Isleham Community Association Limited |
Trustees' Annual Report |
Year Ended 31 October 2023 |
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The Trustees present their report and the financial statements of the charity for the year ended 31 October 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) in preparing the annual report and financial statements of the charity. |
The financial statements have been prepared in accordance with the accounting policies set out in notes 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 published on 16 July 2014 (as amended by Update Bulletin 1 published on 2 February 2016). |
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Trustees of the charity |
The directors of the charitable company are its trustees for the purpose of charity law. The trustees who have served during the year and since the year end were as follows: |
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G J Preece (resigned 24 March 2023) |
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P A Wilkes (resigned 7 November 2022) |
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B J Murfitt |
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C G Elmer |
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N Wilkes (resigned 7 November 2022) |
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M J Tarver (appointed 23 January 2023) |
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Z King (appointed 23 Januray 2023) |
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E L Joy-Staines (appointed 5 September 2023) |
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R J Coxhead (appointed on 20 February 2023) |
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M Caffarelli (appointed on 14 November 2023) |
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T J Drayton (resigned 5 September 2023) |
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T L Earl (resigned 14 November 2023) |
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D Miller (resigned 14 January 2023) |
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S Sinclair (resigned 29 November 2022) |
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Objectives and activities |
The principal object of the company is to manage The Beeches Community Centre, in the village of Isleham, Cambridgeshire, on behalf of Isleham Parish Council. |
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The charity has a wholly owned trading subsidiary company, Isleham Community Enterprises Limited (ICE Ltd) that carries out the trading activities on behalf of the charity at The Beeches Community Centre. |
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Public benefit statement |
The Trustees are confident that the objectives and activities of the charity will benefit the public at large as The Beeches Community Centre is able to be used by all members of the public with no exceptions. |
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The Trustees have complied with the duty to have due regard to the public benefit guidance published by the Charity Commission. |
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Achievements and performance |
The Beeches Community Centre has continued to operate and has expanded the activities it offers the local community. |
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The charity has received donations of £887 during the year. |
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The charity undertook capital expenditure of £19,488 during the year. |
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Financial review (including reserves policy) |
At the period end there was £82,261 in the unrestricted fund and £16,344 in the restricted fund. |
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The Trustees are of the opinion that the Charity has sufficient reserves to comply with its reserves policy. |
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It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately six months' expenditure. Six months is deemed suitable to enable the business of the charity to ensure its responsibilities are fulfilled. This provides sufficient funds to cover management, administration, support costs and to respond to emergencies. |
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Small company provisions |
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. |
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On behalf of the board |
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M J Tarver |
Date: 23 October 2024 |
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Isleham Community Association Limited |
Notes to the Financial Statements |
for the year ended 31 October 2023 |
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1 |
Accounting policies |
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General information and basis of preparation |
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Isleham Community Association Limited is a charitable company, registered in England, limited by guarantee and was set up by a Memorandum of Association on 14 November 2012. In the event of the charity being wound up, the liability in resect of the gaurantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. |
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The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. |
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The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A. |
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The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity. |
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The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Funds |
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Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. |
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Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. |
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Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. |
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Endowment funds represent those assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund. |
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Income recognition |
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All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. |
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For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. |
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Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. |
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No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Annual Report. |
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Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations to the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure. |
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Expenditure recognition |
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All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: |
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- Costs of raising funds |
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- Expenditure on charitable activities; and |
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- Other expenditure represents those items not falling into the categories above. |
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Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. |
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Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity. |
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Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. |
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Tangible fixed assets |
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Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulative depreciation and any accumulative impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
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Plant and machinery |
25% reducing balance |
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Investments |
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Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains/(losses) on investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
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Investments in subsidiaries are measured at cost less impairment. |
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Debtors and creditors receivable/payable within one year |
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Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. |
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Loans and borrowings |
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Loans and borrowings are initially recognised at the transaction price including transacion costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
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Tax |
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The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. |
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Going concern |
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The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. |
2 |
Income from donations and legacies |
2023 |
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2022 |
£ |
£ |
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Donations |
887 |
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3,014 |
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887 |
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3,014 |
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Income from donations and legacies was £887 (2022 - £3,014) of which £nil (2022 - £1,202) was attributable to restricted funds and £887 (2022 - £1,812) was attributable to unrestricted funds. |
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3 |
Analysis of expenditure on charitable activities |
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Activities undertaken directly |
Total |
£ |
£ |
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The Beeches, Community Centre |
17,579 |
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17,579 |
