PRIDE OF SEFTON
Report and Financial Statements
Year ended 31 March 2022
Company Number: 07020791 Charity Number: 1144393
Pride of Sefton
Report and Financial Statements for the year ended 31 March 2022
Contents
| Page(s): | |
|---|---|
| 3 | Directors, Trustees and Advisors |
| 4 | Chair's Statement |
| 5 - 7 | Report of the Trustees |
| 8 | Trustees Responsibilities in Relation to the Financial Statements |
| 9 - 11 | Independent Auditor's Report |
| 12 | Statement of Financial Activities |
| 13 | Statement of Financial Position |
| 14 | Statement of Cash Flows |
| 15 - 24 | Notes Forming Part of the Financial Statements |
Pride of Sefton
Directors, Trustees and Advisors for the year ended 31 March 2022
Directors and trustees
The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees serving during the year and since the year end were as follows.
Name
| James Brett | Non-executive - Chair | |
|---|---|---|
| Frank Moran | Non-executive | (resigned 8 September 2021) |
| William McGarry | Non-executive | |
| Chris Walker | Non-executive | |
| Keith Lloyd | Non-executive | (resigned 4 May 2022) |
| Ann Mardell | Non-executive | (resigned 16 November 2021) |
| Tracey Liggett | Executive | |
| Ian Fazakerley | Executive | |
| Registered number | ||
| Company number: | 07020791 | |
| Charity number: | 1144393 | |
| Company secretary and registered office | ||
| Marcus Evans | ||
| Pride of Sefton | ||
| The Sovini Group | ||
| Unit 1 | ||
| Heysham Road | ||
| Liverpool | ||
| L30 6UR | ||
| Auditor | ||
| BDO LLP | ||
| 5 Temple Square | ||
| Temple Street | ||
| Liverpool | ||
| L2 5RH | ||
| Principal solicitors | ||
| Weightmans LLP | ||
| 100 Old Hall St | ||
| Liverpool | ||
| L3 9QJ |
Bankers
Royal Bank Of Scotland Merseyside Cheshire & North Wales, Corporate Banking 1 Dale Street Liverpool L2 2PP
Page 3
Pride of Sefton
Chair's Statement
for the year ended 31 March 2022
The Pride of Sefton has been providing boat trips to underprivileged and disabled people as well as educational trips for the local community for over 35 years. These trips are financed through a combination of donations, grants and commercial trips, which are made available to the general public.
The trustees continue to review and consider the future activities of the charity. During the last two years the charity has submitted and been awarded a number of Heritage and National Lottery grants, which have enabled us to carry out essential repairs and maintenance on the Boat and make a number of improvements to our operational processes. These have been essential to the ongoing success and have helped us to improve the overall accessibility and availability of our boat trips. With the support of our extremely flexible and supportive volunteers, we have been able to expand our service offer and increased the volume of trips that we are able to provide. The charity take its responsibilities to its staff, volunteers and customers extremely seriously and continues to prioritise their safety and the quality of their overall boat trip experience.
We remain focussed on the achievement of our aims and objectives, appreciating the positive impact that our trips have on the mental and physical health and wellbeing of our customers. This inspires us to want to do more and reach new groups of society that would benefit from our unique experiences. We remain focussed on addressing these challenges, as we continue to improve and expand our service offer and service delivery methods.
We believe that we are in a strong position to continue to grow and demonstrate the social value outcomes that we create, both the charity and individually our customers. We believe that 2022 and beyond, will bring new and exciting opportunities for the charity which we intend to harness, whilst navigating the new operating environment in which we now work.
James Brett (chair of the trustees) 22 August 2022
Page 4
Report of the Trustees for the year ended 31 March 2022
Pride of Sefton
The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ending 31 March 2022, which are also prepared to meet the requirements for a trustees’ report and accounts for Companies Act 2006 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) (effective 1 January 2019).
