**REGISTERED COMPANY NUMBER: 03555199 (England and Wales) REGISTERED CHARITY NUMBER: 1074676** 

## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **REPORT OF THE TRUSTEES AND** 

## **FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 MARCH 2021** 



**CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|4|
|**Report of the Independent Auditors**|5|to|7|
|**Statement of Financial Activities**||8||
|**Balance Sheet**||9||
|**Cash Flow Statement**||10||
|**Notes to the Cash Flow Statement**||11||
|**Notes to the Financial Statements**|12|to|21|
|**Detailed Statement of Financial Activities**|22|to|23|





## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** 

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

The charity's principal activities during the year were those of improving the quality of life of Cheshire's communities, especially its rural communities. It does that by working in partnership with other organisations and encouraging communities to help themselves, and by addressing issues of disadvantage and social inclusion in rural areas. 

## **Public Benefit Statement - Aims, Activities and Achievements** 

The principal aim of Cheshire Community Council is to improve the quality of life of Cheshire's communities. 

The Trustees believe that the services provided by the Cheshire Community Council are compliant with the Charities Commission Guidance on Public Benefit and the public benefit is further exemplified in the following statements of Achievements and Performance and Plans for Future Periods and in the comments relating to the work undertaken with the restricted income funds below. 

## **Achievements and Performance** 

In terms of project delivery, we have continued to support groups and individuals in local communities across Cheshire and Warrington. 

Our key activities and services are broadly categorised into three themes: People, Place and Voice. Details of these activities and services can be found on page 20. We have continued to grow our specialist consultancy support arm, which directly enables us to sustain other key activities. During this period, CCA took stock of our marketing and communications work and sought to focus on this area - developing a new website, e-news and a more structured approach to social media messaging. 

## **Financial Review** 

The results for the year, and the charity's financial position at the end of the year, are shown in the attached financial statements. 

## **Plans for Future Periods** 

Our plans are to continue to consolidate our activity, demonstrate the proactive support CCA delivers into communities and be an active member of emerging partnerships for the future. 

## **Covid 19** 

The trustees have considered the likely effect of the Covid pandemic on activities and have taken measures to mitigate any adverse impact on the financial position. This period also saw CCA deliver high quality support to many communities in working through their own financial challenges as a result of the pandemic. This support resulted in a significant increase in our community building membership. 

Page 1 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **a) Governing document** 

Cheshire Community Council (trading as Cheshire Community Action) is a company limited by guarantee registered at Companies House. It is also a charity registered under the Charities Act 2011. Its registered office is Queens House Annexe, Queens Road, Chester CH1 3BQ. 

## **b) Appointment of Trustees** 

As set out in the Articles of Association, eleven Trustees are elected by the members of the charitable company attending the Annual General Meeting (held in the autumn of each year) and serve for a period of three years. 

All members are circulated with an invitation to the AGM which advises them of the retiring Trustees and requesting nominations for new trustees prior to the AGM. 

The Board currently has plans to recruit additional members due to trustee vacancies and ensuring the board remains quorate. 

## **c) Trustee Induction and Training** 

New Trustees receive induction training including an induction pack containing the Memorandum and Articles of Association, details of the committee and the decision making structure, the business plan and the most recent audited accounts and other financial information. 

During the induction process they meet with the Chief Operating Officer, key employees and other Trustees. 

Trustees are encouraged to attend appropriate external training events where these will enhance the undertaking of their role. 

## **Organisation** 

The Board has appointed a Chief Operating Officer who is responsible for the day to day running of Cheshire Community Council within the general policy and financial limits as determined by the Scrutiny Committee, and subsequently ratified by the full Board. 

## **Risk Management** 

The Board (led by the Scrutiny Committee) has reviewed the principal areas of Cheshire Community Council's operations and has considered the major risks in each of those areas of activity. In the opinion of the Trustees/directors Cheshire Community Council has sufficiently robust monitoring/review systems and cash reserves that, under normal circumstances, should allow any risks in its day-to-day operations to be mitigated to an acceptable level. 

## **Investment Powers and Policy** 

These are provided by the Memorandum of Association of the company but are subject to conditions and consents imposed or required by law. As a charity registered with the Charity Commission, Cheshire Community Council is governed by the Trustee Act 2000. 

All normal cash flow balances and reserves are held in deposit accounts. 

