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2022-07-31-accounts

Trustees' Annual Report for the period

Period start date Period end date Day 01 Month Year Day 31 08 2021

Day 31 Month 07 Year 2022

From

To

Section A Reference and administration details

Charity name THE MAGIC COTTAGE Other names charity is known by Registered charity number (if any) 1190613 Charity's principal address 25 Lion Street Abergavenny Postcode NP7 5PE

Names of the charity trustees who manage the charity

----- Start of picture text -----
Name of person (or body)
Dates acted if not for
Trustee name Office (if any) entitled to appoint trustee
whole year
(if any)
Anthony Chair
1
Reynolds
Angelica
2
Meletiou
3 Anna Batten
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
----- End of picture text -----

Names of the trustees for the charity, if any, (for example, any custodian trustees)

Name Dates acted if not for whole year

March 2012

TAR

1

Names and addresses of advisers (Optional information)

Type of adviser Name Address

Name of chief executive or names of senior staff members (Optional information)

Section B Structure, governance and management

Description of the charity’s trusts

Type of governing document

Constitution

Trust How the charity is constituted

(eg. trust, association, company)

Elected by existing Trustees Trustee selection methods

(eg. appointed by, elected by)

Additional governance issues (Optional information)

A charity trustee must:

You may choose to include additional information, where relevant, about:

(1) declare the nature and extent of any interest, direct or indirect, which he or she has in a proposed transaction or arrangement with the CIO or in any transaction or arrangement entered into by the CIO which has not previously been declared; and (2) absent himself or herself from any discussions of the charity trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the CIO and any personal interest (including but not limited to any financial interest).

Section C Objectives and activities

March 2012

TAR

2

The relief of children or young people, with additional needs or serious illness either chronic or life limiting, and their families, for the public benefit, by providing activities, and/or holiday accommodation, for the whole family, free of charge Summary of the objects and particularly focusing on those families that of the charity set out in would be unable to finance these activities its governing document themselves. This will initially be for families living within the counties of Monmouthshire, Blaenau Gwent, Torfaen and Powys.

The Charity has fulfilled its primary function by providing activities and holiday accommodation free of charge for young people or children with additional needs or serious illness, and their families, for the public benefit as per the Charity Commission’s guidance.

We have also been able to supply disabled adapted buggies to a number of families to enable them to access activities that otherwise would have been impossible for them.

Summary of the main We have given grants of £1000 each to “Sparkle” based at activities undertaken for Neville Hall Hospital, to the Children’s Unit at the Grange the public benefit in Hospital Cwmbran and to The Heath Hospital to be used to fund relation to these objects activities and activity equipment for children whilst in hospital. (include within this section the statutory We have also been able to give away “sensory equipment,” to declaration that trustees help families that have children with sensory or autistic issues. have had regard to the guidance issued by the Charity Commission on public benefit)

Additional details of objectives and activities (Optional information)

March 2012

TAR

3

The Charity would like to express our thanks to the many volunteers that have worked on our behalf, and helped to make the Magic Cottage such a success.

You may choose to include further statements, where relevant, about:

Section D Achievements and performance

March 2012

TAR

4

Section D Achievements and performance

Summary of the main achievements of the charity during the year

During this year we have been very privileged to have sent 35 families on free short breaks.

We have also been able to supply a further 4 disabled adapted buggies to a number of families to enable them to access activities that otherwise would have been impossible for them.

We have given grants of £1000 each to “Sparkle” based at Neville Hall Hospital, to the Children’s Unit at the Grange Hospital Cwmbran and to Noah’s Ark Project based at The Heath Hospital to be used to fund activities and activity equipment for children whilst in hospital.

We have also been able to give away “sensory equipment,” to help families that have children with sensory or autistic issues.

Section E Financial review

March 2012

TAR

5

We rent 4 properties, and have an annual ground rent payable Brief statement of the on the caravan which we own. Therefore, we feel that we need charity’s policy on to hold a reserve of £30,000 reserves

Details of any funds materially in deficit

Further financial review details (Optional information)

The Charity’s principal source of income is through our retail You may choose to include outlets, and we would like to thank the public for the amazing additional information, quality and quantity of donations that we have received. where relevant about:

Section F Other optional information

Section G Declaration

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s)

Full name(s) Anthony Christopher Reynolds Position (eg Secretary, Chair of Trustees Chair, etc) Date

March 2012

TAR

6

THE MAGIC COTTAGE

CHARITY NUMBER 1190613

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2022

Page 1

Independent Examiner's Report to the Trustees of The Magic Cottage

I report to the trustees of The Magic Cottage on the accounts for the year ended 31st July 2022

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").

I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner's statement

The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in any material aspect:-

(1) the accounting records were not kept in accordance with section 130 of the Charities Act or

(2) the accounts did not accord with the accounting records or

(3) the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair" view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Steve Drake Chartered Certified Accountant (F.C.C.A.)

