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2021-03-31-accounts

DENTON BURN COMMUNITY ASSOCIATION (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2021

Charity Number 1168779 Company Number 08591698

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 March 2021

Contents Page
Trustees annual report 1 to 4
Independent examiners report 5
Statement of Financial Activities (including 6
income and expenditure account)
Balance sheet 7
Notes to the financial statements 8 to 14

(A company limited by guarantee)

DENTON BURN COMMUNITY ASSOCIATION

TRUSTEE ANNUAL REPORT

For the year ended 31 March 2021

The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a trustees’ 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) (effective 1 January 2015)

1. Objectives and Activities

Denton Burn Community Association is a registered charity providing a social hub and community activities in the heart of Denton Burn. Denton Burn Community Association has a mission to provide a community facility at Denton Burn Community Centre, which is maintained to the highest standards; viable and sustainable and available for use by everyone in the community. The aim is for the Centre to be a valuable asset to the community, used according to the wishes and needs of local people and to be a hub of activities for all ages and all interests. Denton Burn Community Association is managed by a group of volunteers. The Association offers a varied program of social, physical, and learning activities including – Art Classes, Clippy mats, Craft Class, Baby & Toddler groups, Rainbows, Dog Training, Slimming World, Weight Watchers, Spiritualist Meetings, Scottish Country Dancing, Celebration Cards, Tai Chi, Outdoor Bowling Club, Fitness Classes, Taekwondo, Frank Sinatra Appreciation Society, W.I. group, Messy Play, and various training sessions.

When planned activities are arranged, members are asked to volunteer their services on the day to aid in the success of the said activity.

We intend to continue to apply for grants where available.

2. Achievements and Performance

Due to the effect of Covid 19 and enforced lockdowns, the Community Association has been unable to achieve any visualized objectives. The Community Centre was closed down apart from the operation of groups such as Weight Watchers, Slimming World, and the regular children’s activities for limited periods and with restricted numbers.

3. Financial Review

Review of the year

The results for the year and the company's financial position at the end of the year are shown in the attached financial statements.

During the year, the Charity had income of £57,262 (2020: £45,450) of which £nil was restricted (2020: £125) and expenditure of £44,267 (2020: £50,908) of which £nil was restricted (2020: £5,943l). There was an operating surplus of £12,995 (2020: £5,458 deficit) of which £nil was restricted. (2020: £5,818 deficit).

At 31 March 2021 the Charity had net assets of £14,801 (2020: £1,086) of which £9,717 was restricted (2020: £9,717).

1

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEE ANNUAL REPORT

For the year ended 31 March 2021

Reserve’s policy

The Management Committee is aware of the need to have a reserve fund and is developing a strategy to build the level of reserves.

Our Reserves Policy is reviewed annually.

4. Risk Management

The Board is responsible for the management of the risks to which the Charity is exposed. A risk register is produced which considers financial, governance and delivery risks.

For each risk, the register identifies:

The Board reviews the risk register throughout the year. Through the counter measures put in place in the risk register and the regular reviews and updates, the Board is satisfied that the major risks identified have been adequately mitigated. It is recognised that this approach can only provide reasonable but not absolute assurance that major risks have been adequately managed.

5. Plans for future periods

The Management Committee unfortunately have still been unable to finalise Asset Transfer due to delays caused by Covid 19. The Community Centre was closed immediately, and staff furloughed with groups immediately suspended. Forward plans are to follow the Government Policy and recommendations. As usual all vulnerable members and visitors will be given the usual support. The future plan is to go forward as normal whilst ensuring the care and safety of everyone. We will continue to urge the City Council to complete long outstanding repairs to ensure that Asset Transfer is completed as soon as possible.

We will continue to encourage new members and new activities to utilise the Community Centre.

2

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

TRUSTEE ANNUAL REPORT

For the year ended 31 March 2021

6. Reference and administrative details of the charity, its trustees, and advisors

Registered charity name Denton Burn Community Association Charity number 1168779 Company registration number 08591698 Registered office Slatyford lane Newcastle upon Tyne NE5 2UQ Trustees and Members of the Board Mrs M Fothergill (Chair) Mrs I Morley (Treasurer) Mrs L McGuinness Mr K Robinson

Independent Examiner Doug Maltman FMAAT
Connected Voice Business Services Ltd
Higham House
Higham Place
Newcastle upon Tyne
NE1 8AF

7. Structure, governance, and management

Governing Document

The organisation is a Charitable Company Limited by Guarantee. The Company was established under a Memorandum of Association, which established the objects and powers of the Charitable Company and is governed under its Articles of Association. In the event of a winding up any member (who is a director) undertakes to contribute to the payment of liabilities, such amount as may be required not exceeding the total of £1.

Recruitment and Appointment of the Board

The Directors of the Company are also Trustees for the purposes of charity law and under the company's Articles are also its members. Under the requirements of the Memorandum and Articles of Association, at the Annual General Meeting one-third of the Directors, who are subject to retirement by rotation, shall retire. Retiring Directors can be re-appointed at the Annual General Meeting.