Our purposes and activities
The objects of Pride of Sefton are to promote the education and recreation of persons living in the Borough of Sefton by providing a narrow boat or other suitable boat, such persons having need to those facilities by reason of youth, age, infirmity or disablement, poverty or social economic circumstances. In considering the objectives and activities, the trustees' have considered Charity Commission guidance on Public Benefit to ensure that the charity continues to meet it's Public Benefit requirements.
Governing documents
The Pride of Sefton is a registered charity (Charity Number 1144393) governed by its Memorandum and Articles of Association dated 22 July 2009 (amended on joining the Sovini group on 7 July 2016). It is registered with the Charity Commission and is also a Company Limited by Guarantee (Company Number 07020791). The charity is a subsidiary of Sovini Charities Limited, a charitable holding company. It is also a subsidiary of Sovini Limited which remains the ultimate parent undertaking.
Key achievements and performance
The main focus of the Pride of Sefton is the provision of boat trips to underprivileged and disabled people as well as educational trips for the local community of Sefton. Where feasible these trips are financed through a combination of donations and grants. The Pride of Sefton also raise money by hiring out the boat on a commercial basis to third parties, and this includes members of the general public.
During the current year the Pride of Sefton generated a surplus of £5,504 relating to unrestricted funds (2021: £3,704 deficit), £10,765 deficit relating to restricted funds (2021: £8,731 deficit), resulting in an overall deficit of £5,261 (2021: £12,436 deficit). This performance is reflective of the review of our operating activities and the utilisation of historic restricted grant funding.
Structure, governance and management
The Board of Trustees also forms the Executive Committee who are responsible for any appointments of staff who are responsible for the day-to-day running of the charity. Pride of Sefton is managed and governed by the trustees' who hold regular board meetings and agenda items include finance, health and safety and other operational reports.
Charity Governance Code
The Charity Governance Code is designed as a tool to support continuous improvement. The Board, having reviewed the Code's key principles, considers its governance structure and arrrangements to be appropriate for the nature of the charities operations, and as such has decided not to formally adopt the Code. The Board does however regularly revisit the Code's key principles to ensure that the highest standards of governance are maintained.
Financial review
Incoming resources for the year totalled £48,212 (2021: £52,213) of which £30,860 (2021: £39,754) related to funding activities upon which restrictions are placed. Expenditure totalled £53,473 (2021: £64,649), resulting in a deficit of £5,261 (2021: £12,436). At 31 March 2022, the trust's reserves stood at £77,839 (2021: £83,100) of which, fixed assets (boat) represented £61,407 (2021: £64,965).
Our pricing policy
Our pricing policy reflects our strategy of enabling all within our community, whatever their means, to take part in our activities. Concessionary tickets are available to eligible persons.
Investment powers and policy
The trustees, having regard to the liquidity requirements of operating the boat, have kept available funds in an interest-bearing deposit account and seek to achieve the best possible rate of interest on these deposits.
Page 5
Report of the Trustees for the year ended 31 March 2022 (continued)
Pride of Sefton
Reserves policy
The Trustees aim to maintain free reserves in unrestricted funds at a level which equates to at least three months of operational charitable expenditure: a target of approximately £6,347 based on budgeted expenditure for the next financial year (2022-23). The charity's free reserves currently exceed this, and the trustees have retained access to a £20,000 revolving credit facility should the need ever arise. The trustees consider that this level will provide sufficient funds for short-term solutions until the long-term ones are established in the events of:
-
unforeseen reduction in income to prevent any significant disruption to POS’s charitable activities;
-
• unforeseen day-to-day operational costs, e.g. break down of essential equipment or legal costs associated with defending the Charity’s interests; and
-
unplanned closure of the Charity to mitigate the negative impact on our beneficiaries and to meet legal liabilities (e.g. outstanding contractual obligations and statutory payments).
