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2021-03-31-accounts

Registered company number - 05708825

NEWINGTON COMMUNITY ASSOCIATION LIMITED (A COMPANY LIMTED BY GUARANTEE)

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NEWINGTON COMMUNITY ASSOCIATION LIMITED

CONTENTS

Pages
Trustees' Annual Report 1 - 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9 - 15

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 1

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also Directors for the purposes of company law, have pleasure in presenting their report and the unaudited financial statements of the Charity for the year ended 31 March 2021, which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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).

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Registration Number Company Registration Number 1141388 05708825 Registered Office Newington Community Centre Princess Margaret Avenue Ramsgate Kent CT12 6HX

Trustees/Directors P Moore (Resigned 11.12.20) R R Nicholson S H Voak N E Marshall (Appointed 11.12.20) Company Secretary P Moore (Appointed 14.2.20, resigned 11.12.20) N E Marshall (Appointed 11.12.20) Bankers HSBC Bank Plc 1 High Street Ramsgate Kent CT11 9AD

Independent Examiner Mr S J Wren FCCA Accountancy Matters (Kent) Limited 31 Queen Street Ramsgate Kent CT11 9DZ

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 2

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 14th February 2006 and registered as a charity on 1st April 2011. The company was established under a Memorandum and Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of trustees

The directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association the number of Trustees must be not less than three. All Trustees retire at each Annual General Meeting but they can be re-elected. The charity welcomes contact from individuals who are interested in joining the Trustee Board.

All Trustees give their time voluntarily and received no benefits from the charity. Any expenses reclaimed from the charity are set out in the notes to the accounts.

New Trustees are provided with an induction into the charity’s work and the duties and responsibilities of the Trustee Board.

Organisational structure

The Trustee Board oversees the running of the charity. There was an employed cleaner for part of the financial year. A partner organisation, Newington Big Local (whose legal entity is Starlings Support CIC), assists in the day to day running of the centre in agreement with the charity. Newington Big Local provides paid and volunteer support for the charity.

Related parties

The charity has an arrangement with Newington Big Local (Starlings Support CIC) to assist with the day to day running of the centre. Newington Big Local has also provided grant funding for the charity for new equipment and associated running costs.

Risk management

The Trustees conduct regular reviews of the major risks to which the charity is exposed. Where appropriate, systems or procedures are established to mitigate the risks the charity faces. This year, these have included:

Purposes and activities

The charity’s purpose is to manage and maintain Newington Community Centre, to provide facilities in the interest of social welfare for recreation and leisure time pursuits for the benefit of the inhabitants of Newington Ward, Ramsgate, Kent.

The charity took over the running of the community centre from Thanet District Council in July 2007. The centre is available for public hire and hosts a wide range of activities and projects.

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 3

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

How our activities deliver public benefit

The Trustees confirm they have had due regard to the Charity Commission’s public benefit guidance and are confident the objectives and activities undertaken provide significant benefit to the public and are in accordance with its charitable objects, as described in the following sections of the annual report.

Achievements and performance

During this year Newington Community Association has worked in partnership with Newington Big Local to manage the Community Centre, and has worked in partnership with statutory, private and civil society organisations to provide social, leisure and educational activities to ensure that residents can access advice, information and support that meets their needs.

The Centre has also continued to host two resident-led community projects, Newington Big Local and Creative Newington.

The community space is usually hired for group activities and clubs as well as private and community functions, but this year, due to the Covid-19 pandemic, the hall has been unavailable for public hire. Instead, the hall has been used as a food storage and distribution hub for Newington's Food Club. The Food Club, operated by Newington Big Local, supports more than 1,600 households, providing low-cost and free food, and also provides packed lunches, hot meals for children and family meal kits during school holidays. Food distribution sessions have taken place twice weekly throughout the year.

The charity was also able to support children and families with the provision of creative packs, distributed via the Food Club. This was thanks to a grant from Tesco Bags of Help.

The charity was able to access emergency government funding to cover running costs and to furlough staff where necessary.

FINANCIAL REVIEW

Financial position

The financial overview for the year to 31 March 2021 is as follows:

Income: £29,045

Expenditure: £13,050

Net income: £15,995 (comprising unrestricted £14,829 and restricted £1,166)

Balance brought forward: £12,002

Balance carried forward: £27,997

The charity made an unrestricted (general) surplus of £14,829. This surplus was possible because the charity received additional funding arising from the Covid-19 pandemic, mainly from government, which enabled costs to be covered and reserves to be re-built.

