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2021-12-31-accounts

Charity registration number 1123473

Company registration number 06460936 (England and Wales)

HORSELL COMMON PRESERVATION SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

HORSELL COMMON PRESERVATION SOCIETY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Bate (Appointed 28 September 2021)
M Scott (Appointed 26 January 2021)
P Robinson
R Neale
C Hughes
P Downes
H Lane
E Cuttle
A Halstead
Secretary J Dalgliesh
Charity number 1123473
Company number 06460936
Registered office Heather Farm
Horsell Common
Woking
GU21 4XY
Auditor Alliotts LLP
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DL

HORSELL COMMON PRESERVATION SOCIETY

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Balance sheet 11 - 12
Notes to the financial statements 13 - 23

HORSELL COMMON PRESERVATION SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects of the charity are:-

  1. The ownership provision and preservation of Horsell Common and other commons and open spaces for:-

  2. (a) informal open air recreation and enjoyment by the public at large;

  3. (b) the protection of the environment for future generations;

  4. (c) the protection and management of habitats for all flora and fauna living on such commons and open spaces; and

  5. Such other charitable activities or charitable undertakings as may in the opinion of the trustees promote and assist such objects.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Organisational management

During 2021 Paul Rimmer, retired as Estate Manager after 30 years service to the charity. The Trustees wish to thank him for his hard work and dedication over many years. At the same time Ranger Rachel Woodman emigrated to New Zealand. This meant a complete change of staff. Rupert Millican joined in July as Senior Ranger with Jeremy Dalton following in August as Estate Manager.

They have both brought a different style and are working hard to bring themselves up to speed with the Common and its needs.

With the retirement of Paul Rimmer and the continued restrictions of Covid in the first half of the year 2021 was a year assessing what is required and putting plans into place for the next few years.

Some of the works achieved during the year are

Much of this work could not be achieved without the ongoing dedication of our regular volunteers.

HORSELL COMMON PRESERVATION SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Wheatsheaf Common: There is an ongoing project to provide better flood prevention and generally enhance the area for the benefit of all. The works are part of an agreement between the Society, Woking Borough Council, The Forestry Commission, Natural England and Surrey County Council. There has been a lot of antisocial behaviour (homeless camps and drug related issues) in the area in recent years and the works being carried out are aimed to improve this situation especially as Wheatsheaf Common is part of an area classified as SNCI (Site of Nature Conservation Importance).

In addition to the above, there is all the usual work of removing litter, car park and track maintenance and dog bin emptying. Management of Horsell and Pyrford Commons requires liaison with organisations and services, such as the police, Surrey Fire and Rescue service, Woking Borough Council, local residents’ associations, Surrey Wildlife Trust, Natural England, McLaren, English Heritage, the Forestry Commission, Surrey Heathland Project and the Thames Basin Heaths Partnership.

Financial review

2021 was a difficult year for many charities and the Society was no exception. Accommodations was to be made with some of our tenants to enable them to survive loss of earnings. This ended mid year. Correspondingly Covid restrictions have made it difficult to carry out the full programme of common maintenance. These two factors have left the charity broadly in a cash neutral position for the year.

2022 has returned to normal.

Income for the charity mainly comes from grant funding and a gift aid payment from its subsidiary company, Heather Farm Limited, which operates as the landlord for the site known as Heather Farm and paid £91,768 to the charity in 2021 (2020:£82,449)

Unrestricted Reserves

The trustees are mindful of the large contingent risks and opportunities associated with its objectives. With that in mind unrestricted reserves, which are shown in the accounts each year, are maintained for the following:-

The balance of the unrestricted reserves held in the general fund was £727,318 at the year end. Of this balance, £669,311 was held in investments to generate long term income for the charity, and a further £10,428 represented by the book value of fixed asset equipment held at the year end. This leaves our 'free' reserves at £47,579 at the year end, which are held to provide working capital to meet the cost of ongoing operations. The trustees regard this amount as adequate and aim to build this amount in the future.

