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2021-03-31-accounts

Great Torrington and District Community Development Trust (A company limited by guarantee)

Charity No. 1055230

Company No 03193400

Annual Report and Unaudited Financial Statements For the year ended 31 March 2021

Great Torrington and District Community Development Trust

CONTENTS Page
Charity information 2
Trustees’ Report 3-5
Independent Examiner’s Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9-13

1

Great Torrington and District Community Development Trust

CHARITY INFORMATION

CHARITY INFORMATION
Charity Name Great Torrington and District Community Development Trust
Limited
Charity registration number 1055230
Company registration number 03193400 (a company limited by guarantee)
Principal and registered office Castle Hill,
South Street,
Great Torrington,
Devon EX38 8AA.
Trustees (Directors) P. Hood, Chair
G. Bealey
Mrs P. Maisey
P. Martin
Mrs D. Nicholson
P. Topham
Mrs J. Welch
Secretary
P. Topham
Solicitors
Trowers & Hamlins,
Linacre House,
Southernhay Gardens,
Exeter,
Devon EX1 1UG.
Bankers
Lloyds Bank Plc.,
5 High Street,
Bideford,
Devon EX29 2AD.
Independent Examiner
Andrew Fraser
Stowford House,
East Stowford,
Umberleigh,
Devon EX37 9RU.

2

Great Torrington and District Community Development Trust

TRUSTEES’ REPORT

The Trustees, who are also Directors for the purposes of the Companies Act, have pleasure in presenting their report and the unaudited financial statements of the Charity for the year ended 31st March 2021.

LEGAL STATUS

The Charity is a charitable company limited by guarantee and was incorporated on the 9[th] May 1996.

OBJECTS, ORGANISATION AND ACTIVITIES

The principal activity of the Charity during the year was to improve the conditions of life and social welfare for those living or working in the Great Torrington area.

REVIEW OF PROGRESS AND ACHIEVEMENTS

The Charity continues to be managed by the Trustees on a voluntary basis. The work of the Charity amounts to the ongoing management and support of the portfolio of measures already implemented.

During the year the Trust and its subsidiary trading company were, like many organisations, greatly affected by the Covid pandemic. We ceased to manage our cafe facilities and outsourced the service, as a consequence we now only employ two people (2000: eight). We continue to be supported by more than thirty (2000: twenty) volunteers to actively support our work and maintain our gardens.

The Trustees continue their policy of managing a portfolio of community owned assets to generate a revenue stream which will support the ongoing core costs of the organisation. However, the level of the trading surplus remains insufficient to fund new projects for the Trust.

During the year the Charity obtained further grants for landscaping works in the Castle Hill Gardens to improve visitor experience and town signage within Great Torrington. This project together with our website continue to aid our community to be better informed of local facilities and events and to encourage visitors to come to Great Torrington.

The Charity continues to seek new sources of grant funding to provide support for both the ongoing core costs of the Trust and for new community projects currently under development.

3

Great Torrington and District Community Development Trust

TRUSTEES’ REPORT (continued)

RESTRICTED FUNDS

Monies raised for specific projects are held on a restricted basis until the funds are required. As at 31[st] March 2021 the following funds, included within the above were held - Capital and Leasehold Grants. These relate to the original funding for the development of Castle hill.

ACCOUNTING POLICIES

In preparing these financial statements the Trustees are required to select suitable accounting policies and then to apply them consistently, making judgements and estimates that are reasonable and prudent. The Trustees must also prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue its activities.

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at the time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDIT STATUS & INDEPENDENT EXAMINER

Under Charity and Company Law, the Trust is exempt from audit. Within Charity legislation an audit is only mandatory when gross income exceeds £500,000. The Trust must, however, have its annual accounts reviewed by an Independent Examiner.

FINANCES

The attached financial statements show the current state of finances. At the year end there was a deficit of £132,660 (2020 deficit £148,257) on unrestricted funds. The income and property of the Charity shall be applied solely towards the promotion of the objects and no part shall be paid or transferred, directly or indirectly, by way of dividend, bonus or otherwise by way of profit to members of the Charity.

