T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
Annual report and financial statements
for the year ended 31 March 2022
Company number 04429778 Charity number 1095919
T H E F A R M I N G C O M M U N I T Y N E T W O R K
( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| Pages | |
|---|---|
| Directors and advisers | 2 |
| Statement of public benefit | 3 |
| Introduction from Chairman | 4 |
| Introduction from CEO | 5 |
| Directors’ report | 6 – 9 |
| Independent Examiner’s report | 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 18 |
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
CONSTITUTION
The Farming Community Network (“FCN”) is a company limited by guarantee and a registered charity governed by its memorandum and articles of association dated 2 May 2002. In the event of the organisation being wound up each trustee agrees to contribute £1 towards the costs of dissolution. The company is also registered with the Charity Commission for England & Wales. Charity number 1095919. Company number 04429778.
DIRECTORS
The directors of the charitable company are its trustees for the purposes of charity law. The directors serving during the year and since the year end were as follows:
Mark A E Suthern (Chairman) Sally Steadman Giles Bowring The Revd Canon Barbara Clutton Peter Havers David Lodder (Treasurer) Bishop Mark Rylands Olivia Seccombe Sir Mark Hudson Bishop Dr Helen-Ann Hartley (resigned 26 January 2022) Robert D Walrond (appointed 28 January 2022) Barbara A A P Bray (appointed 1 March 2022)
SECRETARY
Deborah Roe
REGISTERED OFFICE AND OPERATIONAL ADDRESS
Manor Farm West Haddon Northamptonshire NN6 7AQ
INDEPENDENT EXAMINERS
Guest Wilson Chartered Accountants 8 Wolverton Road Snitterfield Stratford upon Avon Warwickshire CV37 0HB
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
STATEMENT OF PUBLIC BENEFIT
“The Objects of the Charity are the relief of hardship and distress, amongst persons living and working in the agricultural, horticultural and related communities, by the provision of pastoral and practical support underpinned by a Christian ethos.”
All services are made available to those in need from all faiths and none in a non-judgemental, nonproselytising but supportive way.
Public Benefits
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National Helpline : The national confidential helpline is open from 7 am to 11 pm every day of the year, staffed by a team of volunteers. Talking with someone who understands farming but is not directly involved in the situation can be a real support in itself, but when appropriate, callers are offered a visit from an FCN volunteer by referral through the co-ordinator local to the caller
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Volunteers : Around 400 volunteers who are ‘in sympathy’ with the Christian ethos, suitably experienced and in-touch with rural and farming issues, are recruited, DBS checked and appropriately trained to ‘walk with’ farmers and their families through times of stress and personal difficulty. Referrals to individual volunteers are made through the local FCN County Co-ordinator who is also responsible for the co-ordination and training of volunteers within their Group and liaison with their Regional Director and Head Office for all administrative and policy issues.
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Christian ethos: The Charity has a clear Christian ethos which is inherent within its foundation, board of trustees and charitable objects, which is reflected in its published Vision and Ethos Statements, whilst sustaining the principle that all services are made available to those in need from all faiths and none in a non-judgemental, non-proselytising but supportive way.
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Partnerships: • To ensure national coverage, and to respect the territories of other independent farming and rural support services, FCN has ‘memoranda of understanding’ with those organisations that facilitate cross referrals of clients, access to the FCN Helpline, sharing of expertise and experience and consortia bidding from national funding sources
• ‘Farming Help’ has been established and underpinned with a ‘memorandum of understanding’ between the FCN, Royal Agricultural Benevolent Institution (RABI), Royal Scottish Agricultural Benevolent Institution (RASBI) and the Addington Fund, to ensure that the specialist remits of each charity are fully recognised, cross referrals can flow easily, joint funding proposals to national bodies can be co-ordinated and clients are exposed to a seamless service of support.
- Uptake : The demand for FCN’s services fluctuates with the level of causal factors within the industry, so that through a national crisis such as the foot and mouth epidemic in 2001, the scale can be almost overwhelming. However the nature of farming is such that even when the industry is operating under ‘normal’ conditions, individual businesses and families will experience periods of significant stress because of circumstances specific to the family or business so that a steady demand on FCN volunteers to manage between 1,500 and 2,500 cases per year is typical.
Further statistical details of uptake, nature of the difficulty and routes of referral are described later in this document.
