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2020-08-30-accounts

Charity Registration No. 518951

Company Registration No. 02050597 (England and Wales)

ROTUNDA LIMITED

COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Beverley Bertwistle
Philip Cashen (Chair)
Charlotte Chadwick
William Connolly
Philip Corfield
Victoria Cowley
Annette Johnson
Paula McCabe
Richard Meegan
Keith Housley (Appointed 8 June 2020)
Chief Executive Officer Maxine Ennis
Secretary/ Finance Manager Jayne Eccleston
Charity number 518951
Company number 02050597
Principal address Rotunda College
109 Great Mersey Street
Liverpool
Merseyside
L5 2PL
Registered office Rotunda College
109 Great Mersey Street
Liverpool
Merseyside
L5 2PL
Independent examiner Mr Peter Taaffe FCA CTA DChA
BWM
Castle Chambers
43 Castle Street
Liverpool
L2 9SH
Bankers Lloyds Bank plc
Merchants Court
2-12 Lord Street
Liverpool
L2 1TS

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent examiner's report 9
Statement of financial activities 10 - 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report and financial statements for the year ended 31 August 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's memorandum and articles of association , 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

The main objective of the charity is to advance education by the development of useful knowledge and skills benefitting adults and young people, especially those who have suffered or are suffering disadvantage and exclusion.

The organisation achieves this through a number of specific operational areas which are detailed below.

Public Benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

2020 the year we stayed at home to survive – and thrived!

Over the years Rotunda has seen many challenges and changes, nothing compares to the unprecedented challenges that we faced this year, without warning or preparation. However, despite these challenges, which we rose to admirably, we remain resilient and financially sustainable.

As we started out on our journey last September we were confident that we were continuing with our commitment to educate and train our local community and provide opportunities for social mobility and regeneration locally. With the support of our adult education contracts from Liverpool City Region Combined Authority , we had committed to supporting local residents into education, removing barriers that prevent learning and helping them achieve sustainable employment.

As our newly developed team settled in and worked together to meet our targets, we hit a major hurdle with the global pandemic and at the end of March 2020 when we were instructed by government to close down our building, send our staff home and where possible work from home. The following weeks saw us take some major decisions, what services and support did our local community need and how did we provide this logistically. We were fortunate to receive financial support from Reaching Communities National Lottery , for core funding to maintain our core staff team in place for 6 months, in addition, Liverpool City Region reacted quickly to support digital inclusion and funded equipment to assist in staff working from home and the delivery of all our services.

Community:

Our Welfare Advice and Counselling Service saw and immediate increased demand. We continued to provide our counselling service, via telephone throughout lockdown and saw the demand increase 107%. Many of the people we spoke to were experiencing high levels of anxiety and increased depression. Some people needed full counselling sessions, others need reassurance and information to help them understand their personal situations, due to covid, furlough or redundancy. We have also seen an increase in fear around death, losing loved ones and not having the opportunity to say goodbye and guilt in not having been able to attend funerals. All of these issues and many more are severely impacting people’s mental health, we have been able to continue with this support and will continue to develop this service in 2020/21 with the help from The Steve Morgan Foundation , who have agreed to continue funding our Mental Health Co-ordinator for the next 2 years .

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

In addition to counselling we have also supported our community with Welfare Advice and Guidance, ensuring people understand their Furlough arrangements, benefits claims, housing issues any issue that puts them in a crisis situation. We have negotiated rent arrears, council tax payments and assisted in getting additional monies for people who have experienced unplanned for expenses, such as funerals that have left them without money for essential shopping items. On average we support 25/30 people per week depending on the level of help that is required. We were grateful to receive funding from Charities Aid Foundation to help with this service.

Via the Good Neighbour Scheme, we were asked to shop for individuals who were vulnerable and shielding, for some people this may have been for an individual shop to support them while family were away or not well for other we have supported them through the whole 15 weeks . This was managed and delivered by our staff team, who all gave their time voluntarily to do this. During the 2 nd lockdown we were contacted once again and asked if we would get involved in supporting our local community with their shopping and our staff have once again stepped up to the challenge.

