Strengthening and supporting communities in SurreyReport Of The Trustees And Financial Statements Year Ended 31 March 2016

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ContentsChairman’s Statement 3

Chief Executive’s report 4

Report of the Trustees - Objectives and aims 5

Report of the Trustees - Achievements & Performance 6

Report of the Trustees - Fundraising Activities 8

Report of the Trustees - Financial Review & Future Developments 9

Report of the Trustees - Structure, Governance & Management 10

Statement of Trustees Responsibilities 11

Statement of Financial Activities 12

Balance Sheet 13

Statement of Cashflow 14

Notes to the Financial Statements 15 - 26

Report of the Independent Auditors 27

Reference and Administrative details 28

Detailed Statement of Financial Activities 29

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Surrey Community ActionAstolat, Coniers Way

Burpham, GuildfordSurrey GU4 7HL

Tel: 01483 566 072Email: info@surreyca.org.uk

www.surreyca.org.ukCompany Resistered in England No. 3203003

Charity Registered No. 1056527

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Chairman’s StatementThe challenges of change together with the downward pressure on financial support from national and local government have continued in 2015/2016. Regrettably, many in the voluntary sector in our county have had to contract or worse close.

Responding to these challenges, we routinely review our working strategy against a changing environment: endeavouring to offer support and services relevant to current and future needs. Rather than maintaining the status quo we have invested in the future, creating new posts and offerings to match forecast needs and, to ensure we remain fit-for-purpose.

I am pleased to confirm that as well as further developing the services we offer and building our project base, we have ended 2015/2016 with a sustainable financial performance, which is a

credit to our talented and enthusiastic operational team supported by the Board of Trustees. We are appreciative of our staff team who continue to develop their skills, thus giving us the flexibility to adapt to new service offerings. We are delivering on our strategic objectives and moving forward into 2016/2017 with confidence, able to offer a growing portfolio of services and projects, underwritten by a sound financial outlook.

We are committed to cooperation and collaboration with colleagues and organisations across the voluntary and community sectors. To this end, our staff team and trustees are well represented in forums and representative bodies across Surrey county and county cross-border activities including partnerships with Action Hampshire. Our Trustees and staff team are represented on boards such as the

Surrey Civil and Military Partnership Board and also on several influential action groups of our Local Enterprise Partnerships - Enterprise M3 and Coast to Capital.

At the end of 2015/2016 we were sorry that one of our trustees, Peter Gordon, stepped down due to the growing demands of his other interests, such as Health Watch Surrey. We thank Peter for his significant contribution to Surrey Community Action, as Chair of the Board and latterly a Trustee. He steered Surrey Community Action to a much more optimistic future.Our intent is to remain flexible and adaptable, open to collaboration and committed to the changing and best interests of the community we serve.

Michael Cannon

We have invested in the future, creating new posts and offerings to match forecast needs and, to ensure we remain fit-for-purpose.

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Chief Executive’s reportThis report covers a year that has felt busier, more productive, and more successful than many before.  We ended the year in a very positive financial position, despite having strategically invested some of our reserves in core staff to make us stronger for the future.  The reason we do this is so that we can make a bigger difference to the voluntary, community and faith sector groups we support, and I think we have been very successful in this during 2015-2016.

Our advocacy and representation work has been very varied this year.  We helped design Child and Adolescent Mental Health Services in Surrey, ensuring that the voluntary sector’s important role is recognised and rewarded.  We have supported the Surrey Countryside and Rural Enterprise Forum in developing the Rural Statement for Surrey, showing how organisations can come together to address some of the major challenges facing our rural communities.  We helped run a Corporate Social

Responsibility event with Surrey County Council, looking at how charities and companies can work together to maximize social value.  We also worked long and hard to ensure that the voluntary sector across West Surrey and Hampshire was ready to apply for the latest version of European Social Fund on behalf of the enterprise M3 Local Enterprise Partnership.

2015/16 also saw the end of our £1.8m European Social Fund funded Community Grants programme in which we distributed funds across south east England, helping those furthest from the labour market get closer to work.  We also launched the Drive Into Action project to get more volunteers drivers for our Good Neighbour Schemes, a process that was so successful that it is being repeated next year.

Our profile in the county continues to increase.  Our social media following has increased in leaps and bounds over the last twelve months, and allows us to reach many more people with our

messages and brings even more people to our events and activities, such as our funding fair and “bite-sized” training courses on measuring social impact, effective governance, and beyond.  We have presented on community buildings to the Sussex and Surrey Association of Local Councils, and have stood in front of a national audience discussing the best way to work with Local Enterprise Partnerships.  We even brought in expertise from the pro bono consultancy firm Skylark, to talk to peers about the importance of collaboration.

I talk to many of Surrey Community Action’s peers and partners, and we all agree that 2015/16 has not been an easy year for the voluntary sector, and charities in particular, but I genuinely feel that Surrey Community Action has come out of it a stronger organisation well placed to address the next challenges, whatever they may be.

Jason Gaskell

a year that has felt busier, more productive, and more successful than many before.

