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:- 

- Responsive – responding and listening to the needs of members and beneficiaries; 

- Innovative – testing and developing new approaches; 

- Collaborative – working with others to achieve results for our members and beneficiaries; 

- Empowering – enabling members and rural communities to take action; 

- Solution focused – achieving results that make a difference. 

## **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:- 

- Gather evidence and conduct research to improve the outcomes for rural communities; 

- Articulate a voice for rural communities at the national level; 

- Influence decisions that impact on rural communities; 

- Deliver programmes and engage in activities which directly improve the lives of ACRE’s end beneficiaries and which increase the resilience of rural communities. 

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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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

## **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: 

- Securing ongoing recognition of the value delivered by the ACRE Investment agreement with the Department for Environment, Food and Rural Affairs (Defra) by ensuring effective delivery and by highlighting impact; 

- Positioning ACRE members as primary agents of change in rural communities in the implementation of localism and other Government policies; 

- Capitalising on the ACRE Network's reach into rural communities and its expertise in ensuring rural communities and particularly those most disadvantaged by rurality benefit from national policy initiatives. 

1. In addition to overseeing the delivery of the **ACRE Network Agreement with Defra** which enables ACRE’s 38 members to focus practical support on rural communities across rural England, ACRE worked hard to secure a rollover of the funded arrangement for a further year pending the outcome of the next comprehensive spending review by Government.  A continuation at the same level of funding was agreed at the end of the financial year thus enabling ACRE members to support end beneficiaries and rural communities for a further year. 

2. ACRE continued to improve the **monitoring and evidence** gathering that supports and underpins the ACRE Network Agreement with Defra.  With enhanced reporting, the continuing development of a bank of case studies and examples of best practice to evidence impact, ACRE has been able to demonstrate more clearly to Defra the value of the Agreement. Throughout the year, and especially in light of the impact of the pandemic on rural communities, ACRE has continued to develop closer links with the Defra team to ensure that grass roots intelligence from the ACRE Network is used to inform decision making within Defra and other Government departments. 

3. ACRE administers the **Rural Community Buildings Loan Fund** of £700,000 on behalf of Defra, which provides financial support to village hall management committees to improve facilities for their communities. During 2020/21, 39 loans were live during the year, 7 new loans were offered totalling £148,185 and 2 paid out to a value of £31,000.  The total value of the loans outstanding at the end of the year was £233,928. 

4. ACRE’s **Village Hall Information and Advice Service** provided support for ACRE members during the year.  The support service was dominated by the demand for advice and information for halls under COVID-19 Regulations. 

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**Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

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. 

5. 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. 

6. 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. 

7. 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:- 

   - 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. 

   - 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. 

   - 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. 

8. 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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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

9. 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. 

10. 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: 

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

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

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

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

11. 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. 

12. 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:- 

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

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

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

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

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

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

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

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

14. 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. 

15. 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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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

16. 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.** 

17. 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. 

18. 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. 

19. 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. 

20. 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. 

21. 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. 

22. 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. 

23. 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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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

24. 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 financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities. 

- Incoming resources are recognised once the charity has entitlement to the resources, it is certain the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability. 

- Resources expended – liabilities are recognised as resources expended 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. 

- Grants payable are payments made to third parties in furtherance of the charitable objectives of the charity. 

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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**Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

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:- 

- Improve service delivery and to ensure the sustainability of existing and new products and services; 

- Strengthen and broaden key relationships at the national level and diversify income streams; 

- Maximise and facilitate the strategic use of the ACRE Network information and intelligence; 

- Support and progress ACRE Network ambitions providing transparency in terms of ACRE’s contribution. 

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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

## **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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**Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

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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**Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

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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## **Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

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: 

- there is no relevant audit information of which the charitable company’s auditors are unaware; and 

- the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

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) 

12 



**Action with Communities in Rural England** 

## **Report of the directors** 

## **For the year ended 31 March 2021** 

|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 

13 



**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: 

- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the 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: 

- the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ report have been prepared in accordance with applicable legal requirements. 

