## **FEARON COMMUNITY ASSOCIATION LTD** **(A COMPANY LIMITED BY GUARANTEE)** **FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2021** **Company Number : 6852232 Charity Number: 1130457** **Cound & Co LLP** **Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR** **Tel: 01509 214163** **- 1 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **TRUSTEES ANNUAL REPORT** The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2021. ## 1) REFERENCE AND ADMINISTRATIVE DETAILS ## a) REGISTERED CHARITY NUMBER 1130457 ## b) COMPANY NUMBER 6852232 ## c) REGISTERED OFFICE Fearon Hall Rectory Road Loughborough Leics, LE11 1PL ## d) BANKERS Metro Bank One Southampton Row London WC1B 5HA ## e) SOLICITORS Moss Solicitors LLP 80-81 Woodgate Loughborough LE11 XE ## f) ACCOUNTANTS AND INDEPENDENT EXAMINERS Cound & Co LLP 1 Princes Court Royal Way Loughborough Leics, LE11 5XR ## DIRECTORS AND TRUSTEES The directors of the charitable company (the charity) are its trustees for the purpose of the charity law and throughout this report are collectively referred to as the trustees. The trustees who served during the period were as follows: R E Thorpe M L Welbourne A B Rhodes Dr C E Tello R M M Cant (appointed 8/9/20) G L Thomson (appointed 8/9/20) M Charlesworth (appointed 8/9/20) **- 2 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **TRUSTEES ANNUAL REPORT** ## 2) OBJECTIVES AND ACTIVITIES The Memorandum of Association dated 19 March 2009 states that the objects of the charity are to provide educational, social and recreational facilities for people living in the North East area of Loughborough and to maintain and run the building known as the Fearon Hall as a centre offering such opportunities. The Association’s income comprises grants from local authorities, rental income from the hire of the Hall’s function rooms and the sale of lunches. ## 3) STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document Fearon Community Association Ltd is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19 March 2009. It is a charity registered with the Charity Commission. Membership is open to any affiliated 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 has a minimum of three trustees and it is not subject to a maximum number. One trustee retires in rotation at each Annual General Meeting, but may be re-appointed. Members are invited to nominate trustees prior to the AGM. Trustee 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. Public Benefit The trustees have had regard to the guidance published by the Charities Commission in respect of public benefit when exercising any powers or duties to which the guidance is relevant. ## 4) RISK MANAGEMENT The management committee confirms that the major risks to which the charity is exposed have been reviewed and systems have been established to mitigate those risks. - (a) The properties are properly insured and well maintained. - (b) Staff are properly trained in the care of children and in Health and Safety procedures. - (c) All significant bank transactions have to be authorised by two trustees or senior employees. ## 5) ACHIEVEMENTS AND PERFORMANCE Like all organisations, Covid has dominated our year. As we negotiated through the early stages of the pandemic we saw our income drop by 80% overnight when we were all forced into lockdown on the 23 March. As Fearon Community Association (FCA) exists to support people in our area, we made the decision to continue to do just that, rather than close entirely due to the impact on our finances. In hindsight it was a brave decision to have taken - to keep our service delivery going whilst trying to navigate the fast changing rules and legislation of this new Covid world. As a Board we then agreed to review the financial situation after four months to see if we could afford to continue to support our community moving forward. . **- 3 -** **FEARON COMMUNITY ASSOCIATION LIMITED** ## **TRUSTEES ANNUAL REPORT** ## 5) ACHIEVEMENTS AND PERFORMANCE (continued) Our decision was proven right. Whilst our Centre Manager’s time was diverted to supporting the wider Charnwood Community Action response, closer to home, our Activities and Bookings Manager worked tirelessly to adapt how we support our local residents and regular Hall users within a Covid-secure framework. Between March and June, more than 400 welfare calls were made which covered a diverse range of issues from helping a victim of online fraud to offering advice on how to make Yorkshire puddings rise! Large issues or small, I know what a difference this regular support has made to the lives of our local people in this unprecedented year. You can see from the stories on our website and ‘Our Covid Year’ timeline in