**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 2021
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 2021
|||Page||
|---|---|---|---|
|Report of the Trustees|1|to|3|
|Independent Examiner's Report||4||
|Statement of Financial Activities||5||
|Balance Sheet||6||
|Notes to the Financial Statements|7|to|9|
|Detailed Statement of Financial Activities||10||
Letchworth Garden City Community Group
## Report of the Trustees for the Year Ended 31 July 2021
## 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 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
Page 1
Letchworth Garden City Community Group
## Report of the Trustees
## for the Year Ended 31 July 2021
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 2021.
## **OBJECTIVES AND ACTIVITIES**
- To manage the building known as Mrs Howard Hall as a community property
- 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 £187,185 (2020 £183,665).
The statement of financial activities shows net incoming resources of £3,520 for the year, due to Coronavirus support received of £22,189 (2020 £6,739), compared to £5,955 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.
Page 2
Letchworth Garden City Community Group
## Report of the Trustees
## for the Year Ended 31 July 2021
## **TRUSTEES' REPORT**
The Directors have remained unchanged during the year. Covid -19 ensured that the building was closed for extensive periods of the early reporting year. The building operated fully in compliance with Government legislations regarding the lockdown/opening periods. The Foodbank was operational supporting local people and families through charitable food and donation programmes and Funzone continued to support the children of key workers by providing limited childcare. Although lockdown restrictions were eased the rule of six and other Covid restraints prevented the building from opening to anywhere near pre-Covid levels.
The financial constraints on the Charity meant that the building manager was furloughed and the building caretaker was retained to operate the building in its limited capacity.
Regular hirers that could no longer operate were given assurances that their rooms/bookings would be honoured on reopening and in some instances payment plans were negotiated with hirers, so that drops in income, prior to the bookings being suspended, could be supported by LGCCG. The board felt that it was critical to support building hirers and users throughout this difficult time.
We continue to be able to charge charities a lower hire rate to ensure that all sections of the community are able to access the Centre. This charging policy evidences that he Charity's activities are for the public benefit.
There were very few capital works/maintenance tasks undertaken in the building primarily due to the majority of the building being closed and also to maintain prudence regarding income/expenditure.
A Covid safe protocol was implemented and maintained vigorously, giving confidence to the limited users that were able to operate.
The building lease negotiations were suspended in agreement with all parties concerned. It was agreed that once the process could be moved forward, it would be, as the essential components had already been agreed and it was just a case of the legalities being resolved.
Lockdown restrictions eased further towards Spring/Summer which along with the implementation of the vaccination programme, meant that hirers/users started to have confidence in returning and using the premises again. Use of the building started to gain momentum and once again started to flourish becoming operational 7 days per week and virtually at capacity. Some of the revenue that had been lost will be recouped as the maintenance spend will not be as great as that for other years due to the length of time the building remained closed or at limited operation.
## Future Plans for 202//22 and beyond
The board will continue to review the procedures and operating protocols in the light of Covid-19 to ensure that the Community Facility is used as extensively and inclusively as possible within ongoing Government advice. The heating system grants will be secured and the works carried out to completion. It is hoped that the renewal of the lease will finally be approved. The LGCCG board alongside the building management staff will continue to maintain the standards expected so that the local community and other stakeholders continue to benefit and be served.
Approved by order of the board of trustees on 10 March 2022 and signed on its behalf by:
J H King - Trustee
Page 3
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 2021.
