Charity Registration Number 1112155
## **BASINGSTOKE IRISH SOCIETY**
## **(A Company Limited by Guarantee)**
## **REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
Registered Company in England and Wales – Number 5543270
Charity Registration Number 1112155
1
## **BASINGSTOKE IRISH SOCIETY INDEX TO THE ACCOUNTS**
Page
- 3 Reference and Administrative Information
- 4 Management Committee Report
- 9 Independent Examiner's Report
- 10 Consolidated Statement of Financial Activities
- 11 Charity Statement of Financial Activities
- 12 Charity Income and Expenditure Account
- 13 Consolidated and Charity Balance Sheets
- 14 Notes forming part of the Accounts
2
## **BASINGSTOKE IRISH SOCIETY**
Charity Registration Number 1112155
Registered Company in England and Wales – Number 5543270
The Management Committee presents its report and financial statements for the year ended 31 December 2020, which were approved by the Committee on 26[th] February, 2021 in accordance with Section 414 of the Companies Act 2006. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
## **CHAIRMAN, DIRECTORS & TRUSTEES and MANAGEMENT COMMITTEE**
Mr A McFadden (Chair) Appointed 23[rd] August, 2005 Cllr S Keating Appointed 13[th] September, 2016 Mr G Traynor Appointed 13[th] September, 2016 Mrs J Donohoe Appointed 7[th] December, 2016 Mrs AMT Morwood-Leyland Appointed 13[th] December, 2016
## **REGISTERED & PRINCIPAL OFFICE**
The Irish Centre Council Road Basingstoke Hampshire RG21 3DH
**SECRETARY** Mrs CH Killeen
## **BANKERS**
Barclays Bank PLC Basingstoke Branch Business Banking Leicester LE87 2BB
## **ACCOUNTANTS**
Pi Accounting 44 Pennington Close Colden Common Winchester SO21 1UR
## **INDEPENDENT EXAMINER**
Mrs Claire Watts 20 Ash Grove Cowes Isle of Wight PO31 7HS
3
## **BASINGSTOKE IRISH SOCIETY MANAGEMENT COMMITTEE & DIRECTOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **a) Governing Document**
The Basingstoke Irish Society was founded in 1970 after informal discussions by a group of people resident in the Basingstoke and Deane area. Initially aimed to foster social and sporting activities but expanded over the years into cultural and educational activities for the Irish community residing within the town and surrounding districts. In January, 1990 the Society adopted The Constitution of the Irish Society and Rules of the Irish Centre. The Society was incorporated as a charitable company, limited by guarantee and not having a share capital, on 23 August, 2005 and registered as a charity on 18 November, 2005. The Company was established under a Memorandum of Association which established the objects and powers of the charitable Company and is governed under its Articles of Association. This document replaced the original constitution. In the event of the Company being wound up, the Trustees of the Charity are liable to contribute an amount not exceeding £10 to the assets of the Charity. At 31 December, 2019 there were five Trustees of the Charity.
## **b) Recruitment and Appointment of New Trustees**
As set out in the Articles of Association, the Management Committee shall consist of not less than three, unless otherwise determined by ordinary resolution and not subject to any maximum number of members. One third of members stand down from office at the Annual General Meeting, but are eligible for re-election for the forthcoming year. The members to retire by rotation shall be those who have been longest in their office since their last appointment.
The Trustees are elected to bring a wide range of skills to the Management Committee.
Members of the Management Committee, who are directors for the purpose of Company Law and trustees for the purpose of Charity Law, who served during the year are set out below:
Mr A McFadden Chair Cllr S Keating Appointed 13[th] September, 2016 Mr G Traynor Appointed 13[th] September, 2016 Mrs J Donohoe Appointed 7[th] December, 2016 Mrs AMT Morwood-Leyland Appointed 13[th] December, 2016
The Management Committee may appoint sub-committees and the chair of the sub-committee has delegated powers to make financial decisions on behalf of the Management Committee should a decision be required quickly and outside of the timescales of the Management Committee meetings. This sub-committee meets as and when required.
