REGISTERED NUMBER:
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FCC Communities Foundation Limited |
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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For The Year Ended |
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31st March 2020 |
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REGISTERED NUMBER:
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FCC Communities Foundation Limited |
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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For The Year Ended |
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31st March 2020 |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Contents of the Financial Statements |
For The Year Ended 31st March 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 | to | 4 |
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Report of the Directors | 5 | to | 6 |
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Report of the Independent Auditors | 7 | to | 9 |
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Income Statement | 10 |
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Other Comprehensive Income | 11 |
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Statement of Financial Position | 12 |
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Statement of Changes in Equity | 13 |
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Statement of Cash Flows | 14 |
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Notes to the Statement of Cash Flows | 15 |
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Notes to the Financial Statements | 16 | to | 23 |
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FCC Communities Foundation Limited |
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Company Information |
For The Year Ended 31st March 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
8 Hopper Way |
Diss |
Norfolk |
IP22 4GT |
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SOLICITORS: |
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Charter Court, Newcomen Way |
Severalls Business Park |
Colchester |
Essex |
CO4 9YA |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Strategic Report |
For The Year Ended 31st March 2020 |
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The directors present their strategic report for the year ended 31st March 2020. |
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The purpose of the Strategic Report is to inform stakeholders in the Landfill Communities Fund (LCF) and Scottish |
Landfill Communities Fund (SLCF) and to help them assess how the directors have performed their duty under |
section 172 (duty to promote success of the company). |
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COVID-19 |
On week commencing 16th March 2020, FCC Communities Foundation took the decision to temporarily close its |
head office as a reaction to the ever worsening coronavirus pandemic and to ensure that it put the health and safety |
of its head office based staff first and foremost. At the time of writing the strategic report head office remains |
closed. |
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Despite taking the decision to close head office, FCC Communities Foundation has retained all its workforce. No |
staff were furloughed. |
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Investment in IT infrastructure over the course of the last two financial years means that all of the operating systems |
used by the business are now cloud based and all the staff, including those who are based full-time at head office, |
have IT equipment that allows them to be home based when/if necessary. |
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The business was able to operate efficiently and effectively throughout lock-down and continues to do so as |
lock-down eases without facing any major issues. |
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Both ENTRUST, as the Regulator of the Landfill Communities Fund (LCF) in England and SEPA, as the Regulator of the |
Scottish Landfill Communities Fund in Scotland have been supportive throughout lock-down and communicated |
regularly with the business. |
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REVIEW OF BUSINESS |
The 2019/20 financial year saw FCC Communities Foundation settle into its new head office at Snetterton Business |
Park and benefit from the cost savings associated with relocating to a much smaller and more fit for purpose office. |
The staffing structure has remained the same, albeit with one role dropping from a full-time position to a part-time |
position. Both LCF and SLCF income remained strong throughout the financial year and whilst the business had |
forecast a reduction in income of around 15% on the previous financial year, the year ended with income remaining |
almost in line with the 31st March 2019 position. |
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LCF |
As part of the Budget announcement on 29th October 2018, HM Treasury and HMRC published their Overview of |
Tax Legislation and Rates document, which included a section on the LCF. This set the value of the fund for the |
2019/20 financial year at £32.9 million, with the diversion rate remaining at 5.3%. |
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HMRC, through ENTRUST is continuing to monitor the level of uncommitted funds held and unspent funds held by |
Environmental Bodies, as well as the level of overheads costs being incurred by Environmental Bodies across the |
sector. Environmental Bodies are expected to continue to reduce the level of uncommitted and unspent funds |
being held and to contain their administration costs to within 7.5% cost to spend. FCC Communities Foundation |
continues to make good progress in all three of these key areas and ended the financial year with reduced levels of |
both uncommitted and unspent funds held and with LCF overhead costs being contained at 6.46% cost to spend, |
(5.80% cumulatively for the whole business). |
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SLCF |
The diversion rate remained unchanged at 5.6%, but with reducing levels of waste being disposed of by landfill in |
