOTAL FUNDS | 43,841 | 1,552 | 45,393 | |
| Net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 50,340 | (48,788) | 1,552 | |
| TOTAL FUNDS | 50,340 | (48,788) | 1,552 |
continued...
Page 9
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
14. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Comparatives for movement in funds | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.4.20 | in funds | 31.3.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 5,795 | 8,046 | 13,841 |
| Designated funds | 30,000 | - | 30,000 |
| 35,795 | 8,046 | 43,841 | |
| TOTAL FUNDS | 35,795 | 8,046 | 43,841 |
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 41,629 | (33,583) | 8,046 |
| TOTAL FUNDS | 41,629 | (33,583) | 8,046 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.4.20 | in funds | 31.3.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 5,795 | 9,598 | 15,393 |
| Designated funds | 30,000 | - | 30,000 |
| 35,795 | 9,598 | 45,393 | |
| TOTAL FUNDS | 35,795 | 9,598 | 45,393 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| are as follows: | |||
|---|---|---|---|
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 91,969 | (82,371) | 9,598 |
| TOTAL FUNDS | 91,969 | (82,371) | 9,598 |
continued...
Page 10
SOUTHWATER AREA COMMUNITY CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
15. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2022.
Page 11
SOUTHWATER AREA COMMUNITY CENTRE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022 |
||
|---|---|---|
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Grants Received | 17,644 | 5,000 |
| Donations rec'd | 50 | - |
| 17,694 | 5,000 | |
| Other trading activities | ||
| Hire of premises | 19,617 | 14,442 |
| Rent of office | 11,596 | 895 |
| Tariff income (EDF) | 1,430 | 1,039 |
| 32,643 | 16,376 | |
| Investment income | ||
| Deposit account interest | 3 | 12 |
| Other income | ||
| Government COVID support | - | 20,241 |
| Total incoming resources | 50,340 | 41,629 |
| EXPENDITURE | ||
| Other trading activities | ||
| Purchases - Cafe | 10 | - |
| Charitable activities | ||
| Wages | 13,351 | 13,033 |
| Social security | (29) | (119) |
| Pensions | 144 | 136 |
| Cleaning | 420 | 537 |
| Rates and water | 1,444 | 168 |
| Insurance | 1,804 | 1,754 |
| Light and heat | 3,039 | 2,675 |
| Telephone | 726 | 658 |
| Postage and stationery | 232 | 160 |
| Sundry Expenses | 205 | 56 |
| Computer costs | 497 | 713 |
| Repairs and maintenance | 16,615 | 11,945 |
| Workshops and events | 6,031 | - |
| Short leasehold | 101 | 50 |
| Depn of equipment & furniture | 131 | 175 |
| 44,711 | 31,941 | |
| Support costs | ||
| Finance | ||
| Bank charges | 133 | 180 |
| Governance costs | ||
| Accountancy and legal fees | 3,934 | 1,462 |
This page does not form part of the statutory financial statements
Page 12
SOUTHWATER AREA COMMUNITY CENTRE
| SOUTHWATER AREA COMMUNITY CENTRE | ||
|---|---|---|
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES | ||
| FOR THE YEAR ENDED 31 MARCH 2022 | ||
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| Total resources expended | 48,788 | 33,583 |
| Net income | 1,552 | 8,046 |
This page does not form part of the statutory financial statements
Page 13