TRUSTEES AND THEIR INTERESTS

The Trustees who held office during the year are detailed on page 1. None of the Trustees had an interest in the shares of the Charity at any time during the year as the Charity is limited by guarantee.

TRUSTEES RESPONSIBILITIES

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity at the end of its financial year and of the incoming and outgoing resources for the year then ended.

RESERVE POLICY

The Trustees aim to keep the equivalent of twelve months running costs as unrestricted reserves. Any surplus funds over and above this amount will be used in furtherance of the Objectives of the Trust.

4

Great Torrington and District Community Development Trust

TRUSTEES’ REPORT (continued)

RISK POLICY

The Trustees consider that the major risk to the Trust is the ongoing lack of grant funding to cover the core costs of the Trust. The Trustees are seeking ways to increase the trading subsidiary’s income, to enable surplus funds to be generated for use by the Trust.

DISSOLUTION

Every member of the Charity undertakes to contribute an amount (but not exceeding £1) towards the settlement of the Charity’s debts and liabilities in the event of it being wound up.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees on 2[nd] October 2021 and signed on its behalf by,

…………………………………………………….

Mr P. Hood, Chairman

Date: 2[nd] October 2021

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Great Torrington and District Community Development Trust

INDEPENDENT EXAMINER’S REPORT TO THE SHAREHOLDERS ON THE UNAUDITED ACCOUNTS OF GREAT TORRINGTON AND DISTRICT COMMUNITY DEVELOPMENT TRUST LIMITED

I report on the Financial Statements for the year ended 31[st] March 2021 set out on pages 7 to 13.

RESPECTIVE RESPONSIBILITY OF THE DIRECTORS AND INDEPENDENT EXAMINER

As described on page 3 the Trustees are responsible for the preparation of the Financial Statements and they consider that the Charity is exempt from an annual audit. It is my responsibility to carry out procedures designed to enable me to report in my opinion.

BASIS OF OPINION

My work was conducted in accordance with the Statement of Standards for Reporting Accountants and so my procedures consisted of comparing the Accounts with the accounting records kept by the Company, and making such limited enquiries of the Directors of the Company as was considered necessary for the purposes of the report. These procedures provide only the assurances expressed in my opinion.

OPINION

In our opinion:

  1. the Financial Statements are in agreement with the accounting records kept by the Charity under the Companies Act 2006;

  2. having regard only to, and on the basis of, the information contained in those accounting records;

  3. the Financial Statements have been drawn up in a manner consistent with the accounting requirements specified in the Act, and

  4. the Charity satisfied the conditions for exemption from an audit of the Financial Statements for the year as specified in the Act and did not, at any time within that year, fall within any of the categories of companies not entitled to the exemptions specified in the Act.

……………………………………………………………..

Andrew Fraser

Date: 2[nd] October 2021

6

Great Torrington and District Community Development Trust

STATEMENT OF FINANCIAL ACTIVITY, INCLUDING INCOME AND EXPENDITURE ACCOUNT For the year ended 31[ST] March 2021

Note
Income resources
Donations and Legacies
Grants
Charitable income
Investment income
4
5
6
7
Resources expended
Support costs
Projects
Castle Hill gardens
Town website
Town signage
8
Net movement before transfers
Transfers
Gross transfers between funds
Net movement in funds
Reconciliation of funds
Net funds brought forward
Total funds carried forward		 Restricted
Funds
£
0
5,548
0
0
5,548
0
3,897
1,000
1,616
6,513
(965)
0
(965)
1,088,477
1,087,512		 Unrestricted
Funds
£
25,000
0
0
2
25,002
9,405
0
0
0
9,405
15,597
0
15,597
-148,257
-132,660		 Total
Funds
2021
£
25,000
5,548
0
2
30,550
9,405
3,897
1,000
1,616
15,918
14,632
0
14,632
940,220
954,852		 Total
Funds
2020
£
25,000
16,309
0
4
41,313
5
2,295
3,855
1,500
7,655
33,658
0
33,658
906,652
940.220

The Notes on pages 9 to 13 form an integral part of these financial statements.

