The Ma8lc Cotta8e QO Charity No. 1190613 Trustees, Report and Unaudited Accounts 31 Jtsly 2021
The Maglc Cotta8e CIO CONTENTS Pages 2to3 Trustees, Annual Report Independent Examinerfs Report Siatement of Financial Artivities Balance Sheet Slatement of Cash flows Notes to the Accounts 8t014 Detailed Statement of Financial Activities 15to16 Page I
The Maglc Cottaze CIO TRUSTEES APINUAL REPORT The Trustees present their report with the unaudited financial statements of the Charity for the period ended 31 July 2021. REFERENCE AND ADMINISTRATIVE DEfAILS Charlty No. 1190613 Prfnflpal Office 25 Llon Street Abergavenny Monmouthshire NP7 SPE Trustees The following Trustees seThed during the year- A.J. Batten A.M. Meletiou A.C. Reynolds Accountants Andersons Accountancy Services Ltd IOThe Cedars Llanfoist Abergavenny Monmouthshire NP7 9LX 08JEcnvES AND AcnvmES The charities objective is the relief of children or young people, wtth additional needs or serious illnes5 eithèr chronic or life limitin& and their families, for the public benefit. by providing activtties. andlor holidav accornmodatlon. for the whole family free of charge and particularly focusing on those famFlies that would be unable to finance these activities themselves. This will initially be for families livin8 Wfthin the countie5 of Monmouthshire, 8laenau Gwent,Torfaen 3nd Powys. The charity has fulFilled its primary,, unction by prowding activrties and holiday accommodation free of charge for young people or children with addition31 needs or serious illness. and their families The Trustees of the Charity would like to express our thanks to the many volunteers that work so hard and have helped to make the Magic Cottage a success. ACHIEVEMENTS AND PERFORMANCE During the first year we have been privileged to have sent 15 families on free short breaks, despite being in "lockdown" durin8 part of that tirne. Also during lockdown we have been able to distribute toys and Bames to children WFth special needs. We were able to help fund1£3501 a "vlrtual festlval" and Christm35 Activlties1£51X)I for brld8es Centre Monmouth. Page 2
The Ma81¢ Cottage CIO TRUSTEES ANNUAL REPORT We have been able to pay to upgrade the caravan that the charity owns at Haven's Kiln Parc. Tenby to a brand new fully disabled adapted caravan at an upgrade cost of £29.500. Delivery will be completed in 2022. 5 disability buggies were purchased at a cost of £995, 4 of which have been given out on long terni loan to enable children with mobility difficultie5 to access activities with their families A grant of £5LKI wa5 made to SEN department of Monmouth Comprehensive School to be used for activities with special needs children. In additton a donation of £IIXM) was given to Sparkle Children's Charity. FINAt4CIAL REVIEW The Charity rents 4 properties and needs to pay ground rent on the caravan which the charity owns. Therefore, the trustees feel that they need to hold reserves of £30.(KX). The charities principal source of fLtnds is through the retail outlets and would like to thank the public for the mazing quality and quantity of donations received. sTrucruRE, GOVERNANCE AND MANAGEMENT The Magic Cottage is constituted as a Charitable Incorporated Organisation giStered with the Charities Commission on 28th July 2020 and governed by its constitution. Trustees are appointed by the existing trustees. Statement of trustees, responsibilities in relation to the financial ststements The charity trustees are responsible fof preparing è trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practicel. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Tiustees are also responsible for safeguarding the assets of the charity and hence taking reason3ble Steps for the prevention and detection of fraud and other irregularities. Si8ned on behalf of th thar 's trustees A.C. Reynolds TrtAStee 05 May 2022 Page 3
The Mailc Cottage CIO INOEPENDENT EXAMINERS REPORT Independent Examlner's Report to the trustee5 of The ma Cottage ao I report on the accounts of The Magic Cottage CIO for the period ended 31 July 2021 which comprise the Statement of Financial Artivities. the 8alance Sheet, the Statement of Cash Flows and the related note5. Respedlve responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under the Charities Act 2011. s.144121 (the 2011 Artl and that an independent examination is needed. The charlty's gross income exceeded £250.0 and l am qualified to undertake the examination by beln8 a qualified member of ICAEW. Having satisfied myself that the charity is not subjert to audtt under charity law and is eligible for independent examination, it is my responsibility to.. examine the accounts under s.145 of the 2011 Act.. to follow PTocedure513id down in the general Directions given by the Charity Commission under s.14515llbl of the 2011 Act.. and to state whether particular matters have come to my