**Draft Financial Statements at 10 November 2023 at 15:31:34**
**Charity registration number 269282**
## **HANWORTH COMMUNITY ASSOCIATION**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|C J Foston|
|---|---|
||K Watkins|
|**Charity number**|269282|
|**Principal address**|The Pines Community Centre|
||Hanworth Road|
||Bracknell|
||Berkshire|
||RG12 7WX|
|**Independent examiner**|Stiles & Company|
||2 Lake End Court|
||Taplow Road|
||Taplow|
||Maidenhead|
||Berkshire|
||SL6 0JQ|
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 14|
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees present their annual 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 association'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).
## **Objectives and activities**
The objectives of the association are to promote the benefit of the inhabitants of the neighbourhood of Hanworth without distinction of sex, sexual orientation, race or of political, religious or other opinions. This is achieved by associating together the inhabitants and local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the object of improving the conditions of life for those inhabitants.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the association should undertake.
The main activities undertaken for the public benefit are as follows:
- Preschool
- Brownies
- Guides
- Fund raising
- Bookings for function events
## **Achievements and performance**
The preschool continues to provide facilities for 2 to 4 year olds.
Guides and Brownies resumed providing activities for young people following a closure due to COVID-19.
Bookings for function events have continued to generate income for the purpose of the association.
## **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. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the association’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
## **Structure, governance and management**
The association is an unincorporated entity which is governed by the association's constitution.
The trustees who served during the year and up to the date of signature of the financial statements were: C J Foston
K Watkins
The association's trustees are elected by the members at each annual general meeting.
None of the trustees has any beneficial interest in the association. All of the trustees are members of the association and guarantee to contribute £1 in the event of a winding up.
- 1 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The trustees' report was approved by the Board of Trustees.
.............................. C J Foston **Chairman and Trustee**
`17/01/2024` Date: .............................................
- 2 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF HANWORTH COMMUNITY ASSOCIATION**
I report to the trustees on my examination of the financial statements of Hanworth Community Association (the association) for the year ended 31 December 2022.
## **Responsibilities and basis of report**
As the trustees of the association you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the association’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 that in any material respect:
- 1 accounting records were not kept in respect of the association as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
Philip Ormerod ACCA (2129200)
## **Stiles & Company**
2 Lake End Court Taplow Road Taplow Maidenhead Berkshire SL6 0JQ `30/01/2024`
Dated: .........................
- 3 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **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 legacies
**3**
-
128,926
Charitable activities
**4**
23,254
11,021
Investments
**5**
22
-
**Total income**
23,276
139,947
**Expenditure on:**
Charitable activities
**6**
23,335
137,809
Gross transfers
between funds
-
-
**Net (expenditure)/income for**
**the year/**
**Net movement in funds**
(59)
2,138
Fund balances at 1 January
2022
13,708
33,845
**Fund balances at 31**
**December 2022**
13,649
35,983|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
128,926
-
133,472
34,275
10,662
12,918
22
-
-
163,223
10,662
146,390
161,144
14,551
117,561
-
7,500
(7,500)
2,079
3,611
21,329
47,553
10,097
12,516
49,632
13,708
33,845|**Total**
**2021**
**£**
133,472
23,580
-|
|---|---|---|
|||157,052|
|||132,112|
|||-
24,940
22,613|
|||47,553|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2022**_
|**2022**
**Notes**
**£**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Stocks
**12**
219
Debtors
**13**
5,397
Cash at bank and in hand
78,073
83,689
**Creditors: amounts falling due within one**
**year**
**14**
(35,364)
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds|**2021**
**£**
**£**
1,307
219
5,397
70,646
76,262
(30,452)
48,325
49,632
35,983
13,649
49,632|**£**
1,743
45,810|
|---|---|---|
|||47,553|
|||33,845
13,708|
|||47,553|
```
17/01/2024
```
The financial statements were approved by the Trustees on .........................
..............................
C J Foston **Chairman and Trustee**
- 5 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
Hanworth Community Association is a an unincorporated association governed by its constitution.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the association's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 association is a Public Benefit Entity as defined by FRS 102.
The association has taken advantage of the provisions in the SORP for charities 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 association. 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**
At the time of approving the financial statements, the trustees have a reasonable expectation that the association has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the association.
## **1.4 Income**
Income is recognised when the association 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 association 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.
Legacies are recognised on receipt or otherwise if the association has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
**(Continued)**
The charity receives government grants in respect of Preschool activities. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **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:
|Leasehold improvements|25% reducing balance|
|---|---|
|Plant and equipment|25% reducing balance|
|Fixtures and fittings|25% reducing balance|
|Computers|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 Impairment of fixed assets**
At each reporting end date, the association 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).
## **1.8 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 7 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
**1 Accounting policies**
**(Continued)**
## **1.10 Financial instruments**
The association 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 association's balance sheet when the association 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 assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the association’s contractual obligations expire or are discharged or cancelled.
