OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

Ferring Country Centre Limited Limited by Guarantee

Trustees Report

and Financial Statements for the year ended 31[st] December 2021

Registered Charity Number 297286 Registered Company Number 2086358

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

I NDEX

Page
Charity Information 1
Report of the Trustees 2
Independent Auditor’s Report 13
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Accounting Policies 19
Notes to the Financial Statements 22

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CHARITY INFORMATION

Patron

The Duchess of Norfolk

Trustees Robert Rogers (Chairman) Linda Clark (Treasurer) Ann Boughton-Leigh Jane Cole Anne Cook Peter Liverman Debbie Medlock

Registered and Principal Office Rife Way Ferring Worthing West Sussex BN12 5JZ

Registered Charity Number 297286

Registered Company Number 2086358

Key Management Personnel Chief Executive Officer Hannah Tombs Head of Operations Simon Livesley Head of Facilities Jason Coomber Head of Finance Nicola King Head of Commercial Samantha Kirk Independent Auditors Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Bankers National Westminster Bank Plc South Street Worthing West Sussex BN11 3AR

Solicitors

Miller Parris 3-9 Cricketers Parade Broadwater Street West Worthing West Sussex BN14 8JB

Page 1

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

The Trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2022the Companies Act 2006, together with the accounts for the year ended 31 December 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102), effective 1 January 2019, in preparing the annual report and financial statements of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Ferring Country Centre is a charitable company limited by guarantee, incorporated on 31 December 1986, and registered as a charity on 29 July 1987. It is governed by the Memorandum and Articles of Association of the charitable company and is controlled by a Board of Trustees whose members are elected at the Annual General Meeting and are directors for the purposes of company law and trustees for the purposes of charity law.

Trustees

Ferring Country Centre has a Board of Trustees, who all bring their own knowledge, skills and passion to benefit the Charity. The Board elects its Chair on an annual basis. During 2021 there were no changes to the Board of Trustees, ending the year as we started with seven Trustees.

Trustees are recruited as and when a need is identified, with an emphasis on ensuring an appropriate skill set amongst the membership. The recruitment process requires potential trustees to submit their Curriculum Vitae to the Chairman of the Board. A selection process consisting of an informal visit and interview is undertaken and appointment to the Board is confirmed by the existing members and ratified at the following AGM. All new Trustees undertake a full induction programme ensuring that they are aware of their legal obligations under charity and company law. They receive copies of Ferring Country Centre’s Memorandum and Articles of Association and the Charity Commission Booklet “CC3 The Essential Trustee”. In line with the organisational Conflict of Interest policy, all Trustees are required to complete the Conflict of Interest, Related Party Transaction and Annual Declaration form for each year that they are in office.

The Board of Trustees meet four times per annum, these meetings run in line with the financial quarters. Board meetings follow an agreed agenda with various standing matters, including full reporting of management accounts, risk, health & safety, review of existing policies and adoption of new policies. Sub-groups of the Board are set up as and when necessary.

2021 presented us with a varied range of COVID-19 restrictions. During the year we flexed to the restrictions and, when required, used secure virtual meeting platforms to enable us to continue without interruption to our meeting schedule. We were able to hold our AGM in person in June.

In accordance with the Articles of Association, one-third of the trustees retire at the Annual General Meeting but are eligible for re-election. Our current Articles of Association were adopted at the 2019 AGM.

Decision making is undertaken by the Trustees at board meetings following briefings and discussions. The Board appoints a team of professional managers; day-to-day management of the Charity is delegated to the Chief Executive Officer and then through the post holder to the management team.

Remuneration of Key Personnel

The Chief Executive Officer’s salary is reviewed annually by the Board of Trustees. The CEO, Chairman and Treasurer review all other salary rates and present their recommendations for the annual pay review to the Board for approval and subsequent implementation.

Our staffing team is our key asset in the delivery of our support work. In 2018 we committed to work towards becoming a Living Wage Foundation employer. We achieved that status in April 2019, meaning that we pay the “real living wage” which is above the national living wage set by the Government.

Equal Opportunities

Ferring Country Centre is committed to ensuring that all job applicants and employees are treated fairly and valued regardless of age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, gender, or sexual orientation and are not disadvantaged by unjust conditions or requirements. This principle applies to recruitment, promotion, training, benefits and facilities. Ferring Country Centre meets its legal obligations and promotes the spirit of equal opportunity in all fields.

Page 2

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

Risks

The Trustees and Management of Ferring Country Centre have given due thought and consideration to the major risks to which the Charity may be exposed and have systems in place which are designed to mitigate those risks. This includes a risk management matrix and a business continuity plan, both of which are reviewed on a regular basis. Risk is an agenda item and discussed at all Trustee meetings.

Throughout 2021 we continued to react to the great risks associated with the COVID-19 pandemic. The situation continued to be changeable and the effect of this on the organisation was the subject of ongoing action planning allowing us to mitigate the consequences of the pandemic to the best of our ability.

During 2021 we started to feel the impact of BREXIT, with some of the elements identified in our risk assessment coming to fruition, particularly those around rising costs. This is likely to remain a risk for the mid term and therefore should continue to be acknowledged.

Relationships with other organisations

As an organisation we know it is important to work in partnership with other organisations. This work continued to be in a different format during 2021 due to the ongoing pandemic situation. The reality of this has seen us establish relationships with a wider selection of organisations that have brought new opportunities to both Ferring Country Centre and those we support.

We have continued to work closely with West Sussex County Council throughout 2021, providing services to all those who access us, and doing so as safely as possible. During 2021, working alongside the Council, we were able to invite all those who had attended Ferring Country Centre prior to the pandemic to return.

The pandemic continued to limit our offer of activities, with our annual calendar of events being more restricted than in pre-pandemic times. However, we were able to hold some events including our Christmas Market.

We continue to work closely with Oak Grove College as well as other schools in our locality. During 2021 we saw one school leaver transition into our services.

Our links to our immediate community of Ferring are important to us. We ensure that we support the Parish Council when able to at all events. We are members of the Parish Council’s Platinum Jubilee Committee.

We were able to offer some corporate social responsibility volunteer opportunities during 2021. These were mainly in the warmer months when activities could be outdoor based. As life continues to normalise, we look forward to extending these opportunities further.

OBJECTS AND ACTIVITIES

The Charity’s objects clause as stated in its Articles of Association is:

“ For the benefit of persons with learning disabilities by providing such persons with working facilities in horticulture, agriculture, crafts, equestrianism and other related matters with the aim of assisting such persons to acquire and develop vocational and social skills .”

“ ” Our mission is: To create positive futures for customers and enable them to play a valued role in society .

In determining how best to pursue these objects the Trustees have had regard to the Charity Commission’s guidance on public benefit set out in the public benefit guides PB1, PB2 and PB3, specifically when making decisions or reviewing the Charity’s aims and objectives, and in developing plans for future activities and projects.

In accordance with our objects, Ferring Country Centre benefits people with learning disabilities in the West Sussex area. This benefit is met by our Day Service and Riding Therapy offers, which are in turn supported by our commercial activities.

Placements within our Day Service are mainly made through referrals by West Sussex Country Council. We also accommodate referrals from neighbouring local authorities and to individuals on a private placement basis.

Page 3

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

Our aim at Ferring Country Centre is to ensure that all our Day Service Customers are given the opportunity to meet their full potential. We undertake to fulfil this aim by providing a wide and varied programme of activities throughout our Centre. Activities are reviewed regularly and we actively engage with our Day Service Customers to understand their wants and wishes for their Centre. Detailed support plans are in place for all Day Service Customers and these allow us to fully understand their needs and aspirations and help us to deliver relevant outcomes for them. We pride ourselves on delivering a high-quality person-centred service, enabling those we support to overcome barriers in order to achieve their aspirations, whatever they may be, in a safe and supportive environment.

The way in which we operate as an organisation has changed during the past 24 months. Initially this was in response to the pandemic situation, but latterly it is clear that many of the changes enforced due to the pandemic have suited us well as an organisation.

The success of an organisation such as ours is due to a blended approach, with elements of commerciality to support our charitable output. Historically, our beneficiaries were allocated to a set department; these departments in turn were responsible for both the commercial and charitable outputs. At times this approach could cause a conflict between commerciality and charitable output. Our pandemic response was to offer our day service in a ‘pod’ approach. This meant that we aimed to keep a consistent group of Day Service Customers, with a consistent staff member; the pod was then allocated tasks for the day. This had worked well, so as we entered 2021, we amended our structure to introduce an Operations Department that was fully responsible for our Day Service Customers.

