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2021-03-31-accounts

Company number: 3336101 Charity number: 1061568

Action with Communities in Rural England Report and Financial Statements 31 March 2021

Action with Communities in Rural England

Reference and administrative details

For the year ended 31 March 2021

Status The organisation is a charitable company limited by guarantee, incorporated on 19 The organisation is a charitable company limited by guarantee, incorporated on 19
March 1997 and registered as a charity on 26 March 1997.
Governing document The company was established under a Memorandum of Association which established
the objects and powers of the charitable company and is governed under its Articles of
Association.
Company number 3336101
Charity number 1061568
Registered office and Corinium Suite, Unit 9
operational address Cirencester Office Park
Tetbury Road, Cirencester
Gloucestershire
GL7 6JJ
Honorary officers David Emerson CBE Chair
Janet Thornton Vice Chair
Dominic Driver Vice Chair
Executive Director Richard Quallington
Company Secretary Richard Quallington
Bankers Lloyds plc
14 Castle Street
Cirencester
Gloucestershire
GL 7 1QJ
Solicitors Stone King LLP
13 Queen Square
Bath
BA1 2HJ
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5thFloor, Mariner House
62 Prince Street
Bristol
BS1 4QD

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Action with Communities in Rural England

Report of the directors

For the year ended 31 March 2021

The directors present their report and the audited financial statements for the year ended 31 March 2021.

Introduction

The reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Mission, objectives and activities

ACRE’s objects are to promote any charitable purpose to improve the conditions of life of people and communities in rural areas in England and Wales . More specifically ACRE’s mission is to work with its 38 members and other key stakeholders to evidence and address need, to inform and to influence at a national level, speaking up as the voice of rural communities across England . ACRE’s beneficiaries are at the heart of all its work specifically; all people living in rural areas of England, but especially those who are at risk of isolation and disadvantage and for whom rurality brings additional challenge and cost to their daily lives.

ACRE reviews its strategic priorities, aims and objectives on a regular basis as part of the business planning cycle. In light of the Covid pandemic the business plan was rolled forward for a further year, reflecting the priorities, outcomes and ambitions for ACRE based upon previous feedback from stakeholders and an in depth analysis of need and the organisation’s wider operating environment. The review of the business plan and the member and stakeholder engagement exercise commenced towards the end of the financial year and will shape the organisations future strategy and delivery for the latter part of 2021 and beyond.

Vision

ACRE's vision is ‘ Rural Communities that are thriving, inclusive, economically active and which have the services needed to ensure equity for all residents’. This vision is underpinned by behaviours which support the following values:-

Objectives

ACRE's core objective is to promote a healthy, informed, vibrant and sustainable rural community sector that is well equipped to address local need whilst being able also to influence and benefit from, policies and initiatives at national, sub-national and local level. Specifically as the 39[th] member of the ACRE Network, ACRE’s main purpose is to:-

As the England-wide arm of The ACRE Network, ACRE also provides support for its member organisations to build their capacity in serving and responding to the needs of rural communities.

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Activities

ACRE’s day to day activities during the year were focused on eight specific strands of work namely:-

  1. Research and intelligence;

  2. Voice and influencing;

  3. Collaborating with key partners;

  4. Programme development and delivery;

  5. Supporting the ambitions of ACRE Network members;

  6. Developing Digital Solutions;

  7. Marketing and Communications;

  8. Governance, leadership and management of ACRE.

How our activities deliver public benefit

ACRE's charitable activities are to alleviate disadvantage in rural communities throughout England through its activities and achievements a sample of which are set out below.

Achievements and performance

During 2020-21, ACRE continued to develop its strategy for advocacy on behalf of its end beneficiaries in three major directions:

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ACRE supported the ACRE Network Advisers through their online platform, website and Zoom meetings. The agreement with Bates Wells Solicitors has provided legal support for halls at reduced cost.

  1. The Village Hall Improvement Grant Fund was extended until the end of December 2021 to cater for the delays to projects caused by the successive pandemic lock downs. In total the Fund has awarded 123 grants totalling £2,785,502. Over half of the grants awarded have now been drawn down.

  2. In pursuance of its role of speaking up for rural communities , ACRE continued its engagement in a wide range of national advisory and steering groups including: The Rural Housing Network; Post Office Advisory Group; End Fuel Poverty Coalition; Rural England CIC and MHCLG’s (Ministry of Housing, Communities and Local Government) Communities Partnership Board.

  3. From mid-March 2020, and throughout the year, the outbreak of coronavirus , and arrangements put in place by Government to limit its impact, started to dominate our action to advocate for rural communities. There were effectively three phases to this:-

  4. a) From March to May 2020 we sought to work with our members and DEFRA to anticipate the impact on rural communities of the pandemic and any nuance needed for rural people in what were, otherwise, national emergency measures.

  5. b) From June the focus shifted to advising and supporting rural communities on how to respond to frequent, and often hard to understand, changes to regulations and guidance, especially in relation to Village Halls.

  6. c) From October until the end of the year the focus shifted again to ensuring that Government policy towards the pandemic, especially if it were to persist through another winter, was mindful of the impact on rural communities of cycles of lockdown/release over an extended period. Our main actions included:-

    • Daily monitoring of formal Government Guidance concerning release from the lockdown that may have an impact on rural communities and especially on our information and advice to Village Halls. At crucial times a weekly update was provided to Network CEOs and a more specific and detailed one to Village Hall advisors. Changes to Village Hall Information sheets frequently had to be made on a weekly basis;

    • Representation of rural community concerns through a weekly Rural Impact Stakeholder Forum with DEFRA. We raised issues concerning Village Halls, village play areas, impacts on wider civil society, overreliance of rural areas on the dual economic pillars of agriculture and tourism and initial lack of connectivity between the Government’s ‘Test, Trace and Isolate’ policy with local, rural intelligence and public health;

    • We wrote to the DHSC in April 2020 over urban / rural differentiation in transmission rates and followed this up with a second letter concerning differentiation in release of lockdown measures . Both of these, in hindsight, looked surprisingly prophetic when the regional ‘tiers’ system was introduced in the Autumn;

    • We submitted written evidence to the Digital, Culture, Media and Sport Select Committee on Connectivity and 5G including lessons learned from coronavirus over the future role of connectivity in economic and social regeneration in rural areas;

    • We created a dedicated section on ACRE website about Covid, listing policy responses and briefings, information and advice for community groups and inspiring stories where communities have shown resilience to the pandemic.

  7. This enhanced support, information and advice for rural communities demanded increased capacity which was made possible with six months financial support from the National Lottery Community Fund. Demand for ACRE’s support services doubled during the pandemic.

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  1. The pandemic prompted new collaborative forums between voluntary sector agencies working at a national and local level to provide support to civil society’s response. We prepared a policy paper on rural civil society for these forums and provided a specific edited version of this to Danny Kruger MP for his report on support for civil society commissioned by the Prime Minister.

