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2024-03-31-accounts

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

Charity registration number 1001348

Company registration number 02500924 (England and Wales) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr K Norton
Mrs M E Young
Mrs M A Brotherton
Mrs B C Gough
Mr S J Hattersley
Mr R H Laidler
Mr N J Tindall
Mr I L Mould (Appointed 24 April 2023)
Mr E A Forrester
Mr D P J Clancy
Mrs J V Burke
Mr R Fellows
Mrs S Robson (Appointed 24 June 2024)
Secretary Mr K Norton
Charity number 1001348
Company number 02500924
Registered office Cottage Care Centre
Upper Bar
Newport
Shropshire
TF10 7EH
Independent examiner Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 14

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objective for the company is the relief care and assistance of persons irrespective of colour, race or creed suffering from any form of sickness or incapacity and the advancement of education provision of facilities in the interests of social welfare for recreation and leisure time occupation for the benefit of the community in the Newport (Shropshire) District and surrounding neighbourhood.

The company’s principal activity is that of non-residential care and maintaining property in association with the League of Friends.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The public benefits form the activities of the trust due to its focus on health and well-being of the inhabitants of Newport and surrounding areas. Although its activities are limited geographically, the trust does not discriminate on the grounds of personal background, faith, gender, age or personal circumstances.

Achievements and performance

Significant activities and achievements against objectives

During the year, the company oversaw a small, planned increase in client numbers to what is currently seen as the maximum the care centre can accommodate. There is usually a waiting list of potential clients whenever a vacancy occurs.

The trustees/directors continue to look for ways in which the service to the clients can improve, particularly in respect of clients living with dementia.

The trustees/directors continue to be grateful for the support of the League of Friends.

The trustees/directors are of the opinion that the company remains financially stable and has retained adequate cash resources throughout the year under review.

Financial review

In 2024, the company generated total income of £437,134 (2023: £372,342) Operating, management and administrative expenses of £418,197 (£387,303) resulted in a net profit in funds of £18,937 (2023: £14,961 net loss)

Reserves policy

It is the policy of the trust to maintain unrestricted funds which are the free reserves of the company, at a level which equates to approximately three months unrestricted expenditure. In addition, the trustee/directors believe it prudent to retain additional reserves to allow for contingencies. This provides sufficient funds to cover management, administration and support costs. Unrestricted funds were maintained at an acceptable level throughout the year.

Major risks

The trustee/directors have reviewed the major risks to which the charity is exposed and systems of procedures and controls are in place to mitigate those risks and appropriate insurance has been taken out. In line with best practice, these policies will be reviewed on an annual basis.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management

The charity is registered as a company limited by guarantee under number 2500924 and as a charity under number 1001348.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr K Norton Mrs Y J Gough (Resigned 1 May 2024) Mrs M E Young Mrs M A Brotherton Mrs B C Gough Mr S J Hattersley Mr R H Laidler Mr N J Tindall Mr I L Mould (Appointed 24 April 2023) Mr E A Forrester Mr D P J Clancy Mrs J V Burke Mr R Fellows Mrs J Shepherd (Resigned 14 March 2024) Mr T C Hannon (Resigned 24 April 2023) Mrs S Robson (Appointed 24 June 2024)

Recruitment and appointment of trustees

Trustees are recruited from the local area, are appointed by the existing trustees and are inducted into the role by the chairman. Training is provided where necessary.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £5 in the event of a winding up.

Organisational structure

The day to day management of the company is undertaken by the Centre Manager, supported by the executive committee of trustees.

The Trustees meet formally on a regular basis to review the affairs and financial performance of the company.

The trustees' report was approved by the Board of Trustees.

..............................

Mr K Norton

Trustee

Date: .............................................

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

I report to the trustees on my examination of the financial statements of Newport (Shropshire) Cottage Care Centre Trust Limited (the charity) for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants (ACCA) - UK, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Audrey Williams FCCA Dyke Yaxley Limited

1 Brassey Road Old Potts Way Shrewsbury Shropshire SY3 7FA

Dated: .........................

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income and endowments from:
Donations and legacies
2
104,241
4,000
Charitable activities
3
312,967
-
Other trading activities
4
15,050
-
Investments
5
876
-
Other income
6
-
-
Total income
433,134
4,000
Expenditure on:
Raising funds
7
5,651
-
Charitable activities
8
395,411
17,135
Total expenditure
401,062
17,135
Net income/(expenditure) and
movement in funds
32,072
(13,135)
Reconciliation of funds:
Fund balances at 1 April 2023
277,055
399,759
Fund balances at 31 March
2024
309,127
386,624
Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
108,241
68,435
36,900
312,967
251,436
-
15,050
14,937
-
876
221
-
-
413
-
437,134
335,442
36,900
5,651
5,754
-
412,546
354,535
27,014
418,197
360,289
27,014
18,937
(24,847)
9,886
676,814
301,902
389,873
695,751
277,055
399,759
Total
2023
£
105,335
251,436
14,937
221
413
372,342
5,754
381,549
387,303
(14,961)
691,775
676,814

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
The funds of the charity
Restricted income funds
18
Unrestricted funds
2024
£
29,453
160,580
190,033
(11,052)
£
516,770
178,981
695,751
695,751
386,624
309,127
695,751
2023
£
29,279
147,074
176,353
(26,109)
£
526,570
150,244
676,814
676,814
399,759
277,055
676,814

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on .........................

