## **WATLING COMMUNITY ASSOCIATION**
## **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **WATLING COMMUNITY ASSOCIATION**
(limited by guarantee)
## COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021
|**MANAGEMENT COMMITTEE**|Harry Gilling - Chairperson|
|---|---|
||Valerie Edwards – Vice Chairperson|
||Gary Journet|
||Hasu Haria|
||Hamid Omed|
||Rodo H Orellana|
|**SECRETARY**|Valerie Edwards (Miss)|
|**TREASURER**|Anil Shah|
|**CHARITY NUMBER**|1107689|
|**COMPANY NUMBER**|5268484 (England and Wales)|
|**REGISTERED OFFICE**|Watling Centre|
||145 Orange Hill Road|
||Edgware|
||Middlesex|
||HA8 OTR|
|**ACCOUNTANTS:**|Appleday Associates|
||Chartered Accountants|
||192B Station Road|
||Edgware|
||Middlesex|
||HA8 7AR|
2
## **WATLING COMMUNITY ASSOCIATION**
## **REPORT OF THE MANAGEMENT COMMITTE FOR THE YEAR ENDED 31 DECEMBER 2021**
The management committee of Watling Community Centre presents its annual report and the financial statements for the year ended 31 December 2021.
Members of the Management Committee, who are directors for the purpose of the company law and trustees for the purpose of charity law, who served as trustees during the year and up to the date of this report were as follows:
Harry Gilling - Chairperson Valerie Edwards – Vice Chairperson Gary Journet Hasu Haria Hamid Omed Rodo H Orellana
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## Governing Document
The organisation is a charitable company limited by guarantee governed by its Memorandum and Articles of Association. It is registered as a charity with the Charities Commission with registration number 1107689.
## Recruitment and Appointment of Management Committee
The directors of the company are also charity trustees for the purpose of the charity law and are known as members of the Management Committee. A trustee must be a member of the association who is of 18 years of age or over. New trustees are appointed by the existing trustees from members who have put their names forward to be considered for such an appointment.
Members of the management committee have no beneficial interest in the organisation.
## Management Committee Induction and Training
Most members of the management committee are familiar with the practical work of the charity. New members of the management committee are briefed by the chief executive of the charity so as to familiarise them with the charity and the context within which it operates. This covers:
- The obligations of Management Committee members.
- The main documents which set out the operational framework for the charity.
- Resourcing and the current financial position as set out in the latest published accounts.
- • Future plans and objectives.
## Risk Management
The board of directors is responsible for the management of the risks faced by the charity. All major risks to which the charity is exposed have been reviewed and systems have been established to mitigate all major risks. These are periodically reviewed to ensure that they continue to meet the needs of the charity.
3
## **WATLING COMMUNITY ASSOCIATION**
## Organisational Structure
The management committee directs the overall management of the charity. The committee meets eight times a year to review activities and to consider and agree plans for future progress.
A scheme of delegation is in place and day to day responsibility for the provision of the services rest with the Centre Manager who is also responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The Centre Manager has responsibility for day to day operational management of the centre, individual supervision of the staff team and also ensuring that the team continue to develop their skills and working practices in line with good practice.
## **OBJECTIVES, ACTIVITIES AND PUBLIC BENEFIT**
## Objects
The Charity’s objects and principal activities are:
- To promote the benefit of the inhabitants of the Watling Estate and the surrounding areas without distinction of sex, sexual orientation, race or of political, religious or other opinions.
- To associate with the Local Authority, voluntary organisations and residents in a common effort to advance education.
- To provide facilities in the interests of social welfare for recreation and leisure-time occupation with the object of improving the conditions of life for the said residents.
## Activities
The centre is used for providing various activities for the local community, such as:
|Montessori Nursery|Kumon|
|---|---|
|Various Yoga Classes|Keep Fit|
|Martial Arts|Karate|
|Dancing|Slimming Classes|
|Healing Classes|Tiny Tots Classes|
|Church Groups|Weekend Parties|
## Public Benefit
The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due careful consideration to the Charity Commission’s general guidance on public benefit and have achieved the aims of public benefit by providing facilities to the residents of Watling Estate and surrounding areas for recreation and leisure-time activities.
