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2023-03-31-accounts

Registered number: 01307825 Charity number: 502933

Centre 56 Limited

(A Company Limited by Guarantee) Trustees' Report and Financial Statements

For the Year Ended 31 March 2023

Centre 56 Limited

(A Company Limited by Guarantee)

Contents

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Statement of Trustees' Responsibilities 8
Independent Auditor's Report on the Financial Statements 13
Statement of Financial Activities incorporating the Income and Expenditure account 14
Balance Sheet 15
Notes to the Financial Statements 16 - 30

Centre 56 Limited

(A Company Limited by Guarantee)

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2023

Trustees P Roberts, Chair
Dr M Birkett
L Dixon
A L Russell
J Wood
J Wild (resigned 9 August 2022)
Company registered
number
01307825
Charity registered
number
502933
Registered office
The Foundry
42 Henry Street
Liverpool
England
L1 5AY
Company secretary
J A Vincent
Independent auditor
BDO LLP
5 Temple Square
Temple Street
Liverpool
L2 5RH
Bankers
NatWest
2 - 8 Church Street
Liverpool
L1 3BG

Page 1

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2023

The Trustees who are also directors of the charity for the purposes of the Companies Act present their report together with the financial statements of the charity for the year ended 31 March 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the charity's governing document, applicable law and the requirements of Accounting and the Charities SORP (FRS 102).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Structure, Governance and Management

Constitution

The Charity is a company limited by guarantee and is registered as a Charity with the Charity Commission. The affairs of the Charity are governed by its Memorandum and Articles of Association. The organisation was registered as a charity on 14 January 1973 and was incorporated as a charitable company limited by guarantee on 12 April 1977.

The Charity complies with the principal recommendations of the National Housing Federation’s Code of Governance 2020 and Code of Conduct 2022.

Organisational Structure

The Trustees, who are also the directors for the purpose of company law, who served during the year were:

Dr M R Birkett L Dixon A L Russell J Wood P Roberts J Wild - resigned 9 August 2022

None of the Trustees has any beneficial interest in the company. All the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Trustees are responsible for the finances and general forward planning of The Centre and managers deliver the day to day decision making. The Trustees discuss monthly outcomes and practices relating to the overall running of the service, including actual against budget at regular Board Meetings. Ideas and opportunities consultation is completed with the staff, parents and children. This information is collated to support the Trustees in making strategic decisions.

Policies adopted for the induction and training of Trustees

A matrix system is used to assess the skills of potential new trustees as it is essential that the Board has trustees with a wide range of skills and backgrounds. Prospective trustees complete an application form, interview and induction process before confirming appointment, this involves attending trustee meetings on an observational, non-voting, basis and spending time at the Centre familiarising themselves with workings of the organisation, its staff and families.

Page 2

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Structure, Governance and Management (continued)

Arrangements for setting pay and remuneration for key management personnel

The Trustees regularly review the remuneration of senior staff in line with NJC scales and guidelines.

Related parties

Centre 56 Limited joined the Regenda Group in 2017/18. Regenda has the right to appoint members to the board of the company and thereby exercises control over them.

Objectives and Activities

The Centre's objectives are to assist families who are in necessitous circumstances, in particular those families who have suffered from abuse or maltreatment in their homes and/or communities.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit. The Charity‘s objectives are as follows: To

Strategies and activities for achieving objectives

Centre 56 operates from its setting within the ward of Kirkdale in Liverpool, which remains one of the most deprived areas in the city area.

The Trustees plan to build services to reflect local priorities based on the following:

Page 3

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Strategies and activities for achieving objectives (continued)

Achievements and performance

The services both for nursery and afterschool remain popular, with waiting lists in place for each. The Centre also undertook seasonal and wellbeing activities which included:

The nursery was last inspected by Ofsted in December 2018, receiving a ‘Good’ rating, and improvement plans have been completed relating to minor recommendations.

Management continues to contribute to the strategic direction of services relating to domestic abuse as active members of Liverpool Domestic Abuse Steering Group.

Page 4

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Achievements and performance (continued)

To work effectively the Centre is in close contact with several organisations, which they would like to thank, including:

Financial review

The Centre income totalled £150,913 (2022 - £92,421) for the year. Of this, £100,275 (2022 - £54,063) was received from Liverpool City Council. Income also included £959 gift aid receipt from members of the Regenda group (2022 - £Nil).

Expenditure totalled £466,559 (2022 - £305,542) which resulted in an overall deficit for the year of £315,646 (2022 - £213,121).

