Sussex Rural Community Council
(Limited by Guarantee)
Company number 02907172 Charity number 1035401
Report and Financial Statements for the year ended 31 March 2023
Knill James LLP, Chartered Accountants One Bell Lane, Lewes East Sussex BN7 1JU
Sussex Rural Community Council
(Limited by Guarantee)
C ontents
| Page | |
|---|---|
| Trustees’ report | 2 – 9 |
| Auditors’ Report | 10 - 13 |
| Statement of Financial Ac�vi�es | 14 – 16 |
| Balance Sheet | 17 |
| Cash Flow Statement | 19 |
| Notes to Financial Statement | 20 - 31 |
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Sussex Rural Community Council
(Limited by Guarantee)
Trustees’ Report for year to 31 March 2023
After four years as its chair, Alex Ingham Clark is standing down at this year’s Annual General Meeting and he will step down as a trustee with effect from 31 December 2023 in accordance with the recommendations of the Charities Commission. Will Anderson, who joined Airs as a Trustee in August 2018 has been appointed as the new Chair.
1. Introduc�on
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102).
2. Charitable objects
coun�es of East and West Sussex; in par�cular to promote and organise partnership working to achieve the advancement of educa�on, the protec�on of health, relief of poverty, distress and sickness, by bringing together representa�ves of the statutory authori�es, voluntary organisa�ons and other bodies and any interested persons. We set out our strategic aims and ac�vi�es in more detail later in this report.
3. Structure, governance and management
Legal and administra�ve details
Sussex Rural Community Council (SRCC) is a company limited by guarantee and registered in England and Wales, company number 02907172, incorporated under the Companies Acts. SRCC is a registered charity number 1035401.
The governing body is the Board of Trustees. The governing document is the Ar�cles of Associa�on.
Opera�ng Name
Sussex Rural Community Council has operated during the year under the opera�ng name “Ac�on in rural Sussex” (AirS), which will used in this Trustees’ Report as the iden�ty by which the charity is most commonly known.
Directors and Trustees
The directors of SRCC are also its Trustees for the purpose of charity law and throughout this report are collec�vely referred to as the Trustees.
The Trustees who served during the year and since the year end have been: Alex Ingham Clark Chair William Anderson Colin Brown Appointed 17 January 2023
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Sussex Rural Community Council
(Limited by Guarantee)
Rob Dillingham Resigned 1 June 2023 Owen Ingram Appointed 17 November 2022 John Moore-Bick Kris�n Sjovorr Appointed 17 November 2022
President
Susan Pyper, Lord Lieutenant of West Sussex
Tom Warder, Interim Chief Execu�ve Officer from 1 October 2023
Independent Examiners and Auditors
Knill James LLP, One Bell Lane, Lewes, East Sussex, BN7 1JU
Bankers
Barclays Bank plc, The Old Bank, High Street, Lewes, East Sussex BN7 2JP; CAF Bank Limited, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ; Shawbrook Bank Ltd, Lutea House, Warley Hill Business Park, Brentwood, Essex CM13 3BE; The Charity Bank Ltd, Fosse House, 182 High Street, Tonbridge TN9 1BE;
Na�onwide Building Society, Kings Park Road, Moulton Park, Northampton NN3 6NW.
16 Market Street, Lewes, West Sussex BN7 2NB.
4. Appointment and Recruitment of Trustees
The trustees are elected by the members of the charity at the Annual General Mee�ng (AGM). Any remaining vacancies not filled at the AGM may be filled by co-op�on on the ini�a�ve of the trustees.
New trustees are briefed on their legal obliga�ons under charity and company law, the commitee and decision-making processes, the business plan and recent financial performance of the charity.
5. Trustees and their responsibili�es
with applicable law and United Kingdom Accoun�ng Standards.
true and fair view of the state of affairs of the charitable company and of the incoming resources and applica�on of resources, including the income and expenditure, of the charitable company for that period.
- select suitable accoun�ng policies and then apply them consistently.
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Sussex Rural Community Council
(Limited by Guarantee)
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observe the methods and principles in the Charity Statement of Recommended Prac�ce.
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make judgements and es�mates that are reasonable and prudent.
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state whether applicable accoun�ng standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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the charitable company will con�nue in business.
The trustees are responsible for keeping proper accoun�ng records which disclose with reasonable accuracy at any �me the financial posi�on of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the preven�on and detec�on of fraud and other irregulari�es.
The accounts comply with current statutory requirements and with the requirements of the governing document.
