›› Report of the Directors and the Audited Accounts for the year ended 6 December 2005

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Registration number IP29167R

AFC Bournemouth Community Mutual Limited

Committee of Management's report and financial statements

for the year ended 6th December 2005

Committee of Management D Borthwick Chairman
D J Stone
P Williams
J Souter (app 09/06/05)
N Hayward (app 26/08/05)
D Harris (app 02/12/05)
S Harris (app 02/12/05)
W Ford (app 02/12/05)

Treasurer S Read (app 09/06/05)

Secretary D Musker (app 02/12/05)

Company number IP29167R

Registered office 1123 Christchurch Road
Boscombe East
Bournemouth
Dorset
BH7 6BQ

Business address AFCBCM
PO Box 5152
Bournemouth
BH4 9WZ

Auditors Alan W. Simons & Co
Hillview Business Centre
2 Leybourne Avenue
Bournemouth
Dorset
BH10 6HF

Contents

 

Page

Committee of management’s report 1 - 2

Auditors' report 3 - 4

Income and Expenditure Account 5

Balance sheet 6

Notes to the financial statements 7 - 10

The committee of management presents its report and the financial statements for the year ended 6th December 2005.

Principal activity and review of the business
The principal objects of the society are to strengthen the bonds between Bournemouth & Boscombe Athletic Community Football Club Limited and the community it serves and represent the interests of the community and supporters in the running of the Football club. The society also wishes to benefit present and future members of the community served by the Football club by promoting and encouraging the game of Football as a recreational facility, sporting activity and focus for community involvement.

During the year AFC Bournemouth Community Youth Fund Limited transferred its two shares in Bournemouth and Boscombe Athletic Community Football Club Limited to the society. These shares have certain golden rights including 51% of the voting rights of Bournemouth and Boscombe Athletic Community Football Club Limited.

The Society was also engaged in fund raising activities for AFC Bournemouth during the year. As a result of the cherryshare standing order scheme and cherrychange the society was able to purchase a further £16,086 shares of £1 each in the football club bringing its total investment up to £109,188.

The shares in AFC Bournemouth and Playershare are valued at cost as the committee of management is unable to give an opinion of the market value of the shares. The committee of management is aware that if the shares were sold on the open market they may not realise the cost price but in view of the terms of the loan fund scheme whereby repayment of the loans can only be made in certain circumstances such as the sale of the shares in the football club no further provision is deemed necessary.

The committee of management set the annual subscription at zero for the year and its operating costs were met by donations from members.

Members of the Committee of Management and their interests
The Members of the Committee of Management who served during the year were as follows and each has a £1 share in the society:

D J Stone J Tabor – Resigned (09/06/05)
P Williams J Wright – Resigned (09/06/05)
D Borthwick J M Park – Resigned (21/10/05)
S Read – Appointed (09/06/05) L Jones – Resigned (11/11/05)
J Souter – Appointed (09/06/05) J Lewis – Resigned (12/11/05)
N Hayward – Appointed (26/08/05) R Trent – Resigned (12/11/05)
D Harris – Appointed (02/12/05) R Beales – Resigned (13/11/05)
S Harris – Appointed (02/12/05) S Gilbert – Resigned (14/11/05)
W Ford – Appointed (02/12/05) S Coles – Resigned (18/11/05)
D Musker – Appointed (02/12/05) A Greenall – Resigned (23/11/05)
D Humphries – Retired (09/06/05) K Price – Resigned (02/12/05)
S Nother – Retired (09/06/05)

Page 1

Committee of Management’s responsibilities
The committee are required to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Community Mutual and of the excess or deficit of the Community Mutual for that year. In preparing these the committee are required to:

- select suitable accounting policies and apply them consistently;
- 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 Community Mutual will continue in business.