Scotland, the total value of the SLCF has reduced from £7,733,320 in the 2018/19 financial year to £5,973,472.99 in |
the 2019/20 financial year. |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Strategic Report |
For The Year Ended 31st March 2020 |
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FCC Communities Foundation saw income in Scotland drop off in the final quarter of the financial year, however this |
was forecast and had been accounted for in the business planning. SLCF overhead costs were contained at 9.13% |
cost to income and within the target set by SEPA of 10% cost to income. |
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EXECUTIVE SUMMARY |
After consideration of the results for the year and the position at the year-end the Directors feel that the company |
has performed well with all the critical targets set by HMRC having been met. |
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This assessment is based on the following key performance indicators (KPI's)* of the financial performance. The |
KPI's have been split in to LCF and SLCF as FCC Communities Foundation reports to ENTRUST for its business activity |
in England and SEPA for its business activity in Scotland: |
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LCF | SLCF |
Landfill tax credit income received | £6,538,755 | £657,597 |
Operating costs for the business | £389,701 | £60,065 |
Cost to spend ratio (%) | 6.46 | N/A |
Cost to income ratio (%) | N/A | 9.13 |
New Grant commitments made
during the year |
£5,985,633 |
£723,751 |
Commitment Balance at the year
end |
£6,749,986 |
£717,477 |
Project spend during the year | £6,033,749 | £1,724,419 |
Level of write backs during the
year |
£119,938 |
£100,375 |
Level of unspent funds held at the
end of the year |
£8,161,367 |
£782,325 |
Level of uncommitted funds held
at the end of the year |
£1,198,881 |
£27,348 |
Level of funds retained for wind
up of the business |
£212,500 |
£37,500 |
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*The above data is based on a cash basis as required by and reported to ENTRUST and SEPA as at 31 March 2020. |
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The business continues to recognise the importance of reducing the level of both uncommitted and unspent monies |
held, and all new grants must complete within 12 months from the date of the original commitment. |
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It is important to recognise that the COVID-19 pandemic has had a direct impact on the ability of projects to reach |
fruition, something that has been recognised by both ENTRUST and SEPA. The Board has taken the decision that no |
project should be adversely affected by the COVID-19 pandemic and, with this in mind, has agreed to allow projects |
additional time to deliver. This is an approach that has been supported by both ENTRUST and SEPA, who have been |
communicating regularly and working closely with the sector. |
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During this year the company has received and processed 189 new LCF project applications and 56 new SLCF project |
applications. Of the new project applications received and processed, 110 LCF projects and 21 SLCF projects were |
awarded funding. The business also funded two LCF flagship projects and three projects using Gift Aid. The total |
amount committed to new projects through the LCF was £5,985,633 and the total amount committed to new |
projects through the SLCF was £723,751. |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Strategic Report |
For The Year Ended 31st March 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks are: |
- The diversion rate for both the LCF and SLCF not being adjusted to maintain the annual value of the two funds |
- The Chancellor reallocating some of the £32.9 million currently allocated to the LCF to tackle waste crime |
- The outcome of the insurance claim lodged with AIG |
- The Chancellor announcing the end of the LCF |
- Revenue Scotland announcing the end of the SLCF |
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FINANCIAL RISK MANAGEMENT |
The FCC Communities Foundation Board has responsibility for the company's liquidity and financial risk. |
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The Directors are committed to reducing the level of unspent funds held to no more than 12 months income and the |
level of uncommitted funds to no more than 3 months income. This is monitored quarterly. |
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The Board has a policy of not forward committing funds based on financial projections and is therefore always in a |
position to meet its liabilities in the event of the closure of the LCF and/or SLCF. |
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An annual winding up provision is made in the budget to allow the business to meet all its obligations in the event of |
the closure of the LCF and/or SLCF. |
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PEOPLE |
FCC Communities Foundation employs 8 full-time and 1 part-time members of staff. The number of employees |
working for the business remained static throughout the 2019/20 financial year. The only change to the staffing |
structure was that the Finance Officer role reduced from a full-time to a part-time position, based on a three-day |
working week. |
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With a greatly reduced income stream in Scotland the sustainability of the Grant Manager role in Scotland will need |
to be assessed before the end of the 2020/21 financial year. |
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ON BEHALF OF THE BOARD: |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Report of the Directors |
For The Year Ended 31st March 2020 |
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The directors present their report with the financial statements of the company for the year ended 31st March 2020. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st March 2020. |
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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. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2019 to the date of this |
report. |
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DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted |
Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting |
Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law |
the directors must not approve the financial statements unless they are satisfied that they give a true and fair view |
of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing |
these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection |
of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies |
Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she |
ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to |
establish that the company's auditors are aware of that information. |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Report of the Directors |
For The Year Ended 31st March 2020 |
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AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
FCC Communities Foundation Limited |
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Opinion |
We have audited the financial statements of FCC Communities Foundation Limited (the 'company') for the year |
ended 31st March 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of |
Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash |
Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial |
reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting |
Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and |
Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31st March 2020 and of its deficit for the year
then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical |
Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe |
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report |
to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
However, not all future events or conditions can be predicted. the COVID-19 viral pandemic is the most significant |
economic event for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate |
all of the potential implications on the company's income, suppliers and wider economy. The Directors' view on the |
impact of COVID-19 is disclosed in the strategic report and in the notes. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the |
Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in |
doing so, consider whether the other information is materially inconsistent with the financial statements or our |
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material |
inconsistencies or apparent material misstatements, we are required to determine whether there is a material |
misstatement in the financial statements or a material misstatement of the other information. If, based on the work |
we have performed, we conclude that there is a material misstatement of this other information, we are required to |
report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
FCC Communities Foundation Limited |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report |
to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page five, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, |
and for such internal control as the directors determine necessary to enable the preparation of financial statements |
that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as |
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of |
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic |
alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our |
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in |
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from |
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to |
influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of |
the Auditors. |
Report of the Independent Auditors to the Members of |
FCC Communities Foundation Limited |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent |
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's |
members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Statutory Auditor |
8 Hopper Way |
Diss |
Norfolk |
IP22 4GT |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Income Statement |
For The Year Ended 31st March 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
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TURNOVER |
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Other operating income | 3 |
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7,079,423 | 8,412,017 |
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Staff costs | 4 |
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Depreciation |
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Other operating expenses |
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7,267,925 | 10,290,607 |
OPERATING DEFICIT | 5 | ( |
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Interest receivable and similar income |
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DEFICIT BEFORE TAXATION | ( |
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Tax on deficit | 7 |
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DEFICIT FOR THE FINANCIAL YEAR | ( |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Other Comprehensive Income |
For The Year Ended 31st March 2020 |
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2020 | 2019 |
Notes | £ | £ |
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DEFICIT FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR |
( |
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( |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Statement of Financial Position |
31st March 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Debtors | 9 |
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Cash at bank | 10 |
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CREDITORS |
Amounts falling due within one year | 11 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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RESERVES |
Income and expenditure account | 13 |
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The financial statements were approved by the Board of Directors and authorised for issue on
and were signed on its behalf by: |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Statement of Changes in Equity |
For The Year Ended 31st March 2020 |
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Retained | Total |
earnings | equity |
£ | £ |
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Balance at 1st April 2018 |
