2021-09-30-accounts - North Hykeham Day Centre Ltd

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North Hykeham Day Centre Ltd

Charity No. 1140106

Company No. 07416378

Trustees' Report and Unaudited Accounts

30 September 2021

North Hykeham Day Centre Ltd Contents

	Pages
Trustees' Annual Report	2 to 4
Independent Examiner's Report		5
Statement of Financial Activities		6
Summary Income and Expenditure Account		7
Balance Sheet		8
Statement of Cash flows		9
Notes to the Accounts	10 to	16
Detailed Statement of Financial Activities	17 to	18

Page 1

North Hykeham Day Centre Ltd Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the period ended 30 September 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 07416378

Charity No. 1140106

Principal Office

10-11 Tombland

Norwich NR3 1HF

Registered Office

1 Hammond Place

Lyng Norwich NR9 5RQ

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

C.J. Bainbridge

S. Bunn
S. Woodcock

Accountants

Mason Williams Limited

1 Hammond Place

Lyng Norwich NR9 5RQ

OBJECTIVES AND ACTIVITIES

The object of the charity shall be to promote the welfare of the aged in any manner which now is or hereafter may be deemed by law to be charitable within the parishes of North and South Hykeham.

In furtherance of the objectives of the charity and without prejudice to the generality thereof the charity may obtain, collect and receive monies and funds by means of contributions, subscriptions, deeds of covenant, legacies, grants or other lawful method, and to accept and receive gifts of property of any description.

Page 2

North Hykeham Day Centre Ltd Trustees Annual Report

The income and property of the charity whencesoever derived shall be applied solely towards the promotion of the objects of the charity as set forth above, and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus, or otherwise howsoever by way of profit to any member of the charity. Provided that nothing herein shall prevent payment in good faith of reasonable and proper remuneration to any officer or servant of the charity or the repayment of out of pocket expenses. The charity may appoint a custodian trustee or a trust corporation for not less than three persons to hold any property held by or in trust for the charity or may with the agreement of the Official Custodian for Charities transfer to him personal property (within the meaning of section 16(2) of the Charities Act 1960) so held and make application for an order vesting in him any other property so held.

FINANCIAL REVIEW

The arrival of COVID at the beginning of this reporting period also coincided with reductions in funding available from Lincolnshire County Council for the services provided by the charity. The centre remained closed for the whole of this period and the Trustees concluded the charity could not continue it's main function of providing a day centre and that the lease on the premises should be sold in order to replenish the reserves of the charity. The sale of the lease was concluded in July 2021 and the staff were subsequently made redundant. The sale of the lease has replensihed the reserves of the charity. At the date of signing the Trustees are still considering how the reserves of the charity may be employed in furtherance of the object of the charity to promote the welfare of the aged in any manner which now is or hereafter may be deemed by law to be charitable within the parishes of North and South Hykeham.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 3

North Hykeham Day Centre Ltd Trustees Annual Report

The individual voluntary organisations and Statutory Authorities involved in the original setting up of the charity shall be entitled to appoint one person to be a member of the charity and at any time by notice in writing to the charity to change the appointment. The charity shall have power by a Resolution passed at a properly convened meeting by a simple majority of those present and voting to add to the Schedule hereto the name of any other organisation or authority and for this purpose the total number of members of the charity may be increased. The charity shall have the power by a Resolution passed at a properly convened meeting by a simple majority of those present and voting to remove from the Schedule hereto the name of any organisation or authority and for this purpose the total numbers of members of the charity may be decreased. The charity shall have powers to co-opt persons having special knowledge or experience provided that the number of co-opted members and ex-officio members shall not exceed one third of the total membership of the charity. Members of the charity shall hold office from the conclusion of the Annual Meeting next following provided that members appointed between Annual meetings shall hold office until the conclusion of the Annual Meeting next following. All members shall be eligible for re-appointment or fresh co-option. The charity shall meet not less than four times a year. One of those meetings shall be the Annual Meeting which shall be held at such time (not being more than fifteen months after the holding of the preceding Annual Meeting) and place as the charity shall determine. The Chairman, or in his absence the Vice Chairman, or five members of the charity may call a special meeting of the charity. At the Annual Meeting the business shall include the election or appointment of honorary officers and independent examiners and the consideration of the annual report of the charity and the financial statements. A quorum at the meeting shall be one quarter. The Honorary Officers of the charity who may be persons who are not members of the charity at the time of their appointment, shall be a Chairman, a Vice Chairman, a Treasurer, and any such officers as the charity may from time to time determine. No officer may hold office for more than five consecutive years, but may be re-appointed after a break of at least one year. All honorary officers shall be ex-officio members of the charity. They shall be elected at the Annual Meeting and shall hold office from the conclusion of the Annual Meeting until the conclusion of the Annual Meeting next following. Casual vacancies may be filled by the charity until the next Annual Meeting. The charity may appoint a secretary and such other paid officers as they may from time to time decide or may arrange with any other organisation for the provision of secretarial services.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