14 



**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: 

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; 

- the financial statements are not in agreement with the accounting records and returns; 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not obtained all the information and explanations necessary for the purposes of our audit. 

## **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: 

- Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non‐ compliance; 

- Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and 

- Designing and implementing internal controls to mitigate the risk of non‐compliance with laws and regulations, including fraud. 

(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; 

- ▪Reviewing related party transactions; and 

▪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<br>Fixed assets:<br>12<br>13<br>Current assets:<br>14<br>Account for village hall improvement grant scheme<br>Liabilities:<br>15<br>17<br>18<br>Total unrestricted funds<br>General funds<br>Total charity funds<br>Mixed motive investments<br>Cash at bank and in hand<br>Tangible assets<br>The funds of the charity:<br>Creditors: amounts falling due within one year<br>Net current assets<br>Total net assets<br>Unrestricted income funds:<br>Designated funds<br>Account for rural community buildings loan fund<br>Debtors<br>Restricted income funds|£<br>264,703<br>577,790<br>1,216,492<br>466,072|2021<br>£<br>1,398<br>3,000|£<br>320,453<br>578,054<br>2,461,242<br>408,276|2020<br>£<br>1,866<br>-|
|---|---|---|---|---|
|||4,398<br>1,671,209||1,866<br>2,889,880|
||2,525,057<br>(853,848)||3,768,025<br>(878,145)||
||57,000<br>376,658||119,063<br>332,969||
|||1,675,607||2,891,746|
|||1,241,949<br>433,658||2,439,714<br>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<br>£<br>£<br>20<br>(1,241,430)<br>111<br>(695)<br>(3,000)<br>(3,584)<br>(1,245,014)<br>3,039,296<br>21<br>1,794,282<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year<br>Change in cash and cash equivalents in the year<br>2021<br>Cash flows from operating activities<br>Net cash provided by / (used in) investing activities<br>Net cash provided by / (used in) operating activities<br>Cash flows from investing activities:<br>Dividends, interest and rents from investments<br>Purchase of fixed assets<br>Purchase of investments|||£<br>£<br>2,548,094<br>517<br>-<br>-<br>517<br>2,548,611<br>490,685<br>3,039,296<br>2020||
||||||
|||(1,245,014)<br>3,039,296||2,548,611<br>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 

- 1 Accounting policies 

- a) Statutory information Action with Communities in Rural England is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is as stated in the Trustees' Annual Report. 

## 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. 

- c) Public benefit entity 

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

- d) Going concern 

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. 

- e) Income 

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. 

- f) Donations of gifts, services and facilities Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution. 

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 

- 1 Accounting policies (continued) 

- g) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

- h) Fund accounting 

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. 

- i) Expenditure and irrecoverable VAT 

   - Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: 

   - Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. 

   - Expenditure on charitable activities includes the costs of undertaken to further the purposes of the charity and their associated support costs. 

   - Other expenditure represents those items not falling into any other heading 

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 

- 1 Accounting policies (continued) 

- l) Tangible fixed assets 

   - Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. 

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: 

- Fixtures and fittings 

   - 3 years straight line basis 

- m) Mixed motive investments 

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. 

- n) Debtors 

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. 

- o) Cash at bank and in hand 

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. 

- p) Creditors and provisions 

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. 

- q) Financial instruments 

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 

- 1 Accounting policies (continued) 

- s) Accounting estimates and key judgements 

   - In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

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. 