## **ACHIVEMENTS AND PERFORMANCE**
Excellent administration and housekeeping by all concerned was successful in providing the charitable service that met its objectives.
## **FINANCIAL REVIEW**
Details of incoming resources and resources expended can be seen in the Statement of Financial Activities. Resources expended for the year amounted to £118,970 compared to amount of incoming resources of £240,702. In broad summary, the accounts show a surplus for the year of £121,732.
During the year, incoming resources were boosted by a contract with the Barnet Council to provide a covid testing station. Insurance claims in the sum of £54,580 were received for loss of income due to lockdown and JRS (furlough) grants in the sum of £3,178 were also received.
4
## **WATLING COMMUNITY ASSOCIATION**
## Funding for Activities
The charity is run only from funds raised from its activities. It does not receive any grants from the council or any other organisation.
## Reserves Policy
The trustees have established a healthy reserve over the years. All the funds and reserves of the charity are unrestricted. The surplus funds are placed on deposit with Metro Bank.
## **MAJOR WORKS DONE AND PLANS FOR THE FUTURE**
In 2021, major works were carried out including the roof replacement.
In 2022 it is planned to work on courtyard to gain access to the main hall and to redecorate rooms.
## **RESPONSIBILITIES OF THE MANAGEMENT COMMITTEE**
Law applicable to charities in England and Wales requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the state of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the management committee should follow best practice and:
- Select suitable accounting policies and then apply them consistently
- Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Management Committee is responsible for maintaining proper accounting records which disclose with reasonable accuracy the financial position of the Charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Management Committee is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the directors are aware:
* there is no relevant accounting information of which the charity’s accountants are unaware; and * they have taken all the steps they ought to have taken as trustees in order to make themselves aware of any relevant accounting information and to establish that the charity’s accountants are aware of that information.
This report has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (issued in March 2005) and in accordance with the special provisions Part 15 of the Companies Act 2006 relating to small companies.
Approved by the Management Committee on 15 March 2022 and signed on its behalf by:
Harry Gilling (Director)
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## **WATLING COMMUNITY ASSOCIATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|Note
**INCOME AND ENDOWMENTS**
Hire of halls
Membership
Interest receivable
3
Insurance claims received
Furlough grants received
**TOTAL**
**EXPENDITURE ON CHARITABLE ACTIVITIES**
Rent
Water rates
Light and heat
Telephone
Insurance
Security
Repairs and maintenance
Major repairs and renovations
Cleaning
Garden maintenance
Printing, postage, stationery and advertising
Salaries
Travelling expenses
Accountancy
Legal & professional fees
Amortisation
Depreciation
Sundry expenses
**TOTAL**
**NET INCOME (EXPENDITURE) - UNRESTRICTED**
**Total funds brought forward - Unrestricted**
8
**Total funds carried forward - Unrestricted**
8|2021
Unrestricted
Funds
£
178,901
0
4,043
54,580
3,178
240,702
0
1,250
2,823
859
1,393
3,589
17,804
29,004
3,460
1,707
671
42,039
164
960
1,403
11,048
74
722
118,970
121,732
494,049
615,781|2020
Unrestricted
Funds
£
86,525
175
6,293
0
3,720|
|---|---|---|
|||96,713|
|||0
770
3,143
962
1,224
1,655
9,997
92,946
5,321
5,837
864
43,395
491
960
0
11,048
99
945|
|||179,657|
|||(82,944)
576,993|
|||494,049|
6
## **WATLING COMMUNITY ASSOCIATION**
## **(limited by guarantee)**
## **BALANCE SHEET AS AT 31 DECEMBER 2021**
|Note
**FIXED ASSETS**
Tangible assets
5
**CURRENT ASSETS**
Debtors and prepayments
6
Cash and bank balances
**CURRENT LIABILITIES**
Creditors
7
**NET CURRENT ASSETS**
**NET ASSETS**
**REPRESENTED BY**
Unrestricted Funds
**TOTAL FUNDS**
8|£
£
£
£
105,187
116,309
500
410
515,806
379,549
516,306
379,959
5,712
2,219
510,594
377,740
615,781
494,049
615,781
494,049
615,781
494,049
2021
2020|£
£
£
£
105,187
116,309
500
410
515,806
379,549
516,306
379,959
5,712
2,219
510,594
377,740
615,781
494,049
615,781
494,049
615,781
494,049
2021
2020|
|---|---|---|
||||
|||494,049|
|||494,049|
|||494,049|
The company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31 December 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss 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 the financial statements, so far as applicable to the company.
