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2021-03-31-accounts

Trustees' Annual Report for the period

Period start date Period end date 01 April 2020 31 March 2021

From

To

Section A Reference and administration details

Charity name Rural Community Council (Leicestershire & Rutland)

Other names charity is known by

RCC

Registered charity number (if any) 1077645

Charity's principal address S09, The Atkins

Lower Bond Street Hinckley Postcode LE10 1QU

Names of the charity trustees who manage the charity

----- Start of picture text -----
Name of person (or body)
Dates acted if not for
Trustee name Office (if any) entitled to appoint trustee
whole year
(if any)
1 Martin Traynor Chair
2 Alwyn Mortimer Vice Chair
3 Phillip Durban Vice Chair
4 Pat Crane
5 John Flower Treasurer
Helen Leicestershire County
6
Richardson Council
7 Edward Baines Rutland County Council
8 Janie Martin
Hillary Fryer Leicestershire District and
9
Borough Councils
10
11
12
13
14
15
16
17
18
19
20
----- End of picture text -----

Names of the trustees for the charity, if any, (for example, any custodian trustees)

Name Dates acted if not for whole year

March 2012

TAR

1

Names and addresses of advisers (Optional information)

Type of adviser Name Address

Name of chief executive or names of senior staff members (Optional information)

Kevin Butcher & Samuel Howlett – Executive Directors

Section B Structure, governance and management

Description of the charity’s trusts

Type of governing document

Memorandum and Articles of Association

How the charity is constituted

Company Limited by Guarantee

(eg. trust, association, company)

Trustee selection methods

(eg. appointed by, elected by)

Elected by membership Appointed by bodies Co-opted by Trustees

Additional governance issues (Optional information)

You may choose to include additional information, where relevant, about:

Section C Objectives and activities

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2

Summary of the objects of the charity set out in its governing document

Summary of the main activities undertaken for the public benefit in relation to these objects (include within this section the statutory declaration that trustees have had regard to the guidance issued by the Charity Commission on public benefit)

To further any charitable purpose or purposes for the benefit of those who are resident or work in the rural areas and communities of Leicestershire and Rutland.

The Trustees believe that all the activities undertaken by the charity are for the public benefit, and as part of their role as Trustees for the organisation ensure that future and proposed activities fit with the purposes of the charity, and that the charitable activities remain relevant to beneficiaries.

Trustee can confirm that they have had regard for the Charity Commission Public Benefit guides as below

The RCC aims to ensure that all those who work and live in rural communities in Leicestershire and Rutland are provided with access to a range of opportunities, services and facilities, which are sustainable and inclusive to all and are empowered to influence and manage their future.

Key elements of the RCC’s work designed to meet the charitable activity outlined above can be summarised as;

March 2012

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3

Additional details of objectives and activities (Optional information)

Youmay chooseto include
further statements, where
relevant, about:

policy on grantmaking;

policy programme related
investment;

contribution made by
volunteers.
Section D Achievements and performance

March 2012

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4

Section D Achievements and performance

Summary of the main
achievements of the
charity during the year
Community Wellbeing
o
Good Neighbour schemes continue to be assisted
to provide peer to peer support for those in need in
rural communities.
o
Suicide prevention and awareness sessions have
been delivered in Leicester City and throughout the
County
o
Wellbeing and loneliness training sessions
delivered across both counties
o
Delivered year 2 of a 2-year contract with
Leicestershire County Council to deliver the “Start
a Conversation” project aimed at raising awareness
and the prevention of suicide risk through a
structured campaign.
o
Delivered year 2 of a 3-year Lottery funded project
titled “Rural Cofee Connect” which tackles rural
isolation and loneliness through outreach, training
and the building of social capacity.

Rural Economy
o
In Partnership with 6 other sector organisations
delivered against a £2.4M European Social
Investment Fund grant through the Building Better
opportunities fund. Further grant funding of £180K
to further activity in identifying and engaging with
those furthest from the job and training market and
located in rural areas.
o
Engagement and support of the Leicester and
Leicestershire Economic Partnership to encourage
spend and investment in rural areas.

Facilities and Services
o
Provide support and guidance to the 300 or so
community owned buildings and village halls
through the RCC Community Building service.
o
Provide support and advice to over 100 community
play and sport organisations.