We supported partner organisations with their food delivery and parcels to vulnerable people in their local postcode areas and who were struggling for support to get food out to vulnerable people. Our staff have sorted, packed and delivered food.

Our informal Foodbank , following a hiccup with the theft of our food shed we were fortunate that 2 local businessmen heard our plea for help and from the surplus supplied to us from M&S Aintree and Aldi Salop Street , local residents saw its own drama when our shed was stolen, however, once again our local community rallied and 2 young men starting their own business, A & M Bespoke Designs provided us with a new shed and we called for community to name and own the shed, ultimately ‘Right Fed Shed’ was installed and immediately we saw an increase in demand for food. It’s unique in that people can call in take whatever they need without having to provide any ID or answer any questions. For most people this is helping to supplement their shopping bills and has helped them to provide for their children during the school holidays. We have also seen a rise in elderly people coming to us for help via this informal setup. We started out supporting at least 30/40 families per week, recently this has increased dramatically and we are seeing at least this many families per day.

Everton in the Community - EITC and The Florrie have also provided additional food supplies and parcels to us, so that we can give them out to those most in need in our community, without all of their generosity we wouldn’t be able to meet demand.

Having received funding from Liverpool Council for Voluntary Service- LCVS and Merseyside Play Action Council - MPAC we have been able to provide hot meals for those people most vulnerable in our community, roast dinners, cottage pies, hotpots/scouse. These meals have been home cooked on the premises and delivered hot to local residents, not only did this mean these families had a nutritious meal provided but also that we were able to keep in contact with some of the families we knew were living in difficult situations and who may need a little additional support or advice. Some of these meals have gone to single people, who have been struggling with benefits, following redundancy or reduced hours in work and who couldn’t afford gas or electric to even heat food up.

The majority of our community events this year were cancelled due to the restrictions, we did however, manage to provide a small scale Children’s Summer Fun Hub and with the help of partners Rotunda Inclusive Hub , we were able to provide physical activity for 3 days per week, 4 weeks in August, for 20 – 30 children per week . This was designed to ensure that children and young people, many of them with Learning Disabilities (LD) and/or Mental Health (MH) issues had the opportunity to get out of the house, enjoy some fresh air, fun and the opportunity to express any concerns they might have and gain the support they need. We were also able to provide them with a nutritious lunch and health food to take home for their families to share. This has been hugely successful and has resulted in The Steve Morgan Foundation supporting a new initiative; ‘Homework Hub and Grub’ for the next 2 years, this will be launched in January 2021 and will provide support for young people 11+ the opportunity to gain physical activity, food, support with homework and more importantly the development of tools and skills that will help with their mental well-being and resilience for life!

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Jo Malone London have continued to sponsor our Community Garden this year and their staff were able to visit and provide practical support during the summer. Our Community well-being garden hasn’t been used as much as we would have liked this year, but is looking wonderful and ready for next year’s events and seeing the community own, use and support the activities and their heritage for future generations to enjoy. We have featured the well-being garden in social media posts throughout lockdown and the summer to make sure that people could enjoy the experience, albeit virtually.

Rotunda have always reacted and supported the needs of our community and we will continue to do that as long as we can and have the resources to facilitate what is needed, however, we are aware that we will reach saturation point and without more staff and volunteers to help us we will have to monitor and tailor what we can achieve very closely.

Education:

Due to the national lockdown, our education team had to completely change delivery methods overnight to ensure that our learning was not only socially distanced but continued to be fully inclusive to everyone from the city region who wanted to enrol and learn. They changed our very traditional classroom based education into inclusive learning – the world had changed and we had to follow this lead. All of our educational programmes are delivered via remote learning models (into your home) and we now have learners who are working online and for those who are digitally excluded we posted/delivered workbooks to their front doors to make sure they could engage. Our teachers are giving tutorials over the phone on a one to one basis, video calls on a one to one and group basis, have set up group chats so that the learners have peer support and have developed the most creative resources to ensure that distance learning is a success. We delivered 124 qualifications during the April to August period. In another change to our delivery we are now focused on employer led programmes and we are working closely with JCP and the private sector on the Sector Based Work Academy model which is able to guarantee interviews and jobs outcomes for our learners upon successful completion of the programmes. We will continue to develop these academies in order to meet the need and play our part in ‘Building Back Better’.

