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2020-12-31-accounts

Charity Registration No. 516925

Company Registration No. 01934024 (England and Wales)

ACORN VENTURE ASSOCIATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

ACORN VENTURE ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A D Burke
P L Burrows
K Evans
M V Johnson
R T Muspratt
R V Rishworth
C J Roderick
A P Ware
Secretary T J Trumble
Charity number 516925
Company number 01934024
Registered office Acorn Venture Farm
Depot Road
Kirkby
Knowsley
Merseyside
L33 3AR
Independent examiner Peter Atkinson
Jackson Stephen LLP
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Bankers National Westminster Bank Plc
Aintree Black Bull
Corner of Longmoor Lane and Cedar Road
Aintree
Liverpool
L9 0EG
Investment managers Blankstone Sington
Walker House
Exchange Flags
Liverpool
L2 3YL

ACORN VENTURE ASSOCIATION

CONTENTS

Page
Trustees report 1 - 7
Statement of trustees responsibilities 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11
Notes to the financial statements 12 - 24

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "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 (FRS 102) (effective 1 January 2019)".

Objectives and activities

Our Aim

To provide a high quality, affordable and inclusive resource for the local community.

We believe that everyone has a valued social role to play within their community and therefore we provide opportunities for individuals with disabilities and young people to fully participate in the day to day running of the farm.

Public Benefit

We review our aims, objectives and activities each year. We have referred to the guidance contained in the Charity Commission’s Charities and Public Benefit document. All our charitable activities focus on the provision of skills development and recreational opportunities for persons designated as having special needs and the promotion of other charitable purposes for the benefit of the community.

This annual report sums up what we have achieved and the outcomes of our work in the previous twelve months. It looks at the success of each key activity and the benefits which they have brought to those groups of people which we are set up to help.

The Covid-19 Pandemic had a serious impact on Acorn Farm. We were required to close both the Visitor Attraction and Day Service when the first national Lockdown was declared on 23 March 2020. We were subsequently able to begin opening the Day Service from August. However, we were unable to open as a Visitor Attraction for the remainder of 2020. The small size and existing layout of the farm site, together with limited facilities in the farm building, meant that our visitors would be unable to follow social distancing guidelines and therefore we would not have been Covid compliant.

Achievements and performance

a) Daytime Support Programme

One of the major ways we fulfil our aims is in the running of our very successful daytime activities programme for people with special needs. We currently provide 100 placements per week to 39 different individuals. This results in us having a maximum of 20 individuals who we support attending the farm each day and ensures that each individual gains maximum benefit from the time that they spend here.

Most individuals now purchase the service through their personal budget. This is either done on their behalf by the local authority via the Internal Service Fund or by the individual themselves via a Direct Payment. However, we still have service level agreements for the provision of community support services with several local authorities. However, we had to temporarily close the Support Programme in March when the first Lockdown was imposed. The people who we support really missed the farm and the opportunities which it offers to them to socialise with their peer group and learn new skills. Many individuals kept in regular contact throughout Lockdown, constantly asking when they would be able to return and also I suspect checking up that we were looking after the animals properly!

At the beginning of July, the first of the Local Authorities with whom we work granted permission for the service users whom they fund to return to Acorn Farm and by the end of August all Local Authorities had given permission. However, a number of vulnerable individuals who had been shielding during Lockdown still have not returned, although they hope to do so as soon as the vaccine roll out makes them less vulnerable .

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Our daytime activities programme includes:

Horticulture

Horticultural activities range from the production and selling of bedding plants and hanging baskets to maintaining the sensory garden, lawns and flower beds.

Conservation activities include maintaining the woodland walk, which is widely used by visitors as our overflow car park is accessed through this area and maintaining the tree shelterbelt.

Farm Maintenance

Farm Maintenance tasks around the farm site include building animal shelters, making benches and picnic tables, flagging, fencing, plumbing and painting.