During the financial year, an investigation took place regarding suspected fraud by a former Trustee, Michael Harrison. On 9th June 2021, Michael Harrison was convicted of Fraud by false representation at Canterbury Crown Court. A Compensation Order was awarded to the charity in the sum of £24,957.62 in respect of the fraudulently obtained funds, to be paid by the offender to the charity via the court. These funds are expected to be received during the financial year 2021/22 and 2022/23.

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 4

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Fundraising

In the year to 31st March 2021, the majority of the charity’s income was secured from grant funding, with a small amount of donated and fundraised income, and room hire from project work funded through Newington Big Local. The unrestricted grants received were:

Thanet District Council (central government grants):

Retail, Hospitality and Leisure Grant £10,000 (first lockdown)

Local Restrictions Support grants £11,051 (second and third lockdowns and tier restrictions)

HMRC furlough grants (Coronavirus Job Retention Scheme) £833

Ramsgate Town Council £500

The charity also received two restricted grants, both from the Tesco Bags of Help fund, totalling £1,666. Of this, £1,166 remains unspent at 31st March 2021 and was provided for equipment.

The charity's income is usually generated from the hire of its premises for local residents and groups. The Trustees intend that the running of the Centre will be self-sufficient, with running costs met from selfgenerated hire income.

Investment policy

The Trustees operate a policy of holding any reserves held in an interest-bearing savings account.

Reserves Policy and going concern

The reserves of the charity are intended to cover fluctuations in income, unforeseen expenditure, the renewal of fixed assets and for expenditure on areas of the premises for which the charity has responsibility.

A designated fund has been created by the Trustees within the unrestricted funds, representing the net book value of the charity's fixed assets at the balance sheet date. This has been created because the assets cannot be utilised for future expenditure.

At 31st March 2021, the charity's funds were as follows:

Unrestricted general fund: £19,417 (£805 at 31st March 2020)

Designated fixed asset fund: £7,414 (£11,197 at 31st March 2020)

Restricted funds (Tesco grant): £1,166 (£0 at 31st March 2020)

It is the policy of the Trustees to hold reserves to equal 3-6 month’s running costs, plus a fund for premises repairs and renewals. Reserves held in excess of this amount will cover the loss of income from hire as the impact of the Covid-19 pandemic continues.

The charity is considered to be a going concern. The running costs of the Association are met from hire income in normal operating circumstances, and grant funding is held in reserve to cover any losses of income arising in the future from the continued Covid-19 pandemic.

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 5

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

PLANS FOR FUTURE PERIODS

The charity’s long term aim is to take over the ownership of the building via a Community Asset Transfer. In order to achieve this, a feasibility study is being developed and a programme undertaken to strengthen the governance and management of the charity. This process has been delayed due to the Covid-19 national restrictions but it is hoped the Community Asset Transfer will continue during the financial year 2021-22.

Signed on behalf of the Board of Trustees by :

R R Nicholson - Chair

Date : 15 October 2021

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

Page 6

NEWINGTON COMMUNITY ASSOCIATION LIMITED

I report to the Charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 7 to 15.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the 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 accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

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.

S J Wren FCCA Accountancy Matters (Kent) Limited Chartered Certified Accountants 31 Queen Street Ramsgate Kent CT11 9DZ

Date : 2 November 2021

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 7

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Notes
Unrestricted
funds
£
INCOME
Donations and grants
2
22,646
Charitable activities
3
2,847
Other trading activities
4
1,886
Investment income
5
-
Other income
-
TOTAL INCOME
27,379
EXPENDITURE
Cost of raising funds
-
Charitable activities
12,550
Other
-
TOTAL EXPENDITURE
6
12,550
NET (EXPENDITURE)/INCOME FOR THE YEAR
BEFORE TRANSFERS
7
14,829
Transfers between funds
-
NET MOVEMENT IN FUNDS FOR THE YEAR
14,829
Balance as at 1 April 2020
12,002
BALANCE AT 31 MARCH 2021
26,831		 Restricted
funds
£
1,666
-
-
-
1,666
-
500
-
500
1,166
-
1,166
1,166		 Total
Total
funds
funds
2021
2020
£
£
24,312
11,017
2,847
16,935
1,886
312
-
-
-
142
29,045
28,406
-
-
13,050
16,636
-
4,511
13,050
21,147
15,995
7,259
-
-
15,995
7,259
12,002
4,743
27,997
12,002

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 8

BALANCE SHEET AS AT 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors and prepayments
10
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
11
NET ASSETS
12
Represented by:
FUNDS OF THE CHARITY
Unrestricted general fund
13
Designated funds
13
Restricted funds
13
TOTAL FUNDS		 701
23,651
24,352
3,769		 2021
£
7,414
632
2,607
3,239
2,434
20,583
27,997
19,417
7,414
1,166
27,997		 2020
£
11,197
805
12,002
805
11,197
-
12,002

For the financial year ended 31 March 2021 the company was entitled to exemption from audit under s.477 Companies Act 2006 and no members have deposited a notice under s.476 requiring an audit.

The Directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with s.386 of the Act for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and in accordance with the Charities SORP FRS 102.

Approved and signed for issue by the Trustees on 15 October 2021.

R R Nicholson- Chair S Voak - Trustee

Company registration number - 05708825

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 9

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

a) Basis of accounting

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 (FRS102) (effective 1 January 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

Newington Community Association Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Grants receivable - grants made to finance the activities of the Charity are credited to the statement of financial activities (SOFA) accounting in the period to which they relate.

Bank interest - bank interest is included in the income and expenditure account on receipt.

Other income - other income, including donations and gifts are included as they were received.

Deferred income - income received before the balance sheet date for room hire after the balance sheet date will be reflected within deferred income on the balance sheet.

All expenditure is accounted for on an accruals basis and includes VAT where applicable. Expenditure has been included under expense categories that aggregate all costs for allocation to activities.

Tangible fixed assets costing more than £200 are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows :

Van 20% straight line Office equipment 20% straight line Fixtures and fittings 20% straight line

Unrestricted funds are grants, donations and other incoming resources receivable by the Charity without further specified purpose and are available as general funds.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial statements.

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

g) Operating leases

h) Significant judgements and estimates

No significant judgements or estimates have had to be made by the Trustees in preparing these financial statements.

Unrestricted
funds
£
2
DONATIONS AND GRANTS
Donations
262
Grants :
Tesco Bags of Help
-
HMRC Job Retention Scheme
833
Thanet District Council
21,051
Newington Big Local
-
Ramsgate Town Council
500
22,646
3
INCOME FROM CHARITABLE ACTIVITIES
Room hire
2,847
Services
-
2,847
4
OTHER TRADING ACTIVITIES
Fundraising income
1,886
Rental income
-
1,886		 Restricted
funds
£
-
1,666
-
-
-
-
1,666
-
-
-
-
-
-		 2021
Total
funds
£
262
1,666
833
21,051
-
500
24,312
2,847
-
2,847
1,886
-
1,886		 2020
Total
funds
£
-
-
-
-
11,017
-
11,017
16,278
657
16,935
312
-
312

5 INVESTMENT INCOME

Bank interest receivable - - - -

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 11

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6
EXPENDITURE
Unrestricted
funds
£
Cost of raising funds
Fundraising costs
-
Publicity
-
-
Charitable activities costs
Activity costs
-
Wages and salaries
1,551
Maintenance of Community Centre
66
Cleaning and waste
1,032
Rates and water
1,189
Light and heat
2,302
Printing, Postage and stationery
-
Telephone
620
Insurance
713
Sundries
56
Depreciation
3,783
Loss/(Profit) on disposal of fixed assets
-
Support costs
Bookkeeping and payroll costs
655
Governance costs
AGM meeting expenses
-
Companies House fee
13
Independent Examiner's fee
570
12,550
Other
Fraudulent payments (see Note 17)
-
Unexplained payments
-
-
Total expenditure
12,550
7
NET INCOME
This is stated after charging:
Depreciation
Independent Examiner's remuneration:		 Restricted
funds
£
-
-
500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500
-
-
-
500		 2021
Total
funds
£
-
-
-
500
1,551
66
1,032
1,189
2,302
-
620
713
56
3,783
-
655
-
13
570
13,050
-
-
-
13,050
2021
£
3,783
570		 2020
Total
funds
£
-
-
-
-
2,468
306
1,219
1,676
3,459
135
457
679
641
4,581
-
432
-
13
570
16,636
4,200
311
4,511
21,147
2020
£
4,581
570

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 12

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8
INFORMATION REGARDING EMPLOYEES
Wages and salaries
Social security costs
Employer pension contributions
Employment Allowance
The average monthly head count was 1 staff (2020 - 1 staff).
The average number of employees based on full time equivalents was:
Direct charitable activities		 2021
£
1,551
-
-
-
1,551
2021
Number
1		 2020
£
2,468
-
-
-
2,468
2020
Number
1

No employee received remuneration of more than £60,000 during the year (2020 - £Nil).

No Trustees received remuneration or were reimbursed expenses during the year (2020 - £Nil).

The total employee benefits (including employers national insurance) of the key management personnel of the Charity were £Nil (2020 - £Nil).

