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 Incu￿ed 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 sUb￿ntiallY 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