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2021-12-31-accounts

Charity registration number: 301897

New Milton and District Community Association

Annual Report and Financial Statements

for the year ended 31 December 2021

New Milton and District Community Association

Contents

Reference and Administrative Details………………………………………………...… 1 Trustees’ Report………………………………………………………………… 2 to 5 Independent examiner’s report……………………………………………………. 6 to 7 Accounting Policies (Note 1 to Financial Statements) ………………………...... 8 to 9 Statement of Financial Activities (Income & Expenditure) ………………………… 10 Balance Sheet………………………………………………………………………… 11 Notes to Financial Statements (Notes 2 to 16 )………………………………… 12 to 18 The following pages do not form part of the statutory financial statements Statement of financial activities per fund………………………………………….19 to 21

New Milton and District Community Association

Reference and Administrative Details

Charity name New Milton and District Community Association
Charity registration number 301897
Principal office The Community Centre
Osborne Road
New Milton
Hampshire
BH25 6EA
Trustees G Denson
W Maund
Bankers Lloyds Bank Plc
4 Castle Street
Christchurch
Dorset
Independent Terence L. Smith & Co.
Examining Chartered Accountants
Accountant 38A Station Road
New Milton
Hampshire
BH25 6JX

Page 1

New Milton and District Community Association

Trustees’ Report

The Trustees present their Report and Accounts for the year ended December 31[st] December 2021.

Trustees

The Trustees are named on Page 1. R Ferguson resigned in 2021 due to ill health and the remaining two have served throughout the year. Appointment of the trustees is made by the Council as governed by the Constitution of the Association. The Council is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing Trustee.

Constitution, Objectives and Policies

The New Milton and District Community Association (NMDCA) is governed by its Constitution and its objectives are to promote the benefit of the inhabitants of New Milton and the neighbourhood, and to secure the establishment of the Community Centre for this purpose.

The policy of the Association continues to be to raise finance from subscriptions, donations and fundraising activities to continue to benefit the inhabitants of New Milton and the neighbourhood.

The Trustees delegate the day to day responsibility of running the Association to the Executive Committee.

The Trustees, in relation to new trustees, will use the Executive Committee for the administrative process. The guidance ‘Trustees and Governance (CC30)’ provided by the Charity Commissioners will be followed and covers:-

The guidance provides the Trustees with options at each stage of the process and it is up to the Trustees to select the preferred option. The guidance recognises that each charity has different needs but clearly identifies the statutory (legal) obligations and the need for ongoing training as required for new Trustees to meet their obligations.

Page 2

New Milton and District Community Association

Trustees’ Report

CORONAVIRUS

Unfortunately, again, due to the corona-virus the Centre was shut, then re-opened for limited activities from July and fully re-opened in October. However, due to people’s concerns with regard to safety and infection the numbers returning to the Centre were down. We are seeing some Hirers not coming back and those coming in have reduced numbers. Members attending the Centre are also down and this is reflected in our year-end membership.

Membership

As at 31[st] December 2021 the total 2021 membership was 726. This is a decrease of 466 from the previous year’s membership of 1192 which was down on 2019s and was not unexpected. We normally have a steady inflow of new members throughout a year but being closed and with worries relating to Covid-19 has stopped this happening again. The 2021 subscription rates for individual members is now £12 per annum with a joining fee of £2.50 for new members with the £20 per annum for affiliates being unaffected.

Activities and Achievements

A wide variety and range of interests were on offer but due to Covid insufficient members were willing to participate and due to this lack of numbers some activities did not take place. Meetings occur weekly, monthly or at other convenient times. The Association is always willing to consider new activities that can be set up and is willing to assist with any help if requested. Some groups however have ceased to operate.

During the lockdown and restricted opening times some of those attending made a greater personal financial contribution to help with the maintenance and running costs of the centre. Room hire facilities were available but limited to operating under the Guidelines.

The Association would not be able to provide such a wide level of service to its users without the continued support of a large number of members who give their services voluntarily.

Financial Review

The review compares this year and last year over our accounting period which covers a twelve month period starting January 1[st] and ending December 31[st.]

The total Statutory Income of the Association for the period was £74,442, an increase of £15,345 on last years’ £59,197. However, this increase was only due to the receipt of Government income of £17,303 (Grant) and £12,981 (CJS). The total Statutory Expenditure of the Association for the period was £64,421, a decrease of £57,263 on last years’ £121,684. The decrease in expenditure arose from our closure, then reduced operations and that 2020 had exceptional high expenditure. Overall this accounting period we have made an operating surplus of £10,021 compared to a deficit of £62,487 in 2020.

