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2024-02-29-accounts

The Crofton Community Association

Contents (continued)

Reference and Administrative Details 1 to 3
Trustees' Report 4 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 19

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

Trustees’ Report

Review of activities

The past year has been a continued resumption of getting back to normal after the disruptions of the previous couple of years. Membership levels have remained steady, and we have been able to welcome some new, regular, user groups to the centre. We have seen some significant cost challenges and unplanned emergent maintenance during the year with utility bills hitting the finances hard over the winter months and the unexpected cost of replacing the boilers and associated control system in the Hammond Wing. We have been working closely with FBC on a plan to replace the heating system supplying the Sports Hall and Pavilion areas and we are hopeful that this FBC led and funded project will be completed before the winter months set in.

After much effort, good progress has been made towards applying to the Charity Commission (CC) to become a Charitable Incorporated Organisation (CIO). The CIO Working Group have continued to meet monthly and reported progress to the Trustees. With legal support provided by Trethowan’s Solicitors we were able to call an EGM on 29th February 2024 at which three CIO related resolutions were presented and unanimously approved

Our lead Trustee for CIO is Mr Gordon Ross and he has been in regular contact with the CC reporting progress and taking advice as well as liaising with solicitors. We anticipate submitting the formal application in the next month with the aim of dissolving the CCA charity by the end of 2024 and standing up the new CIO thereafter. The CIOWG will be continuing to act as a steering committee for delivering the transition plan of actions. We are all grateful to Gordon for his leadership and expertise in getting us through this process so far and for what lies ahead.

The Management Committee and the Full Council extend their grateful thanks to the Centre Manager and all the staff for all their dedicated work during this past year, much has been achieved in a testing period and we look forward to supporting them in the busy year ahead. Trustees would also like to thank FBC for their continued support and the good communication lines that exist between us and them.

Future Developments

The plan for 2024/25 is to expand our offering to the local community and continue to improve the environment and facilities for users to enjoy in the most cost-effective way. The Trustees will be very focussed on achieving CIO status and to making sure the transition and assets transfer plans are delivered appropriately and in a timely manner. We will also continue to keep a close eye on the finances as we manage a forecast deficit budget for the next 24 months.

Full Council and Management Committee (Trustees)

The Full Council is elected annually, and the last election was on 15th May 2023. The newly elected Full Council then elect the Management Committee (Trustees) in accordance with the Association’s constitution.

As our application for CIO is in progress and the CCA is in the dissolution phase we will enact Chapter 16.2 of the Constitution and “The existing Management Committee will remain in office to be responsible for the winding up of affairs of The Association”. This will allow for continuity and a smooth transition to the new entity. Three of the existing CCA Trustees will stand down to become the first Trustees of the new CIO. They are: Mr Gordon Ross, Mrs Kay Mandry and Mr Jim Forrest.

Page 4

The Crofton Community Association

Trustees' Report (continued)

The association has leases held in the names of the Holding Trustees Mr A Burton; Mr P E J Barber. There will not be a requirement for Holding Trustees once we are a CIO as the lease will be novated to the names of the first Trustees of the new charity. The existing Holding Trustees have been informed in writing of this change. The leases are due for renewal in 2025 and we expect the negotiations with FBC to commence in the first quarter of next year.

Summary of Financial Position

Finances remain robust in a year of continued inflationary impacts on running costs. The management of utility costs has been challenging with gas and electricity costs totalling £45,584 by year end although some of this was rebated by FBC. Income from room rental and subscriptions totalled £205,869 which was up slightly compared to the previous year’s figures (£196,911).

We had forecast a deficit of £25k for year-end but it turned out slightly higher at £32,953 which was driven mainly by emergent maintenance and repair costs. We anticipate setting a further similar deficit budget for 2024/25.

As can be seen from the MMO Report of financial accounts we remain in a relatively strong financial position with an overall balance of £435,544 but the trend is a year-on-year reduction from this level. We continue to hold a good level of reserves (cash savings).

Financial Challenges for the year ahead

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.

Reserve Policy

There is no proposed change to the reserves policy which will remain as previously approved by the Management Committee. £113,700 is set aside in general funds that will cover:

Page 5

The Crofton Community Association

Trustees' Report (continued)

The Crofton Community Association (CCA) 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 Committee 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.

The annual report was approved by the Trustees of the charity on 15th May 2024 and signed on its behalf by:

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

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

Trustee

Page 6

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 29 February 2024.

