**Charity registration number 1179484**
**MERSEA ISLAND COMMUNITY ASSOCIATION CIO ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|B Bolton|
|---|---|
||W Bolton|
||P Russell-Grant|
||F Thomas|
||G Petley|
||J Lee|
||P Tydie|
||R Jenkins|
||F Rodwell|
||A Dix|
|**Charity number**|1179484|
|**Principal address**|The Mersea Centre|
||38 High Street|
||West Mersea|
||Colchester|
||Essex|
||CO5 8QA|
|**Auditor**|Whittles|
||Whittle & Partners LLP|
||The Old Exchange|
||64 West Stockwell Street|
||Colchester|
||Essex|
||CO1 1HE|
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Statement of Trustees' responsibilities|4|
|Independent auditor's report|5 - 9|
|Statement of financial activities|10|
|Balance sheet|11|
|Notes to the financial statements|12 - 23|
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Trustees present their report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the CIO's governing document, the Charities Act 2011 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)".
## **Objectives and activities**
The original Association was founded in 1976 by a Trust deed to promote the benefit of the inhabitants of Mersea Island by the advancement of education and the provision of social welfare for recreation and leisure time occupation. The Trust Deed charity was converted to a Charitable Incorporated Organisation (CIO) in 2019.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the CIO should undertake.
## **Achievements and performance**
During the year the Association has continued to operate the Mersea Island Community Centre to provide the following facilities for the benefit of the residents of and visitors to Mersea Island:
A central site comprising a mixture of meeting, function and sports halls that can be used by local organisations and the general public for a variety of functions.
Sports facilities that include a fitness centre, squash and badminton courts, table tennis and carpet bowls.
These are augmented by a number of keep fit events for all ages, these include Pilates, Yoga, Carumba, Karate, Hula Hoop, Diddi Dance, Walking Football, Bounce.
Theatrical facilities are available which permit rehearsal, dance training and the means to put on amateur
shows and plays.
The main and small halls are available to provide regular concerts, film shows, dances, private parties, blood donor sessions, poll facilities, public meetings, tabletop sales and bazaars.
The Centre has operated as fully as possible within the limits imposed by COVID-19.
- 1 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Financial review**
It is the policy of the Association that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure.
Costs are monitored, researched and advice taken to ensure that decisions are made to keep costs to a reasonable level.
The centre running costs were covered from charges made to users and from donations in money and in kind.
Donations made in kind are sold through the Association's own charity shop, which is staffed by volunteers.
This year the running costs have again been assisted through the government furlough scheme for wages and the government grants available in relation to COVID-19. The centre has reopened whenever possible in line with government restrictions. The whole situation has been reviewed on a regular basis so that revenue is maximised and costs are minimised. Decisions are taken in good time so that any changes to the Association's operations are made in a timely manner in order that the Charity remains financially sound and is able to continue to serve the community.
The Trustees has assessed the major risks to which the CIO is exposed, and are satisfied that systems are in
place to mitigate exposure to the major risks.
The trustees and management endeavour to ensure that the Centre is used to best advantage and that every opportunity is taken to take on long term commitments to ensure a steady income. There is a five-year plan in place to prioritise improvements that need to be made at the centre.
- 2 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Structure, governance and management**
The Association is a Charitable Incorporated Organisation (CIO), subject to the provisions of its Constitution.
The Trustees who served during the year and up to the date of signature of the financial statements were: B Bolton
W Bolton P Russell-Grant F Thomas G Petley J Lee P Tydie R Jenkins F Rodwell A Dix
Each trustee is appointed by a resolution passed at a properly convened meeting of the charity trustees. Appointments are made with regard to the skills, knowledge and experience needed for the effective administration of the CIO.
The day to day operation of the centre in 2021 was the responsibility of the Manager, Mr. Tim Gannon. The manager was assisted by one full time, four part-time staff and a team of volunteers to ensure that the Centre has operated as fully as possible in the year.
The Trustees' r eport was approved by the Board of Trustees.
**B Bolton** Trustee Dated: 7 July 2022
**F Thomas** Trustee Dated:7 July 2022
- 3 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable 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 operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 4 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **Opinion**
We have audited the financial statements of Mersea Island Community Association CIO (the ‘CIO’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet and the 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).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then 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 Charities Act 2011.