Animal Care

Activities include, collecting and grading the eggs and feeding and mucking out the animals. Unfortunately, since we have not been able to open to visitors since March, the people we support have not had the opportunity to help with the additional activities which we run for visitors during school holidays which include small animal petting sessions and horse rides. However, they have continued to handle the small animals [rabbits, guinea pigs and Smokey Joe and Cocobean the pet rats] to ensure that they remain tame. They have also participated in horse riding sessions where they have had the opportunity to both lead and ride Rosie and Lola, the horses.

Although we have these three specific daytime support programmes Acorn Farm is a truly inclusive project. Therefore, individuals with disabilities are involved in every aspect of running the farm on a daily basis.

Young People

Unfortunately, we had to suspend our volunteering programme for Young People at Lockdown. This is a very popular programme where, under the supervision of the Weekend Manager the young people help to run the farm, carrying out all the tasks from caring for the animals to helping with horse rides and in the small animal petting area.

Under normal circumstances we usually have an average of eight young people who help each day and a waiting list of those who would like to volunteer. Taking on these responsibilities enables young people to develop their self-esteem and sense of pride in their community and consequently encourages them to become responsible citizens.

We will reinstate this programme as soon as it is safe to do so.

b) Plant Sales

This year despite Lockdown we had another very busy plant sales season. The high quality of the plants together with the competitive pricing and high standards of customer service has led to many customers returning year after year. This year, despite the pandemic we did not want to let them down.

Mike Taylor the Horticultural Unit Manager and Tracy Trumble the Farm’s Deputy Manager created, from scratch, a very efficient Ordering and Click and Collect system. They also organised a delivery service for vulnerable people who were shielding during Lockdown as we recognised the importance of gardening for people’s wellbeing during this difficult and lonely time. Mike and Tracy worked 7 days a week on this at the peak of the bedding plant season and as a result we had many very happy customers. We are very grateful to them for their dedication and hard work.

c) Livestock

The farm’s livestock have missed our visitors.

Before Lockdown 17 lambs were born to our ewes, including one set of triplets and seven sets of twins.

Gertie the pygmy goat gave birth to Toby in June .

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Kathy the Saddleback sow gave birth to two litters during the year totalling 19 piglets. They were a multitude of colours including ginger, black and white in a range of designs including plain, spots and stripes!

Our four miniature Southdown sheep named Rose, Dorothy, Blanche and Sophia are also missing going out

to schools as part of our Animobile project.

Sadly, William our elderly horse passed away in May. However, we were delighted to welcome Lola to keep Rosie company. We hope that she will enjoy giving rides to visitors as much as Rosie does.

We also welcomed 2 new meerkats Villanelle and Eve.

The animal sponsorship scheme continues to be popular and has been particularly helpful during Lockdown in helping us to offset the cost of keeping the animals. Sponsors are rewarded with a certificate, a visitor's pass to the farm, a photograph of their animal, birthday and Christmas cards and a mention on the Roll of Honour on our website. We have extended the scheme to enable sponsors to add the cost of a bale of hay or straw or a bag of animal feed onto their sponsorships.

d) Visitor Facilities and Attractions

Horse Rides

This activity is usually very popular with visitors. When we are open to visitors we do horse rides every weekend afternoon throughout the year as well as every afternoon during school holidays. Bookings may also be made by groups during term time.

Small Animal Petting Sessions

This is another popular attraction with many repeat visitors when we are open. Activities include stroking a rabbit, grooming a guinea pig, holding a newly hatched chick and playing with Daisy and Lottie the pygmy goats, and Smokey Joe and Cocobean the pet rats. It is usually open to visitors every weekend and bank holiday and every day during school holidays.

e) Educational Services

Unfortunately these had to be suspended at the start of Lockdown but normally include:

f) Events

These usually include

Both of which were unable to take place due to social distance requirements.

g) Visitors

We closed to visitors on 23 March 2020 and were unable to open again for the remainder of the year due to Covid-19.