  2. The pandemic prompted The ACRE Network to review its future policy for supporting and regenerating rural communities through lessons learned. In May the annual ACRE Network Chief Executive event went online and started with a focus on four areas where the crisis seemed to be making people think anew about rural areas and rural communities:

  3. Food security in rural communities, especially in the light of future environmental land management programmes;

  4. Digital transformation of working practices and the threats and opportunities these could bring to rural areas;

  5. Approaches to restoring local economies that arise from people spending more time at home and rediscovering their local area;

  6. Finding the synergies between these to create a new renaissance in rural communities following CV-19.

  7. This provided the starting point for an ACRE ‘manifesto’ for rural communities; subsequently endorsed by the whole ACRE Network. This manifesto fed into our contribution to the Rural Coalition’s proposals to Government, its submission to the Comprehensive Spending Review (CSR) and our discussions with DEFRA about their asks of the Treasury for the CSR.

  8. During the year we continued to highlight rural housing issues , collecting data and evidence on the delivery of rural affordable housing sharing this with stakeholders. ACRE continued to advance the cause of rural affordable housing by providing technical support to members on rural affordable housing and planning. We supported our members and Rural Housing Enablers by providing them with information and training. Areas of activity included:-

  9. Building the evidence base for rural affordable housing through surveying Rural Affordable Housing delivery;

  10. Regular liaison with Defra and Homes England on rural housing issues;

  11. Responding to government consultations on the changes to the planning system and permitted development rights.

  12. In particular we responded in detail to the Planning White Paper . The specific issues that we highlighted in our response included:-

  13. The three proposed categories or ‘zones’: Growth, Renewal and Protected. We have deep concerns about how these might become used in rural areas;

  14. The democratic loss that could result from front ending all consultation on local plans and moving to a ‘digitally heavy’ process;

  15. The reduced scope for the proposed changes to the Infrastructure Levy to deliver affordable homes in rural areas;

  16. Potential downgrading of Neighbourhood Plans to little more than local design statements.

  17. At the close of the year the Annual Rural Proofing Report was published by Government. We worked with members of the Rural Coalition over a critique of the Report designed to pave the way for a more comprehensive 2nd annual report at the end of 2021.

  18. ACRE continued to strengthen its links with rural organisations based elsewhere in Europe. The online UK and Ireland Rural Network has been formed to continue the relationships between the five Countries. ACRE endorsed two appointments to the Board of the European Rural Communities Alliance .

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  1. ACRE was an active participant on the Arts Council Stakeholder Group and the Flood and Coastal Erosion Risk Management Stakeholder Group as well as having a place on the Plunkett Foundation’s Community Business in Places of Worship Alliance.

  2. Throughout the year ACRE prioritised the needs of its 38 members by providing support, guidance and advice and the secretariat for the ACRE Network Development Group , established to oversee collective change and development within the ACRE Network. With increased on-line working during the year we further developed the use of the digital platform Basecamp to support collaboration across the Network and established a regular fortnightly meeting of ACRE Network Chief Executives to improve communication and to promote mutual support.

  3. In January 2021, ACRE delivered the fourth national #VillageHallsWeek on the theme of village halls are survivors; the campaign was delivered online. On twitter and facebook we shared facts and information about village halls, blogs, recorded speeches and a podcast which were seen by an estimated 28k people and gained the organisation a 142 new followers. We also delivered three online events which attracted 507 registrations and generated £6k in sponsorship.

  4. During #VillageHalls Week we launched an online Domesday Book for hall committees to record the work they are doing, and their hopes for the future, as we celebrated 100 years of rural community action. By the end of March 2021, the website had attracted over 700 entries. As such it is a valuable record of the contribution village halls make to rural community life which can also be used to raise profile and for influencing purposes.

  5. In October 2020, ACRE delivered an online event attended by over 50 stakeholders summarising the results of the 2020 Village Halls Survey . The survey was completed by 2,109 halls and provided an up-to-date view of the health of halls nationally. Publicity celebrated the social and economic contribution halls make to rural communities.

  6. In August 2020, we conducted a comprehensive survey of members capturing information about the services they provide, their financial challenges, the local outcomes of their work and the impact of Covid. The survey provides insight into the commonalities between ACRE Network members and where there are material differences driven by local circumstances. Our intention is to repeat the survey each year to provide top-level tracking data on the health and the impact our members are having on rural communities.

  7. This year members continued to deliver the National Lottery Community Fund safeguarding project aimed at ensuring every village and community hall across rural England has the knowledge and confidence to provide a safe environment for all. It aspires to improve the awareness of safeguarding, extend the reach of resources, provide an insight into impact and embed good practice. Due to the Covid restrictions activity and advice had to be provided online with our members updating information on policies and procedures and delivering advice and training via online sessions. We ran a successful Village Hall safeguarding Week in November , with our members providing online sessions backed by a social media campaign.

  8. During the year we engaged with Radioactive Waste Management (RWM) in our role as a key rural stakeholder to discuss their plans for the siting of a geological disposal facility. This led us to partnering with a commercial partner ‘Ecorys’ and our members to deliver Community Investment Funding. RWM subsequently decided to take a different approach but the exercise proved invaluable in developing an ACRE Network approach to potentially challenging and contentious issues.

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  1. During the year, ACRE secured funding and support to consider and develop the ACRE Network’s digital infrastructure. Resources enabled three months engagement with members which helped to identify shared digital needs and challenges. At the end of the year ACRE was also informed that it had been successful in our application to the New Infrastructure Fund provided by the National Lottery Community Fund which will enable us to act on this insight and develop specific digital solutions with the support of a ‘Design Lab’ between 20212022. The focus of this work is to improve ACRE Network services and support to rural communities.

As the previous overview highlights, 2020-21 has been shaped by the ramifications of Covid pandemic as ACRE has adapted its delivery to remote and on-line digital working. Despite these challenges it has been a year of opportunities and some notable successes. Working with the challenges of limited staff capacity, a growing portfolio of activities and greatly increased demand for ACRE’s services has tested and also confirmed the resilience, creativity and flexibility of the highly motivated staff team and specialist associates. They have embraced new ways of working and, despite the challenges have achieved an extensive range of laudable outcomes.

Whilst ACRE benefited from emergency funding support from the National Lottery Community Fund during the year, it continued to feel the impact of central Government financial constraints and a reduction in sponsorship income due to the pandemic. This continues to set a very challenging and uncertain operating environment in England for infrastructure charities such as ACRE.

Despite this uncertainty, engagement with Government has continued to grow and the future of the Defra agreement longer term, whilst not guaranteed, looks positive. This enables both ACRE and its members to continue to plan both for the future of support to rural communities, and internal transformational change to ensure that the services and support available are more sustainable longer term beyond the current challenges occasioned by the coronavirus pandemic.

Financial review

Basis of preparation

The directors report a net reduction in resources of £1,216,139 (31 March 2020 a net gain of £2,435,275). The closing fund balances at the 31 March 2021 were £1,675,607.

The statement of financial activities (SOFA) shows that the total incoming resources for the year were £2,119,636 compared with £4,947,414 for the previous year. This substantial reduction of incoming resources on the previous year is accounted for by the receipt of the Village Hall Improvement Grant during the year end 31 March 2020; a restricted fund for onward grant payments to village halls during the financial year 2021-22.

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During the year ACRE received £1,792,182 restricted income and £327,454 unrestricted income. A list of the restricted funds is included in note 18a. All incoming resources for the year have been secured specifically to advance the charity’s strategic objectives.