The total value of Tangible Assets is now £211,703 after depreciation of £9,470. Depreciation of the building and contents continues to be provided in accordance with recognised accounting standards and accounts for the whole of the £9,470. We received £7,160 from electricity generated by our Solar Array which can be reinvested.

Page 3

New Milton and District Community Association

Trustees’ Report

MAINTENANCE

The new roof was completed in 2020 but the final sign-off for the safety equipment was January 2021. Additional costs are still being incurred in ensuring our building and operations remain Covid Secure. A major task is to recover and refurbish over 150 clothe covered chairs with washable vinyl so they can be properly sanitised after use. We continue to look at how we can best utilise our member’s funds and provide them and the local community with the facilities needed. We operate preventative maintenance but the unexpected still occurs. Costs are monitored monthly and are realistic.

FINANCIAL ASSESSMENT

In preparing the final accounts all totals in the accounts have been rounded to the nearest pound. Each week we identify and reconcile the income and monthly reconcile the income and expenditure. This year we have made an accounting adjustment of £25 for unallocated income. In addition we analyse all Bank transactions and the petty cash account.

The Association’s financial position at the Balance Sheet date remains satisfactory especially with the unexpected operating surplus. The Association’s funds are sufficient for the Association to continue in operation and can cover the current level of costs for over a year without receipt of any income. Our normal insurance will protect our income in the event of a major disruption to our activities but not Covid-19. With an ageing building and limited surplus income annually we would be unable to raise loans in the normal manner and must continue to rely upon our reserves to cover any major unforeseen costs.

Unfortunately, one Section opted to leave and left with monies and assets. Whilst monies have been recovered we have been advised that potentially an un-crystallized debt of between £0 an £300 could be outstanding but has been written off due to a lack of documentation being provided. Also, the physical assets removed cannot be recovered. Action is being undertaken to ensure our procedures prevent this happening again with other Sections.

The Trustees will continue to maintain the Community Centre in good condition for the inhabitants of New Milton and the neighbourhood as is required under the Constitution.

Future Developments (Centre Building)

The building is regularly inspected and no further major works are required in 2022 or in the near future.

Future Developments (Centre Operations)

In 2021 we needed to rebuild the operation of the Centre due to Covid under whatever the new “normal” environment. Unfortunately, Covid and its variants persisted. This has hampered our attempts to counter the social isolation experienced. The use of social media is now a major tool. We have lost many of our volunteers and need to develop and engage volunteers with the right skills to access the wider local community. 2022 will still be affected by Covid and we can only manage within the parameters of those willing to come out and use our facilities. Steps are being taken to minimise the costs of maintaining the centre with lower attendance.

Page 4

New Milton and District Community Association

Trustees’ Report

Investments

The decision was taken to engage an Independent Financial Advisor (IFA) to more actively manage our funds. This came to a halt with Corona-virus. Monies were released just prior to the market downturn in March. In December 2020 our HSBC fund manager took the position that the fund should be closed. The monies should have been available in early 2021 but due to administrative problems were only released October 2021 with a loss of £42. A claim for compensation is ongoing. The monies have not yet been invested using the IFA. Markets remain highly volatile with Political and Economic uncertainty due to the USA, China and the pandemic. The markets have rallied but investing just before a price re-adjustment will reduce our net worth. The funds will now be put under new management in 2022.

Reserve Policy

The Building Improvements Reserve is held for future developments or major enhancements to the Community Centre building which is a two storey brick built structure. The Financial Protection Reserve is held to cover any potential claims not covered by the all risks insurance policy. In addition to the all risk we hold an additional to cover the work done on the roof. We will now rely on the additional as the contractor has ceased trading.

Risk

The Trustees have identified there is no major risk to which the Association is exposed. However, the pandemic (Corona-virus) is a risk if the Trust cannot operate and generate income. With Government support, our Reserves and actions to minimise costs we can continue until ‘normal operations’ can be resumed. The Centre buildings, fixtures, fittings and equipment contained in it are maintained in a good state of repair so as not to present any undue risk to members or visitors to the premises. The Executive also confirms that the activities which take place on the premises are conducted in a proper and efficient manner so as not to impose any undue risk and now in a ‘Covid Secure’ environment.

