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HAINAULT FOREST COMMUNITY ASSOCIATION
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2024
Charity No: 308119
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| HAINAULT FOREST COMMUNITY ASSOCIATION | |
|---|---|
| CONTENTS | |
| Page | |
| Legal and Administrative Information | 1 |
| Report of the Trustees | 2-3 |
| Report of the Independent Examiner | 4 |
| Statement of Comprehensive Income | 5 |
| Statement of Changes in Reserves | 6 |
| Statement of Financial Position | 7 |
| Statement of Cashflows | 8 |
| Notes Forming Part of the Financial Statements | 9-13 |
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Page 1
HAINAULT FOREST COMMUNITY ASSOCIATION LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31ST MARCH 2024
Trustees
Chair Mr R Orrowe (to May 2023) Ms L Cray (from May 2023) Vice Chair Mr S Hindle (to June 2023) Mr L Heffernan (from June 2023) Treasurer Ms L Cray (to May 2023) Mr L Heffernan (from June 2023) Secretary Mrs B Willis (to March 2024) Ms J Hurley (from September 2024)
Mr G Papworth (from June 2023) Miss F Farrell (from November 2024) Ms J Wing (from June 2023) Mrs K Rainey (from October 2024) Cllr M Santos (from March 2023) Mr K Lowe (from October 2024) Cllr J Hehir (from March 2023) Mr L Harty (from November 2024 to February 2025) Cllr R Emmett (from March 2023) Mr R Hardiman (from October 2024) Cllr S Ali (from April 2023) Mr S Rainey (from October 2024) Cllr S Gould (from April 2023) Mrs S Burton (from October 2024) Cllr L Rahman (from April 2023) Mr D Jones (from October 2024)
Holding Trustees
Mrs I Webb (to February 2025) Mr D Tower (to February 2025) Mr C Mitchell (died May 2023)
Principal Office
100B Manford Way, Chigwell, Essex, IG7 4DF
Independent Examiner
Lorraine Catherine Purdy FCCA Clay Ratnage Daffin & Co Limited Chartered Accountants and Statutory Auditors Suite D, The Business Centre Faringdon Avenue Romford Essex RM3 8EN
Bankers
Lloyds Bank Plc, 1-3 Market Place, Romford, Essex, RM1 3AA
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Page 2
REPORT OF THE TRUSTEES OF HAINAULT FOREST COMMUNITY ASSOCIATION FOR THE YEAR ENDED 31ST MARCH 2024
The trustees present their report along with the financial statements of the charity for the year ended 31[st] March 2024. The financial statements have been prepared in accordance with the accounting policies set out on page 9 to 10 and comply with the charity’s trust deed and applicable law.
Constitution and objectives
Hainault Forest Community Association is constituted under a trust deed and is a registered charity No 308119.
The objects of the charity are to promote the benefit of the inhabitants of Hainault and the neighbourhood by associating the local authorities, voluntary organisations and inhabitants in common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure-time occupation with the object of improving the conditions of life for the said inhabitants.
Organisational Structure
The trustees who have served during the year and since the year end are set out on page 1. The charity is administered by a management committee, also set out on page 1, who are elected at the charity’s Annual General Meeting. The management committee meet regularly to discuss the state of the charity and to decide on the future decisions that the charity should take.
Financial review, Achievements, Performance and Investment Policy
The results for the year are set out in the Statement of Comprehensive Income on page 5. The charity has generated income of £469,537 during the year and has expended £473,352.
During the year the charity received grants of £26,850 (2023: £27,893). Of the 2024 grants received, all were from the London Borough of Redbridge. Nursery fee income for this year is £332,532 compared to £299,699 in 2023. Amounts paid to employees have increased this year to £365,086 from £343,764 in 2023.
Income from hire of the facilities has improved in 2023-24 as we continue to move away from the restrictions in place during the Covid-19 pandemic. A covenanted receipt has been received from the Social Club although at a lower level than last year due to the impact of cost of living pressures that have been seen across the hospitality industry. Management continue to face the challenges of managing costs in an inflationary environment, so have been working with representatives from the London Borough of Redbridge to devise an action plan to manage the charity’s reserves.
