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 2022 |
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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 2022 |
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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 2022 |
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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 |
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Report of the Independent Auditors | 6 | to | 7 |
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Statement of Comprehensive Income | 8 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Statement of Cash Flows | 11 |
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Notes to the Statement of Cash Flows | 12 |
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Notes to the Financial Statements | 13 | to | 17 |
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FCC Communities Foundation Limited |
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Company Information |
For The Year Ended 31st March 2022 |
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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 2022 |
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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 |
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The business continued to operate effectively, with its workforce remaining home based throughout the entirety of the 2021/22 financial year. |
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Following the easing of lockdown restrictions and as the country continues to recover from the pandemic, The Board has agreed to continue to meet remotely for three of the four scheduled Board meetings each year, which is both more time and resource efficient, as well as having less environmental impact. The Board continue to meet face to face annually for the AGM. |
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REVIEW OF THE BUSINESS |
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The 2021/22 financial year saw the LCF income increase quite dramatically to levels that were last seen in 2018/19. The financial year ended with the business receiving £7,623,359.37 in LCF income, which is £1,890,769.60 up on the previous financial year and £2,177,399.37 ahead of forecast. This puts the business in a strong financial position. |
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To recognise the increase in available funding, the Board agreed to launch a new Flagship Funding programme, which ran alongside the main FCC Community Action fund and FCC Scottish Action Fund. This programme created an opportunity for the business to fund some larger projects, which are of regional or national importance, working with several new and some existing award partners. |
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The General Manager went out to the marketplace and appointed two new insurance brokers to ensure best value was achieved across the various insurance policies that the business takes out annually. |
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The General Manager went out to the marketplace and appointed a new external payroll bureau to get a better service and reduce the costs associated with outsourcing this. |
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The Compliance & Operations Manager implemented a programme of Cyber Security training for all staff, in recognition of the increased threat to the business from a cyber security breach and to ensure that all staff are regularly trained and best prepared to prevent this from happening. |
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LCF |
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Autumn Budget Statement |
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As part of the Autumn Budget announcement on 27th October 2021, HMRC released their Landfill Tax Briefing which states the following in relation to the Landfill Communities Fund: |
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Maximum percentage credit in 2022-23 |
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As announced at Autumn Budget 2021, the potential value of the LCF for FY 2022-23 will be set at £30.8 million. |
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The percentage credit that landfill site operators may claim against their annual Landfill Tax liability for LCF contributions made to environmental bodies (EBs) will be maintained at 5.3% from 1st April 2021. |
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Performance against Key Targets |
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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. They are also expected to limit the amount of funds held to no more than 1.5 times the total amount of income they receive across a single financial year. |
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The level of unspent LCF funds held by the business on 31st March 2022 rose by £1,209,856 to £9,272,981 on the previous financial year, however this is well within the 1.5 times the total annual income received target, against which the performance of the business is measured. The level of uncommitted LCF funds held by the business on 31st March 2022, (less contingency), also rose by £960,866 to £2,666,203. The Directors do not think that this a reflection of the business not performing, it is simply a reflection of the level of income received, which was £2,177,399 up on forecast. The Directors are happy with the way the business reacted to the additional income received, by launching a Flagship Funding programme and committing additional funding to three new Flagship projects, as well as a large land purchase project, working in partnership with the Woodland Trust, before the end of the financial year. The Board has already agreed to launch a Flagship Funding programme for the 2022/23 financial year, and I am confident that the business will make inroads into the level of unspent and uncommitted funds held before 31st March 2023. |
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LCF overhead costs were contained at 5.76% cost to spend, against a target of no more than 7.5%. |
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SLCF |
The diversion rate remained unchanged at 5.6%, but despite this remaining static, the total value of the SLCF has risen from £5.2 million in the 2020/21 financial year, to £6.6 million at the end of the 2021/22 financial year. (Revenue Scotland Data provided by SEPA). |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Strategic Report |
For The Year Ended 31st March 2022 |
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FCC Communities Foundation saw income in Scotland increase from £477,900.84 in the 2020/21 financial year to £560,616.71 at the end of the 2021/22 financial year. SLCF overhead costs were contained at 9.06% cost to income for the financial year and 9% when averaged out across the previous five years and therefore within the target set by SEPA of 10% cost to income. |
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The business is forecasting that income will remain roughly in line with that received in the 2021/22 financial year for the forthcoming financial year. |
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EXECUTIVE SUMMARY |
After consideration of the results for the year, the challenges and impact of the pandemic and the position at the year-end the Directors feel that the company has performed well with all the key 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 | £7,623,359.37 | £560,616.71 |
