GORSE COVERT COMMUNITY ASSOCIATION LTD (A Company Limited by Guarantee)
TRUSTEES REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
COMPANY NUMBER: 05174095 CHARITY NUMBER: 1108732
Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR Tel: 01509 214163
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2021.
REFERENCE AND ADMINISTRATIVE DETAILS
CHARITY NUMBER 1108732 COMPANY NUMBER 5174095 REGISTERED OFFICE Gorse Covert Community Centre Maxwell Drive Loughborough Leics LE11 4RZ
DIRECTORS AND TRUSTEES
The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.
The trustees serving during the year and since the year end were as follows:
Val Watts Emma Ward Billy Wong David Dobson Secretary: Sue Castleton
Governing Document
Gorse Covert Community Association Limited is a company limited by guarantee governed by its Memorandum & Articles of Association dated 7 June 2004. It is a charity registered with the Charity Commission. Membership is open to any not for profit group using the community centre, each of whom agree to contribute up to £10 in the event of the charity being wound up.
Appointment of Trustees
As set out in the Articles of Association, the Association must have a minimum of three trustees, but there is no maximum number. One trustee retires in rotation at each Annual General Meeting but may be re-appointed. The Current Trustees recognise the importance of maintaining their number but are also determined to regularly review the skills Trustees bring to the Association and increase their number to fill any gaps identified. The appointment of Trustees who share an enthusiasm for maintaining excellence in local facilities is a core criterion for any new appointments.
Trustees Induction and Training
New trustees are advised of their obligations under charity and company law, the content of the Memorandum and Articles of Association as well as the structure and decision-making process of the committee.
Related Parties
The charity has close relationships with Charnwood Borough Council, who has provided an annual grant towards the running costs of the community centre through a Strategic Partner agreement. Charnwood Borough Council owns the building leasing it to the association for forty years which commenced in 2009.
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021
Risk Management
The trustees have a risk management strategy which comprises:
An annual review of the risks the charity might face; Systems and procedures to mitigate those risks identified in the plan; and Procedures in place to minimise any potential impact on the charity should those risks materialise.
Objectives and Activities
Gorse Covert Community Association Limited aims to provide and promote social, recreational, educational and community development support for local people. It recognises that society is diverse in race, culture and beliefs, and believes that no person should be discriminated against or lack opportunity because of their race, gender, sexuality, disability, age, class, beliefs or geographical location. The Association aims to encourage participation, challenge discrimination and promote social justice. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning future activities. The aims and objectives are achieved through the provision of a wide range of regular activities. Participants of these activities come from a variety of backgrounds and represent a broad spectrum of the local community. The programme is wide ranging and encourages participation from some of the most disadvantaged members of our community including single parents and people on low and fixed incomes. It is hoped that taking part in the programme encourages greater self confidence which may in turn lead them into training and employment. To support the continuation of community activities within the premises, the Association is expanding the use of the premises by local authority and corporate bodies.
Key Developments and Achievements
Covid 19
This has clearly been an extraordinary and difficult year for Gorse Covert Community Association and The Centre, dominated by the implications of the pandemic.
1. Lockdowns and restrictions
We closed down in March 2020 along with all other community facilities. We were only able to open for most of our groups for 11 weeks during the year. Support groups were able to come in for an additional 4 weeks in November 2020. The NHS hired the building for 12 weeks to April 24[th] 2021 as a testing centre and we then devoted a week to cleaning ready to open after the May Bank Holiday. We did not open until 4[th] May 2021 but then only to our closed groups. We have been offering Coffee Bar sessions in our garden facility for The Gorse Covert Walking for Health Group on Wednesday mornings and to the public on Monday mornings.
2. Publicity and promotion
Our new website was launched in August 2020. We produced our first paper-based newsletter in December 2020 and delivered it door to door. It also went on the new website, and on our Facebook page. In addition to the trustees we had offers from several volunteers for which we were very grateful. It was an important initiative for keeping the local community up to date with the effect of Covid 19 restrictions on The Centre, the services we could offer and some essential links for help and support. We intend to produce the newsletter bi-annually with the next one due during the spring/summer 2021.
3. Staffing
We made the decision in March 2020 to furlough all of our staff apart from our manager, who continued to work for the whole of the year. She has maintained The Centre, made successful bids for funding to enable us to remain solvent (see finance report), continued with some services when possible, e.g. open the foyer once a week for books, DVD’s, free masks etc. The Manager also spent some time working with Charnwood Community Action at John Storer House on our behalf and in partnership with Charnwood Borough Council and other community organisations.