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17,579 |
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17,579 |
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£7,832 (2022 - £4,178) of the above costs were attributable to restricted funds. £9,747 (2022 - £5,483) of the above costs were attributable to unrestricted funds. |
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4 |
Trustees' and key management personnel remuneration and expenses |
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The trustees neither received nor waived any remuneration during the year (2022 - £nil). |
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The trustees did not have any expenses reimbursed during the year (2022 - £nil). |
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5 |
Staff costs and employee benefits |
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The average monthly number of employees and full time equivalent (FTE) during the year was nil (2022 - nil) |
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6 |
Tangible fixed assets |
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Plant and machinery |
Total |
£ |
£ |
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Cost or valuation: |
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At 01/11/2022 |
44,545 |
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44,545 |
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Additions |
19,488 |
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19,488 |
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At 31/10/2023 |
64,033 |
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64,033 |
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Depreciation: |
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At 01/11/2022 |
37,468 |
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37,468 |
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Charge for the year |
6,641 |
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6,641 |
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At 31/10/2023 |
44,109 |
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44,109 |
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Net book value: |
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At 31/10/2023 |
19,924 |
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19,924 |
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At 01/11/2022 |
7,077 |
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7,077 |
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7 |
Fixed asset investments |
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Other investments |
Total |
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£ |
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£ |
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Cost or valuation |
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At 01/11/2022 and 31/10/2023 |
1 |
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1 |
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Included within other investments is a 100% holding in the ordinary share capital of Isleham Community Enterprises Limited. Its registered office address is 32 Mill Street, Isleham, Ely, Cambs, CB7 5RS. |
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8 |
Debtors |
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2023 |
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2022 |
£ |
£ |
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Amounts owed by group undertakings |
66,803 |
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65,490 |
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Other debtors |
3,170 |
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3,000 |
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69,973 |
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68,490 |
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9 |
Creditors: amounts falling due within one year |
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2023 |
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2022 |
£ |
£ |
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Accruals and deferred income |
892 |
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850 |
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892 |
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850 |
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10 |
Fund reconciliation |
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Unrestricted funds |
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Balance at 01/11/2022 |
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Income |
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Expenditure |
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Balance at 31/10/2023 |
£ |
£ |
£ |
£ |
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Unrestricted |
91,121 |
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887 |
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9,747 |
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82,261 |
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91,121 |
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887 |
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9,747 |
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82,261 |
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Restricted funds |
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Balance at 01/11/2022 |
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Income |
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Expenditure |
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Balance at 31/10/2023 |
£ |
£ |
£ |
£ |
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Groundworks Grant |
- |
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1,000 |
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- |
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1,000 |
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Drama Group Donation Fund |
4,209 |
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- |
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353 |
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3,856 |
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East Cambs District Council |
- |
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15,317 |
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3,829 |
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11,488 |
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National Lottery Grant |
- |
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3,650 |
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3,650 |
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- |
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3,773 |
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4,209 |
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19,967 |
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7,832 |
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16,344 |
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Fund description |
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Restricted funds |
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Groundworks Grant |
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This relates to a donation that have been received for the specific purpose of buying canvas posters and other decorations for the main hall at The Beeches. |
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Drama Group Donations Fund |
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This relates to donations that were made to the charity for the specific purpose of furtherance of drama and/or improving the stage facilities at The Beeches. |
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The expenditure relates to expenses incurred on drama productions and new microphones. |
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East Cambs District Council |
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This relates to a grant that was received by the charity for the specific purpose of purchasing a new kitchen facility. |
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The expenditure relates to depreciation charged on the newly purchased kitchen. |
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National Lottery Grant |
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This relates to a donation that was made to the charity for the specific purpose of holding a Coronation celebration. |
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The expenditure relates to expenses incurred for the Coronation celebration. |
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11 |
Analysis of net assets between funds |
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Unrestricted funds |
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Restricted funds |
Total |
£ |
£ |
£ |
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Fixed assets |
7,378 |
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12,546 |
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19,924 |
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Cash and current investments |
5,801 |
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3,798 |
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9,599 |
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Other current assets/liabilities |
69,082 |
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- |
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69,082 |
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Total |
82,261 |
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16,344 |
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98,605 |
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12 |
Related party transactions |
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At the Balance Sheet date there is an amount due to the charity of £66,803 (2022 - £65,490) from Isleham Community Enterprises Ltd. |
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This is in respect of an inter-group loan for the purposes of working capital requirements. There are no formal repayment terms and no interest is being received by the charity. |
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The trustees are confident that the loan will be repaid in the future. |