Community Planning
o
Provide support to rural communities in
Leicestershire & Rutland to undertake
Neighbourhood Planning process in order to
strengthen the voice and infuence of rural
communities within the planning system.

Section E Financial review

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5

Brief statement of the charity’s policy on reserves

The RCC has identified that a minimum level of unrestricted reserve funds should be set to counterbalance trading uncertainty and produce a base level for stability. Additionally, a target level of unrestricted funds will also be set to allow for growth and for the RCC to take advantage of strategic development opportunities going forward. Holding unrestricted but designated reserves will also allow the RCC to make cash investments in order to generated revenue income to cover day to day operational expenses. We have identified that the level of unrestricted funds should be set as:

Minimum Level

Target Level

Operating costs being defined as payroll costs plus direct purchases. These costs exclude those relating to Fixed term staff and activities purely related to the Restricted WiLL Project fund. Redundancy costs being the statutory level for all staff employed.

Designated funds are excluded from reserves as per the Charities Commission definition. The RCC Trustees have designated the following funds

Details of any funds materially in deficit

none

Further financial review details (Optional information)

You may choose to include additional information, where relevant about:

Section F Other optional information

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6

Section G Declaration

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s) Full name(s) Martin Traynor Position (eg Secretary, Chair Chair, etc) Date 23/08/2021

March 2012

TAR

7

REGISTERED COMPANY NUMBER: 03665974 (England and Wales) REGISTERED CHARITY NUMBER: 1077645

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

Mark J Rees LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester LE1 7RU

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

----- Start of picture text -----
Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 to 19
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RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

Objectives and aims

To further any charitable purpose or purposes for the benefit of those who are resident or work in the rural areas and communities of Leicestershire and Rutland.

The trustees believe that all the activities undertaken by the charity are for the public benefit, and as part of their role as trustees for the organisation ensure that future and proposed activities fit with the purposes of the charity, and that the charitable activities remain relevant to beneficiaries.

Trustees can confirm that they have had regard for the Charity Commission Public Benefit guides as below:

The Rural Community Council (Leicestershire and Rutland) (RCC) aims to ensure that all those who work and live in rural communities in Leicestershire and Rutland are provided with access to a range of opportunities, services and facilities, which are sustainable and inclusive to all and are empowered to influence and manage their future. Key elements of the RCC's work designed to meet the charitable activity outlined above can be summarised as;

Community Wellbeing

Rural Economy

Facilities and Services

Community Planning

STATEMENT OF DISCLOSURE TO AUDITORS

So far as the trustees/directors are aware there is no relevant audit information of which the charitable companies auditors are unaware. Additionally, the trustees/directors have taken all the necessary steps that they ought to have taken as trustees/directors in order to make themselves aware of all relevant audit information and to establish that the charitable companies auditors are aware of that information.

Page 1

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE Achievement and Performance

Community Wellbeing

Rural Economy

Facilities and Services

Community Planning

Page 2

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Reserves policy

The RCC has identified that a minimum level of unrestricted reserve funds should be set to counterbalance trading uncertainty and produce a base level for stability. Additionally, a target level of unrestricted funds will also be set to allow for growth and for the RCC to take advantage of strategic development opportunities going forward. Holding unrestricted but designated reserves will also allow the RCC to make cash investments in order to generate revenue income to cover day to day operational expenses. We have identified that the level of unrestricted funds should be set as:

Minimum Level

Target Level - Nine months operating costs - £310,000

Operating costs being defined as payroll costs plus direct purchases. These costs exclude those relating fixed term staff and activities purely related to the restricted WiLL Project fund. Redundancy costs being the statutory level for all staff employed.

Designated funds are excluded from reserves as per the Charities Commission definition. The RCC Trustees have designated the following funds

At 31 March 2021 the total funds held are £772,592 (2020: £778,058).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Rural Community Council (Leicestershire and Rutland) is a company limited by guarantee and a registered charity.

The charitable company is governed by its Memorandum and Article of Association which sets out the objects and powers of the charitable company.

In the event of the Company being wound up members will be required to contribute an amount not exceeding £10.

Recruitment and appointment of new Trustees / Directors

Trustees joining the RCC receive a full induction into the governance and operational activities of the charity. Policies and procedures are adopted across the business, so trustees receive the same information as the Executive and staff teams.

