Registered Charity Number: 524412
DRAFT
Shropshire Federation of YFC
Annual Report and Statement of Accounts For the year ended 31[st] August 2021
Sigma House Hadley Park East Hadley Telford Shropshire TF1 6QJ
Shropshire Federation of YFC
Annual Report and Statement of Accounts For the year ended 31 August 2021
Contents
| Page | |
|---|---|
| Trustees’ Report | 1-3 |
| Independent Examiner’s Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to The Accounts | 7-15 |
Shropshire Federation of YFC Registered Charity Number 524412
Trustees Mr D Roberts Mr H Jones Ms R Cooper Mr C Potter Mr FJ Allen Mr A Joynt Mr J Dale ( Resigned 2021) Ms C Evans ( Appointed 2020) Charity Number 524412 Principle address YFC County Office Shrewsbury Cattle Market Bowman Way Shrewsbury Shropshire United Kingdom SY4 3DR Independent Examiner Integrity Partnership Sigma House Hadley Park East Hadley Telford Shropshire TF1 6QJ
Shropshire Federation of YFC Trustees’ Report for the year ended 31 August 2021
The trustees present their report and financial statements for the year ended 31 August 2021.
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 governing document, the Charities Act 2011 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 charity’s objectives are:
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To advance the education of young members of the public at large in agriculture, home crafts, country life and related subjects.
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The provision of facilities for recreation and other leisure time occupation
Significant activities
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Throughout the year the charity would normally host a wide range of activities all over Shropshire targeted at those aged between 10 and 26. These activities would help our members to build self-confidence through public speaking, performing and outdoor events to name but a few. This wide range of activities means that all our member can find something to excel at and opportunities always exist for our members to aid with the organisation of events, further improving transferable skills and self-confidence. This year however has been particularly affected by the Covid-19 pandemic and there has regretfully, but inevitably been a significant reduction in the programme provided to members.
Achievements and performance
Some of the many activities carried out by Shropshire Federation of Young Farmers were as follows:
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Many drama events took place throughout the year. It was great to see so many clubs and members on stage performing, whether in the drama competition or in the One Plus competition.
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Public speaking competitions were also held and the trustees were pleased to see increased participation in those competitions.
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A successful training weekend was also held at the beginning of the year to welcome newly elected officials from all 18 clubs and county committee office holders. The trustees were pleased to see a wide participation in the weekend and encouraged by the positivity displayed by the attendees after the event, along with an increased awareness of the responsibilities that are associated with the offices they have taken on.
While the trustees were inevitably saddened to see the cancellation of the organisation’s significant annual fundraisers and show piece events such as the County Rally, County Show and County Chairman’s Ball they were pleased to see that clubs has adapted to the challenges of the global pandemic and were very impressed by ingenuity of individual members and the speed with which the federation’s member clubs embraced the digital technology and remote meeting.
Page 1
Shropshire Federation of YFC Trustees’ Report for the year ended 31 August 2021
Financial review
It is the policy of Shropshire Federation of Young Farmers to maintain unrestricted reserves at a level which equates to 12 months operating expenditure. This provides back up funds for situations such as cancelled social arrangements and the replacement of essential assets.
We are always conscious of the risks of having to cancel fund raising events at very short notice and due to circumstances completely out of our control, for example a rural disease outbreak, weather conditions or as we have seen this year a global pandemic. Traditionally we would hold our largest fund-raising event only a few days before the end of the year and the cancelation of the 2020 County Chairman’s Ball has had an inevitable catastrophic effect on the county’s finances.
Having recovered from the previous downturn in our finances the County Federation has again found itself in a position where expenditure has exceeded income and we have needed to draw on our reserves. The board of management has responded to this by taking action to co-opt further role specific members to the board.
Conscious of the uncertain year ahead in the face of Covid-19 pandemic the investment review has been postponed to ensure the organisation has sufficient liquid assets to smoothly maintain the organisation though what is currently a very unforecastable and unprecedented period going forward.
The trustees remain committed to ensuring the federation is able to “bounce back” better than ever when conditions allow, providing maximum benefit to the membership base. In the meantime, the trustees are continuing to access as many grants and subsidies as possible to bolster the income, while continuing to utilise the furlough and job support schemes as provided by Her Majesties Treasury. However, the trustees are mindful that the organisations reserves are not unlimited and are regularly meeting to assess the major risks and unprecedented circumstances to which the charity is exposed and are satisfied that management systems are in place to mitigate exposure to aforementioned major risks. The trustees also continue to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
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.
Structure, governance and management
The charity was registered 8 January 1973 and is governed by its constitution adopted 4 December 1971 and amended 1 November 2002. We are now governed by an updated constitution adopted on 11[th] November 2017.
The trustees who served during the year were: Mr D Roberts Mr H Jones Ms R Cooper Mr C Potter Mr F J Allen Mr A Joynt Mr J Dale (resigned 2021) Ms C Evans (appointed October 2020)
New trustees are appointed in accordance with the constitution: 5ii The board of management shall appoint trustees from their committee and will comprise of the Chairman of the Management Committee, County President and County Treasurer.