Future Prospects
During the coming years the charity plans to review and where possible expand its service offer to customers. The safety and health of our staff, volunteers and customers is paramount, and a particular focus will be on ensuring that our service offer considers and accommodates the needs of our broad and more vulnerable customers. We continue to scrutinise and reduce where possible our operating costs, so that we can reinvest these savings to extend our charitable work and the number of trips and educational experiences that we can fulfil. As well as maximising where possible, the availability of grant and other donations.
Financial instruments
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. The following financial institutions were used and the credit ratings were acceptable to the trustees'.
----- Start of picture text -----
||||||
|---|---|---|---|---|
|Rating at|Balance at|Rating at|Balance at|
|31 March 2022|31 March 2022|31 March 2021|31 March 2021|
|£|£|
|RBS|P-1/A-1/F1|19,791|P-1/A-1/F1|19,235|
|19,791|19,235|
----- End of picture text -----
Liquidity risk
Liquidity risk arises from the charity’s management of working capital and any finance charges and principal repayments on debt instruments. It is the risk that the charity will encounter difficulty in meeting it's financial obligations as they fall due.
Rolling cash flow projections are prepared regularly, together with the value of the charity’s cash investments. At the end of the financial year, these projections indicated that the company expected to have sufficient liquid resources to meet it's obligations under all reasonably expected circumstances.
Cash flow interest rate risk
The company is not currently exposed to cash flow interest rate risk from borrowings at variable rate.
Page 6
for the year ended 31 March 2022 (continued)
Pride of Sefton
Report of the Trustees
Risk and uncertainty
The main risks, to which the charity is exposed, as identified by the trustees, have been considered and systems have been established to mitigate those risks.
This strategy comprises:
-
an annual review of the principal risks and uncertainties that the charity face;
-
the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
-
the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
Going concern
During the exit from the Pandemic, the trustees reviewed the latest budget forecasts to ensure that we could continue to support our operations, including the ongoing application and use of grant assistance. This was in addition to the arrangement of a new £20,000 Revolving Credit Facility with Sovini Commercial Limited (another Sovini Group partner) which, remains undrawn.
In preparation for business as usual, essential repairs and maintenance has been completed on the boat, in preparedness for planned sailings during the year ahead. A marketing campaign is in place, to raise awareness of the positive benefits that our boat trips have on individuals mental and social wellbeing. We have also reviewed our pricing strategy, to offset the impact of rising costs and fuel increases and set realistic (but challenging) performance targets.
As such, we remain confident that the Pride of Sefton has adequate resources to continue in operational existence for the foreseeable future and has adopted the going concern basis in preparing these financial statements.
Auditors
All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The trustees are not aware of any relevant audit information of which, the auditors are unaware.
Approval
In preparing this report, the trustees' have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Signed on behalf of the trustees'.
James Brett (chair) 22 August 2022
Page 7
Pride of Sefton
Trustees Responsibilities in Relation to the Financial Statements for the year ended 31 March 2022
Trustees responsibilities
The trustees are responsible for preparing the the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that year.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees' are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 8
Pride of Sefton
Independent Auditor's Report for the year ended 31 March 2022
Independent Auditor’s Report to the members of Pride of Sefton
Opinion
In our opinion the financial statements:
-
give a true and fair view of the state of the Charitable Company’s affairs as at 31 March 2022 and of its incoming resources and application of resources for the year ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Pride of Sefton (“the Charitable Company”) for the year ended 31 March 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions related to going concern
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Chair’s statement and Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 9
Pride of Sefton
Independent Auditor's Report for the year ended 31 March 2022
Independent Auditor’s Report to the members of Pride of Sefton (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Report of the Trustees, which includes the Directors’ Report, prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Directors’ Report, which is included in the Report of the Trustees, has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the Charitable Company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Directors’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of Trustees
As explained more fully in the Trustees responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the Charitable Company and the sector in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to the reporting framework (Charities SORP (FRS 102), Charities Act 2011 and the Companies Act 2006) and the relevant tax compliance regulations, and we considered the extent to which non-compliance might have a direct impact and material effect on the Charitable Company’s Financial Statements or their continued operation.