## **c) Trustee Induction and Training**
A Basingstoke Irish Society information pack based upon information from the various Charity Commission publications signposted through the Commission’s guide “the Essential Trustee,” is distributed to all new trustees along with the Memorandum and Articles of Association and the latest financial statements.
## **Risk Management**
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure proper controls are in place to provide reasonable assurances against fraud and errors.
4
Internal risks are minimized by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable Company. The Internal Financial Control Checklist published by the Charity Commission form the basis for these procedures. These procedures are periodically reviewed to ensure that they still meet the needs of the Charity. This has led to improvements in day to day reporting which has benefited the Charity with its compliance and governance issues.
## **Objectives and Activities**
The Charity’s objects are the following:
- i. to promote the benefits of the inhabitants of the Borough of Basingstoke and Deane and, in particular, but not exclusively, the members of the Irish Community defined by the Borough of Basingstoke and Deane (herein called "the area of benefit").
- ii. to establish or secure the establishment of a Community Centre and manage and maintain the same.
- iii. to promote other such charitable objectives as may be determined from time to time.
## **Public Benefit**
The Charity is a public benefit entity.
We review our aims, objectives and activities each year. This review looks at what we have achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help.
This review also helps us ensure our aim, objectives and activities remain focused on our stated purpose. We have referred to the guidance contained in the Charity Commission's general guidance of public benefit when reviewing our aims and objectives and in planning our future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set.
## **Achievements and performance**
Our main activities have been to promote the Irish Community and to continue the management of the Community Centre. By associating with said inhabitants and the local authorities, voluntary and other organisations, the Charity continues to advance education and to provide facilities in the interest of social welfare for recreation and leisure time pursuits for the benefit of the inhabitants. During the year the Charity continues to support other local charities by providing free accommodation and use of the Charity’s services. These include Cultural Irish and set Dancing, St. Michael’s Hospice, the Wye Valley and Hospital Radio, Williams Syndrome, McMillan Nurses, Cancer Research, the Stroke Society, the Golden Oldies monthly lunch club, Noami House and Jack’s Place, the Mayor’s Charity events, hosting after funeral events and band practice clubs.
## **Financial Review**
The refurbishment of the Centre was completed last year with some additional works carried out this year. The Charity received further grants from Basingstoke and Deane Borough Council of £2,100 making £36,402 in total towards the cost of the works. It is expected that this will lead to increase in both rental income for the Charity and increased bar takings for the trading Company. However the Coronavirus pandemic has of course severely affected this with the lockdowns and reduced opening hours. Bar sales for the trading Company fell from £95,111 last year to £36,372. Lettings income also suffered during the year but is hoped to pick up in 2021. The trading Company made a surplus before taxation of £790 [2019: £11,940] during the year and gift aided this in full to the Charity. During the year the trading Company paid the balance of the prior year’s gift aid. The current year gift aid will be paid within nine months of the year end. The Charity were grateful to receive £13,692 in Government support via the Job Retention Scheme as well as £10,000 from Basingstoke and Deane Borough Council for business support.
Parking income is trading income and subject to taxation if greater than £5k in the year. This year the income was £3,446 and fully accounted for within the Charity.
5
The actual income is analysed in the following graph:
The consolidated Charity reserves at the year-end have decreased from £56,389 by £16,202 to £40,187. Additional grant income which has been used to fund the refurbishment of the Centre. These reserves are marked as designated funds in the Charity’s account in order to provide for the writing down of the asset over its expected useful life. Other grant income received have contributed to the maintenance and upkeep of the building during the extended periods of inactivity.
## **Reserves policy**
The Charity’s aim to build up general reserves to help ensure continuity of services, by providing for a period of twelve months’ cover of wages and salaries and general running costs.
The Group has total reserves of £40,187 [2019: £56,389] at the year end. The reserves of the Charity is £40,187 [2019: £49,451] of which £25,561 [2019: £27,700] is designated. Unrestricted reserves of £14,626 represents approximately five months’ cover [2019: fifteen months].
