REGISTERED COMPANY NUMBER: 04016718 (England and Wales) REGISTERED CHARITY NUMBER: 1148009
Report of the Trustees and Financial Statements for the Year Ended 31 August 2020 for
Westfield Community Development Association
Geoff Cowley & Co Ltd Willow Park Upton Lane Stoke Golding Nuneaton Warwickshire CV13 6EU
Westfield Community Development Association
Report of the Trustees for the Year Ended 31 August 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March 2005.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
04016718 (England and Wales)
Registered Charity number
1148009
Registered office
Westfield Community Centre Rosemary Way Hinckley Leicestershire LE10 0LN
Trustees
N M Thornber D R Peake P M Adams M A Hateley W A Smith Trustee
Company Secretary
M A Hateley
Independent examiner
David Preston Chartered Certified Accountant Geoff Cowley & Co Ltd Willow Park Upton Lane Stoke Golding Nuneaton Warwickshire CV13 6EU
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
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.
Recruitment and appointment of new trustees
Where appropriate Trustees are drawn from the Association's membership, appointed or reappointed at the annual general meeting of the Association's membership and/or from time to time co-opted by the board of Trustees.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Page 1
Westfield Community Development Association
Report of the Trustees for the Year Ended 31 August 2020
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity aims to benefit the residents of Hinckley & Bosworth Borough Council area and the neighbourhood, without distinction of sex, sexual orientation, race or political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation leisure time occupation with the objective of improving the conditions of life for the residents.
In furtherance of its charitable objectives but not otherwise, the trustees shall have the powers to establish or secure the establishment of a community centre and to maintain or manage or co-operate with any statutory authority in the maintenance and management of such a centre for activities promoted by the charity in furtherance of the above objects. Association seeks to deliver a life-long community education curriculum which involves working with and delivering a broad range of services to Pre-school children and their families and carers, school age children their families and carers, young people and adults. The Association does this in a variety of ways providing some services directly and others in partnership with local voluntary or statutory organisations.
STRATEGIC REPORT
Achievement and performance
The Association Continues to successfully combine efficient business planning of its traded services and a comprehensive fund raising strategy involving appeals to national and local charitable trusts as well as tapping into local authority small grants to fund specific areas of work with the elderly and disabled.
FINANCIAL REVIEW
During the last 12 months The Association has continued to develop and roll out a sustainability plan aimed at improving financial performance and securing healthy budget surpluses in the coming years. However, the advent of the Covid 19 crisis presented an unprecedented and immediate challenge to the financial welcoming of the Association and a significant threat to the services we provide. During the 6th month of the accounting period, most of our traded services were curtailed or closed as many of our traditional client groups were instructed to socially isolate. We were initially requested to keep our childcare services open for children of NHS and key workers. With small grants from the local authority and a few local trusts we were quickly able to repurpose many of our day care services and take them out to the client groups rather than bring the clients in. An energetic fundraising strategy and recruitment of a team of Covid 19 support volunteers, meant we were able to tap into a number of national and local Covid 19 support funds. Simultaneously we were able to tap into local and national government financial support to offset our traded services losses.
At the time of writing, we are planning our emergence from Covid lockdown restrictions and are confident that the commitment shown by staff, volunteers and trustees throughout the emergency has left us in a position where we will be able to steadily build back our services, create new ones and maybe deliver existing ones in a new post Covid way.
Early identification of future financial risks to services have resulted in the Association securing Central and Local government Support for the business and charitable sector during the Covid 19 crisis and grants and a CBIL loan have been applied for and received.
Contingency plans are already formulated to sustain the staffing and premises infrastructure during an extended lockdown period. The Association remains confident that a return to normal levels of service delivery and trading can be achieved going forward.
The fiscal and social capital made by Volunteers who give their time and expertise to support the Association's programmes, or repair and maintain the Association's Premises continues to make a significant contribution to our financial stability and sustainability.
The Association has policy and a development plan aimed at achieving reserve funds equivalent to three months operating costs, and is working consistently towards this end. The Association has fixed assets valued in excess of £800,000.
Page 2
Westfield Community Development Association
Report of the Trustees for the Year Ended 31 August 2020
As part of its' sustainability plan the Association has developed and continues to roll out a five year business sustainability plan, which involves restructuring a number of its services to improve income generation over the next five years and recruiting and appointing new trustees to the board.