## **Reserves Policy** 

Cheshire Community Council aims to hold sufficient funds in reserve to meet its likely outstanding commitments if circumstances arose where the Trustees/directors were obliged to close the Charity. 

The costs for 2020/21 were as follows: 

Staff costs Office costs Redundancy payments to staff Total 


Page 2 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** 

This policy is reviewed annually as part of the budget making process. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 03555199 (England and Wales) 

**Registered Charity number** 1074676 

## **Registered office** 

Queens House Annexe Queens Road Chester CH1 3BQ 

## **Trustees** 

K Benn MBE D Felix L Smetham (appointed 9.9.20) J Weaver E C Brady L E Jones (resigned 9.11.20) N D Thompson (appointed 4.5.20) C Fortune (appointed 4.5.20) A Amesbury (appointed 4.5.20) 

**Company Secretary** J Heselwood 

## **Auditors** 

Murray Smith LLP Chartered Accountants Statutory Auditors Darland House 44 Winnington Hill Northwich Cheshire CW8 1AU 

## **Bankers** 

Barclays Bank plc 30 St. Werburgh Street Chester CH1 2DY 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The trustees (who are also the directors of Cheshire Community Council for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law  and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Page 3 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued** 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 those financial statements, the trustees are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

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

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

In so far as the trustees are aware: 

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

- the trustees 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. 

## **AUDITORS** 

The auditors,  Murray Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. 

Approved by order of the board of trustees on 30 September 2021 and signed on its behalf by: 



J Heselwood - Secretary 

Page 4 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHESHIRE COMMUNITY COUNCIL (REGISTERED NUMBER: 03555199)** 

## **Opinion** 

We have audited the financial statements of Cheshire Community Council (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company'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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other 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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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. 

## **Opinions 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

Page 5 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHESHIRE COMMUNITY COUNCIL (REGISTERED NUMBER: 03555199)** 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. 

We have nothing to report in respect of the following matters where 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; or 

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

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

- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **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 a Report of the Independent Auditors 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

The audit procedures designed to identify irregularities included: 

- Enquiry of management and those charged with governance around actual and potential litigation and claims 

- - Enquiry of company staff with responsibilities for tax and compliance matters to identify any instances of non-compliance with laws and regulations 

- Reviewing any minutes available of meetings of those charged with governance 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations 

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or through 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 Report of the Independent Auditors. 

Page 6 



## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHESHIRE COMMUNITY COUNCIL (REGISTERED NUMBER: 03555199)** 

## **Use of our report** 

This report is made solely to the charitable company's 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 charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 



Mike Benson (Senior Statutory Auditor) for and on behalf of Murray Smith LLP Chartered Accountants Statutory Auditors Darland House 44 Winnington Hill Northwich Cheshire CW8 1AU 

30 September 2021 

Page 7 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>**Charitable activities**<br>4<br>Projects and activities<br>Investment income<br>3<br>**Total**<br>**EXPENDITURE ON**<br>**Charitable activities**<br>5<br>Projects and activities<br>**NET INCOME**<br>**Other recognised gains/(losses)**<br>Actuarial gains/(losses) on defined benefit<br>schemes<br>**Net movement in funds**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>funds<br>47,970<br>-<br>551<br>48,521<br>36,165<br>12,356<br>(194,000)<br>(181,644)<br>253,988<br>72,344|Restricted<br>funds<br>4,000<br>1,277,957<br>-<br>1,281,957<br>1,281,957<br>-<br>-<br>-<br>-<br>-|2021<br>Total<br>funds<br>51,970<br>1,277,957<br>551<br>1,330,478<br>1,318,122<br>12,356<br>(194,000)<br>(181,644)<br>253,988<br>72,344|2020<br>Total<br>funds<br>92,331<br>1,358,144<br>1,844<br>1,452,319<br>1,395,218<br>57,101<br>163,000<br>220,101<br>33,887<br>253,988|
|---|---|---|---|---|



The notes form part of these financial statements 

Page 8 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **BALANCE SHEET 31 MARCH 2021** 

|Notes<br>**CURRENT ASSETS**<br>Debtors<br>10<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>11<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**PENSION (LIABILITY)/ASSET**<br>14<br>**NET ASSETS**<br>**FUNDS**<br>13<br>Unrestricted funds<br>**TOTAL FUNDS**|2021<br>6,305<br>211,796<br>218,101<br>(34,757)<br>183,344<br>183,344<br>(111,000)<br>72,344<br>72,344<br>72,344|2020<br>10,429<br>219,476<br>229,905<br>(29,917)<br>199,988<br>199,988<br>54,000<br>253,988<br>253,988<br>253,988|
|---|---|---|