Reserves policy

The directors consider that the level of unrestricted reserves should be sufficient to allow time for reorganisation in the event of a downturn in income, protect ongoing work programmes and allow ACRE to meet its legal requirements. The target level for unrestricted reserves is the equivalent of three months of the charity's general expenditure budget plus an allocation to allow for longer term liabilities and contingencies and an additional element to support ACRE’s research and development objectives and the transformational change. Directors confirm that ACRE is in compliance with the agreed reserves policy.

The directors can also designate other unrestricted funds to ensure that ACRE can continue to operate effectively, meeting its anticipated liabilities and the development needs of the wider ACRE Network as it continues to focus on enhancing outcomes for end beneficiaries.

At 31 March 2021, the total reserves were: £1,675,607
Restricted funds: £1,241,949
Designated funds: £57,000
General funds: £376,658

Principal funding sources

The majority of ACRE's funding for 2020-21 came from ‘a grant in aid’ agreement from Defra; over 95% of which was directly allocated to local organisations to deliver work at a county level. The main other source of income was derived from membership fees paid by the ACRE members. This funding was used to support ACRE's key themes of activity:

Plans for future periods

Key objectives for 2021-22

During 2021, ACRE will continue to assess the impact that government policy, in the light of coronavirus and a reopening of society, might have on its end beneficiaries in rural communities and how its own role in relation to supporting the work of members might need to evolve and change as a result, in order to maximise the sustainability of services into the longer term. ACRE will complete a review of its business plan through consultation with members and stakeholders and will bring forward a new plan to take the organisations forward beyond 2021. In delivering the business plan objectives ACRE’s role will continue to be focused on ‘ all people living in rural areas of England but especially those who are at risk of isolation and disadvantage and for whom rurality brings an additional challenge and cost to their daily lives ’. ACRE anticipates that, subject to confirmation or amendment through the consultation process, its work will continue to be driven by the following strategic priorities:-

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Funds held as custodians

Defra investment in the ACRE Network

A further year of investment to enable the ACRE Network to deliver support to rural communities within the key Defra priority themes was secured. The investment in support of rural communities through the Network amounted to £1,633,000 during the year. ACRE, as the national umbrella body of The Network, was the accountable body for these funds.

ANPAC

ACRE has held funds on behalf of the National Parks Residents Association (ANPAC) for use only as designated by them. The Association did not draw down from this fund during 2020-21.

Rural Communities Buildings Loan Fund

ACRE administers the Rural Communities Buildings Loan Fund on behalf of Defra. This fund previously known as the Village Hall Loan Fund has been in existence since the 1930s.

Rural Coalition

ACRE undertakes the secretariat for the Rural Coalition. The funds from the Rural Coalition membership were distributed as agreed by members during 2020-21 and the remnants carried forward to activity planned for 2021-22.

Village Hall Improvement Grant

ACRE administers the Village Hall Improvement Grant fund on behalf of Defra. It is anticipated that this fund will be fully utilized during 2021-22.

Structure, governance and management

Organisational structure

Action with Communities in Rural England (ACRE) is a company limited by guarantee (number 3336101) with a Board of Directors elected at general meetings by its 38 members, and in accordance with the Articles of Association adopted on 18 June 2014 and amended on 29 November 2016 and 27 November 2018.

Governance

The Board of Directors is responsible for the governance and the management of ACRE. The ACRE Board consists of not less than six but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum. The chair is elected at the AGM by the members.

All directors have an induction into the organisation and receive a Director Induction Pack. No person may normally serve as a director for more than seven consecutive years. They may then be re-elected after an interval of at least one year. Due to the exceptional circumstances occasioned by Covid, all Director terms of office were extended by a year; an extension that was endorsed by all ACRE members.

During the year all directors gave of their time voluntarily and received no benefits from the charity. Any expenses reclaimed from the charity and any instances where directors have received benefit from the charity for specific services, as permitted under clauses 4 (2) and 4 (3), are set out in note 8 to the accounts.

Management

The staffing structure at ACRE has focused on retaining capacity to support the operational and leadership requirements of the organisation; a flatter more empowering management structure remains in place as is appropriate for a small

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staff team. The Executive Director retains responsibility for operational decisions and for delivering the organisation's strategic objectives. There are currently no plans to expand the team appreciably in the foreseeable future.

Risk management

The directors are committed to a regular review of the major strategic, business and operational risks which ACRE faces, with a view to ensuring that appropriate systems and procedures are in place to minimise these risks. In particular the risk of government reducing or ceasing its funded relationship with the ACRE Network is considered carefully by the ACRE board on a regular basis during the year and mitigating actions including; identifying and exploring alternative sources of funding and developing new partnership arrangements with key stakeholders; the establishment and development of Cirican (the ACRE Network’s consultancy arm) have been investigated and continue to be pursued as part of the organisation’s ongoing plans. This and other risks to the fulfilment of ACRE’s strategic priorities are kept under constant review by the directors via the risk register which is reviewed periodically.

The COVID-19 pandemic struck at the close of the previous financial year; the impact of which has been a matter of constant review by trustees throughout the year. In particular trustees considered the possible effect that the pandemic might have on ACRE’s financial position whilst also recognising the organisation’s need to maintain existing capacity in order to continue its charitable work which was needed more than ever. As a national charity providing support to its 38 county members who, in turn, provide ongoing and intense support to rural communities it has not been possible to furlough staff as demand for support, information and advice has risen exponentially since the start of the pandemic. Trustees recognise that there has been some negative financial impact on the organisation during the year. However the confirmed ongoing grant funding from Defra and other funders, including the National Lottery Community Fund, combined with the current healthy level of unrestricted reserves provides a reasonable level of confidence and reassurance that the current financial challenges will have a limited and manageable impact on the organisation’s longer term financial position.

Register of interests

All Board members complete an annual declaration of interests in compliance with the Conflict of Interest Policy. This is updated as required during the year. Board members are required to declare any related interest in decisions at the start of all Board meetings, or thereafter if relevant topics arise.

Related parties and connected organisations

ACRE receives membership subscriptions from its 38 member Rural Community Councils. In addition, ACRE works with members on joint initiatives. During 2020-21 a total of £1,633,000 was committed to members through the Defra/ ACRE Investment Programme.

Whilst some of the directors elected are also directors or chief executives of ACRE Network members, within an ACRE context they have no influence over business transactions between members and ACRE.

Remuneration Policy

ACRE recognises that the delivery of its mission and strategic priorities is largely dependent upon the skills, knowledge and experience of its staff. It is therefore committed to ensuring that the staff are provided with appropriate remuneration to encourage and enhance performance and, in a fair and responsible manner, are rewarded for their contributions to the success of the charity. The salaries of ACRE staff are reviewed on an annual basis in the light of inflationary pressures. Directors consider this information alongside the affordability for ACRE to inform and adjust salaries and remuneration accordingly.

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Where appropriate, ACRE employs freelance contractors to undertake specific activities for the organisation. These include research, marketing, finance, governance support, relationship management and leadership. Directors ensure that whilst the associated remuneration is sufficient to attract individuals with the skills, experience and competencies required rewards are also benchmarked against sector averages for similar activity and levels of responsibility.