The committee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Community Mutual and to enable them to ensure that the financial statements comply with the Industrial and Provident Societies Act 1965 and the Friendly and Industrial and Provident Societies Act 1968. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors
In accordance with Section 4 of the Friendly and Industrial Provident Societies Act 1968, a resolution proposing that Alan W Simons & Co be reappointed as auditors of the society will be put to the Annual General Meeting.

This report was approved by the Committee and signed on its behalf by

D Musker Esq
Secretary

Date :

Page 2

Independent auditors' report to the members of AFC Bournemouth Community Mutual Limited

We have audited the financial statements of AFC Bournemouth Community Mutual Limited for the year ended 6th December 2005 which comprise the income and expenditure account, the balance sheet and the related notes. These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.

This report is made solely to the members, as a body, in accordance with Section 9 of the Friendly and Industrial and Provident Socities Act 1968. Our audit work has been undertaken so that we might state to the members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Community Mutual and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Committee of Management and auditors
The committee of management responsibilities for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards are set out in the statement of the committee of management’s responsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Friendly and Industrial and Provident Societies Act 1968. We also report to you if, in our opinion, the Committee of Management’s report is not consistent with the financial statements, if the Community Mutual has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding the committee’s remuneration and transactions with the company is not disclosed.

We read the Committee of Management’s report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Page 3
Independent auditors' report to the members of AFC Bournemouth Community Mutual Limited continued/….

Opinion
In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 6th December 2005 and of its excess of income over expenditure for the year then ended and have been properly prepared in accordance with the Industrial and Provident Societies Act 1965 and the Friendly and Industrial and Provident Societies Act 1968 .

Alan W Simons Limited
Chartered Accountants
Hillview Business Centre
2 Leybourne Avenue
Bournemouth
Dorset
BH10 6HF

Page 4

Income and Expenditure Account
for the year ended 6th December 2005

2005 2004
£ £ £ £
Income
Members Contributions 67 -
Brick sales - 269
General donations 808 948
Playershare donations 1,250 18,335
Cherryshare donations 9,691 700
Commission Received 1,839 293
Cherrychange donations 9,998 5,631
Cherrysteps 1,099 -
_______ _______
24,752 26,176
Expenses
Cost of bricks 47 210
Frames & engraving costs - 556
Printing Costs 350 75
Audit 1,175 588
Bank charges 63 62
Donation to AFC Bournemouth 250 -
Donation to Playershare 1,100 -
Subscriptions 200 150
Depreciation on FF & Equipment - 125
_______ _______
3,185 1,766
_______ _______
Operating excess 21,567 24,410

Other income and expenses

Interest receivable
Bank deposit interest 14 12 _______ _______
Net excess of income over expenditure
for the year before taxation 21,581 24,422

Tax on ordinary activities - -
_______ _______
Net excess of income over expenditure
for the year after taxation 21,581 24,422
_______ _______

There are no recognised gains or losses other than the excess of income over expenditure for the year. There are no acquisitions or discontinued operations during the current or preceding year.

Page 5

The notes on pages 7 to 10 form an integral part of these financial statements

Balance sheet
as at 6th December 2005

2005 2004
Notes £ £ £ £

Fixed assets
Investments 5 136,608 120,520

Current assets
Debtors 6 1,280 557
Cash at bank and in hand 8,215 14,214
_______ _______
9,495 14,771
Creditors: amounts falling
due within one year 7 (1,177) (11,939)
_______ _______
Net current assets 8,318 2,832
_______ _______
Total assets less current
liabilities 144,926 123,352
Creditors: amounts falling due
after more than one year 8 (71,750) (71,750)
_______ _______
Net assets 73,176 51,602
_______ _______
Capital and reserves
Issued share capital 9 2,557 2,564
Income and expenditure Account 11 70,619 49,038
_______ _______
Members funds 10 73,176 51,602
_______ _______

The financial statements were approved by the Board and signed on its behalf by

 

D Borthwick Esq D Musker Esq
Director Secretary

D Stone Esq Date :
Director

Page 6

1. Accounting policies

1.1. Accounting convention
The financial statements are prepared under the historical cost convention .

1.2. Turnover
Turnover represents sales of bricks, cherry steps and commissions received during the year together with donations collected during the year.

