REGISTERED COMPANY NUMBER: 05180851 (England and Wales) REGISTERED CHARITY NUMBER: 1110072
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 July 2020
for
Letchworth Garden City Community Group
Salway and Wright Chartered Accountants 32 The Crescent Spalding Lincolnshire PE11 1AF
Letchworth Garden City Community Group
Contents of the Financial Statements for the Year Ended 31 July 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | to | 8 |
| Notes to the Financial Statements | 9 | to | 11 |
| Detailed Statement of Financial Activities | 12 |
Letchworth Garden City Community Group
Report of the Trustees
for the Year Ended 31 July 2020
LEGAL AND ADMINISTRATIVE INFORMATION
Directors: M. Foster J. King K. Lake I. Mantle Ex Officio: North Hertfordshire District Council representative None currently Company Number: 5180851 (England and Wales) Registered Charity Number: 1110072 (England and Wales) Charity Trustees: M. Foster J. King K. Lake - appointed 10th September 2019 Registered Office and Operating Address: Mrs. Howard Memorial Hall Norton Way South Letchworth Garden City Hertfordshire SG6 1NX Accountants: Salway and Wright 32 The Crescent Spalding Lincolnshire PE11 1AF Bankers: HSBC Station Place Letchworth Garden City SG6 3AJ
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Letchworth Garden City Community Group
Report of the Trustees
for the Year Ended 31 July 2020
The trustees, who are also the directors for the purpose of company law, present their annual report, together with the unaudited financial statements for the year ended 31 July 2020.
OBJECTIVES AND ACTIVITIES
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To manage the building known as Mrs Howard Hall as a community property
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To rent out the property, to repair it, and to hire staff to manage it and to run community projects from the property.
In overseeing the charities objectives and activities, the trustees have had regard to the Charity Commission’s guidance on public benefit.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Achievements and Performance and Financial Review
At the balance sheet date LGCCG held funds of £183,665 (2019 £177,710).
The statement of financial activities shows net incoming resources of £5,955 for the year, due to Coronavirus support received of £6,736, compared to net expenditure of £936 for the previous year. All monies currently held are unrestricted for this period.
The policy of the charity is to maintain unrestricted reserves at £40,000 which equates to approximately six months unrestricted expenditure, providing sufficient funds to cover management and administration and support costs in the event of the lease not being upheld. This policy will be kept under review.
Risk Review
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves, combined with an annual review of the controls over key financial systems will provide sufficient resources for normal operating risks. The trustees have also examined other operation and business risks which are faced and confirm they have established systems to mitigate significant risks.
REFERENCE AND ADMINISTRATIVE DETAILS
This information is shown separately on page 1.
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Letchworth Garden City Community Group
Report of the Trustees
for the Year Ended 31 July 2020
TRUSTEES' REPORT
The Directors have remained unchanged during the year but Kathy Lake was appointed a Trustee in September 2019. The work of the Memorial Hall continued to thrive throughout most of the year until March 2020 when Covid-19 became an issue and along with the rest of the UK, we were forced to close the building.This had and continues to have many implications for us as an organisation, The report is thus divided into two periods, upto lockdown in March 2020 and between March and July 2020.
July 2019 to March 2020
The Hall Manager continued to manage the day to day operations of the Hall very effectively, so that the facilities were being extensively used seven days a week, both throughout the day and every evening. Funzone, one of the main users has expanded its remit, occupying more space. New Life Church also continues to make maximum use of the space available on Sundays and during the week.
Other regular hirers also made regular bookings, and these as well as other ad hoc bookings have resulted in the sound financial position being maintained. The building has been used by a wide cross section of groups throughout the period evidencing that it has truly become a valuable community asset for all the population. Examples include, Foodbank, best before café, the NHS (providing wellbeing counselling), Yoga, National Childbirth Trust classes, Pregnancy Advice, Funzone (pre and after school support), Home Start, a charity supporting under privileged families, Hart-Beebs who run children’s theatre based workshops, Church activities for children, young people and adults, Alzheimer’s Society, national diabetes prevention sessions, Hertfordshire County Council (family work) and numerous private parties and functions.
We continued to be able to charge charities a lower or nil hire rate to ensure that all sections of the community are able to access the centre. Together with the wide usage detailed above this charging policy evidences that the charity's activities are for the public benefit.
As in previous years, this solid base has enabled regular ongoing maintenance to be carried out such as internal painting and new blinds in the main hall and repairs to external windows. NHDC also carried out external painting of the building.
March 2020 to July 2020
During March, the implications of Covid-19 began to quickly become apparent with many groups cancelling bookings prior to the national lockdown. Post lockdown only the Foodbank has continued to operate. The Board agreed to continue to honour all employees salaries fully and to cancel ongoing rents for regular hirers. The implications of the loss of income are reflected in the financial situation. The staff were able to carry out internal decorating during this period to mitigate losses.
The Trustees developed a Covid safe protocol as government guidelines were issued and firmed up, ready to open the building as and when permitted.
LGCCG’s lease came up for renewal in 2013 which has required renegotiation with the group’s landlord North Hertfordshire District Council. The current proposal will give a lease period of 25 years but will result in LGCCG being totally liable for the upkeep of the whole fabric of the building within a ten year period. Negotiations have been ongoing with the Council as there are substantial liabilities associated with the building due to its age, its design and its listed status.
Meetings were held before lockdown with NHDC and proposals firmed up subsequently by email and Skype to move towards agreement subject to the issues around external painting and the heating system being resolved. We have employed the services of a solicitor to ensure that our interests are protected. The heating system has been a perennial issue with numerous breakdowns and temporary fixes. The NHDC suggested we apply for a community grant which was approved in May 2020 for £32,000 which will enable the system to be replaced. Due to Covid, we were not able to mandate the new heating system within the allotted timeframe. We have been advised to apply again which will take place shortly.
