Annual Report of Accounts
Organisation Number: 0027695R
Clapton Park Management Organisation Limited
Report and Financial Statements
31 March 2020
Registered in England & Wales
Dominique House I Church Road Netherton Dudley West Midlands DY2 OLY
Registered as Auditors by the Association of Chartered Certified Accountants
Annual report and financial statements for the year ended 31 March 2020
1 – 2 Report of the Board of Management
3 – 6 Independent auditors ‘ report to the members
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- – 18 Notes forming part of the financial statements
Thefollowing pages do notform part of the statutoryfinancial statements
20 Detailed Statement of Comprehensive Income
|M Siddiqui||S Shand|
|K Gruber (Treasurer)||O Nwanebu|
|M White||S Patrick (Councillor)|
|J Mowatt (Chair)||R Rennison (Councillor)|
|T Rahilly (Councillor)||D Bent (Vice Chair)|
|J Lane||N Ali (Secretary) M Ventur|
Secretary and registered office
N Ali , The Housing Office, 4a Gilpin Road, London, E5 4HL
GCN (Auditing) Limited, Dominique House
1 Church Road, Netherton, Dudley, DY2 OLY
Report of the Board of Management for the year ended 31 March 2020
The board members present their report together with the audited financial statements for the year ended 3 1 March 2020.
The organisation ‘s principal activity during the year was the management and maintenance of property on the Clapton Park Council Estate via a management agreement with Hackney Council.
The organisation did not make charitable donations in excess of E2,000 during the year.
The committee of the board during the year were as follows:-
M Siddiqui S Shand
K Gruber (Treasurer) O Nwanebu
M White S Patrick (Councillor)
J Mowatt (Chair) R Rennison (Councillor)
T Rahilly (Councillor) D Bent (Vice Chair)
J Lane N Ali (Secretary)
Report of the Board of Management for the year ended 31 March 2020 (Continued)
Board of Management’s responsibilities
Organisation law requires the board members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the organisation and of the surplus or loss of the organisation for that year. In preparing those financial statements, the board members are required to:
- select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent;
- follow applicable accounting standards, subject to any materials departures disclosed and explained in the accounts.
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the organisation will continue.
The board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the organisation and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014, They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure of information to auditors
The board members of the organisation who held office at the date of approval of this annual report confirm that:
So far as they are aware, there is no relevant audit information, information needed by the organisation’s auditors in connection with preparing their report, of which the organisation’s auditors are unaware; and
They have taken all the steps that they ought to have taken as board members in order to make themselves aware of any relevant audit information and to establish that the organisation’s auditors are aware of that information.
GCN (Auditing) Limited have expressed their willingness to continue in office and a resolution to reappoint them will be proposed at the annual general meeting.
Small organisation rules
The board members are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the Board
J Mowatt, Chair
18 September 2020
We have audited the financial statements of Clapton Park Management Organisation Limited (the ‘organisation’) for the year ended 31 March 2020 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the organisation’s members, as a body, in accordance with chapter 1 – 5 of section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the organisation’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the organisation and the organisation’s members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
- give a true and fair view of the state of the organisation’s affairs as at 31 March 2020 and of its surplus for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies
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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the organisation 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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where:
The committee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
The committee have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the organisation’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The committee are responsible for the other information. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Co-operative and Community Benefit Societies Act 2014
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the committee’s report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the committee’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the organisation and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the management committee report.
We have nothing to report in respect of the following matters in relation to which the Co-operative and Community Benefit Societies Act 2014 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 the committee’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- the committee members were not entitled to prepare the financial statements and the report in accordance with the small companies regime.
Responsibilities ofthe committee
As explained more fully in the committee’ responsibilities statement set out on page 2, the committee 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 committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the committee are responsible for assessing the organisation’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 committee either intend to liquidate the organisation or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilitiesfor the audit of thefinancial 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 an auditor’s report 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 ofusers taken on the basis of these financial statements.
As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the committee.
Conclude on the appropriateness of the committee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organisation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the organisation to cease to continue as a going concern,
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Martin Bradley FCCA (Senior Statutory Auditor)
For and on behalf of
GCN (Auditing) Limited
Chartered Certified Accountants & Statutory Auditors
1 Church Road
West Midlands DY2 OLY
18 September 2020
Comprehensive Income for the year ended 31 March 2020
Note 2020 2019
Operating costs 867,862 977,096
|Operating gross surplus||596,915||528,529|
|Bank interest received Interest payable||2,268||1,479|
|Surplus/(deficit) on ordinary activities before taxation||106,450||38,091|
|Taxation on surplus from ordinary activities||(298)||(281)|
|Surplus/(deficit) on ordinary activities after taxation||106,152||37,810|
|Transfer (to) from cyclical fund||(13,550)||48,550|
|Allocate 10% to reserve fund||(10,615)||(3,781)|
|Comprehensive Income for the year
Other comprehensive income
|Re-measurement of pension scheme||61,013||(19,000)|
Financial Position at 31 March 2020
Note 2020 2019
Tangible assets 5 7,386 8,073
Stock 9,042 13,208
Debtors 6 35,819 33,342
Cash at bank and in hand 784,201 675,616
|Creditors: amounts falling due||829,062||722,166|
|within one year||7||(203,730)||(191,686)|
|Net current assets||625,332||530,480|
|Total assets less current liabilities||632,718||538,553|
|Total assets less current liabilities||567,718||400,553|
|Capital and reserves|
These accounts have been prepared in accordance with the special provisions relating to small companies within the Co-operative and Community Benefit Societies Act 2014 and the FRS 102 Section IA — Smaller Entities.
