Charity registration number 516988
Company registration number 01929402 (England and Wales)
HEREFORD CENTRE FOR NATURAL HEALTH
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 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 | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 14 |
HEREFORD CENTRE FOR NATURAL HEALTH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their report and financial statements for the year ended 31 March 2022.
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 practitioners, 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 2021 to 31 March 2022 were:
To promote alternative and natural approaches to health in addition to maintain the services and premises of the Centre. In addition, to ensure a safe working practice in line with the Government Guidelines concerning the Covid 19 pandemic.
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 obtain 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 Website 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 Centre, the therapies it has available and promotions that are offered can be readily
accessed by the public. This provides 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.
Problems Encountered
Income to the Centre has been reduced as the practitioners very slowly returned to working at the Centre. The 3 paid reception staff were placed onto the Government Furlough scheme which was supplemented by the Centre and this continued until October 2021.
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HEREFORD CENTRE FOR NATURAL HEALTH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
FINANCIAL REVIEW
The total income achieved in the year was £32,119 which was £2,188 less than the previous year and this year's expenditure of £37,196 was £1,822 more than the previous year, resulting in an overall deficit of £5,077.
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 and previously £12,000 was kept in a high interest fixed term deposit account. However, with our reduced income and some recent expensive costs on flooring and central heating to finance we needed to draw on this account to cover some of our costs. We estimate that 3 months running costs at present would be £7,500 so we are opening a new deposit account with this amount allocated. 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.
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. There are 3 paid reception staff who manage the day to day organisation of the Charity.
The trustees' report was approved by the Board of Trustees.
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HEREFORD CENTRE FOR NATURAL HEALTH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Dr B Fraser (Chair)
Trustee Dated: 17 August 2022
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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 2022.
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:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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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
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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: 19 August 2022
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HEREFORD CENTRE FOR NATURAL HEALTH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Charitable activities | 5 | 28,670 | 19,080 |
| Investments | 3 | 50 | 175 |
| CV grant income | 4 | 3,399 | 15,052 |
| Total income | 32,119 | 34,307 | |
| Expenditure on: | |||
| Charitable activities | 6 | 37,196 | 35,374 |
| Net expenditure for the year/ | |||
| Net movement in funds | (5,077) | (1,067) | |
| Fund balances at 1 April 2021 | 90,209 | 91,276 | |
| Fund balances at 31 March 2022 | 85,132 | 90,209 |
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.
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HEREFORD CENTRE FOR NATURAL HEALTH
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Unrestricted funds - general |
2022 £ 2,986 16,228 19,214 (1,319) |
£ 67,237 17,895 85,132 85,132 85,132 |
2021 £ 3,452 23,280 26,732 (1,378) |
£ 64,855 25,354 |
|---|---|---|---|---|
| 90,209 | ||||
| 90,209 | ||||
| 90,209 |
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 2022.
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 17 August 2022
Dr B Fraser (Chair)
Trustee
Company registration number 01929402
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 amounts 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.
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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.
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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.
1.13 Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 50 | 175 |
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
4 CV grant income
Government grants were received of £3,399 (2021 - £15,052) for claims made under the Coronavirus Job Retention Scheme made available by the Government during the Coronavirus pandemic. All relevant qualifying conditions were met in furloughing certain employees for specified periods whilst the centre was unable to operate at full capacity due to national lockdowns imposed by the Government during this period.
5 Charitable activities
| Income 2022 £ Rental income and fees 28,265 PDQ charges 405 28,670 |
Income 2021 £ 18,967 113 |
|---|---|
| 19,080 |
6 Charitable activities
| **Expenditure ** | Expenditure | ||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Staff costs | 16,693 | 15,004 | |
| Share of support costs (see note 10) | 16,693 | 16,266 | |
| Share of governance costs (see note 10) | 3,810 | 4,104 | |
| 37,196 | 35,374 | ||
| 7 | Net movement in funds | 2022 | 2021 |
| £ | £ | ||
| Net movement in funds is stated after charging/(crediting) | |||
| Depreciation of owned tangible fixed assets | 2,038 | 1,920 |
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year or reclaimed any expenses incurred on behalf of the charity.
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
9 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| 3 | 3 | |
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 22,267 | 20,170 |
| Other pension costs | 267 | 232 |
| 22,534 | 20,402 |
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.
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Staff costs 5,841 - Depreciation 2,038 - Water rates 238 - Insurance 254 - Light and heat 912 - Telephone 1,088 - Postage and stationery 254 - Advertising 251 - Fees and subscriptions 280 - Laundry and cleaning 1,851 - Consumables 281 - Office general supplies 868 - Service charges 659 - Repairs, renewals and maintenance 1,223 - Bank charges 655 - Accountancy - 3,810 16,693 3,810 Analysed between Charitable activities 16,693 3,810 |
2022 £ 5,841 2,038 238 254 912 1,088 254 251 280 1,851 281 868 659 1,223 655 3,810 20,503 20,503 |
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 |
Governance costs includes payments to the accountants of £500 (2021 - £500) for independent examination fees.
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
| 11 Tangible fixed assets Leasehold land and buildings Leasehold improvements Fixtures and fittings £ £ £ Cost At 1 April 2021 69,211 3,875 6,345 Additions - 4,122 299 At 31 March 2022 69,211 7,997 6,644 Depreciation and impairment At 1 April 2021 8,305 811 5,461 Depreciation charged in the year 1,384 308 346 At 31 March 2022 9,689 1,119 5,807 Carrying amount At 31 March 2022 59,522 6,878 837 At 31 March 2021 60,907 3,064 884 12 Debtors 2022 Amounts falling due within one year: £ Trade debtors 285 Prepayments and accrued income 2,701 2,986 13 Creditors: amounts falling due within one year 2022 £ Trade creditors 42 Other creditors 956 Accruals and deferred income 321 1,319 |
Total £ 79,431 4,421 |
|---|---|
| 83,852 | |
| 14,577 2,038 |
|
| 16,615 | |
| 67,237 | |
| 64,855 | |
| 2021 £ 343 3,109 |
|
| 3,452 | |
| 2021 £ - 1,070 308 |
|
| 1,378 |
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HEREFORD CENTRE FOR NATURAL HEALTH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
14 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | 1,321 | 466 |
During the year the charity entered into the following transactions with related parties: One trustee, Janet James, was paid £1,321 for laundry services.
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