THE WILLOW TRUST
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
Registered Company Number: 02430752 Registered Charity Number: 328386
SHINER MITCHELL FISHER & CO. LIMITED Accountants and Registered Auditors
Smith House George Street Nailsworth Stroud Gloucestershire GL6 0AG
THE WILLOW TRUST FINANCIAL STATEMENTS FOR THE YEAR EYDED 31. DECEMBER 2020 CONTENTS Report of the Trustees Report of the Independent Examiner Income and Expenditure Account Statement of Financial Activities Balan¢e Sheet 9-13 Notes to the Financial Statcments
THE WILLOW TRUST TRUSTEES ANNUAL REPORT
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
The Trustees present their annual report with the accounts of the company for the year ended 31[st] December 2020.
REFERENCE AND ADMINISTRATIVE INFORMATION
The Company whose registered office is at Smith House, George Street, Nailsworth, Glos, GL6 0AG, is limited by guarantee and is registered in England (Registered Number: 02430752).
The assets and resources of the Company are used exclusively in the performance and furtherance of The Willow Trust (“Charity”).
The Charity is controlled by its Trust Board, namely the following persons, who were also the directors in control of the Company during the year.
C A Lutton (Chairman) S C Fisher J Peak M Cass
The day to day administration of the Charity was undertaken by Mrs E A Rowland, who also acted as company secretary. Mrs E A Rowland retired on 31 March 2021 and was replaced by Mrs S Wolfe Murray on 1 April 2021 as both day to day administrator of the Charity and company secretary.
The main agents for the charity are:
Bankers: Nat West Bank CAF Bank 21 Eastgate Street 25 Kingshill Avenue Gloucester Kingshill GL1 1NH West Malling Kent ME19 4JQ Independent Examiner: Shiner Mitchell Fisher & Co. Ltd Smith House George Street Nailsworth Stroud Gloucestershire GL6 0AG
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Trustees are required to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Charity as at the end of each financial year and of the net incoming and outgoing resources of the Charity for that period.
The Trustees confirm that suitable accounting policies have been used and applied consistently and reasonably and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31 December 2019. The Trustees also confirm that applicable accounting standards have been followed and that the statements have been prepared on the going concern basis.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
THE WILLOW TRUST TRUSTEES ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The Charity, which is a registered charity (Registered Number: 328386), is governed by the Company’s Memorandum and Articles of Association (incorporated 9[th] October 1989 as amended by Special Resolution 24 October 1989).
Recruitment and Appointment of Trustees
The directors of the company are also charity trustees for the purpose of charity law and under the company’s Articles are known as members of the management Committee. Under the requirements of the Memorandum and Articles the members of the Management Committee are elected to serve for a period of three years after which they must stand down and offer themselves for re-election at the next Annual General Meeting.
As a needs led charity, the trustees are selected to offer a wide range of skills and experience that are of benefit to the charity.
Trustee Induction and Training
The induction process for trustees includes an initial meeting with the Chairman and education on the powers and responsibilities of the trustees, Trustees are provided with a briefing pack which includes a brief history of the trust, a copy of the Trust deed, copies of minutes of the trustees’ meetings and copies of the previous year’s annual report and accounts.
The trustees review the skill requirements for the Trustee Board periodically and undertake an annual review of their collective and individual performance and contribution to the Trust.
Risk Management
The trustees have reviewed the major risks facing the charity and have established systems and procedures to manage those risks. In particular, the trustees have considered the risks relating to the operations and finances of the Trust and are satisfied that systems are in place to mitigate exposure to the major risks identified.
Organisational Structure
Directors/trustees meet every quarter and are responsible for the policy and strategy of the charity.
The trust administrator reports to the trustees meetings and has delegated responsibility for the day to day running of the charity.
OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The principal object of the Charity is to provide, without charge, days on the water on fully accessible, purpose built boats, for adults and children with physical and/or learning disabilities and for those who are seriously ill. This provides a therapeutic, recuperative and recreational resource.
