**Charity registration number 274134**
**FRINTON-ON-SEA COMMUNITY ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr R G Peters|(Appointed 26 March 2022)|
|---|---|---|
||Mr D W Walby|(Appointed 4 April 2022)|
||Ms P Keevil|(Appointed 4 April 2022)|
||Ms V Williams|(Appointed 29 April 2023)|
||Mr B Martin|(Appointed 29 April 2023)|
||Ms D McDonnell|(Appointed 29 April 2023)|
|**Charity number**|274134||
|**Principal address**|Soken House||
||The Triangle Shopping Centre||
||Rochford Way||
||Frinton-on-Sea||
||CO13 0AU||
|**Independent examiner**|Daniel Insley BA ACA||
||The Old Exchange||
||64 West Stockwell Street||
||Colchester||
||Essex||
||CO1 1HE||
|**Bankers**|The Co-operative Bank||
||Albert Hall Building||
||High Street||
||Colchester||
||Essex||
||CO1 1JW||
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Independent examiner's report|9|
|Statement of financial activities|10|
|Balance sheet|11|
|Notes to the financial statements|12 - 20|
## **FRINTON-ON-SEA 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 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 Association is established to benefit the residents of Frinton on Sea and its neighbourhood, currently stated within the Constitution as the Tending District.
The Association is organised as an independent unincorporated association of residents with an elected managing committee. The main activities of the Association are:
- Providing and managing a Community Centre based in the Association’s freehold
- premises known as Soken House
The Constitution of the Association states that the objects of the Association shall be:
_(a) To promote the benefit of the inhabitants of the_ _**Tendring District** (hereinafter called "the area of benefit") without distinction of sex or of political, religious or other opinions by associating with the local authorities, voluntary organisations and inhabitants in a common effort to advance education and to provide facilities in the interest of social welfare for recreation and leisure-time occupation with the object of improving the conditions of life for the said inhabitants._
_(b) To establish or to secure the establishment of a Community Centre (hereinafter called "the Centre") and to maintain and manage, or to co-operate with any local statutory body in the maintenance and management of, such a Centre for activities promoted by the Association and its constituent bodies in furtherance of the above objects._
_The Association shall be non-party in politics and non-sectarian in religion._
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Association should undertake.
- 1 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Association makes available meeting rooms in Soken House to individuals and organisations in Frinton on Sea and its neighbourhood. Additionally, it provides refreshment facilities for individuals and organisations using Soken House. The Association has over 600 individual local members and has been used by many organisations and individuals on a regular basis for a wide range of meetings, activities, and leisure pursuits throughout the year. The management team consists of individuals living locally who thus are well placed to identify initiatives to meet the needs of the local community.
## Facilities available
Five rooms and two kitchen areas are available at the Centre for hire by any individual or organisation in accordance with the standard hiring agreement and scale of charges adopted for the year.
Tea bar (supported by our volunteer groups) Licenced Bar (Operated by Frinton Community Services Ltd)
Toilet facilities have recently been upgraded to include Baby Change facilities on the ground floor
Frinton-on-Sea Community Association (FCA) volunteer led activity groups operating at the centre in the year.
Activities organised at the Centre by Association volunteers during the year included:
Art workshops (3 groups) Poetry reading Bingo Scrabble Bridge Board games Carpet bowls Recorded music Darts Table tennis (2 groups) Folk dancing Whist Learn to play Bridge Chess Needlecraft Cribbage
Attendance at most of these activities was slow to increase following the recent COVID pandemic and associated restrictions but, as the year has progressed, numbers attending these activities have increased and at the end of the year, income from these activities was continuing to grow and look very promising for the forthcoming year.
- 2 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
Regular paid hirer led activity groups and services operating at the centre in the year.
