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2023-03-31-accounts

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

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 26
Detailed Statement of Financial Activities 27 to 28

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 2023. 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

The Charitable Objects of the Rural Community Council (Leicestershire & Rutland) (RCC) are 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.

More specifically the RCC's mission is 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.

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 the beneficiaries.

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

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 Engagement and Voluntary Sector Support

Representation

Social investment

Social investment does not form a material part of the charitable and investment activities of the RCC.

Page 1

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

OBJECTIVES AND ACTIVITIES

Grant Making

The RCC does not make grants from its own funds or reserves. Grant programmes are delivered on behalf of partners, including local authorities.

Where this is the case, policy on grants, including eligibility, application processes and transparency are agreed on a case-by-case basis with the funder.

Where grant funds are held by the RCC, they are held as restricted funds and detailed as such in the annual accounts.

Volunteers

The RCC does not routinely use volunteers in the day-to-day operations of the charity.

STATEMENT OF DISCLOSURE TO AUDITORS

As 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 2

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

ACHIEVEMENT AND PERFORMANCE Achievement and Performance

Rural Coffee Connect

The RCC continued to deliver this self-funded project aimed at reducing loneliness and isolation through the mobile provision of a barista style coffee van. The project delivered sessions in rural communities in both Leicestershire and Rutland, engaging with more than 2000 individuals.

Changing Connections

Delivery of the second year of a project to support individuals to improve the local connections and support systems they have in place, reducing the demand on the NHS, emergency services and other organisations. Individuals supported in this year exceed 50, against an initial target of 37.

Warm, Optimistic and Welcome

A new project launched to support individuals with fuel poverty, access to warm spaces and basic skills in relation to fuel budgeting and usage.

Work. Live. Leicestershire

In partnership with six other sector organisations delivered against a £4.2M European Social Investment Fund grant through the Building Better Opportunities fund. Further extension of grant funding obtained to further increase activity in identifying and engaging with those furthest from the job and training market and located in rural areas. Over 400 new participants enrolled into the programme during the year.

Leicestershire Rural Partnership

Contribute to the understanding of rural community needs and action on the LRP board led by Leicestershire County Council.

Leicestershire and Leicester Enterprise Partnership

Engagement and support of the LLEP to encourage spend and investment in rural areas.

Halls Together

Support, guidance and training provided to the 300 village halls and community buildings across Leicestershire and Rutland. In depth enquiries numbered over 250 during the year. Bespoke training courses delivered to over 200 delegates.

Leicestershire and Rutland Playing Fields

Provide support and advice to over 100 community play and sport organisations.

Hinckley and Bosworth VCS support

Delivered Voluntary Sector and Volunteer support services in Hinckley and Bosworth.

Hinckley and Bosworth Grants

Distributed grants in excess of £30,000 to rural community projects across the Borough.

Page 3

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

ACHIEVEMENT AND PERFORMANCE

Fundraising activities

Individual projects undertaken by the RCC will generally have a set of output and outcome targets associated to them. Measurement and reporting of achievements vary depending on the requirements of the funder. However, the RCC will only undertake projects whose outcomes and outputs fit well with the overall objectives of the charity.

Reporting to funders and trustees show that all projects met or exceeded set targets, thus meeting the objectives of the charity.

The RCC does not set an objective for fundraising. Projects are planned and funded on a full cost recovery basis wherever possible to ensure that the sustainability of the charity is protected.

Very low value donations are received during the year in relation to the Rural Coffee Connect project, which are used to further the activity in this area.

Investment performance

The RCC continues to hold a Charities Ethical Investment portfolio with Church, Charities and Local Authorities Investment Management Ltd (CCLA) during this year. The value of investments has not grown during the year, which in the opinion of the trustees is consistent with the performance of other funds of similar risk rating and growth potential in the general market. The initial investment was made with the aim of gaining accumulated growth over the mid to long term, with a low to mid risk level.