6. Financial review
Funding
AirS draws its funding from a variety of sources, but continues to be largely dependent on statutory sector funding. We are very grateful to all of our funders but particularly:
Those District Councils in West and East Sussex that provide funding for our housing services;
East Sussex County Council for their support of the Making It Happen project where AirS works as a partner with Sussex Community Development Association, Hastings Voluntary Action, Rother Voluntary Action and 3VA;
The National Lottery for their support of the Lost Woods consortium where AirS works as partner with The Woodland Trust, Sussex Wildlife Trust and The Small Woodland Association;
DEFRA for their ongoing annual grant in support of AirS through our national body, ACRE (Action with Communities in Rural England).
and even building materials so has seen considerable pressure on our projects and on the communi�es we serve. Chari�es like Airs will need to work extremely closely with local authori�es, funders and coordina�ng bodies to ensure that we remain connected and aligned to their priori�es and that we remain nimble and able to change course according to the headwinds that we face.
Restricted Funds
The detail of the restricted fund activity is set out in Note 16 of the financial statements. Where individual projects show a deficit on completion or termination, this has been made good from unrestricted funds. Restricted funds at the year end amounted to £46,246.
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Sussex Rural Community Council
(Limited by Guarantee)
Unrestricted Funds
The total unrestricted funds are set out in Note 15 of the financial statements amounted to £1,540,793. Of this total the Trustees have designated that £1,208,000 is held for specific purposes.
Reserves policy
The Board of Trustees has developed this reserves policy to cover the ongoing employee commitments, ensure business continuity and allow for its investment in developing sustainable income streams, contingent liabilities, working capital requirements and to take account of its annual risk review. The free reserve is maintained primarily in case Action in rural Sussex suffers a sudden and unforeseen contraction of activities.
This is mitigated through full cost recovery budgeting, accurate forecasting, advantageous contract negotiation where possible and careful treasury management. Any remaining free reserves not required under the reserves policy are available to develop the work of the charity, to meet its charitable objectives and to fulfil any latent contractual obligations entered by the charity as part of its primary purpose trading.
The Board of Trustees confirms that each restricted fund has sufficient assets to meet its obligations, or arrangements exist with the funders that these obligations will be met at the point at which the requirement arises. Trustees will annually review the reserves policy in the light of a continuing shift in funding profile, and the linked investment in strategic and business development.
Subsidiary Company
The company owns all the issued share capital in SRCC (Trading) Limited. This company did not trade during the year and since the year end has been dissolved.
Restatement of 2022 Financial Results
In reviewing the result for the year to 31 March 2023, errors were discovered in the way Accrued Income and Deferred Income had been analysed in the previous year’s accounts. As a result, we have had to restate the results for the year to 31 March 2022, for which the loss was understated by some £108,000. An internal review was prepared, explaining how the errors arose, and a copy of the review was forwarded to the Independent Examiner who had originally reported on the accounts, for their comment. No comments on the review have been received from the former Independent Examiner who resigned from that position a week later.
The Trustees have now appointed Knill James, Chartered Accountants of Lewes, East Sussex, to review the restated accounts to 31 March 2022 as Independent Examiner, and were appointed by the Trustees to act as auditor for the financial statements for the year to 31 March 2023.
The members of the company will be invited to approve both the restated accounts for the year to 31 March 2022 as well as the audited accounts to 31 March 2023 at the Annual General Meeting.
The Trustees will then inform both the Registrar of Companies and the Charities Commission of the circumstances of the restated accounts.
Review of the results for the Year to 31 March 2023
The financial statements for the year to 31 March 2023 show a deficiency of £30,703 (2022 deficiency £161,700) on income of £413,375 (2022 £452,231).
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Sussex Rural Community Council
(Limited by Guarantee)
This year saw a determined effort to reduce the costs of the charity, principally by review and reduction of our payroll costs, which dropped from £485,334 for 2022 to £348,473 for 2023. This was accompanied by a review of all our ongoing costs, and included the move to new and less expensive offices in Lewes.
7. Our Staff
Steven Haasz was appointed as interim CEO in December 2021. Since then, Steven has worked closely with the Board and with the team at AirS to rationalise the organisation, to build operational and financial stability, to develop the capability of key staff members, to overhaul our policies and processes and to manage the organisation day to day. We have been very pleased with the progress made by AirS in that time in terms of our delivery and impact, our financial impact and our overall effectiveness as a Charity. A�er 2 years as CEO and having delivered the key elements of our turnaround plan, Steven has stepped down as CEO with effect from 1 October 2023. The board would like to record their wholehearted apprecia�on and thanks for the energy and support that he has given to the charity.
