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Notes to the financial statements
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. GENERAL INFORMATION
South West Coast Path Association is a charitable incorporated organisation, registered in England and Wales. The registered office is Unit 11, Residence 2, Royal William Yard, Plymouth, PL1 3RP.
2. ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
South West Coast Path Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 INCOME
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Income received for Life Memberships are credited to deferred income and from there recognised as income in 15 equal annual installments.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. ACCOUNTING POLICIES (continued)
2.3 EXPENDITURE
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.4 INTEREST RECEIVABLE
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.5 STOCKS
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.6 DEBTORS
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.7 CASH AT BANK AND IN HAND
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.8 LIABILITIES AND PROVISIONS
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. ACCOUNTING POLICIES (continued)
2.9 FINANCIAL INSTRUMENTS
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.10 PENSIONS
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.11 FUND ACCOUNTING
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Life memberships are deferred over the expected term of the membership. This has been assumed to be 15 years.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
4. INCOME FROM DONATIONS AND LEGACIES
Donations & Gift Aid Legacies Grants
Unrestricted funds 2021 Restricted funds 2021
Total funds 2021 £ £ £
82,816 2,656 85,472 5,591 - 5,591 - - -
88,407 2,656 91,063
Challenge & Other Events Donations & Gift Aid Legacies Grants As restated Unrestricted funds 2020 Restricted funds 2020
As restated Total funds 2020 £ £ £ 11 - 11 71,447 14,076 85,523 16,044 - 16,044 36,000 - 36,000
123,502 14,076 137,578
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
5. INCOME FROM CHARITABLE ACTIVITIES
Membership Subscriptions Waymaker Business Memberships Sale of Guides & Maps Trail Partnership Project CAN Project Grants Path Improvements Grant National Trail Team Grants Natural England Grants
Membership Subscriptions Waymaker Business Memberships Sale of Guides & Maps Trail Partnership Project CAN Project Grants Path Improvements Grant National Trails Team Grant Natural England Grant
Unrestricted funds 2021 Restricted funds 2021
Total funds 2021 £ £ £
129,333 - 129,333 7,912 - 7,912 41,677 - 41,677 - 35,000 35,000 - 4,354 4,354 - 5,000 5,000 - 86,637 86,637 - 46,148 46,148
178,922 177,139 356,061
As restated Unrestricted funds 2020 Restricted funds 2020
As restated Total funds 2020 £ £ £
114,660 - 114,660 23,971 - 23,971 31,149 - 31,149 - 35,000 35,000 - 6,495 6,495 2,375 10,988 13,363 - 86,443 86,443 - 37,447 37,447
172,155 176,373 348,528
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
6. FUNDRAISING INCOME
Sale of Merchandise Waymaker Business Sponsorships Corporate Sponsorships Misc Income
TOTAL 2021
Sale of Merchandise Waymaker Business Sponsorships Corporate Sponsorships
7. INVESTMENT INCOME
Bank Interest
Unrestricted funds 2021
Total funds 2021 £ £
25,981 25,981 9,299 9,299 32,327 32,327 1,256 1,256
68,863 68,863
As restated Unrestricted funds 2020 Restricted funds 2020
As restated Total funds 2020 £ £ £
21,182 240 21,422 742 - 742 27,521 - 27,521
49,445 240 49,685
Unrestricted funds 2021 Total funds 2021
Total funds 2020 £ £ £
3,950 3,950 4,131
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8. EXPENDITURE ON RAISING FUNDS
Cost of Merchandise Donations and Legacies Costs Corporate and Waymaker Sponsorship Costs Staff Costs
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES
Promotion, Protection & Improvement of Coast Path
Promotion, Protection & Improvement of Coast Path
Unrestricted funds 2021 Total funds 2021
As restated Total funds 2020 £ £ £
24,037 24,037 18,457 6,609 6,609 15,068 11,406 11,406 15,486 50,012 50,012 49,887
92,064 92,064 98,898
Activities undertaken directly 2021 Support costs 2021
Total funds 2021 £ £ £
158,126 350,511 508,637
As restated Activities undertaken directly 2020 As restated Support costs 2020
As restated Total funds 2020 £ £ £
120,223 279,322 399,545
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)
ANALYSIS OF SUPPORT COSTS
Staff Salaries & Employer Costs Professional Fees Volunteer Expenses Other Staff Costs Governance Costs Premises Costs Administration Costs IT Expenses Accountancy Fees Irrecoverable VAT
Total funds 2021
As restated Total funds 2020 £ £
243,798 216,597 1,887 370 6,122 543 13,968 6,653 4,439 1,898 22,877 18,763 1,614 1,681 40,934 21,764 4,470 3,700 10,402 7,353
350,511 279,322
10. INDEPENDENT EXAMINER'S REMUNERATION
The independent examiner's remuneration amounts to an independent examiner fee of £4,470 (2020: £3,700).