Business and community development plans are reviewed on a regular basis to ensure that the Association continues to deliver its core mission and vision within the context of its charitable Aims and Objectives.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 17 May 2021 and signed on the board's behalf by:
P M Adams - Trustee
Page 3
Westfield Community Development Association
Statement of Financial Activities for the Year Ended 31 August 2020
| Year Ended 31.8.20 Unrestricted fund Notes £ INCOMING RESOURCES Incoming resources from generated funds Voluntary income 2 253,542 Activities for generating funds 3 285,502 Total incoming resources 539,044 RESOURCES EXPENDED Costs of generating funds Costs of generating voluntary income 453 Fundraising trading: cost of goods sold and other costs 4 44,447 Governance costs 5 3,817 Other resources expended 471,723 Total resources expended 520,440 NET INCOMING/(OUTGOING) RESOURCES 18,604 RECONCILIATION OF FUNDS Total funds brought forward 649,913 TOTAL FUNDS CARRIED FORWARD 668,517 CONTINUING OPERATIONS |
Period 1.4.18 to 31.8.19 Total funds £ 448,281 525,130 973,411 472 82,958 4,604 949,652 1,037,686 (64,275) 714,188 649,913 |
|---|---|
All incoming resources and resources expended arise from continuing activities.
The notes form part of these financial statements
Page 5
Westfield Community Development Association
Balance Sheet At 31 August 2020
| 31.8.20 Unrestricted fund Notes £ FIXED ASSETS Tangible assets 9 854,410 CURRENT ASSETS Stocks 10 500 Debtors 11 86,342 Cash at bank and in hand 74,339 161,181 CREDITORS Amounts falling due within one year 12 (53,803) NET CURRENT ASSETS/(LIABILITIES) 107,378 TOTAL ASSETS LESS CURRENT LIABILITIES 961,788 CREDITORS Amounts falling due after more than one year 13 (293,271) NET ASSETS 668,517 FUNDS 16 Unrestricted funds 668,517 TOTAL FUNDS 668,517 |
31.8.19 Total funds £ 855,219 780 56,471 12,440 69,691 (137,801) (68,110) 787,109 (137,196) 649,913 649,913 649,913 |
|---|---|
The notes form part of these financial statements
continued...
Page 6
Westfield Community Development Association
Balance Sheet - continued At 31 August 2020
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 financial statements, so far as applicable to the charitable company.
The financial statements were approved by the Board of Trustees on 17 May 2021 and were signed on its behalf by:
P M Adams -Trustee
The notes form part of these financial statements
Page 7
Westfield Community Development Association
Notes to the Financial Statements for the Year Ended 31 August 2020
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared under the historical cost convention, the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
Financial reporting standard number 1
Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes the subsidiary in its published financial statements.
Incoming resources
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided Plant and machinery - 20% on cost Motor vehicles - 25% on reducing balance
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Company status
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation while he or she is a member within one year after he or she ceases to be a member, for payment of the company's debts and liabilities contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up and for the adjustment of the right of the contributions among themselves.
Page 8
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
2. VOLUNTARY INCOME
| Year Ended 31.8.20 £ Donations including Gift Aid 17,226 Grants 236,316 253,542 Grants received, included in the above, are as follows: Year Ended 31.8.20 £ Other grants 236,316 ACTIVITIES FOR GENERATING FUNDS Year Ended 31.8.20 £ Kids Club and Nursery 267,610 Social lotteries 341 Canteen 4,958 Club and Social Courses 2,700 Minibus and Room Hire 9,893 285,502 |
Period |
|---|---|
| 1.4.18 | |
| to | |
| 31.8.19 | |
| £ | |
| 21,540 | |
| 426,741 | |
| 448,281 | |
| Period | |
| 1.4.18 | |
| to | |
| 31.8.19 | |
| £ | |
| 426,741 | |
| Period | |
| 1.4.18 | |
| to | |
| 31.8.19 | |
| £ | |
| 465,892 | |
| 846 | |
| 13,312 | |
| 6,771 | |
| 38,309 | |
| 525,130 | |
3. ACTIVITIES FOR GENERATING FUNDS
4. FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS
| Year Purchases Staff costs Motor Minibus Expenses Uniforms Labour & DBS Expenses |
Ended 31.8.20 £ 31,415 3,174 6,180 1,047 2,631 44,447 |
Period |
|---|---|---|
| 1.4.18 | ||
| to | ||
| 31.8.19 | ||
| £ | ||
| 54,394 | ||
| 10,635 | ||
| 10,280 | ||
| 2,069 | ||
| 5,580 | ||
| 82,958 | ||
Page 9
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
5. GOVERNANCE COSTS
| GOVERNANCE COSTS | ||
|---|---|---|
| Period | ||
| 1.4.18 | ||
| Year Ended | to | |
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Accountancy | 3,457 | 3,620 |
| Professional Fees | - | 624 |
| Auditors' remuneration | 360 | 360 |
| 3,817 | 4,604 | |
6. NET INCOMING/(OUTGOING) RESOURCES
Net resources are stated after charging/(crediting):
| Period | ||
|---|---|---|
| 1.4.18 | ||
| Year Ended | to | |
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Auditors' remuneration | 360 | 360 |
| Depreciation - owned assets | 1,469 | 2,862 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the period ended 31 August 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2020 nor for the period ended 31 August 2019.