We will shortly be starting the search for a new CEO. Meanwhile, since 1 October 2023 our Deputy CEO Tom Warder has stepped into the interim CEO role.
As always, none of the work we do can be achieved without staff dedicated to the charity and its objectives. We know how hard our staff have worked to continue the important work they do in their communities despite the challenges of engagement in recent times, and wish to thank them all again for the great effort they have all shown during this time.
8. Operational Review for year ended 31 March 2023
Housing and Planning
The Sussex Community Housing Hub has con�nued to support a pipeline of some 25 community led housing groups and projects throughout this �me.
when Icklesham CLT became the first in East Sussex for a new build of 15 affordable homes on a rural excep�on site, which ensures these will remain affordable and for local people in perpetuity.
Ringmer CLT also started on site whilst CLTs at Herstmonceux, Bexhill and Arundel all secured planning. Together these are expected to provide 57 affordable homes.
New CLT groups and projects have been established in Pet, Guestling and Rye.
interest rates in the current economic climate. Meanwhile the Hub has played a leading role in mobilising poli�cal support across Sussex for the community led housing sector and renewal of a na�onal Community Housing Fund.
AirS community led planning team also produced the first Neighbourhood Priority Statement alongside Hassocks Parish Council. Neighbourhood or Parish Priority Statements are seen as an excellent lighter touch alterna�ve for rural communi�es; a mini Parish or Neighbourhood Plan.
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Sussex Rural Community Council
(Limited by Guarantee)
We have also begun to explore the scope to support nature led community led planning processes, including greenspace management plans, climate ac�on plans and community resilience plans.
Village Hall Service
Our Village Halls Service is valued across both East and West Sussex with subscribers to the scheme growing to 160 during this period.
Training courses have been atended by 83 people on a variety of subjects relevant to all village halls, from incorpora�on to governance and risk assessments. We are looking to expand the training opportuni�es in future years.
We held two Village Hall Conferences in the year:
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May 2022 Lodsworth Village Hall, West Sussex;
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October 2022 Wadhurst Commemora�on Hall, East Sussex.
There were over 40 atendees for each conference. Topics covered funding, energy saving measures and insurance; and included speakers showing how Parish Councils can help Village Halls across a number of areas with a variety of speakers from: East Sussex Associa�on of Local Councils, Community Energy South and Allied & Westminster Insurance.
Consultancy assignments were completed with Har�ng and Oving parishes.
The service built closer links with Parish Councils who have engaged in trustees training and Village Hall and Playing Fields workshops.
We assisted 13 halls with applying for and obtaining funding from the Pla�num Jubilee Village Hall Fund.
Community Based Services
Our two major projects that progressed during the year were the Making it Happen (MiH) project in the Wealden district of East Sussex and the Lost Woods environmental project, based largely in West Sussex.
public health and delivered by five partners across the county. The project ends in March 2025 and AirS delivers the project in Wealden, focusing on the hub towns of Crowborough, Hailsham, Polegate and
the year, have been working well together to support communi�es in an asset-based way.
The MiH project was designed as a learning opportunity and so there has been a strong focus on the evalua�on and learning aspects of the project. This has offered AirS the opportunity to also learn and use some of the emerging tools for its own development.
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Sussex Rural Community Council
(Limited by Guarantee)
supported 23 grants during the year under review.
Themes have emerged around green spaces, biodiversity and wellbeing; cost of living and energy; food security and mental health. This is reflected in the projects supported, including Polegate nature reserve, Selby Meadow, and the Crowborough wildlife group; the Warm spaces collabora�on in Uckfield that evolved into the Warm Welcome Café; the community allotment in Hailsham and community orchard in Crowborough; the Calamity Cra�ing and Kinship groups in Hailsham.
Focus is beginning to turn towards the end of the project and its legacy, as well as what might be next for the five project partners. This is a conversa�on that is both external and internal and will become more dominant throughout this year. The AirS team have iden�fied that, as MiH is based in the hub towns we are currently not suppor�ng the rural villages. We would like to find a way of addressing this going forward.
The second major community development project is The Lost Woods of the Low Weald and Downs, which is a partnership between AirS and conservation and environmental charities The Woodland Trust, Sussex Wildlife Trust and the Small Woods Association with the aim or protecting, restoring and reconnecting Sussex’s precious ancient woodland in an unprotected area between Storrington and Lewes. AirS leads the role of engaging and supporting communities, particularly those who are often underserved, to visit, learn about, benefit from and protect their local woodlands.
