Wickham Community Association - Charities report - 20.2

REGISTERED COMPANY NUMBER: 04329669 (England and Wales)

REGISTERED CHARITY NUMBER: 1090544

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 January 2021

for

Wickham Community Association

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

17

TRUSTEES

Angela Clear (resigned 18.12.2020)

David Evans

Katherine Lemon

John Morton

Susan Roger-Jones

David Roger-Jones

Ben Sawyers

Kate Turnbull

Benjamin Warwick

Roger Stuart Martin

REGISTERED OFFICE

Mill Lane

Wickham

Hampshire

PO17 5AL

REGISTERED COMPANY NUMBER

04329669 (England and Wales)

REGISTERED CHARITY NUMBER

1090544

INDEPENDENT EXAMINER

Maximus Accountancy Services Limited

47 Kensington Road

Chichester

West Sussex

PO19 7XS

SOLICITORS

Knight Polson

4 Leigh Road

Eastleigh

SO50 2NE

BANKERS

Lloyds Bank

43 West Street

Fareham

PO16 0BE

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 January 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Our aims are:

- To promote the benefit of the inhabitants of Wickham and district, without discrimination, to advance education and to provide facilities in the interest of social welfare for recreation and leisure time occupation, for the betterment of the people concerned.

- To establish and maintain a Community Centre.

- To promote any other charitable scheme in furtherance of the above aims.

The objectives of the association are:

- To enhance the lives of those who live, work and learn in the local area

- To provide facilities that are affordable and accessible to the local community

- To be a centre of excellence and a role model for Hampshire Community Associations

- To make Wickham Community Centre a natural hub and meeting place for all Wickham organisations

- To make Wickham Community Centre appealing to businesses, local people and clubs as a venue for meetings, events and activities

- To achieve community cohesion by supporting activities that allow individuals of different backgrounds to share experiences

- To be financially sustainable through good business practice and by attracting funding through sponsorship, grants and business revenue, which subsidises community events and activities.

Wickham Community Association is committed to:

- Being non-discriminatory with regard to sexual orientation, race or political, religious or other opinions.

- Being sensitive to the needs of children, the elderly and vulnerable.

- Working with Local Authorities, voluntary organisations and inhabitants in advancement of the objectives of the Association.

- Providing a safe and good environment for the activities of the Association and any other users of Wickham Community Centre and grounds.

Wickham Community Centre is home to Wickham Community Association and aspires to be the hub of the community for everyone in the Parish of Wickham and surrounding areas.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Covid 19 pandemic spread to the UK at the beginning of March and on March 16th, we cautiously held our last Monday Lunch Club meeting. By the end of the week, the building was locked, staff sent home on furlough leave and it was up to a small team of volunteers to make sense of what was happening and to manage a skeleton organisation.

We owe a debt of gratitude to Kate English who was appointed as our Community Centre Development Manager in June 2018 and for 18 months had been rebuilding the ethos of the Centre to a more community based organisation. She had built a network of help and support for her work, amongst which was the School for Social Entrepreneurs. Kate had been accepted for the scheme in 2019. She had the support of experienced business people to mentor her in developing the Centre and a financial spur to help with minor but important business improvements. Although the financial support was a modest £10,000 spread over 9 months, it also opened doors to other opportunities. An unexpected result was that the Association was recognised as having the potential to survive the pandemic and was given a financial injection of £25,000 to make it happen. Altogether, we received £62,000 in unrestricted grants and over £31,000 for specific projects, which enabled the volunteers to keep the business running and to make make some much needed general improvements to the building.

Building Improvements

We had plans to gently improve the 30 year old Community Centre but the priorities had to change in order to make it covid safe. The last job we did as the first lock down happened, was to upgrade the fire alarm system with fire detectors and a new control panel. Good ventilation is essential in order to combat the coronavirus, so we applied for a £5,000 grant towards renovating the ventilation systems, having originally intended to seek a grant for new windows and doors.

One benefit of the lock down was that no one was hiring the building so we could arrange for contractors to work without interruption. As a result, we have redecorated the Woodford Room and replaced the dance floor and behind the bar; redecorated and recarpeted the old Homestart offices; installed sound absorbing panels in the Meon and Wickham Rooms; replaced the cooker and a host of minor works. We also renewed some of the old equipment.