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Objectives and Aims

1. Advocacy and Representation - we will be advocates on behalf of the VCFS in Surrey, ensuring that statutory bodies, private sector organisations, and other stakeholders understand the value of the VCFS and how it can support them to meet their objectives.

2. Knowledge and Understanding - we will be a focal point for knowledge and understanding of the VCFS in Surrey, being able to collate, analyse, personalise and disseminate the information necessary for VCFS organisations to thrive in a challenging environment.

3. Projects and Innovation - we will use our knowledge and understanding to inform new projects designed to meet new and emerging needs, or to fill needs that are not adequately met elsewhere.

4. Services - we will provide services, predominantly but not exclusively, to Surrey’s VCFS, that they can use to increase their effectiveness.

5. Financial Sustainability - we will be a financially sustainable organization, managing costs effectively and increasing funds to support our mission.

6. Management - we will be a professional and well-managed organization, with effective governance systems and processes, supporting as skilled and enthusiastic team of staff and volunteers, supporting a growing membership, and demonstrating appropriate use of the resources entrusted to us.

a. The promotion of any charitable purpose primarily for the benefit of the inhabitants of the County of Surrey and such other charitable work in other geographical areas within the United Kingdom which assist the work of the statutory and voluntary organisations engaged in advancing education, furthering health, relieving poverty, distress or sickness, promoting equality and diversity, improving skills or any other charitable purpose.

b. To promote and organise co-operation in the achievement of the charitable purpose by working with charities, authorities and organisations.

The objectives of the charity were revised in 2005 to read:

These objectives were clarified and updated in the strategic plan adopted by the Board in 2014, which identified 6 key strategic objectives for the organisation:

All services are offered to organisations who are registered charities or those working to charitable status or those wishing to work with charitable bodies and other not for profit organisations in line with public benefit. The charity trustees have taken full regard of the public benefit guidance published by the Charity Commission.

Surrey Community Action offers a comprehensive range of activities which will benefit voluntary, community groups, primarily in Surrey, and intends that these groups will use this acquired knowledge/support to better pursue their charitable aims/enhance the services they provide to their clients.

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7420While the difficulty of finding an affordable home in towns and cities is well-documented, it’s becoming impossible for young families to put down roots in Surrey’s rural villages and market towns. The unaffordability crisis in rural areas is putting local shops, pubs and schools at risk of closure while ageing populations place additional pressure on small communities.

Surrey Community Action’s Rural Housing Enabler works to assess the level of need for affordable housing in rural villages and consults with the local community to identify suitable land where homes can be built for local people in Mole Valley, Tandridge, Guildford and Waverley. These homes are usually developed as Rural Exception Schemes

meaning that the homes remain in perpetuity for local people, often providing a mix of rented and shared owner homes so that communities remain mixed and sustainable. A scheme to build 10 affordable homes for rent in Burstow began this year.

In 2015-16 our Rural Housing Enabler carried out housing needs surveys in Bletchingley, Capel, East Horsley, Lingfield, Tatsfield and Thursfield which reached over 7,420 households. The responses showed that 81 households are in need of appropriate rural housing and that there is an increasing lack of smaller homes in many of these rural areas both for older people looking to downsize and young people wanting to set up their own homes.

households responded to our rural housing needs surveys

Village halls and community centres are at the heart of Surrey’s communities. They are valuable community assets which provide a focus for community activity and often house a range of services such as playgroups, activities for older people and shops. Surrey Community Action supports the committee members, volunteers and paid staff who manage these buildings with tailored one to one advice on constitutional matters, health and safety, business planning and funding for capital projects as well as a number of other issues.

This year our Community Buildings Adviser has dealt with 737 enquiries from village hall management committees (a rise of 57% on 2014-15), supported 51 building projects and helped to leverage in £5,285,042 of funding into the county through the Community Buildings Grant Scheme. Training sessions this year covered trustees’ roles and responsibilities, governance, fire safety, crime prevention, PAT testing and building maintenance benefiting 1,770 trustees, staff and volunteers.

Achievement and PerformanceCharitable activities

The number of enquiries from village halls our Community Buildings Adviser dealt with last year

+ 737

Rural Housing Enabler

Community Buildings Adviser

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Voluntary Car and Good Neighbour SchemesVoluntary Car Schemes and Good Neighbour Schemes provide transport for isolated or disadvantaged people to GP and hospital appointments, to local shops and hairdressers, as well as offering home support to enable people to remain physically and mentally well and independent. There are over 100 schemes across Surrey, 86 of which are supported by Surrey Community Action’s Voluntary Car Scheme Adviser.

This support is a key element in making a difference to community needs locally. The service ensures that vulnerable, isolated and disadvantaged residents of Surrey are helped to maintain and/or improve their quality of life. Our Adviser strengthens and maintains the capacity of the local groups who provide this support. During 2015-16, 122,473 hours (a 30% increase on 2014-15) were spent taking old and vulnerable people on car trips, the majority of them health related and we can reasonably estimate that the number of miles driven by car schemes across Surrey is well over 750,000.