Holdings in Cirican LLP are valued at the original investment price of £3,000.

FINANCIAL REVIEW

Financial position

The trustees consider the charity remains in a strong financial position and is able to continue to deliver its charitable objectives.

Principal funding sources

European funding delivered through the Building Opportunities Programme and managed by ViSTA represent the largest single source of charity income at £245,000. This funding is used to deliver a core project, Work. Live. Leicestershire which was scheduled to run to the end of the financial year.

Other grant funding is received through DEFRA, Leicestershire County Council, the NHS, the National Forest and Cadent Gas. The total funding from these sources is £205,000. Funded projects have varying end or renewal dates which are monitored by the trustees.

The charity also receives income through commissioned and contract delivery, which is subject to differing contract periods. Total income from this area of charitable work was £128,000.

Investment policy and objectives

The trustees have adopted a low to medium attitude to risk and have elected to invest some of its reserves in an ethical and balanced portfolio offered by CCLA. Other reserves are held in instant access, notice and fixed term accounts which provide a sufficient level of liquidity for the operation of the charitable company.

Page 4

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 and market investments in order to generate revenue income to cover day to day operational expenses. Based on the operating budget set for 2022/23 the level of unrestricted funds was set as below.

Minimum Level

Target Level

Operating costs being defined as payroll costs plus direct purchases. Redundancy costs being the statutory level for all staff employed.

Restricted reserves at the year end were:

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

As at 31 March 2023, the total funds held is £809,243 (2022: £849,447).

Going concern

The trustees consider the charity remains in a strong financial position and is able to continue to deliver its charitable objectives whilst remaining a going concern.

Funds in deficit

The trustees do not consider any funds to be materially in deficit.

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.

Page 5

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

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 selects a Chair, 2 vice chairs and a Treasurer for each annual term at the AGM.

A maximum of 16 trustees is allowed as below:

Up to 14 elected from the membership.

Co-options are permitted up to the maximum of 16 trustees in total.

The trustees are also the non-executive directors who have overall control of the Charity. Operational matters are delegated to the Executive directors, of which there are two. Below this level there operates a flat management and delivery structure.

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

Induction and training of new Trustees / Directors

Policies and procedures adopted for the induction and training of trustees:

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

The Atkins Lower Bond Street Hinckley Leicestershire LE10 1QU

Page 6

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Trustees

Mr E Baines (resigned 1.6.2023) 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 Ms P Posnett Mr C Fyfe (appointed 31.10.2022)

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).

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.

Page 7

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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 30 October 2023 and signed on its behalf by:

Mr M J D Traynor OBE - Trustee

Page 8

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 2023 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:

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 9

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 10

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).

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 11

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

10 November 2023

Page 12

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
346,002
Other trading activities
3
136,286
Investment income
4
9,586
Total
491,874
EXPENDITURE ON
Charitable activities
5
Grants
4,388
Other
496,005
Total
500,393
Net gains/(losses) on investments
(3,453)
NET INCOME/(EXPENDITURE)
(11,972)
RECONCILIATION OF FUNDS
Total funds brought forward
818,181
TOTAL FUNDS CARRIED FORWARD
806,209		 Restricted
funds
£
-
125,000
7
125,007
152,920
319
153,239
-
(28,232)
31,266
3,034		 2023
Total
funds
£
346,002
261,286
9,593
616,881
157,308
496,324
653,632
(3,453)
(40,204)
849,447
809,243		 2022
Total
funds
£
316,600
198,118
7,526
522,244
47,350
395,913
443,263
(2,524)
76,457
772,990
849,447

The notes form part of these financial statements

Page 13

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

BALANCE SHEET 31 MARCH 2023

Notes
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Debtors
14
Prepayments and accrued income
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
17
Unrestricted funds:
General fund
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
2,518
172,023
174,541
9,403
1,539
735,198
746,140
(114,472)
631,668
806,209
806,209		 Restricted
funds
£
-
-
-
-
-
3,034
3,034
-
3,034
3,034
3,034		 2023
Total
funds
£
2,518
172,023
174,541
9,403
1,539
738,232
749,174
(114,472)
634,702
809,243
809,243
806,209
3,034
809,243		 2022
Total
funds
£
4,103
178,476
182,579
5,595
1,589
678,026
685,210
(18,342)
666,868
849,447
849,447
818,181
31,266
849,447