The 18-month development stage of this project was funded by the National Heritage Lottery Fund; it began in July 2020 during which the team worked with and consulted communities to develop and test ideas, ultimately creating a 5 year delivery plan. The bid for part funding for a further 5 years to deliver the project was submitted to the National Lottery Heritage Fund in May 2022. In September 2022 the Lost Woods partnership were awarded £1.9 million towards the £2.6million, 5 years project, of which AirS were awarded £712,000 towards their £809,000 target. In December recruitment for a new team began, with interviews held in February 2023.
The team for this project requires five members, with diverse experience and skills across the spectrum of the project. By the end of March 2023 three places were filled; the team has now reached its full strength. Since the end of the period under review the project has moved forward strongly and activities include supporting Scaynes Hill Sustainability group to run a Family Nature trail and Dawn chorus walk in their local wood; running a pilot woodland well-being and play activity with Burgess Hill Young carers; and pilot conservation activities with Plumpton College and BeOK, a mental health support group run by Brighton and Hove Housing trust in Haywards Heath.
The breadth and depth of these operations show how well we are embedded into the rural communities of East and West Sussex. We continue to seek solutions for those rural communities.
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Sussex Rural Communlty Council (Limlted by Guarantee) 9. Small Company Exemptlons This report is prepared in accordance with the provisions of the Companies Act 2006 relating to small companies. Approved by the Board of Trustees on % , and signed on their behalf by: Alex Ingham Clark. Chair
Sussex Rural Community Council
(Limited by Guarantee)
Auditors’ Report to the Trustees
Opinion
We have audited the financial statements of Sussex Rural Community Foundation (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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of its incoming resources and applica�on of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accoun�ng Prac�ce; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions rela�ng to going concern
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other informa�on
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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Sussex Rural Community Council
(Limited by Guarantee)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Maters on which we are required to report by excep�on
We have nothing to report in respect of the following matters in relation to which the Charities
(Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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trustees report; or
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we have not received all the informa�on and explana�ons we require for our audit.
Responsibili�es of trustees
As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:
- obtained an understanding of the nature of the sector, including the legal and regulatory framework
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Sussex Rural Community Council
(Limited by Guarantee)
that the company operates in and how the company complies with the legal and regulatory framework;
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assessment of the risks of irregulari�es, including any known actual, suspected or alleged instances of fraud; and
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discussed maters about non-compliance with laws and regula�ons and how fraud might occur including assessment of how and where the financial statements may be suscep�ble to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company's governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Trustees' report, remaining alert to new or unusual transactions which may not be in accordance with the governing document.
The most significant laws and regulations that have an indirect impact on the financial statements are the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.
We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-andassurance/Standards-and- guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors- responsibilities-for-audit.aspx. This description forms part of our auditor's report.
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Sussex Rural Community Council
(Limited by Guarantee)
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Filsell FCA (Senior Statutory Auditor) for and on behalf of Knill James LLP Chartered Accountants Statutory Auditor
11 December 2023 .........................
One Bell Lane Lewes East Sussex BN7 1JU
Knill James LLP is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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Sussex Rural Community Council
(Limited by Guarantee)
Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 March 2023
| Unrestricted Restricted funds funds Notes £ £ Income and endowments from: 2 Donations and legacies Page 15 62,498 - Charitable activities: Operational programmes Page 15 257,050 68,968 Investments 3 24,861 - Total 344,409 68,968 Expenditure on charitable activities: Operational programmes Page 16 387,522 56,556 Net income ( expenditure) other recognised gains/ (losses) 4 (43,113) 12,412 Other recognised gains and losses: Actuarial valuation gains/ (losses) 19 203 - Net movement in funds (42,910) 12,412 Reconciliation of funds: Total funds brought forward 1,583,706 33,834 Total funds carried forward 15,16 1,540,796 46,246 |
2023 2022 Total Total £ £ 62,498 55,822 326,018 388,064 24,861 8,345 413,377 452,231 444,078 613,931 (30,701) (161,700) 203 1,108 (30,498) (160,592) 1,617,540 1,778,132 1,587,042 1,617,540 |
|---|---|
All income and expenditure derives from con�nuing ac�vi�es.