Surrey Community Action helps to develop new schemes and provides on-going advice and support to existing schemes as well as DBS checks for volunteers. This year, our Good Neighbour Scheme Co-ordinator has been in contact with 100 schemes, has been working to establish new schemes in Godalming, The Clandons, Capel, Nutfield and Reigate and Banstead and has responded to 1,215 enquiries.

I know your adviser is always at the end of the phone which is a great help

Drive into ActionAs the population ages, and as cuts impact on local transport services and result in the centralisation of health services, demand for the service provided by voluntary car schemes is increasing year on year but the number of volunteer drivers is falling.

In May 2015 Surrey Community Action, backed by funding from Surrey County Council, launched a county wide recruitment campaign called ‘Drive into Action’ to boost the number of volunteer drivers.

Posters and leaflets, branded car air-fresheners and trolley coin key rings have been distributed across the county and are handed out at roadshow events at supermarkets and community events such as the County Show.

Over the course of the campaign 69 new volunteers were recruited, benefitting 43 schemes. The scheme was so effective that Surrey County Council have agreed to fund the campaign again in 2016/17.

Gypsy and Traveller Support WorkWorking in multi-agency partnerships to help communities with housing and financial issues, our Community Development Worker has supported 96 families since the start of the project, with 15 open cases at any one time. Families facing eviction, homelessness and debts value the support and advice which enables them to stay in their homes and receive the benefits to which they are entitled. Personalised support plans, signposting and liaison with other agencies are all part of the service.

European Social Fund Community GrantsSurrey Community Action completed delivery of a £1.8million ESF Community Grants programme in which we made small grants of up to £15,000 to organisations across South East England who are working to bring those furthest from the labour market closer to work. This project closed in July 2015 having helped 151 organisations work with 11,000 beneficiaries get closer to employment through training, advice and support.

+69 volunteer drivers were recruited last year

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Surrey Community Action offers a wide range of business services to charities, voluntary groups and to small local businesses including payroll support, meeting room hire, DBS checks and research. During

2015-2016, there were 2393 visitors to Astolat from 251 organisations. We processed 542 applications for DBS checks and provided a payroll service for 26 organisations.

Business services

542the number of DBS applications processed last year

The Big Lottery Fund and the two Local Enterprise Partnerships (LEPs) covering Surrey will be working together to allocate European Social Fund money from 2016 through to 2020, under the heading Building Better Opportunities (BBO). Surrey Community Action was selected as a partner in 2015 to work with the Enterprise M3 LEP and Action Hampshire to help voluntary sector

organisations get ready to access this funding for the west of Surrey and most of Hampshire.

As part of this, Surrey Community Action ran a series of introductory events and workshops to help prospective delivery partners get together and start to develop projects and partnerships to get ready for when the fund opened in June 2015. 

Sector support

2015-16 saw a further reduction in grants across the sector even though demand for support from the third sector from vulnerable people grew. We have continued to develop strong cases for support for a range of projects and bespoke services that the organisation is considering both solely and in partnership with others.

In 2015-16 we led on a bid to deliver a programme of social inclusion activities across West Surrey and Hampshire and on another to provide activities to help unemployed people create a social enterprise (or move into other employment, training or volunteering).

We successfully secured funding this year on a further bid to help unemployed people as a partner with WSX enterprises and on a one year project to provide advice and support on energy efficiency and fuel poverty in Surrey. 

Funding

ACREAon InsurersElmbridge Borough CouncilEnglish Rural Housing AssociationEuropean Social FundGuildford Borough CouncilMole Valley District CouncilMount Green Housing AssociationNorris and Fishers InsuranceOffice of the Police & Crime Commissioner

Reigate and Banstead CouncilRunnymede Borough CouncilSkills Funding AgencySupporting PeopleSurrey County CouncilTandridge District CouncilThe Big LotteryThe Department of HealthThe Innovation FundWaverley Borough CouncilWoking Borough Council

Funders and Partners

Financial ReviewThe total incoming resources for both unrestricted and restricted funds for the year amounted to £770,575 with outgoing resources of £809,122 (see page 12). This resulted in net expenditure of £38,547 of which £32,740 came from restricted funds brought forward from the previous year. The remaining amount of £5,807 net expenditure was from unrestricted funds made up of £2,757 from an existing designated fund to cover fixed asset depreciation within the Astolat building and finally £3,050 net expenditure from general core funds.

Surrey Community Action funds now total £327,098 of which £312,024 represents unrestricted funds and £15,074 represents restricted funds after transfers (see note 18). The restricted funds and income are only available for the specific projects and purposes as determined by the funders.

Investment Policy and Returns

The assets of a charity must be invested in accordance with the governing instrument and the Trustee Act 2000.

The overall objectives are to create sufficient income to enable the charity to carry out its purposes consistently year by year with due and proper consideration for future needs and the maintenance of the value of the invested funds while they are retained.

The foregoing policy and arrangements will be reviewed regularly by the Trustees in the following way; the Surrey Community Action treasurer reviews the investments and their performance every 3 months and if necessary seeks advice before presenting any recommendations for change to investments to the Trustees. An investment report is presented to the Board every 6 months.

Reserves Policy

Surrey Community Action holds reserves to:

• Fund cashflow fluctuations and to provide working capital in cases where funds are paid to us in arrears.