Page 10
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
8. STAFF COSTS
| Year Ended 31.8.20 £ Wages and salaries 373,994 Social security costs 18,365 Other pension costs 7,086 399,445 |
Period |
|---|---|
| 1.4.18 | |
| to | |
| 31.8.19 | |
| £ | |
| 831,932 | |
| 33,649 | |
| 4,153 | |
| 869,734 | |
The average monthly number of employees during the year was as follows:
| Period | ||
|---|---|---|
| 1.4.18 | ||
| Year Ended | to | |
| 31.8.20 | 31.8.19 | |
| General | 36 | 37 |
No employees received emoluments in excess of £60,000.
9. TANGIBLE FIXED ASSETS
| Freehold Plant and property machinery £ £ COST OR VALUATION At 1 September 2019 850,000 60,463 Additions - 660 At 31 August 2020 850,000 61,123 DEPRECIATION At 1 September 2019 - 58,727 Charge for year - 599 At 31 August 2020 - 59,326 NET BOOK VALUE At 31 August 2020 850,000 1,797 At 31 August 2019 850,000 1,736 10. STOCKS Stocks |
Motor vehicles £ 23,431 - 23,431 19,948 870 20,818 2,613 3,483 31.8.20 £ 500 |
Totals £ 933,894 660 |
Totals £ 933,894 660 |
|---|---|---|---|
| 934,554 | |||
| 78,675 1,469 |
|||
| 80,144 | |||
| 854,410 | |||
| 855,219 | |||
| 31.8.19 | |||
| £ | |||
| 780 | |||
Page 11
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors Prepayments CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 14) Other loans (see note 14) Trade creditors Social security and other taxes Net Wages Control Pension Control Account Accrued expenses Deferred government grants |
31.8.20 £ 69,190 16,140 1,012 86,342 31.8.20 £ - 8,254 3,793 7,825 - 2,298 3,193 28,440 53,803 |
31.8.19 | ||
|---|---|---|---|---|
| £ | ||||
| 56,471 | ||||
| - | ||||
| - | ||||
| 56,471 | ||||
| 31.8.19 | ||||
| £ | ||||
| 29,279 | ||||
| 6,694 | ||||
| 6,397 | ||||
| 40,043 | ||||
| 3,500 | ||||
| 2,147 | ||||
| 3,875 | ||||
| 45,866 | ||||
| 137,801 | ||||
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Bank loans (see note 14) Other loans (see note 14) |
31.8.20 £ 236,271 57,000 293,271 |
31.8.19 |
|---|---|---|
| £ | ||
| 94,783 | ||
| 42,413 | ||
| 137,196 | ||
Page 12
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
14. LOANS
An analysis of the maturity of loans is given below:
| Amounts falling due within one year on demand: Bank overdraft HSBC Loan Amounts falling between one and two years: Other loans - 1-2 years Amounts falling due in more than five years: Repayable by instalments: HSBC loan more than 1 year HSBC CBIL SECURED DEBTS The following secured debts are included within creditors: Bank overdraft Bank loans The loan is secured by a charge on the freehold property. HSBC Bank PLC holds legal mortgage charge dated 14/04/2011 |
31.8.20 £ - 8,254 8,254 57,000 86,271 150,000 236,271 31.8.20 £ - 236,271 236,271 |
31.8.19 | |
|---|---|---|---|
| £ | |||
| 29,279 | |||
| 6,694 | |||
| 35,973 | |||
| 42,413 | |||
| 94,783 | |||
| - | |||
| 94,783 | |||
| 31.8.19 | |||
| £ | |||
| 29,279 | |||
| 94,783 | |||
| 124,062 | |||
15. SECURED DEBTS
16. MOVEMENT IN FUNDS
| Net | |||
|---|---|---|---|
| movement in | |||
| At 1.9.19 | funds | At 31.8.20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 649,913 | 18,604 | 668,517 |
| TOTAL FUNDS | 649,913 | 18,604 | 668,517 |
Page 13
Westfield Community Development Association
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
16. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement in | |
|---|---|---|---|
| resources | expended | funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 539,044 | (520,440) | 18,604 |
| TOTAL FUNDS | 539,044 | (520,440) | 18,604 |
| Comparatives for movement in funds | |||
| Net | |||
| movement in | |||
| At 1.4.18 | funds | At 31.8.19 | |
| £ | £ | £ | |
| Unrestricted Funds | |||
| General fund | 714,188 | (64,275) | 649,913 |
| TOTAL FUNDS | 714,188 | (64,275) | 649,913 |
| Comparative net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement in | |
| resources | expended | funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 973,411 | (1,037,686) | (64,275) |
| TOTAL FUNDS | 973,411 | (1,037,686) | (64,275) |
Page 14
Westfield Community Development Association
