FEARON COMMUNITY ASSOCIATION LTD
(A COMPANY LIMITED BY GUARANTEE)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Number: 6852232 Charity Number: 1130457
Cound & Co LLP
Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
Tel: 01509 214163
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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 2023.
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 S Modi (Resigned 19 July 2022) R M M Cant G L Thomson M Charlesworth (Resigned 29 March 2023) P J Goodman (Appointed 8 February 2023) D R Gough (Appointed 8 February 2023)
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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.
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(a) The properties are properly insured and well maintained.
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(b) Staff are properly trained in the care of children and in Health and Safety procedures.
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(c) All significant bank transactions have to be authorised by two trustees or senior employees.
5) ACHIEVEMENTS AND PERFORMANCE
At last year’s AGM the Lone Ones Collective led a communal conversation asking “what does community mean?” Responses included: joy, love, food, connecting with people, chances to learn, communication, friendship, talking, people, caring, values and help. Looking back over our activities of the last year, I truly believe that these attributes that embody community are reflected in the amazing variety of activities and support that our team of staff and volunteers have been able to provide. Particular highlights include our expanding community arts programme. The arts have the potential to bridge our worlds, harness and explore the wisdom of our different views, engage our imagination to explore new ways of thinking and create experiences that can be shared by all people in our community. Other shared experiences include the developments with food at Fearon Hall. Our wonderful Café in the Hall is seeing more footfall and the highly popular vegan bistros have been a real hit, providing people the opportunity to connect over a regular monthly meal.
.
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FEARON COMMUNITY ASSOCIATION LIMITED
TRUSTEES ANNUAL REPORT
5) ACHIEVEMENTS AND PERFORMANCE (continued)
We have developed projects that support the very real issues of food poverty and the impact that waste food has on our environment through our Good Food Doing Good Pop Up Store and our relationship with Incredible Edible Loughborough. Whilst there is much to celebrate, we, like the wider community haven’t escaped the rise in the cost of living. We have been hit by the increasing cost of energy, the rise in minimum wage has impacted greatly on our staffing costs and the increase in food prices and availability is being felt by the Café. To date we have managed to absorb these increased costs in order to minimise the impact on our users. However, we do have a legal responsibility to balance these financial commitments whilst still delivering on our charitable objectives. As I hand over the baton of Chair I am confident that with the ongoing dedication of trustees, staff and volunteers, the organisation is well placed to continue to meet these challenges.
6) FINANCIAL REVIEW
I am pleased to report a 30% increase in income for the financial year. This can be mainly attributed to the Café in the Hall more than doubling its income from £19,920 in 2022 to £44,322 this year along with an increase in grant funding of £26,035. There was also a modest improvement in room rental of £4,213. However, café expenses and staff wages also increased by £25,933 which was due to the impact of changes in the minimum wage and the sharp rises in inflation. Room rental has still not recovered to pre-pandemic levels. A key focus area for further income generation should be improving occupancy. Until now the organisation has made the decision to absorb as much as possible the increases in energy, food and general maintenance costs so as to minimise impact on Hall users. Room rental costs were frozen for 2023 and the café has not put up its prices. However, this will need to be reviewed in the next financial year.
7) RESERVES POLICY
The charity’s reserves policy is to hold, if possible, reserves equivalent to six months expenditure.
…………………………………………… 6 September 2023 Andy B Rhodes Chair
…………………………………………… 6 September 2023 Michael L Welbourne Treasurer
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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 2023 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:
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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.
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
6 September 2023
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FEARON COMMUNITY ASSOCIATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2023
| 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 Pension Scheme Administration 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 2023 2022 2 80124 67546 3 208 15 1242 1449 44322 19920 4a 44024 46489 4195 - 4b 111638 85603 1187 - __ _ £286940 £221022 5 60559 34666 2380 150 6 168181 146990 15 8 (8369) 7 10003 13842 26479 16766 1663 - £269273 £204045 17667 16977 61000 44023 __ _ £78667 £61000 ___ |
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FEARON COMMUNITY ASSOCIATION LIMITED
BALANCE SHEET AS AT 31 MARCH 2023
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 2023 2022 10 42472 8 10800 4871 287 2099 51797 70616 _ 62884 77586 9 24086 38798 17391 _ 81270 15 2603 £78667 _ 13 £78667 ___ |
4887 60195 _ 65082 4082 £61000 __ £61000 ______ |
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For the year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
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The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts;
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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 6 September 2023 and signed on its behalf by
………………………………………
A B Rhodes (Chair)
The information on pages 8 to 14 form an integral part of these financial statements.
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
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.