The following organisations use the Centre regularly for their meetings and activities:
Frinton Residents’ Association N E Essex Adult Community Learning Frinton Art Society Tai Chi with Paul Beddington Frinton Bridge Club Walton Flower Club Frinton Philatelic Society Weightwatchers Hartbeeps Baby & Toddler Classes West Water Country Music Club Holy Trinity Church Parashakti Yoga Keep Fit with Sonya Diss Core Vitality Yoga In Stitches sewing group Frinton Community Singers Calibrating U – CIC Moo Music
Hire activities at the centre were slow to increase following the recent COVID pandemic and associated restrictions but, as the year has progressed, hire income and activity bookings have substantially increased and at the end of the year were continuing to grow and look very promising for the forthcoming year.
The management team are actively negotiating to provide further activity groups specifically for children and young families, with a view to developing the activities available at the centre for younger members of our community. This will continue into the new year.
FCA supported health & welfare groups and services operating at the centre in the year.
Active steps have been taken by the management team during the year to encourage not-for-profit and charitable local community groups to hold activities, meetings and clinics at Soken House with a view to developing the community resources available at the centre. These include well known national support services and local not-forprofit and charitable organisations
These groups are now meeting regularly at the centre and provide valuable additional resources to our local community and members. They are supported by the Association with meeting space made available free of charge. Additional similar support groups are expected to add to this list in the forthcoming year.
NHS Diabetes Support Services Christians against Poverty Debt counselling Citizens Advice Bureau Community Volunteer services Tendring CVST Older Persons Forum Essex Police Youth Services Affiliated groups operating in the year.
The number of constituent groups affiliated to the Association has been reduced and now stands at one group as follows:
Tendring Apex Club (Holidays & outings)
- 3 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## Entertainment events held in the year.
Regular entertainment events have been held at the centre throughout the year and many have been well supported. However, some events have produced disappointing attendances and, in some cases, resulted in their being loss making and subsidised by the Association. As a result, a small number of events were cancelled due to poor ticket sales making further losses likely. On a positive note, many of the events were well attended and provided a sizeable stream of income to the Association. Plans are currently in place for the new year’s schedule of events, including some new and exciting changes to the usual events. We would encourage all our members to support these events as without this, to avoid the Association facing further losses on such events, their future could be at risk.
The entertainment events held this year include:-
|Regular monthly Quiz nights|12 held this year.|
|---|---|
|Regular Live entertainment in the lounge|10 held this year.|
|Discos and recorded music events in the main hall 5 held this year.||
|Live bands and singers in the main hall|12 held this year.|
In addition, we held a clairvoyant night, race night and similar fun nights many of which were very well supported and due to popular request will be returning in the new year.
Halloween saw the first in a planned series of discos specifically for children, with a view to developing the activities available at the centre for younger members of our community. This event was exceptionally well received with around 100 children and their parents/carers in attendance.
## **Achievements and performance**
As can be seen from the statements attached, overall income for the Association has increased substantially this year and the final accounts when published after examination by our newly appointed accountants are expected to show a healthy trading surplus.
Whilst membership fees have remained largely static since last year, income from room hire and FCA volunteer led activity groups and general fundraising activities have increased substantially. We are also now receiving regular monthly contributions to the costs of operating the centre by way of a fixed service charge from our subsidiary company Frinton Community Services Limited (FCS) and we continued to receive rental income from EE for the mast on our roof.
The licensed bar at Soken House is operated by FCS, a wholly owned trading company. Profits not needed to be retained in the company are paid over at the year end to the Association as a donation. The donation made to the Association by FCS this year amounts to £Nil (2021: £Nil).
As can also be seen from the accounts attached, the total annual operating costs for the Association have also increased and now stand at around £2,200 per week. This is a sizeable ongoing expenditure and will require continued active management and monitoring if the positive trading results for this year are to be maintained and costs met within the charities income and resources.
- 4 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
To assist in this and improve the tools available to the management team for ongoing real time financial monitoring and reporting to aid financial planning and decision making; substantial investment has been made this year to put in place new computerised hire management software, CMS club management software and Electronic Point of Sale (EPOS) tills and electronic membership card recognition and reporting systems. These have replaced the outdated and inefficient manual paper-based record systems on which the Association has previously had to rely.