Grant-making policy

ACRE administers grants on behalf of other charitable trusts and government organisations that further the charity's objectives. The grant-making processes are agreed with the funders from the outset. Grants are paid on respective merits and follow transparent and rational processes.

ACRE's unrestricted funds are not used for grant-making purposes, unless by resolution by the directors. Arrangements are in place to segregate grant-making decisions ensuring conflicts of interests are avoided in the governance of ACRE.

Fund raising policy

ACRE does not engage in any direct fundraising from members of the public and does not employ fundraisers. However the directors are aware of the fundraising requirements and the code of fundraising practice and ensure that the charity is compliant with the code in all its fund raising activities.

ACRE members at 31 March 2021

Action with Communities in Cumbria Connecting Communities in Berkshire Action with Communities in Rural Kent Cornwall Rural Community Charity Action Hampshire Devon Communities Together Action in rural Sussex Dorset Community Action Bedfordshire Rural Communities Charity Durham Community Action Cambridgeshire ACRE GRCC Community Action in Gloucestershire Cheshire Community Action Humber & Wolds Rural Action Community Action Isle of Wight Northamptonshire ACRE Community Action Norfolk Rural Community Action Nottinghamshire Community Action Northumberland Rural Action Derbyshire Community Action Suffolk Rural Community Council of Essex Community Council for Somerset Rural Community Council (Leicestershire & Rutland) Community Development Action Hertfordshire Shropshire Rural Community Council Community First in Herefordshire and Worcestershire Support Staffordshire Community First Oxfordshire Surrey Community Action Community First, Wiltshire Tees Valley Rural Action Community First Yorkshire Warwickshire Rural Community Council Community Futures, Lancashire West of England Rural Network Community Impact Bucks YMCA Lincolnshire (incorporating Community Lincs)

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Statement of Directors’ responsibilities

The directors (who are also directors of Action with Communities in Rural England for the purposes of company law) are responsible for preparing the directors’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors

Directors, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Ivan Annibal Elected November 2017 Louise Beaton Elected November 2017 Charles Coates Elected November 2017 Elaine Cook Elected November 2018 Nigel Curry Elected November 2018 Sue Dovey Elected November 2018 Dominic Driver Elected November 2016 (Vice Chair) David Emerson CBE Elected November 2014 (Chair)

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Action with Communities in Rural England

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Doff Pollard Elected November 2015
Mark Shucksmith OBE Elected November 2014
Janet Thornton Appointed November 2018 (Vice Chair)
Jim Webster Appointed November 2018

Members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 March 2021 was 38 (2020 - 38). The Directors have no beneficial interest in the charitable company.

Auditors

Following a market testing exercise in 2017 Godfrey Wilson Ltd was appointed as the charitable company's auditors.

The report of the Directors has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the Directors on 8[th] July 2021 and signed on their behalf by

David Emerson

David Emerson – Chair

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Independent auditors' report

To the members of

Action with Communities in Rural England

Opinion

We have audited the financial statements of Action with Communities in Rural England (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of 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:

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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 relating 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 charity'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 information

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.

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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Independent auditors' report

To the members of

Action with Communities in Rural England

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non‐compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non‐ compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non‐ compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non‐routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

15

Independent auditors' report

To the members of

Action with Communities in Rural England

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Assessing judgements and accounting estimates for potential bias;

▪Testing transactions that are unusual or outside the normal course of business.

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. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 12 July 2021

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of: GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

16

Action with Communities in Rural England

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

For theyear ended 31 March 2021
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations and legacies 2 2,800 - 2,800 38,840 - 38,840
Charitable activities
Charitable activities 3 323,926 1,792,182 2,116,108 413,334 4,491,727 4,905,061
Services and sales 3 617 - 617 2,996 - 2,996
Investments 4 111 - 111 517 - 517
Total income 327,454 1,792,182 2,119,636 455,687 4,491,727 4,947,414
Expenditure on:
Raising funds 5 16,237 - 16,237 8,836 - 8,836
Charitable activities
Charitable activities 5 299,933 3,017,953 3,317,886 424,818 2,076,837 2,501,655
Services and sales 5 1,652 - 1,652 1,647 - 1,647
Total expenditure 317,822 3,017,953 3,335,775 435,301 2,076,837 2,512,138
Net income / (expenditure) for the year 7 9,632 (1,225,771) (1,216,139) 20,386 2,414,890 2,435,276
Transfers between funds (28,006) 28,006 - - - -
Net movement in funds (18,374) (1,197,765) (1,216,139) 20,386 2,414,890 2,435,276
Reconciliation of funds:
Total funds brought forward 452,032 2,439,714 2,891,746 431,646 24,824 456,470
Total funds carried forward 433,658 1,241,949 1,675,607 452,032 2,439,714 2,891,746

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18 to the financial statements.

17

Action with Communities in Rural England

Company no. 3336101

Balance sheet as at 31 March 2021

Note
Fixed assets:
12
13
Current assets:
14
Account for village hall improvement grant scheme
Liabilities:
15
17
18
Total unrestricted funds
General funds
Total charity funds
Mixed motive investments
Cash at bank and in hand
Tangible assets
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Unrestricted income funds:
Designated funds
Account for rural community buildings loan fund
Debtors
Restricted income funds		 £
264,703
577,790
1,216,492
466,072		 2021
£
1,398
3,000		 £
320,453
578,054
2,461,242
408,276		 2020
£
1,866
-
4,398
1,671,209		 1,866
2,889,880
2,525,057
(853,848)		 3,768,025
(878,145)
57,000
376,658		 119,063
332,969
1,675,607 2,891,746
1,241,949
433,658		 2,439,714
452,032
1,675,607 2,891,746

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

Approved by the trustees on 8 July 2021 and signed on their behalf by

David Emerson

David Emerson Chair

18

Action with Communities in Rural England

Statement of cash flows

For the year ended 31 March 2021

For theyear ended 31 March 2021 For theyear ended 31 March 2021 For theyear ended 31 March 2021
Note
£
£
20
(1,241,430)
111
(695)
(3,000)
(3,584)
(1,245,014)
3,039,296
21
1,794,282
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Purchase of investments		 £
£
2,548,094
517
-
-
517
2,548,611
490,685
3,039,296
2020
(1,245,014)
3,039,296		 2,548,611
490,685
1,794,282 3,039,296

19

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

b) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (September 2015) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The charitable company meets the definition of a public benefit entity under FRS 102.

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. The trustees have considered the impact of the COVID-19 pandemic and do not consider that it will cause a material uncertainty related to going concern. The charity has confirmed funding until 31 March 2022 and holds sufficient reserves to continue beyond the next 12 months.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

20

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

2021 2020
Cost of raising funds 3% 1%
Charitable activities 96% 98%
Services and sales 1% 1%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

21

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Mixed motive investments represent the charitable company's partner interest in Cirican LLP, which the trustees consider to have the dual objective of both financial return and furtherance of charitable objects. The investment is carried at fair value through the income and expenditure account. The LLP is an unquoted investment vehicle and a degree of judgement is required in assessing the fair value. At initial recognition the fair value is deemed to be the transaction amount. A review for impairment will be carried out annually.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

r) Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

22

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1(l) to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Income from donations and legacies
Gifts Allied Westminster
Gifts The Mrs F B Lawrence Charitable Trust
Gifts less than £1,500		 Unrestricted
£
-
-
2,800
2,800		 Restricted
£
-
-
-
-		 2021
Total
£
-
-
2,800
2,800		 2020
Total
£
12,500
2,000
24,340
38,840

All income received from gifts in the prior period was unrestricted.