• Fund planned expenditure e.g. maintenance of our premises.

• Invest in the future capability of the organisation.

• Invest in capital items e.g. replacement of IT hardware. Fund unexpected expenditure i.e. unplanned building repairs or emergencies.

• Fund shortfalls in income when income does not reach expected levels.

The general fund, also known as the free reserves, are unrestricted funds which do not have to be earmarked and may be used generally to further the charity’s objectives. The level of free reserves is reviewed periodically by the trustees and stood at £299,491 excluding designated reserves of £12,533 at the 31st March 2016 which trustees have estimated is sufficient to cover working capital, investment in the future capability of the organisation and, in a difficult funding environment, to cover in the short term potential funding shortfalls.

Future Developments It is inevitable that statutory sector funding will continue to be squeezed, and Surrey Community Action will continue to represent the needs of charities and community groups hit by these funding challenges.  In parallel, we will ensure that our services are professionally delivered, efficient and represent excellent value for commissioners’ money.  As of now, the impacts of “Brexit” are unknown but we are expecting new challenges and opportunities to arise from it.

During the next year, we will be carrying out a major piece of work refreshing our last “Surrey Needs Analysis” and leading a conference on the state of Surrey and the voluntary sector’s response.  We will also be delivery a new project supporting people who are far removed from the labour market to start up social enterprises for their own financial security and to make a difference in their communities.

It is worth noting that our project and funding pipeline is looking very healthy, ensuring that Surrey Community Action is sustainable into the future as long as our services are required.

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Structure, Governance and ManagementGoverning document

Surrey Community Action is an independent registered charity working with communities to strengthen voluntary action. The Memorandum and Articles of Association is the governing document of the charitable company. An EGM (Extraordinary General Meeting) was held on 25th January 2011 to amend the Memorandum and Articles of Association.

Recruitment and appointment of new trustees

The trustees have powers to make appointments to the Board. These are ratified by a vote of the guarantor members at the Annual General Meeting. Trustees serve for a three-year period and may be re-elected for a further three year period. The Board meets at least six times a year.

No trustee has any beneficial interest in the company. All trustees are members of the company and guarantee to contribute £10 in the event of winding up. In accordance with Article 28, one third of the trustees retire at the Annual General Meeting and, being eligible, offer themselves for re-election. Trustees are elected at the AGM for a three year term. Nominations are sought from both our membership and from those with specific skills to ensure a balanced skill mix.

Induction and training of new trustees

All trustees receive an induction pack which explains their role, the role of the Board, Charity Commission and Company House requirements. They also

are given background information on previous Board decisions, Board papers, information about all services and are invited to meet other trustees and staff. They receive a copy of the staff handbook and an explanation of the current funding situation, the Business plan and future developments.

Organisational structure

The Board delegates responsibility for the day-to-day operation of the Charity to the Chief Executive. The delivery of services is organised into the following teams; Community Services and Resources & Support Services. In addition, Surrey Community Action administers the disbursement of grants from the Surrey Community Buildings Grants Scheme and from the Skills Funding Agency (European Social Fund).

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity and are satisfied that systems are in place to mitigate its exposure to these risks. A risk register has been established, is reviewed by the Board at its bi-monthly meetings and is updated regularly.

The Board of Trustees review the annual budget paying particular attention to the balance between income and expenditure and the amount needed to be retained in reserves. The Board of Trustees aims to maintain a system of financial controls, appropriate to the size and nature of the organisation.

The Board of Trustees liaised with its external auditors on their recommendations regarding financial controls. The system of financial controls is designed to manage rather than eliminate risk. Thereafter there will be an ongoing process for reviewing financial controls which will also assist in identifying risks and management thereof.

Employee Involvement and Internal Control

Surrey Community Action is an equal opportunities employer and welcomes applications from all sections of the community. Our building and offices offer full disabled access and we also offer a comprehensive programme of training to support employees or volunteers who are new to the sector. Surrey Community Action has a regular programme of staff meetings, the Board meet at least six times per annum to discuss strategic outcomes and senior staff and Board meet annually to review and plan future developments. The charity has a working policy for Equal Opportunities.

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Statement of Trustees ResponsibilitiesThe trustees (who are also the directors of Surrey Community Action for the purposes of company law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of

the charitable company for that period. In preparing those financial statements, the trustees are required to

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charity SORP;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to Disclosure of Information to AuditorsSo far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company`s auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company`s auditors are aware of that information.

AuditorsA resolution approving the re-appointment of Menzies LLP will be proposed at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

On Behalf of the Board.............................................................................. M Cannon - Trustee

Date: .............................................

