The trustees present their report and financial statements for the year ended 31 March 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The principal objects of the charity are to enhance the life experiences of persons with learning disabilities and to offer opportunities to develop the intellectual capacity and abilities of such persons that they may achieve their full potential both as individuals and members of society.
To meet the aims people with learning disabilities are sponsored by Statutory Services, Charities and other organisations to attend the Centre on specified days each week. The variety of activities offered include needlework, cookery, arts and crafts, woodwork, gardening, singing, basic numeracy, literacy and computer skills, discussion and group work.
Outside in the community we offer regular walks, swimming, gym, badminton and trips to places of interest. We also participate in the Hertfordshire Learning Disability Games.
The Trustees also wish to record their heartfelt thanks to the many volunteers without whom the charity would be unable to maintain the quality of service at the level of expenditure that is currently enjoyed. At present we have four volunteers.
The Waterside Centre continued to offer a variety of activities both within the building and in the community. In addition to the activities usually offered by Waterside, extra activities such as Pilates, Yoga, Boxercise, Sailing, Drama and Healthier You classes were organised to help improve the health and wellbeing of our Service Users. Other activities provided by others included a sing-a-long; a visit from the PCSO to discuss personal safety and stealing; crafty Christmas card sessions and a ukulele band. Outside, we also enjoyed Crazy Golf, Pottery Project, Panto, Canal trip and Christmas Tree decorating at a local Church.
Waterside staff and Service Users have continued to work hard on the large allotment plot that we gained last year and we are using the fruit and vegetables grown by our Service Users in our daily meals.
We continue to provide a full catering service providing nutritious meals and teaching Service Users food preparation skills. We also started training a few Service Users to work in the kitchen with a view to them gaining employment elsewhere.
We held fund-raising activities both on our behalf and on behalf of other charities such as a coffee morning and crazy bingo.
The year 2019/20 has been very different to anything we expected due to the COVID 19 pandemic. Waterside closed its doors in mid-March in the interests of everyone’s safety but the staff team remained committed and we offered an outreach service to all Service Users via telephone, video calls, delivering activity packs and offering socially distanced support visits. In mid-July 2020 Waterside re-opened its doors to all. We have changed the way we work, the numbers of people we support at any one time, staff hours, cleaning regimes and the activities on offer. Some Service Users remain at home for different reasons and we continue to offer an outreach service to them. We remain flexible and committed to improving our service as the COVID regulations allow.
As a result of the current situation we have been unable to undertake many of the fundraising activities that would normally take place and are not expecting our face-to-face community fundraising to resume before 2021. We were lucky enough to hit our fundraising target for the “Magic Table” just as we closed in March and the unit has been a great hit since our return.
The Trustees report that there was a deficit for the year of £6,940 compared to a surplus of £ 1,661 in the previous year. The main reason for the deficit was a reduction in Sponsorship of £10,415.
We continued to seek best value for money in all overhead expenditures. A review of Catering and Cleaning services and costs was undertaken in the year and an agreed reorganisation took place which will result in savings in the future whilst continuing to provide full kitchen and cleaning services.
The charity aims to maintain staffing ratios and skills at the existing level to ensure that a positive and enhancing service is provided to all Service Users who attend the centre.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a material change to its major funding source , they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. The Trustees have agreed that the level of reserves held should be subject to review on an annual basis.
The Trustees, during the year, evaluated the Reserves Policy of the Centre. In doing so, they identified that its major funding source of income was from its Service Users under the control of Hertfordshire County Council Commissioning. The Trustees agreed that any reserves policy set by the Centre would need to be such that it addressed the risks of unplanned closure on the Service Users, staff and volunteers.
Negotiations for the renewal of the building lease at an economic rent will be undertaken in 2020 with Dacorum Borough Council. The Trustees have designated funds to provide for the cost of maintenance that is required to the fabric of the charity's building. The provision exists in order to recognise that the building must be maintained to a "fit for purpose”. Provisions will be made to the Fund in future to ensure that the level of the Fund meets the Centre's needs.
In summary the Trustees have agreed that the level of reserves should be set at:
Risks of Unplanned Closure - £80,000
Building External/Internal Repairs - £50,000 (held as a designated fund)
The current Covid rules have had the most extreme impact of the service capacity of the Waterside Centre. The Trustees are most grateful to the management and staff in supporting Service Users during the period of national lockdown and ensuring a recovery service since July 13th 2020.
HCC have supported Waterside to provide these services since the beginning of lockdown. They have advised that they will continue to provide support for Waterside to run services at a safe operating level until the end of December 2020. The Trustees will continue to review reserves most diligently to ensure that the Risks of Unplanned Closure as above are maintained.
