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2021-12-31-accounts

Cornwall Scrap Store

A company limited by guarantee.

Charity No. 1079557

Company No. 02981605

Trustees' Report and Unaudited Accounts

31 December 2021

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

Cornwall Scrap Store CONTENTS

Pages
Trustees' Annual Report 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9 to 16

Page 1

Cornwall Scrap Store TRUSTEES ANNUAL REPORT

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 02981605

Charity No. 1079557

Registered Office

Drinnick No 8 Goonamarris St Austell Cornwall PL26 7QX

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

Gary King Tarn Lamb

Company Secretary

Benjamin Read

Accountants

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

Bankers

Barclays Bank 10 Church Street St Austell Cornwall PL25 4AS

Page 2

Cornwall Scrap Store TRUSTEES ANNUAL REPORT

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 December 2021.

OBJECTIVES AND ACTIVITIES

The Company's objects as per the governing document are:-

4) To advance the vocational preparation, training and education of people.

5) To provide training courses, instruction and recreational and artistic facilities for people so as to develop their physical, mental and spiritual capacities in order that their conditions of life may be improved.

This is translated into charitable objects as follows:

1) By means of the distribution of donated materials to provide or assist in the provision of facilities for recreation, education and other leisure time activities for children and adults in Cornwall so that their education and social welfare is enhanced.

2) To advance education particularly in connection with the reuse of scrap and waste materials so as to protect the environment.

3) To do all such things as are incidental or conducive to the attainment of the above objects or any or them.

The trustees have had regard to the charity commission guidance on public benefit in preparing this report and have ensured that in planning activities year on year that identifiable benefits are attained for our beneficiaries

ACHIEVEMENTS AND PERFORMANCE

Despite the issues faced due to the pandemic we have continued to offer our members a fantastic resource and areconfident that we can continue operating despite the current low membership income levels. We have managed to build and maintain a decent reserve in our accounts and that should allow us to weather the temporary dip in membership uptake. However it is still hard to describe the operation as secure. Whilst CSS has faced a multitude of difficulties, during this uncertain period, we remain confident that as we begin to come out of the worst affects of the pandemic we should see membership uptake increase.

The past two years have meant that as an organisation we have been very much in survival mode, treading water so to speak and as a result not a great deal of future planning has occurred. This has also been evident in the difficulty in arranging face to face trustee meetings. This is a situation we hope to rectify as we move out from pandemic weirdness!

It remains our ambition to find ways to grow our income through membership, sponsorship and grant applications. As an organisation we need to have a hard look at how we can grow our income streams and secure the continuation of our core objects whilst seeking ways to highlight and grow the service we are offering.

Page 3

Cornwall Scrap Store TRUSTEES ANNUAL REPORT

Our board of trustees is somewhat depleted and it is imperative that we seek to grow our board of trustees beyond the two dedicated trustees that remain in place. By seeking a larger and more active board of trustees it is our hope that we can begin the process of building a plan for growing the sustainability of CSS. In order for CSS to grow we will need to explore ways to grow membership levels as well as seeking funding and sponsorship opportunities to help us to continue developing as a community resource.

During 2021 we were also unfortunate to lose the use of our secondary site in Pool on Cornwall College campus due to college redevelopment plans. It is proving difficult to find a suitable and affordable replacement for this store, but it remains a high priority as this will no doubt effect membership uptake in 2022. We also lost team member Nick Ryall who resigned for personal reasons. Because of the uncertainty surrounding income levels the decision was made to not replace this role. It remains our ambition, when finances allow, to grow the CSS team.

Overall despite what has continued to be a strange and difficult period we remain pleased that CSS is offering a valued service that remains true to our core objectives. The feedback that we receive from our membership is very encouraging and CSS continues to offer a fantastic resource to the community.

FINANCIAL REVIEW

The results for the year show a decrease in income of £4,265 to £28.358 (2020: £32,623). Expenditure has increased by £4,114 to £26,704 (2020: £22,590). Thus a surplus has been maintained of £10,033 (2020: £10,033).

The financial picture for 2021 confirms a large drop in membership incomes. This has been due in main to the uncertainty and financial pressures brought about by the global pandemic, which we believe has meant that many organisations and individuals did not renew their membership due to the difficulty of offering activities with the restrictions Covid has brought. Whilst the pandemic has offered particular and specific issues it has been the case for a number of years that CSS remains only just viable and in need of growth to assure its continued survival. Through the continued application of cautious and frugal spending and with the benefit of receiving Covid grants during 2020/2021, including furlough, we have managed to keep CSS afloat through what has been a difficult period.