We were very touched that so many local people fundraised for us whilst we were closed to visitors during Lockdown. The ideas were varied and all donations were very gratefully received.

h) Fundraising

The events held and sums raised were as follows:

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

We were also extremely grateful to a good friend of Acorn Farm Helen Alloua who sold over 12,000 of our eggs to friends, family and colleagues. No one had told the hens that we were in Lockdown so they just kept on laying!

i) Trading Company

Acorn Farm Trading Company has been particularly badly hit by the enforced closure of the farm due to Covid - 19. The café and shop who trade through this company have both been closed since March.

j) Risk Management

The trustees have conducted a review of the major risks to which the charity is exposed. This has led to the implementation of a number of policies including the Reserves Policy, which states that in order to safeguard the future of the farm we will hold in reserve six months of resources expended. We have been particularly glad of this policy this year as the Visitor Attraction was closed for 9 months of the year.

We also have a Business Continuity Plan.

Internal risks are minimised by the implementation of additional policies including Policy and Practice on Payments, Banking and Custody Procedure, Payroll Financial Procedure, Capital Purchases Policy and Asset Control.

Procedures are in place to ensure compliance with health and safety of staff, people we support, volunteers and visitors. These include a comprehensive set of risk assessments. The implementation of our Safeguarding Policies for both Vulnerable Adults and Children ensure that we deal with any safeguarding issues which may arise in a consistent manner. All policies are reviewed on a regular basis by the trustees.

k) Staff Team

Permanent Staff:

Team
nent Staff:
Name Job title Hours
Fiona Smith Farm Manager 35
Tracy Trumble Deputy Manager/Finance Officer 37.5
Mike Taylor Horticultural Unit Manager 37.5
Vacant Day Services Manager 30
Brian Carroll Farm Maintenance Worker 37.5
Jane McKillop Cafe Manager 37.5
Lisa Gunn Farm Animal Supervisor 37.5
Catherine Brailsford Farm Assistant/ Driver 30
Sue Rowan Gardener/Support Worker 6.5
Lynn Fitzpatrick Weekend Manager (Job Share) 6
Val Kelly Weekend Manager (Job Share) 6

Although we were able to furlough some members of staff through the government’s Job Retention Scheme, unfortunately we had to terminate the contracts of other staff members.

l) S ite Developments - Farm Site

We are continually making improvements and doing repairs to the farm site; thus ensuring that it is safe for the animals who live here and the people who both visit and work here.

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

We are members of the following organisations:

Accreditations:

Financial review

Due to Covid-19 income for the year decreased to £382k (2019: £604k). Expenditure for the year also decreased to £365k (2019: £608k), resulting in a net gain before investments of £17k (2019: £4k net loss). Unrealised investment gains of £26k (2019: £131k gain) were achieved in the year.

Reserves Policy

The Acorn Farm Board of Trustees recognises the need to hold reserves to allow for unforeseen circumstances which could result in a substantial drop in income. These could include:

1: A global pandemic.

  1. A lack of funding could cause local authorities to terminate the contracts which they have with us for the provision of day services for people with disabilities.

  2. A fire, flood or similar incident could result in business interruption whilst repairs are underway.

  3. Severe weather could result in damage to the farm buildings making the site unsafe for visitors until repairs are undertaken.

  4. Outbreak of animal disease (e.g. Foot and Mouth, e.coli) which could result in the compulsory closure of the farm for a period of time.

  5. Outbreak of food poisoning which could result in the closure of the café and/or dairy whilst investigations by the Environmental Health Office are undertaken.

Additionally, the reserves would allow for unforeseen capital works or purchases which may be required to ensure the safety of the farm site (e.g. replacement of unsafe animal housing or to replace faulty tools and equipment).

To cover such eventualities, the trustees believe that Acorn Venture Association needs to hold in reserves 6 months of resources expended.

The actual level of free reserves held is stated in our annual accounts.

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Future plans

Our plans for 202 1 include:

Conclusion

2020 has been the most challenging year in our 35 year history. However, we have come through it united and strong. We are still full of plans, hopes and dreams for Acorn Farm’s future.

2021 promises to be an exciting year with work starting on the planned reconfiguration of the farm site.

We are confident that once we are able to reopen, we will continue to provide a highly valued and affordable resource for both the local community and visitors from further afield.