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Statement Of Financial Activities (Incorporating The Income And Expenditure Account) For The Year Ended 31 March 2016 2016 2015 Unrestricted Restricted Total Total funds funds funds funds Notes £ £ £ £ INCOME Income from generated funds Voluntary income 2 119,521 - 119,521 133,758Income from generated funds - - -Investment income 3 724 - 724 1,607Income from charitable activities 4 Advice and support 24,131 134,459 158,590 180,149Grant making 276,608 276,608 1,777,889Communities 102,349 102,349 68,006Other 112,783 - 112,783 103,983 Total income 257,159 513,416 770,575 2,265,392 EXPENDITURE Charitable activities Advice and support 5-7 269,282 144,431 413,713 471,940Grant making 295,727 295,727 1,760,623Communities 105,998 105,998 83,264Other 119,094 - 119,094 125,571Less: Project re-charges (134,537) - (134,537) (124,019)Governance costs 8 9,127 - 9,127 9,621 Total expenditure 262,966 546,156 809,122 2,327,000 NET INCOME/(EXPENDITURE) FOR THE YEAR before transfers (5,807) (32,740) (38,547) (61,608) Gross transfers between funds (8,188) 8,188 - - Net income/(expenditure) for the year (13,995) (24,552) (38,547) (61,608) RECONCILIATION OF FUNDS Total funds brought forward 326,019 39,626 365,645 427,253 TOTAL FUNDS CARRIED FORWARD 312,024 15,074 327,098 365,645

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2016 2015 Notes £ £FIXED ASSETS Tangible assets 11 44,133 40,431Investments 12 1 1

44,134 40,432 CURRENT ASSETS Debtors: amounts falling due within one year 13 43,677 132,829Cash at bank and in hand 394,248 341,485Investments - 301,309

437,925 775,623 CREDITORS Amounts falling due within one year 14 (154,961) (450,410) NET CURRENT ASSETS 282,964 325,213 TOTAL ASSETS LESS CURRENT LIABILITIES 327,098 365,645

NET ASSETS 327,098 365,645

FUNDS 17 Unrestricted funds General Fund 299,491 310,729Designated Funds 12,533 15,290 312,024 326,019 Restricted Funds 15,074 39,626 TOTAL FUNDS 327,098 365,645

Balance SheetAt 31 March 2016

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard for Smaller Entities (effective Jan 2015).

The financial statements were approved by the Board of Trustees on ................................... and were signed on its behalf by:

..................................................................... M Cannon -Trustee

..................................................................... K. McPherson – Trustee

Company Registration Number: 03203003

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Statement of CashflowFor the year Ended 31 March 2016

2016 2015 Note £ £ Cash used in operating activities 20 (29,948) 1,254

Cash flows from investing activities

Interest income - - Purchase of tangible fixed assets (18,599) (2,326) Cash provided by (used in) investing activities (18,599) (2,326) Cash flows from financing activities Borrowing 200,000Repayment of borrowing (200,000) - Cash used in financing activities (200,000) 200,000 Increase (decrease) in cash and cash equivalents in the year (248,547) 198,928 Cash and cash equivalents at the beginning of the year 642,794 443,866 Total cash and cash equivalents at the end of the year 394,247 642,794

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Notes to the Financial StatementsFor The Year Ended 31 March 2016

1. Accounting PoliciesAccounting convention

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015), the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.

Income

Voluntary income received by way of donations and gifts to the charity is included in the Statements of Financial Activities when received. Intangible income is not included unless it represents goods or services which would otherwise have been purchased. Gifts in kind are valued and brought in as income as is the appropriate expenditure.

Grants receivable which relate to a specific time period are recognised evenly over the relevant years. Other grants receivable are recognised when the charity becomes entitled to the relevant amounts.

ExpenditureExpenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Liabilities

Liabilities are recognised when Surrey Community Action has an obligation to make a payment to a third party.

Grants payable are recognised when the commitment to pay has been ratified by the appropriate decision making committee.  Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable activities

These costs which are in line with the objects of the charity, are grouped as follows:

• Communities

costs associated with benefitting the inhabitants of various communities primarily in Surrey.

• Grant Making

costs to provide funding for voluntary and community groups

• Advice & Support

costs included are advising communities to organise activities and projects, and providing accounting support services to other organisations.

• Other

these are costs which do not fit into any of the activities above.

Governance costs

Costs include costs associated with Trustees meetings, audit fees, professional and legal fees.

Allocation and apportionment of costs

Support costs are allocated between management, IT, premises and other office running costs according to an estimated usage for each project.

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1. Accounting Policies - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

• Fixtures and fittings

Straight line over 5 years

• Motor vehicles

Straight line over 5 years

• Computer equipment

Straight line over 3 years

Capital expenditure is defined as the purchase of an asset which has a life of more than 12 months and a value over £250.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals payable under operating leases where substantially all the risks and rewards of ownership remain with the lessor, are charged to the Statement of Financial Activities in the period in which they fall due.

Pension costs

The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable.

VAT

The charity is partially exempt for VAT, and any irrecoverable VAT is included with the individual transactions in income and costs.

Current asset investments

Investments in fixed term deposits, which cannot be readily accessed without penalty, are classified as current asset investments

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2. Voluntary Income 2016 2015 £ £

Gifts in kind 35,362 35,362Donations 159 201Grants 84,000 98,195

119,521 133,758

Surrey Community Action leases premises (Astolat) from Surrey County Council at a peppercorn rent, which it occupies and manages as a resource centre, currently for the benefit of 7 other charities and voluntary organisations. For formal reporting purposes the notional rent in relation to space occupied by Surrey Community Action only is shown above as a Gift in kind of £35,362 as part of voluntary income and is included in note 8 as notional expenditure under premises costs.