11. STAFF COSTS
Wages and salaries Social security costs Contribution to defined contribution pension schemes As restated 2021 2020 £ £
258,509 235,803 19,946 16,928 15,355 13,753
293,810 266,484
The average number of persons employed by the Charity during the year was as follows:
Support Staff 2021 2020 No. No.
9 8
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
11. STAFF COSTS (CONTINUED)
No employee received remuneration amounting to more than £60,000 in either year.
The key management personnel of the Charity comprises of Trustees, who do not receive remuneration for their roles as in note 12, and the senior management team as set out on page 1. The total amount of employee benefits received by key management personnel for their services to the charity was £47,908 (2020: £47,670).
The Charity's volunteers take roles as Trustees, technical experts on one of our Committees or Working Groups or as Area or Local Representatives looking after a specific section of the Path. The latter walk the Path regularly, undertake an annual condition survey and report on any Path matters, they come together as the Path Committee to make important recommendations about projects that may need funding from Association or grant funds.
12. TRUSTEES' REMUNERATION AND EXPENSES
During the year, no Trustees received any remuneration or other benefits (2020: £Nil).
During the year ended 31 December 2021, expenses totalling £486 were reimbursed or paid directly to 5 Trustees (2020: £443 to 4 Trustees).
13. STOCKS
Finished goods and goods for resale 2021 2020 £ £ 6,641 9,406
14. DEBTORS
DUE WITHIN ONE YEAR
Trade debtors Other debtors Prepayments and accrued income 2021 2020 £ £
1,401 10,498 1,515 1,376 28,981 65,836
31,897 77,710
15. CURRENT ASSET INVESTMENTS
Cash investments
2021 2020 £ £ 597,549 596,346
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors Accruals and deferred income 2021 2020 £ £
7,274 11,255 88,451 72,191
95,725 83,446
17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Deferred income 2021 2020 £ £
18,139 27,454
Deferred income due after more than 1 year includes amounts relating to income from Lifetime Memberships, which is being released over a period of 15 years straight line. In the current year, deferred income of £Nil is due after more than 1 year in relation to grant income (2020: £6,724).
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
Deferred income 2021 2020 £ £
7,770 10,362
7,770 10,362
18. FINANCIAL INSTRUMENTS
2021 2020 £ £
FINANCIAL ASSETS
Financial assets measured at fair value through income and expenditure 808,669 837,891
Financial assets measured at fair value through income and expenditure comprise cash in hand and at bank and current asset investments.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
19. STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR
Balance at 1 January 2021 £ Income £ Expenditure £ Transfers in/out £ Balance at 31 December 2021 £
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Promote and Protect Path 215,010 - (46,400) 44,000 212,610 Trail Partnership Project 9,625 - - (9,625) Capacity Building 86,686 - (45,186) - 41,500 Legacies 303,948 - (11,079) (60,000) 232,869 Natural Trails Alliance - - (24,676) 60,000 35,324
615,269 - (127,341) 34,375 522,303
GENERAL FUNDS
General Funds
TOTAL UNRESTRICTED
FUNDS 169,219 340,142 (280,812) (50,455) 178,094
784,488 340,142 (408,153) (16,080) 700,397
RESTRICTED FUNDS
Promote and Protect Path 9,941 5,000 (8,008) 1,080 8,013 Trail Partnership Project - 42,500 (54,479) 15,000 3,021 National Trails Team - 79,137 (71,948) - 7,189 Donations 19,678 2,551 (8,773) - 13,456 Outreach Projects - 4,459 (3,192) - 1,267 Natural England - 46,148 (46,148) - -
29,619 179,795 (192,548) 16,080 32,946
TOTAL OF FUNDS 814,107 519,937 (600,701) - 733,343
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
19. STATEMENT OF FUNDS (CONTINUED)
DESIGNATED FUNDS
Promote & Protect Path - Promotion & protection of the South West Coast Path, at the discretion of the Trustees.