Structure, governance and management

The Association is a charitable company limited by guarantee, incorporated on 26 July 1985 and registered with the Charity Commission on 4 March 1986.

The Association was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The charity is a company limited by guarantee and has no share capital.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

A D Burke

P L Burrows K Evans

M V Johnson R T Muspratt R V Rishworth C J Roderick A P Ware

We are always keen to welcome new trustees on to the board which meets quarterly . Our aim is to recruit trustees who are able to complement the skills and experience of our existing board.

In line with our Memorandum and Articles of Association the trustees may appoint any interested party as a member of the board either to fill a casual vacancy or by way of an addition to the board. Any member so appointed shall retain their office only until the next AGM, but they shall then be eligible for re-election.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

All trustees have completed a Declaration of Confidentiality and a Declaration of Commitment and Eligibility to be a trustee having regard to Section 72 of the Charities Act.

We have in place a number of policies relevant to the trustees which help to ensure that governance of the charity is performed to the highest standard. These include a Trustee Recruitment Policy, a Conflict of Interest/ Loyalty Policy, a Register of Interests and a Trustee's Code of Practice.

ACORN VENTURE ASSOCIATION

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Small companies provisions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The trustees r eport was approved by the Board of Trustees.

C J Roderick

Trustee Dated: 14 September 2021

ACORN VENTURE ASSOCIATION

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors of Acorn Venture Association for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ACORN VENTURE ASSOCIATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ACORN VENTURE ASSOCIATION

I report to the trustees on my examination of the financial statements of Acorn Venture Association (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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

Peter Atkinson F.C.A

Jackson Stephen LLP James House Stonecross Business Park Yew Tree Way Warrington Cheshire WA3 3JD

Dated: 17 September 2021

ACORN VENTURE ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
Notes
£
£
£
Income from:
Donations and legacies
3
10,492
-
-
Charitable activities
4
250,174
-
-
Other trading activities
5
30,322
-
-
Investments
6
40,974
-
-
Other income
7
50,103
-
-
Total income
382,065
-
-
Expenditure on:
Cost of generating funds
8
12,059
-
-
Charitable activities
9
351,630
-
1,002
Total expenditure
363,689
-
1,002
Net incoming resources before
gains/(losses) on investments
18,376
-
(1,002)
Net gains/(losses) on
investments
13
26,375
-
-
Net incoming/(outgoing)
resources before transfers
44,751
-
(1,002)
Gross transfers between funds
(19,271)
25,000
(5,729)
Net movement in funds
25,480
25,000
(6,731)
Fund balances at 1 January
2020
278,867
1,525,000
9,909
Fund balances at 31 December
2020
304,347
1,550,000
3,178		 Total
2020
£
10,492
250,174
30,322
40,974
50,103
382,065
12,059
352,632
364,691
17,374
26,375
43,749
-
43,749
1,813,776
1,857,525		 Total
2019
£
44,937
295,645
219,709
43,442
-
603,733
13,181
594,717
607,898
(4,165)
131,153
126,988
-
126,988
1,686,788
1,813,776

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ACORN VENTURE ASSOCIATION

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Funds of the charity
Restricted funds
18
Unrestricted funds - designated
19
General unrestricted funds		 2020
£
£
72,145
1,607,283
1,679,428
13,127
185,012
198,139
(20,042)
178,097
1,857,525
3,178
1,550,000
304,347
1,857,525		 2019
£
£
69,627
1,551,256
1,620,883
27,949
186,036
213,985
(21,092)
192,893
1,813,776
9,909
1,525,000
278,867
1,813,776

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 14 September 2021

C J Roderick

Trustee

Company Registration No. 01934024

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Acorn Venture Association is a private company limited by guarantee incorporated in England and Wales. The registered office is Acorn Venture Farm, Depot Road, Kirkby, Knowsley, Merseyside, L33 3AR.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to reflect certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated unrestricted funds relate to funds that the trustees have designated for a particular project within the the objectives of the charity.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grant income in the year of £ 45,303 is in relation to the Coronavirus Job Retention Scheme, all conditions attached to the grant have been met.