24 James Street, Ebbw Vale, Blaenau Gwent, NP23 6JG

27th March 2023

Page 2

THE MAGIC COTTAGE - CHARITY NUMBER 1190613 ANNUAL ACCOUNTS FOR THE YEAR ENDED 31st JULY 2022 STATEMENT OF FINANCIAL ACTIVITIES

INCOMING RESOURCES
Donations and Legacies
Shop Takings
Grants Received
Recycling
Caravan Income
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Cost of Goods Sold
Direct Expenses
Other shop sundry purchases
Employee salaries
Employer NI Contributions
Premises rent
Rates on premises
Heat, Light and Power
Repairs and Maintenance
Caravan Expenses
Sum up charges
Bank charges
Food and Refereshments
Advertising and Marketing
Accountancy
Companies House
Cleaning costs
Delivery and Collection costs
Depreciation on fixed assets
Profit arising on sale of fixed assets
Chariable Donations
Staff Welfare
Postage
Equipment repairs and renewals
Insurance
Legal Expenses
Motor and Travelling costs
Printing and Stationery
Pension Costs
Licences and Subscriptions
Telephona and Internet
TOTAL RESOURCES EXPENDED
NET INCOMING/(OUTGOING) RESOURCES
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
142.00
255,964.40
-
3,183.50
5,675.67
264,965.57
£
11,248.21
414.65
203.68
117,286.82
1,944.44
78,340.58
2,075.25
10,659.90
3,386.80
9,072.02
1,908.22
4.49
62.41
38.50
1,200.00
8.00
1,357.13
1,764.50
10,227.76
(13,478.86)
1,947.24
113.60
16.25
2,281.66
2,861.94
-
3,607.83
1,061.59
972.00
-
844.20
251,430.81
13,534.76
143,538.00
157,072.76		 Restricted
funds
£
-
-
-
-
-
-
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,445.00
-
-
-
-
-
-
-
-
-
-
1,445.00
(1,445.00)
1,445.00
-		 Total
this year
£
142.00
255,964.40
-
3,183.50
5,675.67
264,965.57
£
11,248.21
414.65
203.68
117,286.82
1,944.44
78,340.58
2,075.25
10,659.90
3,386.80
9,072.02
1,908.22
4.49
62.41
38.50
1,200.00
8.00
1,357.13
1,764.50
10,227.76
(13,478.86)
3,392.24
113.60
16.25
2,281.66
2,861.94
-
3,607.83
1,061.59
972.00
-
844.20
252,875.81
12,089.76
144,983.00
157,072.76		 Total
last year
£
52,483.00
222,901.00
66,124.00
3,103.00
4,454.00
349,065.00
£
-
-
44.00
82,152.00
-
64,080.00
-
7,702.00
4,579.00
4,968.00
-
69.00
-
79.00
1,080.00
-
646.00
2,827.00
8,359.00
(3,398.00)
2,350.00
180.00
57.00
13,643.00
2,203.00
150.00
3,914.00
368.00
555.00
343.00
336.00
197,286.00
58,219.65
86,763.35
144,983.00

Page 3

THE MAGIC COTTAGE BALANCE SHEET AS AT 31ST JULY 2022

Note
FIXED ASSETS
Fixtures and Fittings - nett of depreciation
Motor Vehicles - nett of depreciation
Caravan - nett of depreciation
CURRENT ASSETS
Sum up Debtor
Stock of purchased goods
Other Debtors
Prepayments
Cash in hand
Cash at bank
TOTAL ASSETS
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Expense creditors
NET ASSETS
FUNDS OF THE CHARITY
Unrestricted funds
Restricted Income funds
TOTAL FUNDS

Signed by the following two trustees on behalf of all the trustees

Print Name Date of Approval

Page 4

THE MAGIC COTTAGE

NOTES TO THE ACCOUNTS

NOTE 1 - BASIS OF PREPARATION

1.1 Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with:

(i) the 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 of Ireland (FRS 102) issued on 16 July 2014 and with,

(ii) the Charities Act 2011.

1.2 Change in basis of accounting

There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.

1.3 Changes to previous accounts

No changes have been made to accounts for previous years.

NOTE 2 - ACCOUNTING POLICIES

INCOMING RESOURCES

2.1 Recognition of Incoming resources

These are included in the Statement of Financial Activities when:

(i) the charity becomes entitled to the resources;

(ii) the trustees are virtually certain they will receive the resources; and

(iii) the monetary value can be measured with sufficient reliability.

2.2 Incoming resources with related expenditure

Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the Statement of Financial Activities.

2.3 Grants and donations

Grants and donations are only included in the Statement of Financial Activities when the Charity has unconditional entitlement to the resources.

2.4 Investment Income

This is included in the accounts when receivable.