Details of FCN’s services, operations and policies are available on the website at:
www.fcn.org.uk
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Introduction from FCN’s Chairman – Mark Suthern
UK agriculture is undergoing some of the most significant changes it has seen in the last fifty years. Change is often scary, challenging and takes considerable time to implement. But change is also exciting – it is how we innovate, create new opportunities and adapt to changing circumstances.
Over the last couple of years we have all been reminded of the importance of reliable supply chains and systems of food production. Labour shortages, high input costs and the growing energy crisis to name but a few have put significant pressure on farmers from across all sectors. We especially feel immense sadness for our friends in Ukraine and other countries impacted by war. We hope and pray for an end to this conflict and for the safety and health of all those affected. The way our industry looks ten years from now could be considerably different from how it looks today. We must work together to ensure agriculture and its associated professions attract the best talent, and is seen as being a desirable, profitable and rewarding industry to work in.
There should be a place for everyone in agriculture, including those taking their first steps into farming and those who have farmed for many years. Generational family farms remind us all of the strong farming tradition across the UK, and the ongoing legacy many families are continuing to build upon. In addition, new entrants should be empowered to enter our industry and mentored and equipped with the skills and knowledge required to succeed and flourish.
We are delighted in FCN to be playing our part in creating a more inclusive and accessible industry in the work that we do. We are championing diversity and inclusivity within our charity; we are making conscious efforts to work with a wide range of people from different walks of life; and we are actively involving ourselves in schemes and initiatives to bring people into our industry who may not be from farming backgrounds. Greater education of the public and further collaboration is necessary in creating a thriving agricultural industry that is respected and understood by all.
Connecting and empathising with others is a significant part of what we do within FCN. Our dedicated volunteers are trusted to ‘walk with’ farmers, who let us into their lives and share with us the pressures they may be under. We are privileged to be in the position we are in and have been described as a ‘lifeline’ by those we have helped.
I would like to sincerely thank all of those who work with our charity, as well as everyone who supports us and raises awareness. As we continue to grow as a charity, we hope that you will continue to walk alongside us on this journey, helping to ensure that our essential industry is able to thrive now and in the years to come.
Mark Suthern 27 June 2022
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A positive approach to change - FCN CEO, Dr Jude McCann
I am delighted by the extraordinary support for The Farming Community Network we have seen this year. In a period of rapid change for our industry, people within our farming community are having to think about the future, make difficult decisions and find ways of ensuring their businesses are sustainable in the months and years to come. There is arguably a greater need for charities like FCN than ever before, providing support and a vital listening ear, and we must all do our part to support our nation's farmers through this challenging time. Our work within FCN is proactive and we adopt a positive approach to change. We understand that farming can be tough and has unique occupational challenges - but at its heart, there is no industry more essential, and farming is often an incredibly rewarding way of life. We all rely on farmers three times a day; we shouldn't overlook the integral role farmers play in producing our food, looking after livestock and cultivating and tending to our beautiful countryside.
On a clear-skied day, when we have recently seen the incredible contrast of blue and yellow from the oilseed rape blanketing our many fields in rural areas across the country, we cannot help but be reminded of our friends in Ukraine, who provide such a vital supply of food and resources to many parts of the world. We continue to hope and pray for those impacted by this terrible war. As we look to the future, we recognise that farmers across the globe are indispensable; and must be empowered and supported to live and farm well.
I would like to give my sincere thanks to all our dedicated volunteers, staff and board members for their time, effort and vital support for our charity. I would also like to thank our generous donors and funders; without your support, FCN simple would not be here today. We are grateful for everything you do in support of our world-class farmers and our most essential industry.
I hope you enjoyed reading this report. Take care and stay safe.
Jude McCann 27 June 2022
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
DIRECTORS’ REPORT
The directors, who are also the trustees, present their report and accounts for the year ended 31 March 2022.
OUR MISSION
Our mission is to provide pastoral and practical support to the farming community.
OUR APPROACH
We offer independent, objective and personal support to build resilience and stay strong through changing times. We aim to provide help before problems arise, as well as supporting those who are experiencing difficulty or crisis.
We do this in four ways:
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Through our confidential Helpline, open every day from 7am – 11pm
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Through our wide network of local volunteers and partners
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Through our FarmWell initiative – an information resource on all aspects of personal and farm business resilience
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Through highlighting the issues being experienced by our farming communities and increasing awareness of FCN
OUR ETHOS
FCN is a voluntary organisation and charity founded on Christian principles. We walk with farmers and members of the farming community in times of difficulty. We are here to support and work with everyone who seeks the help of FCN.