## **Plans for the future**
The primary focus of the Society is to bring local residents, local authorities, voluntary and other organisations together to provide education and facilities for entertainment for the benefit of the life and well-being of local people without distinction of sex, sexual orientation, race or of politics, religion and other opinions. The Society will maintain and manage the use of the hall and raise its profile through a variety of methods including internet, local media, posters and leaflet dropping.
The Society aims to combat some of the disadvantages in the area by providing a wide variety of resources and services for the local community including pre-school provision, health activities, clinics and senior citizens’ centres. These facilities will help local residents to learn and improve their skills and enrich their lives.
Upon completion of the refurbishment works we would look to entice users to hire out the facilities as well as continue to finance any ongoing running costs by a combination of volunteering and fund raising. We currently run various activities such as quiz nights and raffles to generate funds. Post Covid we would continue to run other events at the Centre to generate funds and encourage more of the community to make use of the Centre.
6
## **Responsibilities of the Management Committee**
Company law requires the Committee of Management, as directors, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that period.
In preparing those statements the Committee is required to:
- select suitable accounting policies and then apply them consistently
- make adjustments and estimates that are reasonable and prudent
- follow applicable accounting standards, auditing standards and the statement of recommended practice, subject to any material departures disclosed in the statements, and
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue to operate.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity to enable them to ensure that the accounts comply with the Companies Act 2006. The Trustees are 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.
This report has been prepared in accordance with the Statement of Recommended Practice Charities SORP 2015 and the provisions of Part 15 of the Companies Act 2006 relating to small companies. It was approved on 26[th] February, 2021 by the Management Committee and signed on its behalf by:
**Signature:** Andrew McFadden (May 6, 2021 13:51 GMT+1)
**Email:** andy.mcfadden@outlook.com
Mr A McFadden (Trustee) **26[th] February, 2021**
7
## **Independent Examiner's Report to the Basingstoke Irish Society**
I report on the accounts of the Company for the year ended 31 December, 2020, which are set out on pages 9 to 22.
## **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 audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 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 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 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, 2015
- 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.
Claire Watts 7[th] April, 2021
20 Ash Grove Cowes Isle of Wight PO31 7HS
8
## **BASINGSTOKE IRISH SOCIETY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER, 2020**
|2019
Totals
£
Notes
**Income from**
35,302 Donations and legacies
2
14,867 Charitable activities
2
3,650 Other trading activities
2
95,111 Income from trading subsidiary
7
**148,930**
**Total income**
**Expenditure on**
11,917 Raising funds
3
21,791 Charitable activities
3
83,173 Trading subsidiary costs
7
**116,881**
**Total expenditure**
**32,049**
**Net Income/expenditure before**
**transfer**
**Transfers**
0 Gross transfer between funds
**32,049**
**Net movement in funds**
**Reconciliation of funds**
24,340 Total funds brought forward
**56,389**
**Total funds carried forward**
18|2020
**Restricted**
**Funds**
£
0
0
0
0
**0**
0
0
0
**0**
**0**
0
**0**
0
**0**|2020
**Unrestricted**
**Funds**
£
27,126
1,991
40,180
0
**69,297**
0
85,499
0
**85,499**
**(16,202)**
0
**(16,202)**
56,389
**40,187**|2020
Totals
£
27,126
1,991
40,180
0|
|---|---|---|---|
||||**69,297**
0
85,499
0|
||||**85,499**
**(16,202)**
0|
||||**(16,202)**|
||||56,389|
||||**40,187**|
All income and expenditure has arisen from continuing activities.