Grants received, included in the above, are as follows: 2016 2015 £ £

Surrey County Council - Core grant 84,000 84,000

84,000 84,000

3. Investment Income 2016 2015 £ £

Deposit account interest 724 1,607

4. Incoming Resources from Charitable Activities Grants Income Total from services 2016 2015 £ £ £ £

Advice and support 134,459 24,131 158,590 180,149Grant making 276,608 - 276,608 1,777,889Communities 102,349 - 102,349 68,006Other - 112,783 112,783 103,983

513,416 136,914 650,330 2,130,027

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5. Direct Costs of Charitable Activities 2016 2015 £ £

Staff costs 325,363 398,571Office costs 52,088 50,288Travel and meetings 16,791 14,677

394,242 463,536

Staff costs include the following:

2016 2015 £ £

Wages and salaries 274,678 340,509Social security costs 26,041 30,706Other pension costs 14,616 12,164Recruitment and temporary staff costs 10,028 15,192

325,363 398,571

The average number of employees (part-time and full time) during the year was as follows:

2016 2015

Projects 5 7Support 1 1Administration 4 6

10 14

No employee was paid more than £60,000 in the year (2015: nil). Pension costs are allocated in proportion to the related staffing costs in both unrestricted and restricted funds.

The key management personnel comprise the Trustees (who received no remuneration for the period), Chief Executive, Head of Finance & Resources and Community Development Manager (to July 2015). The total employee benefits of the 3 key management personnel were £122,182 (2015: £163,974 – 4 key management personnel). No Trustee received remuneration in the period.

The total amount of redundancy for the period was £2,850 due on the completion/termination of an activity/project during the period. The amount was allocated from unrestricted funds (2015: £4,948)

Defined pension contribution costs for the period were £14,616 (£2015: 12,164) and were allocated directly to the appropriateactivity/fund in both restricted and unrestricted funds.

In addition, an average of 1.5 volunteers were engaged by Surrey Community Action throughout the year. Based on the minimum wage including employers costs, this equates to £20,120 in total.

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6. Grants Payable 2016 2015 £ £

Grant making 263,288 1,690,931

The total grants paid to institutions during the year was as follows:

2016 2015 £ £

Training/upskilling – Surrey 35,104 184,713Training/upskilling – Kent 68,020 330,486Training/upskilling – Sussex 32,722 297,095Training/upskilling – Hampshire 70,358 409,458Training/upskilling – Thames Valley 57,084 469,179

263,288 1,690,931

7. Support Costs and Project Recharges

£ £ £ £ £ £ £

Staff costs 12,926 58,235 56,161 - 198,041 - 325,363Travel & Meetings 317 7,911 3,406 - 5,157 - 16,791Office Costs 1,491 11,411 7,930 2,925 28,332 - 52,089IT Costs - - - - 14,004 - 14,004Communications Costs - 870 372 - 3,047 - 4,289Finance Costs - - - - 878 - 878Premises Costs - - - 94,078 14,319 - 108,397Depreciation - - - 9,390 5,506 - 14,896Grant payments 263,288 - - - - - 263,288Governance costs - - - - - 9,127 9,127Recharges of core costs 17,705 27,571 76,561 12,700 (134,537) - -

295,727 105,998 144,430 119,093 134,747 9,127 809,122

TotalTotal Grant

Making

Restricted

Total

Communities

Restricted

Total Advice

& Support

Restricted

Astolat

(Advice &

Support

Unrestricted)

Total Advice

& Support

Unrestricted

Governance

2016 2015 £ £Auditors’ remuneration 7,380 7,200Legal and professional fees 1,747 2,421 9,127 9,621

Analysis of Auditors’ remuneration - Statutory audit 7,200 VAT advice 180 - 7,380 7,200

8. Governance Costs

Page 20

9. Net income/expenditure 2016 2015 £ £

Auditors’ remuneration 7,200 7,200Depreciation - owned assets 14,896 16,138 22,096 23,338

Net resources are stated after charging/(crediting):

10. Trustees Renumeration and BenefitsNo Trustee received remuneration in the period.

Trustees’ Expenses

1 Trustee claimed travel and subsistence expenses totalling £140 (2015 - £873)

11. Fixed Assets Fixtures and fittings Computer equipment Totals £ £ £COST At 1 April 2015 194,578 52,061 246,639Additions 18,433 165 18,598Disposals - - -

At 31 MARCH 2016 213,011 52,226 265,237 DEPRECIATION At 1 April 2015 173,606 32,602 206,208Charge for year 9,815 5,081 14,896Disposals - - -

At 31 MARCH 2016 183,421 37,683 221,104 NET BOOK VALUE At 31 MARCH 2016 29,590 14,543 44,133 At 31 March 2015 20,972 19,459 40,431

Page 21

12. Fixed Asset InvestmentsSCA Trading Ltd, a 100% subsidiary of Surrey Community Action, was incorporated in England and Wales on 30th August 2011, and has been dormant in the period ending 31st March 2016 and in the prior year to 31st March 2015. SCA Trading Ltd has aggregate capital and reserves of £1.