Our strategic priorities
Helping to improve the health and wellbeing of our farm community
This year FCN has helped to support the health and wellbeing of the farm community in a wide variety of ways.
FINANCIAL REVIEW 2021-22
This past year has seen the devastating war in the Ukraine impacting the entire world, a continuing rise in the cost of living and covid-19 still prevalent in the UK, highlighting how crucial the need is for Charities.
At the beginning of this financial year, we were unsure how the year would progress; however, it was another positive year for FCN with an end of year surplus of £198,603. This was achieved in the main by the very high level of legacy income during the year and the inability to run a full events programme owing to continuing covid restrictions resulting in a decrease of anticipated and actual expenditure.
Now into our third year of our 5-year strategy we are seeing an increase in the demand for our services. Additional training programmes have been created both for our corporate partners and individuals, designed to help those who work within the farming community build resilience for ongoing challenges.
FCN has no endowment income and is reliant on the income it can raise each year, of which the legacy income is the most unpredictable. With the increase in its reserves generated during the year the trustees have set aside a sum of £500,000 to ensure the continuing future of FCN.
Income
Income for the year 2021-22 reached £966,279, an increase of approximately 23% based on the previous year.
Income from legacies has been the most significant increase this year, most of which, residual income from an ongoing legacy. In total FCN received £375,096 during the year. It is important to note that legacy donations are extremely unpredictable.
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
As lockdown restrictions were lifted, we saw further increases from external groups with income reaching £100,648. Church donations reached £45,150 and corporate income reached £79,329.
A further increase came in public funding of 6% based on the previous year, with FCN receiving £134,608.
FCN saw decreases in income from events and activities with a fall of 10% compared to the previous year (£63,351 received), individuals saw a fall of 13% (72,439 received) and trust funding fell in the year by 74% (£82,185 received).
Expenditure
As society began to return to a more normal, pre-covid existence, with lockdown restrictions being eased and people wanting to reconnect with one another, expenses increased for FCN by 28% compared to the previous year. FCN has also had a restructure which has resulted in more resources being directed toward local and regional support.
The result in the increase in income and expenditure, is that FCN finished with a net income of £198,603 for the year. This positive result combined with previous years produced a cash balance of £809,921, and £546,620 invested. Some of that surplus is allocated to restricted funding and to designated projects. FCN has a policy of protecting core activities to ensure that it can continue to provide support, even if the project funding falls short of expectations.
While the improvement of FCN’s financial position is appreciated, and we are extremely grateful to all donors for their continued generosity, this must not lead to an over reliance on certain funding streams. FCN will still need to continue to generate funding to enable it to operate. Reconnecting events held during this year are beginning to connect with those most difficult to reach in our farm communities and in turn raise awareness of our Charity.
Governance
Over the past few years, the trustees have been strengthening the governance of FCN with the formation of committees dealing with Governance, Audit and Risk, Nominations, and Investment with each committee being authorised to make recommendations to the Board.
LEGAL AND ADMINISTRATIVE INFORMATION
The Farming Community Network is a company limited by guarantee and a registered charity governed by its memorandum and articles of association dated 8 May 2013. In the event of the organisation being wound up each trustee agrees to contribute £1 towards the costs of dissolution. The company is also registered with the Charity Commission for England & Wales.
OBJECTIVES AND ACTIVITIES
The company limited by guarantee now known as The Farming Community Network took over the assets and activities on 1 June 2002 of the unincorporated charity Farm Crisis Network which was founded in 1995 by the Arthur Rank Centre and Agricultural Christian Fellowship.
The Memorandum of Association states:
“The objects of the charity are the relief of hardship and distress, amongst persons living and working in the agricultural, horticultural and related communities, by the provision of pastoral and practical support underpinned by a Christian ethos.”
The activities of FCN are available to all in the agricultural and related spheres of life providing the following services:
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Pastoral and practical support, care and listening to people in crisis (by phone, face to face or through the internet)
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Information and networking service to people, primarily through on-farm visiting with a holistic approach to both farm household and business
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- Advocacy on behalf of such people (e.g. for tenant farmers in discussion with landlords’ agents or for farmers in discussion with banks, creditors or regulatory agencies)
APPOINTMENT OF DIRECTORS
The maximum number of directors is 12. The Articles of Association were amended by Special Resolution on 30[th] October 2019 to reduce the maximum length of continuous service to 9. One of the directors should be nominated by the Agricultural Christian Fellowship and 1 nominated by the Arthur Rank Centre. One third of the Board of Directors should retire at each Annual General Meeting.