HORSELL COMMON PRESERVATION SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Restricted Reserves

a) SANG 1 (Suitable Alternative Natural Greenspace)

This was the first SANG and all payments have now been received from property developers via Woking Borough Council for the purpose of enhancing designated areas of the Common to encourage their public use. The residue of the fund is being used for future maintenance, mainly of the Peace Garden with costs of work on the common being taken from unrestricted reserves as part of ongoing common management.

b) SANG 2

This represents the balance of funds used to maintain the 57 acres at Heather Farm and Mimbridge open for public access, which are to be maintained in perpetuity through the legal agreement with Woking Borough Council (WBC). The fund is in deficit as expenditure over the last few years has been in excess of the annual income received from WBC, but will be brought back into line in 2022 as less expenditure should take place.

c) Higher Tier Countryside Stewardship Grant

Countryside Stewardship gives incentives for land managers to look after their environment. Higher Tier is for land that requires more complex management tailored to the individual site. The HCPS agreement provides a sum of £17,000 pa and runs for 10 years from 2018.

Countryside Stewardship is administered by the Rural Payments Agency (RPA) on behalf of the Department for Environment, Food and Rural Affairs (Defra). Natural England provides technical advice in support of the scheme.

In accordance with the Articles of Association of the charity, the trustees have wide powers to hold, apply or invest the charity's monies, stocks and shares and shall in their absolute discretion if thought fit, provided that the appropriate professional advice has been sought. Trustees have the power to delegate to professional investment managers within clear investment policy guidelines. The charity's objective is to maximise return over the long term without exceeding the level of risk appropriate for a charity.

The charity maintains a risk register which is regularly reviewed by trustees with practical precautions being implemented by officers and staff.

A key issue is the position of the charity as a substantial landowner. Insurance policies are in place offering significant Public and Employee Liability Insurance. The extent of the cover and the premiums paid are reviewed annually.

Structure, governance and management

The charity is controlled by its governing document the Articles of Association and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J Bate (Appointed 28 September 2021) M Scott (Appointed 26 January 2021) P Robinson R Neale C Hughes P Downes H Lane E Cuttle A Halstead R Hoyle (Resigned 27 April 2021) D Ludlow (Resigned 14 May 2021) J Leggett (Resigned 19 July 2021) J Loeffler (Resigned 19 July 2022)

HORSELL COMMON PRESERVATION SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees are appointed by the members of the company in accordance with its Articles of Association. New trustees are provided with extensive induction materials to familiarise them with the workings of the Society and their responsibilities as trustees.

Auditor

In accordance with the company's articles, a resolution proposing that Alliotts LLP be reappointed as auditor of the company will be put at a General Meeting.

The trustees' report was approved by the Board of Trustees.

P Downes

Trustee

25 August 2022

HORSELL COMMON PRESERVATION SOCIETY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors of Horsell Common Preservation Society for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

HORSELL COMMON PRESERVATION SOCIETY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF HORSELL COMMON PRESERVATION SOCIETY

Opinion

We have audited the financial statements of Horsell Common Preservation Society (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.

Other matter

The financial statements for the year ended 31 December 2020, forming the corresponding figures of the financial statements for the year ended 31 December 2021, are unaudited.

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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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.

HORSELL COMMON PRESERVATION SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HORSELL COMMON PRESERVATION SOCIETY

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require 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 charity for the purpose 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 charity’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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

HORSELL COMMON PRESERVATION SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HORSELL COMMON PRESERVATION SOCIETY

Extent to which the audit was considered capable of detecting irregularities, including fraud

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Audit response to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HORSELL COMMON PRESERVATION SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HORSELL COMMON PRESERVATION SOCIETY

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alliotts LLP

.........................