Trustees are selected based on specialist skills and commitment to the objectives and aims of the organisation.

3

DENTON BURN COMMUNITY ASSOCIATION (A company limited by guarantee)

TRUSTEE ANNUAL REPORT

For the year ended 31 March 2021

Board Induction and Training

New Board Members are introduced to the work of the organisation and informed of their legal roles and responsibilities at an induction meeting. The induction and training programme for new Board Members includes:

8. Statement of Trustee Responsibilities

The trustees, who are also directors for the purposes of company law, are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the situation of the charitable company and of incoming resources and application of resources, including the income and expenditure of the charitable company for that year. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board on ______ and signed on their behalf by: 03/08/21

Mrs M Fothergill (Chair)

4

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 March 2021

I report on the financial statements of Denton Burn Community Association for the year ended 31 March 2021, which are set out on pages 5 to 14.

Respective responsibilities of trustees and examiner

The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Doug Maltman FMAAT Connected Voice Business Services Ltd Higham House Higham Place Newcastle upon Tyne NE1 8AF Date: 04/08/21

5

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING SUMMARY INCOME & EXPENDITURE ACCOUNT)

For the year ended 31 March 2021

5
6
Other trading activities
7
8
Expenditure on:
9
10
Raising funds
Operation of the charity
Total expenditure
Net income/(expenditure) and net
movement of funds
Charitable activities
Total income
Donations and legacies
Income from:
Investments
Charitable activities
Grants and contracts
Notes
Total funds carried forward
Reconciliation of funds
Total funds brought forward		 Unrestricted
Funds
£
978
8,162
48,122
-
57,262
-
44,267
44,267
12,995
( 8,631 )
4,364		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
9,717
9,717		 Total
2021
£
978
8,162
48,122
-
57,262
-
44,267
44,267
12,995
1,086
14,081		 Total
2020
£
1,498
17,094
26,857
1
45,450
1,551
49,357
50,908
( 5,458 )
6,544
1,086

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 8 to 14 form an integral part of these accounts.

6

Charity Number 1168779 Company Number 08591698

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

BALANCE SHEET

As at 31 March 2021

Current assets
Stock
16
Cash at bank and in hand
17
Total current assets
Creditors:amounts falling due within
one year
18
Net current assets
Total net assets or liabilities
Funds of the charity
Unrestricted income funds
Restricted income funds
Total funds
Notes		 £
646
14,484
15,130
( 1,049 )		 Total
2021
£
14,081
14,081
4,364
9,717
14,081		 £
646
2,363
3,009
( 1,923 )		 Total
2020
£
1,086
1,086
( 8,631 )
9,717
1,086

The company was entitled to an exemption from audit under s477 of the Companies Act 2006 relating to small companies.

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

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

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The notes on pages 8 to 14 form an integral part of these accounts.

03/08/21 These financial statements were approved by the Board on: and are signed on its behalf by: Mrs I Morley Treasurer

7

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2 Basis of accounting

2.1 Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts 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 Charities Act 2011.

Denton Burn Community Association meets the definition of a public benefit entity under FRS 102.

2.2 Preparation of the accounts on a going concern basis

The charity has reported an unrestricted surplus of £4,364 at the year end, and are looking to address the current balance. Due to the COVID-19 pandemic, it has put pressure on all businesses in 2020-21. It should be noted that the creditors are being paid when the payments are falling due. No other significant events affecting the Company since the year end.

3 Income

3.1 Recognition of income

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability

3.2 Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.

3.3 Grants and donations

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.

Income received in advance of the provision of a specified service is deferred until the criteria of income recognition are met.

3.4 Volunteer help

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.

8

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

3.5 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.

3.6 Income from membership subscriptions

Membership subscriptions received in the nature of a gift are recognised in donations and legacies.

Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.

3.7 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the

4 Expenditure and liabilities

4.1 Liability recognition

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

4.2 Charitable activities

Expenditure on charitable activities includes the costs of work and other activities undertaken to further the purposes of the charity and their associated support costs.

4.3 Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

4.4 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

4.5 Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

4.6 Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

9

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of income

5
Donations and legacies
6
Charitable activities
Craft-Friday
Spiritualist
7
Other trading activities
Fundraising events
Café
Admin
HMRC Job Retention Scheme
Grant
Newcastle City Council - Covid-
19 Grant
Social Club
8
Income from investments
Room hire
Bank interest
Art Group
The WI
Taekwondo
Frank Sinatra
Slimming World
Membership subscriptions
Other
Rainbows
Celebration cards
Scottish Monthly Dance
Clippy Mats
Shinning Stars		 Unrestricted
Funds
£
80
898
978
423
-
90
361
-
2,555
68
104
186
-
4,320
55

8,162
4,360
10
44
546
20,874
22,289
-
48,122
-
-		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2021
£
80
898
978
423
-
90
361
-
2,555
68
104
186
-
4,320
55
8,162
4,360
10
44
546
20,874
22,289
-
48,122
-
-		 Total
2020
£
1,360
138
1,498
2,308
1,924
360
1,873
432
7,000
248
1,196
1,032
60
-
661
17,094
24,594
955
432
-
-
-
876
26,857
1
1

