CAREER DEVELOPMENT INSTITUTE LIMITED. Director s Report and Financial Statements For the year ended 31 st March 2016

Transcription

1 Director s Report and Financial Statements For the year ended 31 st March 2016 Registered Number Companies House

2

3 CAREER DEVELOPMENT INSTITUE LIMITED COMPANY INFORMATION DIRECTORS Karen T O Donoghue Resigned 9 th November 2015 Linda J Bell Resigned 9 th November 2015 Tracey Burley Tom Evans Gary D Forrest Resigned 1 st June 2016 Sarah Finnegan-Dehn Julie-Anne Jamieson Resigned 9 th November 2015 Re appointed 3 rd February 2016 Monica l Lemecha Claire Nix Virginia Isaac COMPANY SECRETARY Monica I Lemecha Appointed 28 th May 2015 COMPANY NUMBER REGISTERED OFFICE ACCOUNTANTS Copthall House 1 New Road. Stourbridge West Midlands DY8 1PH Heath & Co International Accountants Cedar House. 29. Moorfields. Chorley. PR6 0EE (Associate office 40 Pall Mall. St James. London SW1Y 5JQ)

4 CONTENTS Page Directors report 1 Profit and loss account 2 Balance Sheet 3 Notes to the financial statements 4-6 The following page does not form part of the statutory financial statements Detailed Profit and loss account 7

5 DIRECTORS REPORT FOR THE YEAR ENDED 31 ST MARCH 2016 The directors present their report and the financial statements for the year ended 31 st March 2016 PRINCIPAL ACTIVITIES The principal activity of the company throughout the period was a membership organisation for career professional. DIRECTORS The directors who served during the year were: Karen T 0 Donoghue (resigned 9 th November 2015) Linda Bell (resigned 9 th November 2015) Gary D Forrest Sarah E Finnegan Dehn Julie -Anne Jamieson Claire Nix Virginia Isaac Tracey Burley Directors responsibilities The directors are responsible for preparing the report and having accounts prepared in accordance with applicable accounting standards and regulations. Company law requires the directors to prepare accounts for each financial year in accordance with Generally Accepted Accounting Standards (United Kingdom Accounting Standards and applicable law). In approving the accounts the directors are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for the year. In preparing these accounts, the directors are required to: Select suitable accounting policies and then apply them consistently Make judgements and estimates that are reasonable and prudent Prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities Small company provisions The report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006 This report was approved by the board on and signed on its behalf by. Director Page 1

6 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH Note TURNOVER 1 579, ,706 Cost of sales (450,235) (497,767) GROSS PROFIT 129, ,939 Administrative expenses (207,967) (190,623) OPERATING (LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION (78,783) (32,684) Interest receivable OPERATING (LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION (78,731) (32,621) Tax on (loss) on ordinary activities (10) 00 (Loss) for the financial year (78,741) (32,621) The notes on pages 4-6 form part of these financial statements Page 2

7 Registered Number BALANCE SHEET AS AT 31 ST MARCH Note FIXED ASSETS Tangible assets 8,266 10,080 CURRENT ASSETS Debtors & Prepayments 58,522 83,680 Cash at bank and in hand 80, , , ,673 CREDITORS- amounts falling due within one year (128,969) (168,343) NET CURRENT ASSETS 10,403 87,330 TOTAL ASSETS LESS CURRENT LIABILITIES 18,669 97,410 Provisions for other Liabilities 0 0 NET ASSETS 18,669 97,410 CAPITAL AND RESERVES Profit and Loss account 18,669 97,410 The directors consider that the company is entitled to exemption from the requirements to have an audit under the provisions of section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The directors acknowledge their responsibilities for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 st March 2016 and of its profit or loss for the year then ended in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to the financial statements so far as applicable to the company. The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) The financial statements were approved and authorised for issue by the board and were signed on its behalf on. By. Director The notes on pages 4 to 6 form part of these financial statements Page 3