Our work with partners to deliver educational programmes is so important to us and our partnership with VOLA has allowed us to deliver basic IT skills to 77 members of our community during the past year. This has included engagement with economically inactive people who by the end of the programme have begun to look for employment, working with those who have never switched on a computer who are now using video calls to contact family and friends and job outcomes for people who have learnt how to use the internet for job search.

New Futures is a programme to work with young people who are not in education, training or employment or who are at risk of this. Our delivery of this programme (as part of the VOLA consortia ) was put on hold in March as schools physically closed thus meaning that our classroom delivery with young people was equally put on hold. We were able to work with our awarding body with regard to these young people and undertake a predicated grades process, and fantastic 34 qualifications were achieved for the young people in the New Futures programme .

In addition, we have (as part of the VOLA consortia ) delivered 32 tablets and sim cards to people who are digitally excluded in the North Liverpool area to break isolation and help them to connect to the outside world. This programme has seen our older members of the community enter the realms of the world wide web – we have one of our teachers providing telephone tutorials for them to teach them how to use the internet safely and do video calls with their family members. This was funded via LCR Cares and has provided a huge impact to our community. The Good Things Foundation have supplied us with a further 60 smart phones and internet access which were distributed to the local community and those people who were digitally excluded to maintain contact with their families and access online learning.

We have continued to work with the probation service and deliver our Merseyside Community Rehabilitation Company contract, we have seen a 60% increase in referrals for help with welfare advice, benefits, debt or housing and counselling and educational courses. For many of these service users it’s the first time they have accessed education since leaving formal education and we are delighted that 41 service users have gained qualifications enabling them to apply for jobs locally.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Strategic Partnerships:

Our CEO has focussed on developing and maintaining key strategic partnerships; locally, regional and nationally, through partnership working we have and will continue to grow and survive in the face of adversity.

These partnerships have opened doors for opportunities for service development, delivery and funding and will play a major part in Rotunda’s growth and development for the future

Locality:

This ongoing strategic partnership is as strong as it has been for the past three years. Locality provide support to us in a number of different ways, funding advice, strategic guidance and national profile. Our CEO has been a board member of Locality for three years.

Liverpool City Region Combined Authority (LCRCA):

Our partnership with LCRCA continues to grow from strength to strength. We are a contractual delivery partner for them on the Adult Education Budget delivery, we delivered both community food support and digital inclusion support with them over the lockdown period and we now have formal representation on Social and Solidarity Economy Panel via our CEO.

Our plans for the development of Rotunda’s physical assets were equally supported by LCRCA through a financial grant of £589K. This will support the refurbishment of our community anchor building to safeguard this for the future of our organisation and the community it serves.

Financial review

The results for the year and the charity's financial position at the end of the year are shown in the attached financial statements.

Total income in the year was £830,113 (2019: £636,755) and expenditure was £753,355 (2019: £643,409). The surplus after transfers on unrestricted funds for the year is £155,265 (2019: £45,413).

At the year end the unrestricted funds were £559,328 (2019: £404,063) with free reserves of £106,427 (2019: £(13,641)). The restricted funds were £1,114,149 (2019: £1,192,656).

Reserves policy

The charity aims to increase free unrestricted funds to a level equivalent to three months' total expenditure. The trustees consider that reserves at this level will provide financial stability whilst additional funding is sought. The trustees are mindful that unrestricted reserves are less than planned and are seeking ways in which to generate additional unrestricted funds with a view to maintaining a level equivalent to 3 months' expenditure.