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Sussex Rural Community Council
(Limited by Guarantee)
Year ended 31 March 2023
| Income from dona�ons and legacies Grants Ac�on with Communi�es in Rural England (ACRE) Dona�ons Dona�ons Income from Charitable Ac�vi�es Income from opera�onal programmes Housing Hub Fees Village Hall consultancy/Subscrip�on Sussex Community Development Assoc. Neighbourhood Planning Other Income Project specifc funding Grants/Dona�ons Local & Regional Government Community Led Homes Funding Lost Woods Grants ACRE – Safeguarding Funding for Interns Total Income from dona�ons and legacies |
2023 £ 47,395 15,103 62,498 113,314 29,750 97,729 16,257 - 257,050 7,175 - 61,793 - - 68,968 388,514 |
2022 £ 47,395 8,427 55,822 122,929 25,787 72,498 24,238 1,356 246,808 13,226 14,635 109,395 1,000 3,000 141,256 443,886 |
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Sussex Rural Community Council
(Limited by Guarantee)
Year ended 31 March 2023
| Expenditure on charitable ac�vi�es Opera�onal programmes Informa�on technology Events Print post sta�onery Consultancy Marke�ng and publicity Small equipment Communica�ons Travel Salaries/social security/pension Support and governance costs Ofce overheads Rent Power and light Communica�ons Insurance Informa�on technology Repairs and maintenance Deprecia�on Administra�on costs Salaries, social security, pensions Other pension costs Staf recruitment, training and support Informa�on technology Adver�sing and marke�ng Membership fees Travel Bank Charges Legal and Professional Sundries Growth Plan Pension Scheme Irrecoverable VAT Total expenditure on charitable ac�vi�es |
2023 £ 1,233 2,388 1,745 11,136 3,440 17 172 6,862 29,563 56,556 16,517 7,306 4,434 1,815 4,620 527 217 35,436 317,557 5,317 6,296 1,034 928 6,911 814 72 12,051 (656) - 1,762 352,086 444,078 |
2022 £ 5,939 3,060 2,913 12,187 1,022 618 1,050 4,407 79,202 110,398 18,444 2,258 3,942 2,112 10,170 2,291 455 39,672 389,992 45,501 29,509 1,261 1,742 4,825 713 132 3,958 144 (16,239) 2,323 463,861 613,931 |
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Sussex Rural Community Council
(Limited by Guarantee)
Balance Sheet as at 31 March 2023
| 2023 Notes £ £ Fixed Assets Tangible assets 9 420 Investment 10 2 422 Current assets Debtors 11 72,209 Cash balances 1,685,747 1,757,956 Liabili�es Creditors: amounts falling Due in under one year 12 (163,740) Net current assets 1,594,216 Total assets less current liabili�es 1,594,638 Provisions 19 (7,596) Net assets 1,587,042 The funds of the charity Unrestricted funds 15 - General funds 340,392 - Designated funds 1,208,000 - Pension Reserve 19 (7,596) 1,540,796 Restricted funds 16 46,246 Total charity funds 1,587,042 |
2023 Notes £ £ Fixed Assets Tangible assets 9 420 Investment 10 2 422 Current assets Debtors 11 72,209 Cash balances 1,685,747 1,757,956 Liabili�es Creditors: amounts falling Due in under one year 12 (163,740) Net current assets 1,594,216 Total assets less current liabili�es 1,594,638 Provisions 19 (7,596) Net assets 1,587,042 The funds of the charity Unrestricted funds 15 - General funds 340,392 - Designated funds 1,208,000 - Pension Reserve 19 (7,596) 1,540,796 Restricted funds 16 46,246 Total charity funds 1,587,042 |
2023 Notes £ £ Fixed Assets Tangible assets 9 420 Investment 10 2 422 Current assets Debtors 11 72,209 Cash balances 1,685,747 1,757,956 Liabili�es Creditors: amounts falling Due in under one year 12 (163,740) Net current assets 1,594,216 Total assets less current liabili�es 1,594,638 Provisions 19 (7,596) Net assets 1,587,042 The funds of the charity Unrestricted funds 15 - General funds 340,392 - Designated funds 1,208,000 - Pension Reserve 19 (7,596) 1,540,796 Restricted funds 16 46,246 Total charity funds 1,587,042 |
2022 £ £ 638 2 640 76,636 1,799,127 1,875,763 (246,948) 1,628,815 1,629,455 (11,915) 1,617,540 387,621 1,208,000 (11,915) 1,583,706 33,834 1,617,540 |
|---|---|---|---|
1,587,042 340,392 1,208,000 (7,596) |
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1,540,796 46,246 1,587,042 |
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Sussex Rural Community Council {Limited by Guarantee) For the year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities: The members have not required the company to obtain an audit of its accounts for the year in question in accordance with Section 476 of the Companies Act 2006- The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements were approved by the Board of Trustees on and signed on its behalf by= Alex Ingham Clark Chair John Moore-Bick Trustee 18
Sussex Rural Community Council
(Limited by Guarantee)
Cash Flow Statement For the year ended 31 March 2023
| Notes Cash fows from opera�ng ac�vi�es 21 Cash fows from inves�ng ac�vi�es: Dividends, interest and rents from investments Purchase of equipment Net cash provided by investment ac�vi�es Change in Cash balances in the repor�ng period Cash balances at the beginning of the repor�ng period Cash balances at the end of the repor�ng period |
2023 £ (138,241) 24,861 - 24,861 (113,380) 1,799,127 1,685,747 |
2022 £ (73,524) 8,345 (651) 7,694 (65,830) 1,864,957 1,799,127 |
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
1. Accoun�ng policies
Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard (FRS 102) and the Companies Act 2006.