- 2 Income from donations and legacies 

|Income from donations and legacies|||||
|---|---|---|---|---|
|Gifts Allied Westminster<br>Gifts The Mrs F B Lawrence Charitable Trust<br>Gifts less than £1,500|Unrestricted<br>£<br>-<br>-<br>2,800<br>2,800|Restricted<br>£<br>-<br>-<br>-<br>-|2021<br>Total<br>£<br>-<br>-<br>2,800<br>2,800|2020<br>Total<br>£<br>12,500<br>2,000<br>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<br>Utility Aid<br>Network Development Group<br>Norris & Fisher<br>Interest from VHIG account<br>Rural communities buildings loan fund<br>Defra Village Hall Survey post CV-19<br>Big Lottery CV-19<br>Sub-total for Charitable Activites<br>Total income from charitable activities<br>Defra support to rural communities<br>Rural Coalition<br>Allied Westminster<br>Membership<br>Centre for Discovery<br>Hallmaster<br>Power 2 Change<br>Carnegie<br>Big Lottery Safeguarding grant<br>Sub-total for other charitable activity<br>Village Hall Improvement Grant (DEFRA)<br>VONNE Safeguarding<br>Sales; publications|Unrestricted<br>£<br>79,000<br>-<br>20,000<br>-<br>-<br>2,000<br>2,000<br>2,000<br>-<br>-<br>-<br>-<br>-<br>48,926<br>-<br>-<br>37,000<br>133,000<br>323,926<br>617<br>617<br>324,543|Restricted<br>£<br>1,633,000<br>1,418<br>-<br>15,000<br>69,500<br>-<br>-<br>-<br>5,000<br>310<br>13,435<br>10,000<br>40,498<br>-<br>421<br>3,600<br>-<br>-<br>1,792,182<br>-<br>-<br>1,792,182|2021<br>Total<br>£<br>1,712,000<br>1,418<br>20,000<br>15,000<br>69,500<br>2,000<br>2,000<br>2,000<br>5,000<br>310<br>13,435<br>10,000<br>40,498<br>48,926<br>421<br>3,600<br>37,000<br>133,000|
||||2,116,108<br>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<br>Utility Aid<br>Rural communities buildings loan fund<br>National Touring Rural Arts<br>Allied Westminster<br>Conferences<br>Hallmaster<br>Power 2 Change<br>Staff fees(Yorks media)<br>Village Hall Improvement Grant (DEFRA)<br>Interest from VHIG account<br>Scheme to assist Village Halls with improvement work<br>Defra support to rural communities<br>NCVO Safeguarding phase one<br>Plunkett Frontline Advisory Group<br>Rural Coalition<br>European Rural Parliament<br>Membership<br>Sales; publications<br>Sub-total for charitable activities<br>Total income from charitable activities<br>Big Lottery Safeguarding grant|Unrestricted<br>£<br>79,000<br>5,300<br>20,000<br>100<br>2,000<br>43,993<br>9,838<br>24,266<br>-<br>-<br>833<br>-<br>90,845<br>-<br>-<br>4,159<br>133,000<br>413,334<br>1,020<br>1,976<br>416,330|Restricted<br>£<br>1,633,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>300<br>13,435<br>-<br>14,484<br>2,823,535<br>973<br>6,000<br>-<br>-<br>4,491,727<br>-<br>-<br>4,491,727|2020<br>Total<br>£<br>1,712,000<br>5,300<br>20,000<br>100<br>2,000<br>43,993<br>9,838<br>24,266<br>300<br>13,435<br>833<br>14,484<br>2,914,380<br>973<br>6,000<br>4,159<br>133,000|
||||4,905,061<br>1,020<br>1,976|
||||4,908,057|