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

The financial statements were approved by the Board of Trustees and authorised for issue on 30 September 2021 and were signed on its behalf by: 



K Benn MBE - Trustee 

The notes form part of these financial statements 

Page 9 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash (used in)/provided by operating activities<br>**Cash flows from investing activities**<br>Interest received<br>Net cash provided by investing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|2021<br>(8,231)<br>(8,231)<br>551<br>551<br>(7,680)<br>219,476<br>211,796|2020<br>53,188<br>53,188<br>1,844<br>1,844<br>55,032<br>164,444<br>219,476|
|---|---|---|



The notes form part of these financial statements 

Page 10 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021** 

|**1.**|**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM**|**OPERATING ACTIVITIES**|**OPERATING ACTIVITIES**|
|---|---|---|---|
||**Net income for the reporting period (as per the Statement of Financial**|2021|2020|
||**Activities)**|12,356|57,101|
||**Adjustments for:**|||
||Interest received|(551)|(1,844)|
||Decrease in debtors|4,124|1,070|
||Increase in creditors|4,840|16,861|
||Difference between pension charge and cash contributions|(29,000)|(20,000)|
||**Net cash (used in)/provided by operations**|(8,231)|53,188|
|2.|**ANALYSIS OF CHANGES IN NET FUNDS**|||



|**Net cash**|At 1.4.20<br>Cash flow<br>At 31.3.21|
|---|---|
|Cash at bank|219,476<br>(7,680)<br>211,796|
||219,476<br>(7,680)<br>211,796|
|**Total**|219,476<br>(7,680)<br>211,796|



The notes form part of these financial statements 

Page 11 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. 

## **Incoming resources** 

Voluntary income including donations, gifts and legacies and grants that provide core funding or are of general nature are recognised where there is entitlement, certainty of receipts and the amount can be measured with sufficient reliability. Such income is only deferred when: 

- The donor specifies that the grant or donation must only be used in future accounting periods; or 

- The donor has imposed conditions that must be met before the charity has unconditional entitlement. 

Income from commercial trading activities is recognised on a recoverable basis. 

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided). Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. 

## **Resources expended** 

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable. Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. 

Charitable activities include expenditure associated with the management and governance of the Charity along with the management of its various projects and activities and include both the direct costs and support costs relating to these activities. 

Governance costs include those incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements. 

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

## **Irrecoverable VAT** 

All resources expended are classified under activity headings that aggregate all costs relating to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred. 

## **Tangible fixed assets** 

Individual fixed assets costing or more are capitalised at cost. Tangible fixed assets are depreciated on a straight line basis over their estimated useful lives as follows: 

Furniture and fittings 10% per annum on written down value 

Computer and other office equipment 35% per annum on cost and 10% per annum on written down value 

continued... 

Page 12 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **1. ACCOUNTING POLICIES - continued** 

## **Taxation** 

The company is a registered charity and no provision is considered necessary for taxation. 

## **Funds structure** 

Cheshire Community Council has a number of restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose. All other funds are unrestricted income funds. 

## **Pension costs and other post-retirement benefits** 

The company operates a pension scheme for the benefit of certain employees. The scheme is a defined benefit scheme and contributions are charged to the income and expenditure account as they are paid. The scheme, which is a multi-employer scheme, is operated jointly by Cheshire East and Cheshire West and Chester Councils and is valued on a regular basis. The pension scheme is no longer accepting new members. 

The charity also operates a defined contribution pension scheme. Contributions to the scheme are charged to the income and expenditure account as they fall due. 

