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2022-12-31-accounts

Charity registration number 1179484

MERSEA ISLAND COMMUNITY ASSOCIATION CIO ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 Streets Whittle & Partners LLP
The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

CONTENTS

Page
Trustees' report 1 - 2
Statement of Trustees' responsibilities 3
Independent auditor's report 4 - 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 20

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their report and financial statements for the year ended 31 December 2022.

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, Keep Fit, Karate, Diddi Dance, Walking Football, Walking Cricket, Tai Chi,Table Tennis, Carpet Bowls.

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.

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. Energy prices have been a concern but we have a grant in place to enable the heating system to be updated in January 2023. The new system will considerably reduce our gas consumption.

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.

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.

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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 2022 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.

Auditor

In accordance with the company's articles, a resolution proposing that Streets Whittle & Partners LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

B Bolton F Thomas Trustee Trustee 31 July 2023

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

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:

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.

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 2022 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:

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.

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:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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.

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 CIO 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.

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:

In addition to the above, our procedures to respond to the risk identified included the following:

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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

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.

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.

Daniel Insley BA ACA (Senior Statutory Auditor) for and on behalf of Streets Whittle & Partners LLP

31 July 2023

Chartered Accountants Statutory Auditor

The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE

Streets Whittle & Partners LLP 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.

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and grants
3
28,796
-
Charitable activities
2
133,541
-
Investments
4
184
-
Total income
162,521
-
Expenditure on:
Charitable activities
5
165,206
4,608
Net expenditure for the year/
Net movement in funds
(2,685)
(4,608)
Fund balances at 1 January
2022
374,711
23,039
Fund balances at 31 December
2022
372,026
18,431		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
28,796
61,138
1,255
133,541
70,779
-
184
189
-
162,521
132,106
1,255
169,814
137,642
7,015
(7,293)
(5,536)
(5,760)
397,750
380,247
28,799
390,457
374,711
23,039		 Total
2021
£
62,393
70,779
189
133,361
144,657
(11,296)
409,046
397,750

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds		 2022
£
22,789
31,488
54,277
(16,532)		 £
352,708
4
352,712
37,745
390,457
18,431
372,026
390,457		 2021
£
8,394
47,485
55,879
(17,827)		 £
359,694
4
359,698
38,052
397,750
23,039
374,711
397,750

The financial statements were approved by the Trustees on 31 July 2023

B Bolton Trustee

F Thomas Trustee

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 amounts 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.

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.

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Income from grants is included in incoming resources when these are receivable, except as follows:

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 any 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.

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).

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

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.

2 Charitable activities

Subscription and affiliation fees
Activities
Shop income
Hall hire		 2022
£
10,921
30,017
60,551
32,052
133,541		 2021
£
5,482
12,166
41,056
12,075
70,779

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

3 Donations and grants

Unrestricted Unrestricted
Restricted
funds
funds
funds
2022
2021
2021
£
£
£
Donations and gifts
28,796
34,729
1,255
Coronavirus job retention scheme
-
26,409
-
28,796
61,138
1,255
Donations and gifts
Essex Community Grant
-
-
1,155
CO-OP
-
-
100
Mersea Island Community Trading Company
Limited
22,606
3,000
-
Other
1,390
5,585
-
Essex Lottery
-
315
-
Colchester Borough Council (COVID Business
grants)
4,800
25,329
-
Lloyds LB Foundation
-
500
-
28,796
34,729
1,255		 Total
2021
£
35,984
26,409
62,393
1,155
100
3,000
5,585
315
25,329
500
35,984

4 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 184 189

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

5 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 6)
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support costs Governance
costs
£
£
Audit fees
-
3,464
Accountancy
-
1,291
-
4,755
Analysed between
Charitable activities
-
4,755		 2022
£
91,207
7,878
3,733
7,570
10,582
15,392
10,566
5,010
3,996
2,018
5,847
1,260
165,059
4,755
169,814
165,206
4,608
169,814
2022Support costs
Governance
costs
£
£
£
3,464
-
3,940
1,291
-
790
4,755
-
4,730
4,755
-
4,730		 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
2021
£
3,940
790
4,730
4,730

6 Support costs

Governance costs includes audit fees of £3,464 (2021: £3,940) and non-audit fees of £1,291 (2021: £790). Both these amounts are due to the auditor.

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the CIO during the year.

8 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
7 5
Employment costs 2022 2021
£ £
Wages and salaries 89,086 71,792
Social security costs 776 492
Other pension costs 1,345 1,164
91,207 73,448

There were no employees whose annual remuneration was more than £60,000.

9 Tangible fixed assets

Freehold
land and
buildings
Development
expenditure
Fixtures and
fittings
£
£
£
Cost
At 1 January 2022
27,630
293,815
70,858
Additions
-
-
892
At 31 December 2022
27,630
293,815
71,750
Depreciation and impairment
At 1 January 2022
-
-
32,609
Depreciation charged in the year
-
-
7,878
At 31 December 2022
-
-
40,487
Carrying amount
At 31 December 2022
27,630
293,815
31,263
At 31 December 2021
27,630
293,815
38,249		 Total
£
392,303
892
393,195
32,609
7,878
40,487
352,708
359,694

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

10
Fixed asset investments
Cost or valuation
At 1 January 2022 & 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021
Other investments comprise:
Notes
Investments in subsidiaries
18
11
Debtors
Amounts falling due within one year:
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
12
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
13
Accruals and deferred income		 Other
investments
4
4
4
2022
2021
£
£
4
4
2022
2021
£
£
1,657
1,075
20,040
5,922
1,092
1,397
22,789
8,394
2022
2021
£
£
1,294
1,039
10,115
11,132
5,123
5,656
16,532
17,827		 Other
investments
4
4
4
2022
2021
£
£
4
4
2022
2021
£
£
1,657
1,075
20,040
5,922
1,092
1,397
22,789
8,394
2022
2021
£
£
1,294
1,039
10,115
11,132
5,123
5,656
16,532
17,827
4
4
2021
£
4
2021
£
1,075
5,922
1,397
8,394
2021
£
1,039
11,132
5,656
17,827

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

13
Deferred income
2022
£
Arising from Membership in advance and
production deposits
10,115
Deferred income is included in the financial statements as follows:
2022
£
Deferred income is included within:
Current liabilities
10,115
Movements in the year:
Deferred income at 1 January 2022
11,132
Released from previous periods
(11,132)
Resources deferred in the year
10,115
Deferred income at 31 December 2022
10,115		 2021
£
11,132
2021
£
11,132
4,611
(4,611)
11,132
11,132

14 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 Resources Balance at
1 January 2021 resources expended 1 January 2022 expended 31 December
2022
£ £ £ £ £ £
Centre refurbishment work
and fixed assets 28,799 1,255 (7,015) 23,039 (4,608) 18,431

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

15
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
334,277
18,431
Investments
4
-
Current
assets/(liabilities)
37,745
-
372,026
18,431		 Total Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
352,708
336,655
23,039
4
4
-
37,745
38,052
-
390,457
374,711
23,039		 Total
2021
£
359,694
4
38,052
397,750

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.

16 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:

2022 2021
£ £
Within one year - 4,704

MERSEA ISLAND COMMUNITY ASSOCIATION CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

17 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 31,409 26,306

During the period Mersea Island Community Trading Company Limited, a subsidiary of the CIO, donated £22,606 (2021: £3,000) 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 £1,657 (2021: £1,075), this is unsecured and no conditions are attached.

18 Subsidiaries

Details of the CIO's subsidiaries at 31 December 2022 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
Trading Company Limited Wales 100

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 22,988 2,806

19 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.