The Trustee have complied with their duty under Section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commissioners on public benefit.

Approved by the Trustees on the dates showing below:

G Densen

W MAUND

…………………… …………………… . G Denson Miss W Maund Trustee Trustee Date: 16/06/2022 Date: 17/06/2022

Page 5

New Milton and District Community Association Notes to the Financial Statements for the Year Ended 31st December 2021

1. Accounting policies

Basis of Preparation

The financial statements of the charitable organisation, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102), Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102' and The Financial Reporting Standard aaplicable in the UK and the Republic of Ireland'. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.

Going Concern

The Trustees believe that the charity is well placed to manage its business risks successfully, despite the current uncertain economic outlook, and have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustee’s discretion in furtherance of the objectives of the charity. Further details of each fund are disclosed in Note 16.

Incoming resources

Donations are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income derived from events is recognised as earned (that is, as the related goods or services are provided). Investment income is recognised on a receivable basis. Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Resources expended

Liabilities are recognised as soon as there is a legal constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Charitable expenditure comprises of 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.

Page 8

New Milton and District Community Association Notes to the Financial Statements for the Year Ended 31st December 2021

Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.

Value Added Tax (VAT)

Value added tax is not recoverable by the charity and as such is included in the relevant costs in the statement of financial activities.

VAT Registration - Not Registered

The various categories of funding are assessed against the VAT rules for inclusion or exclusion in calculating the total VAT income. The VAT income is reviewed against the VAT registration threshold throughout the year.

Fixed assets

Individual fixed assets costing £200 or more are initially recorded at cost.

Depreciation

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

Freehold buildings 2% straight line basis Fixtures, fittings and equipment 20% reducing balance basis Solar Array 5% straight line basis

Current Assets

Current assets investments are stated at market value in line with the SORP. Any movement in value is reflected in the statement of financial activities as other recognised gains/(losses).

Debtors

Debtors and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquistion or opening of the deposit or similar account

Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third part and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Page 9

New Milton and District Community Association Statement of financial activities by fund Period Ended 31st December 2021

31st December 2021
Total Funds Total Funds
01/01/2021 01/01/2020
NOTES Unresticted to to
Funds 31/12/2021 31/12/2020
£ £
Incoming resources
Incoming resources from generated funds
Voluntary Income 2 16,160 16,160 13,617
Activities for generating funds 3 827 827 740
Investment Income 4 7,167 7,167 8,058
Incoming resources from charitable activities 5 17,187 17,187 23,183
Other incoming resources (less 6.1) 6 2,817 2,817 13,599
GOVT GRANTS 6.1 17,303 17,303
COVID SUPPORT 10 12,981 12,981
Total incoming resources 74,442 74,442 59,197
Resources Expended
Charitable Activities 7 63,541 63,541 120,844
Governance Cost 7 880 880 840
Total resources expended 64,421 64,421 121,684
Net (outgoing)/incoming resources before 10,021 10,021 (62,487)
other recognised gains and losses
Other recognised gains/losses
(Losses)/gains on investment assets 13 (42) (42) 1,481
Net Movement in funds 9,979 9,979 (61,007)
Total funds brought forward 465,877 465,877 526,884
Total funds carried forward 475,856 475,856 465,877

All incoming resources and resources expended derive from continuing activities.

Page 10

New Milton and District Community Association Balance sheet as at 31st December 2021

Notes
Fixed Assets
Tangible Assets
11
Current Assets
Debtors
12
Investments
13
Cash at bank and in hand
13.1
Creditors: Amounts falling
due within one year
2021 ADV memb fees
14
2020 TRADE OTHERS
14
2021 AUDIT
14
2021 TRADE HIRERS
14
Net current Assets
Net Assets
The funds of the charity:
Unrestricted funds
Unrestricited income funds
Previous year adjustments
Operating Activities Gains/(Losses)
Revaluation reserve
Total change to income funds during the per
Total unrestricted funds
Total charity funds		 31/12/2021
£
£
211,703
1,440
0
267,014
268,454
(2,126)
(1,276)
(880)
(20)
(4,301)
264,153
475,856
465,877
465,877
10,021
(42)
iod
9,979
475,856
475,856		 31/12/2021
£
£
211,703
1,440
0
267,014
268,454
(2,126)
(1,276)
(880)
(20)
(4,301)
264,153
475,856
465,877
465,877
10,021
(42)
iod
9,979
475,856
475,856		 31/12/2020
£
£
221,172
4,896
90,625
160,038
255,559
(285)
(9,673)
(840)
(56)
0
(10,854)
244,705
465,877
526,884
(61,007)
(61,007)
465,877
465,877		 31/12/2020
£
£
221,172
4,896
90,625
160,038
255,559
(285)
(9,673)
(840)
(56)
0
(10,854)
244,705
465,877
526,884
(61,007)
(61,007)
465,877
465,877
475,856 465,877
475,856 465,877

