## **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**
**- 1 -**
## **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.
**- 2 -**
## **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.
**- 3 -**
## **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
**- 4 -**
## **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**
1. 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.
2. Rebuild our user base. Welcome back current users and attract new groups and individuals.
3. 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.
4. Reassess our staffing levels and roles as our service develops post Covid
5. 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.
6. Create a new marketing strategy and commit dedicated resources to support it
7. Develop the membership of the Association with the intention of increasing community engagement in the governance of the Association.
8. Recruit new Trustees and other volunteers
9. Improve our processes of annual risk management by organising a designated meeting each year.
10. Reassess our objectives and activities in a post Covid environment
**Signed** ………………………………………….. 29[th] June 2021 Val Watts Chair of Trustees
**- 5 -**
## **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:
- examine the accounts under section 45 of the 2011 Act;
- 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
- 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:
- 1 which gives me reasonable cause to believe that, in any material respect, the requirements:
- to keep accounting records in accordance with section 386 of the Companies Act 2006; and
- 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
**- 6 -**
## **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
______|
|---|---|
**- 7 -**
## **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
______|
|---|---|---|---|---|---|
||||_|||
||||_|||
||||||62922
______|
||||||£62922
______|
||||||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:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
- The directors’ acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
- These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime 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.
**- 8 -**
## **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.
**- 9 –**
## **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
_____|
|---|---|---|---|
||||_|
**- 10 -**
## **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
______
______|
|---|---|
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
____
____|
|---|---|---|---|
|||||
|||||
**- 11 -**
## **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
______
______|
|---|---|---|
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.
**- 12 -**
## **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
______
______
______|
|---|---|
## 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).