The company has taken exemption from preparing group accounts under the provisions of the Companies Act 2006 as it is subject to the small companies regime.

13. Debtors: Amounts Falling Due Within One Year 2016 2015 £ £

Trade debtors 31,371 52,177Prepayments and accrued income 12,306 80,652

43,677 132,829

14. Creditors: Amounts Falling Due Within One Year 2016 2015 £ £

Trade creditors 32,552 114,526Social security and other taxes 6,184 8,071VAT 1,154 2,238Other creditors 107,871 266,575Accruals and deferred income 7,200 59,000

154,961 450,410

Included in other creditors is an amount of £92,375 held by Surrey Community Action on behalf of Surrey County Council for its Community Buildings Capital Scheme. Surrey Community Action trustees consider themselves as acting as agents on behalf of Surrey County Council for this scheme where they are legally bound to pay the funds over to a third party and have no responsibility for their ultimate application. The movement on the funds during the year has been as follows; Money received Money paid out Money held at the year-end & brought forward £ £ £

204,530 (112,155) 92,375

Page 22

15. Operating Lease CommitmentsThe total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

2016 2015 £ £

Not later than one year 17,671 17,671Later than one year and not later than five years 49,480 67,151

Total future minimum lease payments 67,151 84,822

16. Analysis Of Net Assets Between Funds 2016 2015 Unrestricted Restricted Total Total funds funds funds funds £ £ £ £

Fixed assets 44,133 - 44,133 40,431Investments 1 - 1 1Current assets 431,039 6,886 437,925 775,623Current liabilities (154,961) - (154,961) (450,410) 320,212 6,886 327,098 365,645

Page 23

17. Movement in Funds At 1.4.15 Net movement Transfers between At 31.3.16 in funds funds £ £ £ £

Unrestricted fundsGeneral fund 310,729 (3,050) (8,188) 299,491Designated FundsAstolat Capital 15,290 (2,757) - 12,533

Total Unrestricted Funds 326,019 (5,807) (8,188) 312,024

Restricted funds

Advice & Support

Village & Community Halls Advisory Service 6,344 (6,520) 176 -Rural Housing (3,793) (6,032) 9,825 -Rural Community Action Network 3,821 - (3,821) -Surrey Rural Partnership (7,811) - 7,811 -Surrey Compact 1 - (1) -Police & Crime Commissioner 2,581 (2,581) -

Total Advice & Support (1,438) (9,971) 11,409 -

Grant Making

Community Grants European Social Fund 2011-13 35,526 (14,185) (2,501) 18,840 Community Grants European Social Fund 2014-15 2,433 (4,934) 2,501 -

Total Grant Making 37,959 (19,119) - 18,840

Communities

Rural Transport Car Schemes 6,060 (6,938) 878 -Gypsy & Traveller Support Worker (3,405) (361) - (3,766)Surrey County Council Voluntary Engagement - 3,649 (3,649) -Reaching Communities 450 - (450) -

Total Communities 3,105 (3,650) (3,221) (3,766) Total restricted funds 39,626 (32,740) 8,188 15,074

TOTAL FUNDS 365,645 (38,547) - 327,098

Notes to transfers A net total deficit of £8,188 was transferred to General Fund broken down as follows;

1. Village & Community Halls Advisory Service deficit of £176 2. Rural Housing deficit of £9,825 3. Rural Community Action Network unused surplus of £3,821 4. Surrey Rural Partnership deficit of £7,8115. Surrey Compact unused surplus of £1 6. Police & Crime Commissioner unused surplus of £2,581

7. Rural Transport Car Schemes deficit of £878 8. Surrey County Council Voluntary Engagement unused surplus of £3,649 9. Reaching Communities unused surplus of £450 10. Community Grants European Social Fund 2015-16 deficit of £2,501

transferred to ESF 11-13

Page 24

17. Movement in Funds - continuedNet movement in funds, included in the above are as follows:

Incoming resources Resources expended Movement in funds £ £ £

Unrestricted funds

General Fund 257,159 (260,209) (3,050)Designated FundsAstolat Capital - (2,757) (2,757) Total Unrestricted Funds 257,159 262,966 (5,807)

Restricted funds

Advice & Support

Village & Community Halls Advisory Service 34,095 (40,615) (6,520)Rural Housing 31,940 (37,972 (6,032)Rural Community Action Network 52,924 (52,924) -Police & Crime Commissioner 15,500 (12,919) 2,581

Total Advice & Support 134,459 (144,430) (9,971)

Grant Making

Community Grants European Social Fund 2011-13 - (14,185) (14,185) Community Grants European Social Fund 2014-15 276,608 (281,542) (4,934)

Total Grant Making 276,608 (295,727) (19,119)

Communities

Rural Transport Car Schemes 26,360 (33,298) (6,938)Gypsy & Traveller Support Worker 41,189 (41,550) (361)Surrey County Council Voluntary Engagement 34,800 (31,151) 3,649Reaching Communities - - -

Total Communities 102,349 (105,999) (3,650)

Total Restricted Funds 513,416 (546,156) (32,740)

TOTAL FUNDS 770,575 809,122 (38,547)

Page 25

18. Movement in Funds - continuedDesignated Funds Purpose

Astolat Capital The net book value of capital improvements to the Astolat building which were financed by restricted donations. The full funding has been spent and the restriction therefore fulfilled. However the trustees have chosen to show the balance of the costs not yet depreciated, as a designated fund.

