Abbreviated Company Accounts - HOLLY LODGE CENTRE

1Accounting Policies

Basis of measurement and preparation of accounts
1. The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards, the Companies Act 2006 and the recommendations in the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005).

2. All incoming resources are included in the Statement of Financial Activity when the charity is legally entitled to the income, there is certainty of receipt and the amount can be measured with sufficient reliability. Income is deferred as necessary when the donor specifies that the income must only be used in future accounting periods or when the donor has imposed conditions which must be met before the charity has unconditional entitlement.

3. Resources expended are accounted for on the accruals basis and are allocated to the particular activity to which they directly relate. Expenditure which does not directly relate to a specific activity is allocated to activities on a basis consistent with the use of resources.

4. Tangible fixed assets are capitalised where the purchase price is £2,500 or more. Such assets are depreciated on a straight line basis to write off the cost of each asset over its estimated useful life. The rates currently in use are:
• Motor vehicle 5 years
• Garden Furniture 5 years
• Office equipment 3 years
• Other 3 years

5. The 2014-15 Gift Aid claim was submitted, accepted and paid by HMRC in August 2015. In future, claims will be made on a more regular (quarterly) basis throughout the financial year.

6. The charity has restricted and unrestricted funds. Restricted funds can be used only for specific purposes within the objects of the charity, as defined by donors or when funds are raised for a specific purpose. Unrestricted funds can be used in accordance with charitable objectives at the discretion of the trustees. Part of the unrestricted funds has been designated by the Trustees for the purposes of specifically identified projects.

7. A review of restricted funds brought forward has shown that there is no reason to consider them restricted and the year-end balance of those funds has therefore been transferred to general funds.

2Company limited by guarantee
Company is limited by guarantee and consequently does not have share capital.