attention. Basls of Independent examlnees report My examination was carried out in accordan 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 indudes consideration of any unusual items or disclosures in the accounts. and seeking explanations from you as trustees conceming any such matters. The procedures 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 "truÈ and fair" view and the report is limrted to those matters set out in the statement below. Independent examlner's Statement In connertion with my examination, no matter has come to my attention= 111 which gives me reasonable cause to believe that in any material respect the requirements- to keep accounting records in accordance with s.130 of the 2011.. and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Art, have not been met.. or 121 to which, in my opinion, attention Should be drawn in order to enable a proper understanding of the accounts t be reached. Mary Anderson FCA ICAEW Andersons AccoLtntancy Servlces Ltd IOThe Cedars L13nfoist Abergavenny Monmouthshire NP79LX OS May 2022 Page 4
The Mazlc Cottage CIO STATEMENf OF FINANCIAL ACTIVITIES for the perlod ended 31 Juty 2021 Unrestrlrted Restrlcted fvnds funds Totsl fvnds 1021 2021 2021 Notes Income and endowments Donations and legacies Charitable artivities 52.483 285.458 52,483 296.582 11.124 Totsl 337.941 11.124 349,065 EJ(penditure on: Charitable activities Other 194.159 244 9.679 203,838 244 Totsl 194,403 9.679 204,082 Net gains on investments Net income Net income before other ains}Ilossesl 143.538 1,445 144,983 143.538 1.44S 144.983 Other 8alns aThd10sses: Net movement ITr funds 143.538 1.445 144,983 Reconclllatlon of fvTrds: Total funds carried forward 143,538 1.445 144,983 Page S
The Ma8lt Cottaze CIO 8ALANCE SHEET at 31Juty 2021 Charfty No. 1190613 2021 Flxed assets Tangible assets 29,664 29.664 Current assets Stocks Debtors Cash at bank and in hand 2.625 104.708 10.991 118.324 13,(K)51 115,319 io Creditors: Amount falling due wf(hin one year Net current assets li Totsl assets less current liabilities Net assets excludin8 pension asset or Ilability Total net assets 144,983 144,983 144.983 The funds ol the tharlty Restricted funds Restritted income funds 12 1.445 1.445 Unrestrirted funds General funds 12 143,538 143.538 Reserves 12 Totsl funds 144,983 Approved by the trustees on 05 May 2022 And signed on their b h A.C. Reynolds Trustee 05 May 2022 Page 6
The Ma8lc Cottage CIO STATEMENT OF CASH FLOWS for the perlod ended 31 July 2021 2021 CJsh flows from operatlng artlyfties Net income per Statement of Financial Activitles 144.983 Adjustments for: Depreciation of property, plant and equipment Increase in stocks Increase in trade and other receivables Increase in trade and other payables 8,359 12.6251 1104.7081 3.005 Net cash provlded by oper*lng acthrftles 49,014 Cash flows from investing arttvities Proceeds from sales of property, plant and equipment Purchases of property. plant and equipment 3,398 141.421) Net cash used In Investing activities 138.0231 Net $h from finandng actlvltles Net Intteèse In ush and cash equivalents 10.991 Cash and cash equivalents at the beglnning of the period Cash and cash equivalents at the end of the period 10.991 Components of cash and cash equivalents Cash and bank balances 10.991 10.991 Page 7
The Ma8lr Cotta8e CIO NOTES TO ThE ACCOUNTS for the perlod ended 31 Juty 2021 l Accounting policies 8asls of preparatlon The financial statements have been prepared in accordance with Statement of Recommended Practice- Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland IFRS 1021 issued on 16 July 2014 and the Financial Reporting Standard applicèble in the United Kingdom and Republic of Ireland IFRS 102} and the Charities Act 2011. Fund a¢couTrtlng Unrestricted funds These are ayailable for use at the discretion of the trustees in furtherance of the general objects of the charity. These are unrestricted funds earmarked by the trustees lor particular purposes. These are unrestrirted funds which include a revaluation reseFve representing the restatement of investment asset5 at their market values. These are available for use subject to restrictions imposed by the donor or through terms of an appeal. Designated funds Revaluation funds Restricted funds Income Recognition of income Income is included in the Statement of Financial Acttvities ISOFAI when the charity becomes entitled to, and virtually certain to receive. the income and the amount of the income can be measured with sufficient reliability. Income with related Where Income has related expenditure the income and related expenditure is expenditure reported gross in the SOF Donations and legacies Voluntary income received by way of grants. donations and gifts is included in the the SOFA when receivable and only when the Charity has unconditional entitlement to the income. Tax reclaims on Income from tax reclaims is induded in the SOFA at the same time as the donations and gifts ¢iftldonation to which tt re13tes. Donated services and facilities These are only included in income {with an equivalent amount in expenditure) where the benefit to the Charity is reasonably quantifiable, measurable ènd material. Volunleer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/llossesl on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Galns/llossesl on investment assets This inclu(Jes any gain or loss on the sale of Investmen P38e 8