Risk policy

The Trustees have examined the major strategic, business and operational risks which the charitable company may face and believe that all major risks have been identified. The Trustees have adopted a formal Risk Assessment procedure and have established systems to ensure that the necessary steps can be taken to mitigate these risks.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Future Plans:

As we reflect on 2020 and the challenges we faced we can celebrate the diversity, resilience and commitment of our staff team. This year has seen Rotunda grow and develop in ways that weren’t anticipated, but actually gave us the time to re-evaluate the needs of our community and make sure that our delivery methods don’t exclude anybody that needs help, guidance and educational direction that gives them a better quality of life. Our staff team and volunteers have shown resilience and creativity in meet the needs and challenges of 2020, whilst maintaining the core values of Rotunda.

We have an exciting year ahead of us 2020/2021 will see the development of some much awaited and needed new services:

Homework Hub and Grub club for our young people, age 11+ who have had a year of disruption to their education and social networks, we are aware that many of our young people have seen and heard far more than they should ever have to be exposed to in their own homes. More than ever, they need a safe environment to relax, have fun and gain the educational and life skills that will give them aspirational goals and resilience, creating strong individuals and therefore strong communities, supporting each other through adversity. (funded by Steve Morgan Foundation for 2 years)

Our Well-being Centre , will be operational with thanks to The Mayoral Inclusive Growth Fund - R Place will provide a safe place for young people to access well-being activities and programmes for long term mental health – initially the provision of a safe place to rest engaging with the services on offer at Rotunda; counselling if required, debt management, building confidence and self-esteem. Eventually leading on to them taking educational courses, developing their life chances and employability. Kier Building – North West, have agreed to work with us on this project, using the opportunity to develop the skills of their own staff team, whilst providing 10 local young people with a placement in construction which could lead on to a longer term apprenticeship, developing construction skills which are needed in the local workforce. The ultimate aim that these young people gain paid employment, whilst also having real input into the building of a lasting legacy for the young people in our community.

The development of our Women’s Hub, which we are in negotiations for DWP to fund, will come online on 2021. Our focus will be on supporting and encouraging the women in our community to reach out for help, retrain, refocus their skills, build confidence, self-esteem, provide techniques to manage their anxiety and using creative skills understand the barriers and obstacles they have to achieving the life they want. They will have the opportunity to take our accredited courses and develop work based skills, using the Bistro as a training ground for this and putting knowledge to the test via work placements and voluntary work.

With our corporate employment partners in the city we will help them to achieve interviews and gain paid employment, breaking the poverty cycle that many find themselves in at the moment due to unprecedented circumstances beyond their control. This will be a huge achievement for both the area and Rotunda, an organisation that can deliver all enabling services under one roof eradicating the chances of these women slipping through the net. A service led by women, for women – the lived experience providing, understanding, empathy and commitment to see these women empower themselves to change their own lives as well as the lives of future generations will see this project stand out as a unique offer in the city as we recover from the after effects of the 2020 pandemic.

Our plans for the growth and development of our already successful nursery are underway with the potential of a new building which will be home to a pre-school room, breakfast and afterschool facilities as well as homework and school holiday clubs. Our aim is to have this in place by summer 2021.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

As our educational services grow and develop into new areas, we know that our employer led offers will be crucial to the re-growth of our wonderful city. Our strategy is to engage employers to upskill their existing workforces and to support with recruitment and training for new staff members. We will be offering employers the opportunity to develop Mental Health Ambassadors in every work place, with the knowledge and understanding of who, where and when to refer people for additional support. We will also be offering all our learners the opportunity to gain Mental Health Awareness qualifications alongside all other work based qualification, creating strong robust support mechanisms in all of our employer led partners. The Albert Dock Foundation are leading the way on this and advocating all their member take advantage of the opportunity for their staff.