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 October 2023 and were signed on its behalf by:

Mr J H Flower - Trustee

The notes form part of these financial statements

Page 14

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
47,935
47,935
(322)
-
3,000
9,593
12,271
60,206
678,026
738,232		 2022
£
64,066
64,066
(3,979)
(175,000)
-
7,526
(171,453)
(107,387)
785,413
678,026

The notes form part of these financial statements

Page 15

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

1.
RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2023
£
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
(40,204)
Adjustments for:
Depreciation charges
1,907
Losses on investments
3,453
Interest received
(9,593)
(Increase)/decrease in debtors
(3,758)
Increase/(decrease) in creditors
96,130
Net cash provided by operations
47,935
2.
ANALYSIS OF CHANGES IN NET FUNDS		 2022
£
76,457
6,506
2,524
(7,526)
3,739
(17,634)
64,066
At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank 678,026 60,206 738,232
678,026 60,206 738,232
Total 678,026 60,206 738,232

The notes form part of these financial statements

Page 16

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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, as modified by the revaluation of certain assets.

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.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

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.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 17

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES - continued

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

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.

2. DONATIONS AND LEGACIES

Membership and donations
Grants		 2023
£
4,218
341,784
346,002		 2022
£
4,538
312,062
316,600

continued...

Page 18

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. DONATIONS AND LEGACIES - continued

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

Leicestershire County Council
DEFRA/ACRE
Leicestershire NHS
Hinckley & Bosworth Borough Council
VISTA - Will project
Playing Fields Association
National Lottery Community Fund
Coronavirus Job Retention Scheme
National Association for Voluntary and Community Action
Awareness
Market Bosworth PC
BrightSparks
Houghton PC
3.
OTHER TRADING ACTIVITIES
Services and project work
4.
INVESTMENT INCOME
Deposit account interest
5.
CHARITABLE ACTIVITIES COSTS
Grants		 2023
2022
£
£
11,199
44,059
41,200
42,200
37,250
27,561
4,000
-
236,690
149,297
2,145
-
-
36,413
-
6,977
-
3,000
1,500
4,955
2,400
(2,400)
3,000
-
2,400
-
341,784
312,062
2023
2022
£
£
261,286
198,118
2023
2022
£
£
9,593
7,526
Grant
funding of
activities
(see note
6)
£
157,308

continued...

Page 19

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

6. GRANTS PAYABLE

£
Community Volunteer Fund 101,432
Make A Difference 18,128
Coronation 6,760
Warm Spaces 26,600
NHS 4,388
157,308

7. SUPPORT COSTS

SUPPORT COSTS
Other resources expended
Support costs, included in the above, are as follows:
Wages
Social security
Pensions
Service delivery costs
Vehicle expenses
Rates and water
Insurance
Rent and service charge
Computer costs
Postage and stationery
Sundries
Legal fees
Travel and subsistence
Depreciation of tangible fixed assets
Auditors' remuneration		 Support
Governance
costs
costs
£
£
490,824
5,500
2023
Other
resources
expended
£
371,151
25,364
19,092
9,300
2,134
8,513
5,123
21,770
10,526
3,598
1,268
1,960
9,118
1,907
5,500
496,324		 Totals
£
496,324
2022
Total
activities
£
289,834
17,837
14,117
13,065
1,789
3,560
4,797
21,877
8,506
3,327
1,926
181
3,824
6,506
4,767
395,913

continued...