Page 10
Pride of Sefton
Independent Auditor's Report
for the year ended 31 March 2022
Independent Auditor’s Report to the members of Pride of Sefton (continued)
Extent to which the audit was capable of detecting irregularities, including fraud (continued)
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
The audit procedures to address the risks identified included:
-
Agreement of the financial statement disclosures to underlying supporting documentation;
-
Challenging assumptions made by management in their significant accounting estimates and judgements in particular in relation to impairment of tangible and intangible assets and their useful economic lives;
-
Identifying and testing journal entries, in particular any unusual account postings, any journal entries posted with specific key words and any journals posted by directors;
-
Discussions with management and Directors, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Considered recognition of income throughout the year and around year end to gain assurance over cut-off and classification within the financial statements e.g., restricted v unrestricted.
-
Review of minutes of Board meetings throughout the period; and
-
• Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Hamid Ghafoor (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor
3 Hardman Street, Manchester, M3 3AT Date: 22 August 2022
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Page 11
Pride of Sefton
Statement of Financial Activities for the year ended 31 March 2022
----- Start of picture text -----
Note Unrestricted Restricted Total Funds Total Funds
Funds Funds
2022 2022 2022 2021
£ £ £ £
Income
Donations and legacies 4 4,750 - 4,750 8,585
Income from charitable activities 5
Boat hire 12,600 - 12,600 1,200
Grants received - 30,860 30,860 42,416
Investment income 6 2 - 2 12
Total income 17,352 30,860 48,212 52,213
Expenditure
Expenditure on charitable activities 7 11,848 41,625 53,473 64,649
Total expenditure 11,848 41,625 53,473 64,649
Net income/(expenditure) and net movement in funds for the year 5,504 (10,765) (5,261) (12,436)
Reconciliation of funds
Total funds brought forward 61,957 21,143 83,100 95,536
Current year 5,504 (10,765) (5,261) (12,436)
Total funds carried forward 67,461 10,378 77,839 83,100
----- End of picture text -----
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 15 to 24 form part of these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 August 2022.
James Brett (chair of trustees, on behalf of the trustees) 22 August 2022
Page 12
Pride of Sefton
Statement of Financial Position as at 31 March 2022
----- Start of picture text -----
Company number: 07020791
Note 2022 2021
£ £
Fixed assets
Tangible fixed assets 14 61,407 64,965
Intangible fixed assets 15 3,783 4,241
65,190 69,206
Current assets
Debtors 16 4,135 815
Cash at bank and in hand 19,791 19,235
23,926 20,050
Current liabilities
Creditors: amounts falling due within 1 year 17 11,277 6,156
Net current assets 12,649 13,894
Total assets less current liabilities 77,839 83,100
Net assets 77,839 83,100
The funds of the charity
Unrestricted funds 19 67,461 61,957
Restricted funds 19 10,378 21,143
Total funds 77,839 83,100
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The notes on pages 15 to 24 form part of these financial statements.
The accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 August 2022.
James Brett (chair of trustees, on behalf of the trustees)
22 August 2022
Page 13
Pride of Sefton
Statement of Cash Flows for the year ended 31 March 2022
----- Start of picture text -----
Note 2022 2021
£ £
Cash flows from operating activities
Net movement in funds (5,261) (12,436)
Add back depreciation/amortisation charge 10 5,345 5,209
Deduct interest income shown in investing activities 6 (2) (12)
(Increase)/decrease in debtors 16 (3,320) 795
Increase/(decrease) in creditors 17 5,121 (1,014)
Cash generated by/(used in) operating activities 1,883 (7,458)
Cash flows from investing activities
Interest income 6 2 12
Purchase of tangible assets 14 (1,329) -
Purchase of intangible assets 15 - (4,585)
Cash used by investing activities (1,327) (4,573)
Increase/(decrease) in cash and cash equivalents 556 (12,031)
Cash and cash equivalents at beginning of year 19,235 31,266
Cash and cash equivalents at end of year 19,791 19,235
----- End of picture text -----
The notes on pages 15 to 24 form part of these financial statements.