Organisational structure

The charitable company is governed by a Trustee Board which can accommodate between 3 and 16 trustees. The Board select a Chair, 2 vice chairs and a Treasurer for each annual term at the AGM.

A Scheme of Delegation clearly sets out activities and decisions that are reserved for the trustees, the Executive and the wider staff team.

The RCC is a member of Action for Communities in Rural England (ACRE).

Page 3

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Risk Management

A risk register is maintained and constantly reviewed to minimise any risks to the charity assets.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03665974 (England and Wales)

Registered Charity number

1077645

Registered office

Unit S09 The Atkins Lower Bond Street Hinckley Leicestershire LE10 1QU

Trustees

Mr E Baines Mrs P Crane Mr P H Durban Mr J H Flower Mrs H J Fryer Mrs J Martin Mr A D Mortimer Mr M J D Traynor OBE Mrs H L Richardson (resigned 30.6.2021)

Jennifer Lady Gretton DCVO JP is the President of the charitable company.

The Trustees/Directors delegate the day to day management of the charitable company to two employed Directors (distinct from the Directors of the charitable company).

Mr K Butcher and Mr S Howlett are Executive Directors of the charitable company.

Company Secretary

Mr K Butcher

Auditors

Mark J Rees LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester LE1 7RU

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Rural Community Council (Leicestershire & Rutland) 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 4

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

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:

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 3 November 2021 and signed on its behalf by:

Mr M J D Traynor OBE - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

Opinion

We have audited the financial statements of Rural Community Council (Leicestershire & Rutland) (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet 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:

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:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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:

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.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks applicable to the charity and industry in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and Charities SORP (FRS 102).

We enquired of management concerning the charities policies and procedures relating to:

We enquired of management, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.

We communicated relevant laws and regulations and potential areas of fraud to all audit team members. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, income recognition and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud.

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 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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.

Mr P Bott FCA (Senior Statutory Auditor) for and on behalf of Mark J Rees LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester LE1 7RU

4 November 2021

Page 9

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
103,451
Other trading activities
3
165,231
Investment income
4
10,460
Total
279,142
EXPENDITURE ON
Other
273,899
NET INCOME/(EXPENDITURE)
5,243
Transfers between funds
14
(114)
Net movement in funds
5,129
RECONCILIATION OF FUNDS
Total funds brought forward
767,861
TOTAL FUNDS CARRIED FORWARD
772,990		 Restricted
funds
£
39,571
-
-
39,571
49,882
(10,311)
114
(10,197)
10,197
-		 2021
Total
funds
£
143,022
165,231
10,460
318,713
323,781
(5,068)
-
(5,068)
778,058
772,990		 2020
Total
funds
£
89,374
230,145
16,301
335,820
389,177
(53,357)
-
(53,357)
831,415
778,058

The notes form part of these financial statements

Page 10

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

BALANCE SHEET 31 MARCH 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
9
1,532
Investments
10
6,000
7,532
CURRENT ASSETS
Debtors
11
9,550
Prepayments and accrued income
562
Cash at bank
775,743
785,855
CREDITORS
Amounts falling due within one year
12
(20,397)
NET CURRENT ASSETS
765,458
TOTAL ASSETS LESS CURRENT
LIABILITIES
772,990
NET ASSETS
772,990
FUNDS
14
Unrestricted funds:
General fund
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
5,098
-
5,098
-
811
9,670
10,481
(15,579)
(5,098)
-
-		 2021
Total
funds
£
6,630
6,000
12,630
9,550
1,373
785,413
796,336
(35,976)
760,360
772,990
772,990
772,990
-
772,990		 2020
Total
funds
£
16,181
6,000
22,181
8,800
8,813
767,184
784,797
(28,920)
755,877
778,058
778,058
767,861
10,197
778,058

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 3 November 2021 and were signed on its behalf by:

Mr J H Flower - Trustee

The notes form part of these financial statements

Page 11

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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, with the exception of investments which are included at market value.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

COVID-19 Grants

During the year the charity took advantage of the Government's Job Retention Scheme and small business grant in order to mitigate costs against the Coronavirus pandemic. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Therefore included within grants received is an amount of £18,814 relating to COVID-19 grants.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fee.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 33% on cost Motor vehicles - 33% on cost Computer equipment - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

continued...