23

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

3a Income from charitable activities

Income from charitable activities
Charitable Activities
Utility Aid
Network Development Group
Norris & Fisher
Interest from VHIG account
Rural communities buildings loan fund
Defra Village Hall Survey post CV-19
Big Lottery CV-19
Sub-total for Charitable Activites
Total income from charitable activities
Defra support to rural communities
Rural Coalition
Allied Westminster
Membership
Centre for Discovery
Hallmaster
Power 2 Change
Carnegie
Big Lottery Safeguarding grant
Sub-total for other charitable activity
Village Hall Improvement Grant (DEFRA)
VONNE Safeguarding
Sales; publications		 Unrestricted
£
79,000
-
20,000
-
-
2,000
2,000
2,000
-
-
-
-
-
48,926
-
-
37,000
133,000
323,926
617
617
324,543		 Restricted
£
1,633,000
1,418
-
15,000
69,500
-
-
-
5,000
310
13,435
10,000
40,498
-
421
3,600
-
-
1,792,182
-
-
1,792,182		 2021
Total
£
1,712,000
1,418
20,000
15,000
69,500
2,000
2,000
2,000
5,000
310
13,435
10,000
40,498
48,926
421
3,600
37,000
133,000
2,116,108
617
617
2,116,725

24

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

3b Income from charitable activities (prior year)

Income from charitable activities (prior year)
Charitable Activities
Utility Aid
Rural communities buildings loan fund
National Touring Rural Arts
Allied Westminster
Conferences
Hallmaster
Power 2 Change
Staff fees(Yorks media)
Village Hall Improvement Grant (DEFRA)
Interest from VHIG account
Scheme to assist Village Halls with improvement work
Defra support to rural communities
NCVO Safeguarding phase one
Plunkett Frontline Advisory Group
Rural Coalition
European Rural Parliament
Membership
Sales; publications
Sub-total for charitable activities
Total income from charitable activities
Big Lottery Safeguarding grant		 Unrestricted
£
79,000
5,300
20,000
100
2,000
43,993
9,838
24,266
-
-
833
-
90,845
-
-
4,159
133,000
413,334
1,020
1,976
416,330		 Restricted
£
1,633,000
-
-
-
-
-
-
-
300
13,435
-
14,484
2,823,535
973
6,000
-
-
4,491,727
-
-
4,491,727		 2020
Total
£
1,712,000
5,300
20,000
100
2,000
43,993
9,838
24,266
300
13,435
833
14,484
2,914,380
973
6,000
4,159
133,000
4,905,061
1,020
1,976
4,908,057
Income from investments
Interest received Unrestricted
£
111
111		 £
-
-
Restricted		 2021
Total
£
111
111		 2020
Total
£
517
517

All income received from investments in the prior period was unrestricted.

25

Action with Communities in Rural England

Notes to the financial statements For the year ended 31 March 2021

5 Analysis of expenditure (current year)

Staff costs (Note 8)
Direct costs
Defra Grant to ACRE Network
Hallmaster commissions
Village Hall Improvement Grants
Rural Coalition expenditure
Overheads
Support costs
Governance costs
Total expenditure 2021		 Cost of
raising
funds
£
6,409
5,807
-
-
-
-
1,201		 Charitable activities Charitable activities Governance
costs
£
23,807
14,058
-
-
-
-
1,236		 Support
costs
£
38,017
10,029
-
-
-
-
4,658		 2021 Total
£
227,355
217,914
1,633,000
310
1,216,209
5,455
35,531
Charitable
activities
£
158,166
187,764
1,633,000
310
1,216,209
5,455
28,436		 Services and
sales
£
956
256
-
-
-
-
-
13,417
1,481
1,339		 3,229,340
45,484
43,062		 1,212
221
219		 39,101
5,518
(44,620)		 52,704
(52,704)
-		 3,335,775
-
-
16,237 3,317,886 1,652 - - 3,335,775

Of the total expenditure, £317,822 was unrestricted (2020: £435,301) and £3,017,953 was restricted (2020: £2,076,837).

5 Analysis of expenditure (prior year)

Staff costs (Note 8)
Direct costs
Defra Grant to ACRE Network
Hallmaster commissions
Village Hall Improvement Grants
Rural Coalition expenditure
Overheads
Support costs
Governance costs
Total expenditure 2020		 Cost of
raising
funds
£
5,143
419
-
-
-
-
815		 Charitable
activities
£
146,434
214,655
1,633,000
300
392,228
3,685
27,923		 Services and
sales
Governance
costs
£
£
956
18,623
256
19,530
-
-
-
-
-
-
-
-
4
469
1,216
38,622
215
4,250
216
(42,872)
1,647
-
Charitable activities		 Services and
sales
Governance
costs
£
£
956
18,623
256
19,530
-
-
-
-
-
-
-
-
4
469
1,216
38,622
215
4,250
216
(42,872)
1,647
-
Charitable activities		 Support
costs
£
37,913
8,169
-
-
-
-
1,616		 2020 Total
£
209,069
243,029
1,633,000
300
392,228
3,685
30,827
6,377
1,173
1,286		 2,418,225
42,060
41,369		 1,216
215
216		 38,622
4,250
(42,872)		 47,698
(47,698)
-		 2,512,138
-
-
8,836 2,501,655 1,647 - - 2,512,138

26

Action with Communities in Rural England

Notes to the financial statements For the year ended 31 March 2021

Grant making to institutions
Village Hall Improvement Grants
Power to Change Village Hall Survey
At the end of the year
Cost
Allocation of Defra Grant		 2021
£
1,633,000
1,180,917
-		 2020
£
1,633,000
392,228
22,800
2,813,917 2,048,028

The grant from DEFRA is distributed through ACRE to its 38 members. Please see note 10 for a full breakdown of grants paid.

7 Net income / (expenditure) for the year This is stated after charging / (crediting):

Net income / (expenditure) for the year
This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 1,163 1,066
Operating lease rentals:
Property 23,520 19,600
Other 1,160 1,156
Auditors' remuneration (excluding VAT):
Audit 4,550 4,400

Staff costs were as follows:

Staff costs were as follows:
Social security costs
Other staff costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes		 2021
£
118,704
12,122
8,903
87,627		 2020
£
103,000
10,646
7,725
87,698
227,355 209,069

No employee earned more than £60,000 during the year (2020: nil).

There were no employee benefits including pension contributions paid to key management and finance personnel during the year as the individuals concerned were self employed. The key management and finance personnel costs totalled £86,887 (2020: £79,738)

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). Louise Beaton, a charity trustee, received £22,208 for consultancy services and related travel costs were reimbursed (2020 £3,935).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £673 (2020: £7,076) incurred by 12 (2020: 12) members relating to attendance at meetings of the trustees.