Chartered Accountants Statutory Auditor

Friary Court 13-21 High Street Guildford Surrey GU1 3DL

Alliotts LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

HORSELL COMMON PRESERVATION SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
119,506
-
Charitable activities
4
42,294
68,095
Other trading activities
5
42,780
-
Investments
6
3,957
17
Total income
208,537
68,112
Expenditure on:
Charitable activities
7
115,180
56,642
Net gains/(losses) on
investments
11
49,316
-
Net movement in funds
142,673
11,470
Fund balances at 1 January
2021
3,398,709
129,815
Fund balances at 31
December 2021
3,541,382
141,285		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
119,506
107,175
-
110,389
24,416
79,512
42,780
26,600
-
3,974
4,747
463
276,649
162,938
79,975
171,822
89,181
79,474
49,316
38,811
-
154,143
112,568
501
3,528,524
3,286,141
129,314
3,682,667
3,398,709
129,815		 Total
2020
£
107,175
103,928
26,600
5,210
242,913
168,655
38,811
113,069
3,415,455
3,528,524

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HORSELL COMMON PRESERVATION SOCIETY

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds
Designated funds:
Designated Land Reserve
Designated Investment Reserve
Land Acquisition Reserve
Legal Contingencies Reserve
18
General unrestricted funds		 2021
£
£
1,084,706
2,409,097
3,493,803
5,963
195,931
201,894
(13,030)
188,864
3,682,667
141,285
1,074,278
1,569,786
120,000
50,000
2,814,064
727,318
3,541,382
3,682,667		 2020
£
£
1,087,672
1,901,102
2,988,774
86,990
469,372
556,362
(16,612)
539,750
3,528,524
129,815
1,074,278
1,489,786
100,000
50,000
2,714,064
684,645
3,398,709
3,528,524		 2020
£
£
1,087,672
1,901,102
2,988,774
86,990
469,372
556,362
(16,612)
539,750
3,528,524
129,815
1,074,278
1,489,786
100,000
50,000
2,714,064
684,645
3,398,709
3,528,524
2,988,774
539,750
3,528,524
129,815
3,398,709
3,528,524

HORSELL COMMON PRESERVATION SOCIETY

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees, as directors, acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the charitable company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 25 August 2022

P Downes

Trustee

Company registration number 06460936

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Horsell Common Preservation Society is a private company limited by guarantee incorporated in England and Wales. The registered office is Heather Farm, Horsell Common, Woking, GU21 4XY.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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 financial statements have been prepared under the historical cost convention, [modified to include to include certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs, including irrecoverable VAT, and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land Not depreciated Plant and equipment 10% on cost Motor vehicles 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price.Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11 Taxation

The charity is exempt from taxation on its charitable activities.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 119,506 107,175
Donations and gifts
Subscriptions & donations 24,433 22,227
Gift aided donation from subsidiary company 91,768 82,449
Gift Aid receipts 3,305 2,499
119,506 107,175

4 Charitable activities

Other
Charitable
Income
Other
Charitable
Income
2021
2020
£
£
Performance related grants
87,550
101,287
Other income
22,839
2,641
110,389
103,928
Analysis by fund
Unrestricted funds
42,294
24,416
Restricted funds
68,095
79,512
110,389
103,928
Performance related grants
RPA - Higher Countryside Stewardship
17,311
25,312
RPA - Single payments scheme
19,455
21,775
RPA - SANG project upkeep grant
50,784
54,200
-
87,550
101,287		 Other
Charitable
Income
Other
Charitable
Income
2021
2020
£
£
Performance related grants
87,550
101,287
Other income
22,839
2,641
110,389
103,928
Analysis by fund
Unrestricted funds
42,294
24,416
Restricted funds
68,095
79,512
110,389
103,928
Performance related grants
RPA - Higher Countryside Stewardship
17,311
25,312
RPA - Single payments scheme
19,455
21,775
RPA - SANG project upkeep grant
50,784
54,200
-
87,550
101,287		 Other
Charitable
Income
Other
Charitable
Income
2021
2020
£
£
Performance related grants
87,550
101,287
Other income
22,839
2,641
110,389
103,928
Analysis by fund
Unrestricted funds
42,294
24,416
Restricted funds
68,095
79,512
110,389
103,928
Performance related grants
RPA - Higher Countryside Stewardship
17,311
25,312
RPA - Single payments scheme
19,455
21,775
RPA - SANG project upkeep grant
50,784
54,200
-
87,550
101,287
2021
£
87,550
22,839
110,389
42,294
68,095
110,389
17,311
19,455
50,784
87,550		 2020
£
101,287
2,641
103,928
24,416
79,512
103,928
25,312
21,775
54,200
-
101,287