liabili�es are ini�ally recognised at historical cost or transac�on value unless otherwise stated in relevant accoun�ng policy notes.
1.2
Statements by virtue of sec�on 398 of the Companies Act 2006 as the group it heads qualifies as a small group. These financial statements therefore present informa�on about the company as an individual undertaking and not about its group.
1.3. Prepara�on of the accounts on a going concern basis
The company is dependent on the con�nued support of grant aiding bodies. The trustees believe that the company will con�nue to receive this support and, taking into accounts its cash reserves, consider that it is appropriate to prepare the financial statements on the going concern basis.
1.4 Incoming resources
All incoming resources are included in the Statement of Financial Ac�vi�es when:
-
the charity is legally en�tled to the funds;
-
any performance condi�ons atached to the income have been met or are fully within the control of the charity;
-
the amount can be reliably measured.
Dona�ons and legacies
Grants and dona�ons are recognised as incoming resources in the year in which they are receivable, except as follows:
- When donors specify that grants or dona�ons given to the charity must be used in future accoun�ng periods, the income is deferred to those periods;
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2023
- en�tled to use such income. The income is deferred and not included in incoming resources un�l the precondi�ons for use are met.
Charitable ac�vi�es
Income from opera�onal programmes is included in the incoming resources in the period in which the relevant programme takes place.
restricted purposes, which do not amount to pre-condi�ons regarding en�tlement. This income is included in incoming resources of restricted funds when receivable.
Investment income
Interest on funds held on deposit is included when receivable and the amount can measured reliably by the charity; this is normally upon no�fica�on of the interest paid or payable by the bank.
1.5 Expenditure
An expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered and is recognised when:
-
there is a legal or construc�ve obliga�on to make a payment;
-
it is probable that setlement will be required;
-
the amount of the obliga�on can measured reliably.
Charitable ac�vi�es
programmes and allocated to the relevant heading within resources expended.
Support costs
company operates as well as governance costs. Support costs are wholly atributable to opera�onal programme costs.
Governance costs
Costs associated with the cons�tu�onal and statutory requirements of the charity.
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
1.6. Fund accoun�ng
Funds held by the charity are either:
-
Unrestricted general funds - these are funds which can be used in accordance with the
-
charitable objects at the discre�on of the trustees.
-
Designated funds - these are unrestricted funds of the charity which the trustees have decided at their discre�on to set aside to use for a specific purpose.
-
Restricted funds - these are funds that can only be used for par�cular restricted purposes within the objects or the charity. Restric�ons arise when specified by the donor or when funds are raised for par�cular restricted purposes.
provided at annual rates calculated to write off the cost less residual value of each asset over its expected useful life. as follows:
of the project.
1.8. Investments
Fixed asset investments are stated at cost less provision for diminu�on in value.
1.9 Debtors
Trade and other debtors are recognised at the setlement amount due a�er any trade discount offered. Prepayments are valued at the amount prepaid a�er taking account of any trade discounts.
1.10 Cash Balances
Cash balances include cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisi�on or opening of the deposit or similar account.
1.11 Creditors and provisions
Creditors and provisions are recognised where the charity has a present obliga�on resul�ng from a past event that will probably result in the transfer of funds to a third party and the amount due to setle the obliga�on can be measured or es�mated reliably.
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2023
Creditors and provisions are normally recognised at their setlement amount a�er allowing for any trade discounts due.
1.12 Pensions
rela�on to certain members of staff in accordance with the terms of their employment contracts. Such payments are charged to the statement of financial ac�vi�es as they become payable.
1.13. Financial Instruments
financial instruments. Basic financial instruments are ini�ally recognised at transac�on value, and subsequently measured at their setlement value.