At 31 March 2023, the Charity had restricted funds of £18,024 (2022 - £28,890), unrestricted funds of £401,892 (2022 - £706,672) and designated funds of £217,563 (2022 - £253,728).

Page 5

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Going concern

The Company's latest Business Plan including sensitivity analysis and stress testing, approved May 2023, demonstrates that the Company has sufficient cash facilities in place to meet all liabilities as they fall due for a period of at least 12 months from the approval of these financial statements.

After a thorough review considering the impact of inflation and the challenging economic environment on all assets, liabilities and commitments, management has identified that the main risk comes from a reduction in fundraising activity. The stress testing performed includes modelling the impact of a potential reduction in fundraising income over the next 5 years.

The management team monitor this risk through the production of monthly management accounts and updates on subsidiary performance are also provided to the parent Board at each Board meeting.

To mitigate this risk, Trustees have designated existing reserves to develop a growth strategy over the next 18 months which looks at increasing corporate donations and legacy giving.

Based on the above, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed.

Reserves Policy

The Trustees have considered the quantum of reserves which they consider should be held by the charitable company and agreed the following:

Investment Policy

The Trustees regularly review where the charity's funds are invested and new accounts including fixed term deposits are opened periodically in order to ensure a competitive return is received.

Fundraising

The Centre does not have significant fundraising activity, but this has increased during the year and there are plans in place to develop this further.

Page 6

Centre 56 Limited

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Future Developments

Centre 56 will continue to provide services for the beneficiaries previously outlined, however there are emerging areas of development that will be actively sought over the coming years. This includes seeking out partnership with companies within the Regenda Group in order to maximise the potential strength of the offer to vulnerable families through Centre 56.

This is in addition to working more closely with colleagues in Liverpool City Council, to continually support and engage in the successful delivery of the authorities domestic abuse and children's strategies.

Statement as to Disclosure of Information to Auditor

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditor

BDO LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies regime

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by order of the members of the board of Trustees on 14 September 2023 and signed on their behalf by:

Mr Paul Roberts

Chair

Page 7

Centre 56 Limited

(A Company Limited by Guarantee)

Statement of Trustees' Responsibilities For the Year Ended 31 March 2023

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 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.

Page 8

Centre 56 Limited

(A Company Limited by Guarantee)

Independent Auditor's Report to the Members of Centre 56 Limited

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Centre 56 Limited (“the Charitable Company) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 9

Centre 56 Limited

(A Company Limited by Guarantee)

Independent Auditor's Report to the Members of Centre 56 Limited (continued)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ report, other than the financial statements and our auditor’s report thereon. The other information comprises the information in the Trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

Page 10

Centre 56 Limited

(A Company Limited by Guarantee)

Independent Auditor's Report to the Members of Centre 56 Limited (continued)

Responsibilities of Trustees

As explained more fully in the statement of Trustees’ responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

we considered the significant laws and regulations to be FRS102 and UK Law & Tax Legislation.

The entity is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation etc.

Our procedures in respect of the above included:

Page 11

Centre 56 Limited

(A Company Limited by Guarantee)

Independent Auditor's Report to the Members of Centre 56 Limited (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be management’s incentives and opportunities for fraudulent manipulation in relation to posting inappropriate journal entries to revenue as well as timing of the recognition of other income items.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 12

Centre 56 Limited

(A Company Limited by Guarantee)

Independent Auditor's Report to the Members of Centre 56 Limited (continued)

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hamid Ghafoor (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Liverpool, UK

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Page 13

Centre 56 Limited

(A Company Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2023

Note
Income from:
Grants and donations
4
Charitable activities
5
Investments
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
14
Net movement in funds
14
Total funds carried forward		 Unrestricted
funds
2023
£
23,334
-
3,833
27,167
331,947
331,947
(304,780)
706,672
(304,780)
401,892		 Restricted
funds
2023
£
-
123,746
-
123,746
134,612
134,612
(10,866)
28,890
(10,866)
18,024		 Total
funds
2023
£
23,334
123,746
3,833
150,913
466,559
466,559
(315,646)
735,562
(315,646)
419,916		 Total
funds
2022
£
9,432
82,169
820
92,421
305,542
305,542
(213,121)
948,683
(213,121)
735,562

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 16 to 30 form part of these financial statements.