7

Great Torrington and District Community Development Trust

BALANCE SHEET As at 31[st] MARCH 2021

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors due within one year
Net current assets / liabilities
Net Assets
15
The funds of the Charity
Restricted Funds
Unrestricted Funds
Total Charity funds
16		 2021
£
£
915,177
33,535
6,140
39,675
0
39,675
954,852
1,087,512
-132,660
954,852		 2021
£
£
915,177
33,535
6,140
39,675
0
39,675
954,852
1,087,512
-132,660
954,852		 2020
£
£
924,498
8,535
7,187
15,722
0
15,722
940,220
1,088,477
-148,257
940,220		 2020
£
£
924,498
8,535
7,187
15,722
0
15,722
940,220
1,088,477
-148,257
940,220
39,675
0		 15,722
0
954,852 940,220
1,087,512
-132,660		 1,088,477
-148,257
954,852 940,220

For the year ending 31[st] March 2021 the Charity was entitled to exemption from audit under section 477 of the Companies Act 2006 and accordingly the members have not required the Charity to obtain an audit in accordance with section 476 of the Companies Act 2006.

The Trustees acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of Financial Statements. These Financial Statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the Board of Trustees on 2[nd] October 2021 and signed on its behalf by,

………………………………………………..

Mr P. Hood, Chairman

Date: 2[nd] October 2021

The Notes on pages 9 to 13 form an integral part of these financial statements.

8

Great Torrington and District Community Development Trust

1 FUNDAMENTAL ACCOUNTING CONCEPT

These financial statements and those of the subsidiary company, Genesis (Great Torrington) Limited (Genesis), of which this charity is the sole member, have been prepared on a going concern basis on the grounds that the Charity continues to support Genesis financially by guaranteeing the Company’s overdraft facility, although currently Genesis does not need financial support. The Trustees believe that the steps that they have taken to protect cash flow will enable the Charity and Genesis to continue to meet their respective liabilities as they fall due.

2 ACCOUNTING POLICIES

Basis of preparation

The Financial Statements have been prepared under the historic cost convention and in accordance with the Statement of Recommended Practice – Accounting and Reporting Standard for Charities (SORP 2005) issued in March 2005, the Financial Reporting Standard for Small Entities effective January 2007, and the Companies Act 2006.

Cash Flow Statement

The Trustees have taken advantage of the exemption in Financial Reporting Standard 102 from including a Cash Flow Statement in the Financial Statements on the grounds of the size of the Charity.

Consolidation

The Charity is the holding company of a small group. The Company however has taken advantage of the exemption provided by the Companies Act 2006 in not preparing group accounts. The Charity has also taken advantage of the rules within SORP 2005 by not preparing consolidated accounts as the turnover for the Group, after eliminating intra group trading is less than £500,000.

Fund accounting policy

Unrestricted income funds are generated funds that are available for use at the Trustees’ discretion in furtherance of the Charity’s charitable objectives. Restricted funds are those funds donated for a particular purpose and remain restricted in their application to that purpose.

Further details of each fund are disclosed in Note 15.

Incoming resources

Except for donations from Genesis (Great Torrington) Ltd., our trading company, voluntary income, donations, grants and investment income that provide core funding or are of a general nature are only recognised upon receipt.

Grants

Grants received in respect of capital expenditure are recognised as a restricted fund in the period in which they are received and depreciation relating to those assts is charged to the fund over the estimated useful life of the fund. Grants received in respect of non-depreciable capital expenditure are deducted from the cost of the fixed assets. Grants of a revenue nature are credited to Unrestricted Funds in the period in which they are received.

9

Great Torrington and District Community Development Trust

2 ACCOUNTING POLICIES (continued)

General income

Income from charitable activities includes income recognised as earned as the related goods or services are provided.

Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of generating funds are the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Governance costs include costs of the preparation and examination of the Financial Statements, the costs of Trustees’ meetings and the cost of any legal advice to the Charity on governance or constitutional matters.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor area, or per capita, staff costs by the time spent and other costs by their usage.

