HEREFORD_CENTRE_FOR_NATUR - Accounts

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

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and Activities

The Charity's object and its principal activity continues to be that of providing premises and services for practitioners, therapies, answering queries about natural health and complementary therapies and participating in events which provide information to the public.

The Charity's main objectives during 1 April 2019 to 31 March 2020 were:

To continue to maintain the services and premises of the Centre and to promote alternative and natural approaches to health.

Public benefit

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Charitable activities

Referring to the Objectives, our strategies for achieving these are:

The Charity continued to offer free back and spinal checks during the year, as well as opportunities to sample free trial treatments and mini-consultations with therapists who practice at the centre. Special offers were also in place for a period of time where members of the public could get a reduced rate for their first appointment.

Benefit: Members of the public are able to access an alternative approach to their diagnosis and gain information and understanding about their state of health and well-being.

The Website for Hereford Centre for Natural Health is being accessed regularly, as the website statistics indicate. It is kept up to date with relevant information, and is used in tandem with the centre's Facebook page and Twitter account. The Website has now been updated. This year has seen a further increase in use of social media to promote the Centre facilities. It is also used to convey news and information about alternative forms of treatment to a wider public.

Benefit: Information on the centre, the therapies it has available and promotions that are offered can be readily accessed by the public. This acts as a form of free advertising.

The Charity maintains a Bursary Fund, which is used to subsidise the cost of treatments for those who might not otherwise be able to afford treatment at the Centre. In addition, all therapists offer at their discretion, reduced fees to members of the public.

Practitioners go out into the community to give talks and take part in public events; this enables a wider interface with the public.

Benefit: Members of the public, who might not otherwise find out about alternative approaches to health, are given an understanding of the variety of therapies which may be of use to help improve their well-being.

Problems Encountered

The Centre was forced to close down on 24 March 2020, following Government Guidelines on Covid 19. The 3 paid reception staff were then placed onto the Government Furlough scheme.

The total income achieved in the year was £31,771 which was £589 more than the previous year, but this year's expenditure of £34,876 was £1,841 more than the previous year, resulting in an overall deficit of £3,105.

Going concern

The trustees are of the view that the Charity is a going concern.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure, so £12,000 is kept in a high interest fixed term deposit account. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

To continue to maintain the services and premises of the Centre and to promote alternative and natural approaches to health. To increase the number of therapists using the centre and therefore increase the number of clients.

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Recruitment, appointment and training of new Trustees

Trustees were originally recruited from three different sectors - 3 practitioners, 3 doctors and 3 lay people. Currently we have 4 practitioners, 1 retired Hospital Consultant and 2 lay people. Practitioners may take on the role of a Trustee once they have been at the Centre for a few years. Other Trustees are recruited usually by recommendation by someone connected at the Centre.

New Trustees have some training sessions with existing Trustees who explain all of the day to day workings, policies and procedures. The accounts of the clinic are made available, as are the Minutes of Management Meetings, Practitioner Meetings and AGMs. Trustees are made aware of Charity law, and have their legal role and responsibilities explained. They are provided with the latest Charity Commission Newsletter and direction to the Charity Commission website.

Organisational structure

The Charity is organised so that the Trustees meet as often as is required in order to manage its affairs and oversee the management of the Centre. There are 3 paid reception staff who manage the day to day organisation of the Charity.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Hereford Centre for Natural Health (the charity) for the year ended 31 March 2020.

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.

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:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

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

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 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.

Hereford Centre for Natural Health is a private company limited by guarantee incorporated in England and Wales. The registered office is Eastholme Avenue, Belmont, Hereford, Herefordshire, HR2 7XT.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of any discounts allowed.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

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 net income/(expenditure) for the year.

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. 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. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

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.

Income

Income

Advertising contributions

Expenditure

Expenditure

Governance costs includes payments to the accountants of £500 (2019 - £500) for independent examination fees.

None of the trustees (or any persons connected with them) received any remuneration during the year, but 1 of them was reimbursed a total of £1,976 for laundry services (2019 - 1 was reimbursed £1,976).

The average monthly number of employees during the year was:

No employees received emoluments in excess of £60,000.

Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

The remuneration of key management personnel is as follows.

During the year the charity entered into the following transactions with related parties:

One trustee, Janet Stones, was paid £1,976 for laundry services.

Covid-19 has shut the centre as from 24 March 2020 and has only re-opened on a reduced usage basis on 7 July 2020. The 3 regular employees have been placed on the Government's furlough scheme so that 80% of their wage costs are being recovered from HMRC. The centre also received a grant of £2,000 on 21 July 2020 from Herefordshire Council as part of the financial support offered to help combat the effect of the Covid-19 pandemic. Due to the availability of the furlough scheme, the centre has not needed to use its reserves whilst being temporarily closed.