The hire management system has been in place since September and is now showing substantial benefits including improved marketing and sales, with the new club management system secured and commissioned ready to go into live operation at the 1[st] January 2023 ready for the new financial year. This new system will immediately offer substantial benefits to the Association including differential pricing for members and non-members activated at the tills by the simple touch of a card. It is anticipated that this will result in further improved sales figures and efficiencies, plus the ability to react quickly, leading to increased profitability across the whole range of the Association's activities.
There now remains one affiliated FCA activity group operating independently but overseen by the FCA management committee, FCA Apex. The organisation has independent organisers and their own bank account. At the 31 December 2021 the Tendring Apex Club reported a bank balance of £5,912.09 with a cumulative excess profit of £Nil.
## **Financial review**
## Grants received this year
The total value of grants received this year is £25,750 of which £23,000 are restricted for specific capital refurbishment projects and all such funds are ring-fenced accordingly.
The major items of capital expenditure that will be met by these grants are a new low energy lighting installation throughout the premises estimated at £10,000 and for which tenders are in progress with a view to works being completed early in the new year. The replacement of the flooring on the first-floor corridors and stairwell, approximately £6,500 and for essential fire safety improvements which after further risk assessment have been revised and are in the final stages of tender. Appointment of suitably accredited contractors has been confirmed with works now expected to commence early in the new year at a cost of around £8,000 with the completed works to be signed off by local authority building control. All items of expenditure were approved by the management committee and where appropriate two or more estimates obtained.
## Reserves policy
The management committee has examined the Association's requirements for reserves in light of the main risks to the Association. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the Association should be between three and six months of the expenditure. Budgeted expenditure for 2023 is £125,000 (2021: £115,000) and therefore the existing target for the reserves of £50,000 (2021: £50,000) in general funds is considered to remain adequate. The reserves are needed to meet the working capital requirements of the Association and the management committee are confident that at this level they would be able to continue the current activities of the Association if a significant drop in funding occurred until alternative sources of funding were obtained. December 2022 liquid reserves in unrestricted funds amount to £71,244 (2021: £56,088).
## Principal funding sources
The principal funding resources of the Association are from the hire of rooms to local organisations. It is intended that these hire charges be sufficient to cover all expenditure incurred in providing the Centre. The improvement of facilities is funded from subscriptions, donations, grants and fundraising. A full programme of fundraising activities is planned. As all running costs of the centre continue to rise and we have some large expenditure items needed, we will be continuously monitoring and reviewing all aspects of our funding and expenditure on an ongoing basis.
- 5 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## Investment policy
Aside from retaining a prudent amount in reserves each year most of the Association’s funds are to be spent in the short term and so there are few funds for long term investment. Any surplus funds are placed on deposit so that they are readily available to meet any funding requirements that may arise.
## Risk management
The Trustees have a risk management strategy which comprises:
- An annual review of the principal risks and uncertainties that the Association and its subsidiary FCS face;
- 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 Association should those risks materialise.
This work has identified that financial sustainability is the major financial risk for both the Association and its subsidiary. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank, and active management of trade debtors and creditors balances to ensure sufficient working capital by the Association and its subsidiary company.
Attention has also been focused on non-financial risks arising from fire, health and safety matters and health, welfare and hygiene. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff and volunteers working in these areas.
Insurance cover has been put in place where appropriate to cover the risks faced by the Association.
The FCA has served the community for 40 years and fulfils the demands required. There is no reason not to continue the facilities provided.
## **Plans for future periods**
We are continuing to seek funding and grant opportunities for several major capital, equipment and infrastructure projects including replacement of our lift, upgrading of our computer systems and further building improvements along with a very ambitious plan for installation of a major solar power and battery installation. In addition, we plan to extend our youth-based activities at the centre and will be seeking available operating cost grant funding to pursue these plans. These will all be developed into the new year and progress reported at future business management meetings.