This is achieved by the operation of two broad beamed canal boats on the Gloucester-Sharpness Canal. Each boat is certificated as a Passenger Vessel by the Maritime and Coastguard Agency. On a daily basis, on each boat, there is a full time skipper who is assisted by three volunteer crew. The volunteers, who attend regular training sessions of varying levels, are drawn from a pool of around 95 people.
ACHIEVEMENTS AND PERFORMANCE
During the year the charity’s two boats were not operated due to the Covid-19 Pandemic. The boats were maintained during the period to be ready to take to the water once it is safe for guests to take a voyage on the canal.
FINANCIAL REVIEW
The Financial results for the year show a surplus of income over expenditure of £115,304 (2019: £75,259). The directors are satisfied with the financial position, which they consider is adequately disclosed in the attached accounts.
THE WILLOW TRUST TRUSTEES ANNUAL REPORT (CONTINUED)
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
Reserves Policy
Early in the charity’s financial year commitments are given to beneficiaries wishing to enjoy time on one of the charity’s boats. Such is the demand, that commitments extend one full season at the very least, leaving unsatisfied demand to be accommodated as soon as it is possible to do so the following season.
The Trustee’s policy is to maintain (if and wherever possible) sufficient reserves to meet the operational costs of the charity for a minimum of two years to underpin its commitment to beneficiaries.
The Trustees’ considered and informed policy takes fully into account various factors. Not the least (based upon experience and fixed overhead costs) the actual operational costs of the charity relative to the potential new income of the charity which, predominantly, is insecure and unpredictable.
The charity’s income may vary considerably from year to year due to unforeseen changes, for example in the value of legacies received and in the income from and value of its investments.
As part of the desire to remain fully operational the Trustees are aware that Marine Insurance is based only on the current value and not full replacement costs of the boats. In the event of loss and the need for replacement there would therefore be a shortfall, which would be met from the Trust’s reserves.
Also, though with less emphasis upon meeting future operational costs, the Trustees consider prudent some reserves to meet potential capital outlay ie. replacement and/or modification of the boats to Maritime and Coastguard Agency regulation standards newly imposed from time to time.
Principal Funding Sources
The charity generates its income from donations. These donations come from local businesses, charitable trusts, local clubs and societies and the general public. It also generates funds from the sale of souvenirs etc.
Investment Policy
Funds are placed with our bank in an interest bearing account. The charity does utilise other investment opportunities as they arise but any investment must have the full support of the board of trustees, after taking professional advice.
PLANS FOR THE FUTURE
The Charity plans to be operational as soon as the COVID-19 restrictions are fully lifted in line with the objectives of the Charity to ensure that even the most profoundly disabled people are able to spend a relaxing day on the water, all totally free of charge.
RESPONSIBILITIES OF THE MANAGEMENT COMMITTEE
Company law requires the Management Committee to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of the its incoming resources and application of resources, including income and expenditure, for the financial year. In preparation of those financial statements, the Management Committee should follow best practice and:
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Select suitable accounting policies and apply them consistently
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Make judgements and estimates that are reasonable and prudent; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue on that basis
The Management Committee is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Management Committee is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE ILLOW TRUST TRUSTEES AIYLY AL REPORT NTINUED FOR THE YEAR ENDED 31. DE EMBER 202 Mciithrs of tlic MaIge]n¢t Committcc ii'ho arc direcioT5 for the purp)se of conipan) I and irustC£5 for ihe PUryXTrWS of charit la., M"ho seTh"ed during Ilie wid up to te of this r¢rt are s¢1 out on pagc E. In accorthe ilith ¢ompam' laiTr", as thc compan) s diTcclor& H"e ccrtifi, that.. So far ds Tr'e are aM"wr. there is no ]C1'an1 audii InfotiO1] of i¥hich the wmpanv's audiiors ar¢ unaTh'arc,' and As thc diJrcioT5 of ihc companj ive lui'e iaken all the steps ihat N'e ouglil to iuh'e taken in ordcr to nke ourselNL% awa of anTr rel.al audit infonnalioii and 10 estdblish thai ihc chants s audit015 c?rc aii.are of thai inFornwtion. Signed on behaifof the board C A Lutton Cliainnan Date