The charity has no future plans that will affect the balance sheet as at the year end, nor have there been any significant financial transactions since the balance sheet date.
There are no restrictions on the charity’s power to invest.
Reserves Policy
At the balance sheet date the charity has unrestricted reserves of £327,030 (2023 - £330,845) . The committee consider reserves of no less than fifty percent of the charity’s running costs should be held as usable reserves.
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Page 3
REPORT OF THE TRUSTEES OF HAINAULT FOREST COMMUNITY ASSOCIATION FOR THE YEAR ENDED 31ST MARCH 2024 (cont)
Risk management
The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen the risks. The trustees have assessed the risks and uncertainties relating to the Coronavirus and the challenges that the fast-moving guidance represents and have put in plans to mitigate these risks with safety as a priority.
Public Benefit
With reference to the stated objectives and activities, the trustees provide public benefit to the residents of Hainault and the surrounding area by providing pre-school education and social welfare for recreation and leisure time occupations which improves the fabric of life for those that use the facility.
The trustees are, accordingly, able to confirm that they have complied with section 4 of the 2006 Charities Act to have regard to guidance published by the Charity Commission.
Trustees’ responsibilities in relation to the financial statements
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing those financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable standards and statements of recommended practice have been followed, subject to
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any departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
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charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees and signed on their behalf on by:20/2/2025
Ms L Cray Chair
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REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES OF OF HAINAULT FOREST COMMUNITY ASSOCIATION FOR THE YEAR ENDED 31ST MARCH 2024
Page 4
I report to the charity trustees on my examination of the financial statements of Hainault Forest Community Association for the year ended 31[st] March 2024 which are set out on pages 5 to 13.
Responsibilities and basis of report
As the charity’s trustees 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 charity’s accounts carried out under section 145 of the 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
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts 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 accounts to be reached.
Mrs Lorraine Catherine Purdy FCCA Clay Ratnage Daffin & Co Limited
Chartered Accountants
Suite D, The Business Centre Faringdon Avenue Romford, RM3 8EN
Date: 25/2/2025
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Page 5
HAINAULT FOREST COMMUNITY ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED ON 31ST MARCH 2024
| Note INCOME AND EXPENDITURE Income Activities in furtherance of the Charity’s objects Grants Received 4 Activities for generating funds: Sundry Income 5 Interest Received Total Income Expenditure Charitable expenditure Management and Administration 6 Total Expenditure Total Comprehensive Expenditure for the year |
Unrestricted funds 2024 £ 26,850 442,296 391 469,537 473,352 473,352 (3,815) |
Unrestricted funds 2023 £ 27,893 411,123 30 439,046 456,444 456,444 (17,398) |
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HAINAULT FOREST COMMUNITY ASSOCIATION STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED ON 31ST MARCH 2024
| Balance as at 1stApril 2023 Total comprehensive expenditure for the year Balance as at 31stMarch 2024 |
Income and Restricted Total expenditure reserve reserve £ £ £ 330,845 - 330,845 (3,815) - (3,815) 327,030 - 327,030 |
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Page 7
HAINAULT FOREST COMMUNITY ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH 2024
ASSOCIATION ASSETS
| Note | 31.3.24 | 31.3.23 | ||
|---|---|---|---|---|
| £ | £ | |||
| FIXED ASSETS | ||||
| Centre Equipment and Furniture | Centre Equipment and Furniture | 10 | 7,065 | 8,850 |
| Leasehold Improvements | 10 | 220,943 | 228,757 | |
| 228,008 | 237,607 | |||
| CURRENT ASSETS | ||||
| Sundry Debtors | 7 | 7,223 | 1,505 | |