Other trading income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure, including irrecoverable VAT is recognised on the accrual basis.

In particular, the policy for including items within costs of generating funds is as follows:

Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on bases designed to reflect the uses of particular resources. Costs relating to a particular activity are allocated directly, while others are apportioned on an appropriate basis.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Long leasehold land and buildings Over the term of the lease
Renovations 20% per annum straight line basis
Outbuildings and paddocks 10% per annum straight line basis
Fixtures, fittings and equipment 25% per annum straight line basis
Motor vehicles 25% per annum straight line basis
Play equipment 10% per annum straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The key accounting estimates made by the trustees in preparing these financial statements is in respect of depreciation as detailed in the accounting policies.

3 Donations and legacies

Donations, legacies and gifts
Donations and gifts
Gift aid
Legacies
Donations
All income for both years relates to unrestricted funds.
Charitable activities
Daytime activities programme
Product sales
Educational income
Other income
Analysis by fund
Unrestricted funds - general
For the year ended 31 December 2019
Unrestricted funds - general		 2020
£
10,492
54
1,000
9,438
10,492
2020
£
211,485
34,783
3,075
831
250,174
250,174		 2019
£
44,937
9,601
23,997
11,339
44,937
2019
£
210,802
64,068
18,689
2,086
295,645
295,645

4 Charitable activities

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Other trading activities

Fundraising activities
Sponsorship
Admission charges
Guided tours
Horse riding charges
Petting pavilion charges
Room hire
Other trading activities
All income for both years relate to unrestricted general funds.
6
Investments
Income from listed investments
Interest receivable
All costs for both years relate to unrestricted general funds.
7
Other income
Net gain on disposal of tangible fixed assets
Furlough grants received
All income for both years relate to unrestricted general funds.		 2020
£
619
679
21,733
1,070
2,104
3,410
707
30,322
2020
£
40,795
179
40,974
2020
£
4,800
45,303
50,103		 2019
£
5,567
1,015
156,914
8,819
17,430
27,547
2,417
219,709
2019
£
43,254
188
43,442
2019
£
-
-
-

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Cost of generating funds

Fundraising and publicity
Other fundraising costs
Investment management administration costs
All costs for both years relate to unrestricted general funds.
Charitable activities
Staff costs
Depreciation and impairment
Costs of activities in furtherance of the charity's objectives
Indirect employee costs
Premises costs
General administrative costs
Professional fees in support of charitable activities
Exceptional VAT costs
Direct employee costs
Governance costs
Analysis by fund
Unrestricted funds - general
Restricted funds
For the year ended 31 December 2019
Unrestricted funds - general
Restricted funds		 2020
£
916
11,143
12,059
2020
£
248,883
17,114
37,790
1,374
30,473
6,512
905
-
2,698
6,883
352,632
351,630
1,002
352,632		 2019
£
1,891
11,290
13,181
2019
£
270,338
15,248
58,958
583
44,368
11,173
396
183,452
6,876
3,325
594,717
593,715
1,002
594,717

9 Charitable activities

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Independent examiner remuneration

Fees payable to the independent examiner
Independent examiner review of the annual accounts
Non-audit services
All other non-independent examiner services		 2020
£
2,065
4,818		 2019
£
2,025
3,020

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits and there were no other transactions with the trustees during the year.

12 Employees

Number of employees

The average monthly number of employees during the year was:


Charitable activities
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
18
2020
£
226,323
12,632
9,928
248,883		 2019
Number
29
2019
£
243,599
17,105
9,634
270,338

There were no employees whose annual remuneration was £60,000 or more.

