**Registered Charity No. 200759**
**SOUTH MOLTON COTTAGE HOMES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **SOUTH MOLTON COTTAGE HOMES**
## **ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **CONTENTS**
||**Pages**|
|---|---|
|Trustees Report|1|
|Legal & Administrative Information|2|
|Independent Examiners' Report|3|
|Statement of Financial Activities|4|
|Balance Sheet|5|
|Notes to the Accounts|6-7|
## **SOUTH MOLTON COTTAGE HOMES**
## **TRUSTEES REPORT**
## **ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
The trustees of the charity submit their annual report and the financial statements for the year ended 31 March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity, as well as complying with statutory requirements and the governing document.
## **Constitution, Organisational Structure and Objectives**
The charity registered as a charity on 22 December 1961. It is governed by the scheme of High Court of Justice of 23 June 1930 varied by schemes of 11 August 1970, 28 March 1972 and 12 November 1990. Its objectives are the provision and maintenance of homes for poor single people of at least 60 years of age and poor married couples at one of whom shall be at least 60 years of age and who (except in special cases to be approved by the charity commissioners) are to be inhabitants of the area of benefit.
In planning our activities we have kept in mind the Charity Commission's guidance on public benefit and have followed this guidance to demonstrate the charitable aims are for the public benefit.
## **Trustees and their Interests**
New Trustees are appointed by a democratic process.
## **Achievements and Performance**
Due to Covid 19 it has been a very challenging year with many of the Trustee meetings taking place via the internet on Zoom. However, we were able to meet up in a large well-ventilated room, socially distanced to view and discuss evidence and take action relating to the withdrawal of a letter of appointment, resulting in considerable amount of work during this difficult time.
All the appropriate annual checks have been carried out and during the year one of the cottages became vacant and we took the opportunity to have it rewired, redecorated, replumbed and the heating system updated. Other work carried out included the replacement of the front doors of all eight cottages with UPVC doors; the final phase of our rewiring program has taken place, now all the cottages have been rewired and most have had their heating system updated, a program of major work is underway to renew sections of the roofs.
Following adherence to the Covid-19 guidelines, I am pleased to report that all of the residents have kept Covid-free.
In January, one of our longstanding Trustees stood down for medical reasons, our thanks go to her for all her hard work and dedication over many years. As a result of this, we advertised for a replacement Trustee, unfortunately, no-one has come forward.
South Molton Cottage Homes do not employ any staff and no remuneration or expense for Trustees was paid. We have one Trustee who has served for over ten years and, along with the other Trustees, are reviewed at the appropriate time.
The Charity receives no overseas funding and has not transferred money overseas.
## **Risks**
The trustees have reviewed all known risks and have satisfied themselves that there are adequate systems and procedures in place to mitigate the risks identified.
## **Reserves Policy**
The Trustees, after reviewing our Reserve Policy Fund, decided that no further increase is required at this time and that the £40,000 figure will cover any unforeseen circumstances, should they arise.
## **Investment policy**
The trustees have the power to invest in such assets as they feel is appropriate to the charity.
## **ON BEHALF OF THE BOARD**
Mr S White Dated: 7 December 2021 Trustee
Mr S C Squire Dated: 7 December 2021 Trustee
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## **SOUTH MOLTON COTTAGE HOMES**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees:** Mr Stephen White (Chairman) Mr Sidney Claude Squire Mrs Janey Easton Resigned 11/01/21 Mrs Lyn Winter Revd Dr Michael Grandey Mr E J (John) Moore **Charity Number:** 200759 **Bankers:** NatWest 41 High Street Barnstaple Devon EX31 1HJ **Accountants:** Azets Lime Court Pathfields Business Park South Molton Devon EX36 3LH **Charity Contact:** Mr Stephen White Crosseview 40 Brook Meadow South Molton Devon EX36 4BN
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## **INDEPENDENT EXAMINERS REPORT TO THE COMMITTEE OF MANAGEMENT OF SOUTH MOLTON COTTAGE HOMES**
I report on the accounts of the charity for the year ended 31 March 2021, which are set out on pages 4 to 7.
## **Respective Responsibilities of Trustees and Examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act,
- to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, and
- to state whether particular matters have come to my attention.
## **Basis of Independent Examiner's Statement**
My examination was carried out in accordance 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 includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken 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 'true and fair view' and the report is limited to those matters set out in the statement below.