Page 20

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

8. NET INCOME/(EXPENDITURE)

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

2023 2022
£ £
Auditors' remuneration 5,500 4,767
Depreciation - owned assets 1,907 6,505
Hire of plant and machinery 9,300 13,065
Other operating leases 2,134 1,789

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no Trustee's remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no Trustee's expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
371,151
25,364
19,092
415,607		 2022
£
289,834
17,837
14,117
321,788

Total remuneration in relation to Key Management Personnel, included within the figures above, amounts to £82,131 (2022: £76,720)

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

2023 2022
Average number of employees 17 14

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

The charitable company operates a pension scheme for the benefit of employees. The assets of the scheme are held separately from those of the company within independently administered funds. Contributions are charged to the Statement of Financial Activity in the period to which they relate. The charge for the year was £19,092 (2022: £14,117).

continued...

Page 21

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - 31
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
295,767
Other trading activities
119,505
Investment income
7,523
Total
422,795
EXPENDITURE ON
Charitable activities
Grants
-
Other
343,217
Total
343,217
Net gains/(losses) on investments
(2,524)
NET INCOME/(EXPENDITURE)
77,054
Transfers between funds
(31,863)
Net movement in funds
45,191
RECONCILIATION OF FUNDS
Total funds brought forward
772,990
TOTAL FUNDS CARRIED FORWARD
818,181		 MARCH 2022
Restricted
funds
£
20,833
78,613
3
99,449
47,350
52,696
100,046
-
(597)
31,863
31,266
-
31,266		 Total
funds
£
316,600
198,118
7,526
522,244
47,350
395,913
443,263
(2,524)
76,457
-
76,457
772,990
849,447

continued...

Page 22

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

12.
TANGIBLE FIXED ASSETS
Fixtures
and
Motor
Computer
fittings
vehicles
equipment
£
£
£
COST
At 1 April 2022
12,355
15,295
10,571
Additions
110
-
212
At 31 March 2023
12,465
15,295
10,783
DEPRECIATION
At 1 April 2022
11,902
15,295
6,921
Charge for year
253
-
1,654
At 31 March 2023
12,155
15,295
8,575
NET BOOK VALUE
At 31 March 2023
310
-
2,208
At 31 March 2022
453
-
3,650
13.
FIXED ASSET INVESTMENTS
Listed
Unlisted
investments
investments
£
£
MARKET VALUE
At 1 April 2022
172,476
6,000
Disposals
-
(3,000)
Revaluations
(3,453)
-
At 31 March 2023
169,023
3,000
NET BOOK VALUE
At 31 March 2023
169,023
3,000
At 31 March 2022
172,476
6,000
There were no investment assets outside the UK.
Cost or valuation at 31 March 2023 is represented by:		 Totals
£
38,221
322
38,543
34,118
1,907
36,025
2,518
4,103
Totals
£
178,476
(3,000)
(3,453)		 Totals
£
38,221
322
38,543
34,118
1,907
36,025
2,518
4,103
172,023
172,023
178,476
Listed
Unlisted
investments
investments
£
£
Valuation in 2023
169,023
-
Cost
-
3,000
169,023
3,000		 Totals
£
169,023
3,000
172,023

continued...

Page 23

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

13. FIXED ASSET INVESTMENTS - continued

The unlisted investment was originally recognised at £6,000 with a £3,000 deferred payment classed as a creditor. The deferred payment is no longer applicable and therefore the unlisted investment is now recognised at the original cost of £3,000.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
VAT
Other creditors
Accruals and deferred income
16.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one and five years		 2023
£
6,000
3,403
9,403
2023
£
429
5,024
4,268
104,751
114,472
2023
£
6,344
30,134
36,478		 2022
£
-
5,595
5,595
2022
£
93
5,747
3,812
8,690
18,342
2022
£
13,785
3,446
17,231

Lease payments of £12,023 (2022: 14,233) were recognised as an expense during the year.

continued...