The Mazlc Cottaie CIO NOTES TO THE AccouKrs Expendlture Recognition of expenditure Expenditure is recognised on an accruals basis. Expenditure includes any VAT which cannot be fully recovered. and is reported as part of the expenditure to which it relates. Expenditure on These comprise the costs associated with attrarting voluntary income. fundraising raising hjnds trading costs and investment management costs. Expenditure on These comprise the costs Incued by the Charity in the delivery of its artivities and haritable artivities services in the furtherance of its objects, including the making of grants and governance costs. All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. These include those costs associated wlth meeting the constitutional and statutory requirements of the Charrty. including any auditlindependent examination fees, costs linked to the strategic management ot the Charity, together with a share of other administration costs. These are 5UPPOrt costs not allocated to a particular activity. Grants payable Governance costs Other expenditure Tamatlon The charity is exempt from tax on its charitable actiwti"ès. Tan8lble fixed assets and depredatlon Depreciation 15 provided at the followin8 annual rates in order to write off eath asset over Its estimated useful life.. Plant & machinery Motor vehicles 20%% reducing balance 25%% reducing balance Fixtures & ffttings 25%% straight line Stod(s Stock is included at the lower of cost or net reali5able lUe. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. Trade and other debtors Trade and other debtors are rÈcognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand. demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of finanual position. bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows. cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. Page g
The Mazlc Cottage CIO NOTES TO THE ACCOUNTS Trade and other credltors Short term creditors are measured at the transaction price. Other Creditors and provisions are retognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provision5 are normally recognised at their settlement amount after allowing for any trade dlscounts due. Leased assets Where the charity enters into a lease which eniails taking sUbntiallY all the risks and rewards of ownership of an asset. the lease is treated as a finance lease. Leases which do not transfer stsbst3ntially all the risks and rewards of ownership tg charity are classified as operating leases. Assets held under finance leases are initially recognised as assets of the charity at their fair value at the Inception of the lease or, rf lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so a5 to achieve a constant rate of interest on the remaining balance of the lièbllity. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets. in which case they are capitalised in accordance with the charity's poliri on borrowing costs. Assets held under finance leases are depreciated in the same way as owned assets. Operatin8 lease payments are recognised as an expense on a strai8ht4ine basis over the lease term. In the event that lease incentives are received to enter into operating leases. such incentives are recognised as a liability- The aggregate benefft of incertives is re(nISed as a reduction of rentsl expense on a strai8ht-line basis. Pension costs The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in atcruals in the balance sheet. The assets of the plan are held separately from the Charity in independentty administered funds. 2 Income from donatlons and le8acie5 Unrestricted Totsl 2021 Donations and legacies 52.483 52,483 52,483 52.483 Page 10
The Mazlc Cottage CIO NOTES TO THE ACCOUNTS 3 Income from ¢harttable a£tMtles Totsl 2021 Grants 55.C 222.9)1 11,124 66,124 222,901 4,454 3,103 296,582 Shop takings Food, refreshments Recycling 4,454 3.103 285.458 11,124 4 Expenditure on charitsble acti¥itles Totsl 2021 Expenditure on choritoble activities Shop purchases Oellvery & collection costs Caravan costs Wages and salaries Pension costs 2,827 4.968 73.528 555 2.827 4,968 82.152 555 8.624 Staff training & welfare Rent and rates Light and heat Property insurance Equipment expensed Repairs and maintenance Cleaning Telephone and fax Stationery and printing Postage Advertising Li¢ences and subscriptions Sundry Motor expenses Travel & subsistence Donations 64.080 7,702 2.203 11,463 4,579 7.702 2.203 12.458 4.579 995 646 336 336 368 57 57 79 79 343 343 1.1 3.510 1,160 3.510 2.3SO 2,350 8,359 Depreciation Governonce costs Accountancy 8.359 190.761 9.679 2ChJ,440 Page 11