INDEPENDENT EXAMINERS REPORT TO THE EIBERs ON I-HE I1Tr4.4L.DITF.D Tr IINANCIAL STATEPlEN"TS OF THE WILLOW TRI'.ST ST FOR THE IEAR EFDED 31 DECEMBER 2020 Respective respon$ibilitie5 of trnsttes and examiner The charity's Iru5tecs (who are also the dirertor5 of the company for the purposes of company lawl ar¢ responsible for the preparation of the accounts. The charity's Irusiee5 consider thai an audit is noi required for this year under se¢iion 14411 of the Charities ilct ?01 I (the 201 I Charities Acil, and that an ind¢pendeni e.xamination is needed. l am qualified to undertake the e.xamination by king a qllaiified tlleTnber of the Chartered As5cKiation of CertJfi¢d Accountant5. Having satlsfjed myself thai rhe charity is not Subject to audit under company law. or otherwise. and is eligible for tndependeni examination. it is my responsibility to.. • examine the accounis under 5eCtton 145 of the 2011 Charities Act, • to follow the procedures laid down in the oeneral Directions given by the Chariry Commission under section 14515llbl of the ?01 I Charitie5 Act. and • lo state whether particular matters have ¢ome io tny attention. B$i$ of independent examiner's St#teTnent My examinativn was carried out in accordance with general Directions given b) the ChaTlty Commission. An independent examinaiiott includes a review of the accounting re¢oTds kept by ¢h¢ Charify and a cotnparison of rhe accounts present¢d with those records. It also includes consideration of any unusual iietn5 or disclosllres in the accounts, and seeking explanation5 from the trustees concerning any such matters. The procedures undertaken do not provide all the evidenLe that would be required iti an audit, and conseqllently no opinion is given as to whether the accounts present a'true and fair. view and the rewrt is litnited 10 Ihose matters set out in the next statement. Independ¢Nt examiDer's si*temeNt In conne¢tion with my examination, no matter has ¢orn¢ to my attention.. which ui>e% me reasonable cause to believe thai in any material respect th¢ requirements: To keep accounting records In accordance with section 386 of the Cornpanies Act ?006 and • To prepare accounis whi¢h accord Ivirh the a¢¢ounlitig records, cornply with the acLountillg requirernents of section i96 of the Companies Act ?006 and with the methods and principles of the Statement of Recomm¢nded Practice.. A¢couniing and Reporring by Charities have no¢ been rnet or 2. 10 which, in my opinion, attention should b¢ drawn in orderto enable a proper tjnderstanding of th¢ acwunts to be reached. W-I, G Ljl SHINER MITCHELL FISHER & CO. LTD Independent Examiner 22.9 21 Dat¢ Smiih House. Georg¢ StreeL Nai15WOrth. Stroud, GIouc¢5ter5hire GL6 OAG
THE WILLOW TRUST
| INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2020 Note 2020 £ INCOME 2 237,610 EXPENDITURE Administration and operating expenses 3 - 6 (161,541) Other operating income 30,461 NET INCOMING RESOURCES 106,530 Interest receivable 8,774 SURPLUS/(DEFICIENCY) OF INCOME OVER EXPENDITURE BEFORE TAXATION 115,304 Taxation - RETAINED SURPLUS/(DEFICIT) FOR THE YEAR AFTER TAXATION 115,304 |
2019 £ 267,353 (201,540) - 65,813 9,446 75,259 - 75,259 |
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THE WILLOW TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2020
| Designated Restricted Unrestricted Note Funds Funds Funds £ £ INCOME RESOURCES Donations and fundraising - - 238,680 Investment income - - 8,774 Trading income: for fund raising purposes - - 109 Other income - - 30,461 Total Income - - 278,024 EXPENDITURE Direct charitable expenditure 3 - 14,712 111,428 Fund raising and publicity 4 - - 25,247 Management and administration 5 - - 11,333 Total expenditure - 14,712 148,008 Net incoming resources before transfers and revaluation’s - (14,712) 130,016 Net movement in funds - (14,712) 130,016 Total funds brought forward 200,000 21,255 347,645 Total funds carried forward 200,000 6,543 477,661 |
2020 Total Funds £ 238,680 8,774 109 30,461 278,024 126,140 25,247 11,333 162,720 115,304 115,304 568,900 684,204 |
