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2023-02-28-accounts

Charity registration number: 301794

The Crofton Community Association

Annual Report and Financial Statements

for the Year Ended 28 February 2023

The Crofton Community Association

Contents (continued)

Reference and Administrative Details 1 to 3
Trustees' Report 4 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 to 20

The Crofton Community Association

Reference and Administrative Details

Honorary President Mrs M Lawton,
Trustees Mr M Lewis, Chairman
Mrs J Holden, Hon Secretary
Ms A Hayes
Mr A Lewis
Cllr S Dugan, FBC Representative
Mr J Forrest

Page 1

The Crofton Community Association

Reference and Administrative Details (continued)

Full Council

Ms A Hayes

Mrs J Holden, Honorary Secretary

Mr J Forrest Mr A Lewis Mr M Lewis, Chairman

Mrs V Melville

Mrs V Pugh

Mr M Williams

Mrs J Wingate

Cllr S Dugan, FBC Representitive (re-appointed May 2020)

Mr A Hathaway

Cllr P Hayre

Principal Office Crofton Community Centre Stubbington Lane Stubbington Fareham PO14 2PP

Charity Registration Number 301794

Page 2

The Crofton Community Association

Reference and Administrative Details (continued)

Bankers United Trust Bank 1 Ropemaker Street London EC2Y 9AW Hampshire Trust Bank 131 Finsbury Pavement London EC2A 1NT Barclays Bank Plc Fareham 67-69 West Street Fareham Hampshire PO16 0AW Unity Trust Bank Plc 9 Brindley Place Birmingham B1 2HB Cambridge & Counties Bank Limited Charnwood Court New Walk Leicester LE1 6TE Accountant/Bookkeeper J Humphry Associates Limited 11a Stubbington Green Fareham Hampshire PO14 2JG Auditor MMO Limited Chartered Accountants and Statutory Auditors Wellesley House 204 London Road Waterlooville Hampshire PO7 7AN Solicitors Churchers 12 High Street Fareham PO16 7BL

Page 3

The Crofton Community Association

Trustees' Report

The Crofton Community Association (CCA)

Annual Report and Financial Statements for the Year ended 28th February 2023

Trustees’ Report

Review of activities

With the appointment of our new Centre Manager, Nick Scott, in February 2022 we entered the new financial year with fresh momentum and the willingness to conduct a complete review of all our operations and practices. Several areas of improvement were recognised in Q1 and Nick along with the Staff and the blessing of the Management Committee set about implement changes and improvements in several areas. Key achievements as follows:

The above are just headlines of the progress made last year with some actions ongoing. The general tone has been one of consolidation and planning to build a stronger organisation in the future. We have started the journey to achieve this.

Page 4

The Crofton Community Association

Trustees' Report (continued)

Early in 2023 a joint working group made up of representatives from CCA and Fareham Borough Council (Communities Officer) was set up to look at the potential of development a joint project to improve the facilities in the Sports Pavilion (a building not on CCA’s current lease) and create a new ground floor room for the Centre’s use. After several meetings and an assessment of costs it was decided by trustees that the joint project should be paused. This decision was reached due to the complicated nature of the work required to take this project forward, the uncertainty about final costs (based on the last FBC estimate of approx. £600K+) and the declared position of Hammond Hall Trust's cap on any potential grant only matching CCA's budget. It was also agreed that we would not at this point want to earmark more than the previously agreed £100k of CCA funds. Our preference is to let FBC implement the necessary refurbishments and improvements to the Sports Pavilion facilities to allow it to continue to be used by the community groups and sports teams. We have requested that FBC maintain a close dialogue with CCA about these plans as they will have an impact on our current daily operations. Once the repair work is done, we would welcome another opportunity to revisit the ground floor room opportunity and discuss whether there is a case for CCA to include the Sports Pavilion under a new lease arrangement when the current lease is due to be renegotiated in 2025.

The Management Committee and the Full Council extend their grateful thanks to the Centre Manager and all the staff for all their hard work during this past year and we look forward to supporting them throughout 2023 as they continue to implement a much-needed programme of change. Trustees would also like to thank FBC for their continued support.

Future Developments

The plan for 2023 is to continue to use some of our capital to further modernise the centre and expand the service and facilities we can offer to the community. This may include opening the centre on a Saturday.

A major aim for the charity in the next 12 months is to propose a transition from our current charity “Association” status to a “Charitable Incorporated Organisation” (CIO), following the guidelines laid down by the Charities Commission (CC). This will have significant benefits to a charity of our size and will enhance our governance and provide greater protection and sustainability for our customers, staff, volunteers, and trustees. It is intended to put a motion forward at the AGM in May 2023 for a CIO structure proposal to be considered. We have consulted and taken advice from the CC, FBC and “One Community” representatives about this change and they are all very supportive.