The change in structure detailed above saw the organisation split into six main areas these being:

All of these areas are supported by the administration, facilities and finance functions.

Our site allows us to offer a diverse range of activities to our Day Service Customers:

In addition to the departmental specific activities listed, the Operations Team is responsible for the dedicated Day Service Centre, which is equipped with three classrooms, an IT suite, a sensory room, a dining room and a commercial kitchen, in which cakes are produced daily for sale in Ranger’s Café. The Operations Team is also responsible for the Farm Classroom, based within Dales Farm, and the Woodwork Workshop.

Our facilities are used to deliver a varied programme of developmental and therapeutic activities, which include Music, Sing and Sign, Yoga, Fitness and many more.

We continue to be committed as an organisation to providing a high standard of facilities to our Day Service Customers. We also continue to invest in site improvements which will not only expand the range of activities on offer, but ensure they are delivered in a welcoming environment.

Our Riding School offers Riding Therapy Sessions, in which both adults and children with learning and/ or physical disabilities have the opportunity to experience horse riding. Riding Therapy Sessions offer both psychological and physical benefits to riders.

As an organisation we understand the importance of the community in which we are based and, accordingly, our Centre is open to the general public seven days a week as a Riding School, Visitor attraction, Café and Garden Centre. Whilst these activities are commercially focused, in order to support our charitable activities, they also bring the wider benefit of social inclusion to those we support.

Page 4

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

The social inclusion with our wider community is paramount to the ongoing success of our organisation. It enables our Day Service Customers to undertake roles which are valued in society in a safe and supported environment. It also assists the understanding of learning disabilities for those who may not have experienced them in their daily life. This in turn can help to break down barriers of prejudice.

Ferring Country Centre is privileged to benefit from a committed and skilled volunteer workforce. Our volunteers bring a great deal of knowledge, passion and experience to the organisation. We are sincerely appreciative of the great value our volunteers add. We also offer volunteering opportunities across the Centre to young people aged between 12 and 18.

ACHIEVEMENTS AND PERFORMANCE

The COVID-19 pandemic situation continued to have a significant impact on Ferring Country Centre throughout 2021; once again providing us with both challenge and opportunity. We have continued to respond to the changing situation in an agile manner with the ultimate aim to continue to provide services as safely as practicably possible.

Day Service

2021 started very much as 2020 ended with the ongoing risk of COVID-19 influencing and affecting the services we provided. We entered the third period of full lockdown on 5[th] January 2021, with no indication on how long this would last. Our Day Services remained open to all those who wished or could attend. In the event approximately 20 people per day attended. Those on the clinically extremely vulnerable (CEV) list who were given specific guidance to once again shield stayed away. However, Day Service Customers who chose to stay away or who had not as yet returned to onsite services continued to be offered access to virtual services; a full programme of activities was on offer throughout the week.

During January access to vaccinations was made available to all staff and the majority of the workforce were pleased to have access to these. The organisation also took the decision to purchase lateral flow tests for all staff, asking them to undertake a twice weekly testing regime. As the year progressed Day Services were added to the NHS Test and Trace scheme with lateral flow tests and weekly PCR tests becoming available to us free of charge. January also saw us being able to access free personal protective equipment (PPE), with a regular monthly delivery being put into place.

February saw the launch of the Spring 2021 COVID-19 response, setting out a stepped approach to the easing of restrictions. We found that in line with each step our onsite attendance increased, with average daily numbers reaching 35 per day by the end of April. Throughout the Pandemic we have worked closely with West Sussex County Council, ensuring that services were being offered to those most in need. At the beginning of 2021 this meant we were limiting onsite space to those living at home, or within a shared lives setting, but by May it was agreed that we could extend onsite services to all those who had previously attended the Centre. This was undertaken in a phased approach with average daily attendance figures reaching 55 per day by the end of July, then increasing further to 65 per day by Autumn.

Day Services ran for the whole 12 months of 2021, throughout which we ensured that all staff and Day Service Customers adhered to our COVID-19 secure processes. This resulted in us having no COVID-19 outbreaks onsite and no linked cases. We ensured that we kept detailed contact logs and adhered to government guidance in regard to isolation of confirmed contacts.

Our Day Service Customers continued to respond well to our COVID-19 secure working environment aided by our excellent team of support workers led by Simon Livesley (Head of Operations), Dee Caulcutt (Operations Manager) and Raffaella Starace (Operations Manager). Andy Fillery and Salita Warner (Facilities Team) worked tirelessly throughout the year to ensure that high standards of hygiene were maintained throughout the site. This remained a vital element of maintaining our COVID secure environment.

Online services continued throughout the year, although they were scaled back in the Autumn as demand dipped. A varied programme of activities was on offer including fitness, yoga, quizzes, music and chat sessions organised and supported by Jackie Tomlin (Volunteer and Training Manager) and Jackie Taylor-Miller (Outreach Coordinator).

As the year progressed, we were able to start offering activities that took place outside of the Centre. These included getting out into our community and participating in the million-mile beach clean and launching the FCC walk and talk group. We also invited external tutors into the Centre to deliver activities.

Page 5

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

REPORT OF THE TRUSTEES

During the Autumn months we were able to officially open our two new buildings: firstly, the grand opening of our Visitor Centre by our Patron, Her Grace, the Duchess of Norfolk. The Visitor Centre houses Ranger’s Café and our Shop and we used the occasion to share with those attending the pandemic stories of four of our Day Service Customers. This was a hugely successful evening and gave us the opportunity to show case some of the excellent work we undertook during the pandemic. Our second event was the opening of the Wooden Spoon Woodwork Workshop, with the building housing an additional classroom and a workshop fully equipped for our Day Service Customers to undertake a variety of woodwork activities. Joe Marler, Professional Rugby Player (England, British & Irish Lions and Harlequins) joined us for the afternoon to officially open the building.

With the risk of the Omicron variant of COVID-19 emerging towards the end of November, we reconsidered how we would mark Christmas within the Day Service. In place of our traditional Christmas Party we opted for an afternoon of Festive activities; these included a festive themed lunch, a chair disco DJ’d by one of our Day Service Customers, a pantomime performed by the management team and the launch of our Christmas video. These festive events were later shared via social media so those unable to attend were able to enjoy them.

2021 also saw us purchase a data management system for the Day Service. The transition to the new system, StoriiCare, commenced in March and continued throughout the year. The system provides us with a robust data management system which also has the ability to directly share key information between the Centre and home; this in time will be an excellent addition.

The year ended with West Sussex County Council announcing that our commissioned services contract would be extended beyond the previously extended end date of 31[st] March 2022 until 31[st] December 2023.

Commercial Activities and Animal Care

Throughout 2021 the ongoing pandemic situation continued to influence our commercial activities. The extended period of lockdown, which commenced in January and lasted until the implementation of the stepped approach to restriction easing, resulted in us only being able to offer significantly limited commercial activities in the first quarter of the year. During that time, we were able to open the Garden Centre, offer a limited take-away service from Ranger’s Café and allow single households to pre-book the outdoor play area. From 29[th] March we were allowed to recommence riding lessons and extend the outdoor play sessions allowing two families to attend. 12[th] April saw the reopening of outdoor hospitality and outdoor attractions, which enabled us to open the Farm and allow outdoor dining in Ranger’s Café. Then, 17[th] May saw the reintroduction of indoor hospitality and activities, meaning Ranger’s Café could fully open as well as soft play.

Whilst Dales Farm and the Riding School were both closed to the general public for the first three months of 2021 they were both able to be used by Day Services, who worked closely with Farm and Stables staff to care for the animals during this time. Within the Riding School, the staff led by Helen Bridger (Riding School Manager) ensured all horses were regularly schooled maintaining their fitness and behaviour ensuring they were lesson ready for when restrictions eased.

The time that the Riding School was closed was used to implement a new riding school management system called EC Pro This programme manages all aspects of lesson bookings and rider data, as well as acting as a scheduling system for horses and instructors.

The Riding School, having launched in the latter part of 2020, was significantly impacted by the third period of lockdown and we found that the break of three months resulted in a loss of momentum, which resulted in a slow recovery once we reopened. As people gained confidence with the eased restrictions, we saw an improvement in bookings, but these were lower than initially anticipated.

