**CLUB REGISTRATION NUMBER** **271139** # **CRANHAM COMMUNITY ASSOCIATION FINANCIAL STATEMENTS** **31 DECEMBER 2021** ## **BROWN & CO LLP** Chartered Accountants 2 Lords Court Cricketers Way Basildon Essex SS13 1SS ## **CRANHAM COMMUNITY ASSOCIATION** ## **THE REPORT OF THE MANAGEMENT COMMITTEE** ## **YEAR ENDED 31 DECEMBER 2021** The Management Committee has pleasure in presenting its report and the unaudited financial statements of the club for the year ended 31 December 2021. ## **PRINCIPAL ACTIVITIES AND OPERATIONAL REVIEW** The principal activity of the charity is the provision of a variety of educational and recreational activities to the inhabitants of Cranham Ward and its neighbourhood. As expected, the various lockdowns due to the Covid restrictions over the last couple of years have resulted in a substantial reduction in income. Income generated by the association reduced from £93,629 in 2019 to £29,777 in 2020 and bounced back to £62,960 for the year ended 31st December 2021. These reductions have been partially offset by Covid support grants of £25,000 in 2020 and £10,000 in 2021. Of the income generated in the year Room Hire continued to be the largest income source accounting for 69% (2020 91%) of the self generated income. Now that all remaining Covid restrictions have been lifted and the community starting to return to normal activities it is anticipated that income levels should continue to increase for the year ended December 2022. General overheads increased by just over £13,000 in the year but remained almost £20,000 below pre-covid levels. The main increases in the year were due to additional rent being paid of £4,250 and an increase in wages costs where the furlough scheme ceased. Despite the continued restrictions in 2021, there was only a small loss for the year of £1,779 compared to £6,560 for 2020. Considering that income was still only two thirds of pre-covid levels this must be considered a very satisfactory result. The loss is reflected in the bank account at the year end which fell from £4,436 at the beginning of the year to £3,123 at December 2021. M Grote retired as a trustee on 5 October 2021. T Royden retired as a trustee on 5 May 2021. C Royden retired as a trustee on 5 May 2021. Registered office: Signed by order of the trustees Marlborough Gardens Cranham Upminster Essex RM14 1SR E Beasley Club Secretary Approved by the Management Committee on 8 June 2022 **- 1 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **ACCOUNTANTS' REPORT TO THE MANAGEMENT COMMITTEE OF CRANHAM COMMUNITY ASSOCIATION** ## **YEAR ENDED 31 DECEMBER 2021** As described on the balance sheet, you are responsible for the preparation of the financial statements for the year ended 31 December 2021. You consider that the club is exempt from an audit under the Co-operative and Community Benefit Societies Act 2014. In accordance with your instructions we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and information and explanations supplied to us. BROWN & CO LLP Chartered Accountants 2 Lords Court Cricketers Way Basildon Essex SS13 1SS ........................ These financial statements were approved by the Management Committee and authorised for issue on the 8 June 2022 and are signed on their behalf by: E Beasley **- 2 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **PROFIT AND LOSS ACCOUNT** ## **YEAR ENDED 31 DECEMBER 2021** |||**2021**|2020| |---|---|---|---| ||**Note**|**£**|£| |**REVENUE**||**72,960**|54,777| |Administrative expenses||**74,739**|61,337| |||-------------------------------|-------------------------------| |**LOSS ON ORDINARY ACTIVITIES BEFORE**|||| |**TAXATION**||**(1,779)**|(6,560)| |||--------------------------|--------------------------| |**LOSS FOR THE FINANCIAL YEAR**||**(1,779)**|(6,560)| |Balance brought forward||**6,734**|13,294| |||--------------------------|-------------------------------| |Balance carried forward||**4,955**|6,734| ||||==============| |||==============|==============| |||============|===| **- 3 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **BALANCE SHEET** ## **31 DECEMBER 2021** |||**2021**|**2021**|2020| |---|---|---|---|---| ||**Note**|**£**|**£**|£| |**FIXED ASSETS**||||| |Tangible assets|**3**||**1,782**|2,375| ||||--------------------------|--------------------------| |**CURRENT ASSETS**||||| |Stocks||**100**||100| |Cash at bank and in hand||**5,773**||6,839| |||--------------------------||--------------------------| |||**5,873**||6,939| |**CREDITORS: Amounts falling due**||||| |**within one year**|**4**|**2,700**||2,580| |||--------------------------||--------------------------| |**NET CURRENT ASSETS**|||**3,173**|4,359| ||||--------------------------|--------------------------| |**TOTAL ASSETS LESS CURRENT LIABILITIES**|||**4,955**|6,734| ||||==============|==============| ||||============|============| |**CAPITAL AND RESERVES**||||| |Proft and loss account|||**4,955**|6,734| ||||--------------------------|--------------------------| |**MEMBERS' FUNDS**|||**4,955**|6,734| ||||==============|==============| ||||============|============| The trustees of the Management Committee acknowledge their responsibilities for: (i) ensuring that the club keeps proper accounting records which comply with sections 75 and 76 of the Co-operative and Community Benefit Societies Act 2014 (the Act), (ii) establishing and maintaining a satisfactory system of its books of accounts, its cash holdings and all its receipts and remittances in order to comply with sections 75 and 76 of the Act, and (iii) preparing financial statements which give a true and fair view of