Skegness Day Centre Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 04677597 (England and Wales)

REGISTERED CHARITY NUMBER: 1097757

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

SKEGNESS DAY CENTRE LIMITED

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Statement of Financial Position

6

Notes to the Financial Statements

7

to

13

TRUSTEES

M Allen Chairman

P N McCooey Chartered Accountant

Mrs T Hill Wills And Probate Specialist

P Hayes Civil Servant

S Perera Chartered Physiotherapist

REGISTERED OFFICE

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

REGISTERED COMPANY NUMBER

04677597 (England and Wales)

REGISTERED CHARITY NUMBER

1097757

INDEPENDENT EXAMINER

Keith May Accounting Services

Aura Business Centre

Heath Road

Skegness

Lincolnshire

PE25 3SJ

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 March 2022. The financial statements have been prepared in accordance with the Accounting and Reporting by Charities statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015), the Charities Act 2011 and the Companies Act 2006.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are: -

"a multi-purpose day centre …for the relief of socially isolated persons of Skegness and the neighbourhood thereto and by associating voluntary organisations and the local statutory authorities in a common effort or otherwise shall be used to provide facilities in the interests of social welfare or recreation and other leisure-time occupation with the object of improving the conditions of life for such persons to provide meals and refreshments for such persons in need whether financially or otherwise and for such other purposes for the welfare of such persons as now are or hereafter may be deemed by law to be charitable".

The Day Centre is constantly working to introduce a greater number of socially isolated people in rural and coastal areas to our services, which so many of our members already enjoy.

The Skegness Day Centre continues to undertake various fundraising activities to raise additional funds to support operational costs.

Public benefit

When reviewing the charitable company's objectives and aims, and in planning future activities, the trustees have considered the Charity Commission's general guidance on public benefit.

ACHIEVEMENT AND PERFORMANCE

Details of the activities are as noted above.

We can provide day care for 45 clients, at present we provide for 25 to 30 per day.

The Day Centre has been in operation for 35 years.

The uniqueness of our centre is its strength and is second to none to any other services offered in the area.

Motivated highly trained staff with long service records.

Improving the health and well-being of clients who attend.

FINANCIAL REVIEW

The net reduction to the funds for the period amounted to (£32,052) (2021: increase (81,609)). Of this amount £Nil (2021: £Nil) are attributable to restricted activities and -£32,052 are attributable to unrestricted funds (2021: attributed from unrestricted funds £81,609).

Reserves policy

It is the policy of the charity to maintain unrestricted funds to provide sufficient funds to cover management and administration costs and to cover centre-running costs in the event of fundraising shortfalls. The Trustees estimate it is prudent to hold in reserve two years' operating costs which equates to approximately £500,000 to cover Day Centre operations. At 31 March 2022 it held a total of £626,727 in reserves.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charitable company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

Recruitment and appointment of new trustees

The members of the board of directors are the trustees for the purpose of charity law and are collectively referred to as the trustees.

The trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the period and up to the date of this report are set out on page 1.

Prospective trustees are invited by the Board of Trustees to apply for a position on the Board. A Criminal Record Bureau check is performed and if acceptable they are then appointed by voting en bloc.

All trustees give their time freely and no trustee remuneration was paid in the year.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 March 2022 was 75 (2021: 75).

Organisational structure

A Day Centre Manager runs the centre on a day-to-day basis and the board of directors meets on a regular basis to review operations and develop future strategy.

COMMENCEMENT OF ACTIVITIES

The organisation is a charitable company limited by guarantee, incorporated on 25 February 2003 and registered as a charity on 30 May 2003. Prior to this the Skegness Day Centre (charity number 517961) operated as an unincorporated charity until 31 October 2003. From 1 November 2003 the charity operated as a company limited by guarantee when the funds of the unincorporated charity were transferred to the company.

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 21 December 2022 and signed on its behalf by:

M Allen - Trustee

Independent examiner's report to the trustees of Skegness Day Centre Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.

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.

Keith May ACMA CGMA

Chartered Institute of Management Accountants

Keith May Accounting Services

Aura Business Centre

Heath Road

Skegness

Lincolnshire

PE25 3SJ

21 December 2022

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,059

-

1,059

701

Charitable activities

Charitable activities

58,256

-

58,256

109,997

Other trading activities

3

2,294

-

2,294

286

Investment income

4

13,268

-

13,268

12,299

Other income

3,645

-

3,645

3,303

Total

78,522

-

78,522

126,586

EXPENDITURE ON

Charitable activities

Governance costs

30,029

-

30,029

2,703

Charitable activities

113,144

-

113,144

165,384

Total

143,173

-

143,173

168,087

NET INCOME/(EXPENDITURE)

(64,651

)

-

(64,651

)

(41,501

)

Other recognised gains/(losses)

Gains on revaluation of fixed assets

32,599

-

32,599

123,110

Net movement in funds

(32,052

)

-

(32,052

)

81,609

RECONCILIATION OF FUNDS

Total funds brought forward

658,779

-

658,779

577,170

TOTAL FUNDS CARRIED FORWARD

626,727

-

626,727

658,779

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

60,493

-

60,493

65,105

Investments

10

548,006

-

548,006

554,360

608,499

-

608,499

619,465

CURRENT ASSETS

Debtors

11

3,669

-

3,669

3,219

Cash at bank and in hand

39,769

-

39,769

44,614

43,438

-

43,438

47,833

CREDITORS

Amounts falling due within one year

12

(25,210

)

-

(25,210

)

(8,519

)

NET CURRENT ASSETS

18,228

-

18,228

39,314

TOTAL ASSETS LESS CURRENT LIABILITIES

626,727

-

626,727

658,779

NET ASSETS

626,727

-

626,727

658,779

FUNDS

13

Unrestricted funds

626,727

658,779

TOTAL FUNDS

626,727

658,779

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 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 and authorised for issue by the Board of Trustees and authorised for issue on 21 December 2022 and were signed on its behalf by:

M Allen - 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

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.