Lettings

There have been three lock downs in the year, when normal business was interrupted completely. At the Board meeting in April 2020, we decided that, in order to survive, we had to be innovative and proactive. At that stage there was no indication on what direction or use the building could be put to.

The first 'letting' was to allow our car park to be used as a temporary covid testing station and the first room hiring was to the NHS Blood Transfusion service. We continued to be open for training sessions for the police and various health related bodies, and children's special need services.

A big asset was the purchase of a misting blower, which has enabled us to sanitise the rooms and equipment with hospital grade antiviral spray. There has been a substantial drop in lettings but it did mean that we could dedicate rooms to particular clients, thus avoiding cross contamination.

Our open door policy had a surprising benefit during the summer. Most other community buildings were not opening, even during the summer relief, which meant that we had a lot of fresh clients from a much wider area. We became a popular venue for badminton and music rehearsal, as well as our regular sport and pastime groups - the Rifle Club became very busy but all the groups involving older and vulnerable people stayed safe. As a result our letting income reduced substantially whilst the operating costs increased. The furlough pay support saved the day.

One indirect casualty of the pandemic was the loss of our charity tenant, Homestart. They had been with us for over 20 years, during which time we had built a good working relationship, so we were sad to see them leave us in December 2020. As reported, we have refurbished the room and named it The Moore Room. It is quiet and out of the way so we intend using it to supplement our charitable work and for letting as a consulting and small meeting room.

The old IT Suite on the front corner of the building had recently been let to the Chestnut Tree House charity, which used it as an outreach station to support children with cancer. Their work was curtailed by the pandemic so the room has been used by them as a store. We look forward to seeing them active again.

The autumn storms brought us a flood victim from Shedfield. All Good Things is a zero waste and refill store selling wholesome foods, who needed a temporary home, so we had a pop up shop for three months in the Wickham Room. It worked very well for them and us, bringing new life to the Centre. The store has grown and now is trading from West Street, Fareham.

Community Benefit

At the beginning of 2020, we were on the cusp of launching a number of new initiatives. The Community Garden was about to be increased with a new poly tunnel and growing area. The Meon Room was to be used for garden related projects and the Wickham Room was being repurposed for a Warm Hub and Baby Café.

Trustee Katy Turnbull, with a small team of helpers, maintained the Community Garden which was about the only lively area around the Centre. However, in the background we were formulating ideas which would support the community as it emerged from the virus restrictions. As at January 2021, there were firm plans to use the Wickham Room as 'The Wickham Pantry' and to have a Community Fridge in the Foyer, which will be open in the spring. Other plans include using the garden to help supply the Fridge and to use the kitchen to encourage healthy eating using fresh ingredients 'from plant to plate'. We are aware that the lock down has generated a problem with mental health which we hope to address with The Pantry project.

Although the Association has not been in the front line of support during the pandemic, we have enabled other organisations to do their work. This report should conclude at the end of January but even in the first week of February we have taken 6 weeks of bookings from the police who are involved in a big recruitment campaign and the Centre was used as an emergency shelter for 50 immigrant families, for them to be interviewed and allocated temporary accommodation.

2021 will be different and we have not lost time in preparing ourselves to be alive to the new need and being active in meeting it. We believe that we are able to rebuild the business and have the financial resources to do so. All assuming that the coronavirus does not return with a new debilitating version. We live in hope.

The trustees confirm that they have had due regard to the Charity Commission's guidance on public benefit.

FINANCIAL REVIEW

Financial position

In the year under review the charity made a surplus of £30,762 (2020 deficit of £19,375) which increased reserves. The charity now holds reserves of £597,179 (2020 £566,417) which include free reserves (excluding fixed assets used for charitable purposes and restricted funds) of £122,912 (2020 £104,109).

Reserves policy

The Association's reserve policy is to hold sufficient liquid unrestricted reserves to enable it to:

- Withstand unforeseen financial setback.

- Cover staff redundancy and other closure costs should the Association have to close the centre.

- To provide working capital where funding is paid in arrears.

- To take advantage of opportunity which the trustees consider will benefit the charity and the community it serves.

The reserves policy is reviewed annually. For the year 2020-21 it remained at £56,000.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Wickham Community Association is a charitable company limited by guarantee. Its objects, powers and other constitutional matters are set out in its most recent Memorandum and Articles of Association, approved by the members on 17 July 2016,

Its objects are to promote the benefits and improve the conditions of life for the inhabitants of Wickham and district by:

- Provision of facilities in the interest of social welfare for recreation and leisure time activities;

- Establishment, maintenance and management of a centre for community activities.