DIRECTOR INDUCTION AND TRAINING
New directors undergo training as to their legal obligations under charity and company law and are presented with copies of the Memorandum and Articles of Association as well as FCN policy documents which have been approved by the Board. The induction process involves meeting the national staff and other directors. Directors are encouraged to attend training events every 3 years.
ORGANISATION
The Board of Directors meets quarterly to administer the charity and receive reports on finance, activities and fundraising. Other items are reported as necessary. Day to day management of FCN is delegated by the Board to the Chief Executive.
RELATED PARTIES
FCN has no related parties; however close working relationships are maintained with the Arthur Rank Centre and the Agricultural Christian Fellowship. One director is nominated by ARC and one by ACF for representation on the Board of FCN.
RISK MANAGEMENT
The Board has undertaken a review of risk and the identified causes have been categorised as relating to:
People Property & finance Reputation
The review of risks has led to the implementation of policies aimed at lowering the risks to which FCN is exposed as well as designated procedures should an incident occur. The Risk Management policy document is reviewed regularly and updated to ensure it is as up to date as possible.
LOOKING AHEAD: OUR FUTURE STRATEGY 2020-2025
FCN is currently developing a five-year strategy for the organisation. While there is little doubt that the farming community will continue to experience significant change and restructuring, FCN remains steadfast in supporting those who need help in the farming community. While farming families will have to adapt and change so too will FCN. Together we face the future with hope, optimism and a renewed commitment to serve those who seek our support.
Our strategic priorities:
External:
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Improve the health and wellbeing of the farming community
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Support farm businesses through change and build resilience
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Connect the farming community to appropriate support
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Inform future policy decisions by being a champion for the farming community
Internal:
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Develop the skills, support and duty of care for volunteers delivering our front-line services
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- Build awareness and engagement of FCN in the agricultural community
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Ensure the financial sustainability of FCN
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Refine our operations and organisation to stay relevant in a changing industry
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
Be a catalyst for shaping future agricultural support services in the UK
DIRECTORS’ RESPONSIBILITIES FOR THE ACCOUNTS
The Directors are required to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit for that period. In preparing those accounts the Directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011 and other applicable law and regulations. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
GOING CONCERN
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in note 1 of the financial statements.
Signed on behalf of the Directors on 27 June 2022.
D Roe Secretary
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
INDEPENDENT EXAMINER’S REPORT to the Trustees of The Farming Community Network
I report on the financial statements of The Farming Community Network for the year ended 31 March 2022 on pages 9 to 17.
This report is made solely to the company’s members as a body, in accordance with the Companies Act 2006. Our work has been undertaken so that we might state to the company’s members those matters we are required to state to them in our 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 company and the company’s members as a body, for our examination work, for this report, or for the opinions we have formed.
Respective responsibilities of Trustees and examiner
As described on page 8 the company's directors (Trustees) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. The Trustees consider that an audit is not required for this year under the Charities Act 2011, s.144(2) (“the 2011 Act”) and that an independent examination is needed. I am qualified to undertake the examination, being a qualified member of ICAEW.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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Examine the accounts under s.145 of the 2011 Act;
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To follow the procedures laid down in the general Directions given by the Charity Commission under s.145(5)(b) of the 2011 Act; and
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To state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with the Companies Act 2006 s.386; and
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to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Companies Act 2006, s.396 and the methods and principles of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
NAME: NEIL WILSON
RELEVANT PROFESSIONAL QUALIFICATION OR BODY: ICAEW
8 Wolverton Road, Snitterfield, Stratford upon Avon, CV37 0HB 27 June 2022
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( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
T H E F A R M I N G C O M M U N I T Y N E T W O R K
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
for the year ended 31 March 2022