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.

Land and property

-

not provided

Improvements to property

-

Straight line over 25 years

Ambulance heaters

-

25% on reducing balance

Office equipment

-

25% on reducing balance

Taxation

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

Fund accounting

Funds held by the charity are either:

Unrestricted funds - these are funds which can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

Restricted funds - theses 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

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.

Investments

Investments are stated at market value as at the statement of financial position date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Gains and losses

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investment are calculated as the difference between sale proceeds and open market value at prior year end (or purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).

2.	DONATIONS AND LEGACIES

2022

2021

£

£

Donations

1,059

701

3.	OTHER TRADING ACTIVITIES

2022

2021

£

£

Fundraising events

2,294

286

4.	INVESTMENT INCOME

2022

2021

£

£

Income from Investments

13,268

12,297

Deposit account interest

-

2

13,268

12,299

5.	INCOME FROM CHARITABLE ACTIVITIES

2022

2021

Charitable

Total

activities

activities

£

£

Client fees

29,127

5,657

Shop income

234

20

Kitchen sales and staff dinner

120

44

Grants

28,775

104,276

58,256

109,997

6.	NET INCOME/(EXPENDITURE)

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

2022

2021

£

£

Depreciation - owned assets

6,651

6,768

Hire of plant and machinery

-

16,742

Other operating leases

5,400

5,406

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

The trustees gave freely of their time and expertise.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

8.	STAFF COSTS

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

2022

2021

Centre running

8

11

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

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Land and

to

and

property

property

fittings

£

£

£

COST

At 1 April 2021

11,403

138,944

-

Additions

-

-

1,489

Disposals

-

-

-

At 31 March 2022

11,403

138,944

1,489

DEPRECIATION

At 1 April 2021

-

89,612

-

Charge for year

-

5,558

-

Eliminated on disposal

-

-

-

At 31 March 2022

-

95,170

-

NET BOOK VALUE

At 31 March 2022

11,403

43,774

1,489

At 31 March 2021

11,403

49,332

-

Ambulance

Office

heaters

equipment

Totals

£

£

£

COST

At 1 April 2021

5,170

20,921

176,438

Additions

-

550

2,039

Disposals

(5,170

)

-

(5,170

)

At 31 March 2022

-

21,471

173,307

DEPRECIATION

At 1 April 2021

5,170

16,551

111,333

Charge for year

-

1,093

6,651

Eliminated on disposal

(5,170

)

-

(5,170

)

At 31 March 2022

-

17,644

112,814

NET BOOK VALUE

At 31 March 2022

-

3,827

60,493

At 31 March 2021

-

4,370

65,105

Fixed assets are held at cost less depreciation.

10.	FIXED ASSET INVESTMENTS

Listed

investments

£

MARKET VALUE

At 1 April 2021

554,360

Income

13,268

Disposals

(7,221

)

Revaluations

32,599

Transfers

(45,000

)

At 31 March 2022

548,006

NET BOOK VALUE

At 31 March 2022

548,006

At 31 March 2021

554,360

The investment portfolio includes global securities.

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other debtors

389

284

Prepayments

3,280

2,935

3,669

3,219

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other creditors

3,163

1,711

Accrued expenses

22,047

6,808

25,210

8,519

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

104,419

(25,698

)

78,721

Designated

554,360

(6,354

)

548,006

658,779

(32,052

)

626,727

TOTAL FUNDS

658,779

(32,052

)

626,727

Net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

65,254

(135,952

)

45,000

(25,698

)

Designated

13,268

(7,221

)

(12,401

)

(6,354

)

78,522

(143,173

)

32,599

(32,052

)

TOTAL FUNDS

78,522

(143,173

)

32,599

(32,052

)

Comparatives for movement in funds

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

101,563

2,856

104,419

Designated

475,607

78,753

554,360

577,170

81,609

658,779

TOTAL FUNDS

577,170

81,609

658,779

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

114,288

(161,418

)

49,986

2,856

Designated

12,298

(6,669

)

73,124

78,753

126,586

(168,087

)

123,110

81,609

TOTAL FUNDS

126,586

(168,087

)

123,110

81,609

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.4.20

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

101,563

(22,842

)

78,721

Designated

475,607

72,399

548,006

577,170

49,557

626,727

TOTAL FUNDS

577,170

49,557

626,727

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

179,542

(297,370

)

94,986

(22,842

)

Designated

25,566

(13,890

)

60,723

72,399

205,108

(311,260

)

155,709

49,557

TOTAL FUNDS

205,108

(311,260

)

155,709

49,557

The unrestricted funds are available for the Trustees to use in accordance with the charitable objects.

The designated fund (the legacy) is invested to provide a permanent source of income for the charity. Investing the legacy provides a growing income. Although this would not dramatically change the present total income of the charity, it would make a big difference to the amount of investment income of the charity.