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Other trading activities

Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
42,780
26,600
Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
3,957
4,530
-
4,530
17
217
463
680
3,974
4,747
463
5,210		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
42,780
26,600
Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
3,957
4,530
-
4,530
17
217
463
680
3,974
4,747
463
5,210
Payments under licence
Investments
Unrestricted
Restricted
funds
funds
2021
2021
£
£
Investment income
3,957
-
Interest receivable
-
17
3,957
17
Total
2020
£
4,530
680
5,210

6 Investments

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Charitable activities

Staff costs Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
39,936
62,008
29,809
16,919
996
9,840
6,315
8,304
43,929
42,400
6,398
4,396
127,383
143,867
36,859
22,388
7,580
2,400
171,822
168,655
115,180
89,181
56,642
79,474
171,822
168,655
2021Support costs Governance
costs
2020
£
£
£
£
2,966
2,966
-
2,966
12,667
5,697
-
5,697
11,991
7,033
-
7,033
2,413
3,752
-
3,752
6,822
2,940
-
2,940
7,580
-
-
-
-
-
2,400
2,400
44,439
22,388
2,400
24,788
44,439
22,388
2,400
24,788		 Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
39,936
62,008
29,809
16,919
996
9,840
6,315
8,304
43,929
42,400
6,398
4,396
127,383
143,867
36,859
22,388
7,580
2,400
171,822
168,655
115,180
89,181
56,642
79,474
171,822
168,655
2021Support costs Governance
costs
2020
£
£
£
£
2,966
2,966
-
2,966
12,667
5,697
-
5,697
11,991
7,033
-
7,033
2,413
3,752
-
3,752
6,822
2,940
-
2,940
7,580
-
-
-
-
-
2,400
2,400
44,439
22,388
2,400
24,788
44,439
22,388
2,400
24,788
2020
£
62,008
16,919
9,840
8,304
42,400
4,396
Common maintenance
Tree work
Higher Countryside Stewardship
SANG 2
SANG 1
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Depreciation
2,966
-
Insurance, subscriptions
& public relations
12,667
-
Office overheads
11,991
-
Other costs
2,413
-
Bookkeeping
6,822
-
Audit fees
-
7,580
Independent Examination
fees
-
-
36,859
7,580
Analysed between
Charitable activities
36,859
7,580
143,867
22,388
2,400
168,655
89,181
79,474
168,655
2020
£
2,966
5,697
7,033
3,752
2,940
-
2,400
24,788
24,788

8 Support costs

Governance costs includes payments to the auditors of £4,950 plus VAT (2020- £nil) for audit fees.

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
1 1
Employment costs 2021 2020
£ £
Wages and salaries 33,955 51,739
Social security costs 2,627 3,926
Other pension costs 3,354 6,343
39,936 62,008

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 49,316 38,811

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12
Tangible fixed assets
Freehold land
Plant and
equipment
Motor vehicles
£
£
£
Cost
At 1 January 2021
1,074,278
29,662
27,950
At 31 December 2021
1,074,278
29,662
27,950
Depreciation and impairment
At 1 January 2021
-
16,268
27,950
Depreciation charged in the year
-
2,966
-
At 31 December 2021
-
19,234
27,950
Carrying amount
At 31 December 2021
1,074,278
10,428
-
At 31 December 2020
1,074,278
13,394
-
13
Fixed asset investments
Listed
investments
Other
investments
£
Cost or valuation
At 1 January 2021
411,316
1,489,786
Additions
378,678
80,000
Valuation changes
49,317
-
At 31 December 2021
839,311
1,569,786
Carrying amount
At 31 December 2021
839,311
1,569,786
At 31 December 2020
411,316
1,489,786
2021		 Total
£
1,131,890
1,131,890
44,218
2,966
47,184
1,084,706
1,087,672
Total
£
1,901,102
458,678
49,317
2,409,097
2,409,097
1,901,102
2020