Page 14
Pride of Sefton
Notes Forming Part of the Financial Statements
for the year ended 31 March 2022
INDEX OF NOTES
General notes
| 1 | Legal status |
|---|---|
| 2 | Accounting policies |
| 3 | Judgements in applying accounting policies and key sources of estimation uncertainty |
| Statement | of Financial Activities related notes |
| 4 | Income from donations and legacies |
| 5 | Income from charitable activities |
| 6 | Investment income |
| 7 | Analysis of expenditure on charitable activities |
| 8 | Summary analysis of expenditure and related income for charitable activities |
| 9 | Analysis of governance and support costs |
| 10 | Net expenditure for the year |
| 11 | Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel |
| 12 | Staff numbers |
| 13 | Corporation taxation |
| Statement | of Financial Position related notes |
|---|---|
| 14 | Tangible fixed assets |
| 15 | Intangible fixed assets |
| 16 | Debtors |
| 17 | Creditors: amounts falling due within one year |
| 18 | Deferred income |
| 19 | Analysis of charitable funds |
| 20 | Analysis of net assets between funds |
| 21 | Controlling party and related party transactions |
Page 15
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
1 Legal status
Pride of Sefton is a registered charity in England, number 1144393 and a limited company by guarantee, number 07020791, the company was established on 16 September 2009.
2 Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Pride of Sefton meets the definition of a public benefit entity under FRS 102.
Going concern
During the exit from the Pandemic, the trustees reviewed the latest budget forecasts to ensure that we could continue to support our operations, including the ongoing application and use of grant assistance. This was in addition to the arrangement of a new £20,000 Revolving Credit Facility with Sovini Commercial Limited (another Sovini Group partner) which, remains undrawn.
In preparation for business as usual, essential repairs and maintenance has been completed on the boat, in preparedness for planned sailings during the year ahead. A marketing campaign is in place, to raise awareness of the positive benefits that our boat trips have on individuals mental and social wellbeing. We have also reviewed our pricing strategy, to offset the impact of rising costs and fuel increases and set realistic (but challenging) performance targets.
As such, we remain confident that the Pride of Sefton has adequate resources to continue in operational existence for the foreseeable future and has adopted the going concern basis in preparing these financial statements.
Income
Income is recognised when services have been rendered regardless of when cash is received, using the accruals method of accounting, deferring income relating to services not fulfilled in the period.
Voluntary income is recognised when receivable, as in the case of the third party donations, upon receipt by the charity. Investment income comprises bank interest received and is recognised when credited to the bank account.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Restricted funds are donations that the donor has specified are to be solely used for particular areas of the charity's work.
Page 16
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
2 Accounting policies (continued)
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs that support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the notes.
Tangible fixed assets
Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on basis as follows:
----- Start of picture text -----
|||
|---|---|
|Asset Category|Annual rate|
|Plant and equipment|10% straight line|
|Narrow boats|4% straight line|
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Intangible fixed assets
Costs directly attributable to the development of computer software are capitalised as intangible assets only when technical feasibility of the project is demonstrated, there is an intention and ability to complete and use the software, the costs can be measured reliably and it is capable of generating future economical benefits. Such costs include purchases of materials and services and payroll-related costs of employees directly involved in the project. Research costs are recognised as an expense when incurred.
Amortisation of intangible fixed assets
Amortisation is charged so as to write off the cost of computer software assets less their residual value over their estimated useful lives, using the straight-line method. Adjustments will be made for any impairment.
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|||
|---|---|
|Asset Category|Economic Useful Life (years)|
|Computer software|10|
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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.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors and provisions
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.