107 Great Mersey Street is our Enterprise Centre and is home to small, like minded organisations who serve our community and compliment the work of Rotunda. Although this will soon be home to a fully focused women’s service – a training facility to upskill and support women returners to the labour market in these challenging times, we will retain the ethos of our Enterprise Centre and provide office space and support for these organisations moving forward and help some of our women to build their own businesses, if that’s the direction they want to travel.

We are incredibly proud of our achievements in what is one of the most challenging years globally for individuals and the economy. Rotunda is a small organisation within the city, but it’s community is a true reflection of the city region and issues that have been faced and overcome through joint efforts. We will continue to develop and deliver to our community and be proud to be part of a city that never loses its spirit and in times of adversity come together to support each other in any way that they can; individuals, communities and organisations working together to ‘Build Back Better’.

Structure, governance and management

The charity is a company limited by guarantee, incorporated on 28 August 1986 and registered as a charity on 17 July 1987. The charity was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association.

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:

Beverley Bertwistle Philip Cashen (Chair) Charlotte Chadwick William Connolly Philip Corfield Victoria Cowley John Golledge (Retired 5 October 2020) Annette Johnson Paula McCabe Richard Meegan Keith Housley (Appointed 8 June 2020)

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Board of Trustees consists of at least seven but not more than eleven individuals.

The Board of Trustees may appoint any person nominated by any member of the Association as a member of the Board of Trustees.

No person who is not a member of the Association shall in any circumstances be eligible to hold office as a member of the Board of Trustees.

All trustees are asked to sign to confirm their eligibility to serve as a trustee and as a director. At the beginning of every meeting all Trustees and representatives are reminded of their obligation to declare an interest in any item and, if necessary, withdraw from further discussions and decision making on that subject.

The Board of Trustees met on a regular basis throughout the year.

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

A chief executive is appointed by the trustees to manage the day-to-day operations of the charity.

A Remuneration Committee will determine the salary of members of the Executive Team.

Asset cover for funds

Note 22 sets out an analysis of the assets attributable to the various funds.

Small company provisions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board of trustees

Philip Cashen (Chair)

Trustee

Dated: 26 January 2021

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees, who are also the directors of Rotunda Limited for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the 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.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ROTUNDA LIMITED

I report to the trustees on my examination of the financial statements of Rotunda Limited (the charity) for the year ended 31 August 2020.

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my examination, for this report, or for the opinions I have formed.

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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

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:

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 Peter Taaffe FCA CTA DChA

BWM Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9SH

Dated: 28 January 2021

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

Current financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from
Donations and legacies
3
59,669
-
Charitable activities
4
619,050
150,923
Other trading activities
5
462
-
Investments
6
9
-
Other incom e
7
-
-
Total income
679,190
150,923
Expenditure on:
Raising funds
8
1,623
-
Charitable activities
9
595,521
156,211
Total expenditure
597,144
156,211
Net (expenditure)/income
82,046
(5,288)
Transfers between funds
21
73,219
(73,219)
Net movement in funds
155,265
(78,507)
Reconciliation of funds
Fund balances at 1 September 2019
404,063
1,192,656
Fund balances at 31 August 2020
559,328
1,114,149		 Total
2020
£
59,669
769,973
462
9
-
830,113
1,623
751,732
753,355
76,758
-
76,758
1,596,719
1,673,477		 Total
2019
£
77,325
523,735
26,383
12
9,300
636,755
45,440
597,969
643,409
(6,654)
-
(6,654)
1,603,373
1,596,719

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The movement in funds detailed above complies with the requirements for a statement of changes in equity under FRS102.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

Prior financial year

Unrestricted
Restricted
funds
funds
2019
2019
Notes
£
£
Income from
Donations and legacies
3
50,885
26,440
Charitable activities
4
354,876
168,859
Other trading activities
5
26,383
-
Investments
6
12
-
Other incom e
7
9,300
-
Total income
441,456
195,299
Expenditure on:
Raising funds
8
45,440
-
Charitable activities
9
423,822
174,147
Total expenditure
469,262
174,147
Net expenditure
(27,806)
21,152
Transfers between funds
21
73,219
(73,219)
Net movement in funds
45,413
(52,067)
Reconciliation of funds
Fund balances at 31 August 2018
358,650
1,244,723
Fund balances at 31 August 2019
404,063
1,192,656		 Total
2019
£
77,325
523,735
26,383
12
9,300
636,755
45,440
597,969
643,409
(6,654)
-
(6,654)
1,603,373
1,596,719