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Fixed asset investments
Other investments comprise:
Notes
Investments in subsidiaries
21
14
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through Statement of Financial Activities
15
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 (Continued)
£
£
1,569,786
1,489,786
2021
2020
£
£
839,311
411,316
2021
2020
£
£
2,460
54,200
-
12,218
1,063
-
2,440
20,572
5,963
86,990
2021
2020
£
£
1,340
1,626
4,435
12,515
105
321
7,150
2,150
13,030
16,612		 (Continued)
£
£
1,569,786
1,489,786
2021
2020
£
£
839,311
411,316
2021
2020
£
£
2,460
54,200
-
12,218
1,063
-
2,440
20,572
5,963
86,990
2021
2020
£
£
1,340
1,626
4,435
12,515
105
321
7,150
2,150
13,030
16,612
2020
£
411,316
2020
£
54,200
12,218
-
20,572
86,990
2020
£
1,626
12,515
321
2,150
16,612

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2020
£
SANG 1
149,092
SANG 2
(19,778)
Higher
Countryside
Stewardship
-
129,314		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 January 2021
£
£
£
463
(4,396)
145,159
54,000
(66,774)
(32,352)
25,312
(8,304)
17,008
79,775
(79,474)
129,815		 Movement in funds
Incoming
resources
Resources
expended
Balance at
31 December
2021
£
£
£
-
(6,399)
138,760
50,801
(43,929)
(25,480)
17,312
(6,315)
28,005
68,113
(56,643)
141,285		 Movement in funds
Incoming
resources
Resources
expended
Balance at
31 December
2021
£
£
£
-
(6,399)
138,760
50,801
(43,929)
(25,480)
17,312
(6,315)
28,005
68,113
(56,643)
141,285
141,285

Sang 1 and Sang 2 funds represent monies received to enhance and protect access to the Common and are for future maintenance.

Higher Tier Countryside Steward Grants have been awarded by the Rural Payments Agency (RPA) to look after the environment; the agreement lasts until 2028.

18 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement
in funds
Balance at
1 January 2020
Incoming
resources
Balance at
1 January 2021
£
£
£
Designated Land Reserve
1,074,278
-
1,074,278
Designated Investment Fund
1,489,786
-
1,489,786
Land Acquisition Reserve
100,000
-
100,000
Legal Contingencies Reserve
50,000
-
50,000
2,714,064
-
2,714,064		 Transfers
Balance at
31 December
2021
£
£
-
1,074,278
80,000
1,569,786
20,000
120,000
-
50,000
100,000
2,814,064		 Transfers
Balance at
31 December
2021
£
£
-
1,074,278
80,000
1,569,786
20,000
120,000
-
50,000
100,000
2,814,064
2,814,064

HORSELL COMMON PRESERVATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
1,084,706
-
Investments
2,409,097
-
Current assets/(liabilities)
47,579
141,285
3,541,382
141,285		 Total
Unrestricted
funds
2021
2020
£
£
1,084,706
1,087,672
2,409,097
1,901,102
188,864
409,935
3,682,667
3,398,709		 Restricted
funds
2020
£
-
-
129,815
129,815		 Total
2020
£
1,087,672
1,901,102
539,750
3,528,524

20 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

21 Subsidiaries

In 2014 a wholly owned subsidiary was formed called 'Heather Farm Limited' (company number 9331836, registered in England & Wales) to develop and manage the remaining building at Heather Farm. At 31 December 2021 the profit for the year before the gift aided donation to the charity was £150,104 (2020: £91,768) and net assets were £1,732,466. (2020:£1,594,130).