Restricted Funds Purpose

Advice & Support

Village & Community Halls Advisory Service Support to people running community buildings.

Rural Housing Development of rural affordable housing.

Rural Community Action Network Strategic and development support to benefit rural communities.

Surrey Rural Partnership The voice for countryside, rural economy and communities.

Police & Crime Commissioner Supporting Community Buildings with training to run

safe & legally compliant buildings

Grant Making

Community Grants European Social Fund 2011- 13 Distribution and monitoring of ESF funds.

Community Grants European Social Fund 2014- 15 Distribution and monitoring of ESF funds.

Communities

Rural Transport Car Schemes Support and development of voluntary car schemes.

Gipsy & Traveller Support Worker Advice and support to individuals regarding housing, employment and benefits.

Surrey County Council Voluntary Engagement To increase through marketing and engaging with local Surrey communities the recruitment and retention of new volunteers to existing and new voluntary car schemes

19. Members At the 31st March 2016, the number of members was 5 (2015:328). Membership was revised and agreed in July 2015 by the Trustees. The 5 remaining members are Surrey Community Action’s Trustees as required by the Memorandum and Articles of Association.

Page 26

20. Reconciliation Of Net Movement In Funds To Net Cash Flow From Operating Activites 2016 2015 £ £

Net movement in funds (38,547) (61,608)Add back depreciation charge 14,896 16,138Decrease (increase) in stock - -Decrease (increase) in debtors 89,152 (45,867)Increase (decrease) in creditors (95,449) 92,591

Net cash used in operating activities (29,948) 1,254

Page 27

We have audited the financial statements of Surrey Community Action for the year ended 31 MARCH 2016 on pages twelve to twenty six. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

Respective responsibilities of trustees and auditors

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and

adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition we read all the financial and non-financial information in the Report of the Trustees to identify material inconsistencies with the audited financial statements. If we become aware of any apparent misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 MARCH 2016 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 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 trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Report of the Trustees.

Report of the Independent Auditors to the Members of Surrey Community Action

Peter Earle FCA (Senior Statutory Auditor)for and on behalf of Menzies LLPChartered Accountants and Registered AuditorsAshcombe House5 The CrescentLeatherheadSurreyKT22 8DY

Date: .............................................

Page 28

Reference and Administrative DetailsThe trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 MARCH 2016. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in July 2014.

Registered Company number 03203003 (England and Wales)

Registered Charity number 1056527

Registered office ‘Astolat’, Coniers Way, New Inn Lane, Burpham, Guildford, Surrey, GU4 7HL

Auditors Menzies LLP, Ashcombe House, 5 The Crescent, Leatherhead, Surrey, KT22 8DY

Solicitors Morrisons Solicitors, Clarendon House, Clarendon Road, Redhill, Surrey, RH1 1FB

Bankers HSBC, Ground Floor, One London Square, Cross Lanes, Guildford, Surrey GU1 1UN CAF Bank Ltd, 25 Kings Hill, West Malling, Kent ME19 4JQ

President Dame Sarah Goad, Lord Lieutenant of Surrey DCVO JP (retired 23 August 2015)Vice President Rt Revd Jonathan Clark, Bishop of Croydon

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report referred to as the trustees. The trustees serving during the year and since were as follows;

Michael Cannon Chairman Peter Gordon Resigned 30 March 2016Jo JoshSimon MatthewsKeith McPherson TreasurerRoger Taylor

Company SecretaryJames Prescott-Martin

Principal OfficersJason Gaskell Chief Executive

Page 29

Detailed Statement Of Financial Activities for the Year Ended 31 March 2016 2016 2015 £ £INCOME

Voluntary incomeGifts in kind 35,362 35,362Donations 159 201Grants 84,000 98,195 119,521 133,758Investment incomeDeposit account interest 724 1,607

Income from charitable activitiesGrants 513,416 1,993,330Income from services provided 136,914 136,697

650,330 2,130,027

Total income 770,575 2,265,392

EXPENDITURE

Charitable activitiesStaff costs 325,363 398,571Office costs 52,088 50,288Travel and meetings 16,790 14,677Grants to institutions 263,288 1,697,891 657,529 2,161,427 Governance costsAuditors’ remuneration 7,200 7,200Legal and professional fees 1,927 2,421

9,127 9,621Support costsManagementManagement costs 133,316 122,797 Information technologyIT costs 14,004 13,809 RentPremises costs 108,398 118,294Office running costsOffice costs 21,284 25,071Project re-chargesProject re-charges (134,536) (124,019)

Total expenditure 809,122 2,327,000

Net (expenditure)/income (38,547) (61,608) This page does not form part of the statutory financial statements