Page 17
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
2 Accounting policies (continued)
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
3 Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements:
- Determine whether there are indicators of impairment of the charitable company’s tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Other key sources of estimation uncertainty
- Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
• Intangible fixed assets
Intangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
4 Income from donations and legacies
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||||
|---|---|---|
|Donations|2022|2021|
|£|£|
|Donations|254|8,585|
|Donated services|4,496|-|
|4,750|8,585|
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The income from donations and legacies was £254 (2021: £8,585) of which £254 was unrestricted (2021: £7,585) and £nil was restricted (2021: £1,000). Income from donated services was £4,496 (2021: £nil) of which £4,496 was unrestricted (2021: £nil).
5 Income from charitable activities
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||||||
|---|---|---|---|---|
|Unrestricted|Restricted|Total|Total|
|Funds|Funds|
|2022|2022|2022|2021|
|£|£|£|£|
|Income from charitable activities|
|Boat income|12,600|-|12,600|1,200|
|Grants received|-|30,860|30,860|42,416|
|Total income from charitable activities|12,600|30,860|43,460|43,616|
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6 Investment income
Investment income of £2 (2021: £12) arises from money held in interest-bearing deposit accounts.
Page 18
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
7 Analysis of expenditure on charitable activities
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||||
|---|---|---|
|2022|2021|
|£|£|
|Salary and NIC|16,830|9,186|
|Employee and board expenses|1,794|4,350|
|Licences and mooring fees|2,280|1,826|
|Boat fuel|1,685|780|
|Repairs and maintenance|9,910|4,736|
|Travel expenses|404|-|
|-|
|Advertising and marketing|4,958|
|Insurance|314|1,194|
|Professional fees|8,876|17,561|
|Sundry expenses|877|(270)|
|Depreciation|4,887|4,865|
|Amortisation|458|344|
|Interest payable|200|77|
|Grant refunds|-|20,000|
|Total|53,473|64,649|
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Expenditure on charitable activities was £53,473 (2021: £64,649) of which £11,848 was unrestricted (2021: £16,164) and £41,625 was restricted (2021: £48,485).
8 Summary analysis of expenditure and related income for charitable activities
This table shows the cost of the charitable activities and the sources of income directly to support those activities.
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|---|---|---|
|2022|2021|
|£|£|
|Costs|(53,473)|(64,649)|
|Boat hire|12,600|1,200|
|Grants received|30,860|42,416|
|Net cost funded from other income|(10,013)|(21,033)|
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9 Analysis of governance and support costs
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Refer to the table below for the basis for apportionment and the analysis of support and governance costs.
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||||||
|---|---|---|---|---|
|Support and governance costs|Basis of apportionment|General|Governance|Total|
|support|function|
|£|£|£|
|Salaries, wages, board and related costs|Allocated based on time|16,830|-|16,830|
|Accountancy and governance services|Governance|-|1,800|1,800|
|Total|16,830|1,800|18,630|
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Page 19
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
10 Net expenditure for the year
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||||
|---|---|---|
|2022|2021|
|£|£|
|This is stated after charging|
|Depreciation|4,887|4,865|
|Amortisation|458|344|
|Fees payable to the company’s auditor for the audit of the company’s annual accounts (VAT inclusive)|1,800|1,800|
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11 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
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||||
|---|---|---|
|2022|2021|
|£|£|
|Salaries and wages|15,953|8,976|
|Social security costs|571|210|
|Pension costs|-|-|
|16,524|9,186|
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No employees had employee benefits in excess of £60,000 (2021: nil). The charity trustees were not paid nor received any other benefits from employment with the charity or its subsidiary in the period (2021: £nil). Trustees were reimbursed travel expenses during the period of £nil (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).
12 Staff numbers
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||||
|---|---|---|
|2022|2021|
|Number|Number|
|Operational|2|1|
|2|1|
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13 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.
