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WEST MIDLANDS IN EUROPE - westmidlandsineuropeorg

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WEST MIDLANDS IN EUROPE - westmidlandsineuropeorg

WEST MIDLANDS IN EUROPE

    FINANCIAL STATEMENTS

    (IN EUROS)

YEAR ENDED 31 MARCH 2007

    WEST MIDLANDS IN EUROPE

    CONTENTS

     Page

Constitution and Statement of Responsibilities 1

Independent Auditors’ Report 2

Revenue Account 3

Balance Sheet 4

Notes to the financial statements 5

    WEST MIDLANDS IN EUROPE

    CONSTITUTION

    AND

    STATEMENT OF MANAGEMENT BOARD RESPONSIBILITIES

Constitution

West Midlands in Europe is an unincorporated body formed to represent the interests of the West Midlands

    Region in Europe and particularly within the European Union.

It is a Special Interest Group within the West Midlands Local Government Association and operates in

    accordance with its own legally-binding constitution through a Management Board elected by the members

    of the Association.

Statement of Management Board responsibilities

The Constitution requires the Management Board to prepare financial statements for each financial year

    which give a true and fair view of the state of affairs of West Midlands in Europe and of the income and

    expenditure for that period. In preparing those financial statements, the Board is required to:

- select suitable accounting policies and then 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 Association will continue.

The Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy at

    any time the financial position of West Midlands in Europe and to enable it to ensure that the financial

    statements comply with accounting standards. It is also responsible for safeguarding its assets and hence

    for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board is responsible for the maintenance and integrity of the corporate and financial information

    included on the Association’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

    Page 1

    INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

    WEST MIDLANDS IN EUROPE

    We have audited the financial statements on pages 3 to 8 which have been prepared under the historical cost convention and the accounting policies set out on page 5.

    This report is made solely to the members of West Midlands in Europe. 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 auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Management Board and the auditors

    As described on page 1 the Management Board is responsible for the preparation of financial statements. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you.

Basis of opinion

    We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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 Board in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Association’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.

    We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standards in the following circumstances.

    In common with other entities of this size and nature, the Association uses our firm to assist with the preparation of the financial statements.

Opinion

    In our opinion, the financial statements give a true and fair view of the state of affairs of West Midlands in Europe as at 31 March 2007 and of its income and expenditure for the year then ended.

39/40 Calthorpe Road CLEMENT KEYS

    Edgbaston Chartered Accountants

    Birmingham Registered Auditors

    B15 1TS

     Date June 2007

    Page 2

    WEST MIDLANDS IN EUROPE

    REVENUE ACCOUNT

    For the year ended 31 March 2007

     2007 2006

    INCOME ? ? ? ?

Subscriptions 1,174,918 1,161,990

    Rent receivable 253,043 368,943

    Bank Interest 11,372 5,595

    Facilities hire 19,717 6,045

    Management fees 16,704 45,735

    Sponsorship 9,125 -

    Surplus on events held 5,203 8,660

    Other - 3,117

    Profit on disposal of fixed assets 585 -

     1,490,667 1,600,085

    EXPENDITURE

Staff Costs 675,179 694,848

    Occupancy Costs 526,599 624,954

    Travel and Subsistence 64,327 58,636

    Information and Subscriptions 13,109 6,627

    Telephone/Fax/Internet 15,344 11,130

    Stationery and printing 15,781 13,076

    Equipment and Maintenance 10,134 17,807

    Training 4,526 2,141

    Promotional and Marketing Expenses 11,800 19,449

    Miscellaneous (Post & Bank Fees &

    Finance Charges) 8,467 6,495

    Depreciation 58,416 54,476

    Service Level Agreement - 47,698

    Exchange Differences (3,978) 5,234

    Professional and accountancy fees 6,917 17,741

    Relocation costs 35,763 -

    Bad debts 7,062 7,635

    Audit Fee 8,885 6,000

    Contribution to ERRIN project 6,484 -

    Irrecoverable VAT 17,545 -

    Reimbursed costs 3,373 -

     1,485,733 1,593,947

    Transferred to Reserves Note 5 4,934 6,138

    Page 3

    WEST MIDLANDS IN EUROPE

    BALANCE SHEET

    31 MARCH 2007

     2007 2006

     Note ? ? ? ?