- 4 Income from investments 

|Income from investments|||||
|---|---|---|---|---|
|Interest received|Unrestricted<br>£<br>111<br>111|£<br>-<br>-<br>Restricted|2021<br>Total<br>£<br>111<br>111|2020<br>Total<br>£<br>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)<br>Direct costs<br>Defra Grant to ACRE Network<br>Hallmaster commissions<br>Village Hall Improvement Grants<br>Rural Coalition expenditure<br>Overheads<br>Support costs<br>Governance costs<br>Total expenditure 2021|Cost of<br>raising<br>funds<br>£<br>6,409<br>5,807<br>-<br>-<br>-<br>-<br>1,201|Charitable activities|Charitable activities|Governance<br>costs<br>£<br>23,807<br>14,058<br>-<br>-<br>-<br>-<br>1,236|Support<br>costs<br>£<br>38,017<br>10,029<br>-<br>-<br>-<br>-<br>4,658|2021 Total<br>£<br>227,355<br>217,914<br>1,633,000<br>310<br>1,216,209<br>5,455<br>35,531|
|---|---|---|---|---|---|---|
|||Charitable<br>activities<br>£<br>158,166<br>187,764<br>1,633,000<br>310<br>1,216,209<br>5,455<br>28,436|Services and<br>sales<br>£<br>956<br>256<br>-<br>-<br>-<br>-<br>-||||
||13,417<br>1,481<br>1,339|3,229,340<br>45,484<br>43,062|1,212<br>221<br>219|39,101<br>5,518<br>(44,620)|52,704<br>(52,704)<br>-|3,335,775<br>-<br>-|
||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)<br>Direct costs<br>Defra Grant to ACRE Network<br>Hallmaster commissions<br>Village Hall Improvement Grants<br>Rural Coalition expenditure<br>Overheads<br>Support costs<br>Governance costs<br>Total expenditure 2020|Cost of<br>raising<br>funds<br>£<br>5,143<br>419<br>-<br>-<br>-<br>-<br>815|Charitable<br>activities<br>£<br>146,434<br>214,655<br>1,633,000<br>300<br>392,228<br>3,685<br>27,923|Services and<br>sales<br>Governance<br>costs<br>£<br>£<br>956<br>18,623<br>256<br>19,530<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>4<br>469<br>1,216<br>38,622<br>215<br>4,250<br>216<br>(42,872)<br>1,647<br>-<br>Charitable activities|Services and<br>sales<br>Governance<br>costs<br>£<br>£<br>956<br>18,623<br>256<br>19,530<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>4<br>469<br>1,216<br>38,622<br>215<br>4,250<br>216<br>(42,872)<br>1,647<br>-<br>Charitable activities|Support<br>costs<br>£<br>37,913<br>8,169<br>-<br>-<br>-<br>-<br>1,616|2020 Total<br>£<br>209,069<br>243,029<br>1,633,000<br>300<br>392,228<br>3,685<br>30,827|
|---|---|---|---|---|---|---|
||6,377<br>1,173<br>1,286|2,418,225<br>42,060<br>41,369|1,216<br>215<br>216|38,622<br>4,250<br>(42,872)|47,698<br>(47,698)<br>-|2,512,138<br>-<br>-|
||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 

- 6 Grant making to institutions 

|Grant making to institutions|||
|---|---|---|
|Village Hall Improvement Grants<br>Power to Change Village Hall Survey<br>At the end of the year<br>Cost<br>Allocation of Defra Grant|2021<br>£<br>1,633,000<br>1,180,917<br>-|2020<br>£<br>1,633,000<br>392,228<br>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<br>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|



- 8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel 

Staff costs were as follows: 

|Staff costs were as follows:|||
|---|---|---|
|Social security costs<br>Other staff costs<br>Salaries and wages<br>Employer’s contribution to defined contribution pension schemes|2021<br>£<br>118,704<br>12,122<br>8,903<br>87,627|2020<br>£<br>103,000<br>10,646<br>7,725<br>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 