this report more about what we have achieved. Funding from a range of providers has enabled us to cover core running costs, increased cleaning and the wages of the Centre Manager and the Activities and Bookings Manager including making this role full-time to reflect the increased workload. These roles have been vital in ensuring we were able to keep delivering for the entirety of lockdown - all be it virtually when we were physically not able to open our doors - and be able to hit the ground running when Government restrictions were lifted. It has been great to welcome friends old and new back into the Hall. Time has been taken to focus on our recovery with strong financial planning aimed at increasing room bookings to enable us to continue to deliver community benefit. Improvements to our wonderful building have also been made so that the user experience has been improved. I am proud to announce security in the building for the next 25 years through the successful negotiation of the lease with the Leicester Diocesan Board of Finance and All Saints with Holy Trinity, and we are also delighted to welcome Charnwood Arts who are now officially making the Hall their home. As we move into the next year with the security of the National Lottery funding behind us, we are also taking time to reflect on our strategic governance and reviewing our effectiveness as a board to take on the challenges arising from Covid recovery. We remain fully committed to keeping Fearon Hall at the heart of our community as we face the long-term impact of this difficult year on our users’ well-being. ## 6) FINANCIAL REVIEW The year to March 2021 was certainly an unusual one. When the realities of Covid started to become clear there were some initial concerns about how things would go for FCA. At that early stage there were enough resources to keep things going and offer services to the community for at least four months so the decision was taken to do exactly that. Very soon after that help from the government and local councils was made available and, along with National Lottery, the grants income across the year has been the most significant area on which to report. The National Lottery awarded £70,000 for Covid funding, furlough claims totalled £10,647, Leicestershire County Council awarded £11,955 from its Communities Fund, and Charnwood Borough Council awarded £40,809 across a number of business support grants. And along with the Strategic Partnership Grant of £30,489 Charnwood Borough Council also awarded a grant of £19,734 as match funding for the new kitchen. £25,050 of grants for the kitchen had been received in previous years and these were released into the accounts this year. Due to lockdowns and other restrictions throughout the year income from other activities fell sharply. However, demand for the services offered has never been better and we expect to see income return to pre-Covid levels very quickly in the coming year. Most overheads and running costs were reduced in the year compared to the previous year due to fewer activities. The only major increases were some legal costs regarding lease negotiations, the kitchen refurbishment costs , and an increase in wages due to making the part-time Activities Coordinator role into a full-time Activities and Bookings Manager role with Assistant Manager responsibilities. **- 4 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **TRUSTEES ANNUAL REPORT** ## 7) RESERVES POLICY The charity’s reserves policy is to hold, if possible, reserves equivalent to six months expenditure. **……………………………………………** Andy Rhodes Chair **……………………………………………** 10 June 2021 Michael Welbourne Treasurer **- 5 -** ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF** ## **FEARON COMMUNITY ASSOCIATION LIMITED** I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021 which are set out on pages 6 to 13. ## **Responsibilities and Basis of Report** As the charity 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 requirement 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 company’s accounts as carried out under section 145 of the Charities 2011 Act (‘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 that in any material respect: 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. 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. D R Gradon MA FCA Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR 10 June 2021 - **6 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 MARCH 2021** |INCOME FROM:
Generated Funds
Activities for generating funds
Investment Income
Charitable Activities
Miscellaneous Income
Cafe Income
Council Grants
Fundraising Events
Other Grants
Donations
TOTAL INCOME
EXPENDITURE:
Charitable Activities