The notes on pages 13 to 22 form part of these accounts
9
## **BASINGSTOKE IRISH SOCIETY CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER, 2020**
|2019
Totals
£
Notes
**Income from**
40,305 Donations and legacies
2
14,867 Charitable activities
2
3,650 Other trading activities
2
Income from trading subsidiary
7
**58,822**
**Total income**
**Expenditure on**
11,917 Raising funds
3
21,791 Charitable activities
3
Trading subsidiary costs
7
**33,708**
**Total expenditure**
**25,114**
**Net Income/expenditure before**
**transfer**
**Transfers**
0 Gross transfer between funds
**25,114**
**Net movement in funds**
**Reconciliation of funds**
24,337 Total funds brought forward
**49,451**
**Total funds carried forward**
18|2020
**Restricted**
**Funds**
£
0
0
0
0
**0**
0
0
0
**0**
**0**
**0**
0
**0**|2020
**Unrestricted**
**Funds**
£
34,858
1,991
3,446
0
**40,295**
0
49,559
0
**49,559**
**(9,264)**
0
**(9,264)**
49,451
**40,187**|2020
Totals
£
34,858
1,991
3,446
0|
|---|---|---|---|
||||**40,295**
0
49,559
0|
||||**49,559**
**(9,264)**
0|
||||**(9,264)**|
||||49,451|
||||**40,187**|
All income and expenditure has arisen from continuing activities.
The notes on pages 13 to 22 form part of these accounts
10
## **BASINGSTOKE IRISH SOCIETY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER, 2020**
|**2019**
**Totals**
Notes
**£**
**Income**
58,822 Grants, donations and other income
2
**58,822 Total income**
**Direct costs**
0 Staff wages and salaries
9,880 Other direct costs
3
**9,880 Total direct costs**
**48,942 Gross margin**
23,828 Administrative expenses
3
**25,114 Net surplus of income over expenditure**
0 Interest receivable and similar income
0 Interest payable and similar charges
**25,114 Net surplus of income over expenditure before taxation**
0 Taxation
**25,114 Retained surplus for the period**
24,337 Retained surplus brought forward
**49,451 Retained surplus carried forward**
18|**2020**
**Totals**
**£**
40,295|
|---|---|
||**40,295**
1,488|
||**1,488**|
||**38,807**|
||48,071|
||**(9,264)**|
||0
0|
||**(9,264)**|
||0|
||**(9,264)**
49,451|
||**40,187**|
All income and expenditure has arisen from continuing activities.
The notes on pages 13 to 22 form part of these accounts
11
## **BASINGSTOKE AND IRISH SOCIETY CONSOLIDATED AND CHARITY BALANCE SHEET AS AT 31 DECEMBER, 2020**
|Notes
**Fixed Assets**
Tangible assets
8
Investments
9
**Total fixed assets**
**Current assets**
Stocks
10
Debtors
11
Cash at bank and in hand
12
**Total current assets**
**Liabilities**
Creditors: Amounts falling due
within one year
13
**Net current assets or liabilities**
**Total assets less current liabilities**
**The funds of the Charity:**
Restricted income funds
Unrestricted income funds
Designated funds
Unrestricted funds
Total unrestricted funds
**Total Charity funds**
18|**Group**
2019
2020
£
£
34,389
28,671
0
0
34,389
28,671
5,775
1,500
0
3,756
30,385
20,417
36,160
25,673
14,160
14,157
22,000
11,516
56,389
40,187
0
0
27,700
32,499
28,689
7,688
56,389
40,187
56,389
40,187|**Charity**
2019
2020
£
£
34,389
28,671
1
1
34,390
28,672
0
0
11,151
4,549
10,008
18,623
21,159
23,172
6,098
11,657
15,061
11,515
49,451
40,187
0
0
27,700
25,561
21,751
14,626
49,451
40,187
49,451
40,187|**Charity**
2019
2020
£
£
34,389
28,671
1
1
34,390
28,672
0
0
11,151
4,549
10,008
18,623
21,159
23,172
6,098
11,657
15,061
11,515
49,451
40,187
0
0
27,700
25,561
21,751
14,626
49,451
40,187
49,451
40,187|
|---|---|---|---|
||||28,672
0
4,549
18,623|
||||23,172|
||||11,657|
||||11,515|
|||||
||||40,187|
||||0
25,561
14,626|
||||40,187|
||||40,187|
For the year ended 31 December, 2020 the Company was entitled to exemption from audit under Section 477 of the Companies Act 2006. The Members have not required the Company to obtain an audit of its financial statements for the year ended 31 December, 2020 in accordance with Section 476 of the Companies Act 2006. The Directors acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of the accounts.
These financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006 and also in accordance with the Financial Reporting Standard 102. These financial statements were approved by the Directors on 26[th] February, 2021.
## **Signature:**
Andrew McFadden (May 6, 2021 13:51 GMT+1)
**Email:** andy.mcfadden@outlook.com
**A McFadden, Director** 26[th] February, 2021
12
## **BASINGSTOKE IRISH SOCIETY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER, 2020**
## **1. Accounting Policies**
The financial statements have been prepared under historical cost convention as modified by the revaluation of certain assets. These financial statements of the charitable Company for the year ended 31 December 2020 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) issued by the Financial Reporting Council.
## **a) Basis of preparing the financial statements**
The financial statements of the charitable Company, which is a public entity under FRS 102, have been prepared in accordance with:
- i. 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 (FRS102) effective 1 January, 2015’;
- ii. Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Northern Ireland’;
- iii. the Charities Act 2011;
- iv. the Companies Act 2006; and
- v. the historic cost basis of accounting.
## **Financial reporting standard 102 – reduced disclosure exemption**
The Charity has taken advantage of the exemption in preparing these financial statements, as permitted by FRS 102 ‘The Financial Reporting Standard applicable in the UK and Northern Ireland’ s1.12 (b) not to produce a Statement of Cash Flow as required by Section 7.
## **b) Financial Statements**
Although the Charity, as a small reporting entity is exempt from having to produce consolidated group accounts, the Charity feels it is appropriate to do so. Therefore, these financial statements do consolidate the results of the Charity and its wholly owned subsidiary, Basingstoke Irish Society Trading Co Limited on a line by line basis. A separate Statement of Financial Activities and an Income and Expenditure account, for the Charity itself has also been presented.
## **c) 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 that the amount can be reliably measured.
Voluntary income including donations, legacies and grants which provide core funding or are of a general nature is only deferred when the donor specifies the grant or donation must be used in a future accounting period, or the donor has imposed conditions which must be met before the Charity has unconditional entitlement.
Income from charitable activities including income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised when the conditions are met.
## **d) 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 of the amount and that the amount of the obligation can be reliably measured.
13
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated on a consistent and equitable basis.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity.
## **e) Costs of raising funds**
Costs of raising funds are those costs incurred in attracting voluntary income and those incurred with minor trading activities which raise funds. Charitable activities includes all directly attributable expenditure including support costs. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity. The Charity has an agreement with its subsidiary to apportion appropriate running costs of the premises for its shared use. These charges, net of VAT, are netted off the operating costs in these financial statements and not treated as income. They are recognised as input tax for VAT purposes.
## **f) Asset Policies**
Tangible fixed assets are capitalised when costing £1,000 or more and are stated in the balance sheet at cost less accumulated depreciation. Depreciation is charged to write off the cost of the asset on a straight line basis over the estimated useful life.
Plant & Machinery 10%
The income and property of the Charity is applied solely towards the promotion of its objects as set forth in its Memorandum of Association.
## **g) Debtors**
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
## **h) Cash and cash equivalents**
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
## **i) Financial instruments**
The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks and other third parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.
14
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **j) Funds Structure Policy**
Restricted funds are subject to restrictions on their expenditure by the donor. Unrestricted funds are available for use at the discretion of the Management Committee in furtherance of the general objectives of the Charity. Designated funds are funds that are earmarked for a particular purpose. Currently no funds are restricted in their use. The Trustees have set up a designated fund in respect of Grants given for the provision of fixed assets. The funds were recognised in the Statement of Financial Activities when received but a designated fund has been created reflecting the book value of the assets. The reduction in the designated fund therefore reflects the depreciation charge made on the assets each year.
## **k) Other Policies**
## **Pension**
The Charity operate a pension scheme for core staff in compliance with auto-enrolment. This was introduced from the staging date of 1[st] January, 2017 and NEST are the appointed workplace pension provider.