| Bank Accounts | 38,772 | 23,107 | ||
| Cash in Hand | 500 | 500 | ||
| Owed by HFCA Social Club Limited | 77,310 | 81,650 | ||
| 123,805 | 106,762 | |||
| CREDITORS: due within one year | ||||
| Trade Creditors | 450 | 966 | ||
| Sundry Creditors | 8 | 24,333 | 12,558 | |
| 24,783 | 13,524 | |||
| NET CURRENT ASSETS | 99,022 | 93,238 | ||
| NET ASSETS | 327,030 | 330,845 | ||
| SOURCE OF FUNDS | ||||
| Accumulated Fund | 11 | 327,030 | 330,845 | |
| Approved by duly authorised members of the Management Committee | Approved by duly authorised members of the Management Committee | |||
| (eS | [ro Heffernan | a | ||
| L CRAY | L HEFFERNAN | J HURLEY | ||
| ___ | ___ | ___ |
Date: 20/2/2025
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HAINAULT FOREST COMMUNITY ASSOCIATION STATEMENT OF CASHFLOWS AS AT 31ST MARCH 2024
| HAINAULT FOREST COMMUNITY ASSOCIATION STATEMENT OF CASHFLOWS AS AT 31ST MARCH 2024 Cash flows from operating activities Adjustments for Depreciation charges Interest received (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by / (used in) operating activities Cash flows from investing activities Dividends, interest and rents received Purchase of property, plant and equipment Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at 1st April 2023 Cash and cash equivalents at 31st March 2024 Represented by: Cash at bank and in hand Net expenditure for the reporting period (as per the statement of comprehensive income) |
2024 £ (3,815) 10,166 (391) (1,378) 11,259 15,841 391 (567) (176) 15,665 23,607 39,272 39,272 |
Page 8 2023 £ (17,398) 10,758 (30) 6,304 (10,948) (11,314) 30 (1,410) (1,380) (12,694) 36,301 23,607 23,607 |
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HAINAULT FOREST COMMUNITY ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH 2024
Page 9
1. ACCOUNTING FRAMEWORK AND ACCOUNTING POLICIES
a) Accounting framework
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.
b) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
c) Income recognition
Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the Charity.
d) Expenditure
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the Charity to pay out resources.
e) Tangible fixed assets and depreciation
These are capitalised if they can be used for more than one year. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost over their expected useful lives as follows:
Centre Equipment and 25% Reducing balance (Excluding the VerandaCanopy – 10 years straight line) Furniture Leasehold Improvements 2% Straight line
f) Government Grants
Grants are recognised annually only as and when any performance conditions attaching to the award are met. Government grants include grants receivable from the London Borough of Redbridge in respect of Nursery fees for children registered with the Charity. Government grants received for capital expenditure are recognised as income over the useful life of the asset and, where applicable, its individual components, under the accruals model. Coronavirus support grants are recognised when the eligibility criteria has been met.
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HAINAULT FOREST COMMUNITY ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH 2024
g) VAT
Since the Charity is not VAT registered, all input VAT is charged with the expenses to which it relates.
h) Debtors and creditors; bank and cash
Debtors are stated at the amounts owed to the Charity or prepaid. Creditors are initially recognised at settlement amount after any trade discounts, where normal credit terms apply, or amount advanced to the Charity. Subsequently creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit account balances are shown at the realisable values.
i) Pensions
The Charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Charity pays fixed contributions into a separate entity. Once the contributions have been paid the Charity has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Charity in independently administered funds.
j) Financial instruments
The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
k) Going concern
The charity’s performance has been impacted by the Covid-19 pandemic and subsequent inflationary environment, reducing income and increasing costs at a significant rate. Management have devised an action plan to improve income and manage costs and have secured additional grant funding to bolster cash reserves.
