The trustees present their annual report and financial statements for the year ended 29 September 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) .
The charity's objectives are to benefit the inhabitants of Liverpool with particular emphasis upon the neighbourhood of Vauxhall. This is undertaken by associating the statutory authorities, voluntary organisations, institutions, business and inhabitants in a common effort to advance education and to provide facilities in the interest of social welfare for recreation and leisure time occupation with the object of improving conditions of life for the said inhabitants.
The Trustees are committed to maintain the operation of the Charity for the benefit of the local community and have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The local community has been hit hard by the incidence of the covid pandemic and t he charity has supported them by supplying food parcels for the most vulnerable and needy people. The charity would like to thank local businesses and Eldonian Housing Association for their donations and those volunteers who have supported us throughout the year.
Income for the period ended 29 September 202 1 amounted to £ 26,326. After deduction of expenses of £ 487 there was a n increase in the funds of £ 25,839 to a surplus of £ 19,764 as set out in the Statement of Financial Activities on page 4 . The balance sheet on page 5 shows that funds as at 29 September 20 21 consisted wholly of an unrestricted fund.
Reserves policy
The Trustees are committed to maintaining the operation of the Charity for the benefit of the local community. They are intending to build up uncommitted reserves to represent one year of annual expenditure, so that they can continue to operate the Charity in the short term, in the event that present supporters and sources of finance cease. This has not yet been achieved.
The trustees are aware of the past deficits incurred and are in the process of addressing this including actions to secure more funding.
Risk policy
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.
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:
Related parties
All issued shares of Eldonian Leisure Limited are owned by Eldonian Community Trust Limited. Eldonian Leisure Limited is responsible for administering and running the Eldonian Village Hall.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board of trustees
The trustees, who are also the directors of Eldonian Community Trust Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Eldonian Community Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Eldonian Village Hall, Burlington Street, Liverpool, L3 6LG.
The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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 Charity has also taken advantage of the exemption not to prepare group accounts by virtue of it's size.
The financial statements have been prepared on the going concern basis that assumes that the charity will continue to receive the support of creditors and funders. The charity is aware of past deficits incurred and has implemented plans to address this. Amongst these are actions to secure more funding and other efficiency strategies. The balance sheet shows a surplus of funds at 29 September 20 2 1. The impact of COVID -19 affected the charity adversely but 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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure reflects all amounts paid and accrued during the year. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Governance costs are those costs associated with the governance arrangements of the charity, which pertain to its strategic management as distinct from those of the provision of charitable activities. The costs allocated to this heading include fees for the preparation of the financial statements.
All assets costing more than £250 are capitalised at cost.
Depreciation is charged on these assets to write off the costs of the assets over their estimated useful lives at the following rates:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
The wholly-owned trading subsidiary, Eldonian Leisure Limited is incorporated in the United Kingdom . The charity owns the two issued £1 ordinary shares of the company. The subsidiary has been valued in the accounts at the original nominal value as the trustees do not consider there to be any benefit to the users of the accounts in revaluing the investment.
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 .
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
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.
Pensioner's Parties
* Governance costs have been recharged to Support of the Local Community activity.
None of the trustees (or any persons connected with them) received any remuneration during the year (2020: £nil), and no trustees were reimbursed expenses (2020: £nil).
During the year transactions took place with Eldonian Leisure Limited of £2,750 (20 20 : £ Nil)
There were no other related party transactions during the year (2020: none)
The charitable company is limited by guarantee and has no share capital. In the event of the charitable company being wound up, the liability of the members in respect of their guarantee is limited to £1.
The charity had no debt during the year.