## **1.11 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 association is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 8 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **2 Critical accounting estimates and judgements**
In the application of the association’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Restricted**|**Restricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Donations and gifts|514|-|
|Government grants|128,412|133,472|
||128,926|133,472|
|**Grants receivable for core activities**|||
|Bracknell Forest Council|128,412|133,472|
||128,412|133,472|
- 9 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**4**
**Charitable activities**
**Preschool**
**Community**
**Association**
**2022**
**2022**
**£**
**£**
Preschool fees
received
11,021
-
Bookings income
-
6,878
Rental income
-
16,376
Other income
-
-
11,021
23,254
**Analysis by fund**
Unrestricted funds
-
23,254
Restricted funds
11,021
-
11,021
23,254|**Total**
**2022**
**Preschool**
**Community**
**Association**
**2021**
**2021**
**£**
**£**
**£**
11,021
12,918
-
6,878
-
1,906
16,376
-
8,715
-
-
41
34,275
12,918
10,662
23,254
-
10,662
11,021
12,918
-
34,275
12,918
10,662|**Total**
**2021**
**£**
12,918
1,906
8,715
41|
|---|---|---|
|||23,580|
|||10,662
12,918|
|||23,580|
## **5 Investments**
||**Unrestricted**|**Total**|
|---|---|---|
||**funds**||
||**2022**|**2021**|
||**£**|**£**|
|Interest receivable|22|-|
- 10 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **6 Charitable activities**
|**Preschool**
**Community**
**Association**
**2022**
**2022**
**£**
**£**
Staff costs
123,796
-
Educational costs
6,582
-
130,378
-
Share of support costs
(see note 7)
5,058
22,535
Share of governance costs
(see note 7)
2,373
800
137,809
23,335
**Analysis by fund**
Unrestricted funds
-
23,335
Restricted funds
137,809
-
137,809
23,335
**7**
**Support costs**
**Support costs**
**Governance**
**costs**
**£**
**£**
Support costs
27,593
-
Audit and bookkeeping fees
-
3,173
27,593
3,173
Analysed between
Charitable activities
27,593
3,173|**Total**
**2022**
**Preschool**
**Community**
**Association**
**2021**
**2021**
**£**
**£**
**£**
123,796
107,169
-
6,582
5,240
-
130,378
112,409
-
27,593
2,581
13,819
3,173
2,571
732
161,144
117,561
14,551
23,335
-
14,551
137,809
117,561
-
161,144
117,561
14,551
**2022** Support costs
Governance
costs
**£**
£
£
27,593
16,400
-
3,173
-
3,303
30,766
16,400
3,303
30,766
16,400
3,303|**Total**
**2021**
**£**
107,169
5,240|
|---|---|---|
|||112,409
16,400
3,303|
|||132,112|
|||14,551
117,561|
|||132,112|
|||2021
£
16,400
3,303|
|||19,703|
|||19,703|
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the association during the year.
- 11 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **9 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
8
**2022**
**£**
119,770
1,686
2,340
123,796|**2021**
**Number**
9|
|---|---|---|
|||**2021**
**£**
104,543
-
2,626|
|||107,169|
There were no employees whose annual remuneration was more than £60,000.
## **10 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **11 Tangible fixed assets**
|**Tangible fixed assets**||
|---|---|
|**Leasehold**
**improvements**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**Computers**
**£**
**£**
**£**
**£**
**Cost**
At 1 January 2022
24,102
3,051
19,998
8,926
At 31 December 2022
24,102
3,051
19,998
8,926
**Depreciation and impairment**
At 1 January 2022
23,615
2,507
19,743
8,469
Depreciation charged in the year
122
136
64
114
At 31 December 2022
23,737
2,643
19,807
8,583
**Carrying amount**
At 31 December 2022
365
408
191
343
At 31 December 2021
487
544
255
457|**Total**
**£**
56,077|
||56,077|
||54,334
436|
||54,770|
||1,307|
||1,743|
- 12 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**12**
**Stocks**
Raw materials and consumables
**13**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**14**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Government grants
**15**
Other creditors
Accruals and deferred income|**2022**
**£**
219
**2022**
**£**
5,397
**2022**
**£**
9,436
21,296
2,132
2,500
35,364|**2021**
**£**
219|
|---|---|---|
|||**2021**
**£**
5,397|
|||**2021**
**£**
2,547
23,910
1,495
2,500|
|||30,452|
## **15 Government grants**
Deferred income is included in the financial statements as follows:
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Deferred income is included within:|||
|Current liabilities|21,296|23,910|
|Movements in the year:|||
|Deferred income at 1 January 2022|23,910|22,337|
|Released from previous periods|(23,910)|(22,337)|
|Resources deferred in the year|21,296|23,910|
|Deferred income at 31 December 2022|21,296|23,910|
The deferred government grants are in respect of funding received for pre-school services which relate to 2023.
- 13 -
**Draft Financial Statements at 10 November 2023 at 15:31:34 HANWORTH COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**16**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
December 2022 are
represented by:
Tangible assets
899
408
Current assets/(liabilities)
12,750
35,575
13,649
35,983|**Total**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
1,307
1,199
544
48,325
12,509
33,301
49,632
13,708
33,845|**Total**
**2021**
**£**
1,743
45,810|
|---|---|---|
|||47,553|
## **17 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
- 14 -