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The movement in funds detailed above complies with the requirements for a statement of changes in equity under FRS102.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET

AS AT 31 AUGUST 2020

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
16
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Total net assets
The funds of the charity
Restricted funds
21
Unrestricted funds
Total charity funds		 2020
£
£
1,567,049
1
1,567,050
93,915
468,597
562,512
(387,398)
175,114
1,742,164
(68,687)
1,673,477
1,114,149
559,328
1,673,477		 2019
£
£
1,610,359
1
1,610,360
91,817
27,164
118,981
(61,203)
57,778
1,668,138
(71,419)
1,596,719
1,192,656
404,063
1,596,719

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET (CONTINUED)

AS AT 31 AUGUST 2020

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 August 2020.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 26 January 2021

Philip Cashen (Chair)

Trustee

Company Registration No. 02050597

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash generated from operations
26
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans
Net cash (used in)/generated from
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
(7,705)
9
-
(2,650)		 £
451,779
(7,696)
(2,650)
441,433
27,164
468,597		 2019
£
(39,120)
12
31,000
(2,761)		 £
17,654
(39,108)
28,239
6,785
20,379
27,164

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Charity information

Rotunda Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Rotunda College, 109 Great Mersey Street, Liverpool, Merseyside, L5 2PL.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's memorandum and articles of association, 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 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 accounts and as detailed in the Trustees’ report the Trustees have considered the impact of Covid-19 on the charity and 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 accounts.

1.3 Charitable funds

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.4 Income

All donations received are recognised at the time of receipt. Unless specifically designated, all income received from donations will be treated as unrestricted funds for the Charity to do with as they see fit.

Goods and services provided free of charge to the Charity are recognised as other income using the trustees' estimate of the amounts the Charity would have to pay in the open market for their equivalents.

Grants received are recognised at the time the charity becomes legally entitled to them. Any grants received that are restricted to future accounting periods are deferred and recognised in those future periods. Grants received for specific purposes are accounted for as restricted funds.

Rental income is accounted for on an accruals basis.

1.5 Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor.

Expenditure on charitable activities relate to the operation of the charity comprising of direct charitable expenditure to meet the objectives of the charitable company. Support and governance costs relate to the management and operation of the organisation and also compliance with constitutional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charity.

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. The investment property is included as tangible fixed assets and is measured at cost as the fair value cannot be measured reliably without undue cost or effort.

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:

Freehold land and buildings 2% per annum on a straight line basis Building Improvements 2% or 20% per annum on a straight line basis Office Equipment 25% reducing balance or straight line Motor vehicle 20% per annum on a straight line basis

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 net income/(expenditure) for the year.

1.7 Fixed asset investments

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Fixed asset investments are stated at cost.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.8 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 ) .

1.9 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.

1.10 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 and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.14 T axation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

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 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
24,669
-
Donated goods and
services
35,000
-
59,669
-		 TotalUnrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
24,669
26,885
26,440
35,000
24,000
-
59,669
50,885
26,440		 Total
2019
£
53,325
24,000
77,325

Donated goods and

services

Donated services are an estimate of the benefit of volunteer time based on hours spent and notional salary.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

4 Charitable activities

The advancement of education
C haritable activities
Services provided under contract
Performance related grants
Charitable rental income
Other income
Analysis by fund
Unrestricted funds
Restricted funds
5
Other trading activities
Bistro
6
Investments
Interest receivable		 2020
2019
£
£
499,582
243,539
89,714
66,813
150,923
168,859
28,914
43,630
840
894
769,973
523,735
619,050
354,876
150,923
168,859
769,973
523,735
UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
462
26,383
UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
9
12