## **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 are independent of the CIO in accordance with the ethical requirements that are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating 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 CIO’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
- 5 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees 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 determine 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 CIO’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 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 section 144 of the Charities Act 2011 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
- 6 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
The audit tests, including planning procedures, adopted for the audit of these financial statements are designed to assess and detect the risk of irregularities, including fraud. Our risk assessment of the likelihood of irregularities included the high degree of involvement of the experienced board members , which reduces the risk of irregularities.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the C IO through discussions with trustees and other management, and from our knowledge and experience of the charity sector;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity , including the Charities Act , VAT legislation and data protection, employment and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence, and reviewing board meeting minutes;
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We made enquiries with management as to if they considered where they was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
We considered the internal controls in place that would mitigate the risks of fraud and non-compliance with laws and regulations.
- 7 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
We identified the greatest potential for fraud or non-compliance with laws and regulations in the following areas, and the specific procedures performed to address them are described below:
- We obtained an understanding of the revenue process and the flow of financial information to the general ledger and how this is classified as restricted and unrestricted.
- Cut-off testing was performed at the year-end date by reviewing revenue which had be accrued for and revenue that had been recognised after date to identify any transaction which had been erroneously recognised in the incorrect period. The same testing was carried out for expenditure.
- In line with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we reviewed accounting records for any unusual adjustments.
In addition to the above, our procedures to respond to the risk identified included the following:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;
- enquiring of management concerning actual and potential litigation and claims, and instances of noncompliance for the year.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
- 8 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Whittles** 7 July 2022 **Chartered Accountants Statutory Auditor** Whittle & Partners LLP The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE
Whittles is eligible for appointment as auditor of the CIO by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 9 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and grants
**2**
61,138
1,255
Charitable activities
**3**
70,779
-
Investments
**4**
189
-
Other income
**5**
-
-
**Total income**
132,106
1,255
**Expenditure on:**
Charitable activities
**6**
137,642
7,015
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(5,536)
(5,760)
Fund balances at 1 January
2021
380,247
28,799
**Fund balances at 31**
**December 2021**
374,711
23,039|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
62,393
86,310
3,819
70,779
69,848
-
189
103
-
-
140
-
133,361
156,401
3,819
144,657
147,749
7,450
(11,296)
8,652
(3,631)
409,046
371,595
32,430
397,750
380,247
28,799|**Total**
**2020**
**£**
90,129
69,848
103
140|
|---|---|---|
|||160,220|
|||155,199|
|||5,021
404,025|
|||409,046|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 10 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**10**
Investments
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**15**
Unrestricted funds|**2021**
**£**
8,394
47,485
55,879
(17,827)|**£**
359,694
4
359,698
38,052
397,750
23,039
374,711
397,750|**2020**
**£**
8,408
40,297
48,705
(9,060)|**£**
369,397
4|
|---|---|---|---|---|
|||||369,401
39,645|
|||||409,046|
|||||28,799
380,247|
|||||409,046|
The financial statements were approved by the Trustees on 7 July 2022
B Bolton **Trustee**
F Thomas **Trustee**
- 11 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Mersea Island Community Association CIO is a Charitable Incorporated Organisation, registered with the Charities Commission.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the CIO's Constitution, the Charities Act 2011 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)". The CIO is a Public Benefit Entity as defined by FRS 102.
The CIO has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the CIO . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
The Charity was fortunate to be able to use the government furlough scheme and to benefit from government grants throughout the Covid 19 restrictions. The trustees ensured that the Centre opened gradually as restrictions lifted and that all necessary precautions were taken. It is now their expectation that the Charity will continue as a going concern as it has been able to meet outgoings whilst maintaining the savings account.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
- 12 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
Cash donations are recognised on receipt. Other donations are recognised once the CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Membership subscriptions are released to the Statement of Financial Activities over the period of the membership term.
Income from grants is included in incoming resources when these are receivable, except as follows:
- when donors specify that grants given to the charity must be used in future accounting periods;
- when donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the preconditions have been met;
- when donors specify that grants are for restricted purposes which do not amount to preconditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.
## **1.5 Expenditure**
Resources expended are recognised in the period in which they are incurred. Resources expended include VAT which cannot be recovered. Governance comprises costs for the running of the charity itself as an organisation.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings No depreciation provided Development expenditure No depreciation provided Fixtures and fittings 20% Reducing Balance / 25% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and a ny impairment losses or reversals of impairment losses are recognised immediately in net income/ (expenditure) for the year .