## **Judgments in applying accounting policies and key sources of estimation uncertainty**
The Charity makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. There were no estimates or assumptions made that would have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
## **2. Income**
During the year the Charity received grant income of £1,123 (2020: £33,552) from Basingstoke and Deane Borough Council for the refurbishment of the Centre. The income is recognised in full in the year. The associated expenditure is capitalised in the accounts. An amount equivalent to the net book value of the asset is held as designated reserves.
All the income is unrestricted. Gift Aid income is received from the Charity’s trading subsidiary and is therefore eliminated within the Group accounts but shown in the Charity’s own accounts. The trading subsidiary made profits before tax of £11,940 [2019: £11,940]. The sum of £5,003 [2019: £5,003] was received in the year. The balance of £731 will be paid over following approval by the Director.
Incoming resources have been analysed by their source in the table on the next page:
15
|**Donations**
Donations and other income
Government Job Retention Scheme
Gift aid
Total
**Charitable activities**
Lettings
Admissions
Membership
Raffles
Total
**Other trading activities**
Car parking
**Allocation of Support Costs**
**Administrative costs**
Wages and salaries
Governance (see note 4)
Heating and lighting
Rent
Water
Repairs
Security
Refuse
Insurance
Stationery
Telephone
Cleaning
Bad Debts
Other support
Total
**Direct Costs**
**Totals**|Total
Costs
£
29,478
60
2,002
3,431
868
964
270
432
3,142
607
500
130
0
19,866
61,750
1,488
63,238|Less
Recharged
to Trading
Company
£
5,069
0
1,688
1,063
400
225
240
395
750
0
0
0
0
3,849||2019
£
35,302
0
5,003
40,305
9,165
4,802
400
500
14,867
3,650
3,650
Bourne by
Charity
£
24,409
60
314
2,368
468
739
30
37
2,392
607
500
130
0
16,017
48,071
1,488
49,559||2020
£
13,435
13,692
7,731
34,858
1,521
0
0
470
1,991
3,446
3,446
Raising
funds
£
12,205
30
157
1,184
234
370
15
19
1,196
304
250
65
0
8,009
24,038
0
24,038|Charitable
activities
£
12,204
30
157
1,184
234
369
15
18
1,196
303
250
65
0
8,008
24,033
1,488
25,521|
|---|---|---|---|---|---|---|---|
|||||||||
|||||||||
|||||||||
|||||||||
|||||||||
||||
|||||
|||13,679
0||||||
|||13,679||||||
## **3. Allocation of Support Costs**
16
The Charity's wholly owned subsidiary, Basingstoke Irish Society Trading Co Limited operates a licensed bar from the Charity's premises. The Charity recharges the trading Company for the shared operating costs of the premises by apportionment on an equitable and commercial basis. The Charity and its subsidiary have an agreement in place, that is reviewed at its Annual General Meeting, as to the scope and apportionment of these shared costs.
Of the remaining costs borne by the Charity, any cost directly associated with an activity is charged to that activity and identified under direct costs within the income and expenditure account. The remaining administrative support costs, are then apportioned on a pro-rata basis and is shown on the following table:
## **4. Governance Costs**
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity.
|**Governance costs**
Independent Examiner's fees
Accountancy fees
Legal fees
Licences
AGM Costs
Total
**Movement in total funds for the year**
This is stated after charging:
Depreciation
Independent Examiner's fees (2019 & 20)|2019
£
0
600
45
1,330
50
2,025
2019
£
6,314
0|2020
£
150
600
0
338
60|
|---|---|---|
|||1,148|
|||2020
£
7,818
150|
## **5. Movement in total funds for the year**
## **6. Staff costs and Trustee remuneration**
None of the members of the Management Committee received any remuneration during the year. None of the Trustees were paid any expenses in the year.
No employees had emoluments in excess of £60,000.
## **7. Commercial trading operations**
Basingstoke Irish Society Trading Co Limited, which is incorporated in England and Wales, is a wholly owned subsidiary by virtue of owning the entire share capital of £1. The subsidiary will pay all of its profit chargeable to corporation tax, to the Charity, by Gift Aid, when cash flow allows and within nine months of the year end.