| General | Designated | Restricted | Total | Total | ||
|---|---|---|---|---|---|---|
| Notes | Unrestricted funds £ |
Unrestricted funds £ |
funds £ |
2022 £ |
2021 £ |
|
| INCOME | ||||||
| Donations and legacies | 3 | 713,371 | - | 181,715 | 895,086 | 705,397 |
| Income from charitable activities | ||||||
| Resourcing programmes | 63,351 | - | - | 63,351 | 70,087 | |
| Income from other trading activities | ||||||
| Investment income | 7,842 | - | - | 7,842 | 11,437 | |
| Total income | 784,564 | - | 181,715 | 966,279 | 786,921 | |
| EXPENDITURE | 6 | |||||
| Cost of raising funds | 36,524 | - | 15,946 | 52,470 | 51,059 | |
| Charitable activities | 229,516 | - | 269,188 | 498,704 | 410,607 | |
| Governance | 134,606 | - | 81,896 | 216,502 | 139,341 | |
| Total expenditure | 400,646 | - | 367,030 | 767,676 | 601,007 | |
| Net income/(expenditure) | 383,918 | - | (185,315) | 198,603 | 185,914 | |
| Net transfers between funds | 56,423 | (56,423) | - | - | - | |
| Realised and unrealised gians/(losses) on | ||||||
| investments | 4,448 | - | - | 4,448 | - | |
| NET MOVEMENT IN FUNDS | 444,788 | (56,423) | (185,314) | 203,051 | 185,914 | |
| Fund balances brought forward | 15 | 623,200 | 294,563 | 242,361 | 1,160,124 | 974,210 |
| FUND BALANCES CARRIED FORWARD | 15 | 1,067,988 | 238,140 | 57,047 | £ 1,363,175 | £ 1,160,124 |
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
BALANCE SHEET as at 31 March 2022
| BALANCE SHEET as at 31 March 2022 |
|||
|---|---|---|---|
| Notes | 2022 | 2021 | |
| £ | £ | ||
| FIXED ASSETS | |||
| Tangible assets | 10 | 28,774 | 5,634 |
| Investments | 11 | 546,620 | - |
| 575,394 | 5,634 | ||
| CURRENT ASSETS | |||
| Debtors | 12 | 18,455 | 13,850 |
| Bank and cash balances | 809,921 | 1,171,401 | |
| 828,376 | 1,185,251 | ||
| CREDITORS: amounts falling due within one year | 13 | (40,595) | (30,761) |
| NET CURRENT ASSETS | 787,781 | 1,154,490 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 1,363,175 | 1,160,124 | |
| CREDITORS: amounts falling due after more than one year | 14 | - | - |
| £ 1,363,175 | £ 1,160,124 | ||
| INCOME FUNDS | |||
| Unrestricted funds | |||
| General | 16 | 1,067,988 | 623,200 |
| Designated | 16 | 238,140 | 294,563 |
| Restricted funds | 16 | 57,047 | 242,361 |
| £ 1,363,175 | £ 1,160,124 |
The Trustees have acknowledged their responsibilities for: selecting suitable accounting policies and then applying them consistently; observing the methods and principles in the Charities SORP; making judgements and estimates that are reasonable and prudent; stating whether applicable UK accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and preparing the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102), effective 1 January 2015 and the Companies Act 2006. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Directors on 27 June 2022 and signed on their behalf by:
M A E Suthern Director
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
NOTES TO THE FINANCIAL STATEMENTS
at 31 March 2022
1 ACCOUNTING POLICIES
Company and charitable status
The Farming Community Network, a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having a share capital. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The charity is a registered charity. The registered office is given on page 2.
Basis of preparation and assessment of going concern
The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102), effective 1 January 2015 and the Companies Act 2006.
In preparing the accounts, the Directors have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. At the date of transition in applying the requirements of FRS 102 no adjustments were required.
The Directors consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. Free unrestricted reserves of FCN at the year-end amount to £1,091,128. After consideration of the current business plan to 2021/22 and with a balanced budget planned for the next two financial years, the Trustees consider there is a reasonable expectation that FCN has adequate resources to continue in operational existence for the foreseeable future. The Trustees are also satisfied with the controls in place for monitoring and flexing the budget throughout the year. There are no material uncertainties that would impact on the charity’s ability to continue. Accordingly we continue to adopt the going concern basis in preparing this annual report and financial statements.
Investments and investment income
Investments are stated at fair value (market value) at the balance sheet date. Any gains or losses on the revaluation are taken to the Statement of Financial Activities. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the end of the year and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities. Investment income is accounted for on the basis of amounts received during the year. Interest on cash balances is accrued to the accounting date.
Funds
General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds are unrestricted funds set aside by the Directors out of unrestricted general funds for specific future purposes or projects. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund.
Incoming resources
Incoming resources are included in the Statement of Financial Activities when receivable and when the amount can be quantified with reasonable accuracy. The value of unpaid voluntary services provided by individuals has not been included.
Resources expended
Resources expended are recognised in the period in which they are incurred under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they are allocated to activities on a basis consistent with use of the resources. Resources expended include attributable VAT which cannot be recovered.