As we entered the Summer further easing of restrictions allowed us for the first time in 18 months to offer riding therapy sessions, initially as one to one sessions during July and August, with small group sessions being added from September. The long break in offering riding therapy seemed to impact the demand, this being significantly lower than pre-pandemic times. We had relaunched riding therapy sessions using a similar timetable to the one in place prior to the pandemic but by the Winter it became clear we were not offering sessions at the right time, as most were offered during the working day. It was evident that we would need to offer sessions at weekends and later in the day.

Page 6

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

As Spring arrived, we were once again able to open Dales Farm, although ticket sales remained online which allowed us to control attendance numbers in line with our COVID-19 risk assessment. Dales Farm had an excellent summer with strong visitor numbers. All of the animals were well cared for through out the lockdown periods with Kirstie Skinner (Animal Welfare Manager) working closely with the operations team to ensure all of their needs were met.

We were able to keep Ranger’s Café open, offering a limited take-away service in the first quarter of 2021. As restrictions eased, we were able to offer our full menu, initially for outside dinners only and later for indoor dinners. The café has been hugely popular in the locality and has enjoyed a good first full year of trading.

The Garden Centre, under the management of Malcolm Linfield, has enjoyed an excellent year with extremely strong sales. These were impacted by two key factors, firstly the Pandemic reignited people’s passion for gardening, and secondly the new café increased footfall at the Centre. We continue to extend our reputation for excellent quality plants.

We have again throughout 2021 remained agile as an organisation, responding and adapting to the changing COVID19 restrictions, ensuring we keep everyone as safe as practicably possible, whilst making sound decisions that will safeguard our future. The whole commercial team, led by Sam Kirk (Head of Commercial), has been key in this.

Site Development

2021 was a quieter year in regard to the development of the site, with no major building works undertaken. However, we did use the first three months of the year whilst Dales Farm was closed to the general public, to undertake some significant improvements on the pig and goat enclosures. The pig enclosure included the addition of a brick wall around the perimeter and hard standing areas within the enclosure. Similar work was carried out on the goat enclosure as well as the excellent addition of two turrets designed and built by Groves Sculpture who last year built our play castle.

An external front door was added to the Day Service building to ensure that the facility would be warmer and more weatherproof during the day; this also significantly improved the appearance of the entrance to the Day Service Building.

During the late summer we undertook notable improvement works on the Pavilion, adding in an animal first aid area for the Animal Welfare team and decorating the remainder of the space. This created a multipurpose space to be used by the Day Service and the Commercial team to offer toddler stay and play groups.

In the Autumn we planted 30 trees along the main driveway - formally named ‘Charles Way’, in memory of our founding chairman Charles Boughton-Leigh.

The success of the Garden Centre in the summer months led to a review of the spaces available to the Horticultural team for growing. This led to the agreement that we would invest in the regeneration of the twin span poly tunnel, with one side being benched out and allocated for growing and the remaining side being an area for Day Service Customers to use. This work began in December and will be concluded in the Spring of 2022 and will include a replacement roof and side and a new concrete base.

During December planning permission was granted for Dog Agility to take place within the Indoor Riding School. Planning restrictions were also changed on both the indoor and outdoor riding schools, allowing them to be used for mainstream riding lessons.

Much of the improvement undertaken during 2021 was done by our excellent in-house Facilities Team, under the management of Jason Coomber (Head of Facilities). The team work hard to ensure we are able to offer the very best facilities to our Day Service Customers.

Fundraising and Finance

The ongoing pandemic situation continued to impact our finances and our fundraising ability throughout 2021.

We continued to access various grants and furlough to support us during periods of full lockdown and, as matters eased, we took advantage of the Government’s Kickstart scheme and employed nine young people across the site,

Page 7

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

five of these went on to be given a permanent contract with the Centre and a further one was taken on as an Apprentice.

Fundraising has been impacted throughout the year because, even during times of relative freedom from restrictions, we chose to err on the side of caution and continue to limit the numbers on site at any one time. The Three Forts Marathon, a long-term supporter of the Centre, was able to hold their event in May, which was excellent news. We were also able to run a number of Christmas events, including a Christmas Fair, and the opportunity to supper or breakfast with Santa. All of these were successful events.

We received some fantastic support throughout the year from other organisations and community groups, who opted to make us their Charity of the year. We were also delighted to be the beneficiary of the Ferring Scarecrow trail, with over 70 entries around the village - they provided a great deal of Autumnal cheer.

During the year we ran two website appeals, one for the redevelopment of the Goat enclosure raising a total of £4.3k and one for the classrooms raising £2.7k. The funds raised for the goats were utilised within 2021, whilst the classroom work will take place during 2022.

Considering the ongoing pandemic situation, whilst we had a good year in terms of finances, we have continued to be pragmatic in our financial decision making and this has been made possible by the timely and first-rate work of Nicki King (Head of Finance).

Summary

2021 on the whole has been a positive year. We continued to live with and respond to the ongoing pandemic situation and we saw the arrival and roll out of the vaccine, which enabled life to be less restrictive. We were able to take small steps towards some sort of normality.

We spent the year focusing on the needs of our core beneficiaries, Adults with Learning Disabilities, ensuring that we were able to provide them with a high-quality day service in safe and secure environment. The Day Service has continued to evolve, flexing to changing needs in a changing world without losing focus on the provision of an environment in which everyone matters, feels valued and enabled to achieve their full potential.

Our work during 2021 was supported by our team of committed volunteers, who worked throughout the Centre giving their excellent and varied skills and time freely. Volunteers bring significant value to our organisation, and we are grateful for all they do. During 2021 we had 82 supporting us. We were delighted that at the beginning of December we were able to bring many of our volunteers together for a Christmas meal.

We worked with over 120 Day Service Customers during 2021, delivering a high quality, person centred and varied service to them all. Alongside this we continued to develop and grow our commercial activities. This was all achieved by the ongoing hard work and commitment of our team, both volunteer and employees, led by our dedicated management team, headed up by our excellent CEO, Hannah Tombs

2021 was an easier year than 2020 but still a very memorable one, once again presenting us with significant challenges throughout the months. As an organisation we believe that with every challenge there is also opportunity, and this allows us to approach adversity with positivity and optimism and for us to continue to grow and flourish as an organisation. We must look to the future and use the experiences of the past two years to develop ourselves and our organisation into being the very best that we can, delivering excellence to those we work with.

Page 8

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

REPORT OF THE TRUSTEES

FINANCIAL REVIEW

Ferring Country Centre ended the 2021 financial year with a surplus of £22.2k (2020 £14k), this equated to 1.25% of total income (2020 1.0%). COVID-19 continued to affect the financial performance of the organisation throughout 2021, with periods of closure for some of our commercial activities along with the continuation of reduced income from our Day Service contract.

We continue to invest in our site, with a focus on making sure we have excellent facilities for our Day Service Customers, this meaning they are safe, accessible, inclusive and welcoming. We have improved two enclosures on the farm, one for the pigs and one for the goats, adding sizable areas of hard standing that not only improve the conditions for the animals but also make them far more accessible for our Day Service Customers.

After another turbulent year, our finances continue to be in good health, we hold sufficient reserves should we need them and our cashflow has been stable throughout the year.

Our income for 2021 saw an increase against 2020 of £370k (25.92%), This was due to income generated through our new Ranger’s Café, Dales Farm and the Garden Centre. We were able to draw on COVID-19 support grants during the year for periods of restrictions and closures.

We identify two key areas of risk, these being:

  1. Our main income source is from one contract: our Day Service Contract with West Sussex County Council. (End date of 31[st] December 2023).

  2. The ongoing effect of the COVID-19 pandemic on placements and our ability to continue to operate our commercial activities.

We mitigate the first risk by working closely with West Sussex County Council, understanding their future plans for providing services to people with learning disabilities, and ensuring that we have an approach that is adaptable to ever changing demands and needs.

Considering the second risk, the ongoing pandemic situation, whilst it must continue to be acknowledged as a risk, with time this recedes as herd immunity develops along with our understanding of the disease and the ongoing development of treatments.

The Trustees have a prudent investment strategy with little or no risk and the income generated from these resulting from investments amounted to £3.6k, a 48.8% decrease (2020 £7k). This is due to us holding a lower level of cash in 2021 than we had done throughout the year of 2020, this reduction was due to our capital expenditure during 2020.