The Magfc C¢Jttage CIO NOTES TO THE AccouKrs 5 Other expendlture Unrestrlrted Total 2021 General administrative costs Legal and professional costs 150 Iso 244 244 6 Net Income before transfers 2021 This is stated after char8in8: Independent Examiner's fee 7 Staff costs No employee received emoluments in excess of £60,[0. The average monthly number of full time equivalent employees during the year was as follow5.. 2021 Nurnber Shops The Charity pension scheme is provided by NEST 8 Tan8lble fixed assets Plant & machinery Motor vehides Fixtures & Total Cost or revaluall¢ AdditlOnS Disposals At 31 July 2021 Depre¢È?tion and Impalrment Depreciation char8e for the year At 31 July 2021 Net book values At31July2021 9 Stocks 13,926 21,898 {3,3981 18.SCKJ 5.597 41.421 13,398} 38.023 13,926 5,597 2.785 4.625 949 8,359 2,785 4.625 949 8.359 11,141 13,875 4,648 29,664 2021 Flnlshed 8oods 2,625 2.625 Page 12
Thè Ma¢ Cottage CIO NOTES TO THE ACCOUNTS 10 Debtors 2021 Other debtors Prepayments and accrued income 91.741 12,967 104.708 11 Credltors: amounts falling due within one year 2021 Other creditors Accruals and deferred income 534 2.471 3.tK15 12 Movement in fvnds In((wnln8 resources (Includlng other gainsl11>5ses) Resources expended At 31 Jufy 2021 Restrirted fvnds: Restrlrted Sncome funds: Job Aelention Scheme Monmouth Housing Association 8,624 18.6241 2,5 11,0551 1.445 Totol 11.124 19,6791 1,445 Unrestrlcted tunds: General funds 337.941 1194.4031 143,538 Revaluatlon Reseffts: Total funds 349.065 1204.082) 144.983 Purposes and restrictions in relation to the funds- Restricted funds: Job Retention Scheme MonmoLtth Housin8 Association Support for stsff during Cobid Purchase mobility strollers and sensory suitcases Page 13
The Maglc Cottage CIO r40TES TO THE Accoupirs 13 Analysls of net a55ets between fvnd5 Unrestrirted funds Restrirted funds Totsl Fixed assets Net current assets 29,664 113,814 143.478 29.664 115.319 144,983 1.505 1.505 14 Commltments Capltalcommltments 2021 Capital commitments contracted for at the end of the financial year for which no provision has been made= 79,220 Operating leose commitments Annual commitments under non-cancellable operating leases are as follows.. 2021 Larbd and buildlngs 2021 Other Operating leases with expiry date: Within one year In the second to fifth years inclusive 36.2(KJ 43.020 79,220 Penslon commltments 2021 Unpaid contributions due to the fund are included in other creditors and amounted to.. 59 15 Related party di5d05ures 2021 Transurtlons wlth relatedporties Name of relttted porty Lesley Reynolds Description ofrelotionship between the parties Description of tronsoctiorj and general amounts involved Amount dueArom/{toJ the relotedporty Wrfe of trustee Employee of charity {27.7051 Page 14
The Mailc Cottage CIO DETAILED STATEMENT OF FINANCIAL AcrivmES for the perlod ended 31 Juty 2021 Unrestricted funds 2021 Restrlrted fvnds Total fvnds 2021 2021 Income and endowments from: Donations and legacies Donations and legacies 52.483 52.483 52.483 52.483 Charitable activities Grants 55.() 222,901 4,454 3,103 285.458 11.124 66,124 222.901 4,454 3,103 296,582 Shop takin85 Caravan income Recycling 11,124 Totsl Income aTrd endowments 337.941 11,124 349,065 Empendlture on: Charitable activities Shop takings Delivery & collertion costs Caravan costs Wages and larIeS Pension costs Staff training & wetfare Rent and rates Light and heat Property insurance EqLtipment expensed Repairs and maintenace Cleaning Telephone and fax Stationery and printing Postage Advertising Licences and subscriptions Sundry Motor expenses Travel & subsistence Donations Loss/lprofitl on disposal of asset Depreciation 2,827 4.968 73.S28 555 2.827 4.968 82.152 SSS 8,624 180 64,080 7.702 2.203 12.458 4,579 646 64.080 7,702 2.203 11.463 4,579 646 995 336 336 57 79 343 1.1 3.510 57 79 343 1,160 3.510 2.350 3,398 8.359 193.079 2.350 3,398 8.359 202.758 9.679 Governance costs Accountancy 1.080 1,080 1,080 1.080 Page 15
The Maglc Cottage CIO DETAILED STATEMEKf OF FINANCIAL AcfivmES Total of expendlture on charltsble artl¥ltles 194.159 9.679 203,838 General administrative costs. including depreciation and amortisation Depreciation of Plant & machinery Depreciation of Motor vehicles Depreciation of Fixtures & fittings Bank charges Telephone. fax and broadband 69 2S 25 Legal and professional costs Solicitor's fees 150 150 150 150 Total of expendltuie of other costs Total expendlture Net gains on investments 244 244 194.403 9.679 204.082 Net Income 143.538 1.445 144.983 Net Income before other galns1(lossesl Other Gains 143,538 1.445 144,983 Net movement ln fvnds 143.538 1.445 144,983 Page 16