27

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

The average number of employees (head count based on number of staff employed) during the year was as follows:

Governance
Charitable activies
Raising funds		 2021
No.
0.1
3.7
0.1		 2020
No.
0.1
2.8
0.1
3.9 3.0

10 Related party transactions

During the year, there were related party transactions in the form of DEFRA grants made to members. Details of these grants are as follows:

Details of these grants are as follows:
Action Hampshire
Action in rural Sussex
Action with Communities in Cumbria
Action with Communities in Rural Kent
Bedfordshire Rural Communities Charity
Cambridgeshire ACRE
Cheshire Community Action
Connecting Communities in Berkshire
Community Action Isle of Wight
Community Action Norfolk
Community Action Northumberland
Community Action Suffolk
Community Council for Somerset
Community Development Action Hertfordshire
Community First in Herefordshire and Worcestershire
Community First Oxfordshire
Community First, Wiltshire
Community First Yorkshire
Community Futures, Lancashire
Community Impact Bucks
Community Lincs part of Lincolnshire YMCA Ltd
Cornwall Rural Community Charity
Devon Communities Together
Dorset Community Action
Durham Community Action
GRCC Community Action in Gloucestershire
Humber & Wolds Rural Action
Northamptonshire ACRE
Rural Action Derbyshire
Rural Community Action Nottinghamshire
Rural Community Council (Leicestershire & Rutland)
Rural Community Council of Essex
Shropshire Rural Community Council
Support Staffordshire
Surrey Community Action
Tees Valley Rural Action
WRCC (Warwickshire Rural Community Council)
West of England Rural Network		 2021
£
44,675
47,395
49,265
49,530
35,840
44,180
39,500
34,840
33,840
50,995
42,405
45,310
44,060
38,065
43,930
39,640
41,095
69,720
44,240
39,000
49,030
45,670
53,145
41,255
42,585
39,220
41,965
40,280
44,200
40,580
41,200
46,875
40,135
42,405
38,735
34,235
37,635
36,325		 2020
£
44,675
47,395
49,265
49,530
35,840
44,180
39,500
34,840
33,840
50,995
42,405
45,310
44,060
38,065
43,930
39,640
41,095
69,720
44,240
39,000
49,030
45,670
53,145
41,255
42,585
39,220
41,965
40,280
44,200
40,580
41,200
46,875
40,135
42,405
38,735
34,235
37,635
36,325
1,633,000 1,633,000

28

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

e year ended 31 March 2021
Big Lottery Safeguarding
Action Hampshire
Action in rural Sussex
Action with Communities in Cumbria
Action with Communities in Rural Kent
Bedfordshire Rural Communities Charity
Cambridgeshire ACRE
Cheshire Community Action
Connecting Communities in Berkshire
Community Action Isle of Wight
Community Action Norfolk
Community Action Northumberland
Community Action Suffolk
Community Council for Somerset
Community Development Action Hertfordshire
Community First in Herefordshire and Worcestershire
Community First Oxfordshire
Community First, Wiltshire
Community First Yorkshire
Community Futures, Lancashire
Community Impact Bucks
Community Lincs part of Lincolnshire YMCA Ltd
Cornwall Rural Community Charity
Devon Communities Together
Dorset Community Action
Durham Community Action
GRCC Community Action in Gloucestershire
Humber & Wolds Rural Action
Northamptonshire ACRE
Rural Action Derbyshire
Rural Community Action Nottinghamshire
Rural Community Council (Leicestershire & Rutland)
Rural Community Council of Essex
Shropshire Rural Community Council
Support Staffordshire
Surrey Community Action
Tees Valley Rural Action
WRCC (Warwickshire Rural Community Council)
West of England Rural Network		 2021
£
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,500
1,000
1,000
1,000
1,000
1,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,500
1,000
1,500
1,500
1,000
1,000
1,500
1,000
1,000
1,000
1,000		 2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,000 -

29

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

e year ended 31 March 2021
National Village Hall Survey grants to network members
Action Hampshire
Action in rural Sussex
Action with Communities in Cumbria
Action with Communities in Rural Kent
Bedfordshire Rural Communities Charity
Cambridgeshire ACRE
Cheshire Community Action
Connecting Communities in Berkshire
Community Action Isle of Wight
Community Action Norfolk
Community Action Northumberland
Community Action Suffolk
Community Council for Somerset
Community Development Action Hertfordshire
Community First in Herefordshire and Worcestershire
Community First Oxfordshire
Community First, Wiltshire
Community First Yorkshire
Community Futures, Lancashire
Community Impact Bucks
Community Lincs part of Lincolnshire YMCA Ltd
Cornwall Rural Community Charity
Devon Communities Together
Dorset Community Action
Durham Community Action
GRCC Community Action in Gloucestershire
Humber & Wolds Rural Action
Northamptonshire ACRE
Rural Action Derbyshire
Rural Community Action Nottinghamshire
Rural Community Council (Leicestershire & Rutland)
Rural Community Council of Essex
Shropshire Rural Community Council
Support Staffordshire
Surrey Community Action
Tees Valley Rural Action
WRCC (Warwickshire Rural Community Council)
West of England Rural Network		 2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2020
£
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
- 22,800

30

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

e year ended 31 March 2021
Village Hall Improvement grants paid to external organisations 2021 2020
£ £
2nd Brewood Scout Group - 13,196
Admaston House CC - 38,354
Aighton Bailey & Chaigley War Memorial Hall - 14,960
Bollington Community Centre - 17,189
Brewham Village Hall - 10,542
Blewbury Hall - 23,502
Cliviger Village Hall - 12,489
East Rushton Village Hall - 13,232
Folksworth Village Hall - 33,177
Holton-Le-Clay Mlt-Prps - 12,872
Huntsworth Village Hall 5,450 5,460
Kirby-in-Furness Village Hall - 25,000
Lowsonford & District VH - 10,585
Marston St Lawrence Village Hall (969) 20,837
Middleton & Todrige Village Hall - 14,050
Taynton & Tibberton Village Hall - 11,238
Trent Memorial Hall - 20,546
Westleton Village Hall - 75,000
Wren Village Hall - 20,000
Arlingham Victory Hall 51,123 -
Ashwell Village Hall 46,000 -
Barsham & Shipmeadow Village Hall 10,275 -
Barton Bendish Village Hall 46,681 -
Beckbury Village Hall 23,222 -
Bishops Wood Village Hall 10,000 -
Blindcrake Village Hall 17,500 -
Borrowdale Institute 50,835 -
Braishfield Village Hall 10,000 -
Bramhope (Robert Craven Memorial Hall) 16,101 -
Broadwas Village Hall 15,000 -
Brockley Village Hall 15,000 -
Burwash Village Hall 10,000 -
Clara Vale Village Hall Association 10,063 -
Clifford Village Hall 32,094 -
Combe Community Hub 20,847 -
Copsale Village Hall 38,189 -
Crookham Village Hall 21,000 -
Dipton Jubilee Centre 27,462 -
Easterton Village Hall 10,769 -
Eastleach Village Hall 11,498 -
Edstaton Village Hall 15,719 -
Ellerdine Village Hall 13,427 -
Felmington Village Hall 12,622 -
Frosterley Village Hall 13,006 -
Granborough Village Hall 12,322 -
Great Brickhall Village Hall 35,000 -
Grindon Parish Hall 24,488 -
Hanworth Memorial Hall 18,582 -
Henfield Village Hall 10,000 -
Hepple Village Hall 13,420 -
Hewish & Puxton Village Hall Ltd 16,300 -
Hunsonby Community Centre 47,745 -
Keekle Village Hall 10,666 -
Kingsley Community Association 15,000 -
Kirkby-in-Furness Village Hall 9,776 -
Lamorna Village Hall 11,176 -
Linton Village Hall 10,000 -
Marnhull Village Hall 21,838 -
Menheniot Old School Trust 10,963 -
Murcott & Fencott Village Hall 10,245 -
Netherwitton Village Hall 13,258 -