Operating costs for the business | £ 337,526.32 | £ 50,804.09 |
Cost to spend ratio (%) | 5.76% | N/A |
Cost to income ratio (%) | N/A | 9.06% |
New Grant commitments made during the year | £6,476,940.74 | £506,266.79 |
Commitment Balance at the year end | £6,394,277.14 | £735,913.51 |
Project spend during the year | £5,856,128.83 | £332,229.55 |
Level of write backs during the year | £ 371,822.31 | £ 82,976.75 |
Level of unspent funds held at the end of the
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£9,272,980.68 |
£868,454.72 |
Level of uncommitted funds held at the end of
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£2,666,203.54 |
£ 95,041.21 |
Level of funds retained for wind up of the
business |
£ 212,500.00 |
£ 37,500.00 |
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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 2022. |
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The business continues to recognise the importance of reducing the level of both uncommitted and unspent monies held, and a more active programme of profile raising has been undertaken to ensure that this can be achieved in the 2022/23 financial year. |
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It is important to recognise that the rapidly changing economic climate in England and Scotland as the UK begins to recover from the COVID-19 pandemic and adjusts to leaving the EU is having a direct impact on the ability of projects to reach fruition, with increasing material costs and high fuel costs both creating issues. The Board has taken the decision that it will begin to consider awarding additional funding to any project that is unable to reach fruition due to escalating contractors costs and has introduced a formal Policy and supporting procedures to manage this. |
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During this financial year the company has received and processed 182 new LCF project applications and 31 new SLCF project applications. Of the new project applications received and processed, 114 LCF projects and 16 SLCF projects were awarded funding. The business also funded 4 new Flagship projects, working in partnership with English Heritage, Woodland Trust, Black Country Living Museum and Oxford University Museum of Natural History. The business did not support any projects using Gift Aid. The total amount committed to new projects through the LCF was £6,476,940.74 and the total amount committed to new projects through the SLCF was £506,266.79. |
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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 money currently allocated to the LCF to other governmental priorities |
- The Chancellor announcing the end of the LCF |
- Revenue Scotland announcing the end of the SLCF |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Strategic Report |
For The Year Ended 31st March 2022 |
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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 and the level of uncommitted funds held. This is monitored monthly. |
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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. This is per ENTRUST guidance and the costs allowed are for the wind down of the business if it were to cease trading prior to the end of the LCF/SLCF. |
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PEOPLE |
FCC Communities Foundation employs 7 full-time and 1 part-time members of staff. The number of employees working for the business did not change during the 2021/22 financial year. No further changes to the staffing structure are expected. |
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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 2022 |
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The directors present their report with the financial statements of the company for the year ended 31st March 2022. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2021 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; |
- | 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. |
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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 2022 which comprise the Statement of 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: |
- | give a true and fair view of the state of the company's affairs as at 31st March 2022 and of its surplus 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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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 this gives rise to a material misstatement in the financial statements themselves. 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. |
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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: |
- | 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 |
- | 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: |
- | 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. |
Report of the Independent Auditors to the Members of |
FCC Communities Foundation Limited |
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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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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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- How we obtained an understanding of the entity's policies and procedures on compliance with laws and |
regulations, including documentation of any instances of non-compliance. |
- How we obtained an understanding of the entity's risk assessment process, including the risk of fraud; |
- The testing of significant transactions, in particular the evaluation of the business rationale for any which appear |
unusual or outside the company's normal course of business; |
- Our review of the financial statements and testing the disclosures against supporting documentation. |
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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. |
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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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Statement of Comprehensive Income |
For The Year Ended 31st March 2022 |
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2022 | 2021 |
Notes | £ | £ | £ | £ |
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TURNOVER |
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Other operating income |
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8,404,002 | 6,297,695 |
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Staff costs | 3 |
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Depreciation |
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Other operating expenses |
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7,159,669 | 5,834,760 |
1,244,333 | 462,935 |
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Interest receivable and similar income |
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SURPLUS BEFORE TAXATION | 5 |
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Tax on surplus | 6 |
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SURPLUS FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR |
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FCC Communities Foundation Limited (Registered number: 03368008) |
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Statement of Financial Position |
31st March 2022 |
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2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