In determining the carrying amounts of certain assets and liabili�es, the charity makes assump�ons of the effects of uncertain future events on those assets and liabili�es at the balance sheet date. The charity's es�mates and assump�ons are based on historical experience and expecta�on of future events and are reviewed annually.
2. Incoming Resources
The total incoming resources for the year have been derived from the principal ac�vity undertaken wholly in the UK.
| 3. Interest receivable Bank interest 4. Net income/(expenditure) for the year is stated a�er charging: Deprecia�on of tangible assets Audit or Independent examina�on |
2023 £ 24,861 2023 £ 218 6,220 |
2022 £ 8,345 |
|---|---|---|
2022 £ 455 4,000 |
5. Trustees’ emoluments and reimbursed expenses
The trustees received no remunera�on during the year (2022 - £Nil).
The aggregated amount reimbursed to trustees during the year was £283 (2022 - £298).
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
| 6. Staf costs and numbers Staf costs Salaries, social security and pension costs Other pension costs |
2023 £ 347,120 5,317 352,437 |
2022 £ 469,194 29,262 498,456 |
|---|---|---|
No employee earned more than £60,000 during the year (2022 – £Nil).
The key management personnel of the charity comprise the Trustees and the Management Team. The total employee costs of the key management personnel of the charity were £107,000 (2021 - £93,684).
was made up as follows:
| Support /opera�onal programmes | 2023 Number 14 |
2022 Number 14 |
|---|---|---|
7. Pension costs
The scheme and its assets are held by independent managers. The pension charge represents contribu�ons due from the company and amounted to £1,353 (2022 - £16,239).
8. Corpora�on taxa�on
The company is exempt from tax on income and gains falling within sec�on 505 of the Taxes Act 1988 or sec�on 252 of the Taxa�on of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
| 9. Fixed Assets -tangible assets Cost 1 April 2022 Addi�ons 31 March 2023 Deprecia�on 1 April 2022 Charge for year 31 March 2023 Net book values 31 March 2023 31 March 2022 10. Fixed Asset Investments Cost 1 April 2022 and 31 March 2023 Net book values 31 March 2023 31 March 2022 |
Furniture Fixtures Equipment £ 8,341 - 8,341 7,703 218 7,921 420 638 Subsidiary Undertakings Shares £ 2 2 2 |
Total £ 8,341 - 8,341 7,703 218 7,921 420 638 Total £ 2 2 2 |
|---|---|---|
The company owns all of the issued share capital of SRCC (Trading) Limited, a company registered in England and Wales, number 03101724. SRCC (Trading) Limited did not trade during the year, and since the year end has been dissolved.
25
Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
| 11. Debtors Trade debtors Other debtors Prepayments Accrued Income 12. Creditors: amounts falling due within one year Trade creditors Other taxa�on and social security Other creditors Accruals Deferred income (Note13) 13. Deferred Income Balance at 1 April 2022 Amount released to incoming resources Amount deferred in the year Balance at 31 March 2023 |
2023 £ 59,716 1,017 1,062 10,414 72,209 2023 £ 8,532 7,870 5,043 18,795 123,500 163,740 |
2022 £ 65,866 1,725 958 8,087 76,636 2022 £ 8,858 29,544 8,915 18,997 180,634 246,948 £ 180,634 (99,134) 42,000 123,500 |
|---|---|---|
Deferred income relates to grants and other income received in advance.
14. Limited by guarantee
Sussex Rural Community Council is a private company, limited by guarantee, registered in England and Wales without a share capital. Each member guarantees to contribute £1 to the company in the event of its winding up. At 31 March 2023 there were 71 members.