Cafe Expenses & Wages
Fundraising Event Expenses
Operating Costs
Pension provision adjustment
Governance Costs
Classes and Groups expenditure
TOTAL EXPENDITURE
Net Income (Expenditure) and Net Movement in Funds
RECONCILIATION OF FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD|Unrestricted
Unrestricted
Funds
Funds
Notes
2021
2020
2
17016
68878
3
46
58
1500
1627
1806
21236
4a
93071
30489
964
3615
4b
127931
7819
5574
-
______
______
£247908
£133722
______
______
5
12184
16512
120
2334
6
167737
100312
15
1014
(232)
7
13447
6636
7749
3720
______
______
202251
129282
______
______
45657
4440
(1634)
(6074)
_____
_____
£44023
£(1634)
_____
______| |---|---| - **7 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **BALANCE SHEET AS AT 31 MARCH 2021** |
FIXED ASSETS
CURRENT ASSETS
Debtors
Cash
Bank
CREDITORS - Due within one period
TOTAL NET ASSETS
PROVISIONS FOR LIABILITIES AND CHARGES
TOTAL ASSETS LESS CURRENT LIABILITIES
UNRESTRICTED FUNDS
Accumulated Fund|Notes 2021
2020
10
11601
8
6757
9468
323
770
51242
34540
_____
_____
58322
44778
9
9231
49091
34652
_____
_____
_____
60692
15
16669
_____
£44023
_____
13
£44023
_____|7990
10126
_____
18116
19750
_____
£(1634)
_____
£(1634)
______| |---|---|---| 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 10 June 2021 and signed on its behalf by ……………………………………… R E Thorpe (Trustee) The information on pages 8 to 14 form an integral part of these financial statements. **- 8 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** ## 1 ACCOUNTING POLICIES ## a) Basis of Preparation of Financial Statements These financial statements have been prepared in accordance with the Charities SORP (FRS102): “Accounting and Reporting by Charities, Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS102, the Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS102”) (effective 1 January 2015), FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective September 2015), The Charities Act 2011 and the Companies Act 2006. The disclosure requirements of section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view. The Charity constitutes a public benefit under FRS102. ## b) Company Status The charity 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 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 to be used for specific purposes as laid down by the donor and expenditure which meets these criteria is charged to the fund. ## d) Incoming Resources All incoming resources are included in the SOFA when the charity is legally entitled to the income and can be quantified with reasonable accuracy. ## 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. Resources expended include attributable VAT which cannot be recovered. ## f) Tangible Fixed Assets and Depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at a rate calculated to write off the cost of each asset over its expected useful life as follows: Fixtures, Fittings and Equipment - 3 Year Straight line ## g) Stock Stocks are valued at the lower of cost and net realisable value, after making due allowances for slow and obsolete moving items. ## h) Pensions The pension costs charged in the accounts represent the contributions payable by the charity during the year. ## i) Foreign Currency - Currencies are translated at the conversion rate on the balance sheet date. **- 9 -** **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** |2
3
4a
4b|ACTIVITIES FOR GENERATING FUNDS
Unrestricted
Unrestricted
Funds
Funds
Rents and Lease Income Comprise:
2021
2020
Room Rental Income
16883
66376
Photocopying
105
960
Classes and Groups
28
1542
_____
_____
£17016
£68878
_____
_____
INVESTMENT INCOME
2021
2020
Bank Interest
£46
£58
___
___
COUNCIL GRANTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
CBC - Core Grant
30489
30489
CBC - Covid support Grants
28310
-
CBC - Local Restriction Support Grant
12500
-
LCC – Communities Fund Grant
11955
-
LCC – Tackling Inequalities Fund
9817 -
______
______
£93071
£30489
______
______
OTHER GRANTS
2021
2020
Lottery Grant
70000
-
Kitchen Refurbishment
44784
-
Activities Coordinator
2500
7500
Upcycle Your Life
-
319
Furlough Claims
10647
-
______
______
£127931
£7819
______
______|ACTIVITIES FOR GENERATING FUNDS
Unrestricted
Unrestricted
Funds
Funds
Rents and Lease Income Comprise:
2021
2020
Room Rental Income
16883
66376
Photocopying
105
960
Classes and Groups
28
1542
_____
_____
£17016
£68878
_____
_____
INVESTMENT INCOME
2021
2020
Bank Interest
£46
£58
___
___
COUNCIL GRANTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
CBC - Core Grant
30489
30489
CBC - Covid support Grants
28310
-
CBC - Local Restriction Support Grant
12500
-
LCC – Communities Fund Grant
11955
-
LCC – Tackling Inequalities Fund
9817 -
______
______
£93071
