Company number: 00329203
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
FOR
THE LEAGUE OF WELLDOERS
(A company limited by guarantee)
Company number: 00329203
THE LEAGUE OF WELLDOERS
CONTENTS OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| Page | |
|---|---|
| Legal & Administrative Details | 1 |
| Report of the Council of Management | 2 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 |
| Report of the Independent Examiner | 10 |
| Detailed Income and Expenditure Account | 11 |
Company number: 00329203
THE LEAGUE OF WELLDOERS
LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2022
Page 1
COUNCIL OF MANAGEMENT: J C Daly R W Bevan R K Orme REGISTERED OFFICE: 119-133 Limekiln Lane Liverpool Merseyside L5 8SN COMPANY NUMBER: 00329203 (England and Wales) CHARITY NUMBER: 224436 (England and Wales) INDEPENDENT EXAMINER: D S Glover FCA John Kerr Chartered Accountants 375 Eaton Road West Derby Liverpool Merseyside L12 2AH BANKERS: HSBC Bank PLC 99-101 Lord Street Liverpool Merseyside L2 6PG
Company number: 00329203
THE LEAGUE OF WELLDOERS
REPORT OF THE COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2022
Page 2
The members of the council of management, who are the directors for the purpose of company law, present their annual report with the financial statements of the charitable company for the year ended 31 March 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The legal and administrative information set out on page 1 forms part of this report.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019.
OUR PURPOSES AND ACTIVITIES
The purposes of the charitable company are to carry on charitable work amongst those in need together with the operation and management of community-based centres dedicated to this task. In addition, in line with the vision of our founder Lee Jones, the charitable company is involved with reaching out to people of all ages across Merseyside with a view to improving their quality of life.
In shaping our objectives for the year and planning our activities, the council of management have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’. The charity relies on the income from fees and charges to cover its operating costs. Affordability and access to our facilities is important to us and is reflected in our pricing policy.
ACHIEVEMENTS, PERFORMANCE AND PLANS FOR THE FUTURE
The results for the year and financial position of the charitable company are as shown in the annexed financial statements. During previous years the charitable company was fortunate to receive some sizeable legacies which have enabled it to continue to develop the operation of the Lee Jones Centre and Goddard Hall which are used by the community. The council of management continue to seek further funding to enable them to improve and expand the facilities offered and to enable them to continue to provide further charitable support for those in need. They take this opportunity of further recognising the contributions of time and effort made by the many friends, volunteers, staff and supporters without whom the achievements to date would not have happened and, are proud to be recognised as a valued community resource.
RESERVES POLICY AND GOING CONCERN
Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The members of the council of management have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should be between 9 and 12 months of the resources expended, which equates to between approximately £150,000 to £200,000 in general funds. At this level, the members of the council of management feel that they would be able to continue the current activities of the charity in the event of a significant drop in funding. At present the free reserves exceed this target level and the members of the council of management are considering the possible future expansion of operations which is expected to utilise reserves for the future benefit of our beneficiaries.
In preparing the accounts, the council of management consider that the charitable company has sufficient resources to continue operations for the foreseeable future.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The League of Welldoers (which can trace its roots back to May 1893) is a company limited by guarantee, incorporated on 26 June 1937, and registered as a charity on 23 January 1964. Members of the charitable company guarantee to contribute an amount not exceeding £10 in the event of the charity winding up. The company is governed by the policies made from time to time by the members of the council of management together with the terms of its Memorandum and Articles of Association which set out the objects and powers of the company. The procedures for the appointment, retirement and removal of members of the council of management are set out in the Articles. All members of the council of management are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. The day-to-day operational aspects of the charity have been delegated to the Manager and his team.
The following were members of the council of management during the year and up to the date of this report:
R W Bevan, R K Orme and J C Daly.
RELATED PARTIES
None of the council of management receive remuneration or other financial benefit from their work with the charity and any contractual relationship with a related party must be disclosed to the full board. In the current year, no such related party transactions were reported.
Company number: 00329203
THE LEAGUE OF WELLDOERS
REPORT OF THE COUNCIL OF MANAGEMENT - continued FOR THE YEAR ENDED 31 MARCH 2022
Page 3
RISK MANAGEMENT & COVID-19
The council of management have a risk management strategy which comprises: an annual review of the principal risks and uncertainties that the charity faces and, the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
Financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due and active management of trade debtors and creditor balances to ensure sufficient working capital is available.