## **2. DONATIONS AND LEGACIES** 

|Unrestricted<br>Restricted<br>funds<br>funds<br>Grants<br>14,416<br>-<br>Consultancy Income<br>22,854<br>-<br>Parish Council Membership<br>5,790<br>-<br>Village Halls Membership<br>4,910<br>-<br>Cheshire East core<br>-<br>4,000<br>47,970<br>4,000|2021<br>Total<br>funds<br>14,416<br>22,854<br>5,790<br>4,910<br>4,000<br>51,970|2020<br>Total<br>funds<br>-<br>68,191<br>4,360<br>3,780<br>16,000<br>92,331|
|---|---|---|



Grants received, included in the above, are as follows: 

|Other grants<br>**INVESTMENT INCOME**<br>Unrestricted<br>Restricted<br>funds<br>funds<br>Bank interest receivable<br>551<br>-|2021<br>14,416<br>2021<br>Total<br>funds<br>551|2020<br>-<br>2020<br>Total<br>funds<br>1,844|
|---|---|---|



## **3. INVESTMENT INCOME** 

continued... 

Page 13 



## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **4. INCOME FROM CHARITABLE ACTIVITIES** 

|Activity<br>Projects and activities<br>Projects and activities<br>**5.**<br>**CHARITABLE ACTIVITIES COSTS**<br>Projects and activities<br>**6.**<br>**SUPPORT COSTS**<br>Management<br>Projects and activities<br>110,761|Direct<br>Costs<br>1,205,414<br>Finance<br>336|2021<br>1,277,957<br>Support<br>costs (see<br>note 6)<br>112,708<br>Governance<br>costs<br>1,611|2020<br>1,358,144<br>Totals<br>1,318,122<br>Totals<br>112,708|
|---|---|---|---|



## **7. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020. 

## **Trustees' expenses** 

## **8. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Other pension costs<br>The average monthly number of employees during the year was as follows:<br>Projects and activities staff<br>Governance and administrative staff||2021<br>255,406<br>18,688<br>18,124<br>292,218<br>2021<br>9<br>2<br>11||2020<br>276,497<br>21,446<br>22,587<br>320,530<br>2020<br>8<br>2<br>10|
|---|---|---|---|---|



Other pension costs above represents the total operating charge included in resources expended in the statement of financial activities and does not include amounts included in other finance costs and other recognised gains and losses. 

continued... 

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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **9. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 April 2020 and 31 March 2021<br>**DEPRECIATION**<br>At 1 April 2020 and 31 March 2021<br>**NET BOOK VALUE**<br>At 31 March 2021<br>At 31 March 2020<br>**10.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Prepayments<br>**11.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Other creditors<br>**12.**<br>**ANALYSIS OF NET ASSETS BETWEEN FUNDS**<br>Unrestricted<br>Restricted<br>funds<br>funds<br>Current assets<br>218,101<br>-<br>Current liabilities<br>(34,757)<br>-<br>Pension (liability)/asset<br>(111,000)<br>-<br>72,344<br>-<br>**13.**<br>**MOVEMENT IN FUNDS**<br>Net<br>movement<br>At 1.4.20<br>in funds<br>**Unrestricted funds**<br>General fund<br>253,988<br>(181,644)<br>Reserves Policy<br>-<br>-<br>253,988<br>(181,644)<br>**TOTAL FUNDS**<br>253,988<br>(181,644)|2021<br>6,305<br>2021<br>34,757<br>2021<br>Total<br>funds<br>218,101<br>(34,757)<br>(111,000)<br>72,344<br>Transfers<br>between<br>funds<br>(37,847)<br>37,847<br>-<br>-|Furniture,<br>fittings<br>& office<br>equipment<br>32,306<br>32,306<br>-<br>-<br>2020<br>10,429<br>2020<br>29,917<br>2020<br>Total<br>funds<br>229,905<br>(29,917)<br>54,000<br>253,988<br>At<br>31.3.21<br>34,497<br>37,847<br>72,344<br>72,344|
|---|---|---|



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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **13. MOVEMENT IN FUNDS - continued** 

Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Acre Defra<br>Rural Housing Needs<br>Awards For All<br>Cheshire East Core<br>Cheshire West Communities Together<br>Early Intervention Project<br>Pathfinder<br>Cheshire Community Foundation<br>**TOTAL FUNDS**<br>**Comparatives for movement in funds**<br>**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Community conversations<br>**TOTAL FUNDS**|Incoming<br>resources<br>48,521<br>40,500<br>16,630<br>8,020<br>4,000<br>1,526<br>1,094,000<br>108,281<br>9,000<br>1,281,957<br>1,330,478|Resources<br>expended<br>(36,165)<br>(40,500)<br>(16,630)<br>(8,020)<br>(4,000)<br>(1,526)<br>(1,094,000 )<br>(108,281)<br>(9,000)<br>(1,281,957 )<br>(1,318,122 )<br>At 1.4.19<br>19,228<br>14,659<br>33,887||Gains and<br>losses<br>(194,000)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(194,000)<br>Net<br>movement<br>in funds<br>234,760<br>(14,659)<br>220,101|Movement<br>in funds<br>(181,644)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(181,644)<br>At<br>31.3.20<br>253,988<br>-<br>253,988|
|---|---|---|---|---|---|