## **Structure, governance and management**
The Association was constituted at a public meeting held on the 21 April 1977 and is registered with the Charity Commission No. 274134.
|The Trustees who served during the year and up to the date of signature of the financial statements were:|The Trustees who served during the year and up to the date of signature of the financial statements were:|
|---|---|
|Mr R G Peters|(Appointed 26 March 2022)|
|Mr D W Walby|(Appointed 4 April 2022)|
|Ms P Keevil|(Appointed 4 April 2022)|
|Ms V Williams|(Appointed 29 April 2023)|
|Mr B Martin|(Appointed 29 April 2023)|
|Ms D McDonnell|(Appointed 29 April 2023)|
- 6 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Management Committee**
The following were members of the Management Committee during all or part of the year:
Pamela Keevil Elected 26 March 2022 Dennis Walby Elected 26 March 2022 Keith Green Elected 26 March 2022 Deborah Stebbing Elected 26 March 2022 Bob Peters Elected 26 March 2022 Joyce Emms Elected 26 March 2022
Jenny Edwards Elected 26 March 2022 Resigned 12 October 2022 Sean Nailard Elected 26 March 2022 Resigned 21 April 2023 Fred Bird Elected 26 March 2022 Resigned 22 June 2022 Adrian Cranmer Elected 26 March 2022 Dismissed 9 January 2023 Peter Jackson Elected 26 March 2022 Resigned 9 November 2022 Tom Peacock Elected 26 March 2022 Resigned 20 April 2022 Anthony Rayner Elected 26 March 2022 Resigned 20 April 2022
## **Senior Management Team**
Pamela keevil - President Elected 26 March 2022 Dennis Walby - Hon. Secretary Elected 26 March 2022 Keith Green - Hon. Treasurer Elected 9 November 2022 Jenny Edwards - Hon Treasurer Elected 26 March 2022 - Resigned 12 October 2022
Full Members of the Management Committee are elected annually at the Annual General Meeting which is held at Soken House on a convenient Saturday in March/April each year.
The members of the Management Committee are charity trustees for the purposes of charity law.
Whilst the Management Committee are responsible for policy, governance and decision making for the Association, the operation and administration of the Community Centre and Association activities is carried out largely by the employed Centre Manager and two part time administrative support staff, assisted by some 40 unpaid volunteers.
The first meeting of the newly elected Management Committee each year is treated as an induction meeting. In addition, all new Trustees are required to attend a formal in-house training session when their responsibilities as Charity Trustees are thoroughly explained and an induction to the activities, structures and governance of the Association and the legal and operational environment outlined.
- 7 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Association owns all the issued share capital of a trading company incorporated in the UK. (Frinton Community Services Limited – Registration number 2551086). This company operates a licenced members bar and lounge at Soken House which provides refreshment facilities at the Centre, paying over its surplus profits to the Association as a donation. The details of the transactions between the Association and the trading company are more fully described in the notes to the Financial Statements that accompany this report.
The Trustees' report was approved by the Board of Trustees.
Ms P Keevil
**Trustee**
21 October 2023
- 8 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF FRINTON-ON-SEA COMMUNITY ASSOCIATION**
I report to the Trustees on my examination of the financial statements of Frinton-on-Sea 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.
## **Daniel Insley BA ACA**
The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE
Dated: 21 October 2023
- 9 -
## **FRINTON-ON-SEA 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 and endowments from:**
Donations and legacies
**3**
4,263
23,000
Charitable activities
**4**
89,752
-
Other trading activities
**5**
18,138
-
Investments
**6**
1,009
-
Other income
**7**
10,216
-
**Total income**
123,378
23,000
**Expenditure on:**
Raising funds
**8**
6,390
-
Charitable activities
**9**
102,071
-
**Total expenditure**
108,461
-
**Net income/(expenditure) for the year/**
**Net movement in funds**
14,917
23,000
Fund balances at 1 January 2022
209,326
-
**Fund balances at 31 December 2022**
224,243
23,000|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
27,263
30,523
89,752
51,619
18,138
3,698
1,009
7
10,216
6,256
146,378
92,103
6,390
1,823
102,071
105,782
108,461
107,605
37,917
(15,502)
209,326
224,828
247,243
209,326|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 10 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**14**
Investments
**15**
**Current assets**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**17**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**18**
Unrestricted funds|**2022**
**£**
6,280
93,806
100,086
(5,842)|**£**
152,997
2
152,999
94,244
247,243
23,000
224,243
247,243|**2021**
**£**
5,170
65,907
71,077
(14,989)|**£**
153,236
2|
|---|---|---|---|---|
|||||153,238
56,088|
|||||209,326|
|||||-
209,326|
|||||209,326|
The financial statements were approved by the Trustees on 21 October 2023
Ms P Keevil
**Trustee**
- 11 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
Frinton-on-Sea Community Association is a charity and is registered with the Charity Commission, No. 274134.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Association's [governing document], 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.