Attention has also been focused on non-financial risks arising from fire, health and safety and food hygiene. These risks are managed by ensuring procedures and accreditations are up to date, having robust policies and procedures in place, and regular awareness training for staff and volunteers in these operational areas.
Since March 2020, the COVID-19 outbreak has created a major challenge with a high level of uncertainty for many charities. The council of management took prompt action to protect cash flow including reducing outgoings and taking advantage of government grants and support measures. In addition, the Lee Jones Centre has been utilised to provide a mass testing and vaccination facility. Whilst the impact of the COVID-19 situation cannot be accurately predicted and it is not possible to assess all possible implications for the charitable company, based on the assessments carried out, the charitable company believes that it has a financial position that will enable it to navigate through the current disruptions to the operation of the facilities and services provided.
RESPONSIBILITIES OF THE COUNCIL OF MANAGEMENT IN RELATION TO THE FINANCIAL STATEMENTS
The members of the council of management are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements, they are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue on that basis.
The council of management are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
BY ORDER OF THE COUNCIL OF MANAGEMENT:
J C Daly – Member of the Council of Management
26 July 2022
Company number: 00329203
THE LEAGUE OF WELLDOERS
STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) Page 4 FOR THE YEAR ENDED 31 MARCH 2022
| 31.3.2022 | 31.3.2021 | |
|---|---|---|
| Unrestricted RestrictedTotal | Total | |
| funds fundsfunds | funds | |
| £ ££ | £ | |
| Income: | ||
| Donations & gifts | 45,262 -45,262 | 10,714 |
| Legacies | 55,000 -55,000 | 21,000 |
| Charitable activities, room hire & funds generated | 120,453 -120,453 | 64,672 |
| Grants – Job Retention Scheme | 17,025 -17,025 | 41,165 |
| Investment and rental income | 33,225 -33,225 | 35,136 |
| Total income | 270,965 -270,965 | 172,687 |
| Expenditure: | ||
| Costs of operation of centres and fundraising | 191,326 -191,326 | 183,911 |
| Investment management costs | 3,053 -3,053 | 2,824 |
| Governance costs | 3,247 -3,247 | 3,247 |
| Total expenditure(note 2) | 197,626 -197,626 | 189,982 |
| Net income/ (expenditure) for the year | ||
| and net movement in funds before | ||
| other recognised gains and losses | 73,339 -73,339 | (17,295) |
| Gains on investment assets | 12,361 -12,361 | 57,043 |
| Net movement in funds for theyear | 85,700 -85,700 | 39,748 |
| Reconciliation of funds | ||
| Total funds brought forward | 777,346 2,654780,000 | 740,252 |
| Total funds carried forward | 863,046 2,654865,700 | 780,000 |
The statement of financial activities incorporates the income and expenditure account.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
The notes form part of these financial statements
Company number: 00329203
THE LEAGUE OF WELLDOERS
| BALANCE SHEET 31 MARCH 2022 |
Page 5 £ 367,175 341,147 |
||||
|---|---|---|---|---|---|
| Notes FIXED ASSETS Tangible assets 5 Investments 6 TOTAL FIXED ASSETS CURRENT ASSETS Debtors 7 Cash at bank and in hand TOTAL CURRENT ASSETS LIABILITIES Creditors falling due within one year 8 NET CURRENT ASSETS/ (LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES THE FUNDS OF THE CHARITY9 Restricted income funds Unrestricted income funds TOTAL CHARITY FUNDS |
31.3.22 £ 15,816 202,717 218,533 **15,992 ** |
£ 352,159 311,000 663,159 202,541 865,700 2,654 863,046 865,700 |
31.3.21 £ 49,873 34,914 84,787 13,109 |
||
| 708,322 71,678 |
|||||
| 780,000 | |||||
| 2,654 777,346 |
|||||
| 780,000 |
The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The members of the council of management acknowledge their responsibilities for:
-
(a) ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its income and expenditure for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The financial statements were approved by the Council of Management and authorised for issue on 26 July 2022 and were signed on its behalf by:
J C Daly – Member of the Council of Management
The notes form part of these financial statements
Company number: 00329203
THE LEAGUE OF WELLDOERS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
Page 6
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:
Basis of preparation
The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 – (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The League of Welldoers meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Preparation of the accounts on a going concern basis
In preparing the accounts, the council of management have taken account of the financial resources available to the charity and consider that the charity should be able to continue operations for the foreseeable future.