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CURRENT ASSETS |
Debtors | 8 |
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Cash at bank | 9 |
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CREDITORS |
Amounts falling due within one year | 10 |
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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 | 12 |
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The financial statements were approved by the Board of Directors and authorised for issue on
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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 2022 |
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Retained | Total |
earnings | equity |
£ | £ |
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Balance at 1st April 2020 |
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Changes in equity |
Total comprehensive income |
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Balance at 31st March 2021 |
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Changes in equity |
Total comprehensive income |
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Balance at 31st March 2022 |
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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 2022 |
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2022 | 2021 |
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 |
Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities |
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Increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning of year | 2 |
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8,943,692 |
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Cash and cash equivalents at end of year | 2 | 10,141,435 | 8,771,950 |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Notes to the Statement of Cash Flows |
For The Year Ended 31st March 2022 |
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1. | RECONCILIATION OF SURPLUS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Surplus before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets |
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Exceptional items | - | 10,000 |
Government grants |
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( |
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Finance income | (1,991 | ) | (8,520 | ) |
1,245,834 | 464,924 |
Increase in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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( |
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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 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 10,141,435 | 8,771,950 |
Year ended 31st March 2021 |
31/3/21 | 1/4/20 |
£ | £ |
Cash and cash equivalents | 8,771,950 | 8,943,692 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1/4/21 | Cash flow | At 31/3/22 |
£ | £ | £ |
Net cash |
Cash at bank | 8,771,950 | 1,369,485 | 10,141,435 |
8,771,950 |
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10,141,435 |
Total | 8,771,950 | 1,369,485 | 10,141,435 |
FCC Communities Foundation Limited (Registered number: 03368008) |
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Notes to the Financial Statements |
For The Year Ended 31st March 2022 |
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1. | STATUTORY INFORMATION |
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FCC Communities Foundation Limited is a
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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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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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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. |
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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. |
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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. |
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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. |
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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) |
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Notes to the Financial Statements - continued |
For The Year Ended 31st March 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Interest receivable |
Interest income is recognised using the effective interest method on an accruals basis. |
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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. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2022 | 2021 |
|
Administration |
|
|
|
The remuneration of key management personnel amounted to £75,386 (2021 - £68,207). |
|
2022 | 2021 |
£ | £ |
Directors' remuneration |
|
|
|
4. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Exceptional items | 454,799 | 470,841 |
Exceptional items | - | (10,000 | ) |
454,799 | 460,841 |
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2022 |
|
|
2022 | 2021 |
£ | £ |
|
Release of committed grants | 454,799 | 470,841 |
During the year the company has released accruals for previously committed grants where the grants have not been taken up or have otherwise lapsed. |
|
5. | SURPLUS BEFORE TAXATION |
|
The surplus is stated after charging/(crediting): |
|
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets |
|
( |
) |
Auditors' remuneration |
|
|
|
6. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the surplus for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Tax under/(over) provision | (12 | ) | - |
|
Tax on surplus |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2022 | 2021 |
£ | £ |
Surplus before tax |
|
|
Surplus multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Income and expenses not deductible for tax purposes | (236,436 | ) | (88,199 | ) |
|
Total tax charge | 366 | 1,377 |
|
The Company has no taxable trading profit and it is only taxed on interest received. |
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2022 |
|
|
7. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st April 2021 |
and 31st March 2022 |
|
|
|
DEPRECIATION |
At 1st April 2021 |
|
|
|
Charge for year |
|
|
|
At 31st March 2022 |
|
|
|
NET BOOK VALUE |
At 31st March 2022 |
|
|
|
At 31st March 2021 |
|
|
|
|
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
9. | CASH AT BANK |
2022 | 2021 |
£ | £ |
Bank deposit account |
|
|
Bank current account | 3,654,233 | 2,286,709 |
|
|
|
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Grants agreed by the board but |
not paid |
|
|
Accrued expenses |
|
|
|
|
|
11. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
The leasing commitment relate to the office lease in Snetterton and service charges thereon. |
FCC Communities Foundation Limited (Registered number: 03368008) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31st March 2022 |
|
|
12. | RESERVES |
Income |
and |
expenditure |
account |
£ |
|
At 1st April 2021 |
|
Surplus for the year |
|
At 31st March 2022 |
|
|
13. | RELATED PARTY DISCLOSURES |
|
During the year the company paid £4,219 in director's remuneration, fees and expenses (2021 £5,644) to the following directors: |
|
S Scott £500 (2021- £500) |
J Fourcade £Nil (2021 - £Nil) |
M Woods £1,219 (2021 - £1,742) |
G Allen £2,500 (2021 - £3,402) |
|
14. | 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 2022 (2021 - 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. |
|
15. | CONTROLLING INTEREST |
|
|