2019 Total Funds £ 260,740 9,446 6,613 - 276,799 159,236 30,238 12,066 201,540 75,259 75,259 493,641 568,900 |
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THE WILL RUST BALANCE SHEET AS AT 31 ' DECEMBER 2020 Note 21120 2VIg FIXED ASSETS Tangiblc Assets -35.830 51,809 CURREIYT ASSETS Dcbtors Cash at bk and in IL4nd Invesin)crts 4.786 25n.496 9 393 872 649.154 5.245 l 11).543 3{)3 083 517.871 CREDITORS: Attx)unis falling duc wiihin one }'ear 780 NET CURRENT ASSETS 648 204 517091 TOTAL ASSETS LESS CURRENT LIABILITIES 684 568 Yrf)11 RESERVES D¢sigled funds Rc51ricted fiinds Untestricied fUlS 2.000 6.543 21)11,(X)o 347 C)4) TOTAL FUNDS 684 T1 ¢oinpiinv is entitled lo exemptson fTDm aiidit under Section 477 of the Compluu'es Aci 2006 for thc ycar ¢nding 31" Deceinbei 2020. Thc illeinb¢rs I}.e iioi requid the compan). to obtaifj an audit of ils finan¢ial staien]ents for ihe }ear end<ui I I Deceinb¢r 21120 in accornce '1th Scction 47f) of thc Compani¢s Acl 21K)6. The 1b'r¢clo acknowledge dieir Trswnsibilitieg for.. (a) ensuring ilk1t ihe COM1n). kecp5 accoun111 records "Cli compl! lIh Se¢tioJLS 386 and IS7 of the CompID]eS Act 200() and (b) ptEpanng fiNncial siatCTtKnts which give a true a1 fair vieii of ihe stale of affairs of compam as ai the of cach financial }"ear and of its profit and Ios5 for eacli Fula] s.ear in acco]KLincc H"iih the rcqiiirernen15 of Scctiow 3134 and 395 and M"hich otlienl'C coinplv M"iili the requi]Emenis of thc Comtkanies Act 2006 tEl<lting 10 fin4TKial slatctncnts. so far d5 applicabl¢ to t1 compa]ry. Th¢ finCIal stat¢mcn(s hai'¢ b¢cn pr¢pdffd iii ac¢ordance ii'ith the proi'isions applicable to companies subjeci to the Small Complinics rcginic. The fina I stalemenls oli pages 6 to 11 N'ete ttpproved b}" thc board of dirtorS and sIgd on its beha]f bv.. 02./f/@, C A Lutton Ditrctor Date
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
THE WILLOW TRUST
1. ACCOUNTING POLICIES
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year.
Basis of accounting
The financial statements have been prepared in accordance with Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” including the provision of Section 1A “Small Entities”, the Companies Act 2006 and the Statement of Recommended Practise: Accounting and Reporting by Charities issued in January 2019. The financial statements have been prepared under the historical cost convention.
The company has taken advantage of paragraph 3(3) of section 4 of the Companies Act 2006 to use its own arrangement of headings and sub-headings due to the special nature of its activities.
Fund accounting
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Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
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Designated funds are unrestricted funds earmarked by the Management Committee for particular purposes.
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Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Incoming resources
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.
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Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
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The value of donated services and facilities provided by volunteers has not been included in these accounts.
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Investment income is included when receivable.
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Incoming resources from charitable trading activity are accounted for when earned.
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Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
Resources expanded
Expenditure is recognised on an accrual basis as a liability is incurred.
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Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
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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.
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Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
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All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis eg. Staff costs per time spent and other costs per their usage.
THE WILLOW TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over their estimated useful lives as follows:
Boat and equipment 5% on cost Motor vehicles 20% on cost Other equipment 20% on cost
Taxation
The trust is a registered charity and is not liable for any income, capital gains or corporation taxes on its current activities.