A subsidiary is an entity controlled by the CIO. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
- 13 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.8 Impairment of fixed assets**
At each reporting end date, the CIO reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.9 Financial instruments**
The CIO has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the CIO 's balance sheet when the CIO becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.
Financial assets comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital.
Investments, including those in subsidiary undertakings are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure.
Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the CIO is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 14 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **2 Donations and grants**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
34,729
1,255
Coronavirus job
retention scheme
26,409
-
61,138
1,255
**Donations and gifts**
Essex Community Grant
-
1,155
Enovert Community
Trust
-
-
CO-OP
-
100
MIPS
-
-
Mersea Island
Community Trading
Company Limited
3,000
-
Other
5,585
-
Essex Lottery
315
-
Colchester Borough
Council (COVID
Business grants)
25,329
-
West Mersea Town
Council (COVID
Business grants)
-
-
Lloyds LB Foundation
500
-
34,729
1,255|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
35,984
42,170
3,819
26,409
44,140
-
62,393
86,310
3,819
1,155
-
-
-
-
3,569
100
-
-
-
-
250
3,000
-
-
5,585
3,170
-
315
-
-
25,329
38,500
-
-
500
-
500
-
-
35,984
42,170
3,819|Total
2020
£
45,989
44,140|
|---|---|---|
|||90,129|
|||-
3,569
-
250
-
3,170
-
38,500
500
-|
|||45,989|
- 15 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **3 Charitable activities**
||**2021**|
**2020**|
|---|---|---|
||**£**|
**£**|
|Subscription and affiliation fees|5,482|
6,338|
|Activities|12,166|
9,527|
|Shop income|41,056|
33,892|
|Hall hire|12,075|
20,091|
||70,779|
69,848|
|**Investments**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Interest receivable|189|103|
|**Other income**|||
||**Total**|Unrestricted|
|||funds|
||**2021**|2020|
||**£**|£|
|Net gain on disposal of tangible fixed assets|-|105|
|Other income|-|35|
||-|140|
## **4 Investments**
## **5 Other income**
- 16 -
**MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **6 Charitable activities**
|Staff costs
Depreciation and impairment
Rates
Insurance
Light and heat
Repairs and general maintenance
Postage, printing and telephone
Equipment hire
Sporting costs
Event costs
Irrecoverable VAT
Bank charges
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2021**
**£**
73,448
9,704
2,597
7,565
8,128
13,587
7,545
7,656
2,424
1,703
4,868
702
139,927
4,730
144,657
137,642
7,015
144,657|**2020**
**£**
82,211
12,177
2,160
7,441
8,633
7,747
7,432
7,656
1,608
9,229
4,475
680|
|---|---|---|
|||151,449
3,750|
|||155,199|
|||147,749
7,450|
|||155,199|
- 17 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**7**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Audit fees
-
3,940
Accountancy
-
790
-
4,730
Analysed between
Charitable activities
-
4,730|**2021**Support costs Governance
costs
**£**
£
£
3,940
-
3,000
790
-
750
4,730
-
3,750
4,730
-
3,750|2020
£
3,000
750|
|---|---|---|
|||3,750|
|||3,750|
Governance costs includes audit fees of £3, 940 (2020: £3,0 00 ) and non-audit fees of £790 (2020: £ 750) . Both these amounts are due to the auditor.
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the CIO during the year.
## **9 Employees**
The average monthly number of employees during the year was:
||**2021**|**2020**|
|---|---|---|
||**Number**|**Number**|
||5|6|
|**Employment costs**|**2021**|**2020**|
||**£**|**£**|
|Wages and salaries|71,792|79,177|
|Social security costs|492|1,611|
|Other pension costs|1,164|1,423|
||73,448|82,211|
The number of the employees receiving remuneration and benefits of over £60,000 was nil.
There were no employees whose annual remuneration was more than £60,000.