In the coming year we will begin to see the fruition of some of the achievements and investments highlighted above, to celebrate where we have come from, and to be able to promote a stronger organisation capable of serving and providing a focus for the communities of Stubbington and Hill Head for the next generations.

Full Council

The Full Council is elected annually, and the last election was on 30th May 2022. In accordance with the Association’s constitution, all the above (excluding the FBC Representative), will stand down at the next Annual General Meeting on 15th May 2023.

The association has leases held in the names of the Holding Trustees Mr A Burton; Mr P E J Barber.

Page 5

The Crofton Community Association

Trustees' Report (continued)

Summary of Financial Position

Having managed the financial challenges of the pandemic lockdown period with care, we emerged at the beginning of the financial year in good shape. A conscious decision was taken by trustees early in the year that we should look at ways of investing in the centre, prioritising fabric improvements and modernising systems, upgrading IT hardware and software, slim-lining processes, and updating policies. The overall goal being to professionalise our organisation and make sure we were meeting our legal requirements. Getting a focus on eco-friendly sustainability challenges was also something we need to plan for.

Our general running costs for the year have increased along with the national trend of increased inflation. Gas and electricity costs have increased hugely this year compared to 2021, although we have been eligible for some government relief through the winter period. We also had to settle a breach of contract claim from an energy consultancy company for the sum of £8,000 in the latter part of 2022. Legal advice was sought before making the settlement.

We have made good progress in several areas this year, as highlighted in the review of activities section above and have so far invested £25,453 in improvements. As can be seen from the audited accounts we remain in a robust financial position with an overall Balance of £468,497. We have a good level of reserves (savings) – with a proportion of it already designated for activities. This should allow us to continue to invest in the Centre for the foreseeable future. However:

Financial Challenges for the year ahead

The financial statements show £468,497.

The Management Committee has reviewed the requirements over the next 12 months and are satisfied that there are sufficient resources bearing in mind future income and expenditure.

Page 6

The Crofton Community Association

Trustees' Report (continued)

Reserve Policy

As previously agreed by the Management Committe. £113,700 is set aside in general funds that will cover:

The Crofton Community Association also has designated funds for specific purposes.

The values of General and Designated funds are reviewed annually and will never be less than three months expenditure in total.

Risk Factors

The Management Committe discuss major risks to which the charity might be exposed to ensure that mitigation action can be taken in a timely manner should a risk impact.

Significant financial risk contingencies are broadly covered in the Reserves Policy. During the next 12 months a full review of all risks and mitigations will be undertaken and a comprehensive costed risk register will be drawn up. This will be used to review the Reserves Policy again in 2023.

Page 7

The Crofton Community Association

Independent Examiner's Report to the trustees of The Crofton Community Association

I report to the trustees on my examination of the accounts of The Crofton Community Association for the year ended 28 February 2023.

Responsibilities and basis of report

As the charity trustees of The Crofton Community Association you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the The Crofton Community Association's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material 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 Crofton Community Association as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting 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 accounts to be reached.

...................................... Gillian McIntosh Chartered Accountants and Statutory Auditors

Wellesley House 204 London Road Waterlooville Hampshire PO7 7AN

Date:.............................

Page 8

The Crofton Community Association

Statement of Financial Activities for the Year Ended 28 February 2023

Note
Income and Endowments from:
Charitable activities
2
Investment income
3
Other income
4
Total Income
Expenditure on:
Charitable activities
5
Total Expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16
Note
Income and Endowments from:
Charitable activities
2
Investment income
3
Other income
4
Total Income
Expenditure on:
Charitable activities
5
Total Expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
£
196,911
1,104
16,830
214,845
(242,721)
(242,721)
(27,876)
496,373
468,497
Unrestricted
£
158,309
2,228
63,605
224,142
(189,044)
(189,044)
35,098
461,275
496,373		 Total
2023
£
196,911
1,104
16,830
214,845
(242,721)
(242,721)
(27,876)
496,373
468,497
Total
2022
£
158,309
2,228
63,605
224,142
(189,044)
(189,044)
35,098
461,275
496,373

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 16.

The notes on pages 11 to 20 form an integral part of these financial statements. Page 9

The Crofton Community Association

(Registration number: 301794) Balance Sheet as at 28 February 2023

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
14
Creditors: Amounts falling due within one year
15
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
16		 2023
£
70,253
10,221
396,613
406,834
(8,590)
398,244
468,497
468,497
468,497		 2022
£
61,429
6,770
436,029
442,799
(7,855)
434,944
496,373
496,373
496,373

The financial statements on pages 9 to 20 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Mr M Lewis Trustee

The notes on pages 11 to 20 form an integral part of these financial statements. Page 10

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Crofton Community Association meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Investment income

Investment income is recongnised on a receivable basis.