8 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST MARCH ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention with the Financial Reporting Standard for Smaller Entities (effective January 2015) The financial statements are prepared on the going concern basis of accounting as the directors expect this to be the case subject to the following reservations:- Forecasting future income, results or a cash flow forward 12 months from the date of the approval of the accounts does not produce a reliable vision due to the nature of income from members and customers. Members renew their subscriptions for a twelve month period from the calendar date they joined and accordingly there is a significant value in deferred income at any point of time. The UK Careers Sector is currently experiencing a continuation of uncertain funding levels as a result of funding reductions imposed by the current Government. The sector is also awaiting the delivery of a revised strategy for Careers. This has been delayed as a result of Ministerial changes in Central Government. The company however continues to undertake regular monitoring of the overall financial position, especially with regards to solvency. 1.2 Cash flow The financial statements do not include a Cash flow statements because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Financial Reporting Standard for Smaller Entities (effective April 2008) 1.3 Turnover Turnover comprises revenue recognised by the company in respect of subscriptions, goods and services supplied exclusive of Value Added Tax and trade discounts. 1.4 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases. Office Equipment 18% on reducing balance 2 OPERATING LOSS This is stated after charging depreciation of tangible fixed assets 1,814 1,244 Page 4

9 3 TANGIBLE FIXED ASSETS Office Equipment Cost As at 1 April ,451 Depreciation Brought forward 1 April ,371 Charge for the year 1,814 3,185 Net Book Value As at 31 March ,266 As at 31 March , DEBTORS Trade Debtors 49,063 33,040 Prepayments 9,459 50,640 58,522 83,680 5 CREDITORS Amounts falling due within one year Trade creditors and accruals ,833 Accruals and deferred income 107, , , ,343 6 RESERVES Profit and Loss account At 1 April ,410 (Loss) for the year (78,741) At 31 March ,669 7 COMPANY LIMITED BY GUARANTEE The Career Development Institute is a company limited by guarantee. In the event of a winding up each member in the past year is liable to contribute to the assets of the company such amounts as may be required not exceeding 1. If any property remains upon the winding up or dissolution of the company, it shall be given or transferred to some other membership institute having similar objectives to the company. Page 5

10 8 RELATED PARTY TRANSACTIONS Mrs K O Donoghue, former Chief Executive of VIA Partnership Ltd also holds office as a Director and held the position of President until November Mrs V Isaac, Chief Executive of Inspiring Futures Ltd also holds office as a Director of the CDI Limited and took over as President in November Via Partnership and Inspiring Futures invoiced the CDI for the support services provided by each of the Chief Executives. 9 PENSIONS The company participates in the London Pensions Fund Authority Pension Scheme (LPFA) a multi employer defined benefit pension scheme, the assets of which are held in a separate fund administered by the London Pension Fund Authority. The scheme is closed to new entrants from the company. The scheme is governed by the Local Government Pension Scheme Regulations 2013 as amended and is required to have actuarial valuations performed every three years. Subsequent to the report included in the financial statements to 31 March 2015 which indicated an increasing cessation deficit of 407,000 as at 31 st July 2015 the LPFA have been in communication with the company as a result of an updated valuation provided by Barnett Waddingham. Based on the 31 March 2013 valuation assumptions the latest actuarial report shows a surplus of 252,000 on an ongoing basis, but a deficit ow reduced to ( 77,000) on a cessation basis. The LPFA has recommended that legal documentation is revised to reflect the management of these liabilities, on an ongoing rather than a cessation basis. The actuarial certificate within the plan will confirm no further ongoing contributions are payable prior to 1 April All LGPS pension funds are required to undertake triennial valuations and the LPFA will put to their board and request an agreement to the 31 March 2016 valuation. The new contribution rates payable from 1 April 2017 will only be known by 31 December Thereafter an evaluation can be made as to whether the CDI remains fully funded on an ongoing basis. As previously reported 31,000 has been charged in the accounts of the CDI in the financial years up to 31 st March These funds have in turn been held in an Escrow Account. The LPFA is to move 6,000 from the Escrow to complete the agreed payment schedule and the remaining 25,000 will be held as security against any further liabilities remaining. A review of the cessation deficit valuations are as follows:- 31 March , , , July ,000 5 Sept ,000 The company has been advised that although the ongoing liability arrangement is the favoured option there is still a risk of further liabilities, if for example mortality assumptions rise or investment returns are not achieved. Page 6

11 SCHEDULE TO THE DETAILED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST MARCH TURNOVER Subscriptions and Commercial income 579, ,706 COST OF SALES Career Matters publication costs 36,316 34,688 Project, associate fees and sub contractors Events/Commercial activity/annual Conference 221, ,860 Salary and Pension contributions 192, , ,767 ADMINISTRATIVE EXPENSES Travel and subsistence 58,883 27,951 Office occupancy and insurance 29,071 25,987 IT support services 17,528 13,814 General administration including corporate governance 45,231 39,735 Accountancy and Legal fees 37,136 44,035 Irrecoverable value added tax 10,978 20,966 Depreciation 1,814 1,244 Provision of aged bad debts 7,326 16, , ,623 Page 7

12

13