13
T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
Taxation
FCN is a registered charity and is not subject to taxation on its income so long as this is used for its charitable activities.
Fixed assets and depreciation
All fixed assets are initially recorded at cost. Depreciation is provided on all fixed assets at rates calculated to write off the cost, less estimated residual value based on prices prevailing at the date of acquisition, of each asset evenly over its expected useful life as follows:
- Office equipment - 3 years straight line
2 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charity’s accounting policies, which are described in note 1, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The Directors do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
| 3 INCOME– DONATIONS AND LEGACIES |
General | |||
|---|---|---|---|---|
| Unrestricted | Restricted | 2022 | 2021 | |
| Voluntary income | £ | £ | £ | £ |
| From churches | 42,707 | 2,443 | 45,150 | 32,645 |
| From individuals and other organisations | 133,532 | 39,555 | 173,087 | 153,207 |
| Legacies | 374,087 | 1,010 | 375,096 | 15,775 |
| Gift aid tax refunded | 5,632 | - | 5,632 | 5,616 |
| Grants received (see note 4) | 157,414 | 138,707 | 296,121 | 498,154 |
| 713,371 | 181,715 | 895,086 | 705,397 |
14
T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
| 4 GRANTS RECEIVED |
General | |||
|---|---|---|---|---|
| Unrestricted | Restricted | 2022 | 2021 | |
| £ | £ | £ | £ | |
| DEFRA and Regional Development Agencies | - | 133,000 | 133,000 | 75,000 |
| Mercer Family | 40,000 | - | 40,000 | - |
| EWG Charitable Trust | 10,000 | - | 10,000 | - |
| Hutchinson Charitable Trust | 8,000 | - | 8,000 | 8,000 |
| P D Hook Ltd | 7,500 | - | 7,500 | - |
| Hook 2 Sisters | 7,500 | - | 7,500 | - |
| Prince’s Countryside Fund | 2,435 | 4,100 | 6,535 | 6,111 |
| HR Department | 6,206 | - | 6,206 | - |
| AB Connect | 5,133 | - | 5,133 | - |
| Agri | 4,000 | - | 4,000 | - |
| Anonymous | 3,673 | - | 3,673 | 515 |
| Bagshaws | 3,600 | - | 3,600 | - |
| Ricardo | 3,375 | - | 3,375 | - |
| Wales – North Coop Local Community Fund | 3,343 | - | 3,343 | - |
| Leicestershire Coop Local Community Fund | 3,140 | - | 3,140 | - |
| Procam | 3,000 | - | 3,000 | - |
| The Worshipful Company of Farmers | 2,750 | - | 2,750 | 2,750 |
| Northamptonshire Coop Local Community Fund | 2,546 | - | 2,546 | - |
| Hunt Forest Group | 2,440 | - | 2,440 | - |
| Betty Lawes Foundation | 2,000 | - | 2,000 | 5,000 |
| Forest Hill Charity | 2,000 | - | 2,000 | 2,000 |
| The Paget Charitable Trust | 2,000 | - | 2,000 | - |
| Hendix Genetics | 2,000 | - | 2,000 | - |
| NSF Safety & Quality | 2,000 | - | 2,000 | - |
| Frontier Agricultural | 1,823 | - | 1,823 | - |
| Purple Patch | 1,500 | - | 1,500 | 1,320 |
| Crediton Mill | 1,250 | - | 1,250 | - |
| Genus plc | 1,250 | - | 1,250 | - |
| Cumbria PCC | - | 1,120 | 1,120 | - |
| Yeo Valley Farms | 1,000 | - | 1,000 | 3,425 |
| Garth Charities | 1,000 | - | 1,000 | - |
| Shakespeare Martineau | 1,000 | - | 1,000 | - |
| Stella Syms Charitable Trust | 1,000 | - | 1,000 | - |
| Pilgrims | 1,000 | - | 1,000 | - |
| Oxfordshire Ag Soc Trust | 1,000 | - | 1,000 | - |
| The Fulmer Charity | 900 | - | 900 | 750 |
| Market Bosworth & Hinckley Farms | 705 | - | 705 | - |
| Read Agriserves | 550 | - | 550 | - |
| Bailey | 550 | - | 550 | - |
| NFU Mutual Charitable Trust | - | - | - | 200,000 |
| National Lottery | - | - | - | 50,000 |
| Westminster Foundation | - | - | - | 33,304 |
| Wates Foundation | - | - | - | 20,000 |
| Arla | - | - | 13,655 | |
| Nuffield | - | - | - | 7,500 |
| Huggate Wold Farms | - | - | - | 6,000 |
| NFU | - | - | - | 5,000 |