## **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.
- 12 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
**(Continued)**
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.
## **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:
Freehold land and buildings Nil Fixtures and fittings 10% 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 Association. 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 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).
## **1.9 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.
- 13 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
**(Continued)**
## **1.10 Financial instruments**
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 cost less impairment at the balance sheet date, with gains and losses being recognised within profit and loss.
Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.
## **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.
## **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**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
1,513
-
Grants receivable
2,750
23,000
4,263
23,000|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
1,513
-
25,750
30,523
27,263
30,523|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
1,513
-
25,750
30,523
27,263
30,523|
|---|---|---|
|||30,523|
- 14 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**4**|**Charitable activities**|||
|---|---|---|---|
|||**Charitable**|
**Charitable**|
|||**Income**|**Income**|
|||**2022**|**2021**|
|||**£**|**£**|
||Room hire|29,083|22,970|
||Member subscriptions|20,418|18,904|
||Member activity fees|18,340|-|
||Admin charges to FCS|21,911|9,745|
|||89,752|51,619|
|**5**|**Other trading activities**|||
|||**Unrestricted **|**Unrestricted**|
|||**funds**|**funds**|
|||**2022**|**2021**|
|||**£**|**£**|
||Fundraising events|18,138|3,698|
|**6**|**Investments**|||
|||**Unrestricted **|**Unrestricted**|
|||**funds**|**funds**|
|||**2022**|**2021**|
|||**£**|**£**|
||Interest receivable|1,009|7|
|**7**|**Other income**|||
|||**Unrestricted **|**Unrestricted**|
|||**funds**|**funds**|
|||**2022**|**2021**|
|||**£**|**£**|
||Other income|10,216|6,256|
- 15 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **8 Raising funds**
|**9**|**Unrestricted Unrestricted**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
Fundraising and publicity
Other fundraising costs
4,340
1,344
Trading costs
Other trading activities
2,050
479
6,390
1,823
**Charitable activities**|**Unrestricted Unrestricted**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
Fundraising and publicity
Other fundraising costs
4,340
1,344
Trading costs
Other trading activities
2,050
479
6,390
1,823
**Charitable activities**|
|---|---|---|
|||479|
|||1,823|
||||
||**Charitable**|
**Charitable**|
|---|---|---|
||**Expenditure**|**Expenditure**|
||**2022**|**2021**|
||**£**|**£**|
|Staff costs|26,354|29,288|
|Contract cleaning and caretaking|37,037|32,900|
|Room hire, rates and water|922|1,748|
|Heating and lighting|10,354|8,235|
|Building service charge|6,057|4,831|
|Insurances|4,846|5,259|
|Property maintenance including hygiene|10,658|17,962|
|Sundry expenses|3,755|3,794|
|Depreciation|239|265|
||100,222|104,282|
|Share of governance costs (see note 10)|1,849|1,500|
||102,071|105,782|
- 16 -
**FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **10 Support costs**
|**Support costs Governance**
**costs**
**£**
**£**
Accountancy
-
1,800
Legal and professional
-
49
-
1,849
Analysed between
Charitable activities
-
1,849|**2022**
**£**
1,800
49
1,849
1,849|**2021**
**£**
600
900|
|---|---|---|
|||1,500|
|||1,500|
## **11 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Association during the year.
## **12 Employees**
The average monthly number of employees during the year was:
||**2022**|**2021**|
|---|---|---|
||**Number**|**Number**|
||2|1|
|**Employment costs**|**2022**|**2021**|
||**£**|**£**|
|Wages and salaries|26,235|28,733|
|Other pension costs|119|555|
||26,354|29,288|
There were no employees whose annual remuneration was more than £60,000.