Page 20
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
14 Tangible fixed assets
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|||||
|---|---|---|---|
|Plant &|Narrow Boat|Total|
|Equipment|
|£|£|£|
|Cost|
|As at 1 April 2021|1,193|118,641|119,834|
|Additions|-|1,329|1,329|
|As at 31 March 2022|1,193|119,970|121,163|
|Depreciation|
|As at 1 April 2021|1,053|53,816|54,869|
|Charge for period|119|4,768|4,887|
|As at 31 March 2022|1,172|58,584|59,756|
|Net book value|
|As at 31 March 2022|21|61,386|61,407|
|As at 1 April 2021|140|64,825|64,965|
|15 Intangible fixed assets|
|Software|Total|
|£|£|
|Cost|
|As at 1 April 2021 and 31 March 2022|4,585|4,585|
|Depreciation|
|As at 1 April 2021|344|344|
|Charge for period|458|458|
|As at 31 March 2022|802|802|
|Net book value|
|As at 31 March 2022|3,783|3,783|
|As at 1 April 2021|4,241|4,241|
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Page 21
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
16 Debtors
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||||
|---|---|---|
|2022|2021|
|£|£|
|Trade debtors|750|450|
|Other debtors|2,472|140|
|Prepayments and accrued income|913|225|
|4,135|815|
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Amounts owed to group undertakings are interest free and payable on demand.
17 Creditors: amounts falling due within one year
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||||
|---|---|---|
|2022|2021|
|£|£|
|Trade creditors|600|1,644|
|Accruals & deferred income|9,480|2,949|
|Taxation and social security|161|253|
|Amounts owed to group undertakings|660|250|
|Other creditors|376|1,060|
|11,277|6,156|
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18 Deferred income
Deferred income comprises future-dated boat hire sales and deposits to be released in the period when the hire takes place.
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|||
|---|---|
|£|
|Balance as at 1 April 2021|1,500|
|Amount released to income earned from charitable activities|(600)|
|Amount deferred in period|6,780|
|Balance as at 31 March 2022|7,680|
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19 Analysis of charitable funds
Analysis of movements in unrestricted funds
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|||||||
|---|---|---|---|---|---|
|Balance|Incoming|Resources|Transfers|Funds|
|1 April 2021|resources|expended|31 March 2022|
|£|£|£|£|£|
|General fund|61,957|17,352|(11,848)|-|67,461|
|61,957|17,352|(11,848)|-|67,461|
|Balance|Incoming|Resources|Transfers|Funds|
|1 April 2020|resources|expended|31 March 2021|
|£|£|£|£|£|
|General fund|65,736|12,459|(16,164)|(74)|61,957|
|65,736|12,459|(16,164)|(74)|61,957|
|Name of unrestricted fund|Description, nature and purposes of the fund|
|General fund|The total reserves after allowing for all designated funds.|
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Page 22
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
19 Analysis of charitable funds (continued)
Analysis of movements in restricted fund
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|||||||
|---|---|---|---|---|---|
|Balance|Incoming|Resources|Transfers|Funds|
|1 April 2021|resources|expended|31 March 2022|
|£|£|£|£|£|
|Girdlers|2,000|-|(880)|-|1,120|
|Sefton Council Education|955|-|(805)|-|150|
|Mona Duggan Bequest|525|-|(525)|-|-|
|Elizabeth O'Donnell|50|-|(50)|-|-|
|23 Foundation|824|-|(783)|-|41|
|Culture Recovery Fund for Heritage|925|3,210|(4,135)|-|-|
|-|-|
|Big Lottery: Waterways to Recovery|9,864|(5,824)|4,040|
|PH Holt Foundation|-|9,750|(9,750)|-|-|
|-|-|
|Big Lottery Fund - Stage 1|6,000|(3,030)|2,970|
|-|-|
|Big Lottery Fund - Stage 2|17,900|(15,843)|2,057|
|-|
|21,143|30,860|(41,625)|10,378|
|Balance|Incoming|Resources|Transfers|Funds|
|1 April 2020|resources|expended|31 March 2021|
|£|£|£|£|£|
|Sefton Council|20,000|-|(20,000)|-|-|
|Girdlers|2,000|-|-|-|2,000|
|Sefton Council Education|955|-|-|-|955|
|Mona Duggan Bequest|525|-|-|-|525|
|Elizabeth O'Donnell|50|-|-|-|50|
|Big Lottery Fund|6,270|-|(344)|74|6,000|
|23 Foundation|-|1,000|(176)|-|824|
|Culture Recovery Fund for Heritage|-|28,890|(27,965)|-|925|
|-|-|-|
|Big Lottery: Waterways to Recovery|9,864|9,864|
|29,800|39,754|(48,485)|74|21,143|
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Name of restricted fund Description, nature and purposes of the fund
Girdlers
Funding is to provide educational boat trips for schools.