The gift aid is a distribution of reserves under company law but unlike dividends an allowable expense for corporation tax purposes. The gift aid relief is only allowable in the year it is paid but under HMRC rules as the Company is a wholly owned subsidiary of the Charity it can be relieved in an earlier year
17
providing it is physically paid within nine months of that year-end. The charge however is only recognised when paid or is a liability only when declared. During the year the Trading Company paid the £6,938 owing from the previous year and £nil for the current year. There is a further £793 to pay. The declaration of the full and final gift aid payment is therefore after the reporting period and thus the reserves remain within the Subsidiary at the year end.
A summary of the trading account is provided below.
|**Summary trading profit and loss account**
**Turnover**
Sales
**Cost of sales**
Purchases
Decrease/(increase) in stocks
Direct labour
Other direct costs
**Gross profit**
**Administrative expenses**
Rent
Rates
Light and heat
Bank charges
Insurances
Repairs and maintenance
Sundry expenses
Accountancy fees
**Operating profit**
Interest receivable
**Profit on ordinary activities**
Brought forward
Gift aid distribution - prior year
Gift aid distribution - current year
**Total retained earnings**|2019
£
95,111
39,507
649
25,746
953
66,855
28,256
1,063
1,368
6,748
726
829
301
3,527
1,800
16,362
11,894
46
11,940
4
(3)
(5,000)
6,941|2020
£
36,732
15,445
4,275
5,069
104|
|---|---|---|
|||24,893
11,839
1,063
400
1,688
506
850
1,608
3,134
1,800|
|||11,049
790
0|
|||790
6,941
(6,938)
(793)|
|||0|
**8. Tangible Fixed Assets**
Tangible fixed assets are depreciated over its useful life:
|Building refurbishment|10 years|
|---|---|
|Plant and machinery (internal)|10 years|
|Plant and machinery (external)|4 years|
|Fixtures|4 years|
18
|**Cost or valuation**
At 1 January, 2020
Additions
Disposals
At 31 December, 2020
**Depreciation**
At 1 January, 2020
Additions
Disposals
At 31 December, 2020
**Net book value**
At 31 December, 2020
At 31 December, 2019|Land &
Buildings
£
27,960
0
27,960
1,999
2,796
4,795
23,165
25,961|Plant &
machinery
£
31,950
0
31,950
27,877
3,253
31,130
820
4,073|Fixtures
&
fittings
£
4,977
2,100
7,077
622
1,769
2,391
4,686
4,355|Totals
£
64,887
2,100
0|
|---|---|---|---|---|
|||||66,987|
|||||30,498
7,818
0|
|||||38,316|
|||||28,671
34,389|
## **9. Fixed Asset Investments**
Investments in the subsidiary undertaking of the Charity comprise £1 at both beginning and end of year.
**Name Country of Class of Holding Principal activity incorporation shares** Basingstoke Irish England Ordinary 100 % Provision of licenced bar Society Trading Co Limited
## **10. Stock**
|**Stock**
Bar stocks for resale
Total|**Group**
2019
2020
£
£
5,775
1,500
5,775
1,500|**Charity**
2019
2020
£
£
0
0
0
0|**Charity**
2019
2020
£
£
0
0
0
0|
|---|---|---|---|
||||0|
19
## **11. Debtors**
|**Group**
2019
2020
£
£
**Debtors**
Trade debtors
0
0
Amounts owed from group undertakings
0
0
VAT Refund
0
1,956
Other debtors
0
1,800
Total
0
3,756
**12. **
**Cash and cash equivalents**
**Cash and cash equivalents**
Cash at bank
Other
Total
**13. Creditors**
**Group**
2019
2020
£
£
**Creditors**
Trade creditors
11,034
2,151
Amounts owed to group undertakings
0
0
Accruals
0
75
HMRC VAT & PAYE
2,994
2,431
Other
132
9,500
Total
14,160
14,157
**14. **
**Financial Instruments**
**FINANCIAL ASSETS**
Financial assets measured at fair value through Statement of
financial activities
Financial assets that are debt instruments measured at amortised cost
Total||**Charity**
2019
2020
£
£
0
0
11,151
793
0
1,956
0
1,800
11,151
4,549
2019
2020
£
£
10,008
18,623
0
0
10,008
18,623
**Charity**
2019
2020
£
£
4,447
689
0
0
0
75
1,519
1,393
132
9,500
6,098
11,657
2019
2020
£
£
10,008
18,623
10,008
18,623|
|---|---|---|
||||
||||
||||
||||
20
Financial assets measured at fair value through the Statement of financial activities comprise trade debtors. This excludes any debtors for grants or donations that are not of a contractual nature.