Trail Partnership Project - Charity contribution for the delivery of the Trail Partnership Project, agreed by the Trustees at £15,000 each year.
Capacity Building - Match funding designated for RDPE South West Coast Path Improvement Projects.
Legacies - Legacies designated for improving the Coast Path experience, & to build the capacity & longterm benefits of the Charity.
National Trails Alliance - Charity contribution to establish a new CIO promoting the UK National Trails.
RESTRICTED FUNDS
Promote & Protect Path - Improvements to the South West Coast Path, restricted by conditions from the donor or funder.
Trail Partnership Project - Delivery of the Trail Partnership Project, funded by its partners comprising 6 Highways Authorities & the National Trust.
National Trails Team - Hosting the South West Coast Path National Trails Team, funded by a grant from Natural England.
Donations - Specific improvements to the South West Coast Path, funded by donations from Appeals and Memorials.
Outreach Projects - Projects to support equity of access on the Coast Path for disadvantaged adults, funded by Active Devon and N Devon AONB.
Natural England - National Trails Alliance development work, ECP signage, Coast Path improvements & Volunteers support, funded by grants from Natural England.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
19. STATEMENT OF FUNDS (CONTINUED)
STATEMENT OF FUNDS - PRIOR YEAR
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Balance at 1 January 2020 £ Income £ Expenditure £ Transfers in/out £ Balance at 31 December 2020 £
Promote and Protect Path 185,238 - (9,168) 38,940 215,010 Trail Partnership Project 11,161 - - (1,536) 9,625 Capacity Building 86,686 - - - 86,686 Legacies 299,246 13,943 (9,241) - 303,948
582,331 13,943 (18,409) 37,404 615,269
GENERAL FUNDS
General Funds
TOTAL UNRESTRICTED
FUNDS
152,723 335,290 (254,754) (64,040) 169,219
735,054 349,233 (273,163) (26,636) 784,488
RESTRICTED FUNDS
Promote and Protect Path 12,536 13,384 (17,909) 1,930 9,941 Trail Partnership Project - 42,500 (59,036) 16,536 National Trails Team - 78,943 (78,943) - Donations 19,931 11,591 (11,844) - 19,678 CAN Project 5,107 6,824 (20,101) 8,170 Natural England - 37,447 (37,447) - -
37,574 190,689 (225,280) 26,636 29,619
TOTAL OF FUNDS
772,628 539,922 (498,443) - 814,107
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
20. ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
Current assets Creditors due within one year Creditors due in more than one year
Unrestricted funds 2021 Restricted funds 2021
Total funds 2021 £ £ £
799,754 47,453 847,207 (81,218) (14,507) (95,725) (18,139) - (18,139)
TOTAL
700,397 32,946 733,343
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Current assets Creditors due within one year Creditors due in more than one year Unrestricted funds 2020 Restricted funds 2020
Total funds 2020 £ £ £
875,925 49,082 925,007 (70,707) (12,739) (83,446) (20,730) (6,724) (27,454)
TOTAL
784,488 29,619 814,107
21. PENSION COMMITMENTS
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £15,355 (2020: £13,753). Contributions totalling £171 (2020: £1,744) were payable to the fund at the balance sheet date and are included in creditors
22. OPERATING LEASE COMMITMENTS
At 31 December 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
Not later than 1 year Later than 1 year and not later than 5 years 2021 2020 £ £
11,665 30,076 - 12,233
11,665 42,309
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
23. MEMBERS' LIABILITY
Each member of the Charity undertakes to contribute to the assets of the Charity in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £Nil for the debts and liabilities contracted before he/she ceases to be a member.
24. RELATED PARTY TRANSACTIONS
None of the Trustees receive remuneration or other benefits from their work with the Charity. Trustees are required to complete an annual 'declaration of interests' as well as stating any conflicts of interests before the start of each Board of Trustees meetings. As such, no related party transactions occurred in the year.
25. CONTROLLING PARTY
The ultimate controlling party is the Trustees. No individual member has ultimate control.
South West Coast Path Association
Registered charity no: 1163422