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 trust's governing document, 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’s objects and principles continue to be “to provide relief for 'children in need' and to assist and promote disabled children, young adults, and their families to lead lives that are as normal as possible”.
There were three key objectives for the year 2019/20
• To continue the Spring Centre commitment to providing exceptional service and support for children and young people with special needs
• To strengthen the board of Trustees and with it the financial management and overall governance of the charity
• To build up the financial strength of the charity to enable us to continue with our services and to be in a better position to deal with unforeseen events
We provide a fun and caring environment where children and young adults with disabilities and special needs can thrive and offer respite to parents and carers. The charity understands how difficult it can be for the families, for the children and young adults to engage in mainstream activities due to a variety of conditions. At the Spring Centre we provide a safe and secure setting where they can relax and engage in a range of activities, in an environment that is suitable for them, alongside others who have similar needs.
The Spring Centre receives referrals from various sources including social services, special schools, other families and by self-referral.
The Trustees are pleased with the progress made by the Trust during the year.
We continue to offer support through our established support services to parents, carers, siblings and the children/young adults themselves, including 1:1 sessions at the Centre. The activities include:
Family sessions: parents/carers with pre-school aged children and siblings
After School Club: age 8+
School holiday playscheme : age 8+ - including day trips and activities for siblings
Young Adults Day Centre: age 18 to 35 – life/independent skills, social interaction, personal development.
Emotional and practical support are also provided to parents/carers, including assisting with forms, accompanying parents to Family Support Plan meetings, SEN assessments and Educational Health
Care Plan reviews. This support increases confidence and encourages parents to have a voice in difficult and intimidating situations, enabling their children to access education, social and medical services which will improve their lives and allow them to work towards their full potential.
Phase 1 of the project to upgrade the playground provided assets that are well used by all ages.
The website has been redesigned. We continue to run two Facebook pages that are used regularly by parents to access information and support.
Staff have continued mandatory training and have additionally accessed personal development through training opportunities including Understanding Autism, Better Health/Better Lives, Epilepsy Awareness, Care Planning.
Future Developments
The Centre continues to develop the range of services for Young Adults, now extended to age 35.
We continue to update resources and equipment with plans for Phase 2 of the upgrade to the playground – the installation of a canopy so we can deliver more services outdoors.
See note 1.2 to the accounts for the charity response to the Coronavirus
The Statement of Financial Activities shows a deficit in operations (Unrestricted Funds) of £ 3,540 .This reduces the balance of Unrestricted Funds to £ 3,177 which the Trustees consider to be sufficient to finance the short-term working capital.
Charitable activity income for the year increased by £12,289. Grant income reduced by £25,780, due to fewer applications being submitted.
The balance sheet shows that despite significant assets consisting mainly of the property, T he Trust has limited cash reserves which continue to generate significant challenges for the Trustees.
Tangible Fixed Assets
Details of movements in fixed assets are shown in note 13 to the financial statements.
Reserves
The present level of funding is considered adequate to support the running of the Trust for the foreseeable future. The Trustees continue to review the level of reserves available to cover two months expenditure. However, we believe that tight financial control with a heavy emphasis on weekly cash management and the production of management accounts is vital. This together with a strong focus on the submission and tight monitoring of the progress of grant applications is the most appropriate way to manage our financial position.
Investment Policy and Returns
Under the Memorandum and Articles of Association, the charity has the power to make any investment which Trustees see fit.
Risk Management
The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions.
Income and expenditure are decided, in consultation with staff and approval by the Board.
The Trustees monitor the income and expenditure at the monthly meetings. This enables them to:
• Identify strengths and weaknesses in both the monthly and year-to-date position.
• Through discussion and debate, consider if action is needed.
The charity is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association.
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:
Every Trustee must be appointed by a resolution passed at a properly convened meeting of the charity Trustees.
In selecting individuals for appointment as Trustee, the Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.
All Trustees will be provided with copies of The Charity’s Trust Deed and latest accounts of the Charity.
New Trustees are encouraged to read the Charity Commission Guidance (CC3) “The essential trustee – what you need to know, what you need to do”.