## **13 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.
- 17 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**14**|**Tangible fixed assets**||||
|---|---|---|---|---|
|||**Freehold land**|**Fixtures and**|**Total**|
|||**and buildings**|**fittings**||
|||**£**|**£**|**£**|
||**Cost**||||
||At 1 January 2022|150,848|22,517|173,365|
||At 31 December 2022|150,848|22,517|173,365|
||**Depreciation and impairment**||||
||At 1 January 2022|-|20,129|20,129|
||Depreciation charged in the year|-|239|239|
||At 31 December 2022|-|20,368|20,368|
||**Carrying amount**||||
||At 31 December 2022|150,848|2,149|152,997|
||At 31 December 2021|150,848|2,388|153,236|
|**15**|**Fixed asset investments**||||
|||||**Other**|
|||||**investments**|
||**Cost or valuation**||||
||At 1 January 2022 & 31 December 2022|||2|
||**Carrying amount**||||
||At 31 December 2022|||2|
||At 31 December 2021|||2|
||||**2022**|**2021**|
||Other investments comprise:|**Notes**|**£**|**£**|
||Investments in subsidiaries|**21**|2|2|
- 18 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**16**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Prepayments and accrued income
**17**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals and deferred income|**2022**
**£**
2,743
3,218
319
6,280
**2022**
**£**
902
3,258
-
2
1,680
5,842|**2021**
**£**
1,820
-
3,350|
|---|---|---|
|||5,170|
|||**2021**
**£**
2,215
5,881
6,293
-
600|
|||14,989|
Deferred income is included in the financial statements as follows:
Memberships received in advance £1,758 (2021: £4,381) Mast income received in advance £1,500 (2021: £1,500)
## **18 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**||**Movement**||
|---|---|---|---|---|
||**in funds**||**in funds**||
||**Incoming**|**Balance at**|**Incoming**|**Balance at**|
||**resources**|**1 January 2022**|**resources**|**31 December**|
|||||**2022**|
||**£**|**£**|**£**|**£**|
|Tendring Community Fund|-|-|15,000|15,000|
|Tendring District Council|-|-|4,000|4,000|
|The Essex Association of Local Councils|-|-|4,000|4,000|
||-|-|23,000|23,000|
The above grants have been restricted by the funders to be used for specific capital refurbishment projects.
- 19 -
## **FRINTON-ON-SEA COMMUNITY ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **18 Restricted funds**
**(Continued)**
Following the year end, the grant received from Essex Association of Local Councils for £4,000 has been asked to be repaid since the funds were not spent by the deadline of 31 March 2023. At the year end, there was a reasonable expectation that the grant terms would be fulfilled and therefore has been classified as a nonadjusting event in the accounts to 31 December 2022. The grant will be shown as repaid in the current year to 31 December 2023.
## **19 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31 December 2022 are
represented by:
Tangible assets
152,997
-
Investments
2
-
Current assets/(liabilities)
71,244
23,000
224,243
23,000|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
152,997
153,236
2
2
94,244
56,088
247,243
209,326|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
152,997
153,236
2
2
94,244
56,088
247,243
209,326|
|---|---|---|
|||209,326|
## **20 Related party transactions**
There were no disclosable related party transactions during the year (2021 - none).
## **21 Subsidiaries**
Details of the Association's subsidiaries at 31 December 2022 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Frinton Community Services|
England and|Hospitality|Ordinary|100.00|
|Limited|Wales||||
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Frinton Community Services|||
|Limited|12,162|24,695|
- 20 -