In the attainment of the above objects the charity shall be non-party in politics and non-sectarian in religion.

Recruitment and appointment of new trustees

The trustees hold Focus Day workshops, to which members of the community are also invited to look at the aims and objectives of the Association and how they can be met. The workshops include a skills analysis of the trustees from which the strengths and weaknesses of the Board is examined. Trustees are then charged with finding new members from the area of benefit to stand on the Board.

Elections are held annually having regard to the Charity Commission's guidance CC30 "Finding New Trustees". Provision is made for co-option during the year. There is no declared size for the Board of Trustees but the preferred balance is 12 to 15 members. Currently there are 10 members.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

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

Approved by order of the board of trustees on 26 March 2021 and signed on its behalf by:

David Roger-Jones - Trustee

Independent examiner's report to the trustees of Wickham Community Association ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

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

2.	the accounts do not accord with those records; or

3.	the accounts 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

4.

the accounts 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 accounts to be reached.

Hilary Julian BA FCA DChA

Maximus Accountancy Services Limited

47 Kensington Road

Chichester

West Sussex

PO19 7XS

31 March 2021

2021

2020

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

101,431

31,110

132,541

9,048

Charitable activities

Room hire, clubs and related income

45,892

-

45,892

112,390

Other income from charitable activities

847

-

847

2,873

Other trading activities

3

12,313

-

12,313

40,085

Investment income

4

152

-

152

417

Total

160,635

31,110

191,745

164,813

EXPENDITURE ON

Raising funds

7,858

260

8,118

20,386

Charitable activities

Room hire, clubs and related income

300

-

300

3,447

Administration costs

87,100

1,201

88,301

94,116

Establishment costs

53,421

6,383

59,804

61,412

Support costs

3,721

-

3,721

3,069

Community garden

-

739

739

1,758

Total

152,400

8,583

160,983

184,188

NET INCOME/(EXPENDITURE)

8,235

22,527

30,762

(19,375

)

Transfers between funds

14

10,491

(10,491

)

-

-

Net movement in funds

18,726

12,036

30,762

(19,375

)

RECONCILIATION OF FUNDS

Total funds brought forward

564,221

2,196

566,417

585,792

TOTAL FUNDS CARRIED FORWARD

582,947

14,232

597,179

566,417

2021

2020

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

460,035

-

460,035

460,112

CURRENT ASSETS

Stocks

10

1,299

-

1,299

2,392

Debtors

11

18,256

138

18,394

28,736

Cash at bank

114,147

14,094

128,241

84,035

133,702

14,232

147,934

115,163

CREDITORS

Amounts falling due within one year

12

(10,790

)

-

(10,790

)

(8,858

)

NET CURRENT ASSETS

122,912

14,232

137,144

106,305

TOTAL ASSETS LESS CURRENT LIABILITIES

582,947

14,232

597,179

566,417

NET ASSETS

582,947

14,232

597,179

566,417

FUNDS

14

Unrestricted funds

582,947

564,221

Restricted funds

14,232

2,196

TOTAL FUNDS

597,179

566,417

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 26 March 2021 and were signed on its behalf by:

John Morton - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from room hire, events and activities is recognised in the accounting period in which the relevant activity occurs and is deferred to the extent to which it relates to activities which will take place in future accounting periods.

Income from grants is recognised when the charity has received written confirmation of the offer of funding or when any conditions relating to the grant have been met.

Income from donations is recognised when it is received.

Expenditure

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 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

33% on cost

Tangible fixed assets other than freehold land are stated at cost less depreciation and provisions for permanent diminution in value. Items costing over £250 are capitalised when they have an estimated useful life of more than one year.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives 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.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	DONATIONS AND LEGACIES

2021

2020

£

£

Donations

406

700

Gift aid

-

160

Grants

132,135

8,188

132,541

9,048

Grants received, included in the above, are as follows:

2021

2020

£

£

Winchester City Council

-

1,438

Wickham Parish Council

6,500

4,000

Community Business Trade Up Programme

8,000

2,750

Hampshire County Council

3,110

-

Coronavirus Job Retention Scheme

39,311

-

National Gardens

1,000

-

Local Restrictions Support Grant

5,714

-

Closed Business Lockdown Payment

6,000

-

C-19 Emergency Trading Income Support Scheme

25,000

-

Covid Emergency Assistance (Community Pantry)

12,500

-

Retail, Hospitality and Leisure Grant

25,000

-

132,135

8,188

Wickham Parish Council provided two grants during the year: £5,000 towards the cost of upgrading the Centre ventilation system, and £1,500 towards the cost of replacing a cooker. Hampshire County Council also provided a grant of £3,110 towards the cost of the replacement cooker.