We have continued to invest in our site during 2021, undertaking smaller improvement projects, these have seen a capital commitment of £91k throughout the year.

The Charity’s reserves, as shown in notes 17 and 18 of the financial statements amounted to £919k. (2020 £815k) The Trustees consider the Charity’s available cash resources, for operational purposes, have increased by 9% or £82.1k and are shown in the table below.

n the table below.
Investments and surplus cash
Less: Restricted funds
Less: Designated funds		 2021
£
1,133,054
40,275
100,000
992,779		 2020
£
1,047,371
36,722
100,000
910,649

The Trustees review the Reserves Policy annually and have agreed that the Charity hold reserves equivalent to 6 months’ operating expenditure (expected to be £962k in 2022) to ensure the on-going delivery of its charitable objectives.

2021 produced donation income of £41k (2020 £49k) a decrease of 15%, split between Unrestricted £20k (2020 £20k) and Restricted £21k (2020 £29k). We have continued to delay the development of a detailed fundraising plan. It is

Page 9

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

REPORT OF THE TRUSTEES

vital that such a plan is in line with the fundraising regulator’s Code of Practice and is achievable to us as an organisation, as we look forward to a world in which we begin to live with COVID-19. This is something we will have in place by the end of 2022.

Donations, Supporters and Corporate Social Responsibility

Our sincere thanks go to all of those who give generously and support our organisation. You make it possible for us to achieve our objectives, invest in our offer and support those at the very core of our service, being any person with a Learning Disability.

In 2021 we received donations from:

Individual Donors

Tom Burstow, John and Eve Dean, Kamonchanok Suksai, Michael McKee, Mrs Wilson, Tracy Keegan, Carole Salder, Hilz Pollard, Martin Pollard, Vicky Woodard, Kenneth Carpenter and Andrea Mills

Trust, Foundations and Companies

Chiltern Charitable Trust, Southern Co-op, Rassasy, Worthing Lions, Stanford Lodge, Tendercare, Worthing and – District Society of Model Engineers, Grand Council of the Order of Royal and Select Masters Sussex, Worthing Indoor Bowling Greens Ltd, Waitrose, ACG Builders, Worthing Literacy Institute, Hill Barn Golf Club -Seniors, Merry Legs Assisted Riding, HASSRA, Littlehampton Rotary, Worthing Temple Lodge and Kreston Reeves

Legacies

We were fortunate to receive one legacy during the year.

Supporters & Corporate Social Responsibility

During 2021 as restrictions eased, we were able to offer some opportunities for corporate social responsibility, particularly through the summer months when tasks could be set outside.

We have maintained our relationships with the following supporters; Co-op Ferring, 3 Forts Marathon, Worthing Rugby Club and St Andrew’s Church Ferring. We have built good relations with Ferring Parish Council through our participation with the Ferring Jubilee Committee.

Page 10

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

REPORT OF THE TRUSTEES

PLANS FOR FUTURE PERIODS

2022 and beyond

2021 was a year in which we continued to be influenced by the COVID-19 pandemic. As we welcomed 2022, the situation was improving greatly. Whilst COVID-19 is here to stay, and cases were increasing with the arrival of a new variant, the success of the vaccine programme allowed the Country to have a much more normal Winter. With restrictions being about mask wearing, social distancing and vaccination, rather than staying home and closure of businesses.

As we look to the future, it is clear that 2022 will be less influenced by the pandemic, and therefore, a year in which we can focus on offering the very best of services to our core beneficiaries, our Day Service Customers, we will begin to develop our links in our communities to deliver some aspects of service away from the our site, beginning to embed the new normal within our work.

2022 is likely to be a year in which we will need to closely monitor our financial performance. With inflation at the highest level we have seen in decades, matters such as BREXIT, the pandemic and the war in the Ukraine all have a significant impact in this and we must plan for uncertain times. For us as an organisation this means we must remain prudent in our spending, to ensure that growing costs have a minimal impact on our organisation and those we support.

We continue to work closely with West Sussex County Council and envisage a time within the next twelve months when our contractual placements will reach our COVID safe capacity. Our contract with West Sussex County Council has been extended beyond its previously extended end date of 31[st] March 2022 to 31[st] December 2023. Our focus for the coming year will be to ensure that we are tender ready when the new framework tender is launched. We anticipate that this will be at the beginning of 2023.

The last two years have seen a great amount of change throughout the Centre and the main focus for us as an organisation is to continue to consolidate these changes as we move forward. With a competent and enthusiastic management team alongside financial stability this will be achieved and enable us to deliver excellent services and positive outcomes to all of our beneficiaries.

Whilst we were offering online services, we commissioned two classes that focused on improving the health of our Day Service Customers, yoga and fitness. These classes have been a great success with those who attend, seeing an improvement in their mobility and overall fitness. As society opened up, we were pleased to continue these on site in the dining room. Whilst this space is adequate for the classes in the short term, it is far from ideal in the longer term, and we have therefore applied for planning permission for a purpose-built Fitness/ Dance/ Drama Studio. Once we have obtained planning permission, we will identify grant making trusts to apply for capital funding.

2022 is the third year of our five-year strategic planning period. We will review our progress and will ensure our planned direction of travel is relevant for the current world whilst remaining focused on meeting the needs of our Day Service Customers which remain central to our decision making.

Improvement works for 2022 will include refurbishment of the three classrooms in the main building, including decorating, new furniture and the addition of IT, with smartboards. We will also be resurfacing the driveway and entrance road to the front of the building.

2022 will be the first year in which our new Café and our Riding School will be fully open throughout the year. This will enable to us to gauge the revenue they are likely to generate in future years which in turn supports our core purpose. It will also be the year that the Day Service is fully open since the start of the pandemic, and this will allow us to offer a full range of activities and continue to develop our offer to ensure we create a positive future for all.

Page 11

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 REPORT OF THE TRUSTEES STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees (who are also directors ol Ferring Country Centre Limited for the purposes of company lawl are responsible lor preparing the Report of the Trustees and the financial slalem&nls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practic&l. Company law require5 the Trustees to prepare financial slalemenls lor each financial year, which give a true and fair view of thè slate ol affairs c>1 the charitable company and ol the incoming resources and application of resources, including the income and expenditure, ol the charitable company'lor that period. In preparing these financial statements, the TruslÈes are required lo.. select suitable accounting policies and then apply them consislenlly. observe the methods and principles in the Charities SORP 2019 IFRS 1021. make judgefftenls and eslimales Ihal are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in th& financial slalemenls. prepare the financial slalemenls on the going concern basis unless il is inappropriat& lo presume that the charitable company will continue in operation. The Trustees are responsible lor keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position ol the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are alsD responsible lor safeguarding the ass61s ol the charitable company and hence for taking rèasonable steps lor the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware-. there is no relevant audit information of which the charitable company's auditor is unaware., and the Iruslees have taken all steps that they ought lo have taken to make themselves aware ol any relevant audit inforrnalion and lo &slablish that the auditor is aware ol that information. The Trusl&&s are responsible lor the maintenance and integrity of the corporate and financial information included o the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination ol financial statements may diller from legislation in other jurisdictions. APPOINTMENT OF AUDITORS Blue Spire Limited, have expressed their willingness to stand lor reappointment and a resolution proposing their reappointment will be pul forward al the Annual General Meeting of the charity. This report has been prepared having taken advantage ol the smal5 companies, exemption in the Companies Act 2006. proved by the Trustees and signed on their behalf. 24 May 2022 Dal& Robert A G Rogers Trustee- Chairman Page12

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Members of Ferring Country Centre Limited

Opinion

We have audited the financial statements of Ferring Country Centre Limited (the ‘charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 13

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR’S REPORT

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][3] directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 11], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Page 14

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INDEPENDENT AUDITOR'S REPORT Because ol the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misslalemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slalements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rathèr than errtsr, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description ol our responsibilities is available on the Financial Reporting Council's websi(e al.. hlt sJ/www.Irc.or .uk1Our-Wor￿AudItlAudIl-and-assUranaelSIandards-and- uidancelSlandards-and- uidance-lor- audilorslAudilors-res nsibililies-for-audivDescri lion-ol-auditors-res nsibililies-lor-audil.as x. This description foms part of our auditor's report Use of our report This report is made solely to the charitable company's members, as a body, in accordan￿ with Chapter 3 01 Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those matters we are required lo slate lo them in an audilorfs report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for OLJr aLJdil work, for this report, or for the opinions we have formed. Cawley Priory South Pallant Chichester West Sussex P019 7UY Geoff rey F For and on b SclHonsl FCA (Senior Slalutory Auditor) alf of Blue Spire Limited, Statutory Auditor Dale Ss Page 15