| Anonymous | - | - | - | 5,000 |
| Cumber Family Charitable Trust | - | - | - | 5,000 |
| Tanner Trust | - | - | - | 5,000 |
| Blacks of Bacton | - | - | - | 3,500 |
| The Ticket Shop | - | - | - | 3,293 |
| NSF Safety & Quality | - | - | - | 2,875 |
| AHDA | - | - | - | 2,234 |
| Hampshire Farmers Benevolent Trust | - | - | - | 2,000 |
| Leicestershire CMF | - | - | - | 1,844 |
| Bletsoes | - | - | - | 1,768 |
| Frome Lions Club | - | - | - | 1,750 |
| Savills | - | - | - | 1,500 |
| Warwickshire County Council | - | - | - | 1,126 |
| Giving.com | - | - | - | 1,081 |
| Cornus Trust | - | - | - | 1,000 |
| C P Thackray Trust | - | - | - | 1,000 |
| Bristol Corn & Feed Association | - | - | - | 963 |
| Leicestershire Co-Op Community Fund | - | - | - | 924 |
| Rickerbys Charitable Trust | - | - | - | 750 |
| Colman | - | - | - | 560 |
| Other grants≤£500 | 14,245 | 487 | 14,732 | 14,656 |
| Total grants per Note 3 | 157,414 | 138,707 | 296,121 | 498,154 |
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T H E F A R M I N G C O M M U N I T Y N E T W O R K ( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
5 UNPAID VOLUNTARY SERVICES
The value of unpaid voluntary services provided by individuals has not been included within the Statement of Financial Activities as either income or expenditure. In the year under review that value is calculated as £182,142 (2021 - £178,6380), representing entirely caseworker costs (please refer to Trustees’ Report for further information). If this value was included the Statement of Financial Activities would be revised with both income and expenditure increasing by £182,142.
| 6 EXPENDITURE |
GENERAL UNRESTRICTED | RESTRICTED | |
|---|---|---|---|
| Local activity & supporting volunteers £ Publicity £ Training £ Direct costs £ |
Local activity & supporting volunteers £ |
2022 £ 2021 £ |
|
| Costs of generating funds Staff costs(note 7) Travel Communications Fundraising materials Room hire Legal & professional |
- - - 30,932 - - - 1,594 - - - 632 - - - 596 - - - - - - - 2,770 |
15,946 - - - - - |
46,878 41,317 1,594 - 632 710 596 5,776 - 2,770 3,256 |
| - - - 36,524 |
15,946 | 52,470 51,059 |
|
| Charitable activities Staff costs(note 7) Travel Communications Legal & professional Room hire and refreshments Publicity & training materials Insurance |
36,524 | 199,887 14,124 6,550 - 2,228 46,400 - |
359,135 287,867 17,493 5,238 14,947 16,079 1,226 2,227 7,899 58 95,396 97,524 2,608 1,614 |
| - 159,248 - - 1,170 2,199 - - 7,730 667 - - 1,226 - - - 4,463 1,208 - - 1,767 47,229 - - 2,608 - - - |
|||
| 18,964 210,551 - - |
269,189 | 498,704 410,607 |
|
| Governance Staff costs(note 7) Travel costs Communications Legal & professional Insurance Audit & accountancy Premises and depreciation Other |
229,515 | 79,468 - 2,428 - - - - - |
118,665 86,946 20,051 745 22,704 18,263 22,280 11,081 5,246 4,707 2,040 5,000 25,516 12,596 - 3 |
| - - - 39,197 - - - 20,051 - - - 20,276 - - - 22,280 - - - 5,246 - - - 2,040 - - - 25,516 - - - - |
|||
| - - - 134,606 |
81,896 | 216,502 139,341 |
|
| 134,606 | |||
| Total expenditure | 18,964 210,551 - 171,131 |
367,030 | 767,676 601,007 |
| 400,646 | |||
| 7 STAFF COSTS |
2022 £ 2021 £ 436,963 398,946 35,124 26,699 21,739 18,798 493,826 447,443 |
||
| Wages and salaries Social security costs Other pension costs |
|||
The average number of employees, including part-time, during the year was 22 (2021: 17). One employee earned in excess of £60,000 (2021 - Nil).The company operates a defined contribution pension scheme. The charge for the period was £20,034 (2021 – £18,798). There were outstanding contributions of £3,537 at the year end (2021 - £2,341).
