**Charity Registration No. 516988** **Company Registration No. 01929402 (England and Wales)** **HEREFORD CENTRE FOR NATURAL HEALTH** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2021** **PAGES FOR FILING WITH REGISTRAR** ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Dr B Fraser (Chair)| |---|---| ||Mr A Lawson| ||Dr P Overstall| ||Mrs J James| ||Ms R Kettel| ||Mrs P Steele| ||Mrs J Goodridge| |**Secretary**|Mrs J Ablett| |**Charity number**|516988| |**Company number**|01929402| |**Registered office**|Eastholme Avenue| ||Belmont| ||Hereford| ||Herefordshire| ||HR2 7XT| |**Independent examiner**|Hawkins Priday Ltd| ||5 Bridge Street| ||Hereford| ||HR4 9DF| ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Independent examiner's report|5| |Statement of financial activities|4| |Balance sheet|6| |Notes to the financial statements|7 - 13| ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ The trustees present their report and financial statements for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and Activities** The Charity's object and its principal activity continues to be that of providing premises and services for p ractitioners, therapies, answering queries about natural health and complementary therapies and participating in events which provide information to the public. The Charity's main objectives during 1 April 20 20 to 31 March 20 21 were: To promote alternative and natural approaches to health in addition to maintain the services and premises of the Centre. ## **Public benefit** We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set. ## **ACHIEVEMENTS AND PERFORMANCE** ## **Charitable activities** Referring to the Objectives, our strategies for achieving these are: The Charity continued to offer free back and spinal checks during the year, as well as opportunities to sample free trial treatments and mini-consultations with therapists who practice at the centre. Special offers were also in place for a period of time where members of the public could ob t ain a reduced rate for their first appointment. Benefit : Members of the public are able to access an alternative approach to their diagnosis and gain information and understanding about their state of health and well-being. The **W ebsite** for Hereford Centre for Natural Health is being accessed regularly, as the website statistics indicate. The website has now been completely updated and is used in tandem with the Centre's Facebook page and Twitter account. The year has seen a further increase in use of social media to promote the Centre facilities. It is also used to convey news and information about alternative forms of treatment to a wider public. Benefit : Information on the C entre, the therapies it has available and promotions that are offered can be readily accessed by the public. This provide s a form of free advertising. The Charity maintains a **Bursary Fund** , which is used to subsidise the cost of treatments for those who might not otherwise be able to afford treatment at the Centre. In addition, all therapists offer at their discretion, reduced fees to members of the public. Practitioners would normally go out into the community to give talks and take part in public events to enable a wider interface with the public. However, Covid 19 restrictions have curtailed the activity this year. Benefit : Members of the public, who might not otherwise find out about alternative approaches to health, are given an understanding of the variety of therapies which may be of use to help improve their well-being. - 1 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Problems Encountered** The Centre was forced to close down on 24 March 2020, following Government Guidelines on Covid 19. The 3 paid reception staff were placed onto the Government Furlough scheme which was supplemented by the Centre. The Centre was then reopened on 7 July 2020 with restricted opening hours, which has remained in place to date. ## **FINANCIAL REVIEW** The total income achieved in the year was £34,307 which was £2536 more than the previous year, but this year's expenditure of £35,374 was £498 more than the previous year, resulting in an overall deficit of £1,067. ## **Going concern** The trustees are of the view that the Charity is a going concern. ## **Reserves policy** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure , so £12,000 is kept in a high interest fixed term deposit account . The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **Plans for future periods** To continue to maintain the services and premises of the Centre and to promote alternative and natural approaches to health. To increase the number of therapists using the centre and therefore increase the number of clients. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Dr B Fraser (Chair) Mr A Lawson Dr P Overstall Mrs J James Ms R Kettel Mrs P Steele Mrs J Goodridge ## **Recruitment, appointment and training of new Trustees** Trustees were originally recruited from three different sectors - 3 practitioners, 3 doctors and 3 lay people. Currently we have 4 practitioners, 1 retired Hospital Consultant and 2 lay people. Practitioners may take on the role of a Trustee once they have been at the Centre for a few years. Other Trustees are recruited usually by recommendation by someone connected at the Centre. New Trustees have some training sessions with existing Trustees who explain all of the day to day workings, policies and procedures. The accounts of the clinic are made available, as are the Minutes of Management Meetings, Practitioner Meetings and AGMs. Trustees are made aware of Charity law, and have their legal role and responsibilities explained. They are provided with the latest Charity Commission Newsletter and direction to the Charity Commission website. - 2 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Organisational structure** The Charity is organised so that the Trustees meet as often as is required in order to manage its affairs and oversee the management of the Centre. Mrs J A Stones (Trustee) has recently remarried and taken the new name of Mrs J A James. There are 3 paid reception staff who manage the day to day organisation of the Charity. The trustees' r eport was approved by the Board of Trustees. ## **Dr B Fraser (Chair)** Trustee Dated: 31 January 2022 - 3 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2021**|**2020**| ||**Notes**|
**£**|**£**| |**Income from:**|||| |Charitable activities|**4**|19,080|31,619| |Investments|**3**|175|152| |CV grant income||15,052|-| |**Total income**||34,307|31,771| |**Expenditure on:**|||| |Charitable activities|**5**|35,374|34,876| |**Net expenditure for the year/**|||| |**Net movement in funds**||(1,067)|(3,105)| |Fund balances at 1 April 2020||91,276|94,381| |**Fund balances at 31 March 2021**||90,209|91,276| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 4 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF HEREFORD CENTRE FOR NATURAL HEALTH** I report to the trustees on my examination of the financial statements of Hereford Centre for Natural Health (the charity) for the year ended 31 March 2021. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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 financial statements to be reached. Mr Kelvin Paul Alexander FCCA Hawkins Priday Ltd Chartered Certified Accountants 5 Bridge Street Hereford HR4 9DF Dated: 31 January 2022 - 5 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2021**_ |**Notes**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds - general|**2021**
**£**
3,452
23,280
26,732
(1,378)|**£**
64,855
25,354
90,209
90,209
90,209|**2020**
**£**
3,490
21,831
25,321
(234)|**£**
66,189
25,087
91,276
91,276
91,276| |---|---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 31 January 2022 Dr B Fraser (Chair) **Trustee** ## **Company Registration No. 01929402** - 6 - **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **Charity information** Hereford Centre for Natural Health is a private company limited by guarantee incorporated in England and Wales. The registered office is Eastholme Avenue, Belmont, Hereford, Herefordshire, HR2 7XT. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of any discounts allowed. - 7 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.5 Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold land and buildings 2% on cost Leasehold improvements 5% on cost Fixtures and fittings 33.3% on cost and 25% on reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised. - 8 - **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans , are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less . ## **1.10 Taxation** The charity is exempt from corporation tax on its charitable activities. ## **1.11 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. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2021**|2020| ||**£**|£| |Interest receivable|175|152| - 9 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**4**|**Charitable activities**||| |---|---|---|---| |||**Income**|Income| |||**2021**|2020| |||**£**|£| ||Rental income and fees|18,967|30,993| ||PDQ charges|113|353| ||Advertising contributions|-|273| |||19,080|31,619| |**5**|**Charitable activities**||| |||**Expenditure**|**Expenditure**| |||**2021**|
**2020**| |||**£**|
**£**| ||Staff costs|15,004|
14,679| ||Share of support costs (see note 8)|16,266|
16,597| ||Share of governance costs (see note 8)|4,104|
3,600| |||35,374|
34,876| |**6**|**Net movement in funds**|**2021**|**2020**| |||**£**|**£**| ||Net movement in funds is stated after charging/(crediting)||| ||Depreciation of owned tangible fixed assets|1,920|2,114| |**7**|**Trustees**||| None of the trustees (or any persons connected with them) received any remuneration during the year, but 1 of them w as reimbursed a total of £ 466 for laundry services (2020 - 1 w as reimbursed £ 1,976 ). - 10 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **8 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
5,398
-
Depreciation
1,920
-
Water rates
185
-
Insurance
255
-
Light and heat
766
-
Telephone
1,088
-
Postage and stationery
200
-
Advertising
876
-
Fees and subscriptions
273
-
Laundry and cleaning
826
-
Consumables
625
-
Office general supplies
1,176
-
Service charges
658
-
Repairs, renewals and maintenance
1,638
-
Bank charges
382
-
Accountancy
-
4,104
16,266
4,104
Analysed between
Charitable activities
16,266
4,104|**2021**
**£**
5,398
1,920
185
255
766
1,088
200
876
273
826
625
1,176
658
1,638
382
4,104
20,370
20,370|2020
£
5,066
2,114
199
311
792
1,212
214
965
276
2,333
294
685
823
791
522
3,600
20,197
20,197| |---|---|---| Governance costs includes payments to the accountants of £ 500 (2020 - £ 500 ) for independent examination fees. ## **9 Employees** The average monthly number of employees during the year was: ||**2021**|**2020**| |---|---|---| ||**Number**|**Number**| ||3|5| |**Employment costs**|**2021**|**2020**| ||**£**|**£**| |Wages and salaries|20,170|19,537| |Other pension costs|232|208| ||20,402|19,745| - 11 - **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **9 Employees** ## **(Continued)** Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds. There were no employees whose annual remuneration was more than £60,000. ## **10 Tangible fixed assets** |**Leasehold**
**land and**
**buildings**
**Leasehold**
**improvements**
**Fixtures and**
**fittings**
**£**
**£**
**£**
**Cost**
At 1 April 2020
69,211
3,875
5,760
Additions
-
-
585
At 31 March 2021
69,211
3,875
6,345
**Depreciation and impairment**
At 1 April 2020
6,920
617
5,119
Depreciation charged in the year
1,384
194
342
At 31 March 2021
8,304
811
5,461
**Carrying amount**
At 31 March 2021
60,907
3,064
884
At 31 March 2020
62,291
3,257
641
**11**
**Debtors**
**2021**
**Amounts falling due within one year:**
**£**
Trade debtors
343
Prepayments and accrued income
3,109
3,452
**12**
**Creditors: amounts falling due within one year**
**2021**
**£**
Other creditors
1,070
Accruals and deferred income
308
1,378|**Total**
**£**
78,846
585
79,431
12,656
1,920
14,576
64,855
66,189
**2020**
**£**
2,363
1,127
3,490
**2020**
**£**
128
106
234| |---|---| - 12 - ## **HEREFORD CENTRE FOR NATURAL HEALTH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **13 Related party transactions** ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |Aggregate compensation|466|1,976| During the year the charity entered into the following transactions with related parties: One trustee, Janet James, was paid £466 for laundry services. - 13 -