The Trustees have reviewed the risks associated with the business and there are two principal areas as follows:
the lease for 63 Waterside ends on the 31st December 2020 . Dacorum Borough Council have advised that they will grant a lease extension albeit at a higher rent . The Trustees are currently in the process of renegotiation of the lease and rent and are seeking professional advice as appropriate
in addition to the building we depend upon maintaining a good quality of staff to deal with the varying needs of our Service Users.
We are investing time in training and also ensuring that the staff/service user ratios remain favourable. Thus we have procedures in place to monitor remuneration and training levels.
The charitable company is governed by a Memorandum and Articles of Association and was incorporated on 27 September 1990. The Memorandum and Articles of Association was amended by a resolution dated 22 November 1990. The charitable company ("the charity") was registered as a charity by the Charity Commission on 18 December 1990.
The charity is constituted as a company limited by guarantee with a board of Trustees, who are also Directors of the charity for Companies Act purposes. There is no maximum number of Trustees that can be appointed but the minimum number is six. The Trustees meet a minimum of six times per annum to oversee the running of the organisation. Their responsibilities are defined in the Articles of Association. No remuneration is payable to the members of the Management Committee. Suitable candidates are identified and invited to join the Trustee body. Prospective Trustees are invited to attend the Centre and Trustees meetings to acquaint themselves with all aspects of the charity before they are formally invited to become Trustees.
Day to day activities are delegated to the manager and staff team. The Trustees regularly attend the centre and monitor activities.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The directors of the charitable company ('the charity') are its Trustees for the purpose of charity law and throughout this report are referred to as the Trustees. A list of the Trustees are given on the Legal and Administration page to the financial statements. All of the Trustees named on that page served during the year. The board of Trustees has the power to appoint additional Trustees as it sees fit. Those Trustees appointed during the period plus one third of the existing Trustees must retire by rotation at the next Annual General Meeting. All retiring Trustees are eligible for re-election.
The trustees' r eport was approved by the Board of Trustees.
The trustees, who are also the directors of The Waterside Centre, Kings Langley for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of The Waterside Centre, Kings Langley (the charity) for the year ended 31 March 2020.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Voluntary income including donations and legacies
Provision of activities for people with learning disabilities
Community fundraising, events and sponsorship
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Waterside Centre, Kings Langley is a private company limited by guarantee incorporated in England and Wales. The registered office is 63 Waterside, Kings Langley, Hertfordshire, WD4 8HE.
The company is a private company limited by guarantee and not having any share capital. The extent of the liability of the members of the company on a winding up is limited to a maximum of one pound each. The company is also a registered charity and accordingly no liability to corporation tax arises on the financial statements.
The charitable company has an exemption under section 30(5) of the Companies Act 1985 from using 'Limited' in the title.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
As at 31 December 2019 China had alerted the World Health Organisation (WHO) of several cases of an unusual form of pneumonia in Wuhan. Substantive information about what has now been identified as Coronavirus (or COVID-19) came to light in early 2020.
In the opinion of the Trustees, despite the potential effects of the COVID-19 outbreak, it is nonetheless considered that the Going Concern basis of the preparation of the financial statements remains appropriate. Similarly, in the opinion of the Trustees, no adjustments are required to the results or carrying values of assets or liabilities declared in these financial statements, and none have been made.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Resources expended are included in the Statement of Financial Activities on an accruals basis inclusive of VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
Assets costing under £1,500 are charged directly to the Statement of Financial Activities in the year of purchase.
Where capital items are acquired through donations received, those assets are written off in the year of purchase.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The activities of the charity are exempt from Corporation Tax under Section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation's charitable objects.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Voluntary income including donations and legacies
Provision of activities for people with learning disabilities
Sponsorship income
Activities and outings
Lunch receipts
Community fundraising, events and sponsorship
Trading income
Letting income
Community fundraising, events and sponsorship
Community fundraising, events and sponsorship
Material costs
Lunches
Rent & rates
Light, heat and water
Repairs and renewals
Office costs
Staff expenses
Insurance
Equipment hire
Legal and professional
Staff training
Activities and outings
Sundry expenses
Bank charges
Governance costs
The average monthly number of employees during the year was:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £4,108 (2019 - £4,186).
Contributions amounting to £440 (2019: £439) were payable at 31 March 2020 and are included within creditors.
The contingency fund has been established to provide for the cost of maintenance that is required to the fabric of the charity's building. The provision exists in order to recognise that the building must be maintained to a "fit for purpose" level for the period of the lease which was renewed for a period of 15 years during the year. Provisions will be made to the Fund in future to ensure that the level of the Fund meets the Centre's needs.
Magic Table represents events undertaken where the Trustees have agreed to designated the funds towards the purchase of specific equipment.
There were no disclosable related party transactions during the year (2019 - none).