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( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
T H E F A R M I N G C O M M U N I T Y N E T W O R K
8 NET INCOME FOR THE YEAR
| 8 NET INCOME FOR THE YEAR |
||
|---|---|---|
| 2022 | 2021 | |
| This is stated after charging: | £ | £ |
| Directors’ emoluments (travel expenses) | 236 | - |
| Independent Examiner’s remuneration | 2,040 | 5,000 |
| Depreciation | 16,190 | 4,200 |
| Directors’ indemnity insurance | 2,192 | 1,614 |
9 DIRECTORS’ REMUNERATION
No remuneration was paid to Directors for their services, and £236.26 was paid as reimbursement of travel and other expenses.
| 10 TANGIBLE FIXED ASSETS |
Office | ||
|---|---|---|---|
| equipment | |||
| £ | |||
| Cost or valuation: | |||
| At 1 April 2021 | 83,775 | ||
| Additions | 39,330 | ||
| At 31 March 2022 | 123,105 | ||
| Depreciation: | |||
| At 1 April 2021 | 78,141 | ||
| Charge for the year | 16,190 | ||
| At 31 March 2022 | 94,331 | ||
| Net book value | |||
| At 31 March 2022 | 28,774 | ||
| At1 April 2021 | 5,634 | ||
| 11 INVESTMENTS |
2022 | 2021 | |
| £ | £ | ||
| Market value at 1 April 2021 | - | - | |
| Acquisitions at cost | 542,172 | - | |
| Sales proceeds from disposals | - | - | |
| Gain/(loss) in the year – realised | - | - | |
| Gain/(loss)in theyear - unrealised | 4,448 | - | |
| Market value at 31 March 2022 | 546,620 | - | |
| Investments at market value comprised: | |||
| Rathbone Unit Trust Management Core Investment Fund for Charities Income Fund | 227,098 | - | |
| Cash | 319,522 | - | |
| 546,620 | - | ||
| Historical cost as at 31 March 2022 | 542,172 | - |
| 12 DEBTORS |
2022 £ |
2021 £ |
|---|---|---|
| Amounts falling due within one year | ||
| Trade debtors | 11,000 | 1,073 |
| Prepayments and accrued income | 1,167 | 1,166 |
| Gift Aid tax refund | 6,288 | 11,611 |
| 18,455 | 13,850 |
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( A C H A R I T A B L E C O M P A N Y L I M I T E D B Y G U A R A N T E E )
T H E F A R M I N G C O M M U N I T Y N E T W O R K
| 13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
|---|---|---|
| £ | £ | |
| Trade creditors | 14,039 | 10,518 |
| Other taxes and social security | 16,102 | 9,815 |
| Other creditors | 3,537 | 2,342 |
| Deferred income(see also Note 13) | - | - |
| Accrued expenses | 6,917 | 8,086 |
| 40,595 | 30,761 |
| 14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
|---|---|---|
| £ | £ | |
| Deferred income | - | - |
| DEFERRED INCOME | £ | |
| At 1 April 2021 | - | - |
| Income deferred in year – for release within one year | - | - |
| Income deferred in year – for release after more than one year | - | - |
| Amount released inyear | - | - |
| At 31 March 2022 | - | - |
| 15 FUNDS ANALYSIS |
General Unrestricted |
Designated Unrestricted |
|||
|---|---|---|---|---|---|
| fund | fund | Restricted fund | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| Tangible fixed assets | 575,394 | - | - | 575,394 | 5,634 |
| Current assets | 533,189 | 238,140 | 57,047 | 828,376 | 1,185,251 |
| Liabilities | (40,595) | - | - | (40,595) | (30,761) |
| Net assets | 1,067,988 | 238,140 | 57,047 | 1,363,175 | 1,160,124 |
| 16 MOVEMENT IN FUNDS |
At 1 April 2021 |
Transfers | Incoming resources |
Outgoing resources |
At 31 March 2022 |
| £ | £ | £ | £ | £ | |
| Restricted funds | |||||
| Voluntary income | 242,361 | - | 181,716 | (367,030) | 57,047 |
| Unrestricted funds | |||||
| Designated | 294,563 | (56,423) | - | - | 238,140 |
| General | 623,200 | 56,423 | 789,011 | (400,646) | 1,067,988 |
| 1,160,124 | - | 970,727 | (767,676) | 1,363,175 |
18