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Shropshire Federation of YFC Trustees’ Report for the year ended 31 August 2021
The trustees’ report was approved by the Board of Trustees.
…………………… Mr H Jones Trustee Dated: ………………...
Page 3
Shropshire Federation of YFC
Independent Examiner’s Report to the Trustees of Shropshire Federation of YFC for the year ended 31 August 2021
I report on the financial statements of the charity for the year ended 31 August 2021, which are set out on pages 5 to 15.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
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(i) examine the financial statements under section 145 of the 2011 Act;
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(ii) to follow procedures laid down in the general directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act; and
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(iii) to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner’s statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and reporting by Charities preparing their accounts is accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:
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(a) Which gives me reasonable cause to believe that in any material respect the requirements:
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(i) To keep accounting records in accordance with section 130 of the 2011 Act; and
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(ii) To prepare financial statements which accord with the accounting records and comply with the accounting requirements of the 2011 Account; have not been met or
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(b) To which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Integrity Partnership Sigma House Hadley Park East Hadley Telford TF1 6QJ
Dated: …………………
Page 4
Shropshire Federation of YFC Statement of Financial Activities for the year ended 31 August 2021
| Unrestricted | Restricted | Total funds | Total funds | ||
|---|---|---|---|---|---|
| Note | funds | funds | 2021 | 2020 | |
| £ | £ | £ | £ | ||
| INCOME | |||||
| Incoming resources from generated funds | |||||
| Donations and Legacies | (3) | 48,856 | - | 48,856 | 34,116 |
| Other Trading Activities | (4) | 6,233 | - | 6,233 | 27,203 |
| Investment | (5) | 452 | - | 452 | 1,277 |
| Furlough grants | 13,542 | - | 13,542 | - | |
| Total income | 69,083 | - | 69,083 | 62,596 | |
| EXPENDITURE | |||||
| Funds raised | (6) | 2,131 | - | 2,131 | 20,752 |
| Charitable activities | 48,079 | - | 48,079 | 90,081 | |
| Total resources expended | 50,210 | - | 50,210 | 110,833 | |
| Net income/(expenditure) | 18,873 | - | 18,873 | (48,237) | |
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 241,005 | 882 | 241,887 | 290,124 | |
| Total funds carried forward | 259,878 | 882 | 260,760 | 241,887 |
Page 5
Shropshire Federation of YFC Balance Sheet at 31 August 2021
| Note Fixed assets Tangible fixed assets (9) Current assets Stock (10) Debtors (11) Cash at bank and in hand Investment (12) Creditors:Amounts falling due within one year (13) Net current assets Net assets The funds of the charity Unrestricted funds Restricted funds (15) |
1,357 9,243 265,343 2,000 277,943 17,554 |
2021 £ 371 260,389 260,760 259,878 882 260,760 |
1,357 22,578 229,602 2,000 255,537 14,392 |
2020 £ 742 241,145 241,887 241,005 882 241,887 |
|---|---|---|---|---|
Approved by the General Committee on 16[th] October 2021 and signed on its behalf by:-
Chairman
Page 6
Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021
1 Accounting Policies
Charity Information
Shropshire Federation of YFC is a charity governed by it’s constitution adopted November 2017
1.1 Accounting Convention
The financial statements have ben prepared in accordance with the charity’s (governing document), the Charities Act 2011 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 the Republic of Ireland ( FRS 102) (effective 1 January 2019)’’.
The Charity is a public Benefit Entity as defined by FRS 102
The charity has taken advantage of the provision in the SORP for charities applying FRS 102 update Bulletin 1 not to prepare a statement of Cash Flows.
The Financial Statements have departed from the Charities (Accounts and Reports) regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommendation Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice, which is referred to in the regulations, but which has since been withdrawn.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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. Page 7
Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021
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.
1.5 Expenditure
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 basis:
Fixtures, fittings and equipment 50% 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 net income/(expenditure) for the year.
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 Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and costs.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm 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 asset
Basic financial asset, which include debtors and cash and bank balance, 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 asset 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 payments discounted at the 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 effect 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 obligtations expire or are discharged or cancelled.
1.11 Employee benefit
The Cost of any unused holiday entitlement is recognised in the period in which the employee 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.
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Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021
1.12 Retirement benefits
Payment to defined contribution retire benefit schemes are charged as an expense as they fall due.
1.13 Taxation
The charity is exempt from tax on its charitable activities
1.14 Fund accounting
Unrestricted funds can be used in accordance with the charitable objective at the discretion of the trustees.