the state of affairs of the club as at the end of the financial year and of its profit for the financial year in accordance with the requirements of section 80, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the club. These accounts have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). These financial statements were approved by the Management Committee and authorised for issue on the 8 June 2022 and are signed on their behalf by: E Beasley Trustee Club Registration Number: 271139 **- 4 -** **CRANHAM COMMUNITY ASSOCIATION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 DECEMBER 2021** ## **1. ACCOUNTING POLICIES** ## **Basis of accounting** The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). ## **Cash flow statement** The Management Committee has taken advantage of the exemption in Financial Reporting Standard for Smaller Entities (effective April 2008) from including a Cash flow statement in the financial statements on the grounds that the club is small. ## **Turnover** Turnover represents monies received from various sources and activities generated by the association. ## **Fixed assets** All fixed assets are initially recorded at cost. ## **Depreciation** Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Property Improvements 25% Net Book Value Centre Equipment 25% Net Book Value Fixtures & Fittings 25% Net Book Value Office Equipment 25% Net Book Value ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. ## **Operating lease agreements** Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. **- 5 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 DECEMBER 2021** ## **1. ACCOUNTING POLICIES** _**(continued)**_ ## **Financial instruments** Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the Balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the Profit and Loss Account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. ## **2. OPERATING LOSS** Operating loss is stated after charging: |Operating loss is stated after charging:||| |---|---|---| ||**2021**|2020| ||**£**|£| |Trustees' remuneration|**–**|–| |Depreciation of owned fxed assets|**593**|792| ||==============|==============| ||==|==| **- 6 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 DECEMBER 2021** ## **3. TANGIBLE ASSETS** ||**Leasehol**|**Centre**|**Fixtures**|**Ofice**|| |---|---|---|---|---|---| ||**d**|**Equipme**|**&**|**Equipme**|| ||**Property**|**nt**|**Fittings**|**nt**|**Total**| ||**£**|**£**|**£**|**£**|**£**| |**COST**|||||| |**At**|||||| |**1 January 2021**|||||| |**and**|||||| |**31 December 202**|||||| |**1**|**8,026**|**3,231**|**21,042**|**1,953**|**34,252**| ||||==============||==============| ||==============|==============|==============|==============|==============| ||============|============|===|============|===| |**DEPRECIATION**|||||| |At 1 January 2021|**7,687**|**2,430**|**19,842**|**1,918**|**31,877**| |Charge for the|||||| |year|**85**|**200**|**300**|**8**|**593**| ||--------------------------|--------------------------|-------------------------------|--------------------------|-------------------------------| |**At**|||||| |**31 December 202**|||||| |**1**|**7,772**|**2,630**|**20,142**|**1,926**|**32,470**| ||||==============||==============| ||==============|==============|==============|==============|==============| ||============|============|===|============|===| |**NET BOOK VALUE**|||||| |**At**|||||| |**31 December 202**|||||| |**1**|**254**|**601**|**900**|**27**|**1,782**| ||==============|==============|==============|==============|==============| ||==|==|==|==|============| |At|||||| |31 December 2020|339|801|1,200|35|2,375| ||==============|==============|==============|==============|==============| ||==|==|============|==|============| |**CREDITORS:** **Amounts falling due within one year**|||||| |||||**2021**|2020| |||||**£**|£| |Other creditors||||**2,700**|2,580| |||||==============|==============| |||||============|============| ## **4. CREDITORS: Amounts falling due within one year** **- 7 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **MANAGEMENT INFORMATION** ## **YEAR ENDED 31 DECEMBER 2021** **The following pages do not form part of the statutory financial statements** **which are the subject of the accountants' report on page22222** . **- 8 -** ## **CRANHAM COMMUNITY ASSOCIATION** ## **DETAILED PROFIT AND LOSS ACCOUNT** ## **YEAR ENDED 31 DECEMBER 2021** |||**2021**|**2021**|2020| |---|---|---|---|---| ||**Note**|**£**|**£**|£| |**REVENUE**||||| |Membership subscriptions|||**2,926**|12| |Scrabble, darts, karate & games etc|||**366**|916| |Bowls subscriptions|||**1,108**|673| |Cofee bar|||**341**|322| |Room hire|||**43,324**|27,244| |Donations & gifts|||**14,895**|610| |Government covid grant|||**10,000**|25,000| ||||-------------------------------|-------------------------------| ||||**72,960**|54,777| |**OVERHEADS**||||| |Wages and salaries||**31,869**||22,038| |Rent||**17,000**||12,750| |Rates and water||**1,680**||1,840| |Light and heat||**3,673**||5,315| |Insurance||**722**||656| |Repairs and maintenance (allowable)||**9,098**||8,444| |Laundry & cleaning||**5,182**||3,342| |Telephone||**1,541**||986| |Printing, stationery and postage||**491**||2,442| |Sundry expenses||**130**||92| |Accountancy fees||**2,760**||2,640| |Depreciation||**593**||792| |||-------------------------------||-------------------------------| ||||**74,739**|61,337| ||||-------------------------------|-------------------------------| |**LOSS ON ORDINARY ACTIVITIES**|||**(1,779)**|(6,560)| ||||==============|==============| ||||==============|==============| ||||===|===| **- 9 -**