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Letchworth Garden City Community Group
Report of the Trustees
for the Year Ended 31 July 2020
Future Plans for 2020/21 and beyond
The Board will continue to review the procedures and operating protocols in the light of Covid-19 to ensure that the building is used as extensively and inclusively as possible within the restrictions. The Board will also consider applying for the furlough scheme for staff where appropriate.
It is hoped that the renewal of the lease will finally be approved.
Approved by order of the board of trustees on 20 April 2021 and signed on its behalf by:
J H King - Trustee
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Independent Examiner's Report to the Trustees of Letchworth Garden City Community Group
Independent examiner's report to the trustees of Letchworth Garden City Community Group ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2020.
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
A.D. Wood Chartered Accountant Salway and Wright Chartered Accountants 32 The Crescent Spalding Lincolnshire PE11 1AF
20 April 2021
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Letchworth Garden City Community Group
Statement of Financial Activities
| for the Year Ended 31 July 2020 31.7.20 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Charitable activities Letting income 69,837 Other income 6,736 Total 76,573 EXPENDITURE ON Charitable activities Operational costs 68,725 Other 1,893 Total 70,618 NET INCOME/(EXPENDITURE) 5,955 RECONCILIATION OF FUNDS Total funds brought forward 177,710 TOTAL FUNDS CARRIED FORWARD 183,665 |
31.7.19 Total funds £ 90,126 - 90,126 89,865 1,197 91,062 (936) 178,646 177,710 |
|---|---|
The notes form part of these financial statements
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Letchworth Garden City Community Group
Balance Sheet
| 31 July 2020 31.7.20 Unrestricted fund Notes £ CURRENT ASSETS Cash at bank 184,225 CREDITORS Amounts falling due within one year 4 (560) NET CURRENT ASSETS 183,665 TOTAL ASSETS LESS CURRENT LIABILITIES 183,665 NET ASSETS 183,665 FUNDS 5 Unrestricted funds: General fund 183,665 TOTAL FUNDS 183,665 |
31.7.19 Total funds £ 178,250 (540) 177,710 177,710 177,710 177,710 177,710 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(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.
The notes form part of these financial statements
continued...
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Letchworth Garden City Community Group
Balance Sheet - continued
31 July 2020
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 20 April 2021 and were signed on its behalf by:
J H King - Trustee
M Foster - Trustee
The notes form part of these financial statements
Page 8
Letchworth Garden City Community Group
Notes to the Financial Statements
for the Year Ended 31 July 2020
1. 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.
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.
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.
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.
2. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 July 2020 nor for the year ended 31 July 2019.
continued...
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Letchworth Garden City Community Group
Notes to the Financial Statements - continued
for the Year Ended 31 July 2020
3. STAFF COSTS
The average monthly number of employees during the year was as follows:
| Centre manager Caretakers No employees received emoluments in excess of £60,000. 4. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors 5. MOVEMENT IN FUNDS At 1.8.19 £ Unrestricted funds General fund 177,710 TOTAL FUNDS 177,710 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 76,573 TOTAL FUNDS 76,573 Comparatives for movement in funds At 1.8.18 £ Unrestricted funds General fund 178,646 TOTAL FUNDS 178,646 |
31.7.20 31.7.19 1 1 1 2 2 3 31.7.20 31.7.19 £ £ 560 540 Net movement At in funds 31.7.20 £ £ 5,955 183,665 5,955 183,665 Resources Movement expended in funds £ £ (70,618) 5,955 (70,618) 5,955 Net movement At in funds 31.7.19 £ £ (936) 177,710 (936) 177,710 |
|---|---|
continued...
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Letchworth Garden City Community Group
Notes to the Financial Statements - continued for the Year Ended 31 July 2020
5. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 90,126 | (91,062) | (936) |
| TOTAL FUNDS | 90,126 | (91,062) | (936) |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.8.18 £ 178,646 178,646 |
Net movement in funds £ 5,019 5,019 |
At 31.7.20 £ 183,665 |
|---|---|---|---|
| 183,665 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 166,699 | (161,680) | 5,019 |
| TOTAL FUNDS | 166,699 | (161,680) | 5,019 |
6. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 July 2020.
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Letchworth Garden City Community Group
| Detailed Statement of Financial Activities | ||
|---|---|---|
| for the Year Ended 31 July 2020 | ||
| 31.7.20 | 31.7.19 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Charitable activities | ||
| Letting income | 69,837 | 90,126 |
| Other income | ||
| CJRS Grant | 6,736 | - |
| Total incoming resources | 76,573 | 90,126 |
| EXPENDITURE | ||
| Charitable activities | ||
| Wages | 37,825 | 42,620 |
| Pensions | 2,049 | 652 |
| Rates and water | 1,564 | 2,136 |
| Insurance | 2,041 | 2,149 |
| Light and heat | 3,133 | 6,442 |
| Telephone | 1,527 | 2,662 |
| Postage and stationery | 104 | - |
| Cleaning and repairs | 15,781 | 26,666 |
| Computer costs | 330 | - |
| Security costs | 2,225 | 5,668 |
| Parking | - | 697 |
| Sundry expenses | 2,120 | 173 |
| Subscription | 26 | - |
| 68,725 | 89,865 | |
| Support costs | ||
| Governance costs | ||
| Accountancy and bookkeeping | 1,508 | 1,184 |
| Legal fees | 385 | 13 |
| 1,893 | 1,197 | |
| Total resources expended | 70,618 | 91,062 |
| Net income/(expenditure) | 5,955 | (936) |
This page does not form part of the statutory financial statements
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