- 9 Staff numbers 

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

|Governance<br>Charitable activies<br>Raising funds|2021<br>No.<br>0.1<br>3.7<br>0.1|2020<br>No.<br>0.1<br>2.8<br>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<br>Action in rural Sussex<br>Action with Communities in Cumbria<br>Action with Communities in Rural Kent<br>Bedfordshire Rural Communities Charity<br>Cambridgeshire ACRE<br>Cheshire Community Action<br>Connecting Communities in Berkshire<br>Community Action Isle of Wight<br>Community Action Norfolk<br>Community Action Northumberland<br>Community Action Suffolk<br>Community Council for Somerset<br>Community Development Action Hertfordshire<br>Community First in Herefordshire and Worcestershire<br>Community First Oxfordshire<br>Community First, Wiltshire<br>Community First Yorkshire<br>Community Futures, Lancashire<br>Community Impact Bucks<br>Community Lincs part of Lincolnshire YMCA Ltd<br>Cornwall Rural Community Charity<br>Devon Communities Together<br>Dorset Community Action<br>Durham Community Action<br>GRCC Community Action in Gloucestershire<br>Humber & Wolds Rural Action<br>Northamptonshire ACRE<br>Rural Action Derbyshire<br>Rural Community Action Nottinghamshire<br>Rural Community Council (Leicestershire & Rutland)<br>Rural Community Council of Essex<br>Shropshire Rural Community Council<br>Support Staffordshire<br>Surrey Community Action<br>Tees Valley Rural Action<br>WRCC (Warwickshire Rural Community Council)<br>West of England Rural Network|2021<br>£<br>44,675<br>47,395<br>49,265<br>49,530<br>35,840<br>44,180<br>39,500<br>34,840<br>33,840<br>50,995<br>42,405<br>45,310<br>44,060<br>38,065<br>43,930<br>39,640<br>41,095<br>69,720<br>44,240<br>39,000<br>49,030<br>45,670<br>53,145<br>41,255<br>42,585<br>39,220<br>41,965<br>40,280<br>44,200<br>40,580<br>41,200<br>46,875<br>40,135<br>42,405<br>38,735<br>34,235<br>37,635<br>36,325|2020<br>£<br>44,675<br>47,395<br>49,265<br>49,530<br>35,840<br>44,180<br>39,500<br>34,840<br>33,840<br>50,995<br>42,405<br>45,310<br>44,060<br>38,065<br>43,930<br>39,640<br>41,095<br>69,720<br>44,240<br>39,000<br>49,030<br>45,670<br>53,145<br>41,255<br>42,585<br>39,220<br>41,965<br>40,280<br>44,200<br>40,580<br>41,200<br>46,875<br>40,135<br>42,405<br>38,735<br>34,235<br>37,635<br>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<br>Action Hampshire<br>Action in rural Sussex<br>Action with Communities in Cumbria<br>Action with Communities in Rural Kent<br>Bedfordshire Rural Communities Charity<br>Cambridgeshire ACRE<br>Cheshire Community Action<br>Connecting Communities in Berkshire<br>Community Action Isle of Wight<br>Community Action Norfolk<br>Community Action Northumberland<br>Community Action Suffolk<br>Community Council for Somerset<br>Community Development Action Hertfordshire<br>Community First in Herefordshire and Worcestershire<br>Community First Oxfordshire<br>Community First, Wiltshire<br>Community First Yorkshire<br>Community Futures, Lancashire<br>Community Impact Bucks<br>Community Lincs part of Lincolnshire YMCA Ltd<br>Cornwall Rural Community Charity<br>Devon Communities Together<br>Dorset Community Action<br>Durham Community Action<br>GRCC Community Action in Gloucestershire<br>Humber & Wolds Rural Action<br>Northamptonshire ACRE<br>Rural Action Derbyshire<br>Rural Community Action Nottinghamshire<br>Rural Community Council (Leicestershire & Rutland)<br>Rural Community Council of Essex<br>Shropshire Rural Community Council<br>Support Staffordshire<br>Surrey Community Action<br>Tees Valley Rural Action<br>WRCC (Warwickshire Rural Community Council)<br>West of England Rural Network|2021<br>£<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,500<br>1,000<br>1,000<br>1,000<br>1,000<br>1,500<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,000<br>1,500<br>1,000<br>1,500<br>1,500<br>1,000<br>1,000<br>1,500<br>1,000<br>1,000<br>1,000<br>1,000|2020<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
||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<br>Action Hampshire<br>Action in rural Sussex<br>Action with Communities in Cumbria<br>Action with Communities in Rural Kent<br>Bedfordshire Rural Communities Charity<br>Cambridgeshire ACRE<br>Cheshire Community Action<br>Connecting Communities in Berkshire<br>Community Action Isle of Wight<br>Community Action Norfolk<br>Community Action Northumberland<br>Community Action Suffolk<br>Community Council for Somerset<br>Community Development Action Hertfordshire<br>Community First in Herefordshire and Worcestershire<br>Community First Oxfordshire<br>Community First, Wiltshire<br>Community First Yorkshire<br>Community Futures, Lancashire<br>Community Impact Bucks<br>Community Lincs part of Lincolnshire YMCA Ltd<br>Cornwall Rural Community Charity<br>Devon Communities Together<br>Dorset Community Action<br>Durham Community Action<br>GRCC Community Action in Gloucestershire<br>Humber & Wolds Rural Action<br>Northamptonshire ACRE<br>Rural Action Derbyshire<br>Rural Community Action Nottinghamshire<br>Rural Community Council (Leicestershire & Rutland)<br>Rural Community Council of Essex<br>Shropshire Rural Community Council<br>Support Staffordshire<br>Surrey Community Action<br>Tees Valley Rural Action<br>WRCC (Warwickshire Rural Community Council)<br>West of England Rural Network|2021<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|2020<br>£<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>600<br>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<br>Owermoigne Village Hall<br>Pannal Memorial Hall<br>Port Isaac Village Hall<br>Ridgewell Village Hall<br>The Erskine Centre<br>The Hive Community Centre<br>The Old Chapel<br>Three Parishes Hall<br>Thursley Village Hall<br>Willington Peace Memorial Hall<br>Wolverley Memorial Hall<br>Woolacombe Village Hall|27,000<br>10,687<br>75,000<br>13,746<br>75,000<br>12,321<br>10,356<br>20,016<br>20,000<br>14,858<br>10,000<br>14,049<br>34,190|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
||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 