9 FIXED ASSETS

FIXED ASSETS
Cost
As at 1 April 2020
Additions
Disposals
As at 31 March 2021
Depreciation
As at 1 April 2020
Charge for the year
Disposals
As at 31 March 2021
Net book value
As at 31 March 2021
As at 31 March 2020		 Van
£
3,899
-
-
3,899
3,119
780
-
3,899
-
780		 Office
£
6,971
-
-
6,971
1,815
1,404
-
3,219
3,752
5,156
Equipment		 Fixtures &
Fittings
£
11,987
-
-
11,987
6,726
1,599
-
8,325
3,662
5,261		 Total
£
22,857
-
-
22,857
11,660
3,783
-
15,443
7,414
11,197

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 13

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10 DEBTORS
Trade debtors
Prepayments
Accrued income
11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income
12 ANALYSIS OF NET ASSETS BETWEEN FUND
General
Designated
funds
funds
£
£
Fixed assets
-
7,414
Current assets
23,186
-
Current liabilities
(3,769)
-
Net assets as at 31 March 2021
19,417
7,414
ANALYSIS OF NET ASSETS BETWEEN FUND - PREVIOUS YEAR
General
Designated
funds
funds
£
£
Fixed assets
-
11,197
Current assets
3,239
-
Current liabilities
(2,434)
-
Net assets as at 31 March 2020
805
11,197		 2021
£
-
701
-
701
2021
£
631
-
1,586
879
673
3,769
Restricted
funds
£
-
1,166
-
1,166
Restricted
funds
£
-
-
-
-		 2020
£
142
490
-
632
2020
£
877
-
297
760
500
2,434
Total
£
7,414
24,352
(3,769)
27,997
Total
£
11,197
3,239
(2,434)
12,002

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 14

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13 MOVEMENT IN FUNDS
Restricted funds
Tesco Bags of Help
Total Restricted funds
Designated funds
Fixed asset fund
Total Designated funds
Unrestricted general funds
Total funds		 As at
1 04 2020
£
-
-
11,197
11,197
805
12,002		 Income Expenditure
£
£
1,666
(500)
1,666
(500)
-
-
-
-
27,379
(12,550)
29,045
(13,050)		 As at
Transfers
31 03 2021
£
£
-
1,166
-
1,166
(3,783)
7,414
(3,783)
7,414
3,783
19,417
-
27,997

Restricted funds :

Tesco Bags of Help

The charity received two grants from Tesco Bags of Help. A £500 grant from the Covid-19 Communities Fund provided creative packs for children and families during lockdown. A grant of £1,166 for equipment renewal for the community will be spent during the financial year 2021/22.

Designated funds :

Fixed asset fund

A fund created by the Trustees and represents the net book value of the charity's fixed assets at the balance sheet date. The fund was created due to the increase in fixed assets and although they are within general funds the value of the assets cannot be utilised for future expenditure.

MOVEMENT IN FUNDS - PREVIOUS YEAR

Restricted funds
Total Restricted funds
Designated funds
Fixed asset fund
Total Designated funds
Unrestricted general funds
Total funds		 As at
1 04 2019
£
-
-
-
-
4,743
4,743		 Income Expenditure
£
£
-
-
-
-
-
-
-
-
28,406
(21,147)
28,406
(21,147)		 As at
Transfers
31 03 2020
£
£
-
-
-
-
11,197
11,197
11,197
11,197
(11,197)
805
-
12,002

Designated funds :

Fixed asset fund

A fund created by the Trustees and represents the net book value of the charity's fixed assets at the balance sheet date. The fund was created due to the increase in fixed assets and although they are within general funds the value of the assets cannot be utilised for future expenditure.

NEWINGTON COMMUNITY ASSOCIATION LIMITED

Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14 FINANCIAL COMMITMENTS

The charity has a lease with the local council in respect of the Community Centre. The lease is for 21 years as from 16 July 2007 and although the lease mentions a market value rent becoming payable the council have never charged the charity any rent.

15 MEMBERS LIABILITY

The company is a company limited by guarantee. Every member of the Charity undertakes to contribute such amount as may be required, not exceeding £1, to the Charity's assets if it should be wound up while they are a member or within one year after they ceased to be a member, for the costs of winding up and for the adjustment of the rights of persons who have contributed to the Charity's assets.

16 CORPORATION TAXATION

The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

17 RELATED PARTY TRANSACTIONS

During the financial year, an investigation took place regarding suspected fraud by a former Trustee, Michael Harrison. On 9th June 2021, Michael Harrison was convicted of Fraud by false representation at Canterbury Crown Court. A Compensation Order was awarded to the charity in the sum of £24,957.62 in respect of the fraudulently obtained funds, to be paid by the offender to the charity via the court. These funds are expected to be received during the financial year 2021/22 and 2022/23 but are not shown on the balance sheet because the award was made after 31st March 2021, and the award is subject to payment by the offender.

There were no other transactions with related parties during the year under review or the preceding year.