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the directors on 15 March 2022 and were signed on its behalf by:
Harry Gilling Director
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## **WATLING COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 1 **ACCOUNTING POLICIES**
## 1.1 **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the charities SORP (FRS102) '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 (FRS102) (effective 1 January 2016), Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. The base currency is sterling
## 1.2 **Incoming resources**
All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. All donations are recognised on the date they become receivable.
## 1.3 **Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under appropriate headings. Grants are charged to the Statement of financial activities when a constructive obligation exists. Irrecoverable VAT is charged as a cost to the Statement of financial activity.
## 1.4 **Fund accounting**
Unrestricted funds comprise accumulated surplus and deficits on general funds that are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
## 1.5 **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each assets over its estimated useful life:
Leasehold premises Evenly over the lease term Equipment, furniture, fixtures and fittings 25% on reducing balance
## 1.6 **Taxation**
The charitable company is exempt from corporation tax on its charitable activities.
## 2 **LEGAL STATUS OF THE CHARITY**
The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
## 3 **INTEREST RECEIVABLE**
2,021 2,020 £ £ Interest on cash balances 4,043 6,293
8
## **WATLING COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 4 **RESOURCES EXPENDED**
|Included within administrative expenses are:
Depreciation of tangible fixed assets
Wages and salaries
Social security costs
The trustees have not received any remuneration for their services.
No employee received emoluments of more than £60,000.
The average number of employees during the year was 7.|2,021
2,020
£
£
11,122
11,147
42,039
43,395
0
0|
|---|---|
|||
5 **TANGIBLE FIXED ASSETS**
|Leasehold
Premises
E F F & F
Total
£
£
£
**Cost:**
At 01.01.2021
309,067
44,330
353,397
At 31.12.2020
309,067
44,330
353,397
**Depreciation:**
At 01.01.2021
193,054
44,034
237,088
Charge for year
11,048
74
11,122
At 31.12.2020
204,102
44,108
248,210
**Net book Value:**
At 31.12.2021
104,965
222
105,187
At 31.12.2020
116,013
296
116,309
2021
2020
£
£
6
**DEBTORS**
Other debtors and prepayments
500
410
7
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors and accruals
5,712
2,219
8
**ANALYSIS OF RESERVES**
Incoming
Outgoing
At 01.01.21
Resources
Resources
At 31.12.21
£
£
£
£
Unrestricted funds
494,049
240,702
118,970
615,781|Leasehold
Premises
£
309,067|Leasehold
Premises
£
309,067|Leasehold
Premises
£
309,067|E F F & F
Total
£
£
44,330
353,397|
|---|---|---|---|---|
|||309,067||44,330
353,397|
|||193,054
11,048||44,034
237,088
74
11,122|
|||204,102||44,108
248,210|
|||104,965||222
105,187|
|||116,013||296
116,309|
|||||2021
2020
£
£
500
410|
|||||5,712
2,219|
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## **WATLING COMMUNITY ASSOCIATION**
## **INDEPENDENT EXAMINERS' REPORT TO THE TRUSTEES OF WATLING COMMUNITY ASSOCIATION**
I report on the accounts for the year ended 31 December 2021 as set out on pages 1 to 9.
## **Respective responsibilities of trustees and examiner**
The trustees (who are also directors of the company for the purpose of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011and that an independent examination is needed.
Having been satisfied 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 Charities Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5) of the Charities Act; and
- 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 the seeking of 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 examiners' statement**
In connection with my examination, no matter has come to my attention which gives me cause to believe that in, any material respect:
- accounting records were not kept in accordance with s386 of the Companies Act 2006; or
- the accounts do not accord with such records; or
- the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair' view is not a matter considered as part of an independent examination; or
- the accounts have not been prepared in accordance with the Charities SORP (FRS 102).
I have come across no matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Name of principle: A V Malde Name of firm: Appleday Associates Relevant professional qualification or body: Chartered Accountants
192B Station Road Edgware Middlesex HA8 7AR
Date: 21 March 2022
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