Approved by the Board on 18/06/2022 and signed on its behalf by:

G Densen

W MAUND

……………………………… ……………………………. G Densen - Trustee Miss W Maund - Trustee

Page 11

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

**Total Funds ** Total Funds
Un- 01/01/2021 01/01/2020
restricted to to
Funds 31/12/2021 31/12/2020
£ £ £
2 Voluntary Income
Donations and Legacies
Legacies 0.00 0.00
Centre activities 14,041 14,041 11,082
Centre catering 2,119 2,119 2,535
16,160 16,160 13,617
3 Activities for generating funds
Reception 827 827 740
827 827 740
**4 ** Investment Income
Interest on cash deposits 7 7 22
Investment income
solar FIT 7,160 7160 8,036
7,167 7,167 8,058
5 Incoming resources from charitable activities
Subscriptions & fees 4,902 4,902 11,049
(monies received in previous year for this)
Hall and room rentals 12,285 12,285 12,134
17,187 17,187 23,183
**6 ** Other incoming resources
6.1 GOVT GRANTS 17,303 17,303
Donations (ad hoc)/Gift Aid 2,792 2,792 13,551
Rounding Accounting adj 25 25 48
20,120 20,120 13,599

Page 12

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

31st December 2021
7 Total resources expended
Note
Direct costs
Employment Costs
10
Establishment costs
Insurances
Utilities
Office expense
Subscriptions/donations/licences		 01/01/2021
01/01/2020
to
to
Charitable
31/12/2021
31/12/2020
Activities
Governance Total
37,126
37,126
38,092
6,334
6,334
72,198
3,411
3,411
5,092
3,688
3,688
4,664
846
846
722
256
256
2,626
Publicity and sundry othe costs
Independent examiners fee
Bank charges
Depreciation of tangible fixed assets		 2,049
2,049
2,149
30
880
910
880
332
0
332
507
9,470
9,470
10,011
ADJUSTMENTS (JNLS) 0
0
0
63,541
880
64,421
136941

8 Trustees' remuneration and expenses

No trustee received any remuneration or reimbursement of expenses during the period.

9 Net (outgoing)/incoming resources is atated after charging

01/01/2021
01/01/2020
to
to
31/12/2021
31/12/2020
Depreciation of owned assets 9,470
10,011

Page 13

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

10 Employees remuneration

The average number of persons employed by the charity (including trustee) during the period was as follows:

The average number of persons employed by the charity
(including trustee) during the period was as follows:
Charitable activities
Number
The aggregate payroll costs of these persons were
as follows:
Wages and salaries (Net)
HRMC
EE/Tax Ni
NEST
EE PENSION
HMRC
ER Social Security
NEST
ER PENSION
HMRC COVID SUPPORT		 01/01/2021
01/01/2020
to
to
31/12/2021
31/12/2020
2
3
28,026
29,714
7,318
6,701
1,025
986
0
0
757
691
37,126
38,092
12,981
15,257

Pension contributions were made to two employees under NEST No employee received emoluments of more than £60,000 during the period 31/12/2021 - No.0