EXPENDITURE AND LIABILITIES

2.5 Liability recognition

Liabilities are recognized as soon as there is a legal or constructive obligation committing the charity to pay out the resources.

NOTE 3 - DETAILS OF CERTAIN ITEMS OF EXPENDITURE

3.1 Fees for examination of the accounts
Independent examiner's fees for reporting on the accounts		 2022 (£)
1,200.00		 2021 (£)
1,080.00

Page 5

THE MAGIC COTTAGE

NOTES TO THE ACCOUNTS (CONT'D)

NOTE 4 - DEBTORS AND PREPAYMENTS

Analysis of debtors: amounts falling due within one year

Sum Up Debtor
Other Debtors
Rent Prepaid
NOTE 5- CASH AT BANK AND IN HAND
Cash at bank
Cash in hand		 2022 (£)
1,434.10
2,703.36
12,986.52
17,123.98
2022 (£)
70,325.66
10,734.68
81,060.34		 2021 (£)
841.38
30,510.00
12,966.67
44,318.05
2021 (£)
59,809.61
10,150.03
69,959.64

NOTE 6 - CREDITORS AND ACCRUALS

Analysis of creditors: amounts falling due within one year

Accountancy
Staff wages
HMRC - PAYE/NIC
Pension
Cleaning
British Gas
Sundries
Rent		 2022 (£)
1,200.00
9,879.29
3,515.06
294.02
-
-
-
-
14,888.37		 2021 (£)
1,080.00
475.87
(1,422.19)
58.87
145.00
119.74
41.08
1,085.00
1,583.37

Page 6

GARRY WHITE and COMPANY CHARTERED CERTIFIED ACCOUNTANTS

24, JAMES STREET, EBBW VALE, BLAENAU GWENT NP23 6JG

S. DRAKE , F.C.C.A., A.T.T. Our Ref: WP/8210/SD Your Ref: Lesley/Tony Date: 27th March 2023

TEL: 01495 302382 MOBILE 07977 729071 Email: steve@garrywhiteand.co.uk www.garrywhiteand.co.uk

Mr. and Mrs L. Reynolds The Magic Cottage Charnwood Forge Lane Llangynidr Powys NP8 1LU

Dear Lesley and Tony,

Re: - The Magic Cottage – Financial Statements – year ended 31[st] July 2022

Further to the receipt of the various e mails from you over the last week I now have pleasure in attaching a copy of the Financial Statements for your perusal and/or comments please.

I would again emphasize the comments made in the second paragraph on page 1 of the Statements namely that as Trustees you consider that the Audit Requirement of Section 144 of the Charities Act does not apply and so I am reporting to you as an Independent Examiner.

I would draw your attention to the following points:

(1) Background to the Accounts

The Accounts have been prepared on an accrual basis as per guidelines laid upon me by the Charity Commission. Pages 3 and 4 of the Accounts show the Income and Expenditure of the Charity during the 12-month period. Due to conditions laid down in the various grant literature I have had to separate these into Restricted and Unrestricted funds. The Restricted fund section shows the various grants received and the related expenditure paid out in respect of those grants. No restricted funds remained at the 31[st] July 2022.

If you look at pages 3 and 4 of the Accounts you will note that total Income amounted to £264,965.57 whereas total expenses amounted to £252,875.81. If you look at the balance sheet on page 4 of the Accounts total reserves have increased this year from £144,983.00 to £157,072.76.

(2) Work undertaken on these accounts

Whereas with the previous accountant you had entered all figures into the relating software which was then VT software, this year one of my staff members, Cara, has entered all information into the Xero software on your behalf. Even though my bill is £100 plus vat higher than the previous accountant it does not reflect all the hours that Cara has undertaken. Due to the fact that the organisation is a registered charity and I can see the efforts you put in to help deprived families in the area I am willing to forgo a lot of Cara’s time costings to help out the Charity.

(3) Accounting year ended 31[st] July 2023

We are nearly 8 months into the next accounting year. If you wish Cara to enter figures into Xero for you, please let me know. We will need you to pull in the Co-Operative bank statements for us. Cara has sent the form to Xero to send on to the bank.

(4) Signing of the Accounts by the trustees

Once the Accounts have been approved by the trustees could you please ensure that they are signed by 2 of the trustees on behalf of the board on page 5 where indicated. Could you ensure that the relating trustees print their full name alongside their signature. Once a copy has been signed could you return a signed copy to my office. Electronic or scanned signatures are sufficient.

(5) Annual Charity Commissioners return

If you need help in submitting this form please let me know. The accounts which are in PDF format will have to be uploaded to the Charity Commission along with your trustees report for the year. To enable me to file the documents I will need the report itself as well as the Charity Commission password.

(6) Fee Bill

This is attached for your kind attention.

(7) Business Records

These can be collected from my office when convenient.

I look forward to receiving a copy of the Accounts back signed by the trustees.

Best Wishes,

Steve Garry White and Company