In addition, Trustees are encouraged to read Charity Commission and other newsletters and to attend courses designed to keep them abreast of their duties and responsibilities.
The Trustees meet every month to manage the charity’s affairs, when they are presented with reports from the Care Services Manager and Business Manager.
The charity’s organisational structure has three main areas, fund-raising, charitable work (provision of services) and administration. It currently employs 10 members of staff.
The Trustees were pleased to appoint a newly created role of Business Manager. The new post holder is responsible for and supporting the Trustees with fundraising, financial management, general management, human resources, and facilities/premises management.
Since the financial year end (March 2020) covered by this report there has been a significant event.
The Spring Centre has had to deal with the new coronavirus disease COVID-19 in line with the rest of the UK. We are pleased to be able to say that we believe to date (Nov 2020) we have coped well with the crisis. We closed normal activities at end of March. Since then we kept in touch on a continuing basis with the families and offered other support activities. This also applied to our staff, most of whom were furloughed. We have closely monitored our financial condition and we are pleased with the current level of resources.
Our goal since March has been to re-open our services at the Centre as soon as possible. For many families, the disruption to their routines and social connections has created additional stress.
As a result, we have managed a re-opening with reduced services. This is particularly the case for the Young Adults who had not had any provision since March. We are also now able to provide some hours for the other age groups. The response from staff and families has been enthusiastic.
We have been fortunate to receive emergency funding from Government and other grant makers.
The trustees' r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Spring Centre Trust Fund (the trust) for the year ended 31 March 2020.
Having satisfied myself that the financial statements of the trust 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 trust’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.
Other income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Spring Centre Trust Fund is a private company limited by guarantee incorporated in England and Wales. The registered office is Gardner House, Olympus Park, Quedgeley, Gloucester, Gloucestershire, GL2 4NF.
The financial statements have been prepared in accordance with the trust's 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 trust is a Public Benefit Entity as defined by FRS 102.
The trust 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 trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The coronavirus pandemic has significantly disrupted individuals’ personal lives and businesses’ economic prospects in the UK and across the globe. The UK entered lockdown in March 2020 and some restrictions and social distancing provisions remain in place.
We have continued to prepare the accounts on a going concern basis and deem this appropriate. We do not consider that a material uncertainty about our going concern status currently exists. In making this assessment we have considered the likely trading conditions for a period of twelve months from the date of our approval of these accounts.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Expenditure is recorded on the accruals basis and liabilities are included when the legal obligation has been created.
Expenditure in charitable activities represents the costs incurred in carrying out the charitable objectives of the project.
Management costs represent the cost of general administration functions of the charity
Basis of apportionment of expenditure:
- Staff costs are allocated on a basis of time spent on each category of activity.
- Premises costs are allocated by floor area used for the activity.
- Depreciation provision is allocated on the basis of use of the assets.
- All other overheads are allocated to projects as a percentage of direct expenditure.
As a registered charity, the activities are generally excempt from Income Tax and Capital Gains Tax in connection with its direct charitable purpose. As the charity is not VAT registered this means all expenses are recorded 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.
At each reporting end date, the trust 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 trust 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 trust's balance sheet when the trust 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 trust’s contractual obligations expire or are discharged or cancelled.
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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the trust’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.
Adult services
Children services
Other income
Direct expenses
Advertising
Printing & stationery
General expenses
Insurance
Light & heat
Motor & travel
Repairs & maintenance
Bank charges & interest
Telephone
Management costs includes payments to the accountants of £ 600 (2019- £ nil ) for independant examination fees.
The average monthly number of employees during the year was:
The accounts have been restated to incorporate the impact of 2 errorrs identified in the prior years figures . The change has resulted in the unrestricted funds at 31 March 20 20 decreasing by £ 15 , 163 :
Summary of the prior year accounting impact £
Reduction in bank – duplicated donations in 2019 - 8 , 0 00
Reduction in bank – Accounting adjustments to correct historic balances - 7,163
-15 , 163
There were no disclosable related party transactions during the year (2019 - none).