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2021-03-31-accounts

REGISTERED COMPANY NUMBER: CE015598 (England and Wales) REGISTERED CHARITY NUMBER: 1180662

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

THE COTTAGE COMMUNITY

Sargeant Partnership LLP Chartered Accountants 5 White Oak Square London Road Swanley Kent BR8 7AG

THE COTTAGE COMMUNITY

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

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Notes to the Financial Statements 8 to 16
Detailed Statement of Financial Activities 17 to 18

THE COTTAGE COMMUNITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Incorporation

The charitable company was incorporated on 13 November 2018 and commenced trading on 1 April 2019.

OBJECTIVES AND ACTIVITIES

The objective of the charity is to enhance the personal choices and quality of life of elderly and vulnerable people primarily living at home within its area, through the provision of a day care centre, transport facilities, a disabled friendly shower room, daily meals delivery, shopping and other day trips and outings, together with advice and information and other connected facilities.

The Cottage Day Centre

This normally provides elderly and vulnerable clients who continue to live at home with a venue providing lunches from our five star rated kitchen and the opportunity to socialise and partake in a wide variety of activities including: book clubs, singing sessions, armchair exercise classes, bingo and other pastimes. However, throughout this year government covid regulations prevented the opening of the Cottage Day Centre and resources were diverted instead to the provision of a meals delivery service to clients' homes as well as keeping in contact with clients generally. The trustees are very proud of the CEO and her staff, most of whom worked at the Cottage throughout the year and were able to diversify their talents and maintain a connection with isolated clients despite the pandemic restrictions.

Minibus Services

Three minibuses are available for clients' transport which, together with the drivers, ensure that clients are transported safely to and from the Cottage Day Centre, to shopping trips and outings and other venues in normal times. As a consequence of the pandemic and government regulations the minibuses have instead been utilised to provide the meals delivery service throughout the year.

Meals Delivery

As indicated above, for this year meals delivery to client's homes was the predominant activity. Daily deliveries ranged from 25 to 35 providing a freshly cooked two course lunch. This popular service, which commenced in March 2020, will be retained even when day care is able to recommence.

Page 1

THE COTTAGE COMMUNITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Kent County Council (KCC) continued to provide the funding under a service agency agreement for the charity in this year. Additional funds came from Government initiated Covid related grants from KCC, Sevenoaks DC, other smaller grants, charges to clients and from our charity shop. Claims were also made under the Government's Coronavirus Job Retention Scheme and, as a precaution, the charity secured a 'Bounce Back Loan' to maintain finances in this period of diminished income.

The financial statements for the year ended 31 March 2021 follow this report and have been examined by The Sargeant Partnership LLP. The statements show that the charity incurred a surplus in the year of £3,400. Local government funding for the type of services offered by The Cottage Community has tended to reduce in real terms in recent years and there is an increasing requirement for self - generated funding which the Trustees have constantly under review. Costs generally increased in the year in line with inflation, while for salaries the charity adopts the National Living Wage basis and these were increased accordingly in the year. The loss of income due to the need to close the Cottage premises to day care because of the coronavirus restrictions has largely been met by income from the meals delivery service which has proved very popular.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

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

Constitution

The charity is registered with the Charity Commission and is a Charitable Incorporated Organisation (CIO) It has a written constitution dated 13 November 2019, which details the framework and parameters of our activities and objectives.

Method of Appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are appointed under the terms of the constitution. Trustees are recruited according to the skills and experience they can provide to obtain a competent and balanced management

Risk Management

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Reserves Policy

In accordance with The Charity Commission recommendation and best practice, the charity held a minimum of six months operating costs in its reserves. Monies held in reserve are where appropriate, retained in a fixed rate deposit account.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

CE015598 (England and Wales)

Registered Charity number

1180662

Page 2

THE COTTAGE COMMUNITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Registered office

100 Brands Hatch Park Scratchers Lane Fawkham Kent DA3 8PU

Trustees

Mr J Kelly (Chair) Mr P Coleman Mr D Putman (Treasurer) Mr C Armstrong (Appointed 22 April 2020)