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Other trading activities
2
Investments
3
Charitable activities
4
Other
5
Total
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
Total
Net Income/(expenditure)
Transfers between funds
18, 19
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 General
Designated
£
£
25,565
-
81,258
-
3,567
-
1,463,850
-
195,260
-
1,769,500
-
399
-
1,751,527
-
1,751,926
-
17,574
-
86,177
(85,080)
103,751
(85,080)
815,410
2,592,955
919,161
2,507,875
Unrestricted Funds		 Restricted
Funds
£
26,267
1,082
-
-
-
27,349
-
22,699
22,699
4,650
(1,097)
3,553
36,722
40,275		 2021
Total
Funds
£
51,832
82,340
3,567
1,463,850
195,260
1,796,849
399
1,774,226
1,774,625
22,224
-
22,224
3,445,087
3,467,311		 2020
Total
Funds
£
190,457
5,899
6,965
1,093,582
130,019
1,426,922
513
1,412,437
1,412,950
13,972
-
13,972
3,431,115
3,445,087

None of the charity’s other activities were acquired or discontinued during the above two financial years.

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.

Page 16

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2020 Note FIXED ASSETS Tangible assels 2.407,875 2,492,955 CURRENT ASSETS siotJ( of goods for resale Debtors Cash 81118nd 8nd in b8nk T¢tal currènt assets 14,123 60,823 1.133,054 1.208,000 8,414 19,942 1.047,371 1.075,727 CURRENT LIABILITIES Creditors.. amounis falling due wlhin one year 14 148.564 123,595 Net current assetsllli3blllt18sI 1,059,436 952.132 3,467,311 3.445.087 THE FUNDS OF THE CHARITY Res¢rl¢ted funds 40.275 36.722 UnrÈ5triGted funds Fixed Asset reserve Designated lund8 Gener81 fvnd8 Total unrèstricted funds 18 18 18 2,407,875 loo,000 919,161 2,492,955 100.000 815.410 3.427.036 3.408.365 Total charlty funds 18 3.467.311 3.445.087 These accounts have been prepared in accorllance wlh Ihe provislons applicable 10 Companies subject lo the small companie5, fegime. ThÈ notes on pages 2210 32 form part of these accounis. pproved by the Iruslees 24 May 2022 and signed on their behalf. Robert A G Rogers T￿Slee- Chairman Ferrlng Country Centre Lirnited Registered charity no.- 297286 Reg151ered company no.: 2086358 Page 17

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF CASH FLOWS

Note
£
£
Net cash flow from operating activities (see below)
172,589
Cash flow from investing activities
Payments to acquire tangible fixed assets
(91,073)
Proceeds on disposal of tangible fixed assets
600
Interest received
3,567
Net cash flow from investing activities
(86,906)
Net increase/(decrease) in cash and cash equivalents
85,683
Cash and cash equivalents at 1 January 2021
1,047,371
Cash and cash equivalents at 31 December 2021
1,133,054
Cash and cash equivalents consist of:
Cash at bank and in hand
1,133,054
Cash and cash equivalents at 31 December 2021
1,133,054
Reconciliation of net income to net cash flow from operating activities
£
£
Net income for the year
22,224
Adjusted for:
Interest receivable
(3,567)
Depreciation and impairment of tangible fixed assets
173,077
Loss/(profit) on disposal of tangible fixed assets
2,476
Decrease/(increase) in stock
(5,709)
Decrease/(increase) in debtors
(40,881)
Increase/(decrease) in creditors
24,969
150,365
172,589
2021
2021		 £
£
334,637
(651,498)
-
6,965
(644,533)
(309,896)
1,357,267
1,047,371
1,047,371
1,047,371
£
£
13,972
(6,965)
131,033
14,905
(2,979)
176,735
7,936
320,665
334,637
2020
2020		 £
£
334,637
(651,498)
-
6,965
(644,533)
(309,896)
1,357,267
1,047,371
1,047,371
1,047,371
£
£
13,972
(6,965)
131,033
14,905
(2,979)
176,735
7,936
320,665
334,637
2020
2020
334,637

Page 18

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ACCOUNTING POLICIES

General information, scope and basis of the financial statements

Ferring Country Centre Limited is a private company, limited by guarantee, incorporated in England with the company number 02086358. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office and principal place of business is Rife Way, Ferring, Worthing, West Sussex, BN12 5JZ and its operations are outlined in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming Resources Policy Notes

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets such cash deposits and includes interest received. Interest income is recognised using the effective interest method.

Resources Expended Policy Notes

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Staff costs, support costs and governance costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. Staff costs have been allocated between costs of raising funds, charitable activities and governance costs on the basis of time spent by staff. Support costs cannot be directly attributed to particular headings and have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Support costs have been allocated to charitable activities on the best estimate of the use of those resources.

Governance costs are costs associated with the general running of the charity as opposed to the day to day activities Governance costs have been allocated to cost of charitable activities on the basis they form part of carrying out those activities.

Allocation of support costs and governance costs

Support costs and governance costs are allocated to the different activities within expenditure on charitable activities on the basis of the number of clients involved in each activity.

Page 19

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ACCOUNTING POLICIES

Employee benefits

When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Pension costs

The charity operates a defined contribution pension scheme. Contributions to the scheme are charged to the statement of financial activities on a payable basis.

Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

VAT

The Charity is registered for VAT and operates on a partial exemption basis. Costs are recorded inclusive of VAT within the SOFA where they relate to exempt supplies with other irrecoverable amounts expensed as they arise.

Taxation

The charity is considered to pass the tests set out in sections 466 to 493 Corporation Tax Act 2010 (CTA 2010), as such no income tax is payable on the charity's activities.

Fixed Assets Policy Notes

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Assets in the course of construction - nil. Freehold buildings - 3.33%-5% per annum on cost. Freehold land - nil. Plant & machinery - 25% per annum on cost. Fixtures, fittings & equipment - 25% per annum on cost. Motor vehicles - 25% per annum on reducing balance basis.

Stock

Small quantities of goods such as seeds, compost, animal feed and medicines and office stationery are purchased when required. Any balance of such items on hand at the accounting date are negligible and have not been valued or shown as stock. Stocks of plants and associated materials for resale are shown in the balance sheet at the lower of cost and net realisable value.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 20

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

ACCOUNTING POLICIES

Funds Structure Policy Notes

Restricted funds

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the note 18 of these financial statements.

Unrestricted funds

Unrestricted funds 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.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 21

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies

1. Donations and legacies
Donations
Legacies
Donations
Legacies		 General
Designated
£
£
20,030
-
5,535
-
25,565
-
General
Designated
£
£
19,706
-
141,569
-
161,275
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
21,267
5,000
26,267
Restricted
Funds
£
29,182
-
29,182		 2021
Total
Funds
£
41,297
10,535
51,832
2020
Total
Funds
£
48,888
141,569
190,457

2. Other trading activities

2. Other trading activities
Fundraising event income
Other fundraising income
Fundraising event income
Other fundraising income		 General
Designated
£
£
1,841
-
79,417
-
81,258
-
General
Designated
£
£
1,168
-
4,671
-
5,839
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
1,082
-
1,082
Restricted
Funds
£
60
-
60		 2021
Total
Funds
£
2,923
79,417
82,340
2020
Total
Funds
£
1,228
4,671
5,899

3. Investments

Bank interest Bank interest

General
Designated
£
£
3,567
-
3,567
-
General
Designated
£
£
6,965
-
6,965
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
-
Restricted
Funds
£
-
-		 2021
Total
Funds
£
3,567
3,567
2020
Total
Funds
£
6,965
6,965