PLANS FOR FUTURE PERIODS

In the short term going forward we will be concentrating on keeping our core operations strong and continue to offer a fantastic and positive service. We expect 2021 and even 2022 to be difficult, but are confident that Cornwall Scrapstore can continue to offer a great resource.

Beyond a space to simply house the Scrapstore it is has been the ambition of Cornwall Scrapstore for a while now to create a bigger hub that concentrates on the circular economy, sustainability, upcycling remaking and reuse. Housing a Scrapstore, makers spaces/resident artists, retail, cafe, tool library and workshop/meeting/conference space. We are in the process of writing a detailed project proposal

We are inspired by and would hope to deliver something like this and more …https://www.dailyscandinavian.com/worlds-first-recycling-mall-in-sweden/

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Cornwall Scrap Store is a company limited by guarantee originally incorporated as The Scrap Store on 20th October 1994. We changed to our current name on 8th June 1999 and applied for registration with the charity commission which was effective from 25th February 2000.

Our governing document is the memorandum and articles approved on incorporation in 1994.

Page 4

Cornwall Scrap Store TRUSTEES ANNUAL REPORT

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

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

Gary King Trustee

31 October 2022

Page 5

Cornwall Scrap Store INDEPENDENT EXAMINERS REPORT

Independent Examiner's Report to the trustees of Cornwall Scrap Store

I report to the charity trustees on my examination of the accounts of Cornwall Scrap Store for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Debbie Risborough Association of Chartered Certified Accountants Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS 31 October 2022

Page 6

Cornwall Scrap Store STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2021

Notes
Income and endowments
from:
Charitable activities
4
Total
Expenditure on:
Charitable activities
5
Total
Net gains on investments
Net income
6
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 Unrestricted
funds
2021
£
28,358		 Total
funds
2021
£
28,358		 Total
funds
2020
£
32,623
28,358
26,704		 28,358
26,704		 32,623
22,590
26,704
-		 26,704
-		 22,590
-
1,654 1,654 10,033
1,654 1,654 10,033
1,654
21,452		 1,654
21,452		 10,033
11,419
23,106 23,106 21,452

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 7

Cornwall Scrap Store BALANCE SHEET

at
31 December 2021
Company No. 02981605
Notes
2021
£
Fixed assets
Tangible assets
8
1,520
1,520
Current assets
Debtors
9
1,601
Cash at bank and in hand
20,470
22,071
Creditors:Amount falling due within one year
10
(485)
Net current assets
21,586
Total assets less current liabilities
23,106
Net assets excluding pension asset or liability
23,106
Total net assets
23,106
The funds of the charity
Restricted funds
11
Unrestricted funds
11
General funds
23,106
23,106
Reserves
11
Total funds
23,106		 2020
£
2,019
2,019
222
19,767
19,989
(556)
19,433
21,452
21,452
21,452
21,452
21,452
21,452

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 December 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 31 October 2022

And signed on its behalf by:

Gary King Trustee 31 October 2022

Page 8

Cornwall Scrap Store NOTES TO THE ACCOUNTS

for the year ended 31 December 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The charity constitutes a public benefit entity as defined by FRS102.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.

These are unrestricted funds earmarked by the trustees for particular Designated funds purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Page 9

Cornwall Scrap Store NOTES TO THE ACCOUNTS

Income

Income
Recognition of Income is included in the Statement of Financial Activities (SoFA) when
income the charity becomes entitled to, and virtually certain to receive, the income
and the amount of the income can be measured with sufficient reliability.
Income with Where income has related expenditure the income and related expenditure
related expenditure is reported gross in the SoFA.
Donations and Voluntary income received by way of grants, donations and gifts is included
legacies in the the SoFA when receivable and only when the Charity has
unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the
donations and gifts gift/donation to which it relates.
Donated services These are only included in income (with an equivalent amount in
and facilities expenditure) where the benefit to the Charity is reasonably quantifiable,
measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts.
Investment income This is included in the accounts when receivable.
Gains/(losses) on This includes any gain or loss resulting from revaluing investments to
revaluation of market value at the end of the year.
fixed assets
Gains/(losses) on This includes any gain or loss on the sale of investments.
investment assets
Expenditure
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any
expenditure VAT which cannot be fully recovered, and is reported as part of the
expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income,
raising funds fundraising trading costs and investment management costs.
Expenditure on These comprise the costs incurred by the Charity in the delivery of its
charitable activities and services in the furtherance of its objects, including the making
activities of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an
accrual for grants that have been approved by the trustees at the end of the
year but not yet paid.
Governance costs These include those costs associated with meeting the constitutional and
statutory requirements of the Charity, including any audit/independent
examination fees, costs linked to the strategic management of the Charity,
together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxatio

n

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

Page 10

Cornwall Scrap Store NOTES TO THE ACCOUNTS

Tangible fixed assets and depreciation

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

Motor vehicles 25% Reducing balance Fixtures and 20% Reducing balance fittings

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Intangible fixed assets and amortisation