..............................

Mr K Norton Trustee

Company registration number 02500924 (England and Wales)

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Newport (Shropshire) Cottage Care Centre Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Cottage Care Centre, Upper Bar, Newport, Shropshire, TF10 7EH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% Straight line
Fixtures and fittings 15% Reducing balance
Office Equipment 15% Reducing balance
Motor vehicles 25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
36,295
4,000
Legacies receivable
67,946
-
104,241
4,000
Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
40,295
50,000
36,900
67,946
18,435
-
108,241
68,435
36,900
Total
2023
£
86,900
18,435
105,335

3 Income from charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Daycare rental & lunches
Income received from charitable activities 312,967 251,436

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising events 15,050 14,937

We reclassified fundraising event income last year to allow for a more accurate analysis of income.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

5 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Bank interest receivable 876 221
6 Other income
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Net gain on disposal of tangible fixed assets - 413
7 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising and publicity
Staging fundraising events 5,651 5,754

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

8 Expenditure on charitable activities

Charitable Charitable
costs costs
2024 2023
£ £
Direct costs
Staff costs 264,772 232,284
Depreciation and impairment 32,479 35,873
Motor and travel expense 13,107 13,730
Power, light and heat 13,292 11,678
Water, rates and insurance 10,610 10,814
Repairs and renewals 18,729 22,439
Advertising and telephone 3,818 3,787
Printing, postage and stationery 2,517 3,233
Cleaning 2,875 3,298
Sundry expenses 10,687 11,480
Fund costs 10,583 6,136
Food catering 24,657 23,037
408,126 377,789
Share of support and governance costs (see note 9)
Governance 4,420 3,760
412,546 381,549
Analysis by fund
Unrestricted funds 395,411 354,535
Restricted funds 17,135 27,014
412,546 381,549
Support costs allocated to activities
2024 2023
£ £
Governance costs 4,420 3,760
Analysed between:
Charitable costs 4,420 3,760

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

10 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements 835 -
Depreciation of owned tangible fixed assets 32,479 35,873
Loss/(profit) on disposal of tangible fixed assets - (413)

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
2024
Number
24
2024
£
257,593
4,262
2,917
264,772
2023
Number
24
2023
£
232,284
-
-
232,284

There were no employees whose annual remuneration was more than £60,000.

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

14
Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 April 2023
821,346
96,262
Additions
-
22,679
At 31 March 2024
821,346
118,941
Depreciation and impairment
At 1 April 2023
362,456
77,256
Depreciation charged in the year
16,429
4,472
At 31 March 2024
378,885
81,728
Carrying amount
At 31 March 2024
442,461
37,213
At 31 March 2023
458,891
19,006
Office
Equipment
£
34,364
-
34,364
28,465
884
29,349
5,015
5,898
Motor
vehicles
£
95,992
-
95,992
53,217
10,694
63,911
32,081
42,775
Total
£
1,047,964
22,679
1,070,643
521,394
32,479
553,873
516,770
526,570
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income
17
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
2024
£
23,210
3,774
2,469
29,453
2024
£
2,740
3,469
4,843
11,052
2024
£
2,917
2023
£
22,773
3,326
3,180
29,279
2023
£
2,654
20,588
2,867
26,109
2023
£
-

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

17 Retirement benefit schemes

(Continued)

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
Land and Buildings 211,910 - (7,540) 204,370
Wasting assets 187,849 4,000 (9,595) 182,254
399,759 4,000 (17,135) 386,624
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
Land and Builidngs 219,450 - (7,540) 211,910
Wasted Assets 170,423 36,900 (19,474) 187,849
389,873 36,900 (27,014) 399,759

Land and Buildings

This fund represents the monies received for the purchase of Land and Building. This is reduced annually by the depreciation charge allocated to the assets.

Wasting Assets

This fund represents the monies received to purchased assets which could include Fixtures and Fittings, Office Equipment and Motor Vehicles. This is reduced annually by the depreciation charge allocated to the assets.

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
General funds 277,055 433,134 (401,062) 309,127

NEWPORT (SHROPSHIRE) COTTAGE CARE CENTRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

19 Unrestricted funds (Continued)
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 301,902 335,442 (360,289) 277,055
20 Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 March 2024:
Tangible assets 253,067 263,703 516,770
Current assets/(liabilities) 56,060 122,921 178,981
309,127 386,624 695,751
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
At 31 March 2023:
Tangible assets 262,998 263,572 526,570
Current assets/(liabilities) 14,057 136,187 150,244
277,055 399,759 676,814

21 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

During the year, the charity received £29,239 from Newport League of Friends of which trustee Mary Young is also a Trustee. No amount were outstanding at the year end.

During the year, the charity purchased £1,007 from Partners in Care (Shropshire, Telford and Wrekin) of which trustee Susan Robson is also a director. No amount were outstanding at the year end.