Chief Executive Officer

Ms A Dabb

Independent Examiner

Joanne Brown FCCA Sargeant Partnership LLP Chartered Accountants 5 White Oak Square London Road Swanley Kent BR8 7AG

12/10/2021 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

................................................................. D Putman - Trustee

Page 3

INDEPETrIDENT EX4MII¥4ER'S REPORT TO THE TRUSTEES OF THE COTTAGE COMMUNITY Jndependent examlner's report to the trnstees of The Cottage Community ('the Company,) J report to th¢ charity tru6t¢¢s on my examination of the accounts of the Company for the year ended 31 March2021. Resptsnsibilltles 2nd basis of report As the charity's trustees of the Company {attd also its directors for the Purposes of eompany law) you aT¢ responsible for the preparation of the a¢counts in a¢cordance with th¢ ￿qU1￿M¢nts of the Companies Act 2006 {'Ihe 2006 Ace). Having satisfied myself that the accounts of th¢ Cornpany are not required to be auditcd under Part 16 of the 2006 Act and arc cligible fvr independeni ¢xamindlion. I report in i¢spe¢l of my eX￿natIOn of your Charity'5 accounls as carried out under section 145 of the Charities Act 2011 ('die 2011 Act,). In carrying out my ¢xamination I have followed the Directions given by the Charity Coinmission under section 145(5) Ib) of th¢2011 Act. Independent eiamlner's Statement I hav¢ completed my examination. I confinn that no matters have come to my atlcntion in conne¢tion with the cxamination giving me cause to believe= accounting re¢ords were not kept in respect of the Company as r¢quir¢d by section 386 of the 2006 the 2c¢ounis do not accord with those records,. or the accounLs do not Comply wilh ihe a¢¢ounting requirements of sectiort 396 of ihe 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent exa]ninalion; or the accounts have not been prepared in accordance with the meth(Mls and principles of the Statem¢nt of Rccommendtd Piactice for accounting and reporting by charitics lapplicablc to charities preparing their accounts in accordanc¢ willi th¢ Financial Reporting Standard applicable in th¢ UK and R¢publi¢ of Ireland (FRS 102)). J have no concems and have come across no other matters in Connection with the examiT]ation lo which attention should b¢ drawn in this report in order to enablc a proper understanding of thc accounts ￿ be reached. Joanne Brown FCCA Sargeant Partnership LLP ChartCTcd ArxountJmLg 5 White Oak Square London Road Swanley Kent BR8 7AG Date.. 1211012021 Pagc 4

THE COTTAGE COMMUNITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
92,663
Charitable activities
General
46,786
Service agreement
22,256
Other trading activities
2
-
Investment income
3
1,264
Total
162,969
EXPENDITURE ON
Charitable activities
General
163,052
Catering supplies
-
Other
-
Total
163,052
NET INCOME/(EXPENDITURE)
(83)
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
672,219
Prior year adjustment
8
(12,235)
As restated
659,984
TOTAL FUNDS CARRIED FORWARD
659,901		 Restricted
funds
£
12,911
-
-
-
-
12,911
-
9,428
-
9,428
3,483
-
-
-
3,483		 2021
2020
Total
Total
funds
funds
as restated
£
£
105,574
6,427
46,786
55,846
22,256
61,641
-
6
1,264
1,210
175,880
125,130
163,052
199,448
9,428
-
-
8,353
172,480
207,801
3,400
(82,671)
672,219
742,655
(12,235)
-
659,984
742,655
663,384
659,984

The notes form part of these financial statements

Page 5

THE COTTAGE COMMUNITY

BALANCE SHEET 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
9
Investments
10
CURRENT ASSETS
Stocks
11
Debtors
12
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year
14
NET ASSETS
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
472,695
15,000
487,695
750
39,368
150,654
190,772
(5,316)
185,456
673,151
(13,250)
659,901		 Restricted
funds
£
-
-
-
-
-
3,483
3,483
-
3,483
3,483
-
3,483		 2021
Total
funds
£
472,695
15,000
487,695
750
39,368
154,137
194,255
(5,316)
188,939
676,634
(13,250)
663,384
659,901
3,483
663,384		 2020
Total
funds
as restated
£
479,314
15,000
494,314
642
46,140
138,327
185,109
(19,439)
165,670
659,984
-
659,984
659,984
-
659,984

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The notes form part of these financial statements

Page 6

continued...