Pensions
The Company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2. INCOME
Income comprises sales of goods and services together with the proceeds of fund raising and donations received in connection with the objects of the charity.
3. DIRECT CHARITABLE EXPENDITURE
| Designated Restricted Unrestricted £ £ £ Salaries - - 89,317 Depreciation of fixed assets etc. - 14,712 900 Repairs to equipment - - 1,775 Boat running expenses - - 5,599 Sundry expenses - - 13,838 - 14,712 111,429 |
2020 Total £ 89,317 15,612 1,775 5,599 13,838 126,141 |
2019 Total £ 111,472 15,849 9,825 8,510 13,580 159,236 |
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4. FUNDRAISING AND PUBLICITY
| Designated Restricted Unrestricted £ £ £ Salaries - - 18,218 Fundraising event costs - - 2,792 Costs of souvenirs - - - Sundry expenses - - 3,338 Depreciation of fixed assets etc. - - 901 - - 25,249 |
2020 Total £ 18,218 2,792 - 3,338 901 25,249 |
2019 Total £ 19,841 440 5,500 3,818 639 30,238 |
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THE WILLOW TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
5. MANAGEMENT AND ADMINISTRATION
| Designated Restricted Unrestricted £ £ £ Salaries - - 6,073 Depreciation of fixed assets etc. - - 901 Independent examiners remuneration - - 780 Rent and utilities - - 2,179 Sundry expenses - - 1,400 - - 11,333 |
2020 Total £ 6,073 901 780 2,179 1,400 11,333 |
2019 Total £ 6,614 639 780 2,401 1,632 12,066 |
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6. EMPLOYEE INFORMATION
| Designated Restricted Unrestricted £ £ £ Wages and salaries - - 95,764 Social security costs - - 8,421 Other pension costs etc. - - 9,423 - - 113,608 |
2020 Total £ 95,764 8,421 9,423 113,608 |
2019 Total £ 116,906 11,545 9,476 137,927 |
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None of the directors of the Charity received any emoluments or expenses during the year.
The number of persons employed during the year were:
| Direct charitable activities Fundraising, publicity and administration |
2020 3 1 4 |
2019 3 1 |
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| 4 |
THE WILLOW TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
7. TANGIBLE FIXED ASSETS
| Cost or valuation At 1stJanuary 2020 Additions At 31stDecember 2020 Depreciation At 1stJanuary 2020 Charge for the year At 31stDecember 2020 Net book value At 31stDecember 2020 At 31stDecember 2019 The net book value at 31stDecember 2020 represents tangible fixed assets used for: Direct charitable purposes Other purposes DEBTORS Amounts falling due within one year: Other debtors and prepayments |
Plant & machinery etc £ 489,983 1,436 491,419 438,174 17,415 455,589 35,830 51,809 29,428 6,402 35,830 2020 2019 £ £ 4,786 5,245 |
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8. DEBTORS
9. CURRENT ASSET INVESTMENTS
The Trustees are of the opinion that there is no material difference between cost and the market value of listed investments at 31 December 2020.
10. CREDITORS
| CREDITORS | ||
|---|---|---|
| Amounts falling due within one year: | ||
| 2020 | 2019 | |
| £ | £ | |
| Other creditors | 780 | 780 |
THE WILLOW TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2020
11. ANALYSIS OF FUNDS
| Designated Restricted Unrestricted Funds Funds Funds £ £ £ (a) Movement in funds At 1stJanuary 2020 200,000 21,255 347,645 Net incoming/outgoing resources - (14,712) 130,016 At 31stDecember 2020 200,000 6,543 477,661 (b) Representation of fund balances Tangible assets - 6,543 29,287 Cash and bank balances - - 250,496 Investments 200,000 - 193,872 Other current assets - - 4,786 Current liabilities - - (780) At 31stDecember 2020 200,000 6,543 477,661 |
2020 Total Funds £ 568,900 115,304 684,204 35,830 250,496 393,872 4,786 (780) 684,204 |
2019 Total Funds £ 493,641 75,259 568,900 51,809 119,543 393,083 5,245 (780) 568,900 |
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