£30489
______
______
OTHER GRANTS
2021
2020
Lottery Grant
70000
-
Kitchen Refurbishment
44784
-
Activities Coordinator
2500
7500
Upcycle Your Life
-
319
Furlough Claims
10647
-
______
______
£127931
£7819
______
______|ACTIVITIES FOR GENERATING FUNDS
Unrestricted
Unrestricted
Funds
Funds
Rents and Lease Income Comprise:
2021
2020
Room Rental Income
16883
66376
Photocopying
105
960
Classes and Groups
28
1542
_____
_____
£17016
£68878
_____
_____
INVESTMENT INCOME
2021
2020
Bank Interest
£46
£58
___
___
COUNCIL GRANTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
CBC - Core Grant
30489
30489
CBC - Covid support Grants
28310
-
CBC - Local Restriction Support Grant
12500
-
LCC – Communities Fund Grant
11955
-
LCC – Tackling Inequalities Fund
9817 -
______
______
£93071
£30489
______
______
OTHER GRANTS
2021
2020
Lottery Grant
70000
-
Kitchen Refurbishment
44784
-
Activities Coordinator
2500
7500
Upcycle Your Life
-
319
Furlough Claims
10647
-
______
______
£127931
£7819
______
______| |---|---|---|---| |||2020
-
-
7500
319
-
______
£7819
______|2020| **- 10 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** |5
6
7|CAFE COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Wages
9829
10892
Purchases & Cleaning
2355
5620
_____
_____
£12184
£16512
_____
_____
OPERATING COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Advertising & Marketing
-
100
Repairs and Refurbishment
69182
15957
Cleaning Materials & Wages
15792
7692
Salaries
23088
16143
Staff Pension
1407
970
Licences
1566
2097
Light and Heat
8657
9914
Insurance
4562
5112
Water
1475
2136
Telephone
1272
950
Postage and Stationery
1731
1025
Photocopying
921
2602
Bank Charges
-
248
Miscellaneous (canteen, volunteers’ lunches etc)
3290
4781
Rent
1
1
Loss on Exchange
190
(136)
Depreciation
5115
1232
Bad Debt (Recovered
150
1506
Hall Management Fees
27500
24833
Training
75
224
Computer Expenses
1763
1598
Loss on Disposal of Assets
-
1327
______
______
£167737
£100312
______
______
GOVERNANCE COSTS
2021
2020
Accountancy
1513
1813
Bookkeeping
4094
4203
Legal and Professional Fees
7840
620
_____
_____
£13447
£6636
_____
_____|CAFE COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Wages
9829
10892
Purchases & Cleaning
2355
5620
_____
_____
£12184
£16512
_____
_____
OPERATING COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Advertising & Marketing
-
100
Repairs and Refurbishment
69182
15957
Cleaning Materials & Wages
15792
7692
Salaries
23088
16143
Staff Pension
1407
970
Licences
1566
2097
Light and Heat
8657
9914
Insurance
4562
5112
Water
1475
2136
Telephone
1272
950
Postage and Stationery
1731
1025
Photocopying
921
2602
Bank Charges
-
248
Miscellaneous (canteen, volunteers’ lunches etc)
3290
4781
Rent
1
1
Loss on Exchange
190
(136)
Depreciation
5115
1232
Bad Debt (Recovered
150
1506
Hall Management Fees
27500
24833
Training
75
224
Computer Expenses
1763
1598
Loss on Disposal of Assets
-
1327
______
______
£167737
£100312
______
______
GOVERNANCE COSTS
2021
2020
Accountancy
1513
1813
Bookkeeping
4094
4203
Legal and Professional Fees
7840
620
_____
_____
£13447
£6636
_____
_____|CAFE COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Wages
9829
10892
Purchases & Cleaning
2355
5620
_____
_____
£12184
£16512
_____
_____
OPERATING COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Advertising & Marketing
-
100
Repairs and Refurbishment
69182
15957
Cleaning Materials & Wages
15792
7692
Salaries
23088
16143
Staff Pension
1407
970
Licences
1566
2097
Light and Heat
8657
9914
Insurance
4562
5112
Water
1475
2136
Telephone
1272
950
Postage and Stationery
1731
1025
Photocopying
921
2602
Bank Charges
-
248
Miscellaneous (canteen, volunteers’ lunches etc)
3290
4781
Rent
1
1
Loss on Exchange
190
(136)
Depreciation
5115
1232
Bad Debt (Recovered
150
1506
Hall Management Fees
27500
24833
Training
75
224
Computer Expenses
1763
1598
Loss on Disposal of Assets
-
1327
______
______
£167737
£100312
______
______
GOVERNANCE COSTS
2021
2020
Accountancy
1513
1813
Bookkeeping
4094
4203
Legal and Professional Fees
7840
620
_____
_____
£13447
£6636
_____
_____|CAFE COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Wages
9829
10892
Purchases & Cleaning
2355
5620
_____
_____
£12184
£16512
_____
_____
OPERATING COSTS
Unrestricted
Unrestricted
Funds
Funds
2021
2020
Advertising & Marketing
-
100
Repairs and Refurbishment
69182
15957
Cleaning Materials & Wages
15792
7692
Salaries
23088
16143
Staff Pension
1407
970
Licences
1566
2097
Light and Heat
8657
9914
Insurance
4562
5112
Water
1475
2136
Telephone
1272
950
Postage and Stationery
1731
1025
Photocopying
921
2602
Bank Charges
-
248
Miscellaneous (canteen, volunteers’ lunches etc)
3290
4781
Rent
1
1
Loss on Exchange
190
(136)
Depreciation
5115