Page 14

Centre 56 Limited

(A Company Limited by Guarantee) Registered number: 01307825

Balance Sheet As at 31 March 2023

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Total net assets
15
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 9,248
441,079
450,327
(56,485)		 2023
£
26,074
26,074
393,842
419,916
419,916
18,024
401,892
419,916		 4,929
837,950
842,879
(114,956)		 2022
£
7,639
7,639
727,923
735,562
735,562
28,890
706,672
735,562

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on 14 September 2023 and signed on their behalf by:

Mr Paul Roberts

Chair

The notes on pages 16 to 30 form part of these financial statements.

Page 15

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

1. General information

Centre 56 is a private company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in the Reference and Administrative Details page and details of the Charity's operations are provided in the Trustees Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

Centre 56 Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in GBP and rounded to the nearest £.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.2 Financial Reporting Standard 102 - reduced disclosure exemptions

The Charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

This information is included in the consolidated financial statements of Regenda Group as at 31 March 2023 and these financial statements may be obtained from its registered office: The Foundry, 42 Henry Street, Liverpool, L1 SAY.

Page 16

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.3 Going concern

The Company's latest Business Plan including sensitivity analysis and stress testing, approved May 2023, demonstrates that the Company has sufficient cash facilities in place to meet all liabilities as they fall due for a period of at least 12 months from the approval of these financial statements.

After a thorough review considering the impact of inflation and the challenging economic environment on all assets, liabilities and commitments, management has identified that the main risk comes from a reduction in fundraising activity. The stress testing performed includes modelling the impact of a potential reduction in fundraising income over the next 5 years.

The management team monitor this risk through the production of monthly management accounts and updates on subsidiary performance are also provided to the parent Board at each Board meeting.

To mitigate this risk, Trustees have designated existing reserves to develop a growth strategy over the next 18 months which looks at increasing corporate donations and legacy giving.

Based on the above, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed.

2.4 Income

All income is accounted for on a receivable basis. Any grants whose use is restricted by the grant or to some future accounting period are accounted for as deferred income until the restriction has been satisfied.

Income from investments represents interest from bank deposits. Interest on funds held on deposit is recognised when receivable and the amount can be measured reliably by the Charity, this is normally upon notification of the interest paid or payable by the bank.

Any voluntary income received by way of donations and gifts is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers is not included, and there have been no volunteers in the past year due to COVID-19.

Payments received from the government for furloughed employees are a form of grant. This grant money is receivable as compensation for expenses already incurred, and where this is not in respect of future related costs, is recognised in income in the period in which it becomes receivable and the related expense is incurred.

2.5 Expenditure

All expenditure is included in the accounts on the accruals basis and includes attributable irrecoverable VAT.

Support costs have been allocated as incurred against the provision of nursery care which is the charities primary activity.

Governance costs are those costs that relate to the general running and strategic management of the charity as opposed to those associated with the day to day management and charitable activities.

Page 17

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.6 Taxation

As a registered charity the Charity is generally exempt from Corporation Tax and Capital Gains Tax on its charitable activities, but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures, fittings & equipment - 25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

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

2.10 Creditors

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 18

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.13 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.14 Fund accounting

Unrestricted funds can be spent freely in support of the charity’s purpose.

Designated funds are part of the unrestricted funds which trustee have earmarked for a project or use, without restricting or committing the funds legally.

Restricted funds fall outside the definition of reserves, these may be funds that are restricted by the donor for use on a project or purpose.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually.

Page 19

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations and gifts
22,375
Gift Aid from members of the Regenda group
959
Total 2023
23,334
Total 2022
9,432		 Total
funds
2023
£
22,375
959
23,334
9,432		 Total
funds
2022
£
9,432
-
9,432

Donations income in the current and prior year was unrestricted.

5. Income from charitable activities

Liverpool City Council
Screwfix Foundation
Masonic
LIV Char VHOF
Liverpool Citysafe
Bauer Radio S C
Merseyside Play
Rathbone
Steve Morgan Foundation
360 Rise
Total 2023		 Restricted
funds
2023
£
100,275
-
-
-
-
12,451
-
5,000
5,000
1,020
123,746		 Total
funds
2023
£
100,275
-
-
-
-
12,451
-
5,000
5,000
1,020
123,746		 Total
funds
2022
£
54,063
5,000
5,000
5,058
6,500
4,048
-
2,500
-
-
82,169

Total income from charitable activities was £123,746 (2022 - £82,169) of which £Nil (2022 - £Nil) was unrestricted and £123,746 (2022 - £82,169) was restricted.

Page 20

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

6. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Bank interest 3,833 3,833 820

Investment income in the current and prior year was unrestricted.