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RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Operating leases

Rental under operating leases is credited to income on an accruals basis and rental expenditure under operating leases are charged to the Statement of Financial Activities on the accruals basis.

Grants Payable

Grants payable are accounted for on the accruals basis when the grant has been approved by the Trustees.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Going Concern and COVID-19

The trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

Whilst Covid-19 has impacted the charitable company's operations it has not changed its ability to continue as a going concern.

continued...

Page 13

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

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

2.
DONATIONS AND LEGACIES
Membership and donations
Grants
Grants received, included in the above, are as follows:
Leicestershire County Council
DEFRA/ACRE
Hinckley & Bosworth Borough Council
Playing Fields Association
National Lottery Community Fund
Leicestershire and Rutland Community Foundation
Coronavirus Job Retention Scheme
National Association for Voluntary and Community Action
Included within grants received is an amount of £18,814 relating to COVID-19 grants.
3.
OTHER TRADING ACTIVITIES
Services and project work
4.
INVESTMENT INCOME
Deposit account interest		 2021
£
4,694
138,328
143,022
2021
£
20,000
41,200
10,000
-
54,590
2,224
8,814
1,500
138,328
2021
£
165,231
2021
£
10,460		 2020
£
3,149
86,225
89,374
2020
£
15,000
41,800
-
5,410
24,015
-
-
-
86,225
2020
£
230,145
2020
£
16,301

continued...

Page 14

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

5. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Auditors' remuneration 3,840 4,020
Depreciation - owned assets 11,107 10,895

6. TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

There were no Trustee's expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

7. STAFF COSTS

The average monthly number of employees during the year was as follows:

2021 2020
Average number of employees 10 10

No employees received emoluments in excess of £60,000.

The charitable company operates a pension scheme for the benefit of employees. Contributions are charged to the Statement of Financial Activity in the period to which they relate. The charge for the year was £11,645 (2020: £12,632).

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - 31 MARCH 2020

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
55,359
Other trading activities
230,145
Investment income
16,301
Total
301,805
EXPENDITURE ON
Other
349,394
NET INCOME/(EXPENDITURE)
(47,589)
Transfers between funds
(15,412)		 Restricted
funds
£
34,015
-
-
34,015
39,783
(5,768)
15,412		 Total
funds
£
89,374
230,145
16,301
335,820
389,177
(53,357)
-

Page 15

continued...

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

8.
COMPARATIVES FOR THE STATEMENT OF
continued
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
9.
TANGIBLE FIXED ASSETS
COST
At 1 April 2020
Additions
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 FINANCIAL ACTIVITIES - 31 MARCH 2020
Unrestricted
Restricted
funds
funds
£
£
(63,001)
9,644
830,862
553
767,861
10,197
Fixtures
and
Motor
Computer
fittings
vehicles
equipment
£
£
£
11,679
15,295
5,713
438
-
1,118
12,117
15,295
6,831
7,786
5,098
3,622
3,952
5,099
2,056
11,738
10,197
5,678
379
5,098
1,153
3,893
10,197
2,091		 -
Total
funds
£
(53,357)
831,415
778,058
Totals
£
32,687
1,556
34,243
16,506
11,107
27,613
6,630
16,181

Page 16

continued...

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

10. FIXED ASSET INVESTMENTS

Unlisted
investments
£
MARKET VALUE
At 1 April 2020 and 31 March 2021 6,000
NET BOOK VALUE
At 31 March 2021 6,000
At 31 March 2020 6,000

There were no investment assets outside the UK.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
VAT
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
VAT
Other creditors
Accruals and deferred income		 2021
£
1,260
5,595
2,695
9,550
2021
£
294
-
3,343
32,339
35,976		 2020
£
8,700
100
-
8,800
2020
£
-
2,220
3,631
23,069		 2020
£
8,700
100
-
8,800
28,920

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2021
£
13,785
17,231
31,016		 2020
£
13,785
31,015
44,800

Lease payments of £14,162 were recognised as an expense during the year.

continued...