S. Woodcock Trustee 26 August 2022

Page 4

North Hykeham Day Centre Ltd Independent Examiners Report

Independent Examiner's Report to the trustees of North Hykeham Day Centre Ltd

I report to the charity trustees on my examination of the financial statements of North Hykeham Day Centre Ltd for the period ended 30 September 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

accounting records were not kept in accordance with section 386 of the 2006 Act ; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the Charities SORP (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

John Mason CIMA Mason Williams Limited 1 Hammond Place Lyng Norwich

NR9 5RQ 26 August 2022

Page 5

North Hykeham Day Centre Ltd Statement of Financial Activities

for the period ended 30 September 2021

Unrestricted funds 2021 £ - 189,818	Total funds 2021 £ - 189,818	Total funds 2020 £ 4,020 57,149
189,818 18,713 96,309	189,818 18,713 96,309	61,169 43,785 44,865
115,022 -	115,022 -	88,650 -
74,796 -	74,796 -	(27,481) -
74,796	74,796	(27,481)
74,796 (19,392)	74,796 (19,392)	(27,481) 8,089
55,404	55,404	(19,392)

Page 6

North Hykeham Day Centre Ltd Summary Income and Expenditure Account

for the period ended 30 September 2021

Income Gross income for the period Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the period Net income/(expenditure) before tax for the period Net income /(expenditure )for the period	2021 £ 189,818 189,818 113,988 1,034 115,022 74,796 74,796	2020 £ 61,169
		61,169
		87,290 1,360
		88,650
		(27,481)
		(27,481)

Page 7

North Hykeham Day Centre Ltd Balance Sheet

at 30 September 2021

Company No. 07416378 Notes 2021 £ Fixed assets Tangible assets 10 3,394 3,394 Current assets Debtors 11 - Cash at bank and in hand 61,458 61,458 Creditors:Amount falling due within one year 12 (9,448) Net current assets/(liabilities) 52,010 Total assets less current liabilities 55,404 Net assets/(liabilities) excluding pension asset or liability 55,404 Total net assets/(liabilities) 55,404 The funds of the charity Restricted funds 13 Unrestricted funds 13 General funds 55,404 55,404 Reserves 13 Total funds 55,404	2020 £ 4,428
	4,428 1,120 525
	1,645 (25,465)
	(23,820) (19,392)
	(19,392)
	(19,392)
	(19,392)
	(19,392)
	(19,392)

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the period ended 30 September 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 26 August 2022

And signed on its behalf by:

S. Woodcock Trustee 26 August 2022

Page 8

North Hykeham Day Centre Ltd Statement of Cash flows for the period ended 30 September 2021

Cash flows from operating activities Net income/(expenditure) per Statement of Financial Activities Adjustments for: Depreciation of property, plant and equipment Decrease in trade and other receivables (Decrease)/Increase in trade and other payables Net cash provided by/(used in) operating activities Net cash from investing activities Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Components of cash and cash equivalents Cash and bank balances	2021 £ 74,796 1,034 1,120 (16,017) 60,933 - - 60,933 525 61,458 61,458 61,458	2020 £ (27,481) 1,360 4,878 18,238
		(3,005)
		-

		-

		(3,005)
		3,530
		525

		525

		525

Page 9

North Hykeham Day Centre Ltd Notes to the Accounts

for the period ended 30 September 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 10

North Hykeham Day Centre Ltd Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

useful life:
Computer Equipment	25% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	15% reducing balance

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 11

North Hykeham Day Centre Ltd Notes to the Accounts

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 12

North Hykeham Day Centre Ltd Notes to the Accounts

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments from: Donations and legacies Other trading activities Total Expenditure on: Charitable activities Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 4 Income from donations and legacies Donations and Legacies	Unrestricted funds 2020 £ 4,020 57,149 61,169 43,785 44,865 88,650 (27,481) (27,481) (27,481) 8,089 (19,392) Total 2021 £ - -	Total funds 2020 £ 4,020 57,149
		61,169 43,785 44,865
		88,650
		(27,481)
		(27,481)
		(27,481) 8,089
		(19,392)
		Total 2020 £ 4,020
		4,020