Detailed Statement of Financial Activities for the Year Ended 31 August 2020
| Year Ended 31.8.20 £ INCOMING RESOURCES Voluntary income Donations including Gift Aid 17,226 Grants 236,316 253,542 Activities for generating funds Kids Club and Nursery 267,610 Social lotteries 341 Canteen 4,958 Club and Social Courses 2,700 Minibus and Room Hire 9,893 285,502 Total incoming resources 539,044 RESOURCES EXPENDED Costs of generating voluntary income Costs of Generating Donations 453 Fundraising trading: cost of goods sold and other costs Purchases 25,337 Childcare Toys and Consumables 6,078 Sure Start 3,174 Motor Minibus Expenses 6,180 Uniforms 1,047 Labour & DBS Expenses 2,631 44,447 Governance costs Accountancy 3,457 Professional Fees - Auditors' remuneration 360 3,817 |
Period |
|---|---|
| 1.4.18 | |
| to | |
| 31.8.19 | |
| £ | |
| 21,540 | |
| 426,741 | |
| 448,281 | |
| 465,892 | |
| 846 | |
| 13,312 | |
| 6,771 | |
| 38,309 | |
| 525,130 | |
| 973,411 | |
| 472 | |
| 43,246 | |
| 11,148 | |
| 10,635 | |
| 10,280 | |
| 2,069 | |
| 5,580 | |
| 82,958 | |
| 3,620 | |
| 624 | |
| 360 | |
| 4,604 |
This page does not form part of the statutory financial statements
Page 15
Westfield Community Development Association
Detailed Statement of Financial Activities for the Year Ended 31 August 2020
| Period | ||
|---|---|---|
| 1.4.18 | ||
| Year Ended | to | |
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Other resources expended | ||
| Staff Wages & Consultancy | 370,820 | 821,297 |
| Social security | 18,365 | 33,649 |
| Pensions & Redundancy | 7,086 | 4,153 |
| Building Costs | 31,424 | 36,674 |
| Telephone | 7,172 | 10,048 |
| Postage and Stationery | 2,787 | 3,942 |
| Repairs and Cleaning | 9,581 | 13,416 |
| Hire of Equipment | 4,104 | 5,521 |
| Security Costs | 788 | 1,109 |
| Sundry | 6,570 | 3,107 |
| Bank Charges | 1,745 | 4,482 |
| Volunteer Expenses | 612 | 61 |
| Depn of Plant & Machinery | 599 | 952 |
| Depn of Motor Vehicles | 871 | 1,910 |
| Loan Interest | 9,199 | 9,331 |
| 471,723 | 949,652 | |
| Total resources expended | 520,440 | 1,037,686 |
| Net income/(expenditure) | 18,604 | (64,275) |
This page does not form part of the statutory financial statements
Page 16
Independent Examiner's Report to the Trustees of Westfield Community Development Association
I report on the accounts of the company for the year ended 31 August 2020, which are set out on pages five to fourteen.
Responsibilities and basis of report
As the charity's trustees (and also the 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.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independant examination, I have examined your charity's accounts as required under section 145 of the Charities Act 2011 ('the 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.
My role is to state whether any material matters have come to my attention giving me cause to believe:
-
that accounting records were not kept as required by section 386 of the Companies Act 2006; or
-
that the accounts do not accord with those records; or
-
that the accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the 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; or
-
that there is further information needed for a proper understanding of the accounts.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Chartered Certified Accountant which is one of the listed bodies.
I have completed my examination and have no concerns in respect of the matters (1) to (4) listed above and, in connection with following the Directions of the Charity Commission I have found no matters that require drawing to your attention.
David Preston Chartered Certified Accountant Geoff Cowley & Co Ltd Willow Park Upton Lane Stoke Golding Nuneaton Warwickshire CV13 6EU
17 May 2021
Page 4
Westfield Community Development Association
Contents of the Financial Statements for the Year Ended 31 August 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 to 7 |
| Notes to the Financial Statements | 8 to 14 |
| Detailed Statement of Financial Activities | 15 to 16 |