31

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

Village Hall Improvement grants paid to external organisations (continued)

Village Hall Improvement grants paid to external organisations (continued)
Oakhanger Village Hall
Owermoigne Village Hall
Pannal Memorial Hall
Port Isaac Village Hall
Ridgewell Village Hall
The Erskine Centre
The Hive Community Centre
The Old Chapel
Three Parishes Hall
Thursley Village Hall
Willington Peace Memorial Hall
Wolverley Memorial Hall
Woolacombe Village Hall		 27,000
10,687
75,000
13,746
75,000
12,321
10,356
20,016
20,000
14,858
10,000
14,049
34,190		 -
-
-
-
-
-
-
-
-
-
-
-
-
1,180,917 392,228

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

11 Taxation The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

12
Tangible fixed assets
13
Charge for the year
Depreciation
At the start of the year
At the end of the year
At the end of the year
Net book value
Mixed motive investments
Additions in year
At the start of the year
Cost or valuation
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.		 Computer
equipment
£
5,441
695		 Total
£
5,441
695
6,136 6,136
3,575
1,163		 3,575
1,163
4,738 4,738
1,398 1,398
1,866 1,866

Investment in Cirican LLP

2021 2020
£ £
3,000 -

During 2020, ACRE made an investment of £3,000 into Cirican LLP. The objective of Cirican is to enable ACRE and those members who are involved in Cirican to tender for larger national research contracts that play to the members' skills and experience, for both financial return and furtherance of charitable purposes.

32

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021
14
Amounts due after more than one year included in:
Loans to rural community buildings under loan scheme
15
Village Hall Improvement Grant drawdown confirmed
15a
Rural community buildings loan fund
Rural community building loan fund administered by ACRE on behalf of Defra:
Funds advanced by Defra at 1 April 2020
Loans to rural community buildings:
Outstanding at 1 April 2020
Made during year
Repayments during year
Outstanding loans at March 2021 (note 14)
16
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year
Income deferred to 2021-22
Village Hall Advisors training event November 2021
Tradestands income received for Village Hall Advisors training event November 2021
Village Hall Improvement grant management to Dec 2021
Big Lottery Digital
Bank deposit on hand at 31 March 2021
Deferred income comprises:
Deferred income
Other creditors
Trade creditors
Taxation and social security
Prepayments
Debtors
Other debtors
Deferred income (note 16)
Rural community buildings loan fund (Note 15a)
Loans to rural community buildings under loan scheme (Note 14a)
Creditors: amounts falling due within one year		 2021
£
233,928
24,100
6,675		 2020
£
291,724
18,584
10,146
264,703 320,454
174,687 213,169
2021
£
700,000
27,133
21,803
11,718
-
93,194		 2020
£
700,000
13,217
19,408
24,605
28,962
91,953
853,848 878,145
2021
£
700,000		 2020
£
700,000
291,724
31,000
(88,796)		 477,117
61,940
(247,333)
233,928 291,724
466,072 408,276
2021
£
91,953
(48,926)
50,167		 2020
£
10,838
(10,838)
91,953
93,194 91,953
6,000
500
36,694
50,000		 6,000
333
85,620
-
93,194 91,953

33

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021 For the year ended 31 March 2021
17a
17b
18a
At 1 April
2020
£
-
7,586
-
11,251
122
Defra Village Hall survey post CV-19
-
Hallmaster
-
2,787
2,432,280
Power to Change Village Hall Survey
(22,764)
471
Centre for Discovery
-
7,981
Total restricted funds
2,439,714
22,063
50,000
Supporting ACRE Network members
20,000
27,000
Total designated funds
119,063
General funds
332,969
452,032
2,891,746
Big Lottery Safeguarding grant
ACRE Network Development Fund
ACRE Network Service Review Delivery
Total unrestricted funds
Analysis of net assets between funds (current year)
Village Hall Improvement Grants
Designated funds:
Defra rural communities
Big Lottery CV-19
National Parks Residents Association
LACE UP (Sport England)
Rural Coalition
Tangible fixed assets
Net current assets
Carnegie
National Village Halls transfer
Movements in funds (current year)
Total funds
Net current assets
Net assets at 31 March 2020
Analysis of net assets between funds (prior year)
LLP Consultancy (Cirican)
Unrestricted funds:
Tangible fixed assets
Net assets at 31 March 2021
Restricted funds:
Mixed motive investments		 General
unrestricted
£
1,398
3,000
372,260		 Designated
£
-
-
57,000		 Restricted
£
-
-
1,241,949		 Total funds
£
1,398
3,000
1,671,209
376,658 57,000 1,241,949 1,675,607
General
unrestricted
£
1,866
331,103		 Designated
£
-
119,063		 Restricted
£
-
2,439,714		 Total funds
£
1,866
2,889,880
332,969 119,063 2,439,714 2,891,746
Income &
gains
£
10,000
-
69,500
41,916
1,633,000
15,000
310
-
421
13,435
-
5,000
3,600		 Expenditure &
losses
£
(12,111)
-
(73,954)
(53,201)
(1,633,000)
(6,600)
(310)
-
(1,216,209)
(12,112)
-
(5,000)
(5,456)		 Transfers
£
2,111
-
4,454
-
-
-
-
-
-
21,441
-
-
-		 At 31 March
2021
£
-
7,586
-
(34)
122
8,400
-
2,787
1,216,492
-
471
-
6,125
2,439,714 1,792,182 (3,017,953) 28,006 1,241,949
22,063
50,000
20,000
27,000		 -
-
-
6,000		 -
(2,000)
-
-		 (22,063)
(44,000)
-
-		 -
4,000
20,000
33,000
119,063 6,000 (2,000) (66,063) 57,000
332,969 321,454 (315,822) 38,057 376,658
452,032 327,454 (317,822) (28,006) 433,658
2,891,746 2,119,636 (3,335,775) - 1,675,607

34

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

18b Movements in funds (prior year)