|12<br>Tangible fixed assets|||
|---|---|---|
|13<br>Charge for the year<br>Depreciation<br>At the start of the year<br>At the end of the year<br>At the end of the year<br>Net book value<br>Mixed motive investments<br>Additions in year<br>At the start of the year<br>Cost or valuation<br>At the end of the year<br>At the start of the year<br>All of the above assets are used for charitable purposes.|Computer<br>equipment<br>£<br>5,441<br>695|Total<br>£<br>5,441<br>695|
||6,136|6,136|
||3,575<br>1,163|3,575<br>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<br>Amounts due after more than one year included in:<br>Loans to rural community buildings under loan scheme<br>15<br>Village Hall Improvement Grant drawdown confirmed<br>15a<br>Rural community buildings loan fund<br>Rural community building loan fund administered by ACRE on behalf of Defra:<br>Funds advanced by Defra at 1 April 2020<br>Loans to rural community buildings:<br>Outstanding at 1 April 2020<br>Made during year<br>Repayments during year<br>Outstanding loans at March 2021 (note 14)<br>16<br>Balance  at the beginning of the year<br>Amount released to income in the year<br>Amount deferred in the year<br>Balance at the end of the year<br>Income deferred to 2021-22<br>Village Hall Advisors training event November 2021<br>Tradestands income received for Village Hall Advisors training event November 2021<br>Village Hall Improvement grant management to Dec 2021<br>Big Lottery Digital<br>Bank deposit on hand at 31 March 2021<br>Deferred income comprises:<br>Deferred income<br>Other creditors<br>Trade creditors<br>Taxation and social security<br>Prepayments<br>Debtors<br>Other debtors<br>Deferred income (note 16)<br>Rural community buildings loan fund (Note 15a)<br>Loans to rural community buildings under loan scheme (Note 14a)<br>Creditors: amounts falling due within one year|2021<br>£<br>233,928<br>24,100<br>6,675|2020<br>£<br>291,724<br>18,584<br>10,146|
||264,703|320,454|
||174,687|213,169|
||2021<br>£<br>700,000<br>27,133<br>21,803<br>11,718<br>-<br>93,194|2020<br>£<br>700,000<br>13,217<br>19,408<br>24,605<br>28,962<br>91,953|
||853,848|878,145|
||2021<br>£<br>700,000|2020<br>£<br>700,000|
||291,724<br>31,000<br>(88,796)|477,117<br>61,940<br>(247,333)|
||233,928|291,724|
||466,072|408,276|
||2021<br>£<br>91,953<br>(48,926)<br>50,167|2020<br>£<br>10,838<br>(10,838)<br>91,953|
||93,194|91,953|
||6,000<br>500<br>36,694<br>50,000|6,000<br>333<br>85,620<br>-|
||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<br>17b<br>18a<br>At 1 April<br>2020<br>£<br>-<br>7,586<br>-<br>11,251<br>122<br>Defra Village Hall survey post CV-19<br>-<br>Hallmaster<br>-<br>2,787<br>2,432,280<br>Power to Change Village Hall Survey<br>(22,764)<br>471<br>Centre for Discovery<br>-<br>7,981<br>Total restricted funds<br>2,439,714<br>22,063<br>50,000<br>Supporting ACRE Network members<br>20,000<br>27,000<br>Total designated funds<br>119,063<br>General funds<br>332,969<br>452,032<br>2,891,746<br>Big Lottery Safeguarding grant<br>ACRE Network Development Fund<br>ACRE Network Service Review Delivery<br>Total unrestricted funds<br>Analysis of net assets between funds (current year)<br>Village Hall Improvement Grants<br>Designated funds:<br>Defra rural communities<br>Big Lottery CV-19<br>National Parks Residents Association<br>LACE UP (Sport