Page 24

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
HBBC VCS Commissioning Fund
TOTAL FUNDS
Net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
HBBC VCS Commissioning Fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Coffee Connect
HBBC VCS Commissioning Fund
TOTAL FUNDS		 follows:
Incoming
resources
£
491,874
125,007
616,881
At 1.4.21
£
772,990
-
-
-
772,990		 At 1.4.22
£
818,181
31,266
849,447
Resources
expended
£
(500,393)
(153,239)
(653,632)
Net
movement
in funds
£
77,054
(31,863)
31,266
(597)
76,457		 Net
movement
At
in funds
31.3.23
£
£
(11,972)
806,209
(28,232)
3,034
(40,204)
809,243
Gains and
Movement
losses
in funds
£
£
(3,453)
(11,972)
-
(28,232)
(3,453)
(40,204)
Transfers
between
At
funds
31.3.22
£
£
(31,863)
818,181
31,863
-
-
31,266
31,863
31,266
-
849,447

Page 25

continued...

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE & RUTLAND)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
Coffee Connect
HBBC VCS Commissioning Fund
TOTAL FUNDS		 Incoming
resources
£
422,795
20,833
78,616
99,449
522,244		 Resources
expended
£
(343,217)
(52,696)
(47,350)
(100,046)
(443,263)		 Gains and
Movement
losses
in funds
£
£
(2,524)
77,054
-
(31,863)
-
31,266
-
(597)
(2,524)
76,457

Restricted Funds

HBBC VCS Commissioning

Hinckley and Bosworth Borough Council (HBBC) commission the RCC to administer and distribute grants and commissioning monies to the Voluntary and Community Sector (VCS) across the Borough. This currently involves administration of a number of small grant schemes, namely, Making a Difference (MAD), Community Volunteer Fund (CVF), Warm Spaces Grant (WSG) and Coronation Grant (CG) The RCC market and promote the grants, undertake all administration of the applications, and make payments direct to beneficiaries. Decisions regarding grants are made by a grants panel, chaired by an elected member of HBBC and consisting of members of the VCS, including the RCC.

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 26

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
£
£
INCOME AND ENDOWMENTS
Donations and legacies
Membership and donations
4,218
-
Grants
341,784
-
346,002
-
Other trading activities
Services and project work
136,286
125,000
Investment income
Deposit account interest
9,586
7
Total incoming resources
491,874
125,007
EXPENDITURE
Charitable activities
Grants to institutions
4,388
152,920
Support costs
Support costs
Wages
371,151
-
Social security
25,364
-
Pensions
19,092
-
Service delivery costs
8,981
319
Vehicle expenses
2,134
-
Rates and water
8,513
-
Insurance
5,123
-
Rent and service charge
21,770
-
Computer costs
10,526
-
Postage and stationery
3,598
-
Sundries
1,268
-
Legal fees
1,960
-
Travel and subsistence
9,118
-
Depreciation of tangible fixed assets
1,907
-
490,505
319
Governance costs
Auditors' remuneration
5,500
-		 2023
Total
funds
£
4,218
341,784
346,002
261,286
9,593
616,881
157,308
371,151
25,364
19,092
9,300
2,134
8,513
5,123
21,770
10,526
3,598
1,268
1,960
9,118
1,907
490,824
5,500		 2022
Total
funds
£
4,538
312,062
316,600
198,118
7,526
522,244
47,350
289,834
17,837
14,117
13,065
1,789
3,560
4,797
21,877
8,506
3,327
1,926
181
3,824
6,506
391,146
4,767

This page does not form part of the statutory financial statements

Page 27

RURAL COMMUNITY COUNCIL (LEICESTERSHIRE

& RUTLAND)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
£
£
Total resources expended
500,393
153,239
Net income before gains and losses
(8,519)
(28,232)
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
(3,453)
-
Net income
(11,972)
(28,232)		 2023
Total
funds
£
653,632
(36,751)
(3,453)
(40,204)		 2022
Total
funds
£
443,263
78,981
(2,524)
76,457

This page does not form part of the statutory financial statements

Page 28