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
| 2 3 4a 4b |
ACTIVITIES FOR GENERATING FUNDS Unrestricted Unrestricted Funds Funds Rents and Lease Income Comprise: 2023 2022 Room Rental Income 61890 57677 Photocopying 1630 1615 Classes and Groups 14847 8254 Community Shop 1757 - _ £80124 £67546 _ INVESTMENT INCOME 2023 2022 Bank Interest £208 £15 COUNCIL GRANTS Unrestricted Unrestricted Funds Funds 2023 2022 CBC - Core Grant 29727 30489 CBC - Covid Support Grants - 16000 CBC – Stair Lift 7797 - CBC – Navigating Recovery 500 - LCC – Arts Group 5000 - LCC – Moving Together 1000 __ _ £44024 £46489 OTHER GRANTS 2023 2022 Lottery Grant 100554 82594 Peoples Health 11084 - Coop – Food Poverty Relief - 1843 Furlough Claims - 1166 £111638 £85603 ___ |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
| 5 6 7 |
CAFE COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Wages 38572 24756 Purchases & Cleaning 21987 9910 _ £60559 £34666 _ OPERATING COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Advertising & Marketing 1576 1531 Repairs and Refurbishment 31606 25201 Cleaning Materials & Wages 27735 20741 Salary (Assistant Manager) 25678 24445 Salary (Manager) 31891 27509 Staff Pension 2400 1574 Licences 2978 1808 Light and Heat 12452 12176 Insurance 5010 5536 Water 2621 1465 Telephone 2036 2514 Postage and Stationery 1325 1468 Photocopying 2125 2566 Miscellaneous (canteen, volunteers’ lunches etc) 2609 5483 Rent 5250 2175 Loss on Exchange (197) 42 Depreciation 7962 6714 Health & Safety 1958 807 Computer Expenses 1166 3235 _ £168181 £146990 GOVERNANCE COSTS 2023 2022 Accountancy 1680 1680 Bookkeeping 5399 5144 Legal and Professional Fees 2724 7018 _ £10003 £13842 __ |
CAFE COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Wages 38572 24756 Purchases & Cleaning 21987 9910 _ £60559 £34666 _ OPERATING COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Advertising & Marketing 1576 1531 Repairs and Refurbishment 31606 25201 Cleaning Materials & Wages 27735 20741 Salary (Assistant Manager) 25678 24445 Salary (Manager) 31891 27509 Staff Pension 2400 1574 Licences 2978 1808 Light and Heat 12452 12176 Insurance 5010 5536 Water 2621 1465 Telephone 2036 2514 Postage and Stationery 1325 1468 Photocopying 2125 2566 Miscellaneous (canteen, volunteers’ lunches etc) 2609 5483 Rent 5250 2175 Loss on Exchange (197) 42 Depreciation 7962 6714 Health & Safety 1958 807 Computer Expenses 1166 3235 _ £168181 £146990 GOVERNANCE COSTS 2023 2022 Accountancy 1680 1680 Bookkeeping 5399 5144 Legal and Professional Fees 2724 7018 _ £10003 £13842 __ |
CAFE COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Wages 38572 24756 Purchases & Cleaning 21987 9910 _ £60559 £34666 _ OPERATING COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Advertising & Marketing 1576 1531 Repairs and Refurbishment 31606 25201 Cleaning Materials & Wages 27735 20741 Salary (Assistant Manager) 25678 24445 Salary (Manager) 31891 27509 Staff Pension 2400 1574 Licences 2978 1808 Light and Heat 12452 12176 Insurance 5010 5536 Water 2621 1465 Telephone 2036 2514 Postage and Stationery 1325 1468 Photocopying 2125 2566 Miscellaneous (canteen, volunteers’ lunches etc) 2609 5483 Rent 5250 2175 Loss on Exchange (197) 42 Depreciation 7962 6714 Health & Safety 1958 807 Computer Expenses 1166 3235 _ £168181 £146990 GOVERNANCE COSTS 2023 2022 Accountancy 1680 1680 Bookkeeping 5399 5144 Legal and Professional Fees 2724 7018 _ £10003 £13842 __ |
CAFE COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Wages 38572 24756 Purchases & Cleaning 21987 9910 _ £60559 £34666 _ OPERATING COSTS Unrestricted Unrestricted Funds Funds 2023 2022 Advertising & Marketing 1576 1531 Repairs and Refurbishment 31606 25201 Cleaning Materials & Wages 27735 20741 Salary (Assistant Manager) 25678 24445 Salary (Manager) 31891 27509 Staff Pension 2400 1574 Licences 2978 1808 Light and Heat 12452 12176 Insurance 5010 5536 Water 2621 1465 Telephone 2036 2514 Postage and Stationery 1325 1468 Photocopying 2125 2566 Miscellaneous (canteen, volunteers’ lunches etc) 2609 5483 Rent 5250 2175 Loss on Exchange (197) 42 Depreciation 7962 6714 Health & Safety 1958 807 Computer Expenses 1166 3235 _ £168181 £146990 GOVERNANCE COSTS 2023 2022 Accountancy 1680 1680 Bookkeeping 5399 5144 Legal and Professional Fees 2724 7018 _ £10003 £13842 __ |
|---|---|---|---|---|
| 2022 1680 5144 7018 _ £13842 ___ |
_ | 2022 | ||
| 1680 5144 7018 ____ |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
| 8 9 |
DEBTORS 2023 Hiring of Hall 956 Prepayments 9844 _ £10800 CREDITORS- Amounts falling due within one year 2023 Room Hire in Advance 1810 Accruals 8152 Other Creditors 14124 __ £24086 _____ |
2022 2344 2527 _ £4871 2022 1653 3316 12422 __ £17391 ______ |
2022 2344 2527 _ £4871 ___ |
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10 FIXED ASSETS
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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 9 July 2021 the hall is let to Fearon Community Association Ltd for 25 years at the following rent: -
Year 1: £3,000 Year 2: £6,000 Year 3: £9,000
From Year 4 onwards the rent is increased in line with the Retail Price Index.