Page 22

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

4. Income from charitable activities

4. Income from charitable activities
Services to beneficiaries
Livery and Riding Therapy Unit
Horticulture
Catering Services
Small Animal Farm
Shop sales
Services to beneficiaries
Livery and Riding Therapy Unit
Horticulture
Catering Services
Small Animal Farm
Shop sales		 General
Designated
£
£
909,254
-
96,970
-
91,220
-
239,144
-
100,109
-
27,153
-
1,463,850
-
General
Designated
£
£
891,562
-
49,046
-
64,371
-
42,829
-
40,924
-
4,850
-
1,093,582
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
-
-
-
-
-
-
Restricted
Funds
£
-
-
-
-
-
-
-		 2021
Total
Funds
£
909,254
96,970
91,220
239,144
100,109
27,153
1,463,850
2020
Total
Funds
£
891,562
49,046
64,371
42,829
40,924
4,850
1,093,582

5. Other incoming resources

5. Other incoming resources
Friends of Ferring Country Centre
Other miscellaneous income
Government COVID-19 support
Friends of Ferring Country Centre
Other miscellaneous income
Government COVID-19 support		 General
Designated
£
£
105
-
146
-
195,009
-
195,260
-
General
Designated
£
£
45
-
-
-
129,974
-
130,019
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
-
-
-		 2021
Total
Funds
£
105
146
195,009
195,260
2020
Total
Funds
£
45
-
129,974
130,019

Page 23

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

6. Raising funds

Fundraising events cost
Other Fundraising costs
Fundraising events cost
Other Fundraising costs		 General
Designated
£
£
-
-
399
-
399
-
General
Designated
£
£
-
-
513
-
513
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
-		 2021
Total
Funds
£
-
399
399
2020
Total
Funds
£
-
513
513

7. Expenditure on charitable activities

7. Expenditure on charitable activities
Direct costs
Personnel costs
Depreciation
Disposal of fixed assets
Support costs (see note 8)
Direct costs
Personnel costs
Depreciation
Disposal of fixed assets
Support costs (see note 8)		 General
Designated
£
£
208,344
-
396,231
-
54,774
-
2,507
-
1,089,671
-
1,751,527
-
General
Designated
£
£
103,410
-
584,758
-
45,359
-
14,672
-
638,907
-
1,387,106
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
4,379
-
-
-
18,320
22,699
Restricted
Funds
£
18,017
-
-
-
7,314
25,331		 2021
Total
Funds
£
212,723
396,231
54,774
2,507
1,107,991
1,774,226
2020
Total
Funds
£
121,427
584,758
45,359
14,672
646,221
1,412,437

Page 24

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FERRING COUNTRY CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

8. Support costs

8. Support costs
Staffing costs
Premises costs
Governance and administrative costs
Depreciation
Client costs
Legal and professional fees
Staffing costs
Premises costs
Governance and administrative costs
Depreciation
Client costs
Legal and professional fees		 General
Designated
£
£
692,066
-
189,219
-
71,646
-
118,304
-
10,797
-
7,639
-
1,089,671
-
General
Designated
£
£
325,814
-
166,225
-
46,257
-
85,674
-
6,973
-
7,964
-
638,907
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
14,388
3,200
-
732
-
18,320
Restricted
Funds
£
-
4,655
2,659
-
-
-
7,314		 2021
Total
Funds
£
692,066
203,607
74,846
118,304
11,529
7,639
1,107,991
2020
Total
Funds
£
325,814
170,880
48,916
85,674
6,973
7,964
646,221

9. Auditors' remuneration

9. Auditors' remuneration
Audit
Payroll services
Audit
Payroll services		 General
Designated
£
£
5,250
-
1,800
-
7,050
-
General
Designated
£
£
5,250
-
1,800
-
7,050
-
Unrestricted Funds
Unrestricted Funds		 Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
-		 2021
Total
Funds
£
5,250
1,800
7,050
2020
Total
Funds
£
5,250
1,800
7,050

Page 25

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

10. Wages and salary cost

Gross wages
Employer's national insurance costs (net of employment allowance)
Pension costs
Termination payments - Full and final settlement
Staff numbers:
Average head count
Analysed by function:
Livery, RTU and riding school
Horticulture
Café, shop, farm and visitor centre
Day service and client development
Facilities
Management and administration
Calculated on a full-time equivalent basis, analysed by function:
Livery, RTU and riding school
Horticulture
Café, shop, farm and visitor centre
Day service and client development
Facilities
Management and administration
During the year under review
staff have been allocated to
the area of their work, with
more emphasis to Day Service
operations.		 2021
Total
Funds
£
982,439
61,256
16,961
8,500
1,069,156
2021
68
6
2
25
27
4
4
68
4
2
13
20
3
4
46		 2020
Total
Funds
£
828,026
53,801
16,211
-
898,038
2020
55
10
5
26
1
5
8
55
7
4
16
1
4
6
38

There were no employees with emoluments (excluding employer pension costs) above £60,000 in this or the preceding year

The number of staff to whom retirement benefits are accruing under defined contribution schemes

Livery, RTU and riding school
Horticulture
Café, shop, farm and visitor centre
Day service and client development
Facilities
Management and administration		 2021
3
1
37
1
3
4
49		 2020
8
5
17
1
3
6
40

Defined contribution pension scheme

The charity operates a defined contribution pension scheme for its employees. Employer contributions to the scheme during the year under review amounted to £16,961 (2020: £16,211) with £2,782 (2020: £5,851) payable at the balance sheet date in respect of employer and employee contributions. Pension costs are allocated to charitable activities and support costs on the basis of the activities the employee is involved in.

No trustee received any remuneration from employment or other benefits with the charity during the year under review nor the comparative year.

During the year under review 5 (2020: 5) members of the charity's staff, identified as key management personnel, received employee benefits totalling £195,367 (2020: £185,873) consisting of salary and employer's pension contributions. The charity reimbursed expenses and met costs on behalf of key management personnel incurred during the fulfilment of their responsibilities in the year totalling £2,016 (2020: £668).

Page 26

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

11. Related party transactions

Donations totalling £50 (2020: £nil) were received from the charity's trustees in the form of donations without conditions attached. Donations totalling £2,365 (2020: £10) were received from the trustees with conditions attached in the year.

During the year under review four (2020: three) children of key management personnel were employed on a part time basis and received employee benefits totalling £36,500 (2020: £2,710) between them.

There were no other transactions with related parties that require disclosure in the financial statements.

12. Fixed assets

Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
Accumulated at 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value at 31 December 2021
Net book value at 31 December 2020		 Land &
Buildings
£
3,257,616
16,751
-
3,274,367
940,290
100,300
-
1,040,590
2,233,777
2,317,326		 Plant &
Fixtures, Fittings
Motor
Machinery
& Equipment
Vehicles
£
£
£
252,259
144,564
55,085
5,811
68,511
-
(5,700)
-
(7,300)
252,370
213,075
47,785
182,103
60,684
33,492
27,087
40,693
4,997
(5,431)
-
(4,493)
203,759
101,377
33,996
48,611
111,698
13,789
70,156
83,880
21,593		 TOTAL
£
3,709,524
91,073
(13,000)
3,787,597
1,216,569
173,077
(9,924)
1,379,722
2,407,875
2,492,955

13. Debtors

Within one year
Trade debtors
Prepayments
Other debtors		 General
Designated
£
£
12,092
-
46,063
-
2,668
-
60,823
-
Unrestricted Funds		 Restricted
Funds
£
-
-
-
-		 2021
Total
Funds
£
12,092
46,063
2,668
60,823		 2020
Total
Funds
£
2,473
17,469
-
19,942

Page 27

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

14. Creditors

Trade creditors
Other taxes and social security costs
VAT Payable
Other creditors
Accruals and deferred income		 General
Designated
£
£
26,312
-
16,575
-
50,034
-
-
-
55,643
-
148,564
-
Unrestricted Funds		 Restricted
Funds
£
-
-
-
-
-
-		 2021
Total
Funds
£
26,312
16,575
50,034
-
55,643
148,564		 2020
Total
Funds
£
36,604
19,468
23,207
22,382
21,934
123,595

15. Capital commitments

The charity had no capital commitments at the balance sheet nor the comparative year end.

16. Commitments under operating leases

16. Commitments under operating leases
In less than one year
Later than one year and not later than five years
At 31 December the charity had total minimum lease payments under operating leases in respect of
vehicles which expire as follows:		 2021
Total
Funds
£
7,339
3,059
10,398		 2020
Total
Funds
£
7,339
10,398
17,737

Total lease payments in relation to vehicles recognised as an expense in the year were £7,339.

In less than one year
later than one year and not later than five years
At 31 December the charity had total minimum lease payments under operating leases in respect of office
equipment which expire as follows:		 2020
Total
Funds
£
509
-
509		 2019
Total
Funds
£
509
509
1,018

Total lease payments in relation to office equipment recognised as an expense in the year were £509.