Page 17

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

14.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Coffee Connect
TOTAL FUNDS
Net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Coffee Connect
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Leicestershire Community Bus Partnership
Coffee Connect
TOTAL FUNDS		 At 1.4.20
£
767,861
10,197
778,058
follows:
At 1.4.19
£
830,862
553
-
553
831,415		 Net
movement
in funds
£
5,243
(10,311)
(5,068)
Incoming
resources
£
279,142
39,571
318,713
Net
movement
in funds
£
(47,589)
(553)
(5,215)
(5,768)
(53,357)		 Transfers
between
At
funds
31.3.21
£
£
(114)
772,990
114
-
-
772,990
Resources
Movement
expended
in funds
£
£
(273,899)
5,243
(49,882)
(10,311)
(323,781)
(5,068)
Transfers
between
At
funds
31.3.20
£
£
(15,412)
767,861
-
-
15,412
10,197
15,412
10,197
-
778,058

continued...

Page 18

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

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

14. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
Leicestershire Community Bus Partnership
Coffee Connect
TOTAL FUNDS
Restricted funds		 Incoming
resources
£
301,805
-
34,015
34,015
335,820		 Resources
Movement
expended
in funds
£
£
(349,394)
(47,589)
(553)
(553)
(39,230)
(5,215)
(39,783)
(5,768)
(389,177)
(53,357)

Leicestershire Community Bus

A Community Bus Partnership to increase passenger usage on four rural bus routes in Leicestershire thus enabling retention of the bus services. Funded by Leicestershire County Council.

Coffee Connect

Hitting the road in 2020, Rural Coffee Connect is a brand new barista coffee van that will travel across rural Leicestershire and Rutland popping up a safe, welcoming and informal café for people to enjoy a free cup of coffee or tea, chat and build connections in their community.

Rural Coffee Connect will also provide a focal point for delivering information, awareness training and other community activities to help combat loneliness and isolation within our rural areas.

15. RELATED PARTY DISCLOSURES

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

Page 19

Rural Community Council (Leicestershire & Rutland) Unit S09 The Atkins Lower Bond Street Hinckley Leicestershire LE10 1QU

8 November 2021 R256/EW/PPB/SEW

Dear Sirs

REPORT TO MANAGEMENT

During the course of our audit for the period ended 31 March 2021, matters arose which we consider should be brought to your attention.

Accompanying this letter is a memorandum noting these points together with any recommendations we have for possible improvements which could be made.

These matters came to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily disclose all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you.

This report has been prepared for the sole use of the board of Rural Community Council (Leicestershire & Rutland) and must not be shown to third parties without our prior consent. No responsibilities are accepted by Mark J Rees LLP towards any party acting or refraining from action as a result of this report.

We would be grateful if you could enter the company's comments against each point under the "comments" column of the memorandum and return it to us in due course.

Finally, we would like to express our thanks to all members of the company's staff who assisted us in carrying out our work.

Yours sincerely

Phillip Bott FCA BSc (Hons) Partner for Mark J Rees LLP e: pb@markjrees.co.uk

Rural Community Council (Leicestershire & Rutland)

POINTS NOTED DURING THE COURSE OF OUR AUDIT FOR THE PERIOD ENDED 31 MARCH 2021

POINTS NOTED DURING THE COURSE OF OUR AUDIT FOR THE PERIOD ENDED 31 MARCH 2021 POINTS NOTED DURING THE COURSE OF OUR AUDIT FOR THE PERIOD ENDED 31 MARCH 2021 POINTS NOTED DURING THE COURSE OF OUR AUDIT FOR THE PERIOD ENDED 31 MARCH 2021
Points noted, implication and Recommendations Comments
1.
VAT Partial Exemption – a quarterly (& annual)
calculation should be performed to determine the
portion of residual input tax reclaimable.
Residual input tax is input tax on purchases used to
make both taxable and exempt supplies. That could
be because it’s used directly to make both taxable
and exempt supplies or because it’s an overhead of
the business.
2.
During our audit of payroll it was highlighted that
the new apprentice minimum wage was not
implemented from 1stApril 2020 for at least one
employee. This could lead to misstatements in the
wages expense code but more importantly is a
breach of law and should therefore be implemented
from the start day per the HMRC website.
3.
During our purchase testing, two of our selected
samples couldn’t be vouched to purchase invoices.
These transactions were credit card/small receipt
transactions. Please ensure that all receipts are kept
in the future, regardless of how small the
transaction is.