- 18 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**10**
**Tangible fixed assets**
**Freehold**
**land and**
**buildings**
**Development**
**expenditure**
**Fixtures and**
**fittings**
**£**
**£**
**£**
**Cost**
At 1 January 2021
27,630
293,815
70,858
At 31 December 2021
27,630
293,815
70,858
**Depreciation and impairment**
At 1 January 2021
-
-
22,905
Depreciation charged in the year
-
-
9,704
At 31 December 2021
-
-
32,609
**Carrying amount**
At 31 December 2021
27,630
293,815
38,249
At 31 December 2020
27,630
293,815
47,952|**Total**
**£**
392,303|
|---|---|
||392,303|
||22,905
9,704|
||32,609|
||359,694|
||369,397|
- 19 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**11**
**Fixed asset investments**
**Cost or valuation**
At 1 January 2021 & 31 December 2021
**Carrying amount**
At 31 December 2021
At 31 December 2020
Other investments comprise:
**Notes**
Investments in subsidiaries
**19**
**12**
**Debtors**
**Amounts falling due within one year:**
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
**14**
Accruals and deferred income|**Other**
**investments**
4
4
4
**2021**
**2020**
**£**
**£**
4
4
**2021**
**2020**
**£**
**£**
1,075
34
5,922
6,858
1,397
1,516
8,394
8,408
**2021**
**2020**
**£**
**£**
1,039
699
11,132
4,611
5,656
3,750
17,827
9,060|**Other**
**investments**
4
4
4
**2021**
**2020**
**£**
**£**
4
4
**2021**
**2020**
**£**
**£**
1,075
34
5,922
6,858
1,397
1,516
8,394
8,408
**2021**
**2020**
**£**
**£**
1,039
699
11,132
4,611
5,656
3,750
17,827
9,060|
|---|---|---|
|||4|
|||4|
|||**2020**
**£**
4|
|||**2020**
**£**
34
6,858
1,516|
|||8,408|
|||**2020**
**£**
699
4,611
3,750|
|||9,060|
- 20 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**14**|**Deferred income**|||||||
|---|---|---|---|---|---|---|---|
|||||||**2021**|**2020**|
|||||||**£**|**£**|
||Arising from Membership in|advance and||||||
||production deposits|||||11,132|4,611|
||Deferred income is included in the financial statements|||as follows:||||
|||||||**2021**|**2020**|
|||||||**£**|**£**|
||Deferred income is included within:|||||||
||Current liabilities|||||11,132|4,611|
||Movements in the year:|||||||
||Deferred income at 1 January|2021||||4,611|4,960|
||Released from previous periods|||||(4,611)|(4,960)|
||Resources deferred in the year|||||11,132|4,611|
||Deferred income at 31 December 2021|||||11,132|4,611|
|**15**|**Restricted funds**|||||||
||The income funds of the charity include restricted funds comprising||||the following unexpended||balances of|
||donations and grants held on trust for specific purposes:|||||||
|||**Movement in funds**|||**Movement in funds**|||
||**Balance at**|**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 January 2020**|**resources**|**expended**|**1 January 2021**|**resources**|**expended**|**31 December**|
||||||||**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
||Centre|||||||
||refurbishmen|||||||
||t work and|||||||
||fixed assets
32,430|3,819|(7,450)|
28,799|1,255|(7,015)|23,039|
- 21 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**16**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Tangible assets
336,655
23,039
Investments
4
-
Current assets/
(liabilities)
38,052
-
374,711
23,039|**Total**Unrestricted
funds
Restricted
funds
**2021**
2020
2020
**£**
£
£
359,694
340,598
28,799
4
4
-
38,052
39,645
-
397,750
380,247
28,799|Total
2020
£
369,397
4
39,645|
|---|---|---|
|||409,046|
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitiable objects of the CIO.
Restricted funds are funds given by grants for specific refurbishment works or fixed assets.
## **17 Operating lease commitments**
At the reporting end date the CIO had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2021**
**£**
4,704
-
4,704|**2020**
**£**
7,056
4,704|
|---|---|---|
|||11,760|
- 22 -
## **MERSEA ISLAND COMMUNITY ASSOCIATION CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **18 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|26,306|41,136|
During the period Mersea Island Community Trading Company Limited, a subsidiary of the CIO, donated £3,000 (2020: £nil) to the CIO from whose premises it runs a bar. No conditions are attached to these donations.
At the end of the period, the CIO was owed by the company £1,075 (2020: owed the company £34), this is unsecured and no conditions are attached.
## **19 Subsidiaries**
Details of the CIO's subsidiaries at 31 December 2021 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Mersea Island Community|England and|Hospitality|Ordinary|100.00|
|Trading Company Limited|Wales||||
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Mersea Island Community|||
|Trading Company Limited|2,451|2,424|
## **20 Non-audit services provided by the auditor**
In common with many charities of our size and nature we use our auditor to assist with the preparation of the financial statements.
- 23 -