17. Analysis of net assets between funds

Tangible assets
Current assets
Current liabilities		 General
Fixed Asset
Designated
£
£
£
-
2,407,875
-
1,067,725
-
100,000
(148,564)
-
-
919,161
2,407,875
100,000
Unrestricted Funds		 Restricted
Funds
£
-
40,275
-
40,275		 2021
Total
Funds
£
2,407,875
1,208,000
(148,564)
3,467,311		 2020
Total
Funds
£
2,492,955
1,075,727
(123,595)
3,445,087

Page 28

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

18. Analysis of net movement in funds
Total funds
Total
Total
Transfers
brought
incoming
resources
between
forward
resources
expended
funds
£
£
£
£
Restricted funds
Café
8,644
-
(8,000)
-
Catering
585
-
-
-
Client
3,353
-
(732)
-
Farm
266
4,628
(303)
-
Horti
6
7,000
(909)
(1,097)
RTU
9,287
6,509
(4,379)
-
Woodwork Shop
6,612
-
(5,077)
-
Other restricted funds
7,969
9,212
(3,299)
-
36,722
27,349
(22,699)
(1,097)
Unrestricted funds
Fixed Asset reserve
2,492,955
-
-
(85,080)
2,492,955
-
-
(85,080)
Designated funds - The charity's trustees have designated funds for the following purposes:
New café and toilets
-
-
-
-
Woodwork Shop
-
-
-
-
Central area redevelopment
-
-
-
-
Site electrics
-
-
-
-
COVID-19 client response
100,000
-
-
-
Total designated funds
100,000
-
-
-
General reserves
815,410
1,769,500
(1,751,926)
86,177
Total unrestricted funds
3,408,365
1,769,500
(1,751,926)
1,097
Total funds
3,445,087
1,796,849
(1,774,625)
-
Total funds
Total
Total
Transfers
brought
incoming
resources
between
forward
resources
expended
funds
£
£
£
£
Restricted funds
Café
12,911
-
(3,009)
(1,258)
Catering
585
-
-
-
Client
4,499
-
(1,146)
-
Farm
646
-
(380)
-
Horti
278
-
(272)
-
RTU
22,591
227
(13,531)
-
Woodwork Shop
6,818
20,124
(330)
(20,000)
Other restricted funds
5,741
8,891
(6,663)
-
54,069
29,242
(25,331)
(21,258)
Unrestricted funds
Fixed Asset reserve
1,987,395
-
-
505,560
1,987,395
-
-
505,560
Designated funds - The charity's trustees have designated funds for the following purposes:
New café and toilets
224,000
-
-
(224,000)
Woodwork Shop
25,000
-
-
(25,000)
Central area redevelopment
59,000
-
-
(59,000)
Site electrics
200,000
-
-
(200,000)
COVID-19 client response
-
-
-
100,000
Total designated funds
508,000
-
-
(408,000)
General reserves
881,651
1,397,680
(1,387,619)
(76,302)
Total unrestricted funds
3,377,046
1,397,680
(1,387,619)
21,258
Total funds
3,431,115
1,426,922
(1,412,950)
-
Year ended 31 December 2020
Year ended 31 December 2021		 Year ended 31 December 2021 Year ended 31 December 2021 Year ended 31 December 2021
Total funds
carried
forward
£
644
585
2,621
4,591
5,000
11,417
1,535
13,882
40,275
2,407,875
2,407,875
-
-
-
-
100,000
100,000
919,161
3,427,036
3,467,311
Total
resources
expended
£
(3,009)
-
(1,146)
(380)
(272)
(13,531)
(330)
(6,663)
(25,331)
-
-
-
-
-
-
-
-
(1,387,619)
(1,387,619)
(1,412,950)		 Transfers
between
funds
£
(1,258)
-
-
-
-
-
(20,000)
-
(21,258)
505,560
505,560
(224,000)
(25,000)
(59,000)
(200,000)
100,000
(408,000)
(76,302)
21,258
-		 Total funds
carried
forward
£
8,644
585
3,353
266
6
9,287
6,612
7,969
36,722
2,492,955
2,492,955
-
-
-
-
100,000
100,000
815,410
3,408,365
3,445,087

Page 29

FERRING COUNTRY CENTRE LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

Description of funds
Café Funds received to support the charity’s Café which is open to the General Public as well as providing
training and skills for our Day service customers.
Catering Funds received to support the charity's Catering department provide the equipment that enables our
Day Service Customers to learn and develop catering skills.
Client Funds received to support the charity's Day Service Customers and enables them to learn and
develop skills that they can use in everyday life.
Farm Funds received to support the charity's Dales Farm; allowing us to enhance the facilities to provide
training and opportunities to our Day Service Customers.
Horti Funds received to support the charity's Horticultural department by providing the tooling and other
provisions to enable our Day Service Customers to learn and develop skills.
RTU Funds received to support the charity's Riding Therapy Unit to allow us to support our Day Service
Customers and the Riders who attend the Centre to ride the horses as a beneficial therapy.
Woodwork Shop Funds received to support the charity's Woodwork shop allowing us to build, purchase tools and
supplies to enable our Day Service Customers in learning woodwork skills.
Other restricted funds Other funds received to support the charity in other restricted projects.
Fixed asset reserve Representing the balance of fixed assets held by the charity.
New café and toilets Funds have been designated by the trustees from reserves for the completion of a purpose-built Café
and Visitor Information Centre with shop; completed in 2020.
Woodwork shop Funds have been designated by the trustees from reserves for the completion of a purpose-built
Woodwork/Craft shop; completed in 2020.
Central area redevelopment Funds have been designated by the trustees from reserves to redevelop the Central area to include
the Garden Centre to improve access and security.
Site electrics Funds have been designated by the trustees from reserves to upgrade the sites Electrics including a
new Sub Station; starting in 2019 and completed in 2020.
COVID-19 client response Funds have been designated by the trustees from reserves to improve and develop contact and
resources for the Centre's clients who have lost access during the COVID-19 pandemic.

Page 30

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

19. Transfers between funds

19. Transfers between funds
From
To
Transfer 1
Horti
Fixed Asset reserve
General reserves
Fixed Asset reserve
Transfer from restricted funds and designated funds on acquisition of fixed		 General
Fixed Asset
Designated
£
£
£
-
1,097
-
86,177
(86,177)
-
86,177
(85,080)
-
86,177
(85,080)
-
assets and completion of projects.
Unrestricted Funds		 Restricted
Funds
£
(1,097)
-
(1,097)
(1,097)

20. Financial instruments

The carrying amounts of the charity's financial instruments are as follows:

Financial assets
Debt instruments measured at amortised cost:
Trade debtors
Financial liabilities
Measured at amortised cost:
Trade creditors
Other creditors		 2021
Total
Funds
£
12,092
12,092
26,312
-
26,312		 2020
Total
Funds
£
2,473
2,473
36,604
22,382
58,986

Page 31

FERRING COUNTRY CENTRE LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

21. Comparative statement of financial activities

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Other trading activities
2
Investments
3
Charitable activities
4
Other
5
Total
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
Total
Net Income/(expenditure)
Transfers between funds
18, 19
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 General
Designated
£
£
161,275
-
5,839
-
6,965
-
1,093,582
-
130,019
-
1,397,680
-
513
-
1,387,106
-
1,387,619
-
10,061
-
(76,302)
97,560
(66,241)
97,560
881,651
2,495,395
815,410
2,592,955
Unrestricted Funds		 Restricted
Funds
£
29,182
60
-
-
-
29,242
-
25,331
25,331
3,911
(21,258)
(17,347)
54,069
36,722		 2020
Total
Funds
£
190,457
5,899
6,965
1,093,582
130,019
1,426,922
513
1,412,437
1,412,950
13,972
-
13,972
3,431,115
3,445,087

Page 32

Ferring Country Centre Limited REPORT TO THE TRUSTEES Audit for the year ended 31 December 2021

Ferring Country Centre Limited Report to the trustees

Contents

Introduction and
terms of reference		 We set out the objectives of our audit, its scope and summarise our findings
Audit status and
timetable to We set out any matters required prior to completion of the audit and the timescale for these
completion
Independence We confirm our independence
Key accounting and
audit matters		 We discuss audit findings
Adjusted and
unadjusted
differences		 We set out any adjustments made during the course of our audit and any differences which remain unadjusted
Current technical
Developments		 We set out the current accounting, regulatory and corporate governance developments that are relevant to the charity.