Sefton Council Education
Grant is to fund education for boat crew training of employees and volunteers.
Mona Duggan Bequest
A donation acquired by bequest from Mona Duggan towards free trips for those from deprived backgrounds or those who have suffered trauma.
Elizabeth O'Donnell
Funding secured in form of donation from customer, to be used to fund further trips.
PH Holt Foundation
Funding for trips, training and the project co-ordinator post
Big Lottery Fund 23 Foundation
Funding for trips, crew training and contribution to a new booking system/promotion.
Grant to fund day to day repair and maintenance costs.
Culture Recovery Fund for Heritage
Funding for project co-ordinator, part time development co-ordinator, Covid-19 personal protective equipment and associated training for skippers.
Big Lottery: Waterways to Recovery
Funding for crew training and the provision of 26 trips in support of men's mental health.
Page 23
Pride of Sefton
Notes Forming Part of the Financial Statements for the year ended 31 March 2022 (continued)
20 Analysis of net assets between funds
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|||||
|---|---|---|---|
|Unrestricted|Restricted|Total|
|funds|funds|
|£|£|£|
|Fixed assets|60,913|4,277|65,190|
|Debtors|4,135|-|4,135|
|Cash at bank and in hand|13,690|6,101|19,791|
|Other net current liabilities|(11,277)|-|(11,277)|
|Net assets at 31 March 2022|67,461|10,378|77,839|
|Unrestricted|Restricted|Total|
|funds|funds|
|£|£|£|
|Fixed assets|66,431|2,775|69,206|
|Debtors|815|-|815|
|Cash at bank and in hand|867|18,368|19,235|
|Other net current liabilities|(6,156)|-|(6,156)|
|Net assets at 31 March 2021|61,957|21,143|83,100|
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21 Controlling party and related party transactions
Related party transactions with group subsidiaries
The ultimate controlling party of the group is Sovini Limited – Co-operative and Community Benefit Society.
• Sovini Limited
During the year, Pride of Sefton had transactions with its ultimate parent entity Sovini Limited. Pride of Sefton incurred corporate service charges of £5,359 (2021: £4,324). Sovini Limited have also recharged expenses of £243 (2021: £nil).
Included within creditors are amounts owed to Sovini Limited of £88 (2021: £250).
• Sovini Charities Limited
During the year, Pride of Sefton had no transactions with its parent Sovini Charities Limited (2021: £3,575 unrestricted donations received).
• One Vision Housing Limited
During the year, Pride of Sefton had transactions with group company One Vision Housing Limited. Pride of Sefton incurred recharges of £1,218 (2021: £4,585) from One Vision Housing Limited of which £1,218 (2021: £nil) was expensed to the income and expenditure statement whilst £nil (2021: £4,585) was capitalised within Intangible Fixed Assets. During the year Pride of Seftion also received an unrestricted donation of £1,800 (2021: £5,085). Included within creditors are amounts owed to One Vision Housing Limited of £572 (2021: £nil).
• Sovini Commercial Limited
During the year, Pride of Sefton incurred loan interest of £200 (2021: £77) on their undrawn £20,000 loan facility with Sovini Commercial Limited.
• Sovini Property Services Limited
During the year, Pride of Sefton had transactions with group company Sovini Property Services Limited. Pride of Sefton incurred recharges of £nil (2021: £283) from Sovini Property Services Limited.
Page 24