3.	OTHER TRADING ACTIVITIES

2021

2020

£

£

Function services

6,220

35,623

Solar panels

6,093

4,462

12,313

40,085

4.	INVESTMENT INCOME

2021

2020

£

£

Deposit account interest

152

417

5.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021

2020

£

£

Depreciation - owned assets

17,055

16,741

Net expenditure for the year includes £1,200 payable to the independent examiner (2020 £1,200).

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2021 nor for the year ended 31 January 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 January 2021 nor for the year ended 31 January 2020.

7.	STAFF COSTS

2021

2020

£

£

Wages and salaries

80,738

85,874

Social security costs

1,289

2,397

Other pension costs

1,060

1,011

83,087

89,282

The average monthly number of employees during the year was as follows:

2021

2020

Community Centre staff

6

7

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

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

860

8,188

9,048

Charitable activities

Room hire, clubs and related income

112,390

-

112,390

Other income from charitable activities

2,873

-

2,873

Other trading activities

40,085

-

40,085

Investment income

417

-

417

Total

156,625

8,188

164,813

EXPENDITURE ON

Raising funds

20,051

335

20,386

Charitable activities

Room hire, clubs and related income

3,147

300

3,447

Administration costs

93,508

608

94,116

Establishment costs

57,801

3,611

61,412

Support costs

3,069

-

3,069

Community garden

620

1,138

1,758

Total

178,196

5,992

184,188

NET INCOME/(EXPENDITURE)

(21,571

)

2,196

(19,375

)

RECONCILIATION OF FUNDS

Total funds brought forward

585,792

-

585,792

TOTAL FUNDS CARRIED FORWARD

564,221

2,196

566,417

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 February 2020

608,075

76,540

27,603

712,218

Additions

-

15,463

1,515

16,978

At 31 January 2021

608,075

92,003

29,118

729,196

DEPRECIATION

At 1 February 2020

163,272

64,214

24,620

252,106

Charge for year

11,162

3,686

2,207

17,055

At 31 January 2021

174,434

67,900

26,827

269,161

NET BOOK VALUE

At 31 January 2021

433,641

24,103

2,291

460,035

At 31 January 2020

444,803

12,326

2,983

460,112

Freehold property includes £50,000 in respect of the land, which is not depreciated.

10.

STOCKS

2021

2020

£

£

Stocks

1,299

2,392

11.

DEBTORS

2021

2020

£

£

Amounts falling due within one year:

Trade debtors

4,189

9,680

Other debtors

5,000

5,000

Prepayments and accrued income

4,205

4,056

13,394

18,736

Amounts falling due after more than one year:

Other debtors

5,000

10,000

Aggregate amounts

18,394

28,736

Debtors falling due after more than one year relate to exceptional income arising from the sale of land access rights during the year ended 31 January 2012. Of the total exceptional income of £100,000, £50,000 was received during the year ended 31 January 2012 with the remainder being payable in 10 equal annual instalments commencing in April 2013.

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

5,299

3,699

Social security and other taxes

2,261

1,426

Other creditors

1,730

227

Accruals and deferred income

1,500

3,506

10,790

8,858

Accruals and deferred income for the prior year includes £736 of deferred income which related to bookings for events to be held after the year end.

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

-

2,310

Lease payments amounting to £2,292 have been recognised as an expense during the year.

14.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.2.20

in funds

funds

31.1.21

£

£

£

£

Unrestricted funds

General fund

564,221

8,235

10,491

582,947

Restricted funds

Community Garden

-

780

-

780

Lighting Upgrade

389

-

-

389

Community Business Trade Up

1,807

4,637

(5,881

)

563

Cooker Replacement

-

4,610

(4,610

)

-

Community Pantry

-

12,500

-

12,500

2,196

22,527

(10,491

)

14,232

TOTAL FUNDS

566,417

30,762

-

597,179