1232
Bad Debt (Recovered
150
1506
Hall Management Fees
27500
24833
Training
75
224
Computer Expenses
1763
1598
Loss on Disposal of Assets
-
1327
______
______
£167737
£100312
______
______
GOVERNANCE COSTS
2021
2020
Accountancy
1513
1813
Bookkeeping
4094
4203
Legal and Professional Fees
7840
620
_____
_____
£13447
£6636
_____
_____| |---|---|---|---|---| ||||2020
1813
4203
620
_____
£6636
_____|2020| **- 11 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** |8
9|DEBTORS
Hiring of Hall
Prepayments
Other Debtors
CREDITORS- Amounts falling due within one year
Room Hire in Advance
Accruals
Suppliers
Kitchen Refurbishment Costs
Other Creditors|2021
4437
1457
863
_____
£6757
_____
2020
1666
3075
2251
0
2239
_____
£9231
_____|2020
7281
1310
877
_____
£9468
_____
2020
2480
3381
376
25050
3365
_____
£34652
______|2020
7281
1310
877
_____
£9468
_____| |---|---|---|---|---| ## 10 FIXED ASSETS ## a) Leasehold Property Fearon Hall is owned by the PCC of All Saints with Holy Trinity with the Leicester Diocesan Board of Finance. Under a lease agreement dated 29[th] March 2018 the hall is let to Fearon Community Association Ltd for a nominal rent of £1 for a period of three years. Any property refurbishments are written off in full in the year. |b)|Tangible Fixed Assets
Cost at 1 April 2020
Additions in Year
Disposals in Year
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the Year
Eliminated on disposal
At 31 March 2021
Net Book Value At 31 March 2021
Net Book Value at 31 March 2020|Fixtures
Fittings &
Equipment
Total
14552
14552
8726
8726
(0)
0
_____
_____
£23278
£23278
_____
_____
6562
6562
5115
5115
(0)
0
_____
_____
£11667
£11667
_____
_____
£11601
£11601
_____
_____
£7990
£7990
_____
|Total
14552
8726
0
_____| |---|---|---|---| ||||£7990
| **- 12 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** ## 11 TRUSTEES REMUNERATION & RELATED PARTY TRANSACTIONS M L Welbourne is a director of Coalraven Ltd, which provided bookkeeping services to the charity. None of the other trustees received any fees or expense payments. |12
13|STAFF COSTS
Salaries
Pension Costs
Average number of full time equivalent employees
No member of staff earned over £60000 per annum
STATEMENT OF FUNDS
Unrestricted Funds
|At 31
March
2020
B/Fwd
£(1634)
_____|Income
247908
______|Expenditure
202251
_______|2021
71539
1407
_____
£72946

_____
5
_____
-
_____
Transfers
-
_______
|2020
51868
970
_____
£52838
_____
3
_____
-
_____
At 31
March
2021
C/Fwd|2020| |---|---|---|---|---|---|---|---| |||||||44022
______|| ## 14 CONTROL The Charity is controlled by its Members. ## 15 THE PENSIONS TRUST – THE GROWTH PLAN The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £795m, liabilities of £926m and a deficit of £131m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: **- 13 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** ## **Deficit Contributions** From 1 April 2019 to 31 January 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1[st] April) Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies. Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793m, liabilities of £970m and a deficit of £177m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: ## **Deficit Contributions** From 1 April 2016 to 30 September 2025: £12,945,440 per annum (payable monthly and increasing by 3% each on 1st April) From 1 April 2016 to 30 September 2028: £54,560 per annum (payable monthly and increasing by 3% each on 1st April) The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. ## PRESENT VALUES OF PROVISION ||31|March 2021|31 March 2020|31 March 2019| |---|---|---|---|---| |||(£s)|(£s)|(£s)| |Present value of provision||16669|19,750|23,958| ## RECONCILIATION OF OPENING AND CLOSING PROVISIONS ||**Period Ending**|**Period Ending**| |---|---|---| ||31 March 2021|31 March 2020| ||(£s)|(£s)| |Provision at start of period|19750|23,958| |Unwinding of the discount factor (interest expense)|444|304| |Deficit contribution paid|(4095)|(3,976)| |Remeasurements - impact of any change in assumptions|570|(536)| |Remeasurements - amendments to the contribution schedule|-|-| |Provision at end of period|16669|19750| **- 14 -** ## **FEARON COMMUNITY ASSOCIATION LIMITED** ## **NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2021** The following schedule details and deficit contributions agreed between the company and the scheme at each year end period: |**Year**|**ending**|**31**|**March**|**2021**|**31**|**March 2020**|**31 March 2019**| |---|---|---|---|---|---|---|---| |Year|1|||4218||4,095|3,976| |Year|2|||4345||4,218|4,095| |Year|3|||4475||4,345|3,218| |Year|4|||3841||4,475|4,345| |Year|5|||||3,841|4,475| |Year|6||||||3,841| |Year|7||||||| |Year|8||||||| |Year|9||||||| |Year|10|||||||