    Tangible fixed assets 2 144,047 165,718

Current assets

    Income receivable 69,860 135,429

    Prepayments 94,231 119,118

    Other debtors

     ERRIN project 3 - 5,974

     Other debtors 44,468 13,631

    VAT recoverable 3,829 1,802

    Balance at bank 518,366 437,597

    Cash balance 14 64

     730,768 713,615

Creditors: amounts falling due within one year

    Creditors 430,670 259,519

    Accrued expenses 22,687 43,160

    Other creditors 31,128 81,375

    Net obligations under finance lease

    and hire purchase contracts 5,594 5,193

    WMLGA - 81,543

     490,079 470,790

    Current assets less current liabilities 240,689 242,825

    Total assets less current liabilities 384,736 408,543

Creditors: falling due after more

    than one year 4 46,406 75,147

     338,330 333,396

Financed by

    Accumulated reserves 5 338,330 333,396

Approved on : June 2007

……………………………

Isabella Moore

    Chairman, West Midlands in Europe

     ………………………………

Jerry Hutchinson

    Secretary, West Midlands in Europe

    Page 4

    WEST MIDLANDS IN EUROPE

    NOTES TO THE FINANCIAL STATEMENTS

    For the year ended 31 March 2007

1 Accounting policies

     The financial statements have been prepared under the historical cost convention under the

    accruals basis and in accordance with all applicable Financial Reporting Standards and Statements

    of Standard Accounting Practice.

     The main accounting policies are as follows:-

(a) Tangible fixed assets are stated at cost less capital contributions, less depreciation. Depreciation is

    provided at rates designed to write off the costs, net of capital contributions less the estimated

    residual values of the assets over their expected useful lives. The bases adopted are as follows:

     Expenditure on leasehold property - straight line over the term of the lease;

     Expenditure on office equipment - straight line over 5 years;

     Expenditure on furniture - straight line over 5 - 10 years;

     Expenditure on computer equipment/software - straight line over 3 years.

(b) Rentals charged on operating leases relating to property, office equipment and motor vehicles are

    charged to the Revenue Account over the period of the lease;

(c) Assets obtained under finance leases are capitalised as tangible fixed assets and depreciated over

    their useful lives.

     Finance leases are those where substantially all the benefits and risks of ownership are assumed by

    the Association. Obligations under such agreements are included in creditors net of the finance

    charge allocated to future periods. The finance element at the rental payment is charged to the

    revenue account so as to produce a constant periodic note of charge on the net obligations

    outstanding in each period.

(d) Transactions in Sterling are translated into Euros at the Exchange rate at the date of the invoice.

    Page 5

    WEST MIDLANDS IN EUROPE

    NOTES TO THE FINANCIAL STATEMENTS

    For the year ended 31 March 2007

2. Tangible fixed assets

     Improvements Furniture

     to s/t leasehold and Office Computers/

     property fixtures equipment software Total

     ? ? ? ? ?

     Cost

     31 March 2006 148,936 119,755 46,548 76,235 391,474

     Additions 8,390 16,826 1,051 12,821 39,088

     Sales - (6,547) - - (6,547)

     31 March 2007 157,326 130,034 47,599 76,235 424,015

     Depreciation

     31 March 2006 73,824 51,538 39,098 61,296 225,756

     Charge for year 27,220 15,339 3,188 12,669 58,416

     Sales - (4,204) - - (4,204)

     31 March 2007 101,044 62,673 42,286 73,965 279,968

     NET BOOK VALUE

     31 March 2007 56,282 67,361 5,313 15,091 144,047

     31 March 2006 75,112 68,217 7,450 14,939 165,718

     Improvements to short leasehold property include amounts held under finance leases as follows:

     2007 2006

     ? ?

     Cost 32,000 32,000

     Depreciation (21,333) (16,000)

     10,667 16,000

3. ERRIN project money received in advance

     01.04.06 Income Expenditure 31.03.07

     ? ? ? ?

     ERRIN (5,974) 6,484 (510) -

    Page 6

    WEST MIDLANDS IN EUROPE

    NOTES TO THE FINANCIAL STATEMENTS

    For the year ended 31 March 2007

4. Creditors : amounts falling due after more than one year

     more than one year

     2007 2006

     ? ?

     Net obligations under finance leases

     and hire purchase contracts 9,756 15,350

     Other creditors 36,650 59,797

     46,406 75,147

     Obligations under finance leases and hire purchase contracts, included above, are payable as

    follows:

     2007 2006

     ? ?

     Between one and two years 6,025 5,594

     Between two and five years 3,731 9,756

     Over five years - -

     9,756 15,350

    5. Members funds Accumulated Members’

     reserves funds

     ? ?

     As at 31 March 2006 333,396 333,396

    Surplus for the year 4,934 4,934

    As at 31 March 2007 338,330 338,330

6. Financial commitments

(a) The annual rentals payable on non-cancellable operating leases in force at the end of the year were

    as follows:

     Property Other

     2007 2006 2007 2006

     ? ? ? ?

     Expiring in 1-2 years - - - -

     Expiring in 2-5 years 346,735 461,330 14,376 14,024

     As noted at 7 the property lease is in the name of Birmingham City Council but under a service level

    agreement the Association is liable to pay the rent.

    Page 7

    WEST MIDLANDS IN EUROPE

    NOTES TO THE FINANCIAL STATEMENTS

    For the year ended 31 March 2007

7. Related party transactions

(a) Birmingham City Council, which is a member of WMLGA, has entered into a service level agreement

    with the Association whereby Birmingham City Council is the legal leaseholder of a property in

    Brussels occupied by the Association.

    Page 8

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