Income recognition
Items of income are recognised and included in the accounts when all of the following criteria are met: the charity has entitlement to the funds; any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity; there is sufficient certainty that receipt of the income is considered probable; and the amount can be measured reliably. The value of services provided by volunteers has not been included in these accounts.
Expenditure recognition
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Tangible fixed assets
| Tangible fixed assets | Tangible fixed assets |
|---|---|
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: | |
| Freehold properties | - 2% on cost |
| Fixtures and fittings | - 10% on cost |
| Motor vehicles | - 25% on cost |
| Computer equipment | - 25% on cost |
2. NET INCOME/ (EXPENDITURE)
| NET INCOME/ (EXPENDITURE) | ||
|---|---|---|
| This is stated after charging: | 31.3.2022 | 31.3.2021 |
| £ | £ | |
| Depreciation - owned assets | 15,016 | 15,531 |
| Independent Examination and accountancy fees | **3,234 ** | 3,234 |
The members of the council of management were not paid nor did they receive any other benefits from employment with the charity in the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil). No member received payment for professional or other services supplied to the charity (2021: £nil).
3.
ANALYSIS OF STAFF COSTS AND STAFF NUMBERS
| 31.3.2022 | 31.3.2021 | |
|---|---|---|
| £ | £ | |
| Wages and salaries (No employee had emoluments in excess of £60,000) | 108,297 | 105,943 |
| Employers National Insurance – Social security costs | 3,097 | 701 |
| Pension contributions | 1,609 | 1,441 |
| 113,003 | 108,085 | |
| The average monthly head count during the year was as follows: |
||
| Management and operation of the community based centres | 6 | 9 |
Company number: 00329203
THE LEAGUE OF WELLDOERS
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2022
Page 7
4. CORPORATION TAX
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects.
5. TANGIBLE FIXED ASSETS
| Freehold properties £ COST At 1 April 2021 618,738 Additions - Disposals - At 31 March 2022 618,738 DEPRECIATION At 1 April 2021 254,668 Charge for year 12,375 Eliminated on disposal - At 31 March 2022 267,043 NET BOOK VALUE At 31 March 2022 351,695 At 31 March 2021 364,070 |
Fixtures and fittings £ 60,092 - - 60,092 59,563 66 - 59,629 463 529 |
Motor Computer vehicles equipment £ £ 27,109 3,264 - - - - 27,109 3,264 24,534 3,263 2,575 - - - 27,109 3,263 - 1 2,575 1 |
Totals £ 709,203 - - 709,203 342,028 15,016 - 357,044 352,159 367,175 |
|---|---|---|---|
6. FIXED ASSET INVESTMENTS
| Listed | |
|---|---|
| investments | |
| £ | |
| VALUATION | |
| At 1 April 2021 | 341,147 |
| Additions | 10,546 |
| Disposals | (53,053) |
| Revaluations | **12,361 ** |
| At 31 March 2022 | 311,000 |
| NET BOOK VALUE | |
| At 31 March 2022 on a fair value basis carried out by Rathbone Investment Management | 311,000 |
At 31 March 2022 on a fair value basis carried out by Rathbone Investment Management
Company number: 00329203
HE LEAGUE OF WELLDOERS
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2022
Page 8
7. DEBTORS
| Trade debtors Other debtors Prepayments and accrued income 8.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Social security and other taxes Accruals and deferred income Other creditors |
31.3.22 £ 1,026 - 14,790 15,816 31.3.22 £ 3,549 2,355 9,799 289 **15,992 ** |
31.3.21 £ 40,500 - 9,373 49,873 31.3.21 £ 900 1,402 10,535 272 13,109 |
|---|---|---|
- ANALYSIS OF MOVEMENTS IN CHARITABLE FUNDS
| At 1 April Incoming Outgoing At 31 March Restricted income funds: 2021 Resources Resources 2022 Recording Studio 500 - - 500 (Future studio funding) LCVS 1,000 - - 1,000 (Magic school funding) Zurich Community Trust 754 - - 754 (Cameras) North Liverpool 400 - - 400 (Digital displays) Total restricted funds: 2,654 - - 2,654 Unrestricted income funds: General funds 777,346 283,326 197,626 863,046 Totals funds: 780,000 283,326 197,626 865,700 At 1 April Incoming Outgoing At 31 March Restricted income funds: 2020 Resources Resources 2021 Recording Studio 500 - - 500 (Future studio funding) LCVS 1,000 - - 1,000 (Magic school funding) Zurich Community Trust 754 - - 754 (Cameras) North Liverpool 400 - - 400 (Digital displays) Total restricted funds: 2,654 - - 2,654 Unrestricted income funds: General funds 737,598 229,730 189,982 777,346 Totals funds: 740,252 229,730 189,982 780,000 |