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements
For the year ended 31 March 2023
| 15. | Unrestricted funds | Brought | Incoming | Outgoing | Outgoing | Pension | Carried |
|---|---|---|---|---|---|---|---|
| forward | resources | resources | forward | ||||
| £ | £ | £ | £ | £ | |||
| Designated funds: | |||||||
| Development Fund | 534,984 | - | - | - | 534,984 | ||
| Reloca�on Fund | 500,000 | - | - | - | 500,000 | ||
| Sussex Community Housing Hub 92,016 | - | - | - | 92,016 | |||
| IT Rolling Replacement Fund | 18,000 | - | - | - | 18,000 | ||
| Recruitment Fund | 63,000 | - | - | - | 63,000 | ||
| Total designated fund | 1,208,000 | - | - | - | 1,208,000 | ||
| General fund | 387,621 | 344,409 | (387,319) | (4,319) | 340,392 |
||
| Pension scheme defcit | (11,915) | - |
- | 4,319 | (7,596) | ||
| 1,583,706 | 344,409 | (387,319) | - | 1,540,796 |
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
16. Restricted funds
| Restricted funds Objec�ves |
Brought Incoming Outgoing Carried forward resources resources forward £ £ £ £ 33,834 68,968 (56,556) 46,246 |
|---|---|
Objec�ves
These funds are for three main objec�ves:
-
Tackling Rural Disadvantage
-
Building Community Capacity and Resilience
-
Rural Voice
17. Analysis of net assets between funds
| Fund balances at 31 March 2023 are represented by: Tangible fxed assets Investments Net current assets Pension Reserve |
General Designated Restricted Total Funds funds funds £ £ £ £ 420 - - 420 2 - - 2 339,970 1,208,000 46,246 1,594,216 (7,596) - - (7,596) |
|---|---|
332,796 1,208,000 46,246 1,587,042 |
18. Financial commitments
| Financial commitments | Financial commitments | Financial commitments |
|---|---|---|
| At 31 March 2023 the company had total future commitments under non-cancellable | ||
| opera�ng leases as follows: | ||
| 2023 | 2022 | |
| £ | £ | |
| Due: | ||
| Within one year | 6,700 | 17,962 |
28
Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
19. Pension scheme
The company is a par�cipa�ng employer in the Growth Plan operated by the Pensions Trust to provide pension benefits for members of staff. The company par�cipates in the scheme, a mul�-employer scheme which provides benefits to some 638 non-associated par�cipa�ng employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient informa�on to enable it to account for the scheme as a defined benefit scheme.
The scheme is subject to the funding legisla�on outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Repor�ng Council, set out the framework for funding defined benefit occupa�onal pension schemes in the UK.
liable for other par�cipa�ng employers' obliga�ons if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Par�cipa�ng employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: From 1 April 2022 to 31 January 2025: £3,312,000 per annum.
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows: From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1[st] April).
The recovery plan contribu�ons are allocated to each par�cipa�ng employer in line with their es�mated share of the Series 1 and Series 2 scheme liabili�es.
29
Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
the company recognises a liability for this obliga�on. The amount recognised is the net present value of the deficit reduc�on contribu�ons payable under the agreement that relates to the deficit. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| Period Ending | Period Ending | Period Ending | Period Ending | |
|---|---|---|---|---|
| 31 March | 2023 | 31 March | 2022 | |
| (£s) | (£s) | |||
| Provision at start of period | 11,915 | 64,170 | ||
| Unwinding of the discount factor (interest expense)* | 225 | 370 | ||
| Deficit contribution paid | (4,341) | (16,239) | ||
| Remeasurements - impact of any change in assumptions* | (203) | (274) | ||
| Remeasurements - amendments to the contribution schedule | - | (36,112) | ||
| Provision at end of period | 7,596 | 11,915 | ||
| Costs recognised in income and expenditure account | * | * |
20. Related party transac�ons
During the year the company had no related party transac�ons that require disclosure.
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Sussex Rural Community Council
(Limited by Guarantee)
Notes to the Financial Statements For the year ended 31 March 2023
| 21. Reconcilia�on of net income (expenditure) to net cashfow from opera�ng ac�vi�es Net income (expenditure) for the repor�ng period (as per the statement of fnancial ac�vi�es) Deprecia�on Dividends and interest Decrease in stocks (Increase) decrease in debtors (Decrease) increase in provisions (Decrease) increase in creditors Net cash ou�low from opera�ng ac�vi�es |
2023 £ (30,500) 218 (24,861) - 4,427 (4,319) (83,206) (138,241) |
2022 £ (160,593) 455 (8,345) 1,919 (27,791) (17,345) 138,176 (73,524) |
|---|---|---|
22. Prior year adjustment
In reviewing the result for the year to 31 March 2023, errors were discovered in the way Accrued Income and Deferred Income had been analysed in the previous year’s accounts. As a result, we have had to restate the results for the year to 31 March 2022, for which the loss was understated by some £108,000.
An internal review was prepared, explaining how the errors arose, and a copy of the review was forwarded to the Independent Examiner who had originally reported on the accounts, for their comment. No comments on the review have been received from the former Independent Examiner who resigned from that posi�on a week later.
The Trustees have now appointed Knill James, Chartered Accountants of Lewes, East Sussex, to review the restated accounts to 31 March 2022 as Independent Examiner, and were appointed by the Trustees to act as auditor for the financial statements for the year to 31 March 2023.
The members of the company will be invited to approve both the restated accounts for the year to 31 March 2022 as well as the audited accounts to 31 March 2023 at the Annual General Mee�ng.
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