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Changes in equity |
Total comprehensive income | ( |
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Balance at 31st March 2019 |
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Changes in equity |
Total comprehensive income | ( |
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Balance at 31st March 2020 |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Statement of Cash Flows |
For The Year Ended 31st March 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Tax paid | ( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Interest received |
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Net cash from investing activities |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
year |
2 |
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11,780,254 |
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Cash and cash equivalents at end of year | 2 | 8,943,692 | 10,081,085 |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Notes to the Statement of Cash Flows |
For The Year Ended 31st March 2020 |
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1. | RECONCILIATION OF DEFICIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2020 | 2019 |
£ | £ |
Deficit before taxation | ( |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Roundoff | 1 | - |
Finance income | (68,042 | ) | (76,466 | ) |
(181,007 | ) | (1,871,984 | ) |
Decrease in trade and other debtors |
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Decrease in trade and other creditors | ( |
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Cash generated from operations | ( |
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) |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect |
of these Statement of Financial Position amounts: |
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Year ended 31st March 2020 |
31/3/20 | 1/4/19 |
£ | £ |
Cash and cash equivalents | 8,943,692 | 10,081,085 |
Year ended 31st March 2019 |
31/3/19 | 1/4/18 |
£ | £ |
Cash and cash equivalents | 10,081,085 | 11,780,254 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1/4/19 | Cash flow | At 31/3/20 |
£ | £ | £ |
Net cash |
Cash at bank | 10,081,085 | (1,137,393 | ) | 8,943,692 |
10,081,085 | ( |
) | 8,943,692 |
Total | 10,081,085 | (1,137,393 | ) | 8,943,692 |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Notes to the Financial Statements |
For The Year Ended 31st March 2020 |
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1. | STATUTORY INFORMATION |
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FCC Communities Foundation Limited is a
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Wales. The company's registered number and registered office address can be found on the Company |
Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements have been prepared on a going concern basis. The Directors have reviewed and |
considered relevant information, including the annual budget and future cash flows in making their |
assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow |
analysis to take into account the impact on the business of possible scenarios brought on by the impact of |
COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, |
given the measures that could be undertaken to mitigate the current adverse conditions, and the current |
resources available, the Directors have concluded that they can continue to adopt the going concern basis in |
preparing the annual report and accounts. |
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Turnover |
Turnover is measured at the fair value of the consideration received. |
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All turnover is accounted for on a receivable basis and represents landfill tax credits from waste management |
businesses. |
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Turnover is recognised at the time the Landfill Operator charges landfill tax. The amount of landfill tax credits |
are set in the Budget. |
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Any surpluses which may arise are a result of timing differences between the accrued grant commitments |
and the dates that the landfill tax credits are receivable. |
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Tangible fixed assets |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Computer equipment | - |
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Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and |
accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of |
operating as intended. |
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Depreciation is provided from the date the assets are brought into use on the cost in equal annual |
instalments, with a full year's charge in the period of acquisition and none in the period of disposal, over the |
estimated useful lives of the assets. |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the interest receivable for the |
current period. It is measured at the amount expected to be paid or recovered using the tax rates and laws |
that have been enacted or substantively enacted by the balance sheet date. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's |
pension scheme are charged to profit or loss in the period to which they relate. |
|
Expenditure |
Expenditure is accounted for on an accruals basis. Grants are accrued upon the establishment of a |
commitment to a project via communication of the approval of a project by the Board of Directors. |
|
Grants committed |
The company records grants committed as a liability once the award of the grant has been approved and the |
applicant has been advised of the success of their application and any particular conditions attached to the |
award. |
|
Unclaimed grants are reviewed monthly and those that have expired, are for projects that have ceased or are |
not active are released back to the profit and loss account. |
|
At the year end the directors make an estimate of the likely amounts included within creditors that are not |
expected to become payable and reduce the liability accordingly. This estimate is based upon cumulative |
grants released. |
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Interest receivable |