Financial assets that are measured at amortised cost comprise cash and cash equivalents.
|**FINANCIAL LIABILITIES**
**Charity**
Tangible fixed assets
Investments
Current assets
Current liabilities
Total|**2019**
**Total**
**£**
34,389
1
21,159
(6,098)
49,451|**2020**
**Restricted**
**£**
0
0
0
0
0|**2020**
**Unrestricted**
**£**
28,671
1
21,216
(9,701)
40,187|**2020**
**Total**
**£**
28,671
1
21,216
(9,701)|
|---|---|---|---|---|
|||||40,187|
Financial liabilities that are measured at amortised cost comprise trade and other creditors, accruals and deferred income.
## **15. Deferred Income**
Income is deferred when there is a contractual entitlement to the funds but there is an obligation to spend the money in a future period or finance expenditure in a future period. This may occur when the donor may specify the time period over which the expenditure of resources on a service can take place or when a multi period grant is approved and is to be paid on the basis of agreed annual budgets. There was no deferred income at the end of the year.
## **16. Taxation**
Basingstoke Irish Society is a charity within the meaning of the Charities Act 2011 and as such is a charity within the meaning of Part 11, Corporation Tax Act 2010. Accordingly, the Charity, which is a registered with the Charity Commission, is potentially exempt from taxation in respect of income or gains received within Part 11, Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to its charitable purposes. During the year its income and chargeable gains were applicable and only applied for charitable purposes. The Charity is also registered with HMRC for Corporation tax and gift aid purposes.
## **17. Analysis of net assets between funds**
|**Charity**
Tangible fixed assets
Investments
Current assets
Current liabilities
Total|**2019**
**Total**
**£**
34,389
1
21,159
(6,098)
49,451|**2020**
**Restricted**
**£**
0
0
0
0
0|**2020**
**Unrestricted**
**£**
28,671
1
21,216
(9,701)
40,187|**2020**
**Total**
**£**
28,671
1
21,216
(9,701)|
|---|---|---|---|---|
|||||40,187|
21
## **18. Analysis of movement in Charity Funds**
|**Charity**
Restricted
General
Designated
Total|**B/fwd**
**£**
0
21,681
27,770
49,451|**Income**
**£**
0
38,030
2,265
40,295|**Expended**
**£**
0
(45,085)
(4,474)
(49,559)|**C/fwd**
**£**
0
14,626
25,561|
|---|---|---|---|---|
|||||40,187|
## **19. Related party transactions**
The Charity's wholly owned subsidiary, Basingstoke Irish Society Trading Co Limited operates a licensed bar from the Charity's premises.
The Charity charges the trading Company for the operating costs of the premises by apportionment on an equitable and commercial basis. During the year the Charity recharged salaries of £5,069 [2019: £25,746] and support costs of £8,610 net of VAT [2019: £13,836]. The support costs specifically includes a rent recharge to the subsidiary of £1,063 being 25% [2019: £1,063 (25%)] of the annual rental. During the year the subsidiary paid £6,938 (2019: £5,003) in Gift Aid to the Charity. The subsidiary is due to pay a further £793 representing all of its taxable income. This amount was approved by the Director and then declared by the Members on 26[th] February, 2021
At 31 December, 2020 the Charity was owed £nil [2019: £11,151] by the subsidiary in respect of recharged costs.
22