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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **13. MOVEMENT IN FUNDS - continued** 

Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Community Pride<br>Acre Defra<br>Awards For All<br>Cheshire West Communities Together<br>Early Intervention Project<br>Community conversations<br>Pathfinder<br>Community LED Housing<br>**TOTAL FUNDS**|Incoming<br>resources<br>94,175<br>3,484<br>39,500<br>9,150<br>2,275<br>1,094,000<br>68,196<br>108,280<br>33,259<br>1,358,144<br>1,452,319|Resources<br>expended<br>(22,415)<br>(3,484)<br>(39,500)<br>(9,150)<br>(2,275)<br>(1,094,000 )<br>(82,855)<br>(108,280)<br>(33,259)<br>(1,372,803 )<br>(1,395,218 )|Gains and<br>losses<br>163,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>163,000|Movement<br>in funds<br>234,760<br>-<br>-<br>-<br>-<br>-<br>(14,659)<br>-<br>-<br>(14,659)<br>220,101|
|---|---|---|---|---|



A current year 12 months and prior year 12 months combined position is as follows: 

|**Unrestricted funds**<br>General fund<br>Reserves Policy<br>**Restricted funds**<br>Community conversations<br>**TOTAL FUNDS**|At 1.4.19<br>19,228<br>-<br>19,228<br>14,659<br>33,887|Net<br>movement<br>in funds<br>53,116<br>-<br>53,116<br>(14,659)<br>38,457|Transfers<br>between<br>funds<br>(37,847)<br>37,847<br>-<br>-<br>-|At<br>31.3.21<br>34,497<br>37,847<br>72,344<br>-<br>72,344|
|---|---|---|---|---|



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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **13. MOVEMENT IN FUNDS - continued** 

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Community Pride<br>Acre Defra<br>Rural Housing Needs<br>Awards For All<br>Cheshire East Core<br>Cheshire West Communities Together<br>Early Intervention Project<br>Community conversations<br>Pathfinder<br>Community LED Housing<br>Cheshire Community Foundation<br>**TOTAL FUNDS**|Incoming<br>resources<br>142,696<br>3,484<br>80,000<br>16,630<br>17,170<br>4,000<br>3,801<br>2,188,000<br>68,196<br>216,561<br>33,259<br>9,000<br>2,640,101<br>2,782,797|Resources<br>expended<br>(58,580)<br>(3,484)<br>(80,000)<br>(16,630)<br>(17,170)<br>(4,000)<br>(3,801)<br>(2,188,000 )<br>(82,855)<br>(216,561)<br>(33,259)<br>(9,000)<br>(2,654,760 )<br>(2,713,340 )|Gains and<br>losses<br>(31,000)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(31,000)|Movement<br>in funds<br>53,116<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(14,659)<br>-<br>-<br>-<br>(14,659)<br>38,457|
|---|---|---|---|---|



## **Unrestricted Designated Funds** 

Designated funds were reviewed by the Board in February 2020, and changes were applied where appropriate. These were fully agreed and are reflected above. 

## Reserves Policy 

The RESERVES POLICY requirements are calculated on the basis on three months basic running cost plus redundancy costs for core staff. 

Staff costs Office costs Redundancy payments to staff Total 

## **Restricted Funds** 

The ACRE DEFRA project is effectively core funding to enable Cheshire Community Action to work across the key rural policy themes: transport, housing, broadband, access to services and community development. 

BIG LOTTERY AWARDS FOR ALL is a project focused on supporting community buildings through navigating pandemic guidance and information. 

The PATHFINDER project funded by CHESHIRE EAST is a project that supports vulnerable adults and older people in selected rural parishes of Cheshire East. It will enable them to remain independent in their own homes and link them into the network of support and services of which they may not be aware. 

CHESHIRE EAST COUNCIL has awarded a Service Level Agreement (SLA) to Cheshire Community Council for activities that will benefit people and communities in rural East Cheshire. 