1.3. Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Fixtures, fittings
and equipment - 25% straight line

1.4. Investments
Fixed asset investments are stated at cost.

1.5. Group accounts
The society has been granted exemption under Section 14(2) of the Friendly and Industrial and Provident Societies Act 1968 from the obligation to prepare group accounts.

2. Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.

3. Net surplus of income 2005 2004
£ £
Operating excess is stated after charging:
Depreciation and other amounts written off tangible assets - 125
Auditors' remuneration 1,175 588
_______ _______

Page 7

 

Fixtures,
4. Tangible fixed assets fittings and
equipment Total
£ £
Cost
At 7th December 2004 500 500
_______ _______
At 6th December 2005 500 500
_______ _______
Depreciation
At 7th December 2004 500 500
_______ _______
At 6th December 2005 500 500
_______ _______

Group Other
5. Fixed asset investments undertakings unlisted
shares investments Total
£ £ £
Cost
At 7th December 2004 93,100 27,420 120,520
Additions 16,088 - 16,088
_______ _______ _______
At 6th December 2005 109,188 27,420 136,608
_______ _______ _______
Net book values
At 6th December 2005 109,188 27,420 136,608
_______ _______ _______
At 6th December 2004 93,100 27,420 120,520
_______ _______ _______

5.1. Other unlisted investments 2005 2004
£ £

At cost 27,420 27,420
_______ _______

The investment represents 274 ordinary shares of £100 each in Playershare Ltd .
The Committee of Management have valued these shares at cost as it is unable to give an opinion on the market value of the shares at the balance sheet date.

Page 8
5.2. Shares in group undertakings
At 6th December 2005 the society held 109,188 ordinary shares of £1 each, which included two golden shares which held 51% of the voting rights of Bournemouth and Boscombe Athletic Community Football Club Limited.

The committee of management have valued the shares at cost as it is unable to give an opinion of the market value of the shares at the balance sheet date due to the uncertain financial circumstances of Bournemouth and Boscombe Athletic Community Football Club Limited.

6. Debtors: amounts falling due 2005 2004
within one year £ £

Trade debtors 217 293
Other debtors 1,063 264
_______ _______
1,280 557
_______ _______

 

7. Creditors: amounts falling due 2005 2004
within one year £ £

Members Loans - 10,700
Other creditors 2 500
Accruals and deferred income 1,175 739
_______ _______
1,177 11,939
_______ _______

 

 

8. Creditors: amounts falling due 2005 2004
after more than one year £ £

AFC Bournemouth Community Mutual Loan Capital Fund 71,750 71,750
_______ _______

The loan fund represents loans made by members of the Community Mutual. The loans do not have a scheduled repayment date and can only be repaid in limited circumstances such as the sale of the shares held in Bournemouth & Boscombe Athletic Community Football Club Limited.

 

Page 9
9. Share capital 2005 2004
£ £
Issued
2,557 Ordinary shares of £1 each 2,557 2,564
_______ _______

10. Reconciliation of movements in members funds 2005 2004
£ £

Excess for the year 21,581 24,422
Net shares issued/(cancelled) (7) 299
_______ _______
Net addition to shareholders' funds 21,574 24,721
Opening members funds 51,602 26,881
_______ _______
Closing members funds 73,176 51,602
_______ _______

11. Income and expenditure account 2005 2004
£ £

At 7th December 2004 49,038 24,616
Net surplus for the year 21,581 24,422
_______ _______
At 6th December 2005 70,619 49,038
_______ _______

12. Taxation on ordinary activities

There was no charge for the current or prior year due to the society’s income being mainly derived
from donations.

Contingent Liabilities

There were no contingent liabilities at the balance sheet date.

 

AFC Bournemouth Community Mutual In 2 Win