7. Analysis of expenditure by activities

Expenditure on charitable activities
Expenditure on charitable activities		 Activities
undertaken
directly
2023
£
248,624
Activities
undertaken
directly
2022
£
198,490		 Support
costs
2023
£
217,935
Support
costs
2022
£
107,052		 Total
funds
2023
£
466,559
Total
funds
2022
£
305,542

Total expenditure on charitable activities for the year was £466,559 (2022 - £305,542) of which £331,947 was unrestricted (2022 - £217,014) and £134,612 was restricted (2022 - 88,528).

Page 21

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Agency staff and recruitment
Nursery fees and outings
Premises		 Charitable
activities
2023
£
173,300
6,026
3,589
42,666
23,043
248,624		 Total
funds
2023
£
173,300
6,026
3,589
42,666
23,043
248,624		 Total
funds
2022
£
140,936
2,196
7,889
26,079
21,390
198,490

Analysis of support costs

Staff costs
Premises
Facilities management
Other costs		 Charitable
Activities
2023
£
65,721
9,672
7,975
134,567
217,935		 Total
funds
2023
£
65,721
9,672
7,975
134,567
217,935		 Total
funds
2022
£
80,037
6,690
6,889
13,436
107,052

Total expenditure on charitable activities for the year was £466,559 (2022 - £305,542) of which £331,947 was unrestricted (2022 - £217,014) and £134,612 was restricted (2022 - 88,528).

Support costs have been allocated as incurred against the provision of nursery care which is the charities primary activity.

Governance costs are centralised across the Group.

Regenda Limited charges the charity for a range of services including Governance as part of the recharge for Corporate Services.

This is included in expenditure on charitable activities.

Page 22

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

8. Auditor's remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 3,870 3,720
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above 1,650 1,800

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
217,562
14,820
6,639
239,021		 2022
£
201,382
14,050
5,541
220,973

The average number of persons employed by the Charity during the year was as follows:

Nursery staff
Management and administration		 2023
No.
12
1
13		 2022
No.
8
2
10

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel of the charity comprise the trustees, Nursery and Deputy Nursery Managers and Fundraising Manager. The total employee benefits of the key management personnel were £80,859 (2022 - £93,369).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £Nil).

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £Nil).

Page 23

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

11.
Tangible fixed assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Fixtures,
fittings &
equipment
£
39,359
24,461
63,820
31,720
6,026
37,746
26,074
7,639

Page 24

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

12. Debtors

Due within one year
Amounts owed by group undertakings
Other debtors
Prepayments		 2023
£
-
2,057
7,191
9,248		 2022
£
249
321
4,359
4,929

Amounts owed by group undertakings are interest free and repayable on demand.

13. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other creditors
Accruals and deferred income		 2023
£
10,548
20,833
1,126
23,978
56,485		 2022
£
4,325
96,837
-
13,794
114,956

Amounts owed to group undertakings are interest free and repayable on demand.

Page 25

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Growth fund
General funds
Unrestricted - general
Total Unrestricted funds
Restricted funds
Liverpool City Council
Masonic
Rathbone
Steve Morgan Foundation
Medicash
Bauer Radio S C
LIV Char VHOF
Screwfix Foundation
Liverpool Citysafe
360 Rise
Total Restricted funds
Total of funds		 Balance at 1
April 2022
£
253,728
452,944
706,672
-
3,750
-
7,449
5,000
1,043
1,049
5,000
5,599
-
28,890
735,562		 Income
£
-
27,167
27,167
100,275
-
5,000
5,000
-
-
12,451
-
-
1,020
123,746
150,913		 Expenditure
£
(36,165)
(295,782)
(331,947)
(100,275)
(3,750)
(5,000)
(4,425)
-
(1,043)
(13,500)
-
(5,599)
(1,020)
(134,612)
(466,559)		 Balance at
31 March
2023
£
217,563
184,329
401,892
-
-
-
8,024
5,000
-
-
5,000
-
-
18,024
419,916

Page 26

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Growth fund
General funds
General Funds - all funds
Total Unrestricted funds
Restricted funds
Liverpool City Council
Big Lottery Fund
Masonic
Rathbone
Steve Morgan Foundation
Medicash
Bauer Radio S C
LIV Char VHOF
Screwfix Foundation
Liverpool Citysafe
Total of funds		 Balance at
1 April 2021
£
295,195
618,239
913,434
-
19,320
-
2,471
8,458
5,000
-
-
-
-
35,249
948,683		 Income
£
-
10,252
10,252
54,063
-
5,000
2,500
-
-
4,048
5,058
5,000
6,500
82,169
92,421		 Expenditure
£
(41,467)
(175,547)
(217,014)
(54,063)
(19,320)
(1,250)
(4,971)
(1,009)
-
(3,005)
(4,009)
-
(901)
(88,528)
(305,542)		 Balance at
31 March
2022
£
253,728
452,944
706,672
-
-
3,750
-
7,449
5,000
1,043
1,049
5,000
5,599
28,890
735,562

Page 27

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Statement of funds (continued)

Unrestricted general funds

Funds which are available for use or retention at the discretion of the directors, in accordance with the Charity’s objects.