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

7 Other income

8 UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
Other income (loss of earnings insurance cover)
-
9,300
Raising funds
UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
Bistro
Bistro food, drink and other consumables
1,623
17,175
Staff costs
-
28,265
1,623
45,440

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

9 Charitable activities

The advancement of education
Staff costs
Depreciation
Repairs and maintenance
Consultancy costs
Project costs
Advertising and subscriptions
Rates and insurance
Office costs
Travel and volunteer expenses
Other costs
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 August 2019
Unrestricted funds
Restricted funds		 2020
£
454,848
51,016
17,420
21,957
115,245
11,128
17,709
39,088
2,906
14,194
745,511
6,221
751,732
595,521
156,211
751,732		 2019
£
372,451
70,326
17,321
22,680
36,617
2,719
13,559
33,935
3,954
17,806
591,368
6,601
597,969
423,822
174,147
597,969

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

10 Support costs

Support
costs
Governance
costs
£
£
Accountancy
-
4,260
Legal and professional
-
1,961
-
6,221
Analysed between
Charitable activities
-
6,221		 2020
£
4,260
1,961
6,221
6,221		 Support
costs
Governance
costs
£
£
-
3,910
-
2,691
-
6,601
-
6,601		 2019
£
3,910
2,691
6,601
6,601

Support and governance costs are allocated to direct charitable activity.

Governance costs includes payments of £4,260 (2019 : £ 3,910 ) in respect of independent examination and accountancy fees.

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2019 : £ nil ).

12 Employees

Number of employees

The average monthly number of employees during the year was:

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs
Volunteer counselling and CSR		 2020
Number
20
2020
£
387,011
25,371
7,466
35,000
454,848		 2019
Number
22
2019
£
349,797
21,895
5,024
24,000
400,716

There were no employees whose annual remuneration was £60,000 or more.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

13 Tangible fixed assets

Freehold land
and buildings
Building
Improvements
£
£
Cost
At 1 September 2019
170,654
1,830,915
Additions
-
-
At 31 August 2020
170,654
1,830,915
Depreciation
At 1 September 2019
41,619
384,166
Depreciation charged in the year
3,413
37,039
At 31 August 2020
45,032
421,205
Carrying amount
At 31 August 2020
125,622
1,409,710
At 31 August 2019
129,035
1,446,748		 Office
Equipment
Motor vehicle
£
£
146,699
31,440
7,705
-
154,404
31,440
137,358
6,205
4,276
6,288
141,634
12,493
12,770
18,947
9,341
25,235		 Total
£
2,179,708
7,705
2,187,413
569,348
51,016
620,364
1,567,049
1,610,359

A Charge was issued on 12 October 2011 to the National Heritage Memorial Fund over 107 Great Mersey Street in accordance with the grant agreement dated 22 June 2011 between Rotunda Limited and the National Heritage Memorial Fund. The charge will last for 25 years from the agreement date.

The trustees consider that the net book value of tangible fixed assets is a true and fair representation of their value in use at the year end.

Land and buildings and building improvements includes investment property. The trustees deem approximately 20% is investment property producing rental income. The asset is shown under tangible fixed assets only.

14 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 September 2019 & 31 August 2020 1
Carrying amount
At 31 August 2020 1
At 31 August 2019 1

The company holds 100% issued shares in Rotunda Enterprises Limited, which was incorporated as a trading subsidiary on 9 December 2004, but remained dormant at 31 August 2020.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

15
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Notes
Bank loans
19
Other taxation and social security
Deferred income
20
Trade creditors
Other creditors
Accruals
18
Creditors: amounts falling due after more than one year
Notes
Bank loans
19		 2020
£
512,667
1
104,069
2020
£
21,859
22,211
49,845
93,915
2020
£
2,845
7,775
344,241
19,864
1,356
11,317
387,398
2020
£
68,687		 2019
£
61,476
1
96,059
2019
£
34,312
-
57,505
91,817
2019
£
2,763
5,703
30,860
15,724
1,153
5,000
61,203
2019
£
71,419

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19 Loans and overdrafts

Loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2020
£
71,532
2,845
68,687
25,178		 2019
£
74,182
2,763
71,419
28,437

The loan repayable over 15 years is secured by a debenture incorporating a first legal charge over the charity’s premises at 109 – 113 Great Mersey Street, Liverpool.