THE COTTAGE COMMUNITY

BALANCE SHEET - continued 31 MARCH 2021

The trustees acknowledge their responsibilities for

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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 12/10/2021

............................................. D Putman - Trustee

The notes form part of these financial statements

Page 7

THE COTTAGE COMMUNITY

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

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

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

Expenditure

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

Tangible fixed assets

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

Freehold property - not provided
Improvements to property - 25% per annum on reducing balance
Fixtures and fittings - 25% per annum on reducing balance
Motor vehicles - 25% per annum on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Fund accounting

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

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

The trustees consider that there are restricted funds. These include the CF food grant and Coop grant.

The Capital Reserve is represented by the freehold property.

continued...

Page 8

THE COTTAGE COMMUNITY

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

1. ACCOUNTING POLICIES - continued

Grants receivable

Receipts by way of "grant" have been included in the Statement of Financial Activities (gross, no netting off) in accordance with the term of the grant and have not been recognised until the conditions for receipts have been complied with.

2. OTHER TRADING ACTIVITIES

Fundraising events
3.
INVESTMENT INCOME
Deposit account interest		 2021
2020
as restated
£
£
-
6
2021
2020
as restated
£
£
1,264
1,210

4. NET INCOME/(EXPENDITURE)

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

2021 2020
as restated
£ £
Independent examination fees 3,834 2,968
Depreciation - owned assets 13,509 17,111
Deficit on disposal of fixed assets - 8,353

5. TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

continued...

Page 9

THE COTTAGE COMMUNITY

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

6. STAFF COSTS

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

2021 2020
as restated
Administration 9 10
No employees received emoluments in excess of £60,000.
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
funds funds funds
as restated
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 6,427 - 6,427
Charitable activities
General 55,846 - 55,846
Service agreement 61,641 - 61,641
Other trading activities 6 - 6
Investment income 1,210 - 1,210
Total 125,130 - 125,130
EXPENDITURE ON
Charitable activities
General 199,448 - 199,448
Other 8,353 - 8,353
Total 207,801 - 207,801
NET INCOME/(EXPENDITURE) (82,671) - (82,671)
RECONCILIATION OF FUNDS
Total funds brought forward 742,655 - 742,655
TOTAL FUNDS CARRIED
FORWARD 659,984 - 659,984

continued...

Page 10

THE COTTAGE COMMUNITY

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

8. PRIOR YEAR ADJUSTMENT

A prior year adjustment has been made in respect to two motor vehicles that should have been disposed of in the 31/3/2020 accounts. This has resulted in an increase to the deficit of £12,235.

9. TANGIBLE FIXED ASSETS

COST
At 1 April 2020
Additions
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Improvements
Freehold
to
property
property
£
£
431,019
30,885
-
1,890
431,019
32,775
-
7,721
-
6,185
-
13,906
431,019
18,869
431,019
23,164		 Fixtures
and
fittings
£
10,690
-
10,690
2,668
2,005
4,673
6,017
8,022		 Motor
vehicles
£
22,195
5,000
27,195
5,086
5,319
10,405
16,790
17,109		 Totals
£
494,789
6,890
501,679
15,475
13,509
28,984
472,695
479,314

10. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 April 2020 and 31 March 2021 15,000
NET BOOK VALUE
At 31 March 2021 15,000
At 31 March 2020 15,000

There were no investment assets outside the UK.

continued...

Page 11

THE COTTAGE COMMUNITY

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

11. STOCKS
2021 2020
as restated
£ £
Stocks 750 642
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
as restated
£ £
Trade debtors 1,244 2,205
Other debtors 37,251 41,533
Prepayments and accrued income 500 1,210
Prepayments 373 1,192
39,368 46,140
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
as restated
£ £
Bank loans and overdrafts (see note 15) 1,750 -
Trade creditors - 187
Social security and other taxes 1,566 17,252
Accruals and deferred income 2,000 2,000
5,316 19,439
14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
as restated
£ £
Bank loans (see note 15) 13,250 -

continued...