Unrestricted designated funds

The Trustees have chosen to redesignate a number of reserves during the year which support the growth and long term sustainability of the charity.

Restricted funds

Liverpool City Council - early years funding depending on age and circumstances of children.

Other grants - funding for family activities and nursery playground equipment.

Big Lottery – to provide high quality childcare services and support to families through courses and activities for adults.

Masonic – funding specifically for away days and providing fun activities for families.

Rathbone - funding for school holiday activities.

Steve Morgan Foundation - emergency fund so that services could continue during the pandemic.

Medicash - emergency fund received so that services could continue during the pandemic.

Community Foundation - violence reduction programme, funding music therapy sessions.

Bauer Radio S C - to provide food suppot during lockdown.

Merseyside Play - fund to provide food provisions.

LIV Char VHOF - the funding enables us to provide a holiday club that provides structured and creative activities such as outdoor play, arts and crafts, music and games, sports and science activities and many more. The aim of the club is to support children to take part in a range of physical activities daily to support their understanding of the importance of and duration of physical activity that is required each day and the negative impact of sedentary behaviour on children in their age group. Its purpose is also to ensure that all children who receive free school meals still receive a healthy meal/breakfast/snack each day. All children taking part receive a healthy range of meals, snacks and drinks daily. We also plan at least one trip/outing. This enables socially isolated children to enjoy and experience things that other children do which supports their cultural capital.

Screwfix Foundation - support projects that will fix, repair, maintain and improve properties and community facilities specifically for those in need within the UK.

Liverpool Citysafe - funding the parental activities such as coffee mornings, drop in sessions, health and wellbeing sessions and family events/trips that will help to develop friendships and strengthen parental relationships, reduce the amount of time parents may have to stay in a conflict situation (at home), provide a means of therapy through relaxation, yoga, pampering sessions. Also developing communication skills, access to services and even careers support.

Page 28

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Statement of funds (continued)

360 Rise - community investment grant support, provide Christmas food parcels, for 34 families that Centre 56 supports.

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
26,074
Current assets
432,303
Creditors due within one year
(56,485)
Total
401,892		 Restricted
funds
2023
£
-
18,024
-
18,024		 Total
funds
2023
£
26,074
450,327
(56,485)
419,916

Analysis of net assets between funds - prior year

Unrestricted
funds
2022
£
Tangible fixed assets
7,639
Current assets
813,989
Creditors due within one year
(114,956)
Total
706,672		 Restricted
funds
2022
£
-
28,890
-
28,890		 Total
funds
2022
£
7,639
842,879
(114,956)
735,562

Page 29

Centre 56 Limited

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

16. Related party transactions

Redwing Living Limited, a company under common control, incurred costs of £293 (2022 - £Nil) from Centre 56. The creditor at year end was £293 (2022 - £Nil).

M&Y (Regenda Partnership) Limited, a company under common control, charged income of £1,445 (2022 - £1,340) to Centre 56. The creditor at year end was £962 (2022 - £2,407).

Regenda Limited, the parent company, incurred costs of £74,852 (2022 - £92,078) from Centre 56. The creditor at year end was £19,577 (2022 - £94,430).

Petrus Community, a company under common control, incurred costs of £124 (2022 - £2,666) from Centre 56. The debtor at year end was £Nil (2022 - £124).

The Learning Foundry Limited, a company under common control, incurred costs of £125 (2022 - £125) from Centre 56. The debtor at year end was £Nil (2022 - £125).

17. Controlling party

The Charity's immediate and ultimate parent company is Regenda Limited, a company incorporated in England and Wales with the registered office of The Foundry, 42 Henry Street, Liverpool, L1 SAY.

As at 31 March 2023, the largest and smallest group in which the results are consolidated is that headed by Regenda Limited. The consolidated accounts of the company are available to the public and may be obtained from its registered office: The Foundry, 42 Henry Street, Liverpool, L1 SAY. No other group accounts include the results of the Charity.

Page 30