The trustees present their annual report and financial statements for the year ended 31 March 2023.
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.”
We provide the following services for Gloucestershire children and young adults with disabilities and additional needs:
After-School Club for children aged 8+ during term-time
Holiday Playscheme for children aged 8+ during school holidays, including day trips for the family
Family sessions for pre-school children with parents/carers and siblings throughout the year
Day Centre for young adults aged 18 to 35 throughout the year
Advice and support to parents and carers.
Community sessions for children who can’t access education
Community sessions for adults with learning disabilities to access our facilities
We design our services to encourage independence and the development of peer-to-peer relationships in an environment that is suitable for all users. Children enjoy sensory play, crafts, music and dance, animal therapy as well as outdoor activities at our specially equipped premises in Quedgeley, Gloucester. Young adults practise key life skills such as cooking, use of computers, social interaction and sport both at the Spring Centre and out in the local community.
Much of what we do is outside the scope of the support provided by the statutory sector. Staff work closely with local special schools, social and health workers, family support workers and GPs to determine the most appropriate care plan for each user so that they can achieve their full potential. The Spring Centre receives referrals from a range of sources including social services, special schools, other families as well as self-referral.
The Trustees have paid due regard to the Charity Commissioner’s public benefit guidance.
Services at the Spring Centre gradually returned to pre-pandemic levels during 2022/23, with the Over 8’s Holiday Playscheme proving particularly popular. However, staff absences due to Covid 19 continued to present significant challenges during the winter.
Improved networking and use of social media led to other Gloucestershire adult community groups starting to make limited use of the Spring Centre’s facilities, including the sensory room.
A Quality Check carried out in October 2022 on behalf of Gloucestershire County Council deemed the support provided by the young adults’ service to be Very Good in all five areas inspected. In addition, Ofsted inspected the children’s services in December 2022 and confirmed that the Spring Centre complied with all requirements for voluntary registration on the Childcare Register.
The Centre again benefitted from ‘community day’ support from local businesses. Assistance was provided with gardening, DIY jobs and painting and decorating of the premises.
The Board of Trustees was strengthened with the addition of two new Trustees with skills and experience that complement those of existing Trustees.
The first phase of a programme for digital transformation of the services was rolled out, providing for more efficient operation of the business.
Future Developments
The Spring Centre is working towards increasing the number of places available and to build connections with other Community organisations, to meet the increasing demand from children and young people in Gloucestershire.
The key objectives for the year 2022/23 are:
To continue the Spring Centre commitment to providing exceptional service and support for children and young adults with additional needs
To strengthen the Board of Trustees and with it the financial management and overall governance of the charity
To continue 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
The Statement of Financial Activities shows a deficit in operations (Unrestricted Funds) of £5,151.
Operating income for the year increased from £103,175 to £123,263. Grant income included Julia and Hans Rausing Trust £10,000 (second and final year payment), Edward Gostling Small Grant £10,000 (£7,500 allocated to 2023/24), National Lottery Community Fund £10,000 (£8,200 allocated to 2023/24), GCC Thriving Community Grant £7,500, GCC HAF 2022 Fund £9,790, Albert Hunt Trust £2,000. Donations of £25,388 received include: Legacies £1,717, TK Maxx £1,000, Rotary Clubs £700.
The balance sheet shows that despite holding significant assets consisting mainly of the property, the Trust has limited cash reserves. This will continue to pose significant fundraising challenges for the Trustees.
Tangible Fixed Assets
Details of movements in fixed assets are shown in note 13 to the financial statements.
Reserves
We consider the present level of funding to be adequate to support the running of the Trust for the near 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 the Trustees deem appropriate.
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 and approved in consultation between the Management Team and Trustees.
The Trustees monitor the income and expenditure at the monthly meetings. This enables them to:
Identify strengths and weaknesses in both the monthly and annual position.
Through discussion and debate, determine any actions that are required.
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.
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 are 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 notes 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: charitable work (provision of services, fundraising, and administration). It currently employs 11 members of staff.
The Trustees have appointed Griffiths Marshall to act as Independent Examiners.
This report was approved by the Board of Directors and Trustees on 11th December 2023 and signed on its behalf.
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the financial activities of the charity and its financial position at the end of that year.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report 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 2023.
As the trustees of the trust (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 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.
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 trust 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.
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 amounts 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.
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.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 the statement of financial activities.
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 payments 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.
Grants
Adult services
Children services
Other income
Direct expenses
Printing & stationery
General expenses
Insurance
Light & heat
Motor & travel
Repairs & maintenance
Bank charges & interest
Telephone
Management costs includes payments to the accountants of £1,800 (2022- £1,200 for independant examination fees.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
There were no disclosable related party transactions during the year (2022 - none).