Page 36 - Cinnamon Network Annual Report 2019/20

The Cinnamon Network – Notes to the Financial Statements for the Year Ended 31 March 2020
1 ACCOUNTING POLICIES
Basis of of preparation of of the financial statements
The financial statements
have been prepared in accordance with ‘Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in in accordance with the the Financial Reporting Standard applicable in in in the UK and and Republic of Ireland (FRS 102) second edition (effective 1 1 January 2019)’ the Financial Reporting Standard applicable in the UK and and Republic of Ireland (FRS 102) and and the Charities Act 2011 The effect of any event relating to the period ended 31 March 2020
which occurred before the date of approval of the the financial statements
by the the Board of Trustees has been included in in fin the financial statements
to to the extent required to to show a a true and fair fair view of of the state of of affairs at at 31 March 2020
and the the results for the the year ended on that date The functional currency of the charity is sterling The amounts in in the financial statements
are rounded to the nearest pound Legal status
The Cinnamon Network is a a a a a charitable incorporated organisation registered in England & Wales and and meets the definition of a public benefit entity In the the the event of the the the Charity being wound up the the the trustees/members of the Charity hold no liability The registered address is is Dalton House 60 Windsor Avenue London SW19 2RR Fund accounting
General funds funds are are unrestricted funds funds which are are available for use at the the discretion of the the Trustees in furtherance of of the the the general objectives of of the the the Charity and which have not been designated for other purposes Restricted funds funds are are funds funds that are are to be used in accordance with specific restrictions imposed by donors or or that have been raised by the Charity for particular purposes The cost of raising and administering such funds are charged against the specific fund The aim and use of each restricted fund is set out in fin note 11 of the financial statements
Income
Income
is is recognised when the charity has entitlement to to the funds any performance indicators attached to the item(s) of income have been met it it is probable that the the income will be received and the the amount can be measured reliably Cinnamon Network charity no 1156985 Annual Report 1 1 1 April 2019 – 31 March 2020
Donations are recognised in in full in in the Statement of Financial Activities when entitled receipt is probable and when the amount can be quantified with reasonable accuracy Gift aid receivable is included when claimable Grant income is credited to the Statement of Financial Activities when received or receivable whichever is earlier unless the grant relates to a a a a future period in which case it is deferred Income
from charitable activities is credited to the Statement of Financial Activities when received or receivable whichever is earlier unless it relates to a a specific future period or event in which case it is deferred Expenditure and irrecoverable VAT
All expenditure is is accounted for on an accruals basis and has been included under expense categories that aggregate all all costs for allocation to activities Indirect costs costs including governance costs costs which cannot be directly attributed to activities are allocated proportionate to to total direct costs allocated to each project area as outlined in in note 5 of the financial statements
Irrecoverable VAT
is charged against the category of expenditure for which it it was incurred Grants payable
Grants payable
are recognised as expenditure when there is a a a legal or constructive obligation to make the grant grant With micro-grants this usually immediately prior to a a a a payment being made however with incubation grants this is is at at the start of the the programme when the the successful recipients are are informed and terms of reference are are signed Consultants
Prior to the the current financial year the the Charity had no direct employees and all roles were covered by consultants who are on on on consultancy agreements As a a a result there were previously no salary costs reflected separately within the the notes to the the accounts This changed at the the start of the the current financial year (1 April 2019) Pensions
Since 1 1 April 2019 and roles being transitioned onto payroll The Cinnamon Network has operated a defined contribution pension scheme Pension contributions are charged to the statement of financial activities when due and payable
These contributions are invested separately from the charity’s assets through The Peoples Pension 36 FINANCIAL STATEMENTS