## **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:
1. 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
3. 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
4. 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
10 March 2022
Page 4
Letchworth Garden City Community Group
## Statement of Financial Activities
## for the Year Ended 31 July 2021
|31.7.21
Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Letting income
40,414
Other income
22,189
**Total**
62,603
**EXPENDITURE ON**
**Charitable activities**
Operational costs
57,655
Other
1,428
**Total**
59,083
**NET INCOME**
3,520
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
183,665
**TOTAL FUNDS CARRIED FORWARD**
187,185|31.7.20
Total
funds
£
69,837
6,736|
|---|---|
||76,573
68,725
1,893|
||70,618|
||5,955
177,710|
||183,665|
The notes form part of these financial statements
Page 5
Letchworth Garden City Community Group
## Balance Sheet
## 31 July 2021
|31.7.21
Unrestricted
fund
Notes
£
**CURRENT ASSETS**
Cash at bank
187,743
**CREDITORS**
Amounts falling due within one year
4
(558)
**NET CURRENT ASSETS**
187,185
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
187,185
**NET ASSETS**
187,185
**FUNDS**
5
Unrestricted funds:
General fund
187,185
**TOTAL FUNDS**
187,185|31.7.20
Total
funds
£
184,225
(560)
183,665
183,665
183,665
183,665
183,665|
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2021 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 10 March 2022 and were signed on its behalf by:
J H King - Trustee
M Foster - Trustee
The notes form part of these financial statements
Page 6
Letchworth Garden City Community Group
Notes to the Financial Statements for the Year Ended 31 July 2021
## **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 2021 nor for the year ended 31 July 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.
continued...
Page 7
Letchworth Garden City Community Group
## Notes to the Financial Statements - continued for the Year Ended 31 July 2021
## **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 1.8.20
£
**Unrestricted funds**
General fund
183,665
**TOTAL FUNDS**
183,665
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
62,603
**TOTAL FUNDS**
62,603
**Comparatives for movement in funds**
At 1.8.19
£
**Unrestricted funds**
General fund
177,710
**TOTAL FUNDS**
177,710|31.7.21
31.7.20
1
1
1
1
2
2
31.7.21
31.7.20
£
£
558
560
Net
movement
At
in funds
31.7.21
£
£
3,520
187,185
3,520
187,185
Resources
Movement
expended
in funds
£
£
(59,083)
3,520
(59,083)
3,520
Net
movement
At
in funds
31.7.20
£
£
5,955
183,665
5,955
183,665|
|---|---|
continued...
Page 8
Letchworth Garden City Community Group
Notes to the Financial Statements - continued for the Year Ended 31 July 2021
## **5. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
76,573
**TOTAL FUNDS**
76,573
A current year 12 months and prior year 12 months combined position is as follows:
At 1.8.19
£
**Unrestricted funds**
General fund
177,710
**TOTAL FUNDS**
177,710|Resources
Movement
expended
in funds
£
£
(70,618)
5,955
(70,618)
5,955
Net
movement
At
in funds
31.7.21
£
£
9,475
187,185
9,475
187,185|
|---|---|
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|139,176|(129,701)|9,475|
|**TOTAL FUNDS**|139,176|(129,701)|9,475|
## **6. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 July 2021.
Page 9
Letchworth Garden City Community Group
Detailed Statement of Financial Activities for the Year Ended 31 July 2021
|Detailed Statement of Financial Activities
for the Year Ended 31 July 2021|||
|---|---|---|
||31.7.21|31.7.20|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Charitable activities**|||
|Letting income|40,414|69,837|
|**Other income**|||
|CJRS Grant|22,189|6,736|
|**Total incoming resources**|62,603|76,573|
|**EXPENDITURE**|||
|**Charitable activities**|||
|Wages|38,377|38,996|
|Pensions|909|878|
|Rates and water|1,547|1,564|
|Insurance|1,766|2,041|
|Light and heat|5,168|3,133|
|Telephone|2,602|1,527|
|Postage and stationery|-|104|
|Cleaning and repairs|3,864|15,781|
|Computer costs|120|330|
|Security costs|2,780|2,225|
|Sundry expenses|500|2,120|
|Subscription|22|26|
||57,655|68,725|
|**Support costs**|||
|**Governance costs**|||
|Accountancy and bookkeeping|1,415|1,508|
|Legal fees|13|385|
||1,428|1,893|
|Total resources expended|59,083|70,618|
|**Net income**|3,520|5,955|
This page does not form part of the statutory financial statements
Page 10