Page 14

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

11 Tangible fixed Assets

SL
STRAIGHT LINE
RB
REDUCING BALANCE
Depreciation rate
Cost or valuation
AS AT 31/12/2020
Additions
AS AT 31/12/2021
Depreciation
AS AT 31/12/2020
Charge for the period
AS AT 31/12/2021
Net book value
AS AT 31/12/2020
AS AT 31/12/2021
12 Debtors
previous to be cleared
2020
Trade Debtors
Hirers (unpaid fees)
Activities (unpaid)
LOANS
HMRC Covid
Trade Debtors
2021
Hirers (unpaid fees)
Activities (unpaid)
LOANS
HMRC Covid		 SL
STRAIGHT LINE
RB
REDUCING BALANCE
Depreciation rate
Cost or valuation
AS AT 31/12/2020
Additions
AS AT 31/12/2021
Depreciation
AS AT 31/12/2020
Charge for the period
AS AT 31/12/2021
Net book value
AS AT 31/12/2020
AS AT 31/12/2021
12 Debtors
previous to be cleared
2020
Trade Debtors
Hirers (unpaid fees)
Activities (unpaid)
LOANS
HMRC Covid
Trade Debtors
2021
Hirers (unpaid fees)
Activities (unpaid)
LOANS
HMRC Covid		 Freehold
property		 Fixtures
fittings &
equipment		 Solar
Array		 Total(s)
SL
2%		 RB
20%		 SL
5%
275458
0
275458
84983
5509
90492
190475
184966		 94500
0
94500
83661
2168
85829
10839
8671		 35852
0
35852
15993
1793
17786
19859
18066		 405810
0
405810
184637
9470
194107
221173
211703
woff/jnl
received
31/12/2021 31/12/2020
0.00
1,440
0.00
1440.00
0.00
0.00
1,575
0.00
1575.00
1881.00
0.00
1881.00
Trade Debtors
2021
Hirers (unpaid fees)
Activities (unpaid)
LOANS
HMRC Covid		 518.50
546.00
375.00
0.00
1,440
4,896

Page 15

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

13 Current assets: Investments

Current assets: Investments
as at gain as at
31/12/2021 (loss) 31/12/2020
Listed Investments 0 (42) 90,625
Anaylsis of movement in current asset investment
Investment values
HSBC
CLOSED OCT 2021		 0 (42) 90,625
Sterling Investment Account
CLOSED MARCH 2020
0 (42) 90,625

All current assets investments were held in the UK in listed investments

13.1 Cash at bank and in hand

Cash at bank and in hand
Lloyds
INSTANT
Lloyds
No. 1
Lloyds
No. 2
PETTY CASH
Unbanked CASH (A)
Cash Holdings (tin/eoy transition)
TOTAL(s)		 as at
as at
31/12/2021
31/12/2020
151,487
44,889
60,160
60,156
54,764
54,827
230
75
331
56
43
35
267,014
160,038

Page 16

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

14 Creditors: Amounts falling due within one year

DIFF paids 31/12/2021 31/12/2020
Taxation & Social Security
previous years end balances
2020 0.00
2020 trade rentals 36.00 (20) (56)
2020 Membership fees (in advance) 285.00 0 (285)
2020 Audit fee (provision) 840.00 0 (840)
2020 trade others 8732.60 0 (8,733)
2020 NEST 941.00 0 (941)
THIS YEARS CREDITORS
Accruals and deferred income
2021 trade rentals 20.00 (20)
2021 Membership/AFF fees (in advance) 0.00 (2,126)
2021 Audit fee (provision) (880)
2021 trade others 0.00 (631)
2021 HMRC/NEST -0.49 (645)
(4,301) (10,854)

Total of creditors falling due within one year are: (4,301)

Page 17

New Milton and District Community Association Notes to the Financial Statements for the Period Ended 31st December 2021

15 Related parties

Controlling Entity The charity is controlled by the trustees

16 Analyis of funds

Analyis of funds
General Funds
Accumulated fund
Financial protection
Building fund
General Funds
Accumulated fund
Financial protection
Building fund		 As at
income
expend
TRFS
gains
as at
1/1/2020
(losses)
31/12/2020
£
£
£
£
£
£
397,703
74,454
(136,941)
15,882
1,481
352,578
15,907
15,907
113,274
(15,882)
97,392
526,884
74,454
(136,941)
0
1,481
465,877
As at
income
expend
TRFS
gains
as at
1/1/2021
(losses)
31/12/2021
£
£
£
£
£
£
352,578
74,442
(64,421)
0
(42)
362,557
15,907
0
15,907
97,392
0
97,392
465,877
74,442
(64,421)
0
(42)
475,856

Page 18

NEW MILTON AND DISTRICT COMMUNITY ASSOCIATION

Independent Examiner’s Report to the Trustees of New Milton and District Community Association

I report on the accounts of the charity for the year ended 31[st] December 2021, which are set out on pages 8 to 17.

Respective responsibilities of the trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required this year (under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Page 6

NEW MILTON AND DISTRICT COMMUNITY ASSOCIATION

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

have not been met; or

T L Smith

Terence L Smith CA Terence L Smith & Co 38A Station Road New Milton Hampshire BH25 6JX

Dated: 7[th] June 2022

Page 7