These accounts were approved by the board on 18 September 2020 signed on its behalf by:
|At 31 March 2020||13||40,801||14,741||577,163||(65,000)||567,718|
Changes in Equity for the year ended 31 March 2020
|At 1 April 2018
Surplus and total comprehensive income for the year
|Transfer from reserves
Pension commitments- prior
Issue of shares
|At 31 March 2019 (re-stated)||13||27,251||4,126||507,163||(138,000)||400,553|
|At 1 April 2019
Surplus and total comprehensive income for the year
|Transfer from reserves||13,550||10,615||(24,165)|
Issue of shares
1 Accounting policies
The financial statements have been prepared under the historical cost convention and are in accordance with the Financial Reporting Standards 102 and the Co-operative and Community Benefit Societies Act
The company has taken advantage of the reduced disclosures and exemptions under FRS 102 IA— Small Entities and as such is not required to prepare a statement of cashflows.
Judgements and key sources ofestimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Income represents allowances received and recharged repairs.
Tangiblefixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided to write off the cost or valuation, less estimated residual values, of all fixed assets, except freehold land, evenly over their expected useful lives. It is calculated at the following rates:
|Improvements to property||25% per annum straight line|
|Motor vehicles||25% per annum straight line|
|Fixtures, fittings and equipment||25% per annum straight line|
|Computer equipment||25% per annum straight line|
Government grants/assistance of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.
Stocks are stated at the lower of cost and net realisable value.
1 Accounting policies
Leasing and hire purchase contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
Provisions are recognised when the company has a legal or constructive obligation at the repofiing date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated.
Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.
Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years.
A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of transactions and events recognised in the financial statements of current and previous periods.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is recognised on all timing differences at the reporting date apart from certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing differences. Deferred tax relating to land and investment properties that is measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset.
1 Accounting Policies (continued)
Holiday pay accrual
Provision is made at each balance sheet date for holidays accrued but not taken, to the extent that they may be carried forward, calculated at the salary of the relevant employee at that date.
Short-term employee benefits
Short-term employee benefits are recognised as an expense as they are incurred.
Post-employment defined contribution plans
Amounts in respect of defined contributions are recognised as an expense as they are incuned.
Provision for determination benefits are recognised only when the company is demonstrably committed to terminate the employment of an employee or of a group of employees before their normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.
The Organisation participates in a final salary defined benefit schemes. Pension costs are assessed in accordance with the advice of an independent qualified actuary. Costs include the regular cost of providing benefits which it is intended should remain a substantially level percentage of current and expected future earnings of the employees covered. Variations from the regular pension costs are spread evenly through the income and expenditure account over the average remaining service lives of current employees.
None of the income was derived from outside the United Kingdom and is wholly attributable to the principal activities of the organisation.
3 Operating surplus/(deficit)
|This is arrived at after charging:
|Owned tangible fixed assets||3,853||3,794|
|Operating lease payments||7,751||5,994|
|Staff costs were as follows:||2020||2019|
|Salaries and associated costs||608,684||608,230|
|Social security costs||45,720||54,340|
|Other pension costs||33,949||31,078|
The average monthly number of employees, including seconded staff, duHng the year was as follows:-
Full time 20 22
The organisation contributes to the Social Housing Pension Scheme.
The figures shown here have been calculated by an independent consultant.