Restricted funds 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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2 Critical accounting estimates and judgements
In the application of the Charity’s accounting policies, the trustees are required to make judgments, estimates and assumptions about the carrying amounts of the assts 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 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
| 3 | Donations and Legacies | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Subscriptions | 43,261 | 38,838 | |
| NFYFC affiliation fee | (16,972) | (19,928) | |
| Club closure | 1,779 | - | |
| Sponsorship | 20,788 | 15,206 | |
| 48,856 | 34,116 | ||
| 4 | Other Trading Activites | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Training | 720 | 3,620 | |
| Fundraising Events | 5,513 | 23,583 | |
| 6,233 | 27,203 |
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Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021 (continued)
5 Investments
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Interest Received | 452 | 1,277 | |
| 6 | Raising funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Cost of Merchandising and Events | |||
| Dances and social events | - | 3,553 | |
| Shropshire county show | - | 112 | |
| Chairman’s ball | 786 | 8,114 | |
| Competitions | 1,270 | 6,695 | |
| Advertising | - | 2,278 | |
| SFYFC grant | 75 | - | |
| 2,131 | 20,752 |
7 Trustees
There were no trustees’ remuneration or other benefits for they year end 31 August 2021 nor the year ended 31 August 2020
Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31[st] August 2021 nor for the year ended 31[st] August 2020
8 Employees
Number of employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| Employees | 2 | 2 |
| Employment Cost | 2021 | 2020 |
| £ | £ | |
| Wages and Salaries | 28,772 | 51,593 |
Page 11
Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021 (continued)
| 9 Tangible fixed assets Cost At 1 September 2020 Additions At 31 August 2021 Depreciation At 1 September 2020 Depreciation charge for the year At 31 August 2021 Net Book Value 2021 2020 10 Stocks Finished goods and goods for resale 11 Debtors Amounts falling due within one year Trade Debtors Prepayments and accrued income 12Current asset investments Unlisted Investments |
Fixtures, fitting & equipment £ 15,518 - 15,518 14,776 371 15,147 371 742 2021 2020 £ £ 1,357 1,357 2021 2020 £ £ 7,353 20,828 1,890 1,750 9,243 22,578 2021 2020 £ £ 2,000 2,000 Page 12 |
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Shropshire Federation of YFC Notes to the accounts for the year ended 31 August 2021 (continued)
13 Creditors: amounts falling due within one year
| Amounts falling due within one year: Other Taxes and social security Trade Creditors Other Creditors Accruals and deferred income |
2021 £ - 1,636 99 15,819 17,554 |
2020 £ 2,372 692 184 11,144 14,392 |
|---|---|---|
14 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
15 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:
| As at | 31/08/2021 | Resources | As at | 31/08/20 | |
|---|---|---|---|---|---|
| £ | £ | £ | |||
| Training Grants | 882 | - | 882 |
Training Grants
The money in this fund is available for members of the charity who wish to receive a grant towards training costs
Designated Funds
The trustees have decided to designate £150,000 towards future investment in the organisation.
16 Analysis of net assets between funds
| Funds as at 31/08/21 Tangible Assets Current assets/(liabilities) |
Unrestricted Restricted 2021 2020 £ £ 371 - 259,507 882 259,878 882 |
Total 2020 £ 371 260,389 260,760 |
|---|---|---|
17 Related Party Transaction
There were no disclosable related party transaction during the year ( 2020- None)
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Shropshire Federation of YFC DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 AUGUST 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Incoming Resources | ||
| Voluntary income | ||
| Unrestricted | ||
| Subscriptions | 43,261 | 38,838 |
| NFYFC affiliation fee | (16,972) | (19,928) |
| Club closure | 1,779 | - |
| Furlough Grant | 13,542 | |
| Sponsorship | 20,788 | 15,206 |
| 62,398 | 34,116 | |
| Other Incoming resources | ||
| Unrestricted | ||
| Dances and social events | 179 | 3,144 |
| Shropshire county show | 162 | 1,474 |
| YFC Rally and Dance | - | 3,043 |
| Chairman’s ball | - | 29 |
| Competitions | 985 | 9,620 |
| Training | 720 | 3,620 |
| Sale of merchandise | - | 163 |
| Christmas Cards | 896 | - |
| Christmas Raffle | 717 | - |
| Chairman’s Trip | 2,510 | - |
| Handbook | - | 8,820 |
| Chairman’s Event | 64 | (2,710) |
| 6,233 | 27,203 | |
| Investment Income | ||
| Interest received | 452 | 1,277 |
| Total Incoming resources | 69,083 | 62,596 |
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Shropshire Federation of YFC DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 AUGUST 2021
| Resources expanded Costs of raising funds Unrestricted Dances and social events Shropshire county show Chairman’s ball Competitions Advertising SFYFC grant Charitable expenditure Unrestricted Training Courses Wages Depreciation Insurance Light, heat and rent Telephone Postage and Stationery Promotion costs Mileage Officer expenses Office cost Accountancy Sundries Honorarium Bank Charges Restricted Training courses Total Resource expenditure Net income/(expenditure) |
2020 £ - - 786 1,270 - 75 2,131 - 28,772 371 2,664 3,180 1,885 706 - 7 155 3,217 3,813 - 2,500 809 - 48,079 50,210 18,873 |
2021 £ 3,553 112 8,114 6,695 2,278 - 20,752 10,894 51,593 737 5,691 3,138 2,089 3,679 2,068 812 144 3,592 3,228 2,216 - 200 90,081 110,833 (48,237) |
|---|---|---|
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