Intangible fixed assets (including purchased goodwill, patents and trademarks) are carried at cost less accumulated amortisation and impairment losses.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Page 11

Cornwall Scrap Store NOTES TO THE ACCOUNTS

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Statement of cash flows

The charity is exempt from preparing a statement of cash flows on the grounds that it is a small charity

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 12

Cornwall Scrap Store NOTES TO THE ACCOUNTS

3 Statement of Financial Activities - prior year

Income and
endowments from:
Charitable activities
Total
Expenditure on:
Charitable activities
Total
Net income
Net income before
other gains/(losses)
Other gains and
losses:
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Total funds carried
forward
4
Income from charitable
activities
Grant Income
Co-op local
community fund
Cornwall Council
HMRC JRS Grant
Primary Purpose
Trading
Membership
income and shop
sales		 Unrestricted
£
485
10,764
3,066
14,043
28,358		 Unrestricted
funds
2020
£
32,623
32,623
22,590
22,590
10,033
10,033
10,033
11,419
21,452
Total
2021
£
485
10,764
3,066
14,043
28,358		 Total
funds
2020
£
32,623
32,623
22,590
22,590
10,033
10,033
10,033
11,419
21,452
Total
2020
£
1,620
11,484
4,032
15,487
32,623

Page 13

Cornwall Scrap Store NOTES TO THE ACCOUNTS

Expenditure on charitable 5 activities

Support Costs
Wages
Pensions
Staff welfare
Travel and
subsistence
Rent & rates
Light, heat and
power
Insurance
Repairs & renewals
Telephone and fax
IT expenses
sundry expenses
Motor vehicles
Marketing and
promotion
Consultancy fees
Bank charges
Depreciation
Governance costs
Accountancy
Independent
examination of the
charity's accounts
6
Net income before transfers
This is stated after charging:
Depreciation of owned fixed
assets		 Unrestricted
£
16,710
274
50
80
563
129
1,405
359
597
-
26
3,404
354
700
81
499
639
834
26,704
2021
£
499		 Total
2021
£
16,710
274
50
80
563
129
1,405
359
597
-
26
3,404
354
700
81
499
639
834
26,704		 Total
2020
£
15,357
-
-
1,337
899
-
856
-
668
201
176
1,547
-
-
101
663
580
205
22,590
2020
£
663

Page 14

Cornwall Scrap Store NOTES TO THE ACCOUNTS

7
Staff costs
Salaries and wages
16,710
Pension costs
274
16,984
No employee received emoluments in excess of £60,000.
Total employee benefits received by key
management personnel
15,639
The average monthly number of full time
equivalent employees during the year was as
follows:
2021
Number
Charitable activities
2
2
8
Tangible fixed
assets
Motor
vehicles
£
Cost or
revaluation
At 1 January 2021
3,500
At 31 December
2021
3,500
Depreciation and
impairment
At 1 January 2021
1,602
Depreciation
charge for the year
475
At 31 December
2021
2,077
Net book values
At 31 December
2021
1,423
At 31 December
2020
1,898
9
Debtors
2021
£
Prepayments and accrued
income
1,601
1,601		 Fixtures and
fittings
£
6,483
6,483
6,362
24
6,386
97
121		 15,357
-
15,357
10,949
2020
Number
2
2
Total
£
9,983
9,983
7,964
499
8,463
1,520
2,019
2020
£
222
222

Page 15

Cornwall Scrap Store NOTES TO THE ACCOUNTS

10 Creditors:
amounts falling due within one
year
Accruals and deferred income
11 Movement in funds
Restricted funds:
Unrestricted
funds:
General funds
Revaluation
Reserves:
Total funds
12
Analysis of net assets between
funds
Fixed assets
Net current assets		 At 1
January
2021
21,452
21,452		 2021
£
485
485
Incoming
resources
(including
other
gains/losses)
£
28,358
28,358		 Resources
expended
£
(26,704)
(26,704)
Unrestricted
funds
£
1,520
21,586
23,106		 2020
£
556
556
At 31
Decembe
r 2021
£
23,106
23,106
Total
£
1,520
21,586
23,106

13 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 16