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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **13. MOVEMENT IN FUNDS - continued** 

The CWCT fund is Cheshire West Communities Together, our organisation initially acted as holding agent for their contract funds. 

The EIP fund is funded by Cheshire West and Chester Council. We provide the accountable body role for this contract and oversee payments to a number of organisations within the area of Adult Health. 

RURAL HOUSINGS NEEDS project entails Cheshire Community Action offering expert advice and support in supporting communities and other interested parties in ascertaining rural housing needs, using a variety of engagement tools. 

CHESHIRE COMMUNITY FOUNDATION awarded Cheshire Community Action a grant to support community buildings navigate the pandemic, offering technical support where appropriate. 

## **14. EMPLOYEE BENEFIT OBLIGATIONS** 

The amounts recognised in the Balance Sheet are as follows: 

|Present value of funded obligations<br>Fair value of plan assets<br>Present value of unfunded obligations<br>(Deficit)/Surplus<br>Net (liability)/asset|Defined benefit<br>pension plans<br>2021<br>2020<br>(1,208,000 )<br>(895,000)<br>1,097,000<br>949,000<br>(111,000)<br>54,000<br>-<br>-<br>(111,000)<br>54,000<br>(111,000)<br>54,000|
|---|---|



The amounts recognised in the Statement of Financial Activities are as follows: 

|Current service cost<br>Net interest from net defined benefit<br>asset/liability<br>Past service cost<br>Actual return on plan assets|Defined benefit<br>pension plans<br>2021<br>2020<br>12,000<br>16,000<br>(2,000)<br>3,000<br>-<br>-<br>10,000<br>19,000<br>172,000<br>4,000|
|---|---|



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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **14. EMPLOYEE BENEFIT OBLIGATIONS - continued** 

Changes in the present value of the defined benefit obligation are as follows: 

|Opening defined benefit obligation b/f<br>Current service cost<br>Contributions by scheme participants<br>Interest cost<br>Benefits paid<br>Actuarial (gains)/losses from changes in<br>financial assumptions|Defined benefit<br>pension plans<br>2021<br>2020<br>895,000<br>1,098,000<br>12,000<br>16,000<br>2,000<br>2,000<br>20,000<br>27,000<br>(26,000)<br>(26,000)<br>305,000<br>(222,000)<br>1,208,000<br>895,000|
|---|---|



Changes in the fair value of scheme assets are as follows: 

|Opening fair value of scheme assets b/f<br>Employer contributions<br>Contributions by scheme participants<br>Interest on plan assets<br>Actuarial gains/(losses)<br>Benefits paid|Defined benefit<br>pension plans<br>2021<br>2020<br>949,000<br>969,000<br>39,000<br>39,000<br>2,000<br>2,000<br>22,000<br>24,000<br>111,000<br>(59,000)<br>(26,000)<br>(26,000)<br>1,097,000<br>949,000|
|---|---|



The amounts recognised in other recognised gains and losses are as follows: 

|Actuarial (gains)/losses from changes in<br>financial assumptions<br>Actuarial gains/(losses)|Defined benefit<br>pension plans<br>2021<br>2020<br>(305,000)<br>222,000<br>111,000<br>(59,000)<br>(194,000)<br>163,000|
|---|---|



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## **CHESHIRE COMMUNITY COUNCIL TRADING AS CHESHIRE COMMUNITY ACTION** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** 

## **14. EMPLOYEE BENEFIT OBLIGATIONS - continued** 

The major categories of scheme assets as a percentage of total scheme assets are as follows: 

|Equities<br>Bonds<br>Property<br>Cash|Defined benefit<br>pension plans<br>2021<br>2020<br>39%<br>35%<br>45%<br>47%<br>11%<br>8%<br>5%<br>10%<br>100%<br>100%|
|---|---|



Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages): 

||2021|2020|
|---|---|---|
|Discount rate|2.05%|2.30%|
|Future salary increases|3.50%|2.50%|
|Future pension increases|2.80%|1.80%|



## **15. RELATED PARTY DISCLOSURES** 

There were no related party transactions for the year ended 31 March 2021. 

## **16. LEGAL STATUS OF THE CHESHIRE COMMUNITY COUNCIL** 

Cheshire Community Council is a company limited by guarantee and has no share capital. The liability of each 

## **17. APB ETHICAL STANDARDS** 

In common with many other businesses of our size and nature we use our accountants to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. 

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