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021
Staffing (cont’d)
During the summer of 2020 it became clear that our finances were going to be seriously compromised and that we were not going to require all our staff for the foreseeable future. Sadly, we had to make 5 staff redundant (although one has returned to us as we have opened up). Remaining staff stayed on furlough, and we have slowly brought them back part time as and when we could. The admin staff were able to do some work from home.
Trustees would like to thank Sue Castleton for all that she has done during the year and all staff for their commitment and understanding.
4. Facilities and Equipment
Outside facilities have become very important during this time. The garden area and astroturf have been cleaned and tidied. We have bought 3 new gazebos for outdoor undercover activities, new tables and chairs and barriers with our logo on to separate spaces both inside and out.
We have also used the time to update our IT systems.
Financial Report
Funding continues to be a concern for trustees, particularly given the disruption caused by the events of the last year severely restricting income generation. There is still much uncertainty and we will need to work hard to rebuild our services and bring back user groups and members of our community both pre-existing and new.
Clearly the furlough scheme enabled us to keep current staff in-post, but we have 4 fewer staff than in March 2020, due to redundancies. We will need to assess our staffing needs as, a) current furlough arrangements end, b) we are able to increase our service back to pre-Covid levels and more, and c) that our income increases
Trustees will need to rebuild reserves over the next few years and keep spending on the building and facilities to a minimum. We had previously invested in a number of facilities improvements, and are in a good position to start the new year with no urgent work needing to be done.
Despite these unprecedented challenges, we ended the financial year 20/21 solvent and much as we ended the previous year. This was due to the success of our manager, with the help and advice from CBC Officers, in bidding for grants.
We received the following:
CBC Strategic Partnership Grant (given annually to fund development work but continued during this period) £20432.00
Small Business Grant (CBC) £10000.00 Leicestershire County Council £6487.74 National Lottery £70000.00 CBC Discretionary Funds £19836.00 Total £126755.74
Additional income:
£4761.00 from Intelligent Energy for the garden £216.65 from donations for books and DVDs £165.00 from Charnwood Community Lottery
Full accounts are provided with this report
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021
Reserve Policy
It is a requirement of the Charities Commission and prudent management to have a reserves policy. As such the Community Association has cash reserves set aside to respond to any unforeseen funding difficulties or unexpected expenditure.
Regular Users of the Community Centre during 2020/21:
Autism East Midlands Bec’s Yoga Bhangra Bright Lights Theatre school Dishley Grange Walking Group Hix Fitness - Zumba Gold Loughborough Baby College Loughborough Baby Sensory Rhythm Time Stoma - Salts Healthcare U3A Pilates U3A Tai Chi U3A Yoga
Short term additional bookings have been made by:
Abbey First Aid Katherine Pledger Public Health England - Lateral Flow Testing Centre Woodside Lodge
Development Plan
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Consolidate the financial position of the Association after a period of disruption and closure. We will be more proactive in exploring additional sources of funding for specific projects.
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Rebuild our user base. Welcome back current users and attract new groups and individuals.
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Increase our range of provision for local children 5-11 years. Establish new partnerships to provide holiday and term-time activities for local children in this age group.
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Reassess our staffing levels and roles as our service develops post Covid
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Provide an Information Database and Advice Service as part of customer care. Develop a database to enable all staff to signpost members of the community to services they may need.
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Create a new marketing strategy and commit dedicated resources to support it
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Develop the membership of the Association with the intention of increasing community engagement in the governance of the Association.
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Recruit new Trustees and other volunteers
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Improve our processes of annual risk management by organising a designated meeting each year.
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Reassess our objectives and activities in a post Covid environment
Signed ………………………………………….. 29[th] June 2021 Val Watts Chair of Trustees
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF
GORSE COVERT COMMUNITY ASSOCIATION LIMITED
I report on the accounts of the company for the year ended 31 March 2021 which are set out on pages 6 to 12.
Respective responsibilities of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to an audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 45 of the 2011 Act;
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follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, as amended); and
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state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with 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:
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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.