England)<br>Rural Coalition<br>Tangible fixed assets<br>Net current assets<br>Carnegie<br>National Village Halls transfer<br>Movements in funds (current year)<br>Total funds<br>Net current assets<br>Net assets at 31 March 2020<br>Analysis of net assets between funds (prior year)<br>LLP Consultancy (Cirican)<br>Unrestricted funds:<br>Tangible fixed assets<br>Net assets at 31 March 2021<br>Restricted funds:<br>Mixed motive investments||General<br>unrestricted<br>£<br>1,398<br>3,000<br>372,260|Designated<br>£<br>-<br>-<br>57,000|Restricted<br>£<br>-<br>-<br>1,241,949|Total funds<br>£<br>1,398<br>3,000<br>1,671,209|
|||376,658|57,000|1,241,949|1,675,607|
|||General<br>unrestricted<br>£<br>1,866<br>331,103|Designated<br>£<br>-<br>119,063|Restricted<br>£<br>-<br>2,439,714|Total funds<br>£<br>1,866<br>2,889,880|
|||332,969|119,063|2,439,714|2,891,746|
|||Income &<br>gains<br>£<br>10,000<br>-<br>69,500<br>41,916<br>1,633,000<br>15,000<br>310<br>-<br>421<br>13,435<br>-<br>5,000<br>3,600|Expenditure &<br>losses<br>£<br>(12,111)<br>-<br>(73,954)<br>(53,201)<br>(1,633,000)<br>(6,600)<br>(310)<br>-<br>(1,216,209)<br>(12,112)<br>-<br>(5,000)<br>(5,456)|Transfers<br>£<br>2,111<br>-<br>4,454<br>-<br>-<br>-<br>-<br>-<br>-<br>21,441<br>-<br>-<br>-|At 31 March<br>2021<br>£<br>-<br>7,586<br>-<br>(34)<br>122<br>8,400<br>-<br>2,787<br>1,216,492<br>-<br>471<br>-<br>6,125|
||2,439,714|1,792,182|(3,017,953)|28,006|1,241,949|
||22,063<br>50,000<br>20,000<br>27,000|-<br>-<br>-<br>6,000|-<br>(2,000)<br>-<br>-|(22,063)<br>(44,000)<br>-<br>-|-<br>4,000<br>20,000<br>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<br>Power to Change Village Hall Survey<br>Total restricted funds<br>Supporting ACRE Network members<br>Total designated funds<br>General funds<br>Designated funds:<br>LLP Consultancy (Cirican)<br>National Parks Residents Association<br>Total funds<br>Village Hall Improvement Grants<br>Big Lottery Safeguarding grant<br>Defra rural communities<br>Rural Coalition<br>ACRE Network Development Fund<br>LACE UP (Sport England)<br>Total unrestricted funds<br>Unrestricted funds:<br>Policy and Advocacy<br>ACRE Network Service Review Delivery<br>Nationwide Foundation<br>Restricted funds:<br>National Village Halls transfer|At 1 April<br>2019<br>£<br>5,611<br>10,167<br>-<br>122<br>-<br>2,787<br>-<br>-<br>471<br>5,666|Income &<br>gains<br>£<br>-<br>-<br>14,484<br>1,633,000<br>300<br>-<br>2,824,508<br>13,435<br>-<br>6,000|Expenditure &<br>losses<br>£<br>(5,611)<br>(2,581)<br>(3,233)<br>(1,633,000)<br>(300)<br>-<br>(392,228)<br>(36,199)<br>-<br>(3,685)|Transfers<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|At 31 March<br>2020<br>£<br>-<br>7,586<br>11,251<br>122<br>-<br>2,787<br>2,432,280<br>(22,764)<br>471<br>7,981|
|---|---|---|---|---|---|
||24,824|4,491,727|(2,076,837)|-|2,439,714|
||15,735<br>-<br>-<br>-<br>-|24,320<br>30,000<br>50,000<br>20,000<br>30,000|(2,387)<br>(45,605)<br>-<br>-<br>(3,000)|(15,605)<br>15,605<br>-<br>-<br>-|22,063<br>-<br>50,000<br>20,000<br>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<br>European Rural Parliament<br>Total<br>Defra village hall improvement grant|Unrestricted<br>£<br>-<br>79,000<br>-|£<br>-<br>1,633,000<br>-<br>Restricted|2021<br>Total<br>£<br>-<br>1,712,000<br>-|2020<br>Total<br>£<br>2,914,380<br>1,712,000<br>4,159|
||79,000|1,633,000|1,712,000|4,630,539|