|
|---|---|
| Totals funds: 740,252 229,730 189,982 780,000 |
Company number: 00329203
THE LEAGUE OF WELLDOERS
NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2022
Page 9
10. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| At 31 March 2022 | General Funds | Restricted Funds | Total Funds |
|---|---|---|---|
| Tangible fixed assets | 352,159 | - | 352,159 |
| Investments | 311,000 | - | 311,000 |
| Current assets | 215,879 | 2,654 | 218,533 |
| Creditors | (15,992) | - | (15,992) |
| Net assets at year end | 863,046 | 2,654 | 865,700 |
| At 31 March 2021 | General Funds | Restricted Funds | Total Funds |
| Tangible fixed assets | 367,175 | - | 367,175 |
| Investments | 341,147 | - | 341,147 |
| Current assets | 82,133 | 2,654 | 84,787 |
| Creditors | (13,109) | - | (13,109) |
| Net assets at yearend | 777,346 | 2,654 | 780,000 |
11. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES
In common with many other charities of our size and nature we use our Independent Examiner to assist with the preparation of the financial statements.
12. LEGAL STATUS OF THE CHARITY
The charity is a private company, limited by guarantee, registered in England and Wales and has no share capital. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. The company’s registered number and registered office address can be found on page 1. The charitable company is a Public Benefit Entity.
Company number: 00329203
INDEPENDENT EXAMINER’S REPORT TO THE COUNCIL OF MANAGEMENT OF THE LEAGUE OF WELLDOERS
Page 10
I report to the council of management on my examination of the accounts of the charitable company for the year ended 31 March 2022 which are set out on pages 4 to 9.
This report is made to the charity’s council of management, as a body, in accordance with the terms of engagement. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and the council of management, as a body, for my work or for this report.
Responsibilities and basis of report
As the council of management of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s report
Since the company’s gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those accounting records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and 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.
David S Glover FCA John Kerr - Chartered Accountants 375 Eaton Road West Derby Liverpool Merseyside L12 2AH
26 July 2022
Company number: 00329203
Page 11
THE LEAGUE OF WELLDOERS
DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| Income: Fundraising, room hire, legacies, donations & gifts Rental income Grants – Job Retention Scheme Income from listed investments Interest receivable Expenditure: Rates & water Insurances Light, heat & power Wages & salaries National Insurance Pension contributions Telephone & communications Post, printing & stationery Advertising & sponsorship Motor & travelling expenses Fundraising & activities expenditure Investment management fees Repairs, renewals, refurbishments & maintenance Cleaning & hygiene Security Statutory filing fee Professional fees Bank charges & card processing fees Depreciation - Freehold properties Depreciation - Fixtures & fittings Depreciation - Motor vehicles Net income/ (expenditure) before investment gains |
31.3.22 £ 25,562 17,025 7,653 10 6,594 8,759 15,990 108,297 3,097 1,609 1,818 590 1,328 3,323 8,455 3,053 6,731 6,779 2,446 13 3,234 494 12,375 66 2,575 |
£ 220,715 50,250 270,965 197,626 73,339 |
31.3.21 £ 25,469 41,165 9,665 2 7,954 8,792 14,881 105,943 701 1,441 1,814 2,500 1,328 4,369 6,332 2,824 3,157 5,989 2,886 13 3,234 293 12,375 66 3,090 |
£ 96,386 76,301 172,687 189,982 (17,295) |
|---|---|---|---|---|