## **Independent Examiner's Statement**
In connection with my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Dated: 7 December 2021
Mrs Elizabeth Smith ACA, FCCA, CTA Azets Lime Court Pathfields Business Park South Molton Devon EX36 3LH
3
## **SOUTH MOLTON COTTAGE HOMES STATEMENT OF FINANCIAL ACTIVITIES AS AT 31 MARCH 2021**
|**Unrestricted income**
Contributions from Occupants
Bank interest received -
Capital reserve a/c
Western Power Wayleave
**Direct charitable expenditure**
Water Rates
Council Tax
Heat and light
Insurance
General repairs
Accountancy
Management fees
Honoraria
Advertising
Almshouse Association
**Surplus for the year**|**£**
**£**
35,545
16
27
35,588
3,508
-
-
1,149
19,190
479
4,194
250
55
421
29,246
6,342
**2021**|**£**
**£**
34,826
81
27
34,934
2,472
-
-
1,109
11,802
476
3,911
250
-
-
20,020
14,914
**2020**|**£**
**£**
34,826
81
27
34,934
2,472
-
-
1,109
11,802
476
3,911
250
-
-
20,020
14,914
**2020**|
|---|---|---|---|
||3,508
-
-
1,149
19,190
479
4,194
250
55
421|2,472
-
-
1,109
11,802
476
3,911
250
-
-||
|||||
||||14,914|
4
## **SOUTH MOLTON COTTAGE HOMES BALANCE SHEET AS AT 31 MARCH 2021**
|**Note**
**Fixed Assets**
Tangible assets
1
**Current Assets**
4
Debtors
Cash at bank and in hand
**Creditors:**
5
Amounts falling due within one year
**Net Current Assets**
**Net Assets**
**Capital and Reserves**
Unrestricted Income Funds
**Surplus for the year**
**Total Reserves**|**2021**
**£**
-
-
17,515
153,020
170,535
(19,690)
150,845
150,845
144,503
6,342
150,845|**2020**
**£**
-|
|---|---|---|
|||-
17,315
135,612|
|||152,927
(8,424)|
|||144,503|
|||144,503|
|||129,589
14,914
144,503|
## **ON BEHALF OF THE BOARD**
Mr S White Dated: 7 December 2021 Trustee Mr S C Squire Dated: 7 December 2021 Trustee
The annexed notes form part of these accounts.
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## **SOUTH MOLTON COTTAGE HOMES**
## **NOTES TO THE ACCOUNTS - YEAR ENDED 31 MARCH 2021**
## 1 **ACCOUNTING POLICIES**
## (a) **Basis of preparation of financial statements**
The financial statements have been prepared under the historical cost convention, except for investments which have been included at revalued amounts. They have been prepared in accordance with The Charities Act 2011 and the Statement of
Recommended Practice (SORP FRSSE) - Accounting and Reporting by Charities and the Financial Reporting Standard for Smaller Entities (effective April 2015).
(b) **Asset Policy** Fixed Assets purchased for continuing use by the charity for the furtherance of its objectives are capitalised at cost and depreciated over their economic lives.
Investments held as fixed assets are revalued at market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities (SOFA).
## (c) **Depreciation**
Tangible fixed assets are written off over their useful economic lives as follows:
- Buildings - 2% on a straight line basis.
- Fixtures, fittings & equipment - 20% reducing balance
As the assets were purchased close to the end of the accounting period depreciation has not been provided for this year as it was immaterial.
## (d)
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds donated for use in a restricted area.
## (e)
## **Incoming Recognition**
All incoming resources are included in the SOFA when the charity has entitlement to the income, it is probable that they will receive it and the amount can be measured reliably.
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.
Grants and donations are only recorded in the SOFA when the charity has unconditional entitlement to the resources.
Investment income is included when receivable.
## (f)
## **Expenditure Recognition**
Expenditure is recognised on an accrual basis as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity is not registered for VAT and all expenditure includes this where appropriate.
Costs of generating funds comprise the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities, costs of an indirect nature necessary to support them and costs associated with meeting the constitutional and statutory requirements of the charity.
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2
## **SOUTH MOLTON COTTAGE HOMES**
## **NOTES TO THE ACCOUNTS - YEAR ENDED 31 MARCH 2021**
## **OPERATING SURPLUS**
|This is stated after charging:
Compilation report fees|**2021**
**£**
500|**2020**
**£**
500|
|---|---|---|
3
## **INVESTMENTS**
The charity's investment of 41 Accumulation Units in the NAACIF was valued at £3,934.12 at 31 March 2021 (£3,061.36 at 31 March 2020).
4
## **CURRENT ASSETS**
|Debtors
Bank Current Account
Capital Reserve Account|**2021**
**£**
17,515
112,786
40,234
170,535|**2020**
**£**
17,315
95,394
40,218|
|---|---|---|
|||152,927|
5
## **CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Creditors
Accruals|**£**
19,190
500
19,690|**£**
7,924
500|
|---|---|---|
|||8,424|
6
## **CONTROL**
The company was controlled throughout this period by its trustees. The present trustees are as listed on page 2.
7
## **TRUSTEES**
The trustees were not remunerated or reimbursed for any expenses during the period.
8
## **TAXATION**
As a charity, South Molton Cottage Homes is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.
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