Ferring Country Centre Limited Report to the trustees

Introduction and terms of reference

Introduction

Audit scope

The scope of our work, as agreed in our Engagement Letter, was to carry out an audit in accordance with International Standards on Auditing (UK and Ireland) of the charity’s financial statements prepared under United Kingdom Generally Accepted Accounting Practice (UK GAAP), Companies Act and the requirements of the Charities SORP.

In addition it was to form an opinion on whether:

We are also required to consider whether:

Ferring Country Centre Limited Report to the trustees

Introduction and terms of reference

Key accounting and
audit matters		 •
•		 Café operations andpotential tax liability
Materiality and
unadjusted
differences		 •
•		 Materiality is considered to be £33,500 for the financial statements as a whole;
However, we are required to bring to your attention any audit adjustments that we have identified but which management
are notproposingto adjust above the clearlytrivial figure of £1,700.

Systems and controls

Fraud and error

Ferring Country Centre Limited Report to the trustees

Audit status and timetable to completion

Audit status

Timetable to completion

Ferring Country Centre Limited Report to the trustees

Independence

Under Auditing and Ethical Standards, we are required as auditors to confirm our independence to “those charged with governance”. In our opinion, and to be confirmed by you, we consider that for these purposes it is appropriate to designate the trustees as those charged with governance.

Our internal procedures are designed to ensure that all partners and professional staff are aware of relationships that may be considered to bear on our objectivity and independence as auditors. The principal statements of policies are set out in our firm-wide guidance. In addition, we have embedded the requirements of the standards in our methodologies, tools and internal training programmes.

The procedures require that audit engagement partners are made aware of any matters which may reasonably be thought to bear on the firm’s independence and the objectivity of the audit engagement partner and the audit staff. This document considers such matters in the context of our audit for the year ended 31 December 2021.

In addition to our audit work we have provided statutory accounts preparation services to the charity. This presents a potential threat to our independence as auditors as, in part, our audit work will be assessing the output of our accounts preparation services. During the year under review the provision of payroll services transferred to Blue Spire Limited. Similarly, to statutory accounts preparation this presents a potential independence threat. The payroll service is provided by individuals outside of the audit team and all judgements and decisions are taken by management.

Audit regulations recognise that, with smaller organisations such as your charity, a combination of services is often in the client’s best interests and so long as safeguards are in place no significant threat to audit independence arises. One of these safeguards is the existence of informed management who have been identified by the trustees as Hannah Tombs, Nicki King in addition to Linda Clark. We have discussed those safeguards with management and the chair of trustees and they have agreed that they are sufficient to mitigate any material threat to audit independence arising from the preparation, by us, of the statutory accounts for the charity.

We confirm that the firm complies with the APB Ethical Standards and, in our professional judgment, is independent and objective within the meaning of those standards

Ferring Country Centre Limited Report to the trustees

Key accounting and audit matters

Key audit areas

Description

Auditor response, any recommendations and our conclusion

Café operations and During the course of our audit we noted the increased income of potential tax liability the café which in the year to 31 December 2021 which could be liable to corporation tax.

There are exemptions from direct tax for charities where trading activity and income is:

It is our assessment the café operation would be considered a ‘mixed trade’ as the work is not mainly carried out by the charity’s beneficiary class and sales would be made to the general public whom are not in attendance for the other activities noted in the ancillary section of the subsequent page and adjoining column.

Where income is considered to be a mixed trade the tax position must be calculated as if there were two entirely separate trades. In using the assessment of ancillary and non-ancillary sales it would be a fair expectation the majority of sales are to those people attending the site to make use of the Farm, Garden Centre and Riding School with the total of sales to those who are not well below the small trades exemption.

In respect of Ferring Country Centre Limited we shall discuss below Furthermore, in respect to the small trading limits there is a the considerations over each of the exemptions above. reasonable expectation argument available where it can be argued that at the start of the year there was a reasonable expectation the Primary purpose charity would not exceed these limits. To qualify for this exemption the activity needs to be part of what It would be fair to have an expectation at the start of the financial year the charity exists for or be carried out ‘mainly’ by beneficiaries. 2021 activities could continue to be limited by government The use of ‘mainly’ refers to at least 50% of the staffing being made interventions with further lockdowns in response to COVID-19. up by beneficiaries. We understand the staffing structure would not meet the ‘mainly’ Looking ahead we understand the trustees and the charity’s requirement and even if it were it could be argued the operation of management have a valid expectation and desire income from the a café does not sit within the objects generally. café will increase again in the year to 31 December 2022.

[Please find more information over the page]

[Please find our recommendation and conclusion over the page]

Ferring Country Centre Limited Report to the trustees

Key accounting and audit matters

Our recommendation and conclusion:

Ancillary Our recommendation and conclusion: Ancillary trading is intrinsically linked to the charity carrying out We recommend the charity establishes a trading subsidiary to house primary purposes. For Ferring Country Centre Limited it could be the café operation, with the intention of any profits derived from it argued the sale of food and drink to people visiting the site for the being paid away to the charity to extinguish a tax charge within the Farm, Garden Centre and Riding School being activities within the Corporation Tax and Companies Act. objects would be classed as ancillary.

However the sale of food any drink to the general public would not A trading subsidiary’s carrying on the activities of a café will be 100% be included. within the realm of corporation tax on its profits with the exemptions detailed across not being applicable.

Small trading

The small trading exemptions are set based upon a charity’s total income as set out in the table below:

Total charity income Permitted trading income

Under £32,000
£8,000
£32,001 to £320,000 25% of total income
Over£320,000 £80,000

Whilst even with the increased income it is likely the sales to the general public would remain below the small trades threshold we recommend the entirety of the operation is routed through a trading subsidiary as it would avoid any ambiguity over whether the activity meets the exemptions and potential challenge from HMRC.

In the year to 31 December 2021 the café income was £228,000 Additionally a trading subsidiary would protect the charitable funds and therefore over the £80,000 limit detailed above and should it should there be any issues with the café operation itself. be concluded the activity does not fall within one of the exemptions above tax would be payable on the profits derived from it. When We can provide a separate paper on how this would work logistically reviewing total income and departmentalised expenditure for this and operationally. area we note a breakeven position before the allocation of depreciation.

VAT fundraising activities

This exemption was include for completeness, however is not relevant in relation to the café operation.

Ferring Country Centre Limited Report to the trustees

Adjusted differences

Statement of financial activities Balance sheet Balance sheet
Expense Income Asset Liability
£ £ £ £
None

Please note we have not included adjustments provided by management or those which were agreed and made as part of the accounts preparation

Ferring Country Centre Limited Report to the trustees

Unadjusted differences – in excess of the clearly trivial figure

Statement of financial activities Balance sheet Balance sheet
Expense Income Asset Liability
£ £ £ £
1. None

Ferring Country Centre Limited Report to the trustees

Current developments

Title Summary Impact on
the charity
Updated guidance
from the Charity
Commission		 Coronavirus (COVID-19) guidance for the charity sector
Last updated 25 March 2022 The Charity Commission has continued to update its guidance due
to the ever evolving pandemic.
Charity purposes and rules
Last updated 23 March 2022 The Charity Commission has provides guidance on the rules you
must follow to govern your charity.
Safeguarding for charities and trustees
Last updated 11 November 2021 The Charity Commission has provides guidance on your
responsibilities to keep everyone who comes into contact with your charity safe from harm.		 No specific impact, however useful
information.
Charities Act 2022 The Charities Act 2022 gained Royal Assent in February 2022 with an implementation plan issued
in April 2022.
This is an amending Act and builds upon the Charities Act 2011 and covers the following main
areas of change including:
•
Amending charitable purposes;greater alignment between the regimes for companies,
CIOs and trusts
•
Amending constitutions of CIOs and unincorporated charities;generally simplified with
uncertainties removed and valid from when resolutions passed
•
Disposing of charity land;more flexibility to charities in the regime and requirements
•
Ex gratia payments;giving statutory power to make payments of up to £20,000 on a
sliding scale
•
Permanent endowment;includes new powers to borrow from permanent endowments
and to make social investments		 Points of note generally with limited
impact on Ferring Country Centre
Limited and its ongoing activities.