- 20 Reconciliation of net income / (expenditure) to net cash flow from operating activities 

|Reconciliation of net income / (expenditure) to net cash flow from operating activities|||
|---|---|---|
|Net income / (expenditure) for the reporting period<br>(as per the statement of financial activities)<br>Depreciation charges<br>Dividends, interest and rent from investments<br>(Increase)/decrease in debtors<br>(Increase)/decrease in loan fund cash<br>Increase/(decrease) in creditors<br>Net cash provided by / (used in) operating activities|2021<br>£<br>(1,216,136)<br>1,163<br>(111)<br>55,747<br>(57,796)<br>(24,297)|2020<br>£<br>2,435,276<br>1,066<br>(517)<br>184,491<br>(185,393)<br>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<br>Account for village hall improvement grant scheme<br>Total|At 1 April<br>2020<br>£<br>578,054<br>2,461,242|Cash flows<br>£<br>(264)<br>(1,244,750)|At 31 March<br>2021<br>£<br>577,790<br>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<br>Less than one year|2021<br>2020<br>£<br>£<br>3,940<br>19,600<br>-<br>-<br>3,940<br>19,600<br>Property||2021<br>2020<br>£<br>£<br>1,156<br>1,156<br>-<br>1,156<br>1,156<br>2,312<br>Equipment||
||3,940|19,600|1,156|2,312|



- 23 Legal status of the charity 

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