Income was £57,262 (2020: £45,450) of which £57,262 was unrestricted or designated (2020: £45,325) and £0 was restricted (2020: £125)

10

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of expenditure on charitable activities

9
10		 Raising funds
Charitable activities
Direct costs
Support costs
Governance costs
Café
Kitchen
Independent examiner's fees for reporting on
the accounts
Staging fundraising events
Project staff salaries
Social Club
Electricity/Water
Repairs and renewals
Payroll fees
Telephone
Covid-19 costs
Administration
Licence/Insurance		 Unrestricted
Funds
£
-
-
27,548
-
-
-
1,925
745
5,968
1,453
441
1,161
4,318
708
44,267		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2021
£
-
-
27,548
-
-
-
1,925
745
5,968
1,453
441
1,161
4,318
708
44,267		 Total
2020
£
1,551
1,551
26,028
47
403
5,943
3,292
715
8,787
1,830
349
1,255
-
708
49,357

Expenditure on charitable activities was £44,267 (2020: £50,908) of which £44,267 was unrestricted or designated (2020: £44,965) and £0 was restricted (2020: £5,943)

11 Fees for examination of the accounts

Independent examiner's fees for reporting on the accounts
Other accountancy services paid to the examiner		 2021
£
708
441
1,149		 2020
£
708
349
1,057

11

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

12 Analysis of staff costs and the cost of key management personnel

nalysis of staff costs and the cost of key management personnel
Salaries and wages 2021
£
27,548
27,548		 2020
£
26,028
26,028

No employee received remuneration above £60,000 (2020: £nil)

The key management personnel of the charity, comprise the trustees.. The total employee benefits of the key management personnel of the charity were £nil.

13 Staff numbers

The average monthly head count was 2 staff (2020: 2 staff) and the average monthly number of full-time equivalent employees during the year were as follows:

Charitable activities
The parts of the charity in which the employee's work		 2021
Number
1.5
1.5		 2020
Number
1.5
1.5

14 Transactions with trustees

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.

Trustees' expenses

No trustee expenses have been incurred in the year.

Transaction(s) with related parties

There have been no related party transactions in the reporting period.

15 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 objectives.

12

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

16 Stock

Charitable activities:
Opening
Added in period
Expensed in period
Impaired
Closing
17
Current account (Association)
Current account (Association)
Deposit account (Association)
Cash in hand (Social Club)
Cash at bank and in hand		 For
For
distribution
resale
£
£
-
646
-
-
-
-
-
-
-
646
2021
2020
£
£
9,800
136
4,422
1,965
57
57
205
205
14,484
2,363
Stock		 For
For
distribution
resale
£
£
-
646
-
-
-
-
-
-
-
646
2021
2020
£
£
9,800
136
4,422
1,965
57
57
205
205
14,484
2,363
Stock
646
-
-
-
646
2020
£
136
1,965
57
205
2,363
18
Creditors and accruals (payable within 1 year)
Independent examination of accounts
Accruals
Other accruals		 2021
£
708
341
1,049		 2020
£
1,386
537
1,923

19 Events after the end of the reporting period

Due to the COVID-19 pandemic, it has put pressure on all businesses in 2020-21. It should be noted that the creditors are being paid when the payments are falling due. No other significant events affecting the Company since the year end.

20 Analysis of charitable funds

Analysis of movements in unrestricted funds

Unrestricted funds
General unrestricted fund
Totals		 Fund
balances
brought
forward
£
( 8,631 )
(8,631)		 Incoming
resources
£
57,262
57,262		 Resources
expended
£
( 44,267 )
(44,267)		 Transfers
£
-
-		 Fund
balances
carried
forward
£
4,364
4,364

13

DENTON BURN COMMUNITY ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2021

Purpose of unrestricted funds

General unrestricted fund The 'free reserves' of the charity

Analysis of movement in restricted funds

Restricted funds
Toy Library
1989 Willan Charitable Trust
Newcastle Building Society
Totals		 Fund
balances
brought
forward
£
2,535
4,182
3,000
9,717		 Incoming
resources
£
-
-
-
-		 Resources
expended
£
-
-
-
-		 Transfers
£
-
-
-
-		 Fund
balances
carried
forward
£
2,535
4,182
3,000
9,717

Purpose of restricted funds

Restricted funds represent income resources used for a specific purpose within the charity as identified by the donor.

Toy Library Funds for soft play and toys. 1989 Willan Charitable Trust Funds for kitchen refurbishment. Newcastle Building Society Funds for kitchen refurbishment.

21 Capital commitments

As at 31 March 2021, the charity had no capital commitments (2020 -£nil)

22 Analysis of net assets between funds

nalysis of net assets between funds
Other net current assets/(liabilities)
Cash at bank and in hand		 Unrestricted
Funds
£
4,767
( 403 )
4,364		 Restricted
Funds
£
9,717
-
9,717		 Total
2021
£
14,484
( 403 )
14,081		 Total
2020
£
2,363
( 1,277 )
1,086

14