Amounts recognised in the statement of financial position
|Surplus/(deficit) in plan
Impact of asset ceiling
|Defined benefit asset/(liability) to be recognised
Defined benefit costs recognised in the statement of comprehensive income
|Current service cost||E’000||E’OOO|
|Net interest expense||3||3|
|Defined benefit costs recognised in|
|statement of comprehensive income||6||5|
|Re-measurements recognised — gain/(loss)||(19)|
Asset and benefit obligation reconciliation
Defined benefit obligation
|Defined benefit obligation at start of period Current service cost expenses||507||474|
Contributions by plan participants
|Actuarial losses/(gains) due to scheme experience||6||(7)|
|Actuarial losses/(gains) due to changes in demographic assumptions||(4)||1|
|Actuarial losses/(gains) due to changes in financial assumptions||(67)||38|
|Benefits paid and expenses||(4)||(13)|
|Closing defined benefit obligation||453||507|
Liabilities acquired in a business combination
Liabilities extinguished on settlements
Losses/(gains) on curtailments
Losses/(gains) due to benefit changes
Exchange rate changes
Asset and benefit obligation reconciliation (Continued)
Fair value of plan assets
|Fair value of plan assets at start of period 369||352|
|Interest income 9||9|
|Experience on plan assets (excluding amounts included in interest income) — gain/(loss) (1)||13|
|Contribution by the employer 15
Contributions by plan participants
|Benefits paid and expenses (4)
Assets acquired in business combination
Assets distributed on settlements
Exchange rate changes
|Closing fair value of plan assets
Fair value of plan assets (continued)
The estimated asset allocation at the year-end is as follows:
|31 March 2020||31 March 2019|
|Credit Relative Value||11||7|
|Alternative Risk Premia||27||21|
|Fund of Hedge Funds||2|
|Emerging Markets Debt||12||13|
|Colporate Bond Fund||9||17|
|Long Lease property||22||5|
|Over 15 Year Gilts||7|
|Liability Driven Investment||128||135|
|Net Current Assets||2|
The key assumptions used to calculate the results are as follows:
|Inflation (CP 1)||1.58||2.25|
|Allowance for commutation of pension for cash at retirement||75% of||75% of|
The mortality assumptions adopted at 31 March 2020 imply the following life expectancies: Life expectancy
At age 65 (years)
|Male retiring in 2020||21.5|
|Female retiring in 2020||23.3|
|Male retiring in 2040||22.9|
|Male retiring in 2040
Remeasurements in other comprehensive income
Remeasurement of the net assets/(defined liability)
|Experience on plan assets (excluding amounts||eooo’s||E000’s|
|included in net interest cost) — gain/(loss)||(1)||13|
|Experience gains and losses arising on the plan liabilities gain/(loss) Effects of changes in the demographic assumptions underlying||(6)||7|
|the present value of the defined benefit obligation gain/(loss) Effects of changes in the financial assumptions underlying||4||(1)|
|the present value of the defined benefit obligation – gain/(loss)||67||(38)|
|Remeasurement of the net assets/(defined liability)||64||(19)|
I Defened taxation has been ignored.
- During the current year the pension fund has provided a disclosure of the full liability of Clapton Park Management Organisation Limited, together with comparatives. The prior year has been re-stated to reflect the liability of the organisation as at 31 March 2019.
5 Tangible assets
|At 1 April 2019 72,658||95,529||52,348||50,180||270,715|
|At 31 March 2020||72,658||95,906||52,348||39,521||260,433|
|At 1 April 2019||72,658||94,254||45,713||50,017||262,642|
|Provided for the year
Eliminated on disposals
|At 31 March 2020||72,658||95,551||47,988||36,850||253,047|
Net book value
At 31 March 2020 355 4,360 2,671 7,386
|All amounts under debtors fall due for payment within one year.|
|7||Creditors: amounts falling due within one year|
|Taxation and social security||31,776||33,844|
|Accruals and deferred income||72,940||17,523|
At 31 March 2019 1,275 6,635 163 8,073
Trade debtors 12,300 10,387 Prepayments and accrued income 23,519 22,955 (Continued)
8 Share capital
Members shares of El each 13 13
|9||Surplus and reserve funds|
|Surplus fund||Relates to surpluses made since the Organisation was formed.|
|Reserve fund||Relates to 10% of annual surplus set aside for unforeseen circumstances|
|Cyclical fund||Relates to monies put aside for cyclical repair costs|
10 Operating lease Commitments
The following operating lease payments are committed to be paid:
Expiring within one year
Expiring between two and five years 21,056 13,891
The page which follows does not form part of the statutory financial statements of the organisation
Management Statement of Comprehensive Income for the year ended 31 March 2020
|Planned work from surpluses||13,550|
|Direct repair costs||1,464,477|
|Day to day||142,580|
|Doors and windows||3,064|
|Fencing and gates||39,058|
|Bathrooms and showers||15,675|
|Concierge service Nye Bevan Tower||27,896|
|Cleaning and grounds maintenance||55,701|
|Bank interest received||2,268|
|Administration salaries and pensions||376,648|
|Hire or plant and equipment||7,855|
|Light and heat||3,946|
Repairs and renewals
General administrative expenses:
|Licences and insurance||11,704|
|Printing, postage and stationery||2,998|
|Motor and travelling expenses||14,214|
|Legal, professional and consultancy||25,650|
|Training and social||17,449|
|Advertising and promotional||689|
Net surplus/(deficit) 106,450