Page 13

North Hykeham Day Centre Ltd Notes to the Accounts

5 Income from other trading activities

Subscriptions Lincolnshire CC Contract COVID related government grants received Proceeds from sale of lease 6 Expenditure on charitable activities Expenditure on charitable activities Daycare Centre Governance costs 7 Other expenditure Redundancy costs Employee costs Amortisation, depreciation, impairment, profit/loss on disposal of fixed assets 8 Net income/(expenditure) before transfers This is stated after charging: Depreciation of owned fixed assets	Unrestricted £ - 930 81,982 106,906 189,818 Unrestricted £ 18,713 18,713 Unrestricted £ 23,463 71,812 1,034 96,309 2021 £ 1,034	Total 2021 £ - 930 81,982 106,906 189,818 Total 2021 £ 18,713 18,713 Total 2021 £ 23,463 71,812 1,034 96,309	Total 2020 £ 29,979 27,170 - -
			57,149
			Total 2020 £ 43,785
			43,785
			Total 2020 £ - 43,505 1,360
			44,865
			2020 £ 1,360

Page 14

North Hykeham Day Centre Ltd Notes to the Accounts

9	Staff costs
				2021		2020
	Salaries and wages			71,812		43,505
	Pension costs			962		605
				72,774		44,110
	No employee received emoluments in excess of £60,000.
	The average monthly number of full time equivalent employees			during the year	was as follows:
				2021		2020
				Number		Number
	Administration			1		1
	Support			2		2
				3		3
10	Tangible fixed assets
		Computer Equipment		Motor Vehicles	Fixtures & Fittings	Total
			£	£	£	£
	Cost or revaluation
	At 1 April 2020	923		8,500	2,698	12,121
	At 30 September 2021	923		8,500	2,698	12,121
	Depreciation and
	impairment
	At 1 April 2020	820		4,914	1,959	7,693
	Depreciation charge for the	26		897	111	1,034
	year
	At 30 September 2021	846		5,811	2,070	8,727
	Net book values
	At 30 September 2021	77		2,689	628	3,394
	At 31 March 2020	103		3,586	739	4,428
11	Debtors
				2021		2020
				£		£
	Prepayments and accrued income			-		1,120
				-		1,120
12	Creditors:
	amounts falling due within one year
				2021		2020
				£		£
	Other taxes and social security			6,777		2,036
	Other creditors			1,223		5,267
	Accruals			1,448		18,162
				9,448		25,465

Page 15

North Hykeham Day Centre Ltd Notes to the Accounts

13 Movement in funds

Incoming resources (including other gains/losses ) £ 189,818 189,818 At 1 April 2020 £	Resources expended £ (115,022) (115,022) Unrestricted funds £ 3,394 52,010 55,404 Cash flows £	At 30 September 2021 £ 55,404
		55,404
		Total £ 3,394 52,010
		55,404
		At 30 September 2021 £
525	60,933	61,458
525 525	60,933 60,933	61,458
		61,458

16 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 16

North Hykeham Day Centre Ltd Detailed Statement of Financial Activities

for the period ended 30 September 2021

Income and endowments from: Donations and legacies Donations and Legacies Other trading activities Subscriptions Lincolnshire CC Contract COVID related government grants received Proceeds from sale of lease Total income and endowments Expenditure on: Charitable activities Daycare Centre Total of expenditure on charitable activities Other expenditure Redundancy costs Employee costs Salaries/wages General administrative costs, including depreciation and amortisation Depreciation of Computer Equipment Depreciation of Motor Vehicles Depreciation of Fixtures & Fittings Total of expenditure of other costs Total expenditure Net gains on investments Net income/(expenditure)	Unrestricted funds 2021 £ - - - 930 81,982 106,906 189,818 189,818 18,713 18,713 18,713 23,463 23,463 71,812 71,812 26 897 111 1,034 96,309 115,022 - 74,796	Total funds 2021 £ - - - 930 81,982 106,906 189,818 189,818 18,713 18,713 18,713 23,463 23,463 71,812 71,812 26 897 111 1,034 96,309 115,022 - 74,796	Total funds 2020 £ 4,020
			4,020
			29,979 27,170 - -
			57,149
			61,169 43,785
			43,785
			43,785 -
			-
			43,505
			43,505
			35 1,195 130
			1,360
			44,865
			88,650 -
			(27,481)

Page 17

North Hykeham Day Centre Ltd Detailed Statement of Financial Activities

North Hykeham Day Centre Ltd Detailed Statement of Financial Activities
Net income/(expenditure) before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	74,796 - 74,796 (19,392) 55,404	74,796 - 74,796 (19,392) 55,404	(27,481) -
			(27,481)
			8,089
			(19,392)

Page 18