13 Net gains/(losses) on investments

2020 2019
£ £
Revaluation of investments 26,375 131,153

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Tangible fixed assets

Long
leasehold land
and buildings
Assets under
construction
Outbuildings
and paddocks
Fixtures,
fittings and
equipment
Motor vehicles
£
£
£
£
£
Cost
At 1 January 2020
118,049
-
582,328
113,051
36,568
Additions
-
19,278
-
354
-
Disposals
-
-
-
-
(21,078)
At 31 December 2020
118,049
19,278
582,328
113,405
15,490
Depreciation and impairment
At 1 January 2020
90,812
-
559,057
107,808
22,692
Depreciation charged in the year
710
-
10,468
2,063
3,873
Eliminated in respect of disposals
-
-
-
-
(21,078)
At 31 December 2020
91,522
-
569,525
109,871
5,487
Carrying amount
At 31 December 2020
26,527
19,278
12,803
3,534
10,003
At 31 December 2019
27,237
-
23,271
5,243
13,876		 Total
£
849,996
19,632
(21,078)
848,550
780,369
17,114
(21,078)
776,405
72,145
69,627

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Fixed asset investments

Listed
investments
Other
investments
£
Cost or valuation
At 1 January 2020
1,551,255
1
Valuation changes
26,375
-
Income
40,795
-
Management fees
(11,143)
-
At 31 December 2020
1,607,282
1
Carrying amount
At 31 December 2020
1,607,282
1
At 31 December 2019
1,551,255
1
2020
Other investments comprise:
Notes
£
Investments in subsidiaries
22
1
16
Debtors
2020
Amounts falling due within one year:
£
Trade debtors
2,208
Other debtors
8,806
Prepayments and accrued income
2,113
13,127
17
Creditors: amounts falling due within one year
2020
£
Other taxation and social security
-
Trade creditors
6,496
Accruals and deferred income
13,546
20,042		 Total
£
1,551,256
26,375
40,795
(11,143)
1,607,283
1,607,283
1,551,256
2019
£
1
2019
£
21,964
3,905
2,080
27,949
2019
£
1,900
2,739
16,453
21,092

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Expenditure Balance at Expenditure Transfers Balance at
1 January 2019 1 January 2020 31 December
2020
£ £ £ £ £ £
Restricted funds 10,911 (1,002)
9,909		 (1,002) (5,729)
3,178

The restricted fund relates to fixed asset that were bought using restricted income with the annual depreciation charge of these assets being allocated against the brought forward balance.

19 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019
£
Farm building refurbishment fund
1,400,000
1,400,000		 Transfers
Balance at
1 January 2020
£
£
125,000
1,525,000
125,000
1,525,000		 Transfers
Balance at
31 December
2020
£
£
25,000
1,550,000
25,000
1,550,000

Designated funds have been set aside t o fund the farm building refurbishment.

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20
Analysis of net assets between funds
Unrestricted Designated
Restricted
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
68,967
-
3,178
Investments
57,283
1,550,000
-
Current assets/(liabilities)
178,097
-
-
304,347
1,550,000
3,178		 TotalUnrestricted Designated
2020
2019
2019
£
£
£
72,145
65,447
-
1,607,283
26,256
1,525,000
178,097
187,164
-
1,857,525
278,867
1,525,000		 Restricted
2019
£
4,180
-
5,729
9,909		 Total
2019
£
69,627
1,551,256
192,893
1,813,776

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Related party transactions

Remuneration of key management personnel

2020 2019
£ £
Aggregate compensation 78,831 77,522

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Gift Aid
2020 2019
£ £
Entities over which the entity has control, joint control or significant influence 54 9,601
54 9,601
T he following amounts were outstanding at the reporting end date:
2020 2019
Balance Balance
£ £
Entities over which the entity has control, joint control or significant
influence 3,951 3,897

22 Subsidiaries

These financial statements are separate charity financial statements for Acorn Venture Association. Consolidated financial statements are not prepared as the parent company and its subsidiary is considered a small group.

Details of the charity's subsidiaries at 31 December 2020 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Acorn Venture Trading Co. As per parent Cafeteria services and the Ordinary 100.00
Ltd company sale of gifts

ACORN VENTURE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Subsidiaries

(Continued)

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and Reserves £ £ Acorn Venture Trading Co. Ltd - 263

23 Control

The charity is controlled by the trustees.