D R Gradon Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
29[th] June 2021
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
STATEMENT OF FINANCIAL ACTIVITES FOR THE YEAR ENDED 31 MARCH 2021
| Restricted Designated Unrestricted Fund Fund Fund Total Note 2021 2021 2021 2021 INCOME Donations and Legacies Grants 2 - - 161148 161148 Donations - - 383 383 Charitable Activities 3 - - 9168 9168 Other Trading Activities 4 - - 73 73 Investment 5 - - 34 34 Insurance Claim - - 2418 2418 _ _ TOTAL INCOME - - 173224 173224 __ _ EXPENDITURE AND CHARITABLE ACTIVITIES Project Costs - - 565 565 Operation of café - - 1222 1222 Staff costs 6 - 4657 65324 69981 Pension Contributions - - 1029 1029 Rates and water - - 1170 1170 Insurance - - 2778 2778 Light and heat - - 9516 9516 Agency Staff - - - - Cleaning - - 3806 3806 Repairs and maintenance - - 8321 8321 Printing, postage, stationery and photocopying - - 331 331 Advertising - - 283 283 Telephone and internet - - 1638 1638 Transport and Wednesday Club - - - - Miscellaneous - - 3005 3005 Depreciation - 1547 4675 6222 Bank charges and interest - - 125 125 Legal and Professional Fees - - 3590 3590 Governance Costs - - 5910 5910 Training - - 36 36 IT Support - - 4009 4009 Equipment Hire - - 1894 1894 __ _ TOTAL EXPENDITURE - 6204 119227 125431 __ _ NET (EXPENDITURE) INCOME - (6204) 53997 47793 _ NET MOVEMENT IN FUNDS - (6204) 53997 47793 RECONCILIATION OF FUNDS: Total funds brought forward - 6204 56718 62922 __ _ TOTAL FUNDS CARRIED FORWARD - - £110715 £110715 __ _ ___ |
Total 2020 22736 624 94555 11710 429 - __ 130054 _ 579 7003 100196 1267 2288 2443 10144 - 1225 14485 2619 618 1009 58 3558 4138 514 13812 3840 593 7020 2141 179550 (49496) (49496) 112418 £62922 ___ |
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
BALANCE SHEET AS AT 31 MARCH 2021
Fixed Assets Tangible Assets Current Assets Stocks Debtors Cash at Bank and in Hand Creditors Amounts falling due within one year Net Current Assets Total Assets Less Current Liabilities NET ASSETS The Funds of the Charity: Unrestricted Funds: General Funds Designated Fund |
Notes 7 8 9 10 12 12 |
2021 18619 599 11936 88773 __ 101308 _ 9212 __ 92096 __ 110715 _ £110715 110715 - 110715 ___ |
_ | 2020 841 5441 51252 _ 57534 7000 __ 56718 6204 _____ |
12388 50534 ______ |
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| _ | |||||
| _ | |||||
| 62922 ______ |
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| £62922 ______ |
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| 62922 ______ |
For the year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006, relating to small companies.
Directors’ responsibilities:
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The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
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The directors’ acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.
These financial statements were approved by the Board on 29[th] June 2021 and signed on its behalf by
…………………………………
V.Watts Trustee
The information on pages 8 to 12 form an integral part of these financial statements.
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year and also have been consistently applied within the same accounts.
a) Basis of Preparation of Financial Statements
These 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The Church constitutes a public benefit entity as defined by FRS102.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b) Company Status
The Association is a company limited by guarantee. The trustees of the company are named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
c) Fund Accounting
Undesignated general funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity 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 charity for particular purposes. The aim of each restricted fund is set out in the notes to the financial statements.
d) Incoming Resources
All incoming resources are included in the SOFA when the charity is legally entitled to the income the amount can be measured reliably and it is probable that the income will be received.
No amount is include in the financial statements for volunteer time, in line with SORP (FRS102),
e) Resources Expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs to that category.
f) Tangible Fixed Assets and Depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life as follows:
Fixtures, Fittings and Equipment - 25% Reducing Balance
g) Stock
Stock is valued at the lower cost and net realisable value.
h) Redundancy Costs
The costs incurred by the company due to making staff redundant are included in the year the staff members leave.