Interest income is recognised using the effective interest method on an accruals basis. |
|
Trade and other debtors and creditors |
Trade and other debtors and creditors are initially recognised at fair value and thereafter stated at amortised |
cost using the effective rate of interest method except where the effect of discounting would be immaterial. |
|
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other |
short-term highly liquid investments with maturities of three months or less. |
|
Provisions |
Provisions are recognised when the Company has a present legal or constructive obligation arising as a result |
of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation |
and a reliable estimate can be made. Provisions are measured at the present value of the expenditures |
expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments |
of the time value of money and the risks specific to the obligation. |
|
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Company's accounting policies, which are described above, management is required |
to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are |
not readily apparent from other sources. The estimates and underlying 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 estimates are revised if the revision affects only that |
period, or in the period of the revision and future periods if the revision affects both current and future |
periods. The key source of estimation uncertainty that has a significant effect on the amounts recognised in |
the financial statements is the provision for grant clawbacks. |
|
Financial instruments and liquidity risk |
The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves |
and banking facilities. They do this by continuously monitoring forecast and actual cashflows and matching |
the maturity profiles of financial assets and liabilities. |
|
3. | OTHER OPERATING INCOME |
|
Other operating income relates to amounts received from other Environmental Bodies. |
|
4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Administration | 9 | 9 |
|
The remuneration of key management personnel amounted to £73,462 (2019 - £58,066). |
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
|
5. | OPERATING DEFICIT |
|
The operating deficit is stated after charging: |
|
2020 | 2019 |
£ | £ |
Depreciation - owned assets |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
|
6. | EXCEPTIONAL ITEMS |
2020 | 2019 |
£ | £ |
Exceptional items | 220,313 | 632,681 |
|
2020 | 2019 |
£ | £ |
|
Release of committed grants | 220,313 | 632,681 |
During the year the company has released accruals for previously committed grants where the grants have |
not been taken up or have otherwise lapsed. |
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the deficit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Tax under/(over) provision | 989 | - |
|
Tax on deficit |
|
|
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2020 | 2019 |
£ | £ |
Deficit before tax | ( |
) | ( |
) |
Deficit multiplied by the standard rate of corporation tax in the UK of
|
( |
) |
( |
) |
|
Effects of: |
Adjustments to tax charge in respect of previous periods |
|
|
Income and expenses not deductible for tax purposes | 35,815 | 355,944 |
Gift Aid | (11,400 | ) | (11,400 | ) |
Total tax charge | 2,517 | 2,140 |
|
The Company has no taxable trading profit and it is only taxed on interest received. |
|
8. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st April 2019 |
|
|
|
|
Additions |
|
|
|
|
At 31st March 2020 |
|
|
|
|
DEPRECIATION |
At 1st April 2019 |
|
|
|
|
Charge for year |
|
|
|
|
At 31st March 2020 |
|
|
|
|
NET BOOK VALUE |
At 31st March 2020 |
|
|
|
|
At 31st March 2019 |
|
|
|
|
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Prepayments |
|
|
|
|
|
10. | CASH AT BANK |
2020 | 2019 |
£ | £ |
Bank deposit account |
|
|
Bank current account | 2,463,678 | 2,638,073 |
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Grants agreed by the board but |
not paid |
|
|
Accrued expenses |
|
|
|
|
|
12. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
13. | RESERVES |
Income |
and |
expenditure |
account |
£ |
|
At 1st April 2019 |
|
Deficit for the year | ( |
) |
At 31st March 2020 |
|
|
14. | CONTINGENT LIABILITIES |
|
The historic HMRC investigation has been concluded and is closed. FCC Environment are seeking to recover |
£65,250.00 from FCC Communities Foundation. The insurance claim that FCC Communities Foundation |
submitted to AIG has been unsuccessful. AJG, the insurance broker that FCC Communities Foundation uses, |
still maintains that the insurance claim is valid, so that matter has reached an impasse. FCC Communities |
Foundation has filed a formal complaint against both AIG, (insurance provider), and AJG, (insurance broker) |
and awaits the outcome of this process. |
|
15. | RELATED PARTY DISCLOSURES |
|
During the year the company paid £8,550 in director's remuneration, fees and expenses (2019 £7,739) to the |
following directors: |
|
S Scott £616 (2019 - £690) |
J Fourcade £225 (2019 - £172) |
M Woods £3,121 (2019 - £1,877) |
G Allen £4,588 (2019 - £5,000 ) |
|
16. | POST BALANCE SHEET EVENTS |
|
On 16 March 2020, a week before the UK Government announcement that new measures were to be |
introduced to put the Nation in a state of lockdown, the company's offices were closed and all employees |
were asked to work from their homes and to date they have not re-entered the office on a full time basis. |
|
The Company is taking all the necessary steps and available Government measures and aid to reduce the |
impact of the Covid 19 pandemic. |
|
17. | CAPITAL AND RESERVES |
|
The company is limited by guarantee and has no share capital. Every director undertakes to contribute such |
amounts as may be required (not exceeding £1) to the company's assets if it should be wound up while they |
are a director or within one year after they cease to be a director. There were 5 directors as at the year |
ended 31 March 2020 (2019 - 5). |
|
The reserves are not attributable to directors as the company is prevented by its Memorandum from paying |
dividends, bonuses or other distributions to the directors of the company. |
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2020 |
|
|
18. | CONTROLLING INTEREST |
|
The company is controlled by the directors as listed on page 4. |