At the time of approving the financial statements, the trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for a period of 12 months from the approval of the financial statements. In arriving at their conclusion on going concern, the trustees have prepared a cashflow forecast through to 31 March 2026 based on reasonable assumptions and best estimates of monthly income and expenditure and reviewed the charity’s current level of cash reserves. The trustees have not identified material uncertainty with regard to going concern, and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
2. GENERAL INFORMATION
Hainault Forest Community Association is constituted under a trust deed and is a registered charity No 308119. The Charity's principal place of business is 100B Manford Way, Chigwell, Essex, IG7 4DF.
3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATED UNCERTAINTY
There are no significant judgements contained in these accounts.
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| HAINAULT FOREST COMMUNITY ASSOCIATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH 2024 4. GRANTS RECEIVED London Borough of Redbridge 5. SUNDRY INCOME Regular Hire and Room Hire Membership Fees Nursery Charges Fundraising Income Covenanted Receipt 6. MANAGEMENT AND ADMINISTRATION Wages Business and Water Rates Gas and Electricity Telephone Insurance Maintenance and Repairs Office Supplies and Stationery Postage Grass Cutting Independent Examiners Fees Nursery Expenses Bank Charges and Interest Refuse Collection Rentokil Sundry Expenses TV Licence Computer Expenses Writers Group Donations Depreciation – Leasehold Improvements Depreciation – Centre Equipment and Furniture |
Page 11 2024 2023 £ £ 26,850 27,893 26,850 27,893 2024 2023 £ £ 96,575 85,295 4,704 4,166 332,532 299,699 - 97 8,485 21,866 442,296 411,123 2024 2023 £ £ 365,086 343,764 3,337 5,210 24,695 24,893 5,533 5,536 2,821 2,625 22,911 20,728 4,515 4,014 15 31 550 580 2,724 2,520 20,821 26,570 749 949 4,716 3,514 1,334 1,435 35 35 159 159 3,185 2,848 - 250 - 25 7,814 7,814 2,352 2,944 473,352 456,444 |
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| HAINAULT FOREST COMMUNITY ASSOCIATION | Page 12 | |
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| NOTES TO THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH 2024 | ||
| 2024 | 2023 | |
| £ | £ | |
| 7. SUNDRY DEBTORS | ||
| Nursery Fees | 952 | 864 |
| Other Debtors | 6,271 | 641 |
| 7,223 | 1,505 | |
| 8. CREDITORS Due within one year: Nursery Fees Prepaid HM Revenue & Customs - PAYE & NIC Independent Examiners Fees Net Wages Light and Heat Membership Fees |
2024 £ 2,209 8,710 2,724 5,572 2,400 2,718 |
2023 £ 806 4,583 2,520 - 2,365 2,284 |
| 24,333 | 12,558 |
9. EMPLOYEES
The average number of persons employed during the year was:
| Administration Employees costs were as follows: Wages and salaries Social security costs Pension costs |
2024 2023 £ £ 20 20 2024 2023 £ £ 342,275 322,251 17,621 16,286 5,190 5,227 365,086 343,764 |
|---|---|
During the year no remuneration or expenses were paid to the trustees (2023 - £nil) .
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HAINAULT FOREST COMMUNITY ASSOCIATION
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH 2024
10. FIXED ASSETS
| COST At 31stMarch 2023 Additions Disposals At 31stMarch 2024 DEPRECIATION At 31stMarch 2023 Charge for Year Depreciation on disposals At 31stMarch 2024 NET BOOK VALUE At 31stMarch 2023 At 31stMarch 2024 |
Leasehold Centre Improvements Equipment £ £ 390,703 166,119 - 567 - - 390,703 166,686 161,946 157,269 7,814 2,352 - - 169,760 159,621 228,757 8,850 220,943 7,065 |
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11. FUNDS
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objectives, subject to the reserves policy referred to in the trustees report.
12. RELATED PARTY TRANSACTIONS
There are no related party transactions that require disclosure.
13. PENSION COMMITMENTS
The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost represents contributions payable by the Charity to the fund and amounted to £5,190 (2023 - £5,227) . Contributions totalling £1,577 (2023 - £999) were payable to the fund at the balance sheet date and are included in creditors.