Charitable activities

Income from charitable activities includes income recognised as earned (as the related goods or services) under contract.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including preparation and examination of the accounts, bank charges and the cost of any legal advice to trustees' on governance or constitutional matters.

Page 11

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £45.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Computer equipment 33% straight line
Fixtures and fittings 25% straight line
Equipment 20% straight line
Leasehold improvements 5% straight line
Property works 10% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business and are measured at cost, reviewed annually for impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade and other creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities unless there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

They are recognised initially at the transaction price.

Page 12

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Pensions and other post retirement obligations

The costs arising on the charity's defined contribution schemes are recognised in the SOFA in the period in which the related service is provided.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

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 charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 13

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 14

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

2 Income from charitable activities

Hammond Wing
Sports Hall Wing
Crofton Hall Link Wing
Subscriptions		 Unrestricted
funds
General
£
71,242
57,140
50,188
18,341
196,911		 Total
2023
£
71,242
57,140
50,188
18,341
196,911		 Total
2022
£
65,879
39,043
35,210
18,177
158,309
Total
2023
£

3 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
4
Other income
Other income
Government Grant
Fareham Borough Council recharges		 Unrestricted
funds
General
£
1,104
Unrestricted
General
£
269
4,000
12,561
16,830		 Total
2023
£
1,104
Total
2023
£
269
4,000
12,561
16,830		 Total
2022
£
2,228
Total
2022
£
105
56,931
6,569
63,605

Page 15

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

5 Expenditure on charitable activities

Note
Direct costs of charitable activities
Depreciation, amortisation and other similar
costs
Staff costs
Governance costs including examiners fees		 Unrestricted
General
£
64,149
22,019
142,269
14,284
242,721		 Total
2023
£
64,149
22,019
142,269
14,284
242,721		 Total
2022
£
39,196
4,468
142,978
2,402
189,044

Page 16

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

6 Analysis of governance and support costs

Governance costs

Audit fees
Audit of the financial statements
Legal fees
Other governance costs		 Unrestricted
funds
General
£
3,078
9,936
1,270
14,284		 Total
2023
£
3,078
9,936
1,270
14,284		 Total
2022
£
1,174
50
1,178
2,402

7 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Audit fees
Depreciation of fixed assets		 2023
£
3,078
22,019		 2022
£
1,174
4,468

8 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

Page 17

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

9 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
£
130,302
9,704
2,263
142,269		 2022
£
134,562
6,004
2,412
142,978

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Charitable activities - Full time staff
Charitable activities - Part time staff		 2023
No
4
4
8		 2022
No
4
4
8

No employee received emoluments of more than £60,000 during the year

10 Auditors' remuneration

Audit of the financial statements

2023 2022
£ £
3,078 1,174

Page 18

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

12 Tangible fixed assets

12 Tangible fixed assets
Cost
At 1 March 2022
Additions
At 28 February 2023
Depreciation
At 1 March 2022
Charge for the year
At 28 February 2023
Net book value
At 28 February 2023
At 28 February 2022
13 Debtors
Trade debtors
Prepayments
14 Cash and cash equivalents
Cash at bank		 Land and
buildings
£
73,748
25,454		 Furniture and
equipment
£
128,814
5,389
134,203
97,610
9,096
106,706
27,497
31,204
2023
£
4,859
5,362
10,221
2023
£
396,613		 Total
£
202,562
30,843
233,405
141,133
22,019
163,152
70,253
61,429
2022
£
4,184
2,586
99,202 134,203
43,523
12,923		 97,610
9,096
56,446 106,706
42,756 27,497
30,225 31,204
2023
£
4,859
5,362
10,221
2023
£
396,613
6,770
2022
£
436,029

Page 19

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

15 Creditors: amounts falling due within one year

Trade creditors
Other creditors
Accruals
16 Funds
Unrestricted funds
General
General Funds
Designated
Designated Funds
Reserved Funds
Total funds
Unrestricted funds
General
General Funds
Designated
Designated Funds
Reserved Funds
Total funds		 Balance at 1
March 2022
£
217,173
165,500
113,700
279,200
496,373
Balance at 1
March 2021
£
182,075
165,500
113,700
279,200
461,275		 Incoming
resources
£
214,845
-
-
-
214,845
Incoming
resources
£
224,142
-
-
-
224,142		 2023
£
355
205
8,030
8,590
Resources
expended
£
(242,721)
-
-
-
(242,721)
Resources
expended
£
(189,044)
-
-
-
(189,044)		 2022
£
1,103
-
6,752
7,855
Balance at 28
February 2023
£
189,297
165,500
113,700
279,200
468,497
Balance at 28
February 2022
£
217,173
165,500
113,700
279,200
496,373

Page 20