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| 2 3 4 5 |
GRANTS Restricted Designated Unrestricted Funds Funds Funds Total 2021 2021 2021 2021 Charnwood Borough Council Core Grant - - 20432 20432 Discretionary Grants - - 19836 19836 Small Business Grant - - 10000 10000 JRS Grant - - 29631 29631 National Lottery Grant - - 70000 70000 Leicestershire County Council Grant - - 6488 6488 Garden Project Grant - - 4761 4761 _ __ - - £161148 £161148 _ _ CHARITABLE ACTIVITIES Restricted Designated Unrestricted Funds Funds Funds Total 2021 2021 2021 2021 Café income - - 646 646 Non-Corporate Room Hire - - 8499 8499 Other income - - 13 13 Sales of donated goods - - - - Equipment Hire - - 10 10 __ _ - - 9168 £9168 __ _ OTHER TRADING ACTIVITIES Restricted Designated Unrestricted Funds Funds Funds Total 2021 2021 2021 2021 Corporate Room Hire - - 73 £73 INVESTMENTS Restricted Designated Unrestricted Funds Funds Funds Total 2021 2021 2021 2021 Interest received - - 34 £34 __ _ ___ |
Total 2020 20889 - - 1847 - - - __ £22736 _ Total 2020 21295 70066 2141 624 429 £94555 Total 2020 £11710 Total 2020 £429 __ |
Total 2020 20889 - - 1847 - - - __ £22736 _ Total 2020 21295 70066 2141 624 429 £94555 Total 2020 £11710 Total 2020 £429 __ |
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
6 STAFF COSTS
| Restricted Designated Unrestricted Funds Funds Funds 2021 2021 2021 Wages and salaries - 4657 65324 National insurance - - 2543 Employment Allowance received - - (2543) Redundancy Payment - - - __ _ - 4657 65324 ___ |
Total Total 2021 2020 69981 88595 2543 3901 (2543) (3000) - 10700 __ _ £69981 £100196 ___ |
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No trustees received any remuneration during the year (2020: none).
No trustees received any expenses during the year (2020: none).
The average number of employees during the year was 8 (2020: 9).
No employee earned in excess of £60,000 (2020: none).
7 FIXED ASSETS
| 8 | Tangible Assets Cost (or Valuation) At 1 April 2020 Additions Less: Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the Year Less: On Disposals At 31 March 2021 Net Book Value At 31 March 2021 At 31 March 2020 STOCKS Café and Cleaning Stock |
Fixtures Fittings & Equipment Total 74622 £74622 12492 12492 (121) (121) _ 86993 86993 _ 62234 £62234 6222 6222 (82) (82) 68374 68374 _ 18619 18619 _ 12388 £12388 2021 2020 £599 £841 _ _ |
Fixtures Fittings & Equipment Total 74622 £74622 12492 12492 (121) (121) _ 86993 86993 _ 62234 £62234 6222 6222 (82) (82) 68374 68374 _ 18619 18619 _ 12388 £12388 2021 2020 £599 £841 _ _ |
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| 9 10 11 |
DEBTORS– All Receivable within one year Trade Debtors Prepayments Other Debtors CREDITORS– Amounts falling due within one year Accruals Membership Liabilities Pension Liabilities Other Taxes Other Creditors STATEMENT OF FUNDS At 31 March 2020 Income Unrestricted Funds 56718 173224 Designated Fund 6204 - __ _ Total Funds £65231 £173224 ___ |
2021 2020 2521 333 7145 3261 2270 1847 _ £11936 £5441 _ 2021 2020 5353 5914 140 140 148 139 471 807 3100 - £9212 £7000 _ At 31 March Expenditure 2021 (119227) 110715 (6204) - £(125431) £110715 ___ |
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The designated fund comprises the £50,000 received from Morrisons, which the trustees have designated as contributing towards cost of employing a manager for the Community Centre and making improvements to the facilities the Centre offers in the coffee bar.
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GORSE COVERT COMMUNITY ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| 12 | ANALYSIS OF NET ASSETS BETWEEN FUNDS Designated Unrestricted Total Funds Funds Funds Fund balances at 31 March 2021 are represented by: Tangible Fixed Assets 4657 13962 18619 Current Assets (4657) 105965 101308 Current Liabilities - (9212 ) (9212 ) __ _ Total Net Assets - 110715 £110715 Fund balances at 31 March 2020 are represented by: Tangible Fixed Assets 6204 6184 12388 Current Assets - 57534 57534 Current Liabilities - (7000 ) (7000 ) Total Net Assets 6204 56718 £62922 ___ |
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13 CONTROL AND RELATED PARTY TRANSACTIONS
The charity is controlled by its members.
There have been no transactions with related parties during the year (2020: none).
14 GUARANTEES AND OTHER FINANCIAL COMMITMENTS
The charity had total guarantees and commitments at the balance sheet date of £1280 (2020: £2241).