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 7

The Crofton Community Association

Statement of Financial Activities for the Year Ended 29 February 2024

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
£
205,869
6,403
17,923
230,195
(263,148)
(263,148)
(32,953)
468,497
435,544
Unrestricted
£
196,911
1,104
16,830
214,845
(242,721)
(242,721)
(27,876)
496,373
468,497		 Total
2024
£
205,869
6,403
17,923
230,195
(263,148)
(263,148)
(32,953)
468,497
435,544
Total
2023
£
196,911
1,104
16,830
214,845
(242,721)
(242,721)
(27,876)
496,373
468,497

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 16.

The notes on pages 10 to 19 form an integral part of these financial statements. Page 8

The Crofton Community Association

(Registration number: 301794) Balance Sheet as at 29 February 2024

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		 2024
£
64,969
14,916
367,479
382,395
(11,820)
370,575
435,544
435,544
435,544		 2023
£
70,253
10,221
396,613
406,834
(8,590)
398,244
468,497
468,497
468,497

The financial statements on pages 8 to 19 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

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

The notes on pages 10 to 19 form an integral part of these financial statements. Page 9

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024

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 10

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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 11

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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 12

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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 13

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

2 Income from charitable activities

Hammond Wing
Sports Hall Wing
Crofton Hall Link Wing
Subscriptions		 Unrestricted
funds
General
£
81,003
58,953
50,057
15,856
205,869		 Total
2024
£
81,003
58,953
50,057
15,856
205,869		 Total
2023
£
71,242
57,140
50,188
18,341
196,911
Total
2024
£

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
£
6,403
Unrestricted
General
£
251
-
17,672
17,923		 Total
2024
£
6,403
Total
2024
£
251
-
17,672
17,923		 Total
2023
£
1,104
Total
2023
£
269
4,000
12,561
16,830

Page 14

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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
£
92,042
12,505
155,910
2,691
263,148		 Total
2024
£
92,042
12,505
155,910
2,691
263,148		 Total
2023
£
64,149
22,019
142,269
14,284
242,721

Page 15

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

6 Analysis of governance and support costs

Governance costs

Audit fees
Audit of the financial statements
Legal fees
Other governance costs
7
Net incoming/outgoing resources
Net outgoing resources for the year include:
Audit fees
Depreciation of fixed assets		 Unrestricted
funds
General
£
1,248
211
1,232
2,691		 Total
2024
£
1,248
211
1,232
2,691
2024
£
1,248
12,505		 Total
2023
£
3,078
9,936
1,270
14,284
2023
£
3,078
22,019

8 Trustees remuneration and expenses

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

Page 16

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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		 2024
£
142,515
10,134
3,261
155,910		 2023
£
130,302
9,704
2,263
142,269

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		 2024
No
4
3
7		 2023
No
4
4
8

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

10 Auditors' remuneration

Audit of the financial statements

2024 2023
£ £
1,248 3,078

Page 17

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

11 Taxation

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

12 Tangible fixed assets

Cost
At 1 March 2023
Additions
Disposals
At 29 February 2024
Depreciation
At 1 March 2023
Charge for the year
Eliminated on disposals
At 29 February 2024
Net book value
At 29 February 2024
At 28 February 2023
13 Debtors
Trade debtors
Prepayments
14 Cash and cash equivalents
Cash at bank		 Land and
buildings
£
99,202
-
-		 Furniture and
equipment
£
134,203
7,221
(2,866)
138,558
106,706
6,531
(2,866)
110,371
28,187
27,497
2024
£
9,915
5,001
14,916
2024
£
367,479		 Furniture and
equipment
£
134,203
7,221
(2,866)
138,558
106,706
6,531
(2,866)
110,371
28,187
27,497
2024
£
9,915
5,001
14,916
2024
£
367,479		 Total
£
233,405
7,221
(2,866)
237,760
163,152
12,505
(2,866)
172,791
64,969
70,253
2023
£
4,859
5,362
99,202
56,446
5,974
-
62,420 110,371
36,782 28,187
42,756 27,497
2024
£
9,915
5,001
14,916
2024
£
367,479
10,221
2023
£
396,613

Page 18

The Crofton Community Association

Notes to the Financial Statements for the Year Ended 29 February 2024 (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 2023
£
189,297
165,500
113,700
279,200
468,497
Balance at 1
March 2022
£
217,173
165,500
113,700
279,200
496,373		 Incoming
resources
£
230,195
-
-
-
230,195
Incoming
resources
£
214,845
-
-
-
214,845		 2024
£
981
1,159
9,680
11,820
Resources
expended
£
(263,148)
-
-
-
(263,148)
Resources
expended
£
(242,721)
-
-
-
(242,721)		 2023
£
355
205
8,030
8,590
Balance at 29
February 2024
£
156,344
165,500
113,700
279,200
435,544
Balance at 28
February 2023
£
189,297
165,500
113,700
279,200
468,497

Page 19