3 DEPRECIATION

Depreciation is provided on tangible fixed assets so as to write off costs or valuation, less any estimated residual value, over the expected useful economic life of the asset as follows:

Leasehold property straight line over 999 years
Leasehold improvements straight line over 100 years
Plant and machinery 20% reducing value

4

DONATIONS and LEGACIES
Donations - Private
Group Company		 Restricted
Funds
£
Unrestricted
Funds
£
Total
Funds
2021
£
0
0
0
0
25,000
25,000
0
25,000
25,000		 Total
Funds
2020
£
0
25,000
25,000

10

Great Torrington and District Community Development Trust

5 GRANTS RECEIVED

GRANTS RECEIVED
Restricted Unrestricted Total Total
Funds Funds Funds Funds
£ £ 2021 2020
£ £
Private 5,548 0 5,548 16,309

Restricted Funds are held for community projects to be completed within the next year.

6 INCOME FROM CHARITABLE ACTIVITIES

There was no income from charitable activities during the year (2020 £nil).

7 INVESTMENT INCOME

Interest on cash deposits Restricted
Funds
£
Unrestricted
Funds
£
Total
Funds
2021
£
Total
Funds
2020
£
0
2
2
4

8 TOTAL RESOURCES EXPENDED

Support costs
Project costs
Administration
Bank charges and
interest
Depreciation of
tangible assets		 Grants
£
Charitable
Trading
Activities
£
Management
&
Admin
£
Support
£
Total
2021
£
6,513
0
0
0
0
0
0
0
0
0
0
0
84
0
84
0
0
9,321
0
9,321
6,513
0
9,405
0
15,918		 Total
2020
£
7,650
-9,438
78
9,365
7,655

9 TRANSACTIONS WITH THE TRUSTEES

The Trustees have received no remuneration for services supplied to the Charity during the year and have no interests in any supplier of services or materials to the Charity.

11

Great Torrington and District Community Development Trust

10 NET EXPENDITURE

Net expenditure is stated after charging:

Depreciation of tangible fixed assets 2021
£
2020
£
9,321
9,365

11 EMPLOYEES’ REMUNERATION

There were no employees in receipt of remuneration during the year (2020 nil).

12 TAXATION

The Charity is exempt from Corporation Tax.

13 TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Cost
As at 31st March 2020 and 31st
March
2021,
there
being
no
additions or disposals in the year
Depreciation
As at 1st April 2020
Charge for the year
As at 31st March 2021
Net book value		 Leasehold
land and
buildings
Plant
and
machinery
Total
2021
£
£
£
1,132,863
147,036
1,279,899
209,258
146,143
355,401
9,142
179
9,321
218,400
146,322
364,722
914,463
714
915,177		 Total
2020
£
1,279,899
346,036
9,365
355,401
924,498

14 DEBTORS

Amounts owed by Group Company 2021
£
33,535
33,535		 2020
£
8,535
8,535

12

Great Torrington and District Community Development Trust

15 ANALYSIS OF NET ASSETS

Tangible assets
Current assets
Creditors falling due within one year		 Funds
Restricted
Unrestricted
Total
2021
£
£
£
915,177
0
915,177
0
39,675
39,675
0
0
0
915,177
39,675
954,852		 Total
Funds
2020
£
924,498
15,722
0
940,220

16 ANALYSIS OF FUNDS

General Funds
Charitable trading
Restricted Funds
Capital grants
Leasehold grants
Other grants		 At 31st
March
2020
£
-148,257
954,698
103,950
29,829
1,088,477
940,220		 Resources
Transfers
Incoming
Outgoing
£
£
£
25,002
-9,405
0
0
0
0
0
0
0
5,548
-6,513
0
5,548
-6,513
0
30,550
-15918
0		 At 31st
March
2021
£
-132,660
954,698
103,950
28,864
1,087,512
954,852

17 COMPANY LIMITED BY GUARANTEE

The Great Torrington and District Community Development Trust Limited is a Charity limited by guarantee and therefore not having a share capital. In the event of a winding up the members each undertake to contribute to reducing any deficiency by an amount not exceeding £1. The number of members at the 31[st] March was 6 (2020 5).

18 CONTINGENT LIABILITIES

The Charity is the sole member of Genesis (Great Torrington) Limited, a company limited by guarantee. The extent of the Charity’s potential liability is £1.

19 RELATED PARTIES

The Charity holds the lease of the Castle Hill site which is used by Genesis (Great Torrington) Limited, a company limited by guarantee, of which this company is the sole member.

13