Any property refurbishments are written off in full in the year.
| b) | Tangible Fixed Assets Cost at 1 April 2022 Additions in Year Disposals in Year At 31 March 2023 Depreciation At 1 April 2022 Charge for the Year At 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022 |
Fixtures Fittings & Equipment Total 23278 23278 45547 45547 -- - _ £68825 £68825 _ 18391 18391 7962 7962 £26353 £26353 _ £42472 £42472 _ £4887 £4887 |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
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. of staff earning over £60000 per annum STATEMENT OF FUNDS At 31 March 2022 B/Fwd Unrestricted Funds £61000 _____ |
Income 286940 ______ |
Expenditure 269273 _ |
2023 112653 2400 _ £115053 7 __ - _ Transfers - _____ |
2022 88259 1574 _ £89833 7 __ - _ At 31 March 2023 C/Fwd 78667 ____ |
|---|---|---|---|---|---|
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 638 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
Deficit Contributions
From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)
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 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. 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 2019 to 30 September 2025: £12,243,000 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 2023 | 31 March 2022 | 31 March 2021 | |
|---|---|---|---|---|
| (£s) | (£s) | (£s) | ||
| Present value of provision | 2,603 | 4,082 | 16,669 |
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| Period Ending | Period Ending | |
|---|---|---|
| 31 March 2023 | 31 March 2022 | |
| (£s) | (£s) | |
| Provision at start of period | 4,082 | 16,669 |
| Unwinding of the discount factor (interest expense) | 78 | 96 |
| Deficit contribution paid | (1,487) | (4,218) |
| Remeasurements - impact of any change in assumptions | (70) | (94) |
| Remeasurements - amendments to the contribution schedule | - | (8,371) |
| Provision at end of period | 2,603 | 4,082 |
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FEARON COMMUNITY ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS – FOR THE YEAR ENDED 31 MARCH 2023
INCOME AND EXPENDITURE IMPACT
| Period Ending | Period Ending | |
|---|---|---|
| 31 March 2023 | 31 March 2022 | |
| (£s) | (£s) | |
| Interest expense | 78 | 96 |
| Remeasurements – impact of any change in assumptions | (70) | (94) |
| Remeasurements – amendments to the contribution schedule | - | (8,371) |
| Contributions paid in respect of future service* | * | * |
| Costs recognised n income and expenditure account | * | * |
*includes defined contribution schemes and future service contributions (ie excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
ASSUMPTIONS
| 31 March 2023 | 31 March 2022 | 31 March 2021 | |
|---|---|---|---|
| % per annum | % per annum | % per annum | |
| Rate of discount | 5.52 | 2.35 | 0.66 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details and deficit contributions agreed between the company and the scheme at each year end period:
| Year | ending | 31 | March 2023 | 31 March 2022 | 31 March 2021 |
|---|---|---|---|---|---|
| Year | 1 | 1,487 | 1,487 | 4,218 | |
| Year | 2 | 1,239 | 1,487 | 4,345 | |
| Year | 3 | - | 1,239 | 4,475 | |
| Year | 4 | 3,841 | |||
| Year | 5 | ||||
| Year | 6 |
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account ie the unwinding of the discount rate as a finance cost in the period in which it arises.
Our Ref: DRG/LFEA 001
PRIVATE & CONFIDENTIAL
Mrs M Bezzano-Griffiths Fearon Community Association Limited Rectory Road Loughborough Leics LE11 1PL
7 June 2022
Dear Meg
ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
I have pleasure in enclosing: -
a) your bound copy
b) the Registrar’s copy.
I have emailed you an electronic copy of the accounts and I will file this online with the Charity Commission.
We do not need to file the 2022 or 2023 accounts with HMRC.
Finally, I enclose a note of our fees for your kind attention in due course.
Yours sincerely
D R Gradon MA FCA For Cound & Co LLP
Our ref: DRG/LFEA 001 Your ref: 6852232
Companies House Crown Way Maindy Cardiff CF14 3UZ
Dear Sir
FEARON COMMUNITY ASSOCIATION LIMITED
We enclose the accounts in respect of the above for the year ended 31 March 201*.
Yours sincerely
D R Gradon For Cound & Co LLP