Hallmaster
Power to Change Village Hall Survey
Total restricted funds
Supporting ACRE Network members
Total designated funds
General funds
Designated funds:
LLP Consultancy (Cirican)
National Parks Residents Association
Total funds
Village Hall Improvement Grants
Big Lottery Safeguarding grant
Defra rural communities
Rural Coalition
ACRE Network Development Fund
LACE UP (Sport England)
Total unrestricted funds
Unrestricted funds:
Policy and Advocacy
ACRE Network Service Review Delivery
Nationwide Foundation
Restricted funds:
National Village Halls transfer		 At 1 April
2019
£
5,611
10,167
-
122
-
2,787
-
-
471
5,666		 Income &
gains
£
-
-
14,484
1,633,000
300
-
2,824,508
13,435
-
6,000		 Expenditure &
losses
£
(5,611)
(2,581)
(3,233)
(1,633,000)
(300)
-
(392,228)
(36,199)
-
(3,685)		 Transfers
£
-
-
-
-
-
-
-
-
-
-		 At 31 March
2020
£
-
7,586
11,251
122
-
2,787
2,432,280
(22,764)
471
7,981
24,824 4,491,727 (2,076,837) - 2,439,714
15,735
-
-
-
-		 24,320
30,000
50,000
20,000
30,000		 (2,387)
(45,605)
-
-
(3,000)		 (15,605)
15,605
-
-
-		 22,063
-
50,000
20,000
27,000
15,735 154,320 (50,992) - 119,063
415,911 301,367 (384,309) - 332,969
431,646 455,687 (435,301) - 452,032
456,470 4,947,414 (2,512,138) - 2,891,746

Movements in funds (narrative)

Purposes of restricted funds

Carnegie

This grant has been provided to support the Centenary of the Rural Community Council Movement via events and two publications. The funding will be fully utilised during 2021-22.

LACE UP (Sport England)

This project has been completed and it is intended that the remnants of the management fee will be utilised in providing ongoing support and promotion of physical activity in village halls as the sector reopens post covid.

Defra rural communities support

The investment delivers support to the end beneficiaries of the ACRE Network, ensuring that rural communities have the technical support and advice needed to survive and thrive. The grant is distributed through ACRE to its 38 members, full details are available on the ACRE website.

Defra Village Hall survey

This time limited project involves surveying village and community halls to ascertain the impact of Covid on their sustainability and their future support needs.

National Parks Residents Association (ANPAC)

ACRE holds funds on behalf of the National Parks Residents Association for use only as designated by the Association.

35

Action with Communities in Rural England Notes to the financial statements

For the year ended 31 March 2021

Hallmaster

Hallmaster Limited (software provider for booking halls) pay £10 to ACRE for every sale given to a village hall or similar rural community building as recommended by the Network member. This is paid annually to ACRE and distributed to the relevant Network members annually.

National Village Halls Transfer

The National Village Halls Forum closed and a decision was taken to pay funds remaining in the bank account to ACRE for hosting and support work undertaken by the new Village and Community Halls Network. It is intended that this resource will be utilised during 2021-22.

Rural Coalition

ACRE undertakes the secretariat for the Rural Coalition. The funds from the membership were distributed as agreed by members during 2020-21 and the remainder carried forward for activity planned in 21-22.

Big Lottery Safeguarding grant

The National Lottery Community Fund is providing funds for a project that will improve awareness of safeguarding. ACRE will use the 38 ACRE members’ contacts and reach into rural communities to signpost and share resources.

Village Hall Improvement Grants

The Village Hall Improvement Grant Fund provides grants of between £10,000 and £75,000 for refurbishment, renovation and extension of village halls and similar rural community buildings. A total of £2,785,502 has been offered to 123 Village halls as at 31 March 2021, with approximately £926,000 of the offers not yet drawn down. This year project has been extended, due to COVID-19, and should be concluded during 2021-22.

Power to Change Village Hall Survey

Power to Change funded 50% of the costs of carrying out the 2020 National Survey of Village & Community Halls.

Big Lottery COVID-19

ACRE received Emergency Covid-19 funding to underpin and safeguard its work for a six month period to support rural communities and the ACRE Network during the pandemic. The grant enabled ACRE to respond to the increase demand for its services in respect of Government liaison over COVID-19; provide additional advice and support to ACRE members; ramp up the direct information and advice to rural communities, especially in relation to the closure and re-opening of community owned buildings and the attendant frequent regulatory changes; input into national guidance in respect of community owned and managed assets and engage in joint working with other national partners.

Purpose of designated funds

ACRE Network Development Fund

The ACRE Network Devolopment Fund was established by the Board to support the delivery of ACRE Network Development Plan. This fund was fully utilised during 2020-21.

ACRE Network Service Review Delivery

The ACRE Board designated funds to support the research, review and modernisation of its services.

Supporting ACRE Network members

The ACRE Board designated funds to support a strategic review of ACRE member services in order to identify the best and most sustainable way of safeguarding such services for end beneficiaries in the future.

LLP Consultancy (Cirican)

The ACRE Board designated funds to underpinned ‘Cirican’ the ACRE Network Consultancy vehicle, established to capitalise on members’ extensive experience and understanding of rural issues, and to generate an income stream to advance ACRE's charitable aim of supporting rural communities. These disignated funds were released in February 2021 as the board concluded that the designation was no longer required.

36

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

19 Government grants

The charitable company received government grants during the year, defined as funding from the Department for Environment, Food & Rural Affairs (DEFRA) to fund charitable activities. The total value of these grants is shown below. There were no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.

There were no unfulfilled conditions or contingencies attac hing to these g rants in the cur rent or prior yea r.
Defra support to rural communities
European Rural Parliament
Total
Defra village hall improvement grant		 Unrestricted
£
-
79,000
-		 £
-
1,633,000
-
Restricted		 2021
Total
£
-
1,712,000
-		 2020
Total
£
2,914,380
1,712,000
4,159
79,000 1,633,000 1,712,000 4,630,539
Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends, interest and rent from investments
(Increase)/decrease in debtors
(Increase)/decrease in loan fund cash
Increase/(decrease) in creditors
Net cash provided by / (used in) operating activities		 2021
£
(1,216,136)
1,163
(111)
55,747
(57,796)
(24,297)		 2020
£
2,435,276
1,066
(517)
184,491
(185,393)
113,171
(1,241,430) 2,548,094

21 Analysis of changes in net debt

Analysis of changes in net debt
Cash at bank and in hand
Account for village hall improvement grant scheme
Total		 At 1 April
2020
£
578,054
2,461,242		 Cash flows
£
(264)
(1,244,750)		 At 31 March
2021
£
577,790
1,216,492
3,039,296 (1,245,014) 1,794,282

22 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

the following periods
One to five years
Less than one year		 2021
2020
£
£
3,940
19,600
-
-
3,940
19,600
Property		 2021
2020
£
£
1,156
1,156
-
1,156
1,156
2,312
Equipment
3,940 19,600 1,156 2,312

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

37

Action with Communities in Rural England

Notes to the financial statements

For the year ended 31 March 2021

24 Related Party Transactions

Related party transactions made with trustees are detailed in note 8. Related party transactions in the form of grants paid to members are detailed in note 10. Cirican LLP is a commerical research partnership of which ACRE is a member. ACRE has paid legal fees of £3,000 to help set up the partnership. There were no balances outstanding at year end.

25 Contingent liability

The charity has offered a number of grants to village halls at 31 March 2021 which have not yet been drawn down. These grants are considered probable but have not been recognised in the accounts as it has not been possible to accurately measure their value as these are dependant on the level of funds raised by the village halls at draw down. However, the total value of grants offered but not yet drawn down is estimated be approximately £926,000.

38