During the previous year the charity drew down a loan facility provided by Liverpool City Council. The loan is repayable between 2 – 5 years.

20 Deferred income

2020 2019
£ £
Other deferred income 344,241 30,860

The major components of the deferred income are the following:

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 September
2018
£
107 Project
1,244,723
Mental health coordinator
-
Sustainability and capacity building
-
Steve Morgan Foundation
-
Other restricted funds
-
1,244,723		 Movement in funds
Incom e
Expenditure
Transfers
Balance at
1 September
2019
£
£
£
£
-
-
(73,219)
1,171,504
25,000
(25,000)
-
-
89,750
(89,750)
-
-
26,440
(5,288)
-
21,152
54,109
(54,109)
-
-
195,299
(174,147)
(73,219)
1,192,656		 Movement in funds
Incom e
Expenditure
Transfers
£
£
£
-
-
(73,219)
25,000
(25,000)
-
111,079
(111,079)
-
-
(5,288)
-
14,844
(14,844)
-
150,923
(156,211)
(73,219)		 Balance at
31 August
2020
£
1,098,285
-
-
15,864
-
1,114,149

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

21 Restricted funds

(Continued)

107 Project

Funding was received from Heritage Lottery Fund for the refurbishment of 107 Great Mersey Street. All refurbishment work is now complete and The Rotunda Heritage and Enterprise Centre opened on 30 August 2013. The Heritage Lottery Fund hold a legal charge over 107 Great Mersey Street for a period of 25 years from October 2011. The restricted fund relating to the 107 project will be released over the remaining period of the legal charge through a transfer in accordance with the grant terms.

Mental health coordinator

Funding was received from the Steve Morgan Foundation to contribute to ongoing salaries.

Sustainability and capacity building

Funding was received from Power to Change for capacity building. Funding was also received from the following, in support of wage costs during the covid pandemic period: Job Retention Scheme, Reaching Communities (Big Lottery), Liverpool City Region Combined Authority, Liverpool CVS, VOLA, Steve Morgan Foundation and Merseyside Play Action Council.

Steve Morgan Foundation

In 2018, The Foundation donated £26,440 to the charity in the form of a minibus.

Other restricted grants

This includes funding from Liverpool City Council (Mayoral fund and others), Liverpool CVS and Merseyside Play Action Council towards salaries and other educational activities.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

22
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at
31 August 2020
are represented
by:
Tangible assets
452,900
1,114,149
Investments
1
-
Current assets/
(liabilities)
175,114
-
Long term liabilities
(68,687)
-
559,328
1,114,149		 TotalUnrestricted
funds
2020
2019
£
£
1,567,049
417,703
1
1
175,114
57,778
(68,687)
(71,419)
1,673,477
404,063		 Restricted
funds
2019
£
1,192,656
-
-
-
1,192,656		 Total
2019
£
1,610,359
1
57,778
(71,419)
1,596,719

23 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
2,328
4,656
6,984		 2019
£
925
-
925

24 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate remuneration
There were no other related party transactions in the year.		 2020
£
43,074		 2019
£
41,931

25 Company limited by guarantee

Rotunda Limited is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1.

ROTUNDA LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

26
Cash generated from operations
Net (expenditure) for the reporting period as per the Statement of Financial
Activities
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Increase in deferred income
Cash provided by operating activities		 2020
£
76,758
(9)
51,016
(2,099)
12,732
313,381
451,779		 2019
£
(6,654)
(12)
70,326
(21,500)
(54,416)
29,910
17,654