Page 12

THE COTTAGE COMMUNITY

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

15. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
MOVEMENT IN FUNDS
Prior
year
At 1/4/20
adjustment
£
£
Unrestricted funds
General fund
241,200
(12,235)
Capital Reserve
431,019
-
672,219
(12,235)
Restricted funds
COOP grant
-
-
TOTAL FUNDS
672,219
(12,235)		 2021
2020
as restated
£
£
1,750
-
3,000
-
9,000
-
1,250
-
Net
movement
At
in funds
31/3/21
£
£
(83)
228,882
-
431,019
(83)
659,901
3,483
3,483
3,400
663,384

16. MOVEMENT IN FUNDS

continued...

Page 13

THE COTTAGE COMMUNITY

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

16. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
CF food grant
COOP grant
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Capital Reserve
TOTAL FUNDS		 Incoming
resources
£
162,969
9,428
3,483
12,911
175,880
At 1/4/19
£
311,636
431,019
742,655
742,655		 Resources
Movement
expended
in funds
£
£
(163,052)
(83)
(9,428)
-
-
3,483
(9,428)
3,483
(172,480)
3,400
Net
movement
At
in funds
31/3/20
£
£
(82,671)
228,965
-
431,019
(82,671)
659,984
(82,671)
659,984

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

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
125,130
125,130		 Resources
Movement
expended
in funds
£
£
(207,801)
(82,671)
(207,801)
(82,671)

continued...

Page 14

THE COTTAGE COMMUNITY

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

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Capital Reserve
Restricted funds
COOP grant
TOTAL FUNDS		 Prior
year
At 1/4/19
adjustment
£
£
311,636
(12,235)
431,019
-
742,655
(12,235)
-
-
742,655
(12,235)		 Net
movement
in funds
£
(82,754)
-
(82,754)
3,483
(79,271)		 At
31/3/21
£
216,647
431,019
647,666
3,483
651,149

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
CF food grant
COOP grant
TOTAL FUNDS		 Incoming
resources
£
288,099
9,428
3,483
12,911
301,010		 Resources
Movement
expended
in funds
£
£
(370,853)
(82,754)
(9,428)
-
-
3,483
(9,428)
3,483
(380,281)
(79,271)

Page 15

continued...

THE COTTAGE COMMUNITY

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

17. RELATED PARTY DISCLOSURES

At 31st March 2021 the charity was owed £37,251 (2020: £41,454) by it's subsidiary company RACDV Sales Limited.

Page 16

THE COTTAGE COMMUNITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Other trading activities
Fundraising events
Investment income
Deposit account interest
Charitable activities
Service agreements
Income from client services
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Establishment costs
Travel
Vehicle running and leasing
Catering supplies
Sundries
Improvements to property
Fixtures and fittings
Motor vehicles
Other
Loss on sale of tangible fixed assets
Support costs		 2021
2020
as restated
£
£
22,398
817
83,176
5,610
105,574
6,427
-
6
1,264
1,210
22,256
61,641
46,786
55,846
69,042
117,487
175,880
125,130
106,897
118,841
7,971
9,579
-
173
17,193
26,042
13,602
7,590
5,368
14,598
6,185
7,721
2,005
2,668
5,319
6,722
164,540
193,934
-
8,353		 2021
2020
as restated
£
£
22,398
817
83,176
5,610
105,574
6,427
-
6
1,264
1,210
22,256
61,641
46,786
55,846
69,042
117,487
175,880
125,130
106,897
118,841
7,971
9,579
-
173
17,193
26,042
13,602
7,590
5,368
14,598
6,185
7,721
2,005
2,668
5,319
6,722
164,540
193,934
-
8,353
6,427
6
1,210
61,641
55,846
117,487
125,130
118,841
9,579
173
26,042
7,590
14,598
7,721
2,668
6,722
193,934
8,353

This page does not form part of the statutory financial statements

Page 17

THE COTTAGE COMMUNITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Support costs
Governance costs
Auditors' remuneration
Accountancy and legal fees
Total resources expended
Net income/(expenditure)		 2021
2020
as restated
£
£
3,834
2,968
4,106
2,546
7,940
5,514
172,480
207,801
3,400
(82,671)

This page does not form part of the statutory financial statements

Page 18