The trustees present their annual report and financial statements for the year ended 31 August 2023.
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 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)" (effective 1 January 2019).
Purposes and aims
Our charity's purposes are as set out in the objects clause contained in the company's Memorandum of Association:
to relieve poverty, sickness and the aged and to promote the benefit of the inhabitants of the Caw Area, Londonderry without distinction of age, gender, sexuality, ethnic origin or political, religious or other opinions by associating with the statutory authorities, voluntary organisations and inhabitants in a common effort to advance education;
to provide facilities in the interests of social welfare for recreation and other leisure time occupations with the object of improving conditions of life for the said inhabitants;
to promote such other charitable purposes as may from time to time be determined.
Who uses and benefits from our services?
Our objects and funding focus the services we provide to the community of the Caw Area. The main areas of charitable activity are in the promotion and support of local community development activities.
In setting our objectives and planning our activities for the year the trustees have given careful consideration to the Charity Commission for Northern Ireland’s guidance on public benefit to ensure that the activities have helped to achieve the charity’s purposes and provide a benefit to the beneficiaries. Our aims objectives and activities are reviewed, monitored and assessed through our ongoing programme of regular committee meetings. The committee is made up of individuals within the statutory, business, voluntary and community sectors.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Once again funding from the Lottery, DFC, PHA and other funders has allowed us to continue to provide a wide range of services, programmes and activities throughout the year. These included Crochet Classes, Creative Crafts, Painting with Oils, Quilting & Soft Furnishings, Crescent Camera Club, Driving Theory Training, GCSE Revision Classes in English and Maths, Jo-Jingles, Caw Stay & Play, Horticultural sessions, Bums & Tums, Caw Walking Club, Kids Friday Club, Older Peoples Summer Scheme, Armchair Aerobics, Caw Women’s Group, Caw Men’s Breakfast Club, Winter Warmers Breakfast Club, Santa’s Grotto and other themed events throughout the year.
During May 2023 we ran a series of events to celebrate the King’s Coronation funded by the Lottery’s Awards for All programme. These included a Coronation Dance & BBQ, Picnic in the Park, Community Fun Day and Quiz Night.
The sit-in and meals-on-wheels service through Caw Luncheon Club continued 3 days per week where just over 8,000 meals were prepared and we also continued with the daily Caw Careline ring-around service which saw over 6,000 calls to elderly residents over the year to check on their health and wellbeing.
The weekly outreach services continued with the Pink Ladies Cancer Support Group, DEEDS Dementia Support Group and Carers Event also weekly appointments were provided with Advice NW from the centre for residents needing help with benefits and other welfare issues.
We were also able to provide accredited courses through the NW Regional College and these included An Introduction to Autism Awareness and Reducing Anxiety and Using a Mindful Approach with Children and Young People.
We continued to provide support to other groups in the area including Caw Football Team, Caw Community Playgroup, Caw Community Growing Space and funding for a Summer Scheme for Caw Youth Club.
The charity has returned an overall deficit of £55,007 for the financial year, primarily due to restricted funding received in earlier years being spent. Due to Covid programmes were unable to run for a period and therefore the National Lottery Community Fund gave the charity a one year extension to use their unspent funding. Unrestricted reserves have increased by £11,355. Project income and expenditure varies from year to year depending on funding received and activities organised as a consequence. There was a fall in the core funding of the charity awarded by the Department for Communities for the year as the previous year had included back pay in respect of a salary increase. There was a significant decrease in the other source of regular funding, the National Lottery Community Fund, as the current cycle reached its conclusion and remaining funding was spent as noted above.
The Trustees have examined the charity's requirements for reserves in light of the main risks to the organisation. The reserves are required to meet the working capital requirements of the charity. The long term strategy is to continue to build reserves through planned operating surpluses. In the short term the Trustees have also considered the extent to which existing activities and expenditure could be curtailed, should circumstances arise. It is the aim of the Trustees that the unrestricted funds held by the charity should be approximately equal to 3 months' costs for key staff and associated running costs. The current level of unrestricted reserves of £67,890 is in excess of this target.
The charity plans to continue the provision of services and projects subject to maintaining on-going funding arrangements. After the year end, following consultation with local residents, an application was submitted to the National Lottery Community Fund for a further 5 years (2024-2029). This application was successful and the funding will commence on 1 April 2024.
The organisation is a charitable company limited by guarantee incorporated on 6 August 2007 and registered as a charity with the Charity Commission for Northern Ireland and HM Revenue & Customs. The company was established under a Memorandum of Association and is governed by its Articles of Association. Member’s liability in the event of the company being wound up is limited to £1.
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:
Under the requirements of the Memorandum and Articles of Association directors are elected at an Annual General Meeting from amongst those persons nominated by the Ordinary Members. The directors have the power at any time to appoint any person to be a director, either to fill a casual vacancy or as an addition to the existing directors. Any director so appointed serves only until the next Annual General Meeting at which directors are to be elected and are then eligible for re-election. A retiring director is eligible for re-election.
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.
The trustees, who are also the directors of Caw/Nelson Drive Action Group 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
The trustees' report was approved by the Board of Trustees.
We report on the accounts of the charity for the year ended 31 August 2023, which are set out on pages 7 to 19.
The trustees, who are also the directors of Caw/Nelson Drive Action Group for the purposes of company law, are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006.
Having satisfied ourselves that the charity is not subject to audit under company law, and is eligible for independent examination, it is our responsibility to:
examine the accounts under section 65 of the Charities Act
follow the procedures laid down in the general directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act
state whether particular matters have come to our attention.
We have examined your charity accounts as required under section 65 of the Charities Act and our examination was carried out in accordance with the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act. The examination included a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as charity trustees concerning any such matters.
Our role is to state whether any material matters have come to our attention giving us cause to believe:
1. That accounting records were not kept in accordance with section 386 of the Companies Act 2006
2. That the accounts do not accord with those accounting records
3. That the accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the 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
4. That there is further information needed for a proper understanding of the accounts to be reached.
We have completed our examination and have no concerns in respect of the matters (1) to (4) listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland. We have found no matters that require drawing to your attention.
which gives us reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in our opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Charitable income
Charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Charitable income
Charitable activities
Caw/Nelson Drive Action Group is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Crescent Community & Cultural Centre, 205-211 Sperrin Park, Londonderry, BT47 6NQ.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). 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 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, [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.
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.
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.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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:
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.
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).
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.
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, 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, 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 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Core services funding
Charitable income
Provision of community activities
Provision of community activities
Charitable activities
Provision of community activities
Provision of community activities
Travel
Rent & rates
Light & heat
Insurance
Hire of equipment
Bank charges
Printing, postage & stationery
Telephone
General expenses
Programme expenses
Volunteer expenses
Repairs & maintenance
Accountancy
Staff & volunteer training
Venue hire
Governance costs of £1,200 (2022: £1,200) were incurred during the year in relation to fees paid to the Independent Examiner. These are included as accountancy fees.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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.
The charge to profit or loss in respect of defined contribution schemes was £2,849 (2022 - £2,900).
The balances remaining on the DFC - Neighbourhood Renewal and National Lottery Community Fund projects represent amounts received to be spent in the next financial year.
Of the balance remaining in respect of Other Community Projects £127,143 is represented by the net book value of fixed assets and the remainder by funds to spent in the next financial year.
Transfers between restricted